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Registered number: 08254044 CUBITTS KX LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
CUBITTS KX LIMITED COMPANY INFORMATION
Director | T E Broughton
Registered number | 08254044
Registered office | The Brewery Building
| 55-61 Brewery Road
| London
| N7 9QH
Independent auditors | HaysMac LLP
| 10 Queen Street Place
| London
| EC4R 1AG
CUBITTS KX LIMITED CONTENTS
| Page
Strategic Report | 1 - 3
Director's Report | 4 - 6
Independent Auditors' Report | 7 - 10
Statement of Comprehensive Income | 11
Statement of Financial Position | 12
Statement of Changes in Equity | 13
Notes to the Financial Statements | 14 - 38
CUBITTS KX LIMITED STRATEGIC REPORT FOR THE YEAR ENDED 31 MARCH 2025
Introduction
Cubitts KX Limited is the trading company for Cubitts, a designer, manufacturer and retailer of spectacles, sunglasses and associated accessories and sundries. The Director of Cubitts KX Limited is pleased to present their strategic report and audited accounts for the year ended 31 March 2025.
Business review
During the financial year ending 31 March 2025 we continued our growth, to deliver our strongest year of trading to date. Most notably, we opened our first stores outside the warm but grey womb of the United Kingdom, with two sites in New York City; Cubitts SoHo and Cubitts West Village. This was a significant moment for the business. For many years, international growth had felt both ambitious and slightly abstract; something we spoke about, planned for and worked towards. This year it became real. Revenue continued to grow, reflecting the ongoing appeal of the brand across retail, ecommerce and wholesale. Profitability, however, declined as we chose to invest heavily in the next chapter of the business, particularly international expansion. Opening in New York required meaningful upfront investment in people, property, infrastructure and management attention. This was neither unexpected nor particularly enjoyable, but it was an important step in building Cubitts into the business we intend it to become. Alongside our international expansion, we continued to invest in the foundations of the business. These included the ongoing development of our glazing operations and workshop in King’s Cross, the strengthening of our partnership with ZEISS, the growth of our ecommerce and wholesale businesses, and further work on the technology and systems needed to support a larger and more complicated organisation. As ever, growth looked glamorous from a distance, and administrative from close up. Results during the year included: ∙Growing revenue by +11%. ∙Establishing Cubitts Inc., our first international subsidiary, and opening two physical retail sites in New York City. ∙Strengthening our commercial partnership with ZEISS, while bringing almost all glazing in-house via our glazing lab in King’s Cross, London. ∙Continuing our technology transformation through investment in our ecommerce platform and operational support systems. ∙Rolling out the latest version of our Made-to-Measure technology; using scanning, parametric fitting, AI (the artist formerly known as machine learning), and CNC machining to advance the way spectacles are chosen, designed, made and owned. Page 1
CUBITTS KX LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Strategic Priorities Our strategic priorities include: 1.Growing profitably. We aim to grow both revenue and profitability at a sensible and sustainable rate, while continuing to expand domestically and internationally. This requires balancing ambition with discipline; a concept which is straightforward in theory and somewhat more demanding in practice. 2.Improving standards. We continue to invest in our products and services, including lens change, repairs and Bespoke, alongside the operational capabilities needed to deliver them properly. We remain of the view that spectacles deserve more care and attention than the industry sometimes gives them. 3.Being a market leader. We seek to set high standards in our sector through design, service, manufacturing, technology and brand. This includes maintaining strong customer satisfaction, retaining our position as a B Corp, and investing in our team through Cubitts Academy and other learning platforms. Looking ahead, we remain optimistic, despite an increasingly uncertain world, and no obvious shortage of things to worry about. There is still much to do. International expansion brings opportunity, but also complexity. Growth demands better systems, stronger management and greater discipline. The broader economic environment remains unsettled, and we do not assume the coming year will be any less eventful than the last. Nevertheless, we believe the business is in a strong position, with a clear identity, a loyal and growing customer base, and a larger platform from which to build.
