Company Registration No. 02630165 (England and Wales)
David Morris International Limited
Annual report and
group financial statements
for the year ended 31 December 2024
David Morris International Limited
Company information
Directors
J L Morris
W D Pond
Secretary
W D Pond
Company number
02630165
Registered office
180 New Bond Street
London
United Kingdom
W1S 4RL
Independent auditor
Saffery LLP
71 Queen Victoria Street
London
EC4V 4BE
David Morris International Limited
Contents
Page
Strategic report
1 - 3
Directors' report
4 - 6
Independent auditor's report
7 - 9
Group income statement
10
Group statement of comprehensive income
11
Group statement of financial position
12
Company statement of financial position
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 35
David Morris International Limited
Strategic report
For the year ended 31 December 2024
1

The directors present the strategic report for the year ended 31 December 2024.

Fair review of the business

The Group achieved a strong financial performance during the year, with turnover increasing to £88m (2023: £46m). The increase was principally due to improved wholesale trading performance.

Administrative and overhead expenses increased to £26.3m in 2024 (2023: £19m) reflecting the higher level of activity during the year. Overheads represented 30% of the turnover, compare with 41% in the prior year, indicating improved operating leverage.

Loss before tax for the year amounted to £12.6m (2023: profit of £194k).

Principal risks and uncertainties

The Group's operations expose it to a variety of financial risks that include the effects of price risk, credit risk, liquidity risk and economic risk. The board has responsibility for maintaining financial risk management and meet regularly to assess the potential impact of these risks on the Group's trading activities.

Price risk

The Group is exposed to changes in the market prices of its raw materials and in particular fluctuations in diamond and other precious gem prices. Management and the Group's diamond buyers monitor the market regularly and have the necessary skill, care and professional judgment when purchasing high value diamonds to ensure (as far as reasonably possible) that they are of the quality, uniqueness and appeal to maintain their value.
Credit risk

Very few sales are conducted on credit terms; where credit is extended, it is limited to VVIP clients with long-established relationships with the company.

Liquidity risk

The Group currently does not have any financing facilities. However, if the Company and Group are unable to meet the payment terms for the share buyback agreed in the Share Purchase Agreement dated 22 August 2024, they may be unable to meet their liabilities as they become due.

Economic risk

The Group's operations are exposed to the downturn in the UK economy, and therefore to manage this exposure the Group has expanded its activities to other jurisdictions around the world.

Foreign exchange risk

The Group is exposed to foreign currency risk on its operations by virtue of entering into transactions in currencies other than the Group's functional currency of sterling. Foreign exchange risk is generally managed by matching trade income and assets with purchases and liabilities.

David Morris International Limited
Strategic report (continued)
For the year ended 31 December 2024
2
Section 172 Statement

Director’s duties

In accordance with section 172 of the Companies Act 2006, each of our directors acts in a way that he considers in good faith, would most likely further the success of the business for the benefit of its members as a whole and in doing so has regard (amongst other matters) to:

- The likely consequences of any decision in the long term

- The interests of the company’s employees

- The need to foster the company’s business relationships with suppliers, customer and others

- The impact of the company’s operations 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 members of the company

Decision making

In 2024 the board discussed new wholesale agreements, entering into a new lease on Albermarle Street and trading performance amongst other topics

Employee engagement

The company considers its employees to be key to the success of the business. The company aims to be a responsible employer with regards to pay, benefits and working conditions and sees the welfare of our staff as being of paramount importance. The company encourages its employees to take an active role in the development of the business and where possible and appropriate will canvas the ideas of its employees. The Company holds a companywide bi-weekly meeting where all staff members are in attendance and can participate in an open forum on cross functional issues and subjects.

Business relationships

The company is fully committed to fostering good relationships with all stakeholders of the business. Over many years the company has forged strong relationships with its customers and has been very successful at customer retention with many clients making repeat purchases year after year. Relationships with our suppliers and the ateliers we work with are very important to us and we take pride in building and maintaining strong relationships and working closely and cooperatively with them which helps to ensure a smooth and efficient supply chain.

Community and environment

The directors are committed to take all reasonable steps to minimise any negative impact that the company’s operations may have on the environment.

David Morris International Limited
Strategic report (continued)
For the year ended 31 December 2024
3
Business conduct
The company aims to conduct all of its business dealings and relationships with a high level of integrity, respect, ethical values and courtesy.

On behalf of the board

W D Pond
Director
20 February 2026
David Morris International Limited
Directors' report
For the year ended 31 December 2024
4

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activities of the Group during the year were the design, manufacture, wholesale and retail of high jewellery and precious stones.

Results and dividends

The results for the year are set out on page 10.

The loss for the year after taxation amounted to £9,603,247 (2023: £89,219).

Ordinary dividends were paid amounting to £18,300,000. The directors do not recommend payment of a further dividend.

Directors

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

J L Morris
W D Pond
S AlMabrouk
(Resigned 22 August 2024)
Energy and carbon report

This year, David Morris International Limited is required to comply with the Streamlined Energy and Carbon Reporting (SECR) obligations.

