Registration number:
The Hawick Cashmere Company Limited
for the Year Ended 31 December 2025
The Hawick Cashmere Company Limited
Contents
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Company Information |
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Accountants' Report |
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Balance Sheet |
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Notes to the Unaudited Financial Statements |
The Hawick Cashmere Company Limited
Company Information
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Chairman |
J A Thomson |
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Directors |
Lord C R Sanderson of Bowden C D R Sanderson W D Sanderson G W Scott E R Thomson M D Thomson P Thomson N J Garden |
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Company secretary |
M D Thomson |
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Registered office |
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Accountants |
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DEANS
Chartered Accountants
Chartered
Accountants' Report to the
Board of Directors
on the Preparation of the Unaudited Statutory Accounts of
The Hawick Cashmere Company Limited
for the
Year
Ended
31 December 2025
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of The Hawick Cashmere Company Limited for the year ended 31 December 2025 as set out on pages 3 to 14 from the company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants of Scotland (ICAS), we are subject to its ethical and other professional requirements which are detailed at http://www.icas.com/ethics/icas-code-of-ethics.
This report is made solely to the Board of Directors of The Hawick Cashmere Company Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of The Hawick Cashmere Company Limited and state those matters that we have agreed to state to the Board of Directors of The Hawick Cashmere Company Limited, as a body, in this report in accordance with ICAS guidance (www.icas.com/accountsprep/guidance). To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than The Hawick Cashmere Company Limited and its Board of Directors as a body for our work or for this report.
It is your duty to ensure that The Hawick Cashmere Company Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and loss of The Hawick Cashmere Company Limited. You consider that The Hawick Cashmere Company Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the accounts of The Hawick Cashmere Company Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.
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Chartered Accountants and Business Advisors
Hawick
Borders
TD9 9BD
The Hawick Cashmere Company Limited
(Registration number: SC128179)
Balance Sheet as at 31 December 2025
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2025 |
2024 |
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Fixed assets |
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Tangible assets |
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Investment property |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
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( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
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( |
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Provisions for liabilities |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Share premium reserve |
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Capital redemption reserve |
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Other reserves |
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Retained earnings |
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Shareholders' funds |
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For the financial year ending 31 December 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.
Approved and authorised by the
The Hawick Cashmere Company Limited
(Registration number: SC128179)
Balance Sheet as at 31 December 2025
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The Hawick Cashmere Company Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2025
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General information |
The company is a private company limited by share capital, incorporated in Scotland.
The address of its registered office is:
These financial statements were authorised for issue by the
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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 have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared on a going concern basis, under the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are presented in Sterling (£) and rounded to the nearest £1.
Going concern
The financial statements have been prepared on a going concern basis.
The Hawick Cashmere Company Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2025
Judgements
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been included: |
Inventory Provisioning - when calculating the inventory provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials. |
Impairment of debtors - the company makes an estimate of the recoverability value of trade debtors and other debtors. When assessing impairment of trade debtors and other debtors, management considers factors including current rating of the debtor, the ageing profile of debtors and historic experience. |
Useful economic lives of tangible assets - the annual depreciation charge for tangible assets is sensitive to change in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on economic utilisation,and the physical condition of the assets. |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Company’s activities. Turnover is shown net of value added tax, returns and rebates.
Sale of Goods - Wholesale
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
Sale of goods – Retail
Sale of goods are recognised on sale to the customer, which is considered the point of delivery. Retail sales are usually by cash, credit or payment card.
The company does not operate any loyalty programmes.
Government grants
Government grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets by equal annual instalments.
Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.
Foreign currency transactions and balances
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 tax and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
Current or deferred taxation assets and liabilities are not discounted.
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.
The Hawick Cashmere Company Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2025
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 off against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated 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:
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Asset class |
Depreciation method and rate |
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Land |
nil |
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Buildings |
4% straight line |
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Plant and machinery |
15% reducing balance & 10% straight line |
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Fixtures and fittings |
15% reducing balance & 25% straight line |
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Motor vehicles |
25% straight line |
Investment property
Investments
Investments in joint ventures are stated at cost less accumulated impairment losses.
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.
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. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. 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 receivables.
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 (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. 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.
The Hawick Cashmere Company Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2025
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 subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
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.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
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.