Principal risks and uncertainties
To help manage and mitigate against risks, a risk register is maintained and regularly reviewed by the Board and Leadership team. Key areas of risk include: Domestic and global economic factors The high cost of living and inflation during the year are likely to continue, and have an adverse impact on consumer spending, particularly on non-essential goods. Glasses, while essential to many, can be delayed or substituted with cheaper alternatives. We continue to focus on demonstrating the exceptional long-term value of our products - including continuing to offer and highlight durability, repair services, and timeless designs - to position Cubitts as a worthwhile investment. We will need to continue to work hard with our suppliers, our workshops, glazing labs and wider teams to maintain exceptional value to our customers - particularly given our transparent approach to pricing. Competition The optical market remains crowded, with global brands and niche players competing for the same audience. Our response is to double down on our core strengths: exceptional products characterised by the highest quality materials and distinctive designs, exceptional customer service and after care, and exemplary retail and digital experiences. We aim to be the world’s most customer centric spectacles company. Environmental risks Climate change and its impact on resource availability and production pose a long-term risk. Rising temperatures, extreme weather, and shifts in resource distribution could disrupt operations. Our strategy to address this includes reducing our carbon footprint, reducing wastage, and making products that can last many years. Technological advancements Rapid changes in technology could make parts of our business model obsolete or leave us lagging behind competitors. To address this, we are investing in digital transformation, including upgrading our e-commerce platform, technology stack and customer digital application (‘App’). Page 2
CUBITTS KX LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025
Financial key performance indicators
The Director uses the following KPIs to manage the business: ∙Turnover: £16,135,294 (2024 - £14,602,454) ∙Growth in turnover: +11% (2024 - +18%) ∙EBITDA: £1,067,369 (2024 - £1,296,890) ∙Cash: £575,535 (2024 - £487,401) ∙Net promoter score: - 85 ∙Carbon per frame sold: - 7kg This report was approved by the board and signed on its behalf.
................................................ T E Broughton Director
Date: 12 May 2026
Page 3
CUBITTS KX LIMITED DIRECTOR'S REPORT FOR THE YEAR ENDED 31 MARCH 2025 The director presents his report and the financial statements for the year ended 31 March 2025. Principal activity The principal activity of the company continued to be that of designer, manufacturer and retailer of spectacles, sunglasses and associated accessories and sundries.
Director's responsibilities statement
The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the director is required to: ∙select suitable accounting policies for the Company's financial statements and then apply them consistently; ∙make judgements and accounting estimates that are reasonable and prudent; ∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Results and dividends
The loss for the year, after taxation, amounted to £(34,504) (2024 - profit £190,646).
Director
The director who served during the year was:
T E Broughton
Future developments The Company remained focused on stabilising performance through operational effectiveness, prioritizing organic development in the UK while continuing to assess opportunities in the US. In the subsequent year to 31 March 2026, Cubitts did not open any new stores, instead prioritising the optimisation and performance of its existing estate across the UK and US. Following the late 2024 launch of the new website, the Company continued to develop its digital platform and customer proposition with a service- and experience-led focus. Page 4
CUBITTS KX LIMITED DIRECTOR'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Looking ahead, the Company will continue to invest in its own brand products including new materials, and maintain targeted investment in digital technologies to support the eCommerce channel and specialist services in stores through its Made to Measure and Bespoke products. These initiatives are expected to support operational performance and strengthen the Company’s market position over the medium term. Going concern The director has assessed the financial position of Cubitts KX Limited, considering current performance, forecasted financial results, and cash flow projections. This assessment covers at least 12 months from the expected signing of the financial statements, extending to May 2027. Based on this review, the director has a reasonable expectation that the Company has adequate resources to continue operating for the foreseeable future and have therefore prepared the financial statements on a going concern basis. As part of this assessment, the director has reviewed forecasted EBITDA, cash flow projections, and key financial assumptions and considered whether any material uncertainties exist that could cast significant doubt on the Company’s ability to continue as a going concern. The assessment confirms that no such material uncertainties exist. Financial forecasts incorporate assumptions regarding revenue growth, profitability, and cost structures, all of which have been carefully evaluated. Sensitivity analyses have been performed, testing various downside scenarios, including potential revenue reductions and increased overheads. In all cases, the Company remains EBITDA profitable. Additionally, the director is confident in the Company’s ability to secure external funding if required, either to support growth or strengthen its financial position. Based on the Company’s financial position, projections, and available financing options, the directors conclude that Cubitts KX Limited remains a going concern and have adopted this basis in preparing the financial statements.
Disclosure of information to auditors
The director at the time when this Director's Report is approved has confirmed that: ∙so far as is aware, there is no relevant audit information of which the Company's auditors are unaware, and ∙ has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Post balance sheet events
Since the end of the financial year, the company has signed lease agreements for two additional stores - Manchester in the UK and Dublin in the EU, both opening later in the summer of 2026. The company has also taken two leases on operational spaces to open in the coming months, strengthening its long-term ambitions. This includes a standalone space of over 13,000 square feet on Blundell Street, London, realising the ambition to have the best spectacle making lab facility in London and 2,000 square feet of space in Brooklyn designed to support US fulfillment and serve as New York's only spectacle-making facility.
Auditors
The auditor, HaysMac LLP, was appointed in the period and will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. Page 5
CUBITTS KX LIMITED DIRECTOR'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 This report was approved by the board and signed on its behalf.
