Caseware UK (AP4) 2025.0.111 2025.0.111 2025-08-312025-08-31false42false2024-09-01false37false 04794322 2024-09-01 2025-08-31 04794322 2023-09-01 2024-08-31 04794322 2025-08-31 04794322 2024-08-31 04794322 2023-09-01 04794322 c:Director1 2024-09-01 2025-08-31 04794322 c:Director2 2024-09-01 2025-08-31 04794322 c:RegisteredOffice 2024-09-01 2025-08-31 04794322 d:Buildings d:ShortLeaseholdAssets 2024-09-01 2025-08-31 04794322 d:Buildings d:ShortLeaseholdAssets 2025-08-31 04794322 d:Buildings d:ShortLeaseholdAssets 2024-08-31 04794322 d:LandBuildings 2025-08-31 04794322 d:LandBuildings 2024-08-31 04794322 d:PlantMachinery 2024-09-01 2025-08-31 04794322 d:PlantMachinery 2025-08-31 04794322 d:PlantMachinery 2024-08-31 04794322 d:PlantMachinery d:OwnedOrFreeholdAssets 2024-09-01 2025-08-31 04794322 d:FurnitureFittings 2024-09-01 2025-08-31 04794322 d:FurnitureFittings 2025-08-31 04794322 d:FurnitureFittings 2024-08-31 04794322 d:FurnitureFittings d:OwnedOrFreeholdAssets 2024-09-01 2025-08-31 04794322 d:OwnedOrFreeholdAssets 2024-09-01 2025-08-31 04794322 d:CurrentFinancialInstruments 2025-08-31 04794322 d:CurrentFinancialInstruments 2024-08-31 04794322 d:CurrentFinancialInstruments d:WithinOneYear 2025-08-31 04794322 d:CurrentFinancialInstruments d:WithinOneYear 2024-08-31 04794322 d:ReportableOperatingSegment1 2024-09-01 2025-08-31 04794322 d:ReportableOperatingSegment1 2023-09-01 2024-08-31 04794322 d:ReportableOperatingSegment7 2024-09-01 2025-08-31 04794322 d:ReportableOperatingSegment7 2023-09-01 2024-08-31 04794322 e:UnitedKingdom 2024-09-01 2025-08-31 04794322 e:UnitedKingdom 2023-09-01 2024-08-31 04794322 e:RestWorldOutsideUK 2024-09-01 2025-08-31 04794322 e:RestWorldOutsideUK 2023-09-01 2024-08-31 04794322 d:UKTax 2024-09-01 2025-08-31 04794322 d:UKTax 2023-09-01 2024-08-31 04794322 d:ForeignTax 2024-09-01 2025-08-31 04794322 d:ForeignTax 2023-09-01 2024-08-31 04794322 d:ShareCapital 2025-08-31 04794322 d:ShareCapital 2024-08-31 04794322 d:ShareCapital 2023-09-01 04794322 d:SharePremium 2024-09-01 2025-08-31 04794322 d:SharePremium 2025-08-31 04794322 d:SharePremium 2024-08-31 04794322 d:SharePremium 2023-09-01 04794322 d:RetainedEarningsAccumulatedLosses 2024-09-01 2025-08-31 04794322 d:RetainedEarningsAccumulatedLosses 2025-08-31 04794322 d:RetainedEarningsAccumulatedLosses 2023-09-01 2024-08-31 04794322 d:RetainedEarningsAccumulatedLosses 2024-08-31 04794322 d:RetainedEarningsAccumulatedLosses 2023-09-01 04794322 c:OrdinaryShareClass1 2024-09-01 2025-08-31 04794322 c:OrdinaryShareClass1 2025-08-31 04794322 c:OrdinaryShareClass1 2024-08-31 04794322 c:OrdinaryShareClass2 2024-09-01 2025-08-31 04794322 c:OrdinaryShareClass2 2025-08-31 04794322 c:OrdinaryShareClass2 2024-08-31 04794322 c:FRS102 2024-09-01 2025-08-31 04794322 c:Audited 2024-09-01 2025-08-31 04794322 c:FullAccounts 2024-09-01 2025-08-31 04794322 c:PrivateLimitedCompanyLtd 2024-09-01 2025-08-31 04794322 d:Subsidiary1 2024-09-01 2025-08-31 04794322 d:Subsidiary1 1 2024-09-01 2025-08-31 04794322 d:Subsidiary2 2024-09-01 2025-08-31 04794322 d:Subsidiary2 1 2024-09-01 2025-08-31 04794322 d:WithinOneYear 2025-08-31 04794322 d:WithinOneYear 2024-08-31 04794322 d:BetweenOneFiveYears 2025-08-31 04794322 d:BetweenOneFiveYears 2024-08-31 04794322 d:MoreThanFiveYears 2025-08-31 04794322 d:MoreThanFiveYears 2024-08-31 04794322 2 2024-09-01 2025-08-31 04794322 6 2024-09-01 2025-08-31 04794322 8 2024-09-01 2025-08-31 04794322 f:PoundSterling 2024-09-01 2025-08-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 04794322