Defined contribution pension obligation
The company operates defined contribution pension schemes and contributes to the personal pension schemes of certain employees. Contributions are recognised in the profit and loss account in the period in which they become payable in accordance with the rules of the scheme.
The Hawick Cashmere Company Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2025
Financial instruments
Classification
Recognition and measurement
Impairment
Derivative financial instruments and hedging
Derivatives
Hedging
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Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
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Tangible assets |
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Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Other tangible assets |
Total |
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Cost or valuation |
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At 1 January 2025 |
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Additions |
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At 31 December 2025 |
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Depreciation |
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At 1 January 2025 |
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Charge for the year |
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- |
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At 31 December 2025 |
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Carrying amount |
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At 31 December 2025 |
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At 31 December 2024 |
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Included within the net book value of land and buildings above is £31,501 (2024 - £33,283) in respect of freehold land and buildings.
The Hawick Cashmere Company Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2025
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Investment properties |
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2025 |
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At 31 December 2023 and 2024 |
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Investment property is valued at open market value.
The property at Stow-on-the-wold was valued by Carter Jonas MRICS FAAV on 9 February 2021.
The property at Kelso was valued by D M Hall MRICS on 2 March 2021.
The Hawick Cashmere Company Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2025
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Stocks |
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2025 |
2024 |
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Raw materials and consumables |
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Work in progress |
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Finished goods and goods for resale |
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Debtors |
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2025 |
2024 |
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Trade debtors |
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Prepayments |
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Other debtors |
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Details of non-current trade and other debtors
£Nil (2024 -£Nil) of Trade debtors is classified as non current.
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Creditors |
Creditors: amounts falling due within one year
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Note |
2025 |
2024 |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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Creditors include bank loans and overdrafts which are secured of £816,102 (2024 - £968,544).
Creditors include HP obligations due within one year of £81,930 (2024 - £44,640).
Creditors: amounts falling due after more than one year
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Note |
2025 |
2024 |
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Due after one year |
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Loans and borrowings |
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Creditors include bank loans and overdrafts which are secured of £81,654 (2024 - £185,597).
Creditors include HP obligations due after one year of £126,447 ( 2024 - £40,920).
The Hawick Cashmere Company Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2025
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Loans and borrowings |
Non-current loans and borrowings
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2025 |
2024 |
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Bank borrowings |
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Hire purchase contracts |
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Current loans and borrowings
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2025 |
2024 |
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Bank borrowings |
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Bank overdrafts |
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Hire purchase contracts |
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Bank borrowings
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Bank Loans - the carrying amount at year end is £ HSBC holds a first legal charge over 2 Brewery Yard, Stow-on-the-Wold, North Shop, Spread Eagle House, Bridge Street, Kelso and the factory premises at Trinity Mills, Duke Street, Hawick and a bond and floating charge over the whole of the Company's assets. |
The Hawick Cashmere Company Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2025
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Share capital |
Allotted, called up and fully paid shares
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2025 |
2024 |
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No. |
£ |
No. |
£ |
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329,500 |
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329,500 |
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Related party transactions |
Summary of transactions with entities with joint control or significant interest
The company has provided unsecured loans to such entities during the year.
Loans to related parties
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2025 |
Entities with joint control or significant influence |
Total |
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At start of period |
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Repaid |
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Interest transactions |
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At end of period |
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2024 |
Entities with joint control or significant influence |
Total |
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At start of period |
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Interest transactions |
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At end of period |
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The Hawick Cashmere Company Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2025
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Financial instruments |
Categorisation of financial instruments
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2025 |
2024 |
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Financial assets measured at fair value through profit or loss |
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Financial liabilities measured at fair value through profit or loss that are not held as part of a trading portfolio and are not derivatives |
(1,609,191) |
(1,700,476) |
Derivatives
Currency Contracts
The company enters into forward currency contracts to mitigate the exchange rate risk to certain foreign currency receivables. At 31 December 2025, the company had no commitments to forward currency contracts. As at 31 December 2025, the company had no committments for forward currency contracts.
The forward currency contracts are measured at fair value, which is determined using valuation techniques that utilise observable inputs. The key assumptions used in valuing the derivatives are the forward exchange rates for GBP:USD.
The company has no interest rate derivative financial instruments (2024: none)