................................................ T E Broughton Director
Date: 12 May 2026
Page 6
CUBITTS KX LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CUBITTS KX LIMITED
Opinion
We have audited the financial statements of Cubitts KX Limited (the 'Company') for the year ended 31 March 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: ∙give a true and fair view of the state of the Company's affairs as at 31 March 2025 and of its profit for the year then ended; ∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and ∙have been prepared in accordance with the requirements of the Companies Act 2006.
Basis of unqualified opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. Page 7
CUBITTS KX LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CUBITTS KX LIMITED (CONTINUED)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The director is responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit: ∙the information given in the Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ∙the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Director's Report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or ∙the financial statements are not in agreement with the accounting records and returns; or ∙certain disclosures of director's 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 Director's Responsibilities Statement set out on page 4, the director is 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 director determines 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 director is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Page 8
CUBITTS KX LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CUBITTS KX LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud. Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to regulatory requirements for the company and trade regulations and UK tax laws and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, income tax, payroll tax and sales tax. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included: ∙Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud; ∙Reviewing minutes of meetings of those charged with governance; ∙Evaluating management's controls designed to prevent and detect irregularities; ∙Identifying and testing accounting journals entries, in particular journal entries which exhibited the characteristics we had identified as possible indicators of irregularities; and ∙Challenging assumptions and judgments made by management in their critical accounting estimates. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
Use of our report
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed. Page 9
CUBITTS KX LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CUBITTS KX LIMITED (CONTINUED) Charlotte Williams (Senior Statutory Auditor) for and on behalf of HaysMac LLP Statutory Auditors 10 Queen Street Place London EC4R 1AG 12 May 2026 Page 10
CUBITTS KX LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2025
| 2025 | 2024
| £ | £
Turnover | 4 | 16,135,294 | 14,602,454
Cost of sales |  | (4,115,389) | (3,595,782)
Gross profit |  | 12,019,905 | 11,006,672
Distribution costs |  | (509,420) | (506,730)
Administrative expenses |  | (11,858,779) | (10,415,187)
Other operating income | 5 | 620,802 | 234,731
Operating profit | 6 | 272,508 | 319,486
Interest receivable and similar income | 10 | 1,154 | 4,376
Interest payable and similar expenses | 11 | (104,618) | (133,216)
Profit before tax |  | 169,044 | 190,646
Tax on profit | 12 | (203,548) | -
(Loss)/profit for the financial year |  | (34,504) | 190,646
There was no other comprehensive income for 2025 (2024: £nil).
The notes on pages 14 to 38 form part of these financial statements.
Page 11
CUBITTS KX LIMITED REGISTERED NUMBER: 08254044 STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2025
|  | 2025 |  | 2024
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Intangible assets | 13 |  | 668,127 |  | 711,071
Tangible assets | 14 |  | 1,432,233 |  | 1,328,113
Investments | 15 |  | 4 |  | 4
|  |  | 2,100,364 |  | 2,039,188
Current assets |  |  |  |  |
Stocks | 16 | 2,633,837 |  | 2,607,155 |
Debtors: Amounts falling due within one year | 17 | 1,459,101 |  | 742,742 |
Cash at bank and in hand | 18 | 575,535 |  | 487,401 |
|  | 4,668,473 |  | 3,837,298 |
Creditors: Amounts falling due within one year | 19 | (6,530,446) |  | (5,405,231) |
Net current liabilities |  |  | (1,861,973) |  | (1,567,933)
Total assets less current liabilities |  |  | 238,391 |  | 471,255
Creditors: Amounts falling due after more than one year | 20 |  | (274,295) |  | (699,181)
Deferred tax |  | (178,126) |  | - |
Other provisions | 24 | (471,500) |  | (423,100) |
|  |  | (649,626) |  | (423,100)
Net liabilities |  |  | (685,530) |  | (651,026)
Capital and reserves |  |  |  |  |
Called up share capital | 25 |  | 252,997 |  | 252,997
Profit and loss account | 26 |  | (938,527) |  | (904,023)
|  |  | (685,530) |  | (651,026)
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
................................................ T E Broughton
Director
Date: 12 May 2026
The notes on pages 14 to 38 form part of these financial statements. Page 12
CUBITTS KX LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2025
| Called up share capital | Profit and loss account | Total equity
| £ | £ | £
At 1 April 2023 | 252,997 | (1,094,669) | (841,672)
Profit for the year | - | 190,646 | 190,646
At 1 April 2024 | 252,997 | (904,023) | (651,026)
Loss for the year | - | (34,504) | (34,504)
At 31 March 2025 | 252,997 | (938,527) | (685,530)
| The notes on pages 14 to 38 form part of these financial statements.