AVALON FASHIONS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

 
AVALON FASHIONS LIMITED
 
 
COMPANY INFORMATION


Directors
M Odabash 
S Ahmad 




Registered number
04794322



Registered office
22 Bruton Street

London

W1J 6QE




Independent auditors
Sumer Auditco Limited

14th Floor

33 Cavendish Square

London

W1G 0PW





 
AVALON FASHIONS LIMITED
 

CONTENTS



Page
Strategic report
 
 
1
Directors' report
 
 
2 - 3
Independent auditors' report
 
 
4 - 7
Profit and loss account
 
 
8
Balance sheet
 
 
9
Statement of changes in equity
 
 
10
Notes to the financial statements
 
 
11 - 25


 
AVALON FASHIONS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2025

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

Business review
 
There have been no major changes in the Company’s core activities in the year under review. Sales were lower compared to 2024 due to the impact of inflation as well as Ukraine war and conflict in the Middle East and we expect that this will continue in 2026.

Principal risks and uncertainties
 
The principal risk facing the Company is its ability to continue designing and selling women's holiday wear which for customers remain attractive and affordable. The performance of economy in general will also remain a risk, particularly amid global economic uncertainty driven by political factors such as rising protectionism. 

Liquidity Risk

The Company has a strong operating cash inflow and manages its cash requirements in order to maximise interest income and minimise interest expense, whilst ensuring the Company has sufficient liquid resources to meet the operating needs of the business.

Credit Risk

Trade debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary.

Foreign Exchange Risk

The Company operates across the world and is exposed to movements in foreign currencies affecting the financial result and the value of Company equity. Foreign exchange risk arises because the amount of local currency paid or received for transactions denominated in foreign currencies may vary due to changes in exchange rates (transaction exposures). Foreign exchange risks arise primarily on transactions that are denominated in USD and EUR. In managing its exposure regarding the fluctuation in foreign currency exchange rates, the Company maintains USD and Euro bank accounts to offset the receipts and payments as far as possible and to minimise the exchange impact.

Financial key performance indicators
 
The key financial performance indicators of the Company are turnover, gross profit and operating profit. A brief analysis of these is shown below:
                                                                      
 2025                    2024              Variance

Turnover                                                      £9,554,793          £10,341,705           -7.6%

Gross Profit                                                 £4,755,864           £5,598,277               15% 

Operating profit                                           £13,964                £570,376              -97.6%

This report was approved by the board on 28 August 2026 and signed on its behalf.


................................................
S Ahmad
Director

Page 1

 
AVALON FASHIONS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2025

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

Principal activity

The principal activity of the company continued to be that of the design, manufacture and distribution of beachwear. 

Directors

The directors who served during the year were:

M Odabash 
S Ahmad 

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the 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 for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £94,970 (2024 - £504,061).

No dividends were paid during the year (2024: Nil). The directors do not recommend payment of a final dividend (2024: £Nil).

Matters covered in the Strategic report

Principal risks and uncertainties, business review and financial key performance indicators  are covered in the Strategic Report.

Page 2

 
AVALON FASHIONS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditorsSumer Auditco Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 28 August 2026 and signed on its behalf.
 





