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Registration number: 08647261 (England & Wales)

Clubsport Skechers Limited
Annual Report and Financial Statements
for the Year Ended 31 December 2025

Clubsport Skechers Limited

Contents

Company Information | 1
Strategic Report | 2
Directors' Report | 3 to 4
Statement of Directors' Responsibilities | 5
Independent Auditor's Report | 6 to 8
Profit and Loss Account | 9
Balance Sheet | 10
Statement of Changes in Equity | 11
Statement of Cash Flows | 12
Notes to the Financial Statements | 13 to 22

Clubsport Skechers Limited

Company Information

Directors | C R A Crook S A Hussey S P Mifflin M T Powell

Company secretary | G M Hussey

Registered office | 1-3 Church Street Kington Herefordshire HR5 3AZ

Auditors | Hazlewoods LLP Staverton Court Staverton Cheltenham GL51 0UX

Clubsport Skechers Limited

Strategic Report for the Year Ended 31 December 2025

The directors present their strategic report for the year ended 31 December 2025.

Principal activity

The principal activity of the company is retailing of shoes.

Fair review of the business

The results for the year which are set out in the profit and loss account show turnover of £27,696,404 (2024 - £23,904,160) and an operating profit of £1,693,091 (2024 - £2,093,027). At 31 December 2025 the company had net assets of £5,636,344 (2024 - £5,459,546). The directors consider the performance for the year and the financial position at the year end to be satisfactory.

The company continues to invest into new shops and opened three new stores during the year.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs | Unit | 2025 | 2024
Turnover | £'000s | 27,696 | 23,904
Gross profit margin | % | 29.78 | 32.83
Refunds | £'000s | 890 | 975

Conversion rate is a measurement of converting interest to sales. The conversion rate for the current year was 12.98% compared to 11.80% in the prior year.
The mystery shopper survey results measures staff and store responsiveness to customers. The target rate is 85% with a rate of 88% being achieved in the current year compared to 86% in the prior year.

Principal risks and uncertainties

In assessing the key business risks of the company, the directors consider that these relate to employee recruitment and retention, product availability, energy costs and the economic state of the country.

Employee recruitment and retention
The company performance is dependent on its employees, managers and directors. The development of a skilled workforce is a key element in their retention and the success of the business.
Product availability
The introduction of new products is key to maintaining and growing the business. Management continually coordinate with the main supplier to ensure access to current and new stock is maintained throughout the network of stores.
Energy costs and the economic state of the country
The cost of living crisis impacts on both customer spending and the company's overhead base. Management constantly monitor running costs, including energy costs, with a view to agreeing competitive prices. This enables the business to invest and maintain its stores at an efficient level.

Approved by the Board on 18 June 2026 and signed on its behalf by:

S A Hussey
Director

Clubsport Skechers Limited

Directors' Report for the Year Ended 31 December 2025

The directors present their report and the financial statements for the year ended 31 December 2025.

Directors of the company

The directors who held office during the year were as follows:

C R A Crook

S A Hussey

S P Mifflin

M T Powell

Dividends
The total distribution of dividends for the year ended 31 December 2025 was £1,000,000 (2024: £400,000).

Employment of disabled persons

The company gives full consideration to applications for employment for disabled persons where the requirements of the job can be adequately fulfilled by a disabled person. Where existing employees become disabled, it is the company's policy wherever practicable to provide continuing employment under normal terms and conditions with any support needed and to provide training and career development and promotion to disabled employees wherever appropriate.

Going concern

The financial statements have been prepared on a going concern basis, which assumes that the company will be able to continue to operate for the foreseeable future.
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources available to continue in operational existence for at least 12 months from the date of approval of the financial statements.
On this basis, the directors consider it appropriate to prepare the financial statements on a going concern basis.

Employee involvement

The company is committed to equality of opportunity for all current and prospective colleagues regardless of age, disability, race, religion or belief, sexual orientation, pregnancy and maternity, marriage and civil partnership and gender reassignment. We are an equal opportunity employer and support a culture of diversity and inclusion.
The directors engage with employees and have regard to employee interest on an ongoing basis. The emphasis is on keeping open lines of communication, so that employees can be consulted on a regular basis, and their views taken into account in decision making.