Within the United Kingdom, the Company operates its flagship store on Bond Street, London, and maintains a concession in Harrods, the luxury department store.

Reported energy usage relates to the retail premises, as well as the offices and atelier located above the flagship store. The Company also engages secure carriers for the transportation of goods, and directors and senior sales staff undertake business air travel for meetings, events, and client engagements. In both cases, no direct measurement of emissions has been conducted, as the associated carbon footprint is regarded as the responsibility of the respective third-party operators to report.

Our utility invoices for the year show an aggregate energy consumption of 58,500 kwh (2023: 61,100 kwh) which is the equivalent of 12 tonnes (2023: 12 tonnes) of Greenhouse gas emissions based on the conversion factors taken from the UK Governments “Greenhouse gas reporting: conversion factors 2024” (and 2023).

In 2023 the company engaged a third party to ensure compliance with the Energy Savings Opportunity Scheme. The company believes that due to the nature and scale of its operations it has limited scope to reduce its energy consumption and believes that it only uses as much energy as is absolutely necessary to run its operations effectively.

Using the UK’s revenue of £78.3m in 2024 (2023: £36.9m) the intensity ratio is 1,338 (2023: 603).

David Morris International Limited
Directors' report (continued)
For the year ended 31 December 2024
5
Statement of directors' responsibilities

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.

Strategic report

The true group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the principal risks and uncertainties.

The principal risks and uncertainties objectives and policies of the Group have been disclosed within the Strategic Report on pages 1 to 3.

Statement of disclosure to auditor

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 auditor of the company 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 auditor of the company is aware of that information.

David Morris International Limited
Directors' report (continued)
For the year ended 31 December 2024
6

Going Concern

At the time of approving the financial statements, the directors prepared forecasts that have been sensitised to take into account the impact of the global economy and have a reasonable expecta tion that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

On behalf of the board
W D Pond
Director
20 February 2026
David Morris International Limited
Independent auditor's report
To the members of David Morris International Limited
7
Opinion

We have audited the financial statements of David Morris International Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 group and of the parent company's affairs as at 31 December 2024 and of the group's loss for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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 the audit:

- the information given in the strategic report and the directors' r eport 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.

David Morris International Limited
Independent auditor's report (continued)
To the members of David Morris International Limited
8
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

- the parent company 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' r esponsibilities s tatement, 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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 are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the group and parent company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the group and parent company by discussions with directors and by updating our understanding of the sector in which the group and parent company operates.

Laws and regulations of direct significance in the context of the group and parent company include The Companies Act 2006 and UK Tax legislation.

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of group and parent company financial statement disclosures. We reviewed the parent company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the parent company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

David Morris International Limited
Independent auditor's report (continued)
To the members of David Morris International Limited
9

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

As group auditors, our assessment of matters relating to non-compliance with laws or regulations and fraud differed at group and component level according to their particular circumstances. Our communications included a request to identify instances of non-compliance with laws and regulations and fraud that could give rise to a material misstatement of the group financial statements in addition to our risk assessment.

There are inherent limitations in the audit procedures described above 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. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 parent 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 parent 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 parent company and the parent company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jamie Cassell
For and on behalf of Saffery LLP
20 February 2026
Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
David Morris International Limited
Group income statement
For the year ended 31 December 2024
10
2024
2023
Notes
£
£
Turnover
3
88,009,222
45,892,307
Cost of sales
(74,244,734)
(26,386,758)
Gross profit
13,764,488
19,505,549
Administrative expenses
(26,274,447)
(18,967,215)
Operating (loss)/profit
4
(12,509,959)
538,334
Interest receivable and similar income
8
12,915
-
0
Interest payable and similar expenses
9
(63,360)
(343,901)
(Loss)/profit before taxation
(12,560,404)
194,433
Tax on (loss)/profit
10
2,957,157
(105,214)
(Loss)/profit for the financial year
(9,603,247)
89,219
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
David Morris International Limited
Group statement of comprehensive income
For the year ended 31 December 2024
11
2024
2023
£
£
(Loss)/profit for the year
(9,603,247)
89,219
Other comprehensive income
Currency translation gain/(loss) taken to retained earnings
605,705
(34,190)
Cash flow hedges gain arising in the year
-
0
-
0
Total comprehensive income for the year
(8,997,542)
55,029
Total comprehensive income for the year is all attributable to the owners of the parent company.
David Morris International Limited
Group statement of financial position
As at 31 December 2024
31 December 2024
12
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
815,820
1,559,205
Tangible assets
13
2,251,565
1,941,558
Investments
14
2
2
3,067,387
3,500,765
Current assets
Stocks
16
82,862,544
74,623,331
Debtors
17
13,873,462
13,331,105
Cash at bank and in hand
31,995,406
12,900,524
128,731,412
100,854,960
Creditors: amounts falling due within one year
18
(95,339,455)
(40,598,839)
Net current assets
33,391,957
60,256,121
Net assets
36,459,344
63,756,886
Capital and reserves
Called up share capital
21
3,064,935
3,064,935
Share premium account
2,174,396
2,174,396
Capital redemption reserve
5,000,000
5,000,000
Profit and loss reserves
26,220,013
53,517,555
Total equity
36,459,344
63,756,886