Page 13
CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
1. | General information
Cubitts KX Limited is a private company (registered number: 08254044), limited by shares. It is incorporated in the United Kingdom and domiciled in England and Wales. The registered office is The Brewery Building, 55-61 Brewery Road, London, England, N7 9QH. The principal activity of the company continued to be that of designer, manufacturer and retailer of spectacles, sunglasses and associated accessories and sundries. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. The 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 (see note 3). The following principal accounting policies have been applied: Page 14
CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.2 | Going concern
These financial statements are prepared on the going concern basis. The director has a reasonable expectation that the company will continue in operational existence for the foreseeable future. The company made a loss for the year of (34,504) (2024: profit of £190,646) and as at the balance sheet date had net liabilities of £ 685,530 (2024: net liabilities of £ 651,026). The director has assessed the financial position of company, considering current performance, forecasted financial results, and cash flow projections. This assessment covers at least 12 months from the expected signing of the financial statements, extending to May 2027. Based on this review, the director has a reasonable expectation that the company has adequate resources to continue operating for the foreseeable future and have therefore prepared the financial statements on a going concern basis. As part of this assessment, the director reviewed forecasted EBITDA, cash flow projections, and key financial assumptions and considered whether any material uncertainties exist that could cast significant doubt on the company’s ability to continue as a going concern. The assessment confirms that no such material uncertainties exist. Financial forecasts incorporate assumptions regarding revenue growth, profitability, and cost structures, all of which have been carefully evaluated. Sensitivity analyses have been performed, testing various downside scenarios, including potential revenue reductions and increased overheads. In all cases, the company remains EBITDA profitable. Additionally, the director is confident in the company’s ability to secure external funding if required, either to support growth or strengthen its financial position. The director continuously assesses the external risk factors that could impact demand and profitability, such as the current economic uncertainty, the impact of the cost of living crisis and risks from inflationary pressures, and captures any impacts of these in the reforecasts. The company meets its funding requirements through working capital, bank loans and other loans. The director has prepared cash flow projections for the company’s future cash requirements, taking account of reasonably possible downsides, mitigating actions and further funding requirements, and is satisfied that the company has sufficient cash, working capital and lending facilities available to meet its liabilities as they fall due for a period of 12 months from the approval of these financial statements. As a result, the director is confident that they have the ability to respond effectively to continued uncertainty and therefore, the director believes that the company will be able to continue to meet its liabilities as they fall due for a period of at least twelve months from the date of approval of the financial statements. Consequently, the financial statements have been prepared on a going concern basis. Page 15
CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.3 | Financial Reporting Standard 102 - reduced disclosure exemptions
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": ∙the requirements of Section 7 Statement of Cash Flows; ∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d). This information is included in the consolidated financial statements of Cubitts KX Group Limited as at 31 March 2025 and these financial statements may be obtained from its registered office, The Brewery Building, 55-61 Brewery Road, London, England, N7 9QH.
| 2.4 | Exemption from preparing consolidated financial statements
The company is a wholly owned subsidiary of Cubitts KX Group Limited and is included in the consolidated financial statements of Cubitts KX Group Limited, which are publicly available from Companies House. The company is exempt by virtue of section 400 of Companies Act 2006 from the requirement to prepare consolidated financial statements. These financial statements are the company's separate financial statements.
| 2.5 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Sale of goods Revenue from the sale of goods is recognised when all of the following conditions are satisfied: ∙the Company has transferred the significant risks and rewards of ownership to the buyer; ∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; ∙the amount of revenue can be measured reliably; ∙it is probable that the Company will receive the consideration due under the transaction; and ∙the costs incurred or to be incurred in respect of the transaction can be measured reliably. Retail: Revenue is recognised by the company when goods have been sold in store and is stated exclusive if VAT and discounts. The buyer's right to return is recognised by reducing turnover by the amount returned on the customer's receipt. Online: Revenue is recognised by the company when goods have been delivered to the customer and is stated exclusive of VAT and discounts. The buyer's rights to return is recognised by reducing turnover by an amount that is based on returns for online sales. Page 16
CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.6 | Operating leases: the Company as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
| 2.7 | Leased assets: the Company as lessee
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
| 2.8 | Research and development
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years. If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
| 2.9 | Interest income
Interest income is recognised in profit or loss using the effective interest method.
| 2.10 | Finance costs
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.
| 2.11 | Borrowing costs
All borrowing costs are recognised in profit or loss in the year in which they are incurred. Page 17
CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.12 | Employee benefits
The Company provides short term benefits including holiday pay, annual bonus arrangements, commissions and a third-party pension scheme. (i) Pensions: the Company contributes to an independent pension fund for its employees. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in an independently administered fund. (ii) Short Term Benefits: short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received. (iii) Annual Bonus and Commission Plan: The Company operates a number of discretionary annual bonus and commission plans for employees. An expense is recognised in the profit and loss only when the Company has the legal or constructive obligation to make payments under the discretionary plans as a result of past events and a reliable estimate of the obligation can be made.
