REGISTERED NUMBER: 00301933 (England and Wales)

BRADSHAW TAYLOR LTD.

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Strategic Report

2

to

5

Report of the Directors

6

to

7

Report of the Independent Auditors

8

to

10

Income Statement

11

Other Comprehensive Income

12

Statement of Financial Position

13

Statement of Changes in Equity

14

Notes to the Financial Statements

15

to

26

DIRECTORS:

M E Taylor

A M Taylor

C E B Cavell-Taylor

N J Toothill

S Prior

N J Vance

J Hewetson

J S McEuen

M L Janssen

W Fowler

S Del Zotto

REGISTERED OFFICE:

16 Mill Street

Oakham

Rutland

LE15 6EA

REGISTERED NUMBER:

00301933 (England and Wales)

AUDITORS:

Duncan & Toplis Audit Limited, Statutory Auditor

14 All Saints Street

Stamford

Lincolnshire

PE9 2PA

The directors present their strategic report for the year ended 31 December 2024.

REVIEW OF BUSINESS

Strategic Management

The company's strategy is to develop individual brands within the United Kingdom, Europe and other markets.

The company has five key brands. Three are distributed in the UK on an exclusive basis (Schöffel Country, KEEN Footwear and Schöffel Ski). Two are owned brands which are being developed for the future (Sherpa Adventure Gear and Artilect).

The company operates in the UK, Europe and the USA and is gaining traction in all three markets. The company services two market sectors - the country market (with Schöffel Countrywear) and the outdoor and ski market (with KEEN, Artilect, Sherpa Adventure Gear and Schöffel Ski).

The Country Market

Schöffel Countrywear is growing strongly in the D2C market in the UK and is now starting to gain traction in the European country market. In the US, Schöffel Country has established a bridgehead with the key country retailers with the launch of a D2C offer in 2024.

The Outdoor and Ski Market

Schöffel Ski is successfully distributed into the UK market and is established as the No 2 premium ski brand in the UK. Keen Footwear is distributed into the UK market to both outdoor retailers and the lifestyle footwear market where the brand is growing strongly.

Sherpa Adventure Gear has a small but vibrant position in the US market with many of the key American premium outdoor retailers and Sherpa enjoys a similar position in the European outdoor market, represented by key outdoor retailers from Scandinavia, Benelux and Germany.

Artilect is a premium technical performance-based brand, created in 2020, and has established a strong following with the core European retailers in Scandinavia, Benelux, Germany and Switzerland.

Business Environment

Trading remains constrained by the competitive environment in wholesale and retail sectors due to the on-going challenges faced by the economy with higher inflation, interest rates, the war in Ukraine and uncertainty with international tariffs.

Business Performance

The board consider that the key performance indicators for the company are those that communicate the financial performance and strength of the company as a whole. The key financial highlights are as follows:

2024

2023

Change

£m

£m

%

Revenue

24.8

26.0

-4.5%

Gross Profit

11.4

10.3

11.4%

Gross Margin %

46.1%

39.5%

16.7%

EBITDA before exceptional items

1.5

1.4

8.3%

Profit/(loss) on ordinary items before taxation

0.1

(1.5)

106.6%

Overall revenues declined in year due to the sale of the retail operations and discontinuing non-core brands and markets. Revenue for continuing operations was £24.6m which was consistent with the prior year (2023: £24.6m).

The D2C channel increased 31.9% to £8.2m (2023: £6.2m) accounting for 36% of continuing product sales (2023: 27%).

