REGISTERED NUMBER: |
LYLE & SCOTT LIMITED |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 March 2023 |
REGISTERED NUMBER: |
LYLE & SCOTT LIMITED |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 March 2023 |
LYLE & SCOTT LIMITED (REGISTERED NUMBER: 04111248) |
Contents of the Financial Statements |
for the year ended 31 March 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 | to | 5 |
Report of the Directors | 6 | to | 8 |
Report of the Independent Auditors | 9 | to | 11 |
Statement of Comprehensive Income | 12 |
Balance Sheet | 13 |
Statement of Changes in Equity | 14 |
Cash Flow Statement | 15 |
Notes to the Cash Flow Statement | 16 |
Notes to the Financial Statements | 17 | to | 26 |
LYLE & SCOTT LIMITED |
Company Information |
for the year ended 31 March 2023 |
Directors: |
Registered office: |
Registered number: |
Auditors: |
5-6 Greenfield Crescent |
Edgbaston |
Birmingham |
West Midlands |
B15 3BE |
Bankers: |
One Snowhill |
Snowhill Queensway |
Birmingham |
B3 2WN |
LYLE & SCOTT LIMITED (REGISTERED NUMBER: 04111248) |
Strategic Report |
for the year ended 31 March 2023 |
The directors present their strategic report for the year ended 31 March 2023. |
Review of business |
Most people reading accounts typically only want the numbers…so here are the headlines for those of you who do not have the curiosity or desire to read any further…shame on you: |
Total company sales £71.9m |
PBT £13.1m |
On the face of it potentially a rather ordinary beige set of numbers, growth and profit look like other lead players in this sector…a growing company, still very profitable, but not as "golden" as the iconic Eagle has demonstrated over the past 8 years; more akin to our competitors' returns not the returns historically seen by Lyle & Scott…has the sheen worn off? |
Well whilst we are renowned as the iconic golden eagle, in the last financial year we have had to metamorphosize into 2 other iconic birds, the swan and the fabled phoenix, in order to continue to deliver a stellar performance in the face of challenges that could have seen others crumble and turn to dust. |
As we have always said as a brand, numbers only tell half the story…let us tell you our tale of our two halves of FY23: |
Half 1 - "The Swan" |
In November 2021 we were hit by a warehouse fire at our third-party logistics provider; it was a major incident, and whilst initially we felt that our stock position was recoverable, the typical contamination and issues associated with a fire led to over 60% of our stock being impacted. |
Production lead times in the fashion industry are well understood, and vary anywhere between 3 to 9 months, so the ability to "magic" stock back into our supply chain was challenging, but aided by our having exceptional business continuity plans in place, and the power of Seth Godin's brilliant purple cow mentality on our side, we were more than up for the challenge. |
The first 6 months of FY23 were all about paddling hard whilst conducting ourselves with outstanding composure and professionalism, to support our customers, be it our end consumer - the brand champions we love and respect, or our prized wholesale customers... we channelled our inner swan rather well. |
Our staff were outstanding throughout this time, rallying to the challenge, putting the brand they love at the forefront, sacrificing their own time and outside commitments, all led by a dedicated and committed Board. |
The Swan won the day… due to the fundamentals of a brilliant business contingency plan, exceptional staff, a bullet proof board and some standout suppliers who truly partnered with us to create 9 months of lost supply chain in just under 2 months…not many businesses could achieve this and remain unbowed, and indeed the issue passed the industry by without a single comment, such is our ability to be a swan! |
Contingency planning at it's very best; ensured our warehouse provision in Europe went from a shell back to a fully operational function within 5 working days of the fire…a fire so intense that it shut the very town where the warehouse was based! |
Perhaps most important in this period, was that we were blessed, thanks in no small part to our religious approach to Health and Safety, that whilst faced with a once in lifetime challenge of a major fire, none of our staff were injured. The bedrock of a brilliant brand and business are outstanding staff that should always be supported, looked after and protected. |
As we approached the end of Q2 FY23 we really found our feet again; the fundamentals of a solid business are that no matter how many rocks you throw at it…. pandemic, Suez Canal…. a fire…it can be briefly knocked off course, but it will always right itself…and so to the 2nd half for FY23. |
LYLE & SCOTT LIMITED (REGISTERED NUMBER: 04111248) |
Strategic Report |
for the year ended 31 March 2023 |
Half 2 - "The Phoenix" |
Our lifeblood - the brilliant product that is in such demand, was back to healthy levels in all of our global warehouses as we entered the second half of FY23; in fact, we took the wise decision to increase our stock holding beyond normal levels to ensure momentum as we focussed on returning to our normal levels of growth. |