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

The financial statements were approved by the board of directors and authorised for issue on 20 February 2026 and are signed on its behalf by:
20 February 2026
W D Pond
Director
Company registration number 02630165 (England and Wales)
David Morris International Limited
Company statement of financial position
As at 31 December 2024
31 December 2024
13
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,290,300
1,284,988
Investments
14
25,608
25,608
1,315,908
1,310,596
Current assets
Stocks
16
82,862,544
74,275,297
Debtors
17
17,571,763
17,057,975
Cash at bank and in hand
30,322,462
11,255,964
130,756,769
102,589,236
Creditors: amounts falling due within one year
18
(116,877,299)
(59,555,507)
Net current assets
13,879,470
43,033,729
Net assets
15,195,378
44,344,325
Capital and reserves
Called up share capital
21
3,064,935
3,064,935
Share premium account
2,174,396
2,174,396
Capital redemption reserve
5,000,000
5,000,000
Profit and loss reserves
4,956,047
34,104,994
Total equity
15,195,378
44,344,325

As permitted by s408 Companies Act 2006, the c ompany has not presented its own profit and loss account and related notes. The c ompany’s loss for the year was £10,848,947 (2023 - £1,018,524 loss).

The financial statements were approved by the board of directors and authorised for issue on 20 February 2026 and are signed on its behalf by:
20 February 2026
W D Pond
Director
Company registration number 02630165 (England and Wales)
David Morris International Limited
Group statement of changes in equity
For the year ended 31 December 2024
14
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2023
3,064,935
2,174,396
5,000,000
54,462,526
64,701,857
Year ended 31 December 2023:
Profit for the year
-
-
-
89,219
89,219
Other comprehensive income:
Currency translation differences
-
-
-
(34,190)
(34,190)
Total comprehensive income
-
-
-
55,029
55,029
Dividends
11
-
-
-
(1,000,000)
(1,000,000)
Balance at 31 December 2023
3,064,935
2,174,396
5,000,000
53,517,555
63,756,886
Year ended 31 December 2024:
Loss for the year
-
-
-
(9,603,247)
(9,603,247)
Other comprehensive income:
Currency translation differences
-
-
-
605,705
605,705
Total comprehensive income
-
-
-
(8,997,542)
(8,997,542)
Dividends
11
-
-
-
(18,300,000)
(18,300,000)
Balance at 31 December 2024
3,064,935
2,174,396
5,000,000
26,220,013
36,459,344
David Morris International Limited
Company statement of changes in equity
For the year ended 31 December 2024
15
Called up share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2023
3,064,935
2,174,396
5,000,000
36,123,518
46,362,849
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
-
-
(1,018,524)
(1,018,524)
Dividends
11
-
-
-
(1,000,000)
(1,000,000)
Balance at 31 December 2023
3,064,935
2,174,396
5,000,000
34,104,994
44,344,325
Year ended 31 December 2024:
Loss and total comprehensive income for the year
-
-
-
(10,848,947)
(10,848,947)
Dividends
11
-
-
-
(18,300,000)
(18,300,000)
Balance at 31 December 2024
3,064,935
2,174,396
5,000,000
4,956,047
15,195,378
David Morris International Limited
Group statement of cash flows
For the year ended 31 December 2024
16
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
41,941,621
7,101,772
Interest paid
(63,360)
(335,866)
Income taxes paid
(1,317,278)
(311,720)
Net cash inflow from operating activities
40,560,983
6,454,186
Investing activities
Purchase of tangible fixed assets
12
(938,069)
(869,895)
Interest received
12,915
-
0
Net cash used in investing activities
(925,154)
(869,895)
Financing activities
Repayment of borrowings
(2,846,652)
(3,816,793)
Dividends paid to equity shareholders
10
(18,300,000)
(1,000,000)
Net cash used in financing activities
(21,146,652)
(4,816,793)
Net increase in cash and cash equivalents
18,489,176
763,986
Cash and cash equivalents at beginning of year
12,900,524
12,167,216
Effect of foreign exchange rates
605,705
(30,679)
Cash and cash equivalents at end of year
31,995,406
12,900,524
David Morris International Limited
Notes to the group financial statements
For the year ended 31 December 2024
17
1
Accounting policies
Company information

David Morris International Limited (“the company”) is a private company limited by shares incorporated in England and Wales. The registered office is 180 New Bond Street, London, United Kingdom, W1S 4RL.

The group consists of David Morris International Limited and all of its subsidiaries.

1.1
Accounting convention

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 a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The 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 for parent company information presented within the consolidated financial statements:

- 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.

1.2
Business combinations

In the parent company financial statements, t he cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. I nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

David Morris International Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
18
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company David Morris International Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the g roup.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The directors have prepared forecasts that have been sensitised to take into account the impact of the global economy and have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised 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 takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on delivery of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

Goodwill arising on the acquisition of subsidiary undertakings represents the excess of the fair value of the consideration over the fair value of the identifiable assets and liabilities acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Intangible fixed assets other than goodwill

Intangible assets are stated at cost, and are amortised over 10 years. They are also reviewed on an annual basis for impairment. Any impairment is recognised immediately as an expense in the income statement.