................................................
S Ahmad
Director

Page 3

 
AVALON FASHIONS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AVALON FASHIONS LIMITED
 

Opinion


We have audited the financial statements of Avalon Fashions Limited (the 'Company') for the year ended 31 August 2025, which comprise the Profit and loss account, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 August 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the 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 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.


Page 4

 
AVALON FASHIONS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AVALON FASHIONS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


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


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


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 2, 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.


Page 5

 
AVALON FASHIONS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AVALON FASHIONS LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the Company and industry, we identified and assessed the risks of material misstatements, including fraud and non-compliance with laws and regulations that could be expected to have a material impact on the financial statements. We also enquired of management and those charged with governance about their own identification and assessment of the risks of irregularities. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

We obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. These included but were not limited to, UK Companies Act, UK financial reporting standards, and taxation legislation.

In addition, we considered provisions of other laws and regulations 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.

As a result of performing the above, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to revenue recognition. We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls).

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).


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.


Page 6

 
AVALON FASHIONS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AVALON FASHIONS LIMITED (CONTINUED)


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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.





Abdultaiyab Pisavadi BSc FCA (Senior statutory auditor)
  
for and on behalf of
Sumer Auditco Limited
 
Statutory Auditors
  
14th Floor
33 Cavendish Square
London
W1G 0PW

28 August 2026
Page 7

 
AVALON FASHIONS LIMITED
 
 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2025

2025
2024
Note
£
£

  

Turnover
 4 
9,554,793
10,341,705

Cost of sales
  
(4,798,929)
(4,743,428)

Gross profit
  
4,755,864
5,598,277

Distribution costs
  
(1,880,272)
(2,095,720)

Administrative expenses
  
(2,861,628)
(2,932,172)

Operating profit
 5 
13,964
570,385

Interest receivable and similar income
 9 
119,031
95,961

Interest payable and similar expenses
 10 
(154)
(256)

Profit before tax
  
132,841
666,090

Tax on profit
 11 
(37,871)
(162,029)

Profit for the financial year
  
94,970
504,061

There are no items of other comprehensive income for 2025 or 2024 other than the profit for the yearAs a result, no separate Statement of comprehensive income has been presented.

The notes on pages 11 to 25 form part of these financial statements.

Page 8

 
AVALON FASHIONS LIMITED
REGISTERED NUMBER: 04794322

BALANCE SHEET
AS AT 31 AUGUST 2025

2025
2024
Note
£
£

Fixed assets
  

Tangible assets
 12 
28,261
46,320

Investments
 13 
200
200

  
28,461
46,520

Current assets
  

Stocks
 14 
946,433
1,117,068

Debtors: amounts falling due within one year
 15 
3,545,142
3,185,461

Cash at bank and in hand
 16 
4,860,377
4,847,578

  
9,351,952
9,150,107

Creditors: amounts falling due within one year
 17 
(3,236,144)
(3,147,328)

Net current assets
  
 
 
6,115,808
 
 
6,002,779

Total assets less current liabilities
  
6,144,269
6,049,299

  

Net assets
  
6,144,269
6,049,299


Capital and reserves
  

Called up share capital 
 18 
128
128

Share premium account
 19 
299,972
299,972

Profit and loss account
 19 
5,844,169
5,749,199

  
6,144,269
6,049,299


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 August 2026.




................................................
S Ahmad
Director

The notes on pages 11 to 25 form part of these financial statements.

Page 9

 
AVALON FASHIONS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2025


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 September 2023
128
299,972
5,245,138
5,545,238


Comprehensive income for the year

Profit for the year
-
-
504,061
504,061



At 1 September 2024
128
299,972
5,749,199
6,049,299


Comprehensive income for the year

Profit for the year
-
-
94,970
94,970


At 31 August 2025
128
299,972
5,844,169
6,144,269


The notes on pages 11 to 25 form part of these financial statements.

Page 10

 
AVALON FASHIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

1.


General information

The company is a private company limited by share capital, incorporated in England and Wales. The address of the registered office is 22 Bruton Street, London W1J 6QE.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The company is exempt under section 400 of the Companies Act 2006 from the requirement to prepare and deliver consolidated financial statements as it and its subsidiary undertakings are included in the group financial statements of its parent company Mo Freedom Limited, a company incorporated in the England and Wales.