We have, over many years, forged brilliant relationships with Agents, Distributors and wholesale partners around the world, and our exceptional communication throughout the challenges of the fire, and the support that we demonstrated to all partners during this time afforded us a very robust platform to put the business back into strong double-digit growth in the second half of FY23. Whilst our overall FY23 growth was masked by half 1, it is a distinct tale of 2 halves and the strong exit from FY23 leaves us well placed for FY24, and the need to deal with the global meltdown that is flowing through all business sectors. |
It is testimony to the solid foundations of the Brand, and that Lyle & Scott is run with an eye on maintaining healthy profits, that we have been able to continue with the key aspects of our business plan that we had set out to undertake at the beginning of the year; this is the hallmark of the brand, solid returns even in the face of adversity, results that anyone in the industry would be proud to have their name against. |
An Aide memoire about the Brand... as if you need one! |
Celebrating 150 years next year, Lyle & Scott is not a flash in the pan or another TikTok or Instagram brand, based on just astonishing sales, PR headlines, celebrity endorsement and no profit, we have stood the test of time, delivering brilliant profitable results, year after year. We design, wholesale, retail, e-tail & license premium men's, women's, & kids clothing & accessories in the UK, Europe, Asia, Africa & North America. Everything we do is founded on the capability and commitment of our remarkable staff; we are collectively focussed on nurturing a premium brand, working with the very best partners, utilising innovative raw materials to continue as the custodians of excellence as all of those who have come before us have done, since the proud founding day of our company in 1874, in the beautiful picturesque town of Hawick, nestled in the Scottish Borders. Hawick & its brilliant community nurtured Lyle & Scott and created a global brand; as one of the very last businesses founded and still residing in the Scottish Borders, we also operate out of our London Headquarters in lively Camden and continue to grow our global footprint via our Agents, Distributors & Licensing partners. |
Following the "planned" flight path for FY23 |
There is no doubt the fire was a major distraction for a period of time, but as a business that is focussed on profitable growth and continuing to innovate, we stuck to our guns and delivered our key business development plans for FY23; taking the decision to continue investing in the business to ensure FY24 and beyond are robust years, was exactly the right thing to do: |
- | We have focussed on introducing our own proprietary B2B system in FY23 and have developed this new software rigorously to underpin the growth plans for the business and to support the demands and needs of our global partners. |
- | Getting the basics right is a fundamental for all successful businesses; and we have taken the opportunity in FY23 to create the "Admin Hive" - to absorb all of the repetitive administration tasks. The model affords us the ability to find brilliant staff who LOVE administration; finding staff who have a natural aptitude for something and really love it makes all the difference! |
- | New channels to market in the fashion world are slower to the party than many other industries, but when they eventually arrive, they tend to stick; we are keeping pace with our efforts on Direct to Consumer ("DTC"), learning, adapting and ensuring that we know how to optimise this channel to market. The synergy of DTC and our own eCommerce is being complemented through our new business venture the Hive and their ability to take up all the back of house functions quickly and effectively supporting agility and growth. |
LYLE & SCOTT LIMITED (REGISTERED NUMBER: 04111248) |
Strategic Report |
for the year ended 31 March 2023 |
- | Our relocation last year to Camden had delighted our staff and customers equally. Camden is a lively and engaging environment, very much suited to the brand. Post pandemic we were very swift to return to the office on a hybrid model, driven in a large part by the desire of our staff for face to face collaboration and to return to immersing themselves in our brilliant culture; towards the end of FY23 we have taken this a step further and we have adopted a 4.5 day working pattern. All staff are in the office Monday to Thursday, working at home on a Friday morning. Friday afternoons are now a non- working period, allowing our staff more time to themselves to support their positive mental health, extending their weekend, allowing them to have real quality time with friends and family, and meaning that the commitment that we get in return during working times far exceeds what we could expect from a conventional 5 day working pattern. Our staff really are the essence of the success of the brand, and we want to continue to innovate to look after them and ensure that Lyle & Scott is an employer of choice for them. |