David Morris International Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
19
1.8
Tangible fixed assets

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:

Leasehold property
over the period of the lease
Fixtures and fittings
10-33% straight line
Computers
10-33% straight line
Motor vehicles
25% straight line

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 recognised in the income statement.

1.9
Fixed asset investments

Equity in vest ments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

I n the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

1.10
Impairment of fixed assets

At each reporting period end date, the group 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.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

David Morris International Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
20

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.

1.11
Stocks

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.

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.

1.12
Cash and cash equivalents

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.

1.13
Financial instruments

The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

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.

Basic financial assets

Basic financial assets, which include debtors, 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

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.

David Morris International Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
21
Impairment of financial assets

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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.

Classification of 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 group after deducting all of its liabilities.

Basic financial 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 paymen ts 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.

Other financial liabilities

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 may be designated as being measured at fair value th r ough 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.

David Morris International Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
22
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group 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 group.

1.15
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.

1.16
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

1.17
Employee benefits

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.

David Morris International Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
23
1.18
Retirement benefits

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

1.19
Leases

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 lease d asset are consumed.

1.20
Foreign exchange

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.

1.21

Impairment of non-financial assets

At each reporting date non-financial assets not carried at fair value are assessed to determine whether there is an indication that the asset (or asset's cash generating unit) may be impaired. If there is such an indication the recoverable amount of the asset (or asset's cash generating unit) is compared to the carrying amount of the asset (or asset's cash generating unit).

The recoverable amount of the asset (or asset's cash generating unit) is the higher of the fair value less costs to sell and value in use. Value in use is defined as the present value of the future pre-tax and interest cash flows obtainable as a result of the asset's (or asset's cash generating unit) continued use. The pre-tax and interest cash flows are discontinued using a pre-tax discount rate that represents the current market risk-free rate and the risks inherent in the asset.

If the recoverable amount of the asset (or asset's cash generating unit) is estimated to be lower than the carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognised in the income statement, unless the asset has been revalued when the amount is recognised in other comprehensive income to the extent of any previously recognised revaluation. Thereafter any excess is recognised in the income statement.

If an impairment loss is subsequently reversed, the carrying amount of the asset (or asset's cash generating unit) is increased to the revised estimate of its recoverable amount, but only to the extent that the revised carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised in prior periods. A reversal of an impairment loss is recognised in the income statement.

Goodwill is allocated on acquisition to the cash generating unit expected to benefit from the synergies of the combination. Goodwill is included in the carrying value of cash generating units for impairment testing.

2
Critical accounting judgements and key sources of estimation uncertainty

In the application of the group’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.

David Morris International Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
2
Critical accounting judgements and key sources of estimation uncertainty (continued)
24
Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Consolidation of Royal Gems Jewellery Trading Limited

David Morris International Limited exercises 100% control of the entity Royal Gems Jewellery Trading LLC. However, due to historic UAE law David Morris International Limited was prevented from holding 100% of the shares in this entity and holds 49% of the ordinary shares and a 'local' partner holds the remaining 51% of the shares as a nominee on behalf of David Morris International Limited. Therefore Royal Gems Jewellery Trading is consolidated as a 100% subsidiary.

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on future investments, economic utilisation and the physical condition of the asset. See note 13 for the carrying amount of the tangible assets, and note 1.8 for the useful economic lives for each class of assets.

Stock provisioning

The Company designs, manufactures and sells jewellery and is subject to changing consumer demands and fashion trends. As a result, it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management must provide against it based on the age of when the stock was bought and by considering the current economic and industry conditions. See note 16 for the net carrying amount of the stock and associated provision.

Impairment of non-financial assets

The Company operates from leasehold stores and online. Each store is considered to be a cash generating unit. At each reporting date non-financial assets not carried at fair value are assessed to determine whether there is an indication that the asset’s cash generating unit may be impaired. Management considers the forecast sales and cash generation for each store and applies assumptions with respect to future growth. See note 1.21 for the accounting policy for impairment of non-financial assets.

Key money lease

The Group had recognised a key money lease as an intangible asset which is sensitive to changes in the fair value of the asset. The fair value is re-assessed annually and amended when necessary to reflect current estimates, based on market rate and economic utilisation of the asset.

Recoverability of intercompany balances

Management regularly assess balances due between group entities and whether these are recoverable. Where it is considered that the future cash flows of these debts are less than the carrying amount in the individual company financial statements, appropriate provisions are made against these balances to reflect the recoverability of the asset.

Bad debt provisions for trade debtors

The company's policy on recognising an impairment of the trade receivables balance is based on a review of individual debtor balances, their ageing and management's assessment of realisation. This review and assessment is conducted on a continuing basis and any material change in management's assessment of trade debtor impairment is reflected in the carrying value of the asset.