Revenue: Continuing and Discontinuing Operations

Continuing

Discontinued

2024

Operations

Operations

Total

£m

£m

£m

Product sales

23.0

0.2

23.2

Service contract income

1.6

-

1.6

Total revenue

24.6

0.2

24.8

United Kingdom

23.8

0.2

24.0

Europe

0.6

-

0.6

Rest of the world

0.2

-

0.2

Total revenue

24.6

0.2

24.8

Business to business (B2C)

14.8

0.2

15.0

Direct to consumer (D2C)

8.2

-

8.2

Retail operation

-

-

-

Total product sales

23.0

0.2

23.2

Continuing

Discontinued

2023

Operations

Operations

Total

£m

£m

£m

Product sales

23.2

1.4

24.6

Service contract income

1.4

-

1.4

Total revenue

24.6

1.4

26.0

United Kingdom

23.6

1.4

25.0

Europe

0.8

-

0.8

Rest of the world

0.2

-

0.2

Total revenue

24.6

1.4

26.0

Business to business (B2C)

17.0

0.9

17.9

Direct to consumer (D2C)

6.2

0.3

6.5

Retail operation

-

0.2

0.2

Total product sales

23.2

1.4

24.6

Continuing

Discontinued

Total

Change

Change

Change

%

%

%

Product sales

-1.0%

-87.4%

-5.8%

Service contract income

18.5%

n/a

18.5%

Total revenue

0.1%

-87.4%

-4.5%

United Kingdom

1.2%

-87.4%

-3.7%

Europe

-27.1%

n/a

-27.1%

Rest of the world

-15.0%

n/a

-15.0%

Total revenue

0.1%

-87.4%

-4.5%

Business to business (B2C)

-13.0%

-83.8%

-16.4%

Direct to consumer (D2C)

31.9%

-87.5%

26.6%

Retail operation

n/a

-100.0%

-100.0%

Total product sales

-1.0%

-87.4%

-5.8%

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks arising from the company's activities are liquidity risk, currency risk, interest rate risk and credit risk. The board reviews and agrees policies for managing each of these risks and they are summarised below.

Liquidity risk

Liquidity risk is the risk that the company is unable to meet its payment obligations associated with its liabilities as they fall due. The company's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company's reputation. The company determines its liquidity requirements by the use of cash flow forecasts. On at least an annual basis, the board reviews and approves any funding requirements of the company which they continue to monitor and review on an ongoing basis.

Currency risk

Currency risk is managed by appropriate use of forward currency contracts.

Interest rate risk

Interest rate risk is managed by regular review of fixed and variable rate facilities available from the company's bankers.

Credit risk

Credit risk is managed by constant monitoring of the creditworthiness of customers and by identifying and addressing any credit issues in a timely manner.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)

Environmental

We are measuring our Corporate Carbon Footprint in emissions scope 1, 2 and 3. We expect to have a full assessment of our full year 2024 impact by Q4 of 2025. Our climate work in scope 3 will bring us product level carbon footprints. This data will enable us to assess our potential reductions required for a move to net-zero with the near term (2030) and far term (2050) targets. If our potential reductions are in line with the promises required, we will file both intent and targets with the Science Based Targets Initiative. Once our commitments to reduction are in place, we will complete an action plan for our reductions across those scopes. We will then look to our strategies for carbon mitigation and removal. We would like these investments to be in projects that are close to our outdoor community and in the countries in which we manufacture our products.

Building on our assessments from last year, we are continuing to develop our supply chain and are maintaining our drive to move more of our business to manufacturing partners that share our values and understand the impact they have on the planet. We continue a progressive 'move to natural' with increased use of natural fibres that are wherever possible certified for responsible, fair and sustainable sourcing. Similarly, we continue to seek to use in our manufacturing renewable and recycled content in any styles that are not natural fibre based.

Key suppliers have signed up to our Vendor Compliance Manual and Operations Guide which highlights our required ESG standards, including factory auditing. We will build further on those Vendor assessments to demand more transparency and performance from our supply chain.

We constantly look to improve our business efficiency and reduce our impact on the planet. Specific areas of focus have been:

- Business travel

- Employee commuting

- Electricity and gas (energy usage)

- Vehicle fleet.

- Materials used in our product collections

- Vendor locations, fabric sources and ethics

- Packaging reuse and recycling

We set an ethos of being a responsible company, and we work hard to reduce waste in all its forms.

Social

We are committed to investing in our staff and where possible we promote from within and have a very local workforce.

We are assessing and benchmarking our company performance for workers to ensure that we offer the right benefits and policies to support our staff. This includes reviews of bonus structures, sick pay, parental leave, career development opportunity/investment and other such areas. Staff will be given feedback opportunities to make comments or suggestions.