- | We shed the traditional head-hunter recruitment approach in FY23, bringing ALL recruitment in-house; the difference has been revolutionary for us…all at a fraction of the price of previous years. Junior roles that would have taken us 8 weeks to fill are now in place in less than 4 weeks, and senior positions are being filled in less than 70% of the time that they historically taken; this has enabled us to have a real competitive advantage, especially when the rest of the industry appears to have struggled enormously in these last 12 months to control their recruitment and has been fundamental to our growth. |
Future Developments |
Our model continues to yield exceptional results and as we look forward, our focus is on ensuring that our business model can keep pace with our ambitions. |
With the majority of our business in the EU, we are forming an EU entity to help us maximise this growth and take the business and brand on its next natural step to taking greater control of our main marketplace. |
I said at the beginning that we have had a year of 2 very different halves, and as we go into FY24 we will be focussing on grass roots football, often the very essence of a tale of 2 halves. Football divides very plainly into money, privilege and elitism vs the traditional community heart of the game…the grassroots; in FY24 we will continue to roll out our "Dare to" global campaign, focussed on supporting the heart of grassroots football; real football is a great leveller and we want to support the global community to put the real spirit and pride back into football, so that anyone who is passionate, anyone who has ever kicked a ball will think with pride of the eagle and our place on the field, our place on the terraces and our place in every aspect of kids, women's and men's football globally. |
Of course, we have many other cards up our sleeves to play in FY24, but we will not be revealing them here, as that would be just folly. Whilst we tend not to be big on our own self PR, we cordially say to all our readers of this report…we look forward to meeting you all in next year's report, to bring you up to speed the ongoing journey of 150 years of brilliant success…and hope you enjoy the journey with us! |
LYLE & SCOTT LIMITED (REGISTERED NUMBER: 04111248) |
Strategic Report |
for the year ended 31 March 2023 |
Principal risks and uncertainties |
The Company's principal financial instruments comprise cash and cash equivalents |
The Company has various other financial assets and liabilities, including trade debtors and trade creditors that arise directly from its operations |
The Company has forward currency contracts, the purpose of which is to manage the foreign currency risks arising from the Company's operations |
It is, and has been throughout the period under review, the Company's policy that no trading in other financial instruments of a speculative nature shall be undertaken. The principal risks associated with the Company's financial assets and liabilities are set out below: |
Interest rate risk |
The Company has taken out a loan facility with Barclays for the purposes of working capital management. There is an exposure to interest rate risk on the outstanding value of this loan. |
Price risk |
There is no significant exposure to changes in the carrying value of financial instruments, assets and liabilities, except as a result of foreign currency exchange rate fluctuations. |
Foreign currency risk |
The Company has exposure to a number of foreign currencies through its purchases and sales of products. Exposure is principally in US$, Euros and Swedish Krona. The Company takes out forward foreign currency contracts to mitigate risks, consistent with the Company's policy of hedging known and highly probable exposures for up to 24 months in advance. |
Credit risk |
The majority of sales transactions to third parties are insured and consequently the Company has no material exposure to external credit risk. |
Liquidity risk |
The Company aims to mitigate liquidity risk by managing cash generated by its operations. The Company has operated a strongly positive cash-flow position over several years. |
Section 172(1) statement |
The Directors understand their duty under s172 of the Companies Act 2006 to act in the way which they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole and, in doing so, to have regards (amongst other matters) to: |
- | The likely consequences of any decision in the long term; |
- | The interest of the Company's employees; |
- | The need to foster the Company's business relationships with suppliers, customers and others; |
- | The impact of the Company's operation on the community and the environment; |
- | The desirability of the Company maintaining a reputation for high standards of business conduct; and |
- | The need to act fairly between members of the company. |
On behalf of the board: |
31 August 2023 |
LYLE & SCOTT LIMITED (REGISTERED NUMBER: 04111248) |
Report of the Directors |
for the year ended 31 March 2023 |
The directors present their report with the financial statements of the company for the year ended 31 March 2023. |
Principal activity |
The principal activity of the company in the year under review was that of sale of clothing, footwear and accessories. |