David Morris International Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
25
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
6,442,000
13,577,391
Rest of the world
81,567,222
32,314,916
88,009,222
45,892,307
2024
2023
£
£
Other revenue
Interest income
12,915
-

4
Operating (loss)/profit
2024
2023
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
1,410,766
(668,165)
Depreciation of owned tangible fixed assets
392,148
372,820
Amortisation of intangible assets
779,603
815,819
Cost of stocks recognised as an expense
48,470,462
19,972,618
Operating lease charges
3,854,300
3,742,113
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
95,000
91,000
Audit of the financial statements of the company's subsidiaries
15,000
13,000
110,000
104,000
For other services
Taxation compliance services
9,000
8,000
David Morris International Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
26
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Sales, production, marketing and design
45
67
29
26
Administrative
9
18
9
9
Total
54
85
38
35

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
5,669,629
5,786,072
3,731,143
4,481,271
Social security costs
457,488
509,752
457,488
509,752
Pension costs
286,351
234,550
142,887
121,690
6,413,468
6,530,374
4,331,518
5,112,713
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
1,461,443
1,848,194
Company pension contributions
24,470
23,229
1,485,913
1,871,423
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
1,071,239
1,264,264
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
12,915
-
0
David Morris International Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
27
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank loans
63,360
343,901
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
211,428
105,214
Deferred tax
Origination and reversal of timing differences
(3,168,585)
-
0
Total tax (credit)/charge
(2,957,157)
105,214

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

2024
2023
£
£
(Loss)/profit before taxation
(12,560,404)
194,433
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 0% (2023: 23.52%)
(3,140,101)
45,731
Tax effect of expenses that are not deductible in determining taxable profit
327,675
146,531
Effect of change in tax rate
-
(3,878)
Depreciation on assets not qualifying for tax allowances
8,123
6,627
Effect of overseas tax rates
(152,854)
(260,542)
Deferred tax not recognised
-
170,745
Taxation (credit)/charge
(2,957,157)
105,214
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
18,300,000
1,000,000
David Morris International Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
28
12
Intangible fixed assets
Group
Goodwill
Other
Total
£
£
£
Cost
At 1 January 2024
2,124,183
5,372,039
7,496,222
Exchange adjustments
-
0
41,536
41,536
At 31 December 2024
2,124,183
5,413,575
7,537,758
Amortisation and impairment
At 1 January 2024
2,124,183
3,812,834
5,937,017
Amortisation charged for the year
-
0
779,603
779,603
Exchange adjustments
-
0
5,318
5,318
At 31 December 2024
2,124,183
4,597,755
6,721,938
Carrying amount
At 31 December 2024
-
0
815,820
815,820
At 31 December 2023
-
0
1,559,205
1,559,205
The company had no intangible fixed assets at 31 December 2024 or 31 December 2023.

The "Other" intangible assets consists of key money that was paid to obtain the lease for our Paris boutique. The key money is being amortised over 10 years, with 1 year remaining.

David Morris International Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
29
13
Tangible fixed assets
Group
Leasehold property
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2024
4,483,504
2,155,122
188,347
93,056
6,920,029
Additions
619,600
269,362
49,107
-
0
938,069
Exchange adjustments
(930)
(1,938)
-
0
-
0
(2,868)
At 31 December 2024
5,102,174
2,422,546
237,454
93,056
7,855,230
Depreciation and impairment
At 1 January 2024
3,393,239
1,465,959
104,550
14,723
4,978,471
Depreciation charged in the year
93,560
231,376
47,212
20,000
392,148
Exchange adjustments
233,046
-
0
-
0
-
0
233,046
At 31 December 2024
3,719,845
1,697,335
151,762
34,723
5,603,665
Carrying amount
At 31 December 2024
1,382,329
725,211
85,692
58,333
2,251,565
At 31 December 2023
1,090,265
689,163
83,797
78,333
1,941,558
Company
Leasehold property
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2024
1,343,982
1,353,364
187,771
79,999
2,965,116
Additions
17,926
245,074
49,107
-
0
312,107
At 31 December 2024
1,361,908
1,598,438
236,878
79,999
3,277,223
Depreciation and impairment
At 1 January 2024
863,054
711,434
103,974
1,666
1,680,128
Depreciation charged in the year
32,490
207,093
47,212
20,000
306,795
At 31 December 2024
895,544
918,527
151,186
21,666
1,986,923
Carrying amount
At 31 December 2024
466,364
679,911
85,692
58,333
1,290,300
At 31 December 2023
480,928
641,930
83,797
78,333
1,284,988
David Morris International Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
30
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
£
£
£
£
Other investments
2
2
25,608
25,608
Movements in fixed asset investments
Group
Other
£
Cost or valuation
At 1 January 2024 and 31 December 2024
2
Carrying amount
At 31 December 2024
2
At 31 December 2023
2
Movements in fixed asset investments
Company
Other
£
Cost or valuation
At 1 January 2024 and 31 December 2024
25,608
Carrying amount
At 31 December 2024
25,608
At 31 December 2023
25,608
David Morris International Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
31
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
David Morris International Incorporated*
C/o Rampell & Rampell, 223 Sunset Ave, Suite 200, Palm Beach FL, USA
Jewellery retail
Ordinary shares
100.00
Elmtop Limited
180 New Bond St, London, W1S 4RL, UK
Jewellery retail
Ordinary shares
100.00
David Morris (Middle East) Limited
180 New Bond St, London, W1S 4RL, UK
Jewellery retail
Ordinary shares
100.00
David Morris Hong Kong Limited
22nd Floor, Tai Yau Building, 181 Johnston Road, Wanchai, HK
Jewellery retail
Ordinary shares
100.00
Royal Gems Jewellery Trading LLC
P.O Box 192017 GF188, The Dubai Mall, Dubai, UAE
Jewellery retail
Ordinary shares
49.00
David Morris France Sasu
362-366 Rue Saint Honore, 7 Place Vendome, Paris, France
Jewellery retail
Ordinary shares
100.00
Exclusive Brands Ltd
69 Athol Street, Douglas, Isle of man, IM1 1JE
Holding IP rights
Ordinary shares
100.00