During the year we donated to various charitable causes including Room to Read, The Game and Wildlife Conservation Trust and other local charities.

Governance

The directors meet regularly on at least a monthly basis both in person and via video-calls to monitor operational performance and to make strategic decisions to address the macroeconomic environment and other challenges affecting the business.

ON BEHALF OF THE BOARD:

C E B Cavell-Taylor - Director

8 November 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review were those of the sale of specialist clothing and footwear and group strategy and admin.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

M E Taylor

A M Taylor

C E B Cavell-Taylor

N J Toothill

S Prior

N J Vance

J Hewetson

J S McEuen

M L Janssen

Other changes in directors holding office are as follows:

W Fowler - appointed 30 October 2024

S Del Zotto - appointed 30 October 2024

FINANCIAL INSTRUMENTS

The company's principal financial instruments comprise cash, bank term borrowings, bank import loans and overdraft, trade debtors and trade creditors.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

C E B Cavell-Taylor - Director

8 November 2025

Opinion

We have audited the financial statements of Bradshaw Taylor Ltd. (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity 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 2024 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 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 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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.

Opinions 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors 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 Report of the Directors.

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:

-	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 six, 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 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.

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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with directors and other management obtained as part of the work required by auditing standards. We have also discussed with the directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit. The potential impact of different laws and regulations varies considerably.

Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of unusual material journal entries and challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. We carried out substantive tests on accounting estimates, including reviewing the methods and data used by management to make those estimates, reperforming the calculation and reviewing the outcome of current year estimates since the financial reporting date.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and safety regulations, consumer rights and employment law.

Our work included a review of relevant correspondence within the year for any evidence of non-compliance and reading minutes of meetings of those charged with governance. In addition, an assessment of the company's legal expenses and possible contingencies was performed. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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 Report of the Auditors.

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 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 a Report of the Auditors 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.

Alistair Main BFP FCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor

14 All Saints Street

Stamford

Lincolnshire

PE9 2PA

10 November 2025

REVENUE

3

24,789,128

25,969,595

Cost of sales

13,366,029

15,713,051

GROSS PROFIT

11,423,099

10,256,544

Distribution costs

1,012,605

1,099,946

Administrative expenses

9,986,412

8,901,121

10,999,017

10,001,067

424,082

255,477

Other operating income

4

477,835

531,552

OPERATING PROFIT

6

901,917

787,029

Exceptional income

7

-

434,240

Exceptional costs

7

(21,790

)

(994,156

)

880,127

227,113

Interest receivable and similar income

253,688

191,914

1,133,815

419,027

Loss on revaluation of assets

-

(750,933

)

1,133,815

(331,906

)

Interest payable and similar expenses

8

1,032,092

1,197,855

PROFIT/(LOSS) BEFORE TAXATION

101,723

(1,529,761

)

Tax on profit/(loss)

9

37,032

(142,903

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

64,691

(1,386,858

)

PROFIT/(LOSS) FOR THE YEAR

64,691

(1,386,858

)

OTHER COMPREHENSIVE INCOME

Revaluation of freehold property

-

1,344,079

Income tax relating to other comprehensive income

-

14,000

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

1,358,079

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

64,691

(28,779

)

FIXED ASSETS

Intangible assets

10

315,505

361,716

Property, plant and equipment

11

3,142,266

3,408,893

Investments

12

2,917,519

2,917,519

Investment property

13

620,000

620,000

6,995,290

7,308,128

CURRENT ASSETS

Inventories

14

6,514,370

9,697,044

Debtors

15

14,072,356

17,698,743

Cash at bank and in hand

1,521,943

1,396,557

22,108,669

28,792,344

CREDITORS

Amounts falling due within one year

16

18,868,075

26,374,513

NET CURRENT ASSETS

3,240,594

2,417,831

TOTAL ASSETS LESS CURRENT LIABILITIES

10,235,884

9,725,959

CREDITORS

Amounts falling due after more than one year

17

(3,618,766

)