Dividends |
The Company profit for the year after taxation amounted to £10,560,265 (2022: £11,530,980). Interim dividends of £5,000,000 were declared and paid during the year (2022: £22,500,000). The directors do not propose the payment of a final dividend (2022: £nil). |
Directors |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
Going concern |
The Directors of Lyle & Scott Limited ('Company') have assessed the financial position of the Company for the year ended 31 March 2023. The assessment period considered by the Directors is from the date of signing the accounts and concluded on 31 August 2024. |
The Directors have assessed a number of factors and have concluded there is a reasonable expectation that the Company has adequate financial resources to continue to operate for the foreseeable future. |
In assessing the prospects of the business for going concern purposes, the Directors have considered forecasts prepared by management for the period to 31 August 2024. These forecasts include a base case and a downside sensitivity to reflect a reduction in revenue and margin over the forecast period. In making this assessment, the Directors have included the minimum dividend payments due to the parent company in the period and identified potential mitigating actions, within their control, that could be taken to preserve liquidity. These include, but are not limited to, reducing future discretionary dividend payments, future marketing costs and capital expenditure. |
The Directors have also considered a reverse stress test scenario, factoring in a further reduction to sales and margin, to identify the level of revenue reduction which would need to arise in order for the company to require additional financial resources or support. The Directors believe the risk of such circumstances arising following the approval of these financial statements that would result in the Company requiring additional financial resources or support is remote. |
The analysis undertaken by management, combined with the actions taken, allow the Directors to conclude that the company is well placed to manage its business risks successfully. The Directors have a reasonable expectation that the Company has adequate resources to meet its liabilities as they fall due to 31 August 2024. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. |
Streamlined energy and carbon reporting |
Lyle & Scott remains committed to minimising and mitigating against any potentially negative impact on the environment that may arise from our global operations. As a successful and profitable brand that derives its marketability from open and honest relations with all stakeholders, we have renewed our commitment to transparency and accountability across all business operations. |
As well as regularly reviewing our supply chain to ensure commensurate values and acceptable working practises are adhered to by all business partners, we continue to look inwards and improve on areas over which we have direct control, such as reducing unnecessary business travel, keeping energy consumption within our retail stores and offices to a minimum, and keeping employees informed of company policy in furtherance of achieving maximum sustainability. |
Over 50% of our total product range, and 90% of our Womenswear range, is sourced responsibly using organic, preferred, or recycled materials. We always seek a sustainable end of life for products which are deemed to be unsellable. |
Intrinsic to fulfilling our duty of care to the environment is maintaining adherence to the extra guidance following our certification by the Global Organic Textile Standard (GOTS), which we attained by way of a rigorous audit process in FY21. |
LYLE & SCOTT LIMITED (REGISTERED NUMBER: 04111248) |
Report of the Directors |
for the year ended 31 March 2023 |
The data below shows the energy consumption used to calculate the greenhouse gas (GHG) emissions of the company for the financial year ending 31 March 2023. |
Year ended 31 | Year ended 31 |
March 2023 | March 2022 |
Gas | kWh | 637,221 | 1,524,374 |
Electricity | kWh | 597,493 | 286,192 |
Mileage | Miles | 36,775 | 20,819 |
Year ended 31 | Year ended 31 |
March 2023 | March 2022 |
Gas | Total kg CO2e | 116,318 | 278,259 |
Business Travel | Total kg CO2e | 10,110 | 5,723 |
Electricity | Total kg CO2e | 115,531 | 55,344 |
Total | Total kg CO2e | 241,959 | 339,326 |
Intensity ratio, per £m turnover | Total kg CO2e | 3,582 | 6,094 |
UK Government conversion factors are used for calculating Greenhouse Gas (GHG) emissions. The intensity ratio is calculated using the financial metric £ million turnover. |
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; |
- | state whether applicable 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 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
LYLE & SCOTT LIMITED (REGISTERED NUMBER: 04111248) |
Report of the Directors |
for the year ended 31 March 2023 |
Auditors |
The auditors, Haines Watts Birmingham LLP, will be deemed to be re-appointed under section 487(2) of the Companies Act 2006. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Lyle & Scott Limited |