*Held indirectly

David Morris International Limited exercises a dominant influence over Royal Gems Jewellery Trading LLC.

16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
13,664,932
21,808,280
13,664,932
21,808,280
Work in progress
16,105,755
9,436,258
16,105,755
9,436,258
Finished goods and goods for resale
53,091,857
43,378,793
53,091,857
43,030,759
82,862,544
74,623,331
82,862,544
74,275,297

Stocks are stated after provisions for impairment of £32,779,598 (2023: £14,687,058).

David Morris International Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
32
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,355,063
8,962,181
2,380,883
8,664,224
Corporation tax recoverable
1,759,284
438,049
1,751,592
430,357
Amounts owed by group undertakings
-
-
4,700,946
4,974,316
Other debtors
5,914,727
1,922,047
5,056,846
1,127,027
Prepayments and accrued income
575,271
1,908,296
412,379
1,761,519
10,604,345
13,230,573
14,302,646
16,957,443
Amounts falling due after more than one year:
Deferred tax asset (note 20)
3,269,117
100,532
3,269,117
100,532
Total debtors
13,873,462
13,331,105
17,571,763
17,057,975

Amount owed by group undertakings are interest free, unsecured and repayable on demand.

18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Other borrowings
753,194
3,599,846
753,194
3,599,846
Trade creditors
34,749,505
8,891,297
34,706,803
8,864,220
Amounts owed to group undertakings
-
0
-
0
23,174,124
19,819,534
Corporation tax payable
215,829
444
-
0
-
0
Other taxation and social security
514,871
215,849
272,352
173,072
Other creditors
3,280,892
1,625,857
675,303
559,024
Accruals and deferred income
55,825,164
26,265,546
57,295,523
26,539,811
95,339,455
40,598,839
116,877,299
59,555,507

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

19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
286,351
234,550

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

David Morris International Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
33
20
Deferred taxation

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

Assets
Assets
2024
2023
Group
£
£
Accelerated capital allowances
17,104
(13,451)
Tax losses
3,250,301
87,000
Short term timing differences
1,712
26,983
3,269,117
100,532
Assets
Assets
2024
2023
Company
£
£
Accelerated capital allowances
17,104
(13,451)
Tax losses
3,250,301
87,000
Short term timing differences
1,712
26,983
3,269,117
100,532
Group
Company
2024
2024
Movements in the year:
£
£
Asset at 1 January 2024
(100,532)
(100,532)
Credit to profit or loss
(3,168,585)
(3,168,585)
Asset at 31 December 2024
(3,269,117)
(3,269,117)
21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
3,064,935
3,064,935
3,064,935
3,064,935
David Morris International Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
21
Share capital (continued)
34

There is a single class of ordinary shares. There are no restrictions on the distribution of capital and the repayment of capital.

The Group and Company's other reserves are as follows:

The share premium reserve contains the premium arising on issue of equity shares.

The profit and loss reserve represents cumulative profits or losses net of dividends paid.

The capital redemption reserve represents the transfers made from retained earnings on the purchase of own shares as part of a buy-back programme.

22
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
3,735,049
3,445,441
2,628,287
2,420,417
Between two and five years
10,571,243
10,648,961
8,822,917
8,452,500
In over five years
23,484,308
24,538,699
23,483,299
24,538,699
37,790,600
38,633,101
34,934,503
35,411,616
David Morris International Limited
Notes to the group financial statements (continued)
For the year ended 31 December 2024
35
23
Related party transactions

The Company settled invoices for Jeremy Morris for an aggregate amount of £47,380 (2023: £659,227). The liability on his Director's Current Account at the year end was £705,723 (2023: £658,343).

During 2024 Jeremy Morris deposited no further loan into the business. The amounts owed to the director at the year end was £753,194 (2023: £753,194).

Details of other related party transactions are disclosed in notes 16 and 17.

The immediate controlling party is Waterflow Enterprises Corp, a company incorporated in the British Virgin Islands. The financial statements for this company are not publicly available.

See note 7 for disclosure of the directors' remuneration and key management compensation.