| 2.13 | Pensions
Defined contribution pension plan The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds. Page 18
CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.14 | Current and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that: ∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date. Page 19
CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.15 | Intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. The estimated useful lives range as follows:
|  |  |  | Development expenditure | - | 4 | years
|  |  |  | Trademarks | - | 10 | years
|  |  |  | Websites | - | 4 | years
Development costs: The Company capitalises development expenditure as an intangible asset when it is able to demonstrate all of the following as: a)The technical feasibility of completing the development so the intangible asset will be available for use or sale; b)Its intention to complete the development and to use or sell the intangible asset; c)Its ability to use or sell the intangible asset; d)How the intangible asset will generate probable future economic benefits; e)The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset; and f)Its ability to measure reliably the expenditure attributable to the intangible asset during its development. Capitalised development expenditure is initially recognised at cost and subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Capitalised development expenditure is amortised on a straight line basis over its useful life, which is 4 years. The director considers these useful lives to be appropriate based on the useful economic life of the asset. Amortisation of development costs commences once the developed product or service is utilised. All research expenditure and development expenditure that does not meet the above conditions is expensed as incurred.
| 2.16 | Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Page 20
CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.16 | Tangible fixed assets (continued)
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:
|  |  |  | Restoration costs | - | over the life of lease
|  |  |  | Plant and machinery | - | 20%
|  |  |  | Fixtures and fittings | - | 25%
|  |  |  | Computer equipment | - | 20%
|  |  |  | Purchase premium | - | 10%
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
| 2.17 | Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
| 2.18 | Valuation of investments
Investments in subsidiaries are measured at cost less accumulated impairment.
| 2.19 | Stocks
Stock is stated at the lower of cost and net realisable value. Costs include all costs incurred in bringing each product to its present location and condition. At the end of each reporting date, stock is assessed for impairment. If an item of 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 the profit and loss account. Page 21
CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.20 | Debtors
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
| 2.21 | Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
| 2.22 | Creditors
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
| 2.23 | Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's 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 Basic financial assets Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. 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 company after deducting all of its liabilities. Basic financial liabilities Basic financial liabilities, including trade and other payables , bank loans and amounts owed to fellow group companies 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 payment 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 payables 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 Page 22
CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.23 | Financial instruments (continued)
payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
| 2.24 | Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
| 2.25 | Borrowings
Borrowings are initially recognised at the transaction price, including transaction costs, and subsequently measured at amortised cost using the effective interest method. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and other similar charges.
| 2.26 | 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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date. Deferred tax 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. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
| 2.27 | Foreign currency translation
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. Page 23
CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 2.Accounting policies (continued)
| 2.28 | Provisions
Provisions are recognised when the Company has an obligation at the reporting date as a result of a past event which it is probable will result in the transfer of economic benefits and that obligation can be estimated reliably. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.
| 2.29 | Share-based payments
The Company grants share options (“equity-settled share-based payments”) to certain employees. Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black-Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
3. | Judgements in applying accounting policies and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgement, estimates and assumptions that affect the application of the accounting policies and the reported amounts of assets and liabilities, revenues and expenses. Actual results may differ from these estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, vary to the actual results. The estimates and assumptions that are most likely to cause a material adjustment to the carrying amounts of assets and liabilities within the next financial period are addressed below. Stock provision The Company designs and sells spectacles, sunglasses and associated accessories and is subject to changing consumer demands. 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 considered the nature and condition of the stock, as well as applying assumptions around the anticipated saleability of the products. Share based payments For equity settled share based payments scheme, management applies judgement in determining the probability of the vesting conditions being met. The entity believes it is not probable that vesting criteria will be met, therefore, the number of equity and cash settled share options expected to vest is zero. As a result, not charge has been recognised. Page 24
CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 3.Judgements in applying accounting policies (continued) Capitalisation of development costs Management has reviewed activity relating to internal product development projects during the period and capitalised costs where it is considered that the FRS102 criteria have been met. Management review the work of developers during the period and make the following judgements and estimates when capitalising development costs: ∙Work relating to product project development is reviewed against FRS102 criteria and is capitalised if management consider that the criteria have been met. ∙Work relating to the maintenance of product is expensed to the statement of comprehensive income. ∙Assessment of technical, financial and other resources required and available to complete development. ∙Technical feasibility of completing the development work. ∙Completion status of the development work. ∙Expected useful life of the asset once completed. Intangible fixed assets Intangible fixed assets are amortised over their useful economic lives which are assessed annually and may vary depending on a number of factors. In re-assessing the asset lives, factors such as technology innovation and enhancement projects are taken into account. Tangible fixed assets Tangible fixed assets are depreciated over their useful economic lives which are assessed annually and may vary depending on a number of factors. In re-assessing the asset lives, factors such as technology innovation, asset life cycles and maintenance requirements are taken into account. Onerous leases Loss making stores are assessed annually in line with the company's lease arrangements to determine whether the leases are onerous. Provision is made when it is considered that the unavoidable costs of meeting the lease contracts for these stores will exceed the expected future economic benefits. The management performed a review and concluded the leases are not onerous and therefore no provision has been recognised. Restoration provision A restoration provision is recognised for expected obligation to the landlords i.e. the expected cost of future restoration work for leasehold properties at the end of a lease term. Management have assessed the leases for each property, determining which leases have specific clauses in relation to the restoration of the property. Management have estimated this cost based on their knowledge of the lease terms and costs expected to be incurred. Management have deemed the present value adjustment movement to be immaterial and therefore no adjustments have been made for this. Impairment of tangible and intangible fixed assets Tangible and intangible assets are reviewed for impairment if events or changes in circumstances indicate that the carrying value may not be recoverable. Management performs an impairment review for assets that has indicators of impairment. Management's assumptions and estimates are based on the on the performance of the store and lease length of each store. Future events could cause the forecast assumptions used in impairment assessments to change with a consequential adverse impact on the results as the actual cash flows may differ from forecasts. Page 25
CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Retail, Online & Wholesale | 16,135,294 | 14,602,454
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| United Kingdom | 15,731,402 | 14,215,642
| Rest of the world | 403,892 | 386,812
|  | 16,135,294 | 14,602,454
5. | Other operating income
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Other operating income | 620,802 | 234,731
| In the current year, other operating income relates to intercompany recharges and asset sales.
6. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Exchange differences | 7,063 | 18,185
| Depreciation of owned tangible fixed assets owned | 370,820 | 526,080
| Depreciation of tangible fixed assets held under finance leases | 115,981 | 164,333
| Amortisation | 334,179 | 286,990
| Operating lease charges | 913,786 | 810,145
Page 26
CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
7. | Auditors' remuneration
| During the year, the Company obtained the following services from the Company's auditors:
|  |  |  |  | 2025
|  |  |  |  | £
| Fees payable to the Company's auditors for the audit of the Company's financial statements | 34,000
8. | Employees
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Wages and salaries | 4,461,434 | 4,322,325
| Social security costs | 434,391 | 388,242
| Cost of defined contribution scheme | 84,974 | 105,242
|  | 4,980,799 | 4,815,809
| The average monthly number of employees during the year was as follows:
|  |  | 2025 | 2024
|  |  | No. | No.
|  | Employees | 147 | 140
9. | Director's remuneration
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Director's emoluments | 114,713 | 109,950
| Company contributions to defined contribution pension schemes | 3,522 | 3,522
|  | 118,235 | 113,472
| During the year retirement benefits were accruing to 1 director (2024 - 1) in respect of defined contribution pension schemes.
Page 27
CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
10. | Interest receivable
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Interest receivable | 1,154 | 4,376
11. | Interest payable and similar expenses
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Bank interest payable | 45,889 | 100,641
| Finance leases and hire purchase contracts | 58,729 | 32,575
|  | 104,618 | 133,216
12. | Taxation
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 25,422 | -
|  | 25,422 | -
| Total current tax | 25,422 | -
| Deferred tax |  |
| Origination and reversal of timing differences | 178,126 | -
| Total deferred tax | 178,126 | -
|  | 203,548 | -
Page 28
CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 12.Taxation (continued)
| Factors affecting tax charge for the year
| The tax assessed for the year is higher than (2024 - the same as) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 169,044 | 190,646
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%) | 42,261 | 47,662
| Effects of: |  |
| Fixed asset differences | 33,496 | (50,736)
| Expenses not deductible for tax purposes | 50,173 | 4,665
| Other permanent differences | (674) | (1,591)