Opinion |
We have audited the financial statements of Lyle & Scott Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 March 2023 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. |
Report of the Independent Auditors to the Members of |
Lyle & Scott Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page seven, 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 obtained an understanding of the legal and regulatory framework applicable to both the company itself and the industry in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the directors and other management. The most significant were identified as the Companies Act 2006, UK GAAP (FRS102) and relevant tax legislation. |
We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included, but were not limited to: |
- | making enquires of directors and management as to where they consider there to be a susceptibility to fraud and whether they have any knowledge or suspicion of fraud; |
- | obtaining an understanding of the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; |
- | assessing the design effectiveness of the controls in place to prevent and detect fraud; |
- | assessing the risk of management override including identifying and testing journal entries; |
- | challenging the assumptions and judgements made by management in its significant accounting estimates. |
Whilst our audit did not identify any significant matters relating to the detection of irregularities including fraud, and despite the audit being planned and conducted in accordance with ISAs (UK), there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity would likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls. |
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. |
Report of the Independent Auditors to the Members of |
Lyle & Scott Limited |
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. |
for and on behalf of |
5-6 Greenfield Crescent |
Edgbaston |
Birmingham |
West Midlands |
B15 3BE |
LYLE & SCOTT LIMITED (REGISTERED NUMBER: 04111248) |
Statement of Comprehensive |
Income |
for the year ended 31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
Turnover | 3 |
Cost of sales | ( |
) | ( |
) |
Gross profit |
Distribution costs | ( |
) | ( |
) |
Administrative expenses | ( |
) | ( |
) |
1,659,424 | 8,424,240 |
Other operating income |
Operating profit | 5 |
Interest receivable and similar income | 7 |
13,266,979 | 14,276,560 |
Interest payable and similar expenses | 8 | ( |
) |
Profit before taxation |
Tax on profit | 9 | ( |
) | ( |
) |
Profit for the financial year |
Other comprehensive income | - | - |
Total comprehensive income for the year |
LYLE & SCOTT LIMITED (REGISTERED NUMBER: 04111248) |
Balance Sheet |
31 March 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 12 | 1,270,289 | 994,811 |
Current assets |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
Creditors |
Amounts falling due within one year | 15 |
Net current assets |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
Provisions for liabilities | 20 | ( |
) | ( |
) |
Net assets |
Capital and reserves |
Called up share capital | 21 |
Share premium |
Retained earnings |
The financial statements were approved by the Board of Directors and authorised for issue on |
LYLE & SCOTT LIMITED (REGISTERED NUMBER: 04111248) |
Statement of Changes in Equity |
for the year ended 31 March 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 March 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 March 2023 |
LYLE & SCOTT LIMITED (REGISTERED NUMBER: 04111248) |
Cash Flow Statement |
for the year ended 31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Receipt of furlough grant |
Receipt of government grants |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
17,271,245 |
Cash and cash equivalents at end of year | 2 | 2,109,194 | 6,721,526 |
LYLE & SCOTT LIMITED (REGISTERED NUMBER: 04111248) |
Notes to the Cash Flow Statement |
for the year ended 31 March 2023 |
1. | Reconciliation of profit before taxation to cash generated from operations |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Receipt of furlough grant | - | (6,566 | ) |
Government grants | ( |
) |
Finance costs | 121,296 | - |
Finance income | (11,134 | ) | (5,210 | ) |
13,862,958 | 14,909,275 |
(Increase)/decrease in stocks | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | Cash and cash equivalents |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2023 |
31/3/23 | 1/4/22 |
£ | £ |
Cash and cash equivalents | 2,109,194 | 6,721,526 |
Year ended 31 March 2022 |
31/3/22 | 1/4/21 |
£ | £ |
Cash and cash equivalents | 6,721,526 | 17,271,245 |
3. | Analysis of changes in net funds/(debt) |
At 1/4/22 | Cash flow | At 31/3/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 6,721,526 | (4,612,332 | ) | 2,109,194 |
6,721,526 | ( |
) | 2,109,194 |
Debt |
Debts falling due within 1 year | - | (2,673,231 | ) | (2,673,231 | ) |
- | (2,673,231 | ) | (2,673,231 | ) |
Total | 6,721,526 | (7,285,563 | ) | (564,037 | ) |
LYLE & SCOTT LIMITED (REGISTERED NUMBER: 04111248) |
Notes to the Financial Statements |
for the year ended 31 March 2023 |
1. | Statutory information |
Lyle & Scott Limited is a |
2. | Accounting policies |