The Company is taking advantage of the exemption to prepare a Statement of Cash Flows or net debt reconciliation as it is a qualifying entity under FRS 102, whose financial statements are included within the consolidated financial statements of the parent entity of the Group, Mo Freedom Limited. Copies of these financial statements may be obtained from Companies House.

The following principal accounting policies have been applied:

  
2.2

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Therefore, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Page 11

 
AVALON FASHIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)

  
2.3

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, net of discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
 
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services
 
Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
 
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

A sales return provision is made based on actual customer returns received post year end. 

 
2.4

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 12

 
AVALON FASHIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)


2.4
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold improvements
-
over the term of the lease
Plant and machinery
-
20%-33% straight line
Fixtures, fittings and equipment
-
20%-33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.5

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.6

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If 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 profit or loss.

 
2.7

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.8

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.9

Financial instruments

The Company 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 Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument.

Page 13

 
AVALON FASHIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)


2.9
Financial instruments (continued)

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 Company's cash and cash equivalents, trade and most other debtors due within the operating cycle fall into this category of financial instruments.

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 Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans 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.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

Page 14

 
AVALON FASHIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)

 
2.10

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.11

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP. Monetary amounts in these financial statements are rounded to the nearest £.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses are presented in the profit or loss.

 
2.12

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.13

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 15

 
AVALON FASHIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)

 
2.14

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.15

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.16

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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


 
2.17

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Page 16

 
AVALON FASHIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In application of the group’s accounting policies, which are described in note 2, the directors are required  to make judgements that have a significant impact on the amounts recognised and to make 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. The nature of estimation and judgement means that actual result may differ and may result in a material adjustment to carrying amount of the asset or liability affected in future periods.

Stock provision

The stock is physically counted at the year end. The provision for old stock is based on prior years’ experience of saleability and profitability of old stock. A provision of 65% has been made for the current year stock, 80% for prior year stock and 85% for stock older than two years. These provisions are consistent with prior years.


4.


Turnover

An analysis of turnover by class of business is as follows:


2025
2024
£
£

Beachwear, swimwear and accessories
9,447,390
10,001,817

Management charges
107,403
339,888

9,554,793
10,341,705


Analysis of turnover by country of destination:

2025
2024
£
£

United Kingdom
3,550,656
4,168,286

Rest of the world
6,004,137
6,173,419

9,554,793
10,341,705



5.


Operating profit

The operating profit is stated after charging:

2025
2024
£
£

Exchange differences
(114,559)
93,625

Other operating lease rentals
181,096
178,911

Page 17

 
AVALON FASHIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2025
2024
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
30,000
26,800


7.


Employees

Staff costs, including directors' remuneration, were as follows:


2025
2024
£
£

Wages and salaries
1,430,492
1,351,380

Social security costs
196,214
177,834

Pension costs
22,222
24,475

1,648,928
1,553,689


The average monthly number of employees, including the directors, during the year was as follows:


        2025
        2024
            No.
            No.







Directors
2
2



Production
7
7



Administration
33
28

42
37


8.


Directors' remuneration

2025
2024
£
£

Directors' emoluments
179,000
168,000


Page 18

 
AVALON FASHIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

9.


Interest receivable

2025
2024
£
£


Interest receivable from group companies
65,621
52,522

Other interest receivable
53,410
43,439

119,031
95,961


10.


Interest payable and similar expenses

2025
2024
£
£


Other interest payable
154
256


11.


Taxation


2025
2024
£
£

Corporation tax


Current tax on profits for the year
37,871
142,542


37,871
142,542

Foreign tax


Foreign tax on income for the year
-
19,487

-
19,487

Total current tax
37,871
162,029

Deferred tax

Total deferred tax
-
-


Tax on profit
37,871
162,029
Page 19

 
AVALON FASHIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2024 - lower than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:

2025
2024
£
£


Profit on ordinary activities before tax
132,841
666,090


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)
33,210
166,523

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
56,446
42,928

Capital allowances for year in excess of depreciation
4,490
3,315

Group relief
(56,275)
(50,737)

Total tax charge for the year
37,871
162,029

Page 20

 
AVALON FASHIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

12.