Future developments

During 2025, the company opened four new stores in Colchester, Swansea, Leamington Spa, and the first location in Scotland at Sterling Mills. Trading conditions were challenging throughout the year, with footfall and full-price sales impacted by significant cost-of-living increases, resulting in reduced consumer discretionary spend, particularly on luxury items.
Additionally, the company's buying strategy did not perform as intended. The company invested more heavily in footwear than in previous years, only to face strong price competition from major high-street retailers offering the same products at lower prices. This led to increased price matching, reduced levels of product newness, and ultimately put pressure on margin and limited our flexibility within the marketplace.
The company plans to open four further stores in Worthing, Salisbury, Bishops Stortford, and Bury St Edmunds, with plans for a significant up size and relocation of the company's Plymouth store.

Financial instruments

Objectives and policies

The company's financial instruments comprise cash and liquid resources, and various other items such as trade creditors that arise directly from its operations. The main purpose of these financial instruments is to finance the operations of the company.

Clubsport Skechers Limited

Directors' Report for the Year Ended 31 December 2025

Price risk, credit risk, liquidity risk and cash flow risk

Cash flow risk
Cash flow risk is the risk that inflows and outflows of cash and cash equivalents will not be sufficient to finance day-to-day operations of the company. The directors prepare forecasts and constantly monitor cash flows to ensure that the company has sufficient liquid resources to meet is operational requirements.
Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss to the other party by failing to discharge an obligation. The company does not sell on credit meaning its exposure to credit risk is limited.
Liquidity risk
Liquidity risk is the risk that the entity will encounter difficulty in meeting obligations associated with its financial liabilities. The company has no borrowings with external parties meaning that it's exposure to liquidity is limited but ensures that the management of payables and cash are constantly monitored against trading results to ensure it can meet its current obligations as they fall due.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

Hazlewoods LLP have expressed their willingness to continue in office.

Approved by the Board on 18 June 2026 and signed on its behalf by:

S A Hussey
Director

Clubsport Skechers Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

• | select suitable accounting policies and apply them consistently;

• | make judgements and accounting estimates that are reasonable and prudent;

• | state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Clubsport Skechers Limited

Independent Auditor's Report to the Members of Clubsport Skechers Limited

Opinion

We have audited the financial statements of Clubsport Skechers Limited (the 'company') for the year ended 31 December 2025, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• | give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended;
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• | have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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.

Other information

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

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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• | the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• | the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Clubsport Skechers Limited

Independent Auditor's Report to the Members of Clubsport Skechers Limited

• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
• | the financial statements are not in agreement with the accounting records and returns; or
• | certain disclosures of directors' remuneration specified by law are not made; or
• | we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

Extent to which the audit was capable of detecting irregularities, including fraud
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:
We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits conducted in accordance with ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:

• | reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

• | performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;

• | enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations.

Clubsport Skechers Limited

Independent Auditor's Report to the Members of Clubsport Skechers Limited

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of this 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 auditor’s 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.

Ryan Hancock (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor
Staverton Court
Staverton
Cheltenham
GL51 0UX

18 June 2026

Clubsport Skechers Limited

Profit and Loss Account for the Year Ended 31 December 2025

| Note | 2025 £ | 2024 £
Turnover | 3 | 27,696,404 | 23,904,160
Cost of sales |  | (19,402,401) | (16,056,243)
Gross profit |  | 8,294,003 | 7,847,917
Administrative expenses |  | (6,663,365) | (5,781,007)
Other operating income | 4 | 62,453 | 26,117
Operating profit | 5 | 1,693,091 | 2,093,027
Other interest receivable and similar income | 6 | 163,869 | 154,586
Profit before tax |  | 1,856,960 | 2,247,613
Tax on profit | 9 | (680,162) | (631,608)
Profit for the financial year |  | 1,176,798 | 1,616,005

The above results were derived from continuing operations.

The company has no other comprehensive income for the year.