Basis of preparing the financial statements |
The financial statements are prepared in sterling, which is the functional currency of the Company. Monetary amounts in the financial statements are rounded to the nearest £. |
The financial statements have been prepared on the historical cost convention. The principal accounting policies are set out below. |
Going concern |
The Directors of Lyle & Scott Limited ('Company') have assessed the financial position of the Company for the year ended 31 March 2023. The assessment period considered by the Directors is from the date of signing the accounts and concluded on 31 August 2024. |
The Directors have assessed a number of factors and have concluded there is a reasonable expectation that the Company has adequate financial resources to continue to operate for the foreseeable future. |
In assessing the prospects of the business for going concern purposes, the Directors have considered forecasts prepared by management for the period to 31 August 2024. These forecasts include a base case and a downside sensitivity to reflect a reduction in revenue and margin over the forecast period. In making this assessment, the Directors have included the minimum dividend payments due to the parent company in the period and identified potential mitigating actions, within their control, that could be taken to preserve liquidity. These include, but are not limited to, reducing future discretionary dividend payments, future marketing costs and capital expenditure. |
The Directors have also considered a reverse stress test scenario, factoring in a further reduction to sales and margin, to identify the level of revenue reduction which would need to arise in order for the company to require additional financial resources or support. The Directors believe the risk of such circumstances arising following the approval of these financial statements that would result in the Company requiring additional financial resources or support is remote. |
The analysis undertaken by management, combined with the actions taken, allow the Directors to conclude that the company is well placed to manage its business risks successfully. The Directors have a reasonable expectation that the Company has adequate resources to meet its liabilities as they fall due to 31 August 2024. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. |
Tangible fixed assets |
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land or assets in the course of construction, at rates calculated to write off the cost of each asset evenly over its expected useful life as follows: |
Leasehold and buildings | over 2 to 10 years on a straight line basis |
Plant and machinery | over 2 to 20 years on a straight line basis |
Fixtures and fittings | over 2 to 10 years on a straight line basis |
Computer equipment | over 3 to 7 years on a straight line basis |
The carrying values of tangible fixed assets are reviewed for impairment if events or changes in circumstances indicate the carrying value may not be recoverable. |
Dilapidations |
The Company is required to perform dilapidation repairs on leased properties prior to the properties being vacated at the end of their lease term. These amounts are based on estimates of the extent and cost of repairs to be completed. The non-current portion of these provisions is expected to be utilised within the next two to five years. |
LYLE & SCOTT LIMITED (REGISTERED NUMBER: 04111248) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2023 |
2. | Accounting policies - continued |
Stocks |
Stocks are stated at the lower of cost and net realisable value. Cost includes all costs incurred in bringing each product to its present location and condition, as follows: |
Finished goods - Purchase cost on a first-in, first-out basis |
Net realisable value is based on the estimated selling price less any further costs expected to be incurred to completion and disposal. |
Change in accounting policy for stock provision |
Effective 1 April 2022, the Company changed its accounting policy to provide for any stock more than three seasons old unless items have been reserved for an outlet store or a customer order has been placed, in both instances these will be excluded from the provision. |
Previously, a provision was made for any stock more than two seasons old unless items have been reserved for an outlet store or a customer order has been placed, in both instances these will be excluded from the provision. |
Derivatives |
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately. |
A derivative with a positive fair value is recognised as a financial asset whereas a derivative with a negative fair value is recognised as a financial liability. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences which are differences between taxable profits and total comprehensive income that arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements, with the following exceptions: |
- | deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. |
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date. |
Foreign currencies |
