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Registered number:
FOR THE YEAR ENDED 31 MARCH 2025
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CUBITTS KX GROUP LTD
COMPANY INFORMATION
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CUBITTS KX GROUP LTD
CONTENTS
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CUBITTS KX GROUP LTD
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The Directors of Cubitts KX Group Ltd (“the Group Entity” and, together with its subsidiaries, “the Group”) present the consolidated strategic report and audited financial statements of the Group for the year ended 31 March 2025. The Cubitts Group operates through its principal trading entity, Cubitts KX Ltd and other supporting subsidiaries, specialising in the design, manufacture and retail of spectacles, sunglasses and related accessories. This report provides a comprehensive overview of the Group’s performance, strategic priorities, and key risks during the financial year.
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CUBITTS KX GROUP LTD
GROUP STRATEGIC REPORT (CONTINUED)
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 +15%.
∙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.
Strategic Priorities Our strategic priorities remain broadly unchanged, although their execution becomes incrementally less simple as the business grows.
∙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.
∙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.
∙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.
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CUBITTS KX GROUP LTD
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
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’).
Financial key performance indicators
The Directors use the following KPIs to manage the business:
∙Turnover: £16,791,495 (2024:£14,602,454)
∙Growth in turnover: +15% (2024- +18%)
∙EBITDA: £330,243 (2024: £1,104,257)
∙Cash: £645,860 (2024: £843,822)
∙Net promoter score: 85
∙Carbon per frame sold: 7kg
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CUBITTS KX GROUP LTD
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
This report was approved by the board and signed on its behalf.
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CUBITTS KX GROUP LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present their report and the financial statements for the year ended 31 March 2025.
Principal activity
The principal activity of the Group continued to be that of designer, manufacturer and retailer of spectacles, sunglasses and associated accessories and sundries.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group'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 Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group 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 £967,077 (2024 - loss £15,242).
The directors who served during the year were:
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CUBITTS KX GROUP LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
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. 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 directors have assessed the financial position of Cubitts KX Group 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 directors have a reasonable expectation that the Group and 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 directors reviewed forecasted EBITDA, cash flow projections, and key financial assumptions and considered whether any material uncertainties exist that could cast significant doubt on the Group’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 Group remains EBITDA profitable. Additionally, the directors are confident in the Group’s ability to secure external funding if required, either to support growth or strengthen its financial position. Based on the Group’s financial position, projections, and available financing options, the directors conclude that Cubitts KX Group Limited remains a going concern and have adopted this basis in preparing the financial statements.
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CUBITTS KX GROUP LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
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 one of 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.
This report was approved by the board and signed on its behalf.
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CUBITTS KX GROUP LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CUBITTS KX GROUP LTD
We have audited the financial statements of Cubitts KX Group Ltd (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2025, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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CUBITTS KX GROUP LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CUBITTS KX GROUP LTD (CONTINUED)
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and parent 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;
∙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.
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CUBITTS KX GROUP LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CUBITTS KX GROUP LTD (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 Group 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.
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CUBITTS KX GROUP LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CUBITTS KX GROUP LTD (CONTINUED)
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.
for and on behalf of
10 Queen Street Place
EC4R 1AG
12 May 2026
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CUBITTS KX GROUP LTD
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
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CUBITTS KX GROUP LTD
REGISTERED NUMBER: 09180837
CONSOLIDATED 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:
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CUBITTS KX GROUP LTD
REGISTERED NUMBER: 09180837
COMPANY 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 20 to 46 form part of these financial statements.
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CUBITTS KX GROUP LTD
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
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CUBITTS KX GROUP LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
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CUBITTS KX GROUP LTD
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025
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CUBITTS KX GROUP LTD
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
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CUBITTS KX GROUP LTD
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2025
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CUBITTS KX GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Cubitts KX Group Ltd is a private company (registered number: 09180837), 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 activities of the group are detailed in the Directors Report on page 3.
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 Group. 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 Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
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CUBITTS KX GROUP LTD
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 directors have a reasonable expectation that the group will continue in operational existence for the foreseeable future.
The Group made a loss for the year of (967,077) (2024: loss of £(15,242)) and as at the balance sheet date had net assets of 894,517 (2024: £1,874,814). The directors have assessed the financial position of Group, 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 directors have a reasonable expectation that the group 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 directors reviewed forecasted EBITDA, cash flow projections, and key financial assumptions and considered whether any material uncertainties exist that could cast significant doubt on the group’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 Group remains EBITDA profitable. Additionally, the directors are confident in the Group’s ability to secure external funding if required, either to support growth or strengthen its financial position. The directors continuously assess 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 Group meets its funding requirements through working capital, bank loans and other loans. The directors have prepared cash flow projections for the group’s future cash requirements, taking account of reasonably possible downsides, mitigating actions and further funding requirements, and is satisfied that the group 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 directors are confident that they have the ability to respond effectively to continued uncertainty and therefore, the directors believe that the Group 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.
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CUBITTS KX GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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CUBITTS KX GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Revenue is recognised by the Group 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 Group 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 23
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CUBITTS KX GROUP LTD
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 24
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CUBITTS KX GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Group keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
Page 25
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CUBITTS KX GROUP LTD
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 directors consider 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 26
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CUBITTS KX GROUP LTD
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 Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Group 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 27
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CUBITTS KX GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Group's Statement of Financial Position when the Group 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 debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
Page 28
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CUBITTS KX GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Equity instruments issued by the Group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Group.
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.
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 29
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CUBITTS KX GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.Accounting policies (continued)
Provisions are recognised when the Group 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. 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 Group 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 settled share options expected to vest is zero. As a result, not charge has been recognised. 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 reviews 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.
Page 30
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CUBITTS KX GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
3.Judgements in applying accounting policies (continued)
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 Group'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 31
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CUBITTS KX GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Analysis of turnover by country of destination:
Page 32
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CUBITTS KX GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 33
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CUBITTS KX GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 34
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CUBITTS KX GROUP LTD
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.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The loss after tax of the parent Company for the year was £
Page 35
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CUBITTS KX GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 36
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CUBITTS KX GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 37
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CUBITTS KX GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 38
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CUBITTS KX GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 39
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CUBITTS KX GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 40
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CUBITTS KX GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 41
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CUBITTS KX GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
22.Loans (continued)
Page 42
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CUBITTS KX GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 43
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CUBITTS KX GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Share premium account
Foreign exchange reserve
Profit and loss account
Page 44
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CUBITTS KX GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group 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.
Page 45
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CUBITTS KX GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
31.Financial commitments, guarantees and contingent liabilities
A composite guarantee has been given to the Group'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).
The ultimate controlling party is T. E. Broughton by virtue of his controlling interest in the voting rights of
the share capital of the Company.
Page 46
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