Clubsport Skechers Limited

(Registration number: 08647261)
Balance Sheet as at 31 December 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Tangible assets | 10 | 2,776,594 | 2,537,577
Current assets |  |  |
Stocks | 11 | 6,273,873 | 4,559,069
Debtors | 12 | 998,547 | 856,617
Cash at bank and in hand | 13 | 3,244,637 | 4,844,533
|  | 10,517,057 | 10,260,219
Creditors: Amounts falling due within one year | 14 | (7,043,415) | (6,792,344)
Net current assets |  | 3,473,642 | 3,467,875
Total assets less current liabilities |  | 6,250,236 | 6,005,452
Provisions for liabilities | 15 | (613,892) | (545,906)
Net assets |  | 5,636,344 | 5,459,546
Capital and reserves |  |  |
Called up share capital | 17 | 1,000 | 1,000
Retained earnings | 18 | 5,635,344 | 5,458,546
Shareholders' funds |  | 5,636,344 | 5,459,546

Approved and authorised by the Board on 18 June 2026 and signed on its behalf by:

S A Hussey
Director

Clubsport Skechers Limited

Statement of Changes in Equity for the Year Ended 31 December 2025

| Share capital £ | Retained earnings £ | Total £
At 1 January 2024 | 1,000 | 4,242,541 | 4,243,541
Profit for the year | - | 1,616,005 | 1,616,005
Dividends | - | (400,000) | (400,000)
At 31 December 2024 | 1,000 | 5,458,546 | 5,459,546

| Share capital £ | Retained earnings £ | Total £
At 1 January 2025 | 1,000 | 5,458,546 | 5,459,546
Profit for the year | - | 1,176,798 | 1,176,798
Dividends | - | (1,000,000) | (1,000,000)
At 31 December 2025 | 1,000 | 5,635,344 | 5,636,344

Clubsport Skechers Limited

Statement of Cash Flows for the Year Ended 31 December 2025

| Note | 2025 £ | 2024 £
Cash flows from operating activities
Profit for the year |  | 1,176,798 | 1,616,005
Adjustments to cash flows from non-cash items |  |  |
Depreciation and amortisation | 5 | 539,366 | 446,325
Loss on disposal of tangible assets |  | - | 226
Finance income | 6 | (163,869) | (154,586)
Income tax expense | 9 | 680,162 | 631,608
|  | 2,232,457 | 2,539,578
Working capital adjustments |  |  |
Increase in stocks |  | (1,714,804) | (464,298)
Increase in trade debtors |  | (236,022) | (143,826)
Increase in trade creditors |  | 127,714 | 901,424
Increase in provisions |  | 9,260 | 160,200
Cash generated from operations |  | 418,605 | 2,993,078
Income taxes paid |  | (403,985) | (914,635)
Net cash flow from operating activities |  | 14,620 | 2,078,443
Cash flows from investing activities |  |  |
Interest received |  | 163,869 | 154,586
Acquisitions of tangible assets |  | (790,164) | (811,315)
Proceeds from sale of tangible assets |  | 11,779 | -
Net cash flows from investing activities |  | (614,516) | (656,729)
Cash flows from financing activities |  |  |
Repayment of other borrowing |  | - | 183
Dividends paid |  | (1,000,000) | (400,000)
Net cash flows from financing activities |  | (1,000,000) | (399,817)
Net (decrease)/increase in cash and cash equivalents |  | (1,599,896) | 1,021,897
Cash and cash equivalents at 1 January |  | 4,844,533 | 3,822,636
Cash and cash equivalents at 31 December | 13 | 3,244,637 | 4,844,533

Clubsport Skechers Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

| 1 | General information

The company is a private company limited by share capital, incorporated in the United Kingdom.

The address of its registered office is:
1-3 Church Street
Kington
Herefordshire
HR5 3AZ
England

| 2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

The financial statements have been prepared on a going concern basis, which assumes that the company will be able to continue to operate for the foreseeable future.
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

Management have estimated the provision for dilapidations on a lease by lease basis, which is based on the directors best estimate of the likely committed cash flow. The carrying amount is £169,460 (2024 - £160,200).