Tangible fixed assets


Leasehold improvements
Plant and machinery
Fixtures, fittings and equipment
Total

£
£
£
£



Cost or valuation


At 1 September 2024
54,524
59,047
157,990
271,561


Additions
-
1,400
2,300
3,700



At 31 August 2025

54,524
60,447
160,290
275,261



Depreciation


At 1 September 2024
35,355
54,306
135,580
225,241


Charge for the year on owned assets
5,451
3,839
12,469
21,759



At 31 August 2025

40,806
58,145
148,049
247,000



Net book value



At 31 August 2025
13,718
2,302
12,241
28,261



At 31 August 2024
19,169
4,741
22,410
46,320




The net book value of land and buildings may be further analysed as follows:


2025
2024
£
£

Short leasehold
13,718
19,166

13,718
19,166


Page 21

 
AVALON FASHIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

13.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 September 2024
200



At 31 August 2025
200





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Avalon Fashions II Limited
14th Floor 33 Cavendish Square, London, United Kingdom, W1G 0PW
Retailer of designer swimwear and beachwear
Ordinary
100%
Avalon Fashions LLC
19 Franklin Street, Tenafly, NJ 07670, USA
Commercial apparel designers.
Ordinary
100%


14.


Stocks

2025
2024
£
£

Raw materials and consumables
497,643
526,860

Finished goods and goods for resale
448,790
590,208

946,433
1,117,068


There is no material difference between the replacement cost of stocks and the amounts stated above. The provision reducing the carrying value of stocks to net realisable value above as at 31 August 2025 amounted to £1,558,023 (2024 : £1,732,678).

Page 22

 
AVALON FASHIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

15.


Debtors

2025
2024
£
£


Trade debtors
1,172,393
870,195

Amounts owed by group undertakings
1,510,077
1,453,756

Other debtors
795,214
792,953

Prepayments and accrued income
67,458
68,557

3,545,142
3,185,461



16.


Cash and cash equivalents

2025
2024
£
£

Cash at bank and in hand
4,860,377
4,847,578



17.


Creditors: Amounts falling due within one year

2025
2024
£
£

Trade creditors
1,633,314
1,114,585

Corporation tax
(76,731)
30,389

Other taxation and social security
44,483
39,815

Other creditors
3,677
3,530

Accruals and deferred income
1,631,401
1,959,009

3,236,144
3,147,328



18.


Share capital

2025
2024
£
£
Allotted, called up and fully paid



127 (2024 - 127) Ordinary shares of £1.00 each
127
127
1 (2024 - 1) DJ share of £1.00
1
1

128

128


Page 23

 
AVALON FASHIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

19.


Reserves

Share premium account

This reserve records the amount above the nominal value received for shares issued, less transaction costs.

Profit and loss account

The profit and loss reserve represents the distributable profit for the Company.


20.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administrated fund. The pension cost charge represents contributions payable by the Company to the fund an amounted to £22,222 (2024: £24,474).

Contributions totaling £4,050 (2024: £6,407) were payable to the fund at the balance sheet date and are included in creditors. 


21.


Commitments under operating leases

At 31 August 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2025
2024
£
£


Not later than 1 year
158,099
158,099

Later than 1 year and not later than 5 years
181,734
330,369

Later than 5 years
-
2,784

339,833
491,252


22.


Related party transactions

During the year, the Company was charged management fees of £299,642 (2024: £423,120) by MO Freedom Limited, the parent company. The Company charged MO Freedom Limited interest of £4,035 (2024: £4,035). 

At the balance sheet date, creditors due within one year contained an amount of £Nil (2024: £100,000) which is owed to the parent company. 

Included in debtors is an amount of £172,845 (2024: £168,439) owed from the parent company. The amount is repayable on demand.

The Company has taken the exemption not to disclose transactions with fully owned subsidiaries.

All directors of the Company are considered to be key management personnel.

Page 24

 
AVALON FASHIONS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025

23.


Controlling party

The parent company is MO Freedom Limited. The ultimate controlling party throughout this and the previous period was the sole director of the parent company.

The accounts of the company are consolidated within the accounts of MO Freedom Limited and a copy of the consolidated accounts can be obtained from the company's registered office at 22 Bruton Street, London, W1J 6QE.

 
Page 25