|
Registered number:
FOR THE YEAR ENDED 31 MARCH 2025
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CUBITTS KX LIMITED
COMPANY INFORMATION
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CUBITTS KX LIMITED
CONTENTS
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CUBITTS KX LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
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.
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.
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
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.
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.
The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.
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.
The loss for the year, after taxation, amounted to £(34,504) (2024 - profit £190,646).
The director who served during the year was:
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.
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.
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.
Page 6
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CUBITTS KX LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CUBITTS KX LIMITED
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).
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.
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)
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.
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.
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.
Page 8
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CUBITTS KX LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CUBITTS KX LIMITED (CONTINUED)
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.
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)
for and on behalf of
Statutory Auditors
10 Queen Street Place
EC4R 1AG
12 May 2026
Page 10
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CUBITTS KX LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
Page 11
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CUBITTS KX LIMITED
REGISTERED NUMBER: 08254044
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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
Page 13
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CUBITTS KX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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
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)
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)
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.
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.
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)
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.
Page 17
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CUBITTS KX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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.
Page 18
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CUBITTS KX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Page 19
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CUBITTS KX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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 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.
Page 20
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CUBITTS KX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (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:
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.
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.
Page 21
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CUBITTS KX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
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)
payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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.
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.
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.
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)
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.
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. 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)
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: 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
Page 26
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CUBITTS KX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 27
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CUBITTS KX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 28
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CUBITTS KX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
12.Taxation (continued)
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
Page 30
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CUBITTS KX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 31
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CUBITTS KX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 32
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CUBITTS KX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 33
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CUBITTS KX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 34
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CUBITTS KX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 35
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CUBITTS KX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Profit and loss account
Page 36
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
CUBITTS KX LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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
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.
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
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||