Clubsport Skechers Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

| 2 | Accounting policies (continued)

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class | Depreciation method and rate
Improvements to property | Over the term of the lease
Furniture, fittings and equipment | 15%, 20% or 33% of cost
Motor vehicles | 25% reducing balance

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Clubsport Skechers Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

| 2 | Accounting policies (continued)

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out method.
At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Clubsport Skechers Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

| 2 | Accounting policies (continued)

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Clubsport Skechers Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

| 3 | Turnover

The analysis of the company's turnover for the year from continuing operations which all arises in the UK is as follows:

| 2025 £ | 2024 £
Sale of goods | 27,696,404 | 23,904,160

| 4 | Other operating income

The analysis of the company's other operating income for the year is as follows:

| 2025 £ | 2024 £
Management charges receivable | 44,830 | 7,988
Miscellaneous other operating income | 17,623 | 18,129
| 62,453 | 26,117

| 5 | Operating profit

Arrived at after charging

| 2025 £ | 2024 £
Depreciation expense | 539,366 | 446,325
Operating lease expense - property | 2,297,046 | 1,710,806
Operating lease expense - plant and machinery | 6,990 | 3,174
Operating lease expense - other | 251 | -

| 6 | Other interest receivable and similar income

| 2025 £ | 2024 £
Interest income on bank deposits | 163,869 | 154,586

| 7 | Staff costs

The aggregate payroll costs were as follows:

| 2025 £ | 2024 £
Wages and salaries | 6,395,917 | 5,145,908
Social security costs | 594,148 | 339,241
Pension costs, defined contribution scheme | 108,163 | 82,378
| 7,098,228 | 5,567,527

Clubsport Skechers Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

| 7 | Staff costs (continued)

The average number of persons employed by the company during the year, analysed by category was as follows:

| 2025 No. | 2024 No.
Retail Management | 179 | 157
Sales Assistants | 210 | 172
Administration and support | 11 | 7
| 400 | 336

Directors' remuneration
The directors' remuneration is borne by a company under common control and recharged to Clubsport Skechers Limited.

| 8 | Auditors' remuneration

| 2025 £ | 2024 £
Audit of the financial statements | 13,125 | 12,500

| 9 | Taxation

Tax charged/(credited) in the profit and loss account

| 2025 £ | 2024 £
Current taxation |  |
UK corporation tax | 457,238 | 498,940
UK corporation tax adjustment to prior periods | 164,198 | 43,227
| 621,436 | 542,167
Deferred taxation |  |
Arising from origination and reversal of timing differences | 58,726 | 89,441
Tax expense in the profit and loss account | 680,162 | 631,608

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2024 - higher than the standard rate of corporation tax in the UK) of 25% (2024 - 25%).
The differences are reconciled below:

| 2025 £ | 2024 £
Profit before tax | 1,856,960 | 2,247,613
Corporation tax at standard rate | 464,240 | 561,903
Increase in UK and foreign current tax from adjustment for prior periods | 164,198 | 43,227
Tax increase from effect of capital allowances and depreciation | 46,533 | 26,478
Effect of expense not deductible in determining taxable profit (tax loss) | 4,540 | -
Deferred tax expense from unrecognised temporary difference from a prior period | 651 | -
Total tax charge | 680,162 | 631,608

Clubsport Skechers Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

| 9 | Taxation (continued)

Deferred tax

Deferred tax assets and liabilities

2025 | Liability £
Fixed asset timing differences | 446,661
Short term timing differences | (2,229)
| 444,432