(3,210,564

)

PROVISIONS FOR LIABILITIES

22

(189,235

)

(152,203

)

NET ASSETS

6,427,883

6,363,192

CAPITAL AND RESERVES

Called up share capital

23

6,183

6,183

Revaluation reserve

24

1,968,530

1,968,530

Capital redemption reserve

24

20,821

20,821

Retained earnings

24

4,432,349

4,367,658

SHAREHOLDERS' FUNDS

6,427,883

6,363,192

The financial statements were approved by the Board of Directors and authorised for issue on 8 November 2025 and were signed on its behalf by:

C E B Cavell-Taylor - Director

Called up

Capital

share

Retained

Revaluation

redemption

Total

capital

earnings

reserve

reserve

equity

£

£

£

£

£

Balance at 1 January 2023

6,183

5,736,833

628,134

20,821

6,391,971

Changes in equity

Total comprehensive income

-

(1,386,858

)

1,358,079

-

(28,779

)

Transfer

-

17,683

(17,683

)

-

-

Balance at 31 December 2023

6,183

4,367,658

1,968,530

20,821

6,363,192

Changes in equity

Total comprehensive income

-

64,691

-

-

64,691

Balance at 31 December 2024

6,183

4,432,349

1,968,530

20,821

6,427,883

1.	STATUTORY INFORMATION

Bradshaw Taylor Ltd. is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

The company is a subsidiary of Cavell Taylor Holdings Limited. Consolidated financial statements of Cavell Taylor Holdings Limited can be obtained from:

Companies House

Crown Way

Cardiff

CF14 3UZ

Preparation of consolidated financial statements

The financial statements contain information about Bradshaw Taylor Ltd. as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Cavell Taylor Holdings Limited, 16 Mill Street, Oakham, Rutland, LE15 6EA.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

In the application of the company's accounting policies, management are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

i) Stock provision:

The company sells outdoor clothing and is subject to changing consumer demands and economic trends. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management consider the nature and condition of the stock, as well as applying assumptions around anticipated saleability of finished goods.

ii) Bad debt provision

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other receivables, management consider factors including the credit rating of the receivable, the aging profile of receivables and historical experience. The bad debt provision is netted off against the overall trade debtor amount.

iii) Sales return provision

The sales return provision is estimated on the basis of historical return and after date sales analysis. The provision is recorded to allocate the returns to the same period in which the revenue is recorded. A sales return provision has been recognised in accruals.

Revenue

Revenue represents amounts receivable for the supply of goods and services and is net of VAT and trade discounts. Product revenue is recognised on the delivery of products to wholesale customers and on the sale of products to retail customers.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2019, is being amortised evenly over its estimated useful life of five years.

Other intangible assets

Patents and licences are carried at cost and are reviewed for impairment in value at each reporting date.

Brands are held at cost less accumulated amortisation and impairment losses and are to be amortised evenly over their estimated useful life of 10 years.

Property, plant and equipment

The company has adopted a policy of revaluing freehold property. The revalued amounts equate to the fair value at the date of the revaluation, less any depreciation or impairment losses subsequently accumulated. Revaluations are carried out regularly so the carrying amounts do not materially differ from the fair value at the statement of financial position date. Any revaluation surplus on freehold property is recognised through other comprehensive income in the revaluation reserve.

The directors are of the opinion that the residual value of the freehold property is such that depreciation would not be material.

Plant and equipment assets are held at cost less accumulated depreciation and impairment losses.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Short leasehold property

- 20% on cost

Improvements to property

- 12.5% on cost

Fixtures and fittings

- at varying rates between 10% and 33% on cost

Motor vehicles

- 20% on cost

Investments

Investments in subsidiary undertakings are recognised at cost less accumulated impairment losses.

In the absence of available market data to determine fair value, other unlisted investments are recognised at cost less accumulated impairment losses.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Inventories

Inventories are stated at the lower of cost and fair value less costs to complete and sell after making due allowance for slow moving and obsolete items. Cost includes the product cost, import duties and inward carriage costs. Inventories are accounted for on a first-in-first-out basis.