24
Cash generated from group operations
2024
2023
£
£
(Loss)/profit for the year after tax
(9,603,247)
89,219
Adjustments for:
Taxation charged
211,428
-
Finance costs
63,360
343,901
Investment income
(12,915)
-
0
Amortisation and impairment of intangible assets
779,603
815,819
Depreciation and impairment of tangible fixed assets
392,148
372,820
Foreign exchange gains on cash equivalents
199,696
(218,209)
Increase in provisions
21,451,414
5,909,502
Movements in working capital:
Increase in stocks
(32,859,212)
(18,323,672)
Decrease/(increase) in debtors
3,947,463
(8,920,661)
Increase in creditors
57,371,883
27,033,053
Cash generated from operations
41,941,621
7,101,772
25
Analysis of changes in net funds - group
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
12,900,524
19,094,882
31,995,406
Murabaha loan
(2,846,651)
2,846,651
-
10,053,873
21,941,533
31,995,406
2024-12-31 2024-01-01 false false CCH Software CCH Accounts Production 2025.300 J L Morris S AlMabrouk S AlMabrouk W D Pond false 02630165 2024-01-01 2024-12-31 02630165 bus:Director1 2024-01-01 2024-12-31 02630165 bus:CompanySecretaryDirector1 2024-01-01 2024-12-31 02630165 bus:CompanySecretary1 2024-01-01 2024-12-31 02630165 bus:Director2 2024-01-01 2024-12-31 02630165 bus:Director3 2024-01-01 2024-12-31 02630165 bus:Consolidated 2024-12-31 02630165 2024-12-31 02630165 bus:Consolidated 2024-01-01 2024-12-31 02630165 bus:Consolidated 2023-01-01 2023-12-31 02630165 2023-01-01 2023-12-31 02630165 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2024-01-01 2024-12-31 02630165 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2023-01-01 2023-12-31 02630165 core:OtherResidualIntangibleAssets bus:Consolidated 2024-12-31 02630165 core:OtherResidualIntangibleAssets bus:Consolidated 2023-12-31 02630165 core:NetGoodwill 2023-12-31 02630165 core:Goodwill bus:Consolidated 2024-12-31 02630165 core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill bus:Consolidated 2024-12-31 02630165 core:Goodwill bus:Consolidated 2023-12-31 02630165 core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill bus:Consolidated 2023-12-31 02630165 bus:Consolidated 2023-12-31 02630165 2023-12-31 02630165 core:LandBuildings core:LeasedAssetsHeldAsLessee bus:Consolidated 2024-12-31 02630165 core:FurnitureFittings bus:Consolidated 2024-12-31 02630165 core:ComputerEquipment bus:Consolidated 2024-12-31 02630165 core:MotorVehicles bus:Consolidated 2024-12-31 02630165 core:LandBuildings core:LeasedAssetsHeldAsLessee bus:Consolidated 2023-12-31 02630165 core:FurnitureFittings bus:Consolidated 2023-12-31 02630165 core:ComputerEquipment bus:Consolidated 2023-12-31 02630165 core:MotorVehicles bus:Consolidated 2023-12-31 02630165 core:LandBuildings core:LeasedAssetsHeldAsLessee 2024-12-31 02630165 core:FurnitureFittings 2024-12-31 02630165 core:ComputerEquipment 2024-12-31 02630165 core:MotorVehicles 2024-12-31 02630165 core:LandBuildings core:LeasedAssetsHeldAsLessee 2023-12-31 02630165 core:FurnitureFittings 2023-12-31 02630165 core:ComputerEquipment 2023-12-31 02630165 core:MotorVehicles 2023-12-31 02630165 core:CurrentFinancialInstruments core:WithinOneYear bus:Consolidated 2024-12-31 02630165 core:CurrentFinancialInstruments bus:Consolidated 2023-12-31 02630165 core:ShareCapital bus:Consolidated 2024-12-31 02630165 core:ShareCapital bus:Consolidated 2023-12-31 02630165 core:SharePremium bus:Consolidated 2024-12-31 02630165 core:SharePremium bus:Consolidated 2023-12-31 02630165 core:CapitalRedemptionReserve bus:Consolidated 2024-12-31 02630165 core:CapitalRedemptionReserve bus:Consolidated 2023-12-31 02630165 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2024-12-31 02630165 core:RetainedEarningsAccumulatedLosses bus:Consolidated 2023-12-31 02630165 core:ShareCapital 2024-12-31 02630165 core:ShareCapital 2023-12-31 02630165 core:SharePremium 2024-12-31 02630165 core:SharePremium 2023-12-31 02630165 core:CapitalRedemptionReserve 2024-12-31 02630165 core:CapitalRedemptionReserve 2023-12-31 02630165 core:RetainedEarningsAccumulatedLosses 2024-12-31 