2024 | Liability £
Fixed asset timing differences | 387,491
Short term timing differences | (1,785)
| 385,706

| 10 | Tangible assets

| Improvements to property £ | Furniture, fittings and equipment £ | Motor vehicles £ | Total £
Cost or valuation
At 1 January 2025 | 2,510,158 | 1,299,867 | 187,064 | 3,997,089
Additions | 445,281 | 284,528 | 60,355 | 790,164
Disposals | - | (129) | (37,515) | (37,644)
At 31 December 2025 | 2,955,439 | 1,584,266 | 209,904 | 4,749,609
Depreciation
At 1 January 2025 | 663,622 | 727,024 | 68,868 | 1,459,514
Charge for the year | 273,132 | 231,529 | 34,705 | 539,366
Eliminated on disposal | - | - | (25,865) | (25,865)
At 31 December 2025 | 936,754 | 958,553 | 77,708 | 1,973,015
Carrying amount
At 31 December 2025 | 2,018,685 | 625,713 | 132,196 | 2,776,594
At 31 December 2024 | 1,846,536 | 572,843 | 118,198 | 2,537,577

| 11 | Stocks

| 2025 £ | 2024 £
Goods for resale | 6,273,873 | 4,559,069

Clubsport Skechers Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

| 12 | Debtors

| 2025 £ | 2024 £
Trade debtors | 10,802 | 861
Other debtors | 168,097 | 131,363
Prepayments | 819,648 | 630,301
Corporation tax asset | - | 94,092
| 998,547 | 856,617

| 13 | Cash and cash equivalents

| 2025 £ | 2024 £
Cash at bank | 3,244,637 | 4,844,533

| 14 | Creditors

| 2025 £ | 2024 £
Due within one year |  |
Trade creditors | 1,816,897 | 2,166,083
Social security and other taxes | 623,323 | 401,814
Outstanding defined contribution pension costs | 20,754 | 16,633
Directors' loan accounts | 2,848 | 3,031
Other payables | 3,880,035 | 3,540,293
Accruals | 576,201 | 664,490
Corporation tax liability | 123,357 | -
| 7,043,415 | 6,792,344

| 15 | Deferred tax and other provisions

| Deferred tax £ | Dilapidations provisions £ | Total £
At 1 January 2025 | 385,706 | 160,200 | 545,906
Additional provisions | 58,726 | 9,260 | 67,986
At 31 December 2025 | 444,432 | 169,460 | 613,892

A provision for dilapidations is calculated based on the historical costs incurred in restoring a property to its original condition upon lease termination.

| 16 | Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £108,163 (2024 - £82,378).
Contributions totalling £20,754 (2024 - £16,633) were payable to the scheme at the end of the year and are included in creditors.

Clubsport Skechers Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

| 17 | Share capital

Allotted, called up and fully paid shares

| 2025 | 2024
| No. | £ | No. | £
Ordinary shares of £1 each | 1,000 | 1,000 | 1,000 | 1,000

| 18 | Reserves

Called up share capital

Represents the issued equity share capital of the company.

Retained earnings

Represents cumulative profits or losses, net of dividends paid and other adjustments.

| 19 | Obligations under leases

Operating leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 2,414,708 | 1,929,312
Later than one year and not later than five years | 5,015,027 | 3,011,683
Later than five years | 249,792 | 192,000
| 7,679,527 | 5,132,995

The amount of non-cancellable operating lease payments recognised as an expense during the year was £2,304,287 (2024 - £2,145,219).

| 20 | Commitments

Capital commitments

The total amount contracted for but not provided in the financial statements was £102,150 (2024 - £Nil) relating to leasehold improvements.

| 21 | Dividends

| 2025 £ | 2024 £
Dividends paid | 1,000,000 | 400,000

Clubsport Skechers Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

| 22 | Related party transactions

Summary of transactions with key management

Dividends of £997,000 (2024 - £398,800) were declared and paid to the directors during the year ended 31 December 2025.

Summary of transactions with companies under common control

During the year ended 31 December 2025, the company incurred management charges of £927,916 (2024 - £988,490) from and recharged wages and carriage cost £44,830 (2024 - £7,988) to companies under common control.
At 31 December 2025, balances due to companies under common control were £nil (2024 - £4,232).

| 23 | Analysis of changes in net debt

| At 1 January 2025 £ | Cash flow £ | At 31 December 2025 £
Cash at bank | 4,844,533 | (1,599,896) | 3,244,637
Net Debt | 4,844,533 | (1,599,896) | 3,244,637

| 24 | Control

The company is controlled by S A Hussey