Transactions in foreign currency are initially recorded in the entity's functional currency by applying the spot exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of the exchange ruling at the balance sheet date. All differences are taken to the profit and loss account. |
Employee benefits |
The cost of short-term employee benefits are recognised as a liability and an expense. |
The estimated cost of any unused holiday entitlement at the end of the financial period is recognised. |
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. |
Pensions |
The company operates a defined contribution pension scheme. Contributions are charged in the profit and loss account as they become payable, in accordance with the rules of the scheme. |
LYLE & SCOTT LIMITED (REGISTERED NUMBER: 04111248) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2023 |
2. | Accounting policies - continued |
Dividends policy |
Interim and final dividends are proposed and agreed upon by the board of directors, and if a dividend is payable, it is recognised in equity when the cash is paid out. |
Impairment of non-financial assets |
The company assesses at each reporting date whether an asset may be impaired. If any such indication exists the company estimates the recoverable amount of the asset. If it is not possible to estimate the recoverable amount of the individual asset, the company estimates, the recoverable amount of the cash-generating unit to which the asset belongs. The recoverable amount is less than its carrying amount, the carrying amount of the asset impaired and it is reduced to its recoverable amount through an impairment in profit and loss unless the asset is carried at a revalued amount where the impairment loss of a revalued asset is a revaluation decrease. |
An impairment loss recognise for all assets, including goodwill, is reversed in a subsequent period if and only if the reasons for the impairment loss have ceased to apply. |
Leased assets |
Operating leases and the payments made under them are charged to the profit and loss account on a straight-line basis over the lease term. Lease incentives are recognised over the lease term on a straight-line basis. |
3. | Turnover |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom |
Rest of Europe | 45,839,131 | 38,702,686 |
Rest of the world | 1,596,250 | 2,278,860 |
Turnover, which is stated net of value added tax, represents the amounts derived from the provision of goods and services which fall within the company's ordinary activities. Income is recognised when substantially all risk and rewards of ownership are transferred to the customer, usually on the despatch of goods. |
4. | Employees and directors |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management and administration | 145 | 122 |
Operational | 2 | 2 |
Key management personnel |
Certain senior employees who have authority and responsibility for planning, directing and controlling the activities of the Company are considered to be key management personnel. Total remuneration in respect of these individuals is £725,387 (2022 - £796,217). |
LYLE & SCOTT LIMITED (REGISTERED NUMBER: 04111248) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2023 |
4. | Employees and directors - continued |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
5. | Operating profit |
This is stated after (crediting)/charging: |
2023 | 2022 |
£ | £ |
Royalty income | (1,971,441 | ) | (1,951,806 | ) |
Government grant income | - | (7,002 | ) |
Furlough grant income | - | (6,566 | ) |
Depreciation - owned assets | 667,114 | 651,494 |
Auditors' remuneration | 43,750 | 35,350 |
Operating lease rentals - land and buildings | 668,176 | 615,697 |
Operating lease rentals - plant and machinery | 1,076 | 8,465 |
Exchange differences | 1,923,929 | (613,337 | ) |
Profit on sale of tangible assets | (60,000 | ) | - |
6. | Exceptional items |
2023 | 2022 |
£ | £ |
Exceptional items | 9,336,952 | 3,599,236 |
In November 2021, a fire damaged one of the Company's third party warehouses and an amount of stock which was held there. The Company is fully insured for loss of stock and business interruption. |
Included within exceptional items are the insurance proceeds received in respect of the loss of stock and business interruption. The associated professional fees incurred for the claims are also included within exceptional items as expenditure. |
7. | Interest receivable and similar income |
2023 | 2022 |
£ | £ |
Deposit account interest |
8. | Interest payable and similar expenses |
2023 | 2022 |
£ | £ |
Bank interest |
LYLE & SCOTT LIMITED (REGISTERED NUMBER: 04111248) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2023 |
9. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
UK corporation tax has been charged at 19% (2022 - 19%). |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Movements in provisions | (49,750 | ) | 52,888 |
Deferred tax movement | 241,497 | 118,961 |
Total tax charge | 2,585,418 | 2,745,580 |
Factors affecting future tax changes |