| Surrender of tax losses for R&D tax credit | 17,481 | -
| Remeasurement of deferred tax for changes in tax rates | 60,811 | -
| Total tax charge for the year | 203,548 | -
| Factors that may affect future tax charges
There were no factors that may affect future tax charges. Page 29
CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
13. | Intangible assets
|  | Website | Development expenditure | Trademarks | Total
|  | £ | £ | £ | £
| Cost |  |  |  |
| At 1 April 2024 | 3,247 | 1,509,540 | 158,069 | 1,670,856
| Additions | - | 270,192 | 21,667 | 291,859
| At 31 March 2025 | 3,247 | 1,779,732 | 179,736 | 1,962,715
| Amortisation |  |  |  |
| At 1 April 2024 | 1,950 | 917,556 | 40,279 | 959,785
| Amortisation charge | 650 | 316,916 | 17,237 | 334,803
| At 31 March 2025 | 2,600 | 1,234,472 | 57,516 | 1,294,588
| Net book value |  |  |  |
| At 31 March 2025 | 647 | 545,260 | 122,220 | 668,127
| At 31 March 2024 | 1,297 | 591,984 | 117,790 | 711,071
Page 30
CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
14. | Tangible fixed assets
|  | Plant and machinery | Fixtures and fittings | Computer equipment | Purchase premium | Restoration costs | Total
|  | £ | £ | £ | £ | £ | £
| Cost |  |  |  |  |  |
| At 1 April 2024 | 1,245,563 | 1,751,551 | 170,102 | 220,000 | 423,100 | 3,810,316
| Additions | 188,942 | 340,440 | 14,941 | - | 48,400 | 592,723
| At 31 March 2025 | 1,434,505 | 2,091,991 | 185,043 | 220,000 | 471,500 | 4,403,039
| Depreciation |  |  |  |  |  |
| At 1 April 2024 | 764,138 | 1,258,713 | 113,095 | 199,096 | 147,161 | 2,482,203
| Depreciation charge | 152,743 | 254,811 | 19,583 | 3,333 | 58,133 | 488,603
| At 31 March 2025 | 916,881 | 1,513,524 | 132,678 | 202,429 | 205,294 | 2,970,806
| Net book value |  |  |  |  |  |
| At 31 March 2025 | 517,624 | 578,467 | 52,365 | 17,571 | 266,206 | 1,432,233
| At 31 March 2024 | 481,425 | 492,838 | 57,007 | 20,904 | 275,939 | 1,328,113
| The net book value of plant and machinery includes £383,008 (2024: £334,042) in respect of assets held under finance leases and hire purchase contracts.
Page 31
CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
15. | Fixed asset investments
|  | Investments in subsidiary companies
|  | £
| Cost |
| At 1 April 2024 | 4
| At 31 March 2025 | 4
| Subsidiary undertakings
| The following were subsidiary undertakings of the Company:
| Name | Registered office | Principal activity | Class of shares | Holding
| Cubitts King's Cross Limited | The Brewery Building, 55-61 Brewery Road, London, England, N7 9QH | Non-trading entity | Ordinary | 100%
| Cubitts Southwark Limited | The Brewery Building, 55-61 Brewery Road, London, England, N7 9QH | Dormant entity | Ordinary | 100%
| Cubitts St James's Limited | The Brewery Building, 55-61 Brewery Road, London, England, N7 9QH | Dormant entity | Ordinary | 100%
16. | Stocks
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Finished goods and goods for resale | 2,633,837 | 2,607,155
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CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
17. | Debtors
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Trade debtors | 300,417 | 201,523
| Amounts owed by group undertakings | 770,327 | 322
| Other debtors | 304,195 | 295,345
| Prepayments and accrued income | 84,162 | 245,552
|  | 1,459,101 | 742,742
18. | Cash
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Cash at bank and in hand | 575,535 | 487,401
19. | Creditors: Amounts falling due within one year
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Bank loans | 887,161 | 730,160
| Trade creditors | 1,251,688 | 670,210
| Amounts owed to group undertakings | 2,713,345 | 2,711,875
| Other taxation and social security | 964,018 | 477,192
| Obligations under finance lease and hire purchase contracts | 158,870 | 167,122
| Other creditors | 243,304 | 285,469
| Accruals and deferred income | 312,060 | 363,203
|  | 6,530,446 | 5,405,231
| Amounts owed to group undertakings arise from intercompany funding arrangements and are provided on terms equivalent to those that would apply in an arm’s length transaction. The balances are unsecured, non interest bearing, and are repayable on demand.
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CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
20. | Creditors: Amounts falling due after more than one year
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Bank loans | - | 372,673
| Net obligations under finance leases and hire purchase contracts | 274,295 | 326,508
|  | 274,295 | 699,181
21. | Loans
| Analysis of the maturity of loans is given below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Amounts falling due within one year |  |
| Bank loans | 887,161 | 730,160
| Amounts falling due 2-5 years |  |
| Bank loans | - | 372,673
|  | 887,161 | 1,102,833
| The bank loans are secured by fixed charges over the asset of the company. Bank loans comprise of: Trade facility of £528,039 which is repayable within 180 days from the facility draw down date. Interest is payable at the end of the loan period at a rate of 2.8% per annum over the Bank of England Base Rate. The facility is subject to loan covenants being value of stock not exceeding 180 days old shall not be less than equal to 150% of the amount of drawings under the facility. CBILS loan facility of £105,000 and £160,250. The loans are repayable 6 years from the date of inception, being 5 June 2020 and 1 March 2021 respectively. Interest is payable at a rate of 3.99% per annum over the Bank of England Base Rate. The CBIL Loan facility of £160,250 is subject to loan covenants being adjusted net cash from operating activities less dividends, net capital expenditure and taxation for any accounts reference period shall not be less than 110% of existing/proposed bank and non- bank debt repayments and interest paid for that accounting reference period. Term loan facility of £47,336 which is repayable 3 years from the draw down date of 25 October 2022. Interest is at a fixed rate of 6.86% per annum. The loan is subject to monthly capital and interest repayments. Term loan facility of £46,045 which is repayable 3 years from the draw down date of 19 January 2023. Interest is at a fixed rate of 6.98% per annum. The loan is subject to monthly capital and interest repayments. No director guarantees have been provided in relation to these facilities.