02630165 core:RetainedEarningsAccumulatedLosses 2023-12-31 02630165 core:ShareCapital bus:Consolidated 2022-12-31 02630165 core:SharePremium bus:Consolidated 2022-12-31 02630165 core:CapitalRedemptionReserve bus:Consolidated 2022-12-31 02630165 2022-12-31 02630165 core:ShareCapital 2022-12-31 02630165 core:SharePremium 2022-12-31 02630165 core:CapitalRedemptionReserve 2022-12-31 02630165 core:RetainedEarningsAccumulatedLosses 2022-12-31 02630165 bus:Consolidated 2022-12-31 02630165 core:Goodwill 2024-01-01 2024-12-31 02630165 core:IntangibleAssetsOtherThanGoodwill 2024-01-01 2024-12-31 02630165 core:LandBuildings core:LongLeaseholdAssets 2024-01-01 2024-12-31 02630165 core:FurnitureFittings 2024-01-01 2024-12-31 02630165 core:ComputerEquipment 2024-01-01 2024-12-31 02630165 core:MotorVehicles 2024-01-01 2024-12-31 02630165 core:UKTax bus:Consolidated 2024-01-01 2024-12-31 02630165 core:UKTax bus:Consolidated 2023-01-01 2023-12-31 02630165 core:Goodwill bus:Consolidated 2023-12-31 02630165 core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill bus:Consolidated 2023-12-31 02630165 bus:Consolidated 2023-12-31 02630165 core:Goodwill bus:Consolidated 2024-01-01 2024-12-31 02630165 core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill bus:Consolidated 2024-01-01 2024-12-31 02630165 core:LandBuildings core:LeasedAssetsHeldAsLessee bus:Consolidated 2023-12-31 02630165 core:FurnitureFittings bus:Consolidated 2023-12-31 02630165 core:ComputerEquipment bus:Consolidated 2023-12-31 02630165 core:MotorVehicles bus:Consolidated 2023-12-31 02630165 core:LandBuildings core:LeasedAssetsHeldAsLessee 2023-12-31 02630165 core:FurnitureFittings 2023-12-31 02630165 core:ComputerEquipment 2023-12-31 02630165 core:MotorVehicles 2023-12-31 02630165 2023-12-31 02630165 core:LandBuildings core:LeasedAssetsHeldAsLessee bus:Consolidated 2024-01-01 2024-12-31 02630165 core:FurnitureFittings bus:Consolidated 2024-01-01 2024-12-31 02630165 core:ComputerEquipment bus:Consolidated 2024-01-01 2024-12-31 02630165 core:MotorVehicles bus:Consolidated 2024-01-01 2024-12-31 02630165 core:LandBuildings core:LeasedAssetsHeldAsLessee 2024-01-01 2024-12-31 02630165 core:Subsidiary1 2024-01-01 2024-12-31 02630165 core:Subsidiary2 2024-01-01 2024-12-31 02630165 core:Subsidiary3 2024-01-01 2024-12-31 02630165 core:Subsidiary4 2024-01-01 2024-12-31 02630165 core:Subsidiary5 2024-01-01 2024-12-31 02630165 core:Subsidiary6 2024-01-01 2024-12-31 02630165 core:Subsidiary7 2024-01-01 2024-12-31 02630165 core:Subsidiary1 1 2024-01-01 2024-12-31 02630165 core:Subsidiary2 2 2024-01-01 2024-12-31 02630165 core:Subsidiary3 3 2024-01-01 2024-12-31 02630165 core:Subsidiary4 4 2024-01-01 2024-12-31 02630165 core:Subsidiary5 5 2024-01-01 2024-12-31 02630165 core:Subsidiary6 6 2024-01-01 2024-12-31 02630165 core:Subsidiary7 7 2024-01-01 2024-12-31 02630165 core:CurrentFinancialInstruments bus:Consolidated 2024-12-31 02630165 core:CurrentFinancialInstruments 2024-12-31 02630165 core:CurrentFinancialInstruments 2023-12-31 02630165 core:CurrentFinancialInstruments bus:Consolidated 1 2024-12-31 02630165 core:CurrentFinancialInstruments bus:Consolidated 1 2023-12-31 02630165 core:CurrentFinancialInstruments 2 2024-12-31 02630165 core:CurrentFinancialInstruments 3 2024-12-31 02630165 core:Non-currentFinancialInstruments bus:Consolidated 2024-12-31 02630165 core:Non-currentFinancialInstruments bus:Consolidated 2023-12-31 02630165 core:Non-currentFinancialInstruments 2024-12-31 02630165 core:Non-currentFinancialInstruments 2023-12-31 02630165 core:CurrentFinancialInstruments core:WithinOneYear bus:Consolidated 2023-12-31 02630165 core:CurrentFinancialInstruments core:WithinOneYear 2024-12-31 02630165 core:CurrentFinancialInstruments core:WithinOneYear 2023-12-31 02630165 bus:PrivateLimitedCompanyLtd 2024-01-01 2024-12-31 02630165 bus:FRS102 2024-01-01 2024-12-31 02630165 bus:Audited 2024-01-01 2024-12-31 02630165 bus:ConsolidatedGroupCompanyAccounts 2024-01-01 2024-12-31 02630165 bus:FullAccounts 2024-01-01 2024-12-31 xbrli:pure xbrli:shares iso4217:GBP