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CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
22. | Hire purchase and finance leases
| Minimum lease payments under hire purchase fall due as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Within one year | 158,870 | 167,122
| Between 1-5 years | 274,295 | 326,508
|  | 433,165 | 493,630
23. | Deferred taxation
|  | 2025
|  | £
| Charged to profit or loss | (178,126)
| At end of year | (178,126)
| The deferred taxation balance is made up as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Fixed asset timing differences | (191,991) | -
| Short term timing differences | 13,865 | -
|  | (178,126) | -
Page 35
CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
24. | Provisions
|  | Property restoration provision
|  | £
| At 1 April 2024 | 423,100
| Movement | 48,400
| At 31 March 2025 | 471,500
| The property restoration provision relates to the Company's leased properties. The provision relates to costs expected to be incurred to return leased properties in a certain condition constituting an obligating event.
25. | Share capital
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 252,997 (2024 - 252,997) Ordinary shares of £1.00 each | 252,997 | 252,997
26. | Reserves
Profit and loss account Profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments. Page 36
CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
27. | Share-based payments
| Under the Enterprise Management Incentive Scheme ("EMI") plan, share options are granted to the employees of the company and entitles them to subscribe for shares in the parent company according to the terms of the plan. The scheme is equity settled and options vest during the time of employment. At the termination of employment all unvested Options lapse. If options remain unexercised after a period of 10 years from the date of grant, the options expire. Furthermore, options are forfeited if the employee leaves the Company before they become entitled to exercise the share options.
|  | Weighted average exercise price (pence) 2025 | Number 2025 | Weighted average exercise price (pence) 2024 | Number 2024
| Outstanding at the beginning of the year | 0.26 | 52,141 | 0.38 | 35,660
| Granted during the year |  | - | 0.001 | 16,481
| Lapsed in the year | 0.001 | (12,500) | 0.001 | -
| Weighted average price outstanding | 0.34 | 39,641 | 0.34 | 52,141
| The weighted average fair value of options granted in the year was determined using the Black-Scholes option pricing model. The Black-Scholes model is considered to apply the most appropriate valuation method due to the relatively short contractual lives of the options and the requirement to exercise within a short period after the employee becomes entitled to the shares (the “vesting date”). The expected life used in the model has been adjusted, based on management’s best estimate, for the effect of non-transferability, exercise restrictions, and behavioural considerations. No charge has been recognised in the Statement of Comprehensive Income for the year ended 31 March 2025 (2024: £Nil), as the share options are subject to a vesting condition dependent on the sale of the business and, as at the reporting date, management considers it not probable that this condition will be met.
28. | Financial commitments, guarantees and contingent liabilities
A composite guarantee has been given to the company's lenders in respect of debt or liabilities owing to the lenders. At the balance sheet date, the company's indebtedness to its lenders was £887,161 (2024: £1,102,833). Page 37
CUBITTS KX LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025
29. | Pension commitments
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £434,391 (2024: £388,242). Contributions totalling £17,381 (2024: £22,879) were payable to the fund at the reporting date and are included in creditors.
30. | Commitments under operating leases
| At 31 March 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Not later than 1 year | 787,000 | 817,464
| Later than 1 year and not later than 5 years | 2,913,131 | 2,303,817
| Later than 5 years | 610,819 | 1,132,074
|  | 4,310,950 | 4,253,355
31. | Parent company and controlling party
The parent and ultimate controlling party is Cubitts KX Group Ltd which is registered at The Brewery Building, 55-61 Brewery Road, London, England, N7 9QH. The results of the company are consolidated in Cubitts KX Group Limited financial statements. The consolidated financial statements for Cubitts KX Group Limited are publicly available and can be obtained from Companies House (England and Wales) as well as from the registered office address of the parent company. The ultimate controlling party is T. E. Broughton by virtue of his controlling interest in the voting rights of the share capital of Cubitts KX Group Limited.
Page 38