The Finance (No.2) Act 2015 reduced the main rate of UK corporation tax to 19%, effective from 1 April 2017. A further reduction in the UK corporation tax rate to 17% was expected to come into effect from 1 April 2020 (as enacted by Finance Act 2016 on 15 September 2016). However, legislation introduced in the Finance Act 2020 (enacted on 22 July 2020) repealed the reduction of the corporation tax, thereby maintaining the current rate of 19%. Deferred taxes on the balance sheet have been measured at 25% (2022 - 25%) which represents the future corporation tax rate that was enacted at the balance sheet date. |
10. | Dividends |
2023 | 2022 |
£ | £ |
Ordinary G shares of £1 each |
Interim | 5,000,000 | 22,500,000 |
5,000,000 | 22,500,000 |
11. | Prior year adjustment |
The prior period financial statements have been restated to reflect stock in transit at the year end. The company took ownership of the stock at the point of shipping from the supplier. The adjustment has been made to increase the value of the closing stock by £1,036,614 and an increase in accruals of £1,036,614, there has been no impact on the profit and loss or retained earnings of the company. |
LYLE & SCOTT LIMITED (REGISTERED NUMBER: 04111248) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2023 |
12. | Tangible fixed assets |
Freehold | Computer | Plant and |
property | Software | machinery |
£ | £ | £ |
Cost |
At 1 April 2022 |
Additions |
Disposals | ( |
) |
At 31 March 2023 |
Depreciation |
At 1 April 2022 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 March 2023 |
Net book value |
At 31 March 2023 |
At 31 March 2022 |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
Cost |
At 1 April 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 March 2023 |
Depreciation |
At 1 April 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 March 2023 |
Net book value |
At 31 March 2023 |
At 31 March 2022 |
13. | Stocks |
2023 | 2022 |
£ | £ |
Raw materials |
Finished goods |
The difference in purchase price of stocks and their replacement cost is not material. |
Stocks recognised as an expense in the period were £41,682,979 (2022 - £34,705,857). |
LYLE & SCOTT LIMITED (REGISTERED NUMBER: 04111248) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2023 |
14. | Debtors: amounts falling due within one year |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
Financial Instrument Asset | - | 335,583 |
Prepayments |
15. | Creditors: amounts falling due within one year |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 17) |
Trade creditors |
Corporation Tax |
Social security and other taxes |
VAT | 806,772 | 293,944 |
Other creditors |
Accruals and deferred income |
Provisions |
16. | Creditors: amounts falling due after more than one year |
2023 | 2022 |
£ | £ |
Provisions |
Dilapidation | Total |
At 1 April 2022 |
Current | 85,931 | 85,931 |
Non-Current | 11,402 | 11,402 |
97,333 | 97,333 |
Arising during the year | 9,200 | 9,200 |
Utilised during the year | - | - |
At 31 March 2023 | 106,533 | 106,533 |
Analysed as: |
Current | 61,501 | 61,501 |
Non-Current | 45,032 | 45,032 |
106,533 | 106,533 |
Provisions relate to amounts provided for expected dilapidation costs on all leasehold properties at the end of lease agreements, with various dates of expiry, the latest date being 2027. |
LYLE & SCOTT LIMITED (REGISTERED NUMBER: 04111248) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2023 |
17. | Loans |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Included in bank loans is an amount of £2,673,231 which has been drawn down on a loan facility provided by Barclays Bank PLC. Repayments are due with terms as stated above and interest is charged at the bank's reference rate plus 1.75%". |
18. | Leasing agreements |
Future minimum rentals payable under non-cancellable operating leases are as follows: |
Land and Buildings | Other |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Not later than one year | 811,010 | 552,722 | 1,179 | 3,453 |
Later than one year and not later than five years |
1,169,046 |
807,288 |
2,358 |
- |
Later than five years | - | - | - |
1,980,056 | 1,360,010 | 3,537 | 3,453 |
19. | Financial instruments |
2023 |
2022as restated |
£ | £ |
Financial assets measured at amortised cost |
Trade debtors | 14,185,330 | 13,811,548 |
Financial assets at fair value through profit or loss |
Financial instrument asset | 642,516 | 335,583 |
Financial liabilities measured at amortised cost |
Trade creditors | 7,931,584 | 10,792,723 |
Financial liabilities at fair value through profit or loss |
Financial instrument liability | 1,700,543 | 450,009 |
20. | Provisions for liabilities |
2023 | 2022 |
£ | £ |
Deferred tax |
Decelerated capital allowances |
Capital gains held over |
Other timing differences | (16,157 | ) | (82,854 | ) |
301,217 | 59,720 |
Deferred tax |
£ |
Balance at 1 April 2022 |
Decelerated capital allowances | 174,800 |
Other timing differences | 66,697 |
Balance at 31 March 2023 |
LYLE & SCOTT LIMITED (REGISTERED NUMBER: 04111248) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2023 |
21. | Called up share capital |
2023 | 2023 | 2022 | 2022 |
No. | £ | No. | £ |
Allotted, called up and fully paid |
Ordinary shares of £1 each | 75,000 | 75,000 | 75,000 | 75,000 |
Ordinary "A" shares of £1 each | 1,400,000 | 1,400,000 | 1,400,000 | 1,400,000 |
Ordinary "B" shares of £1 each | 285,000 | 285,000 | 285,000 | 285,000 |
Ordinary "C" shares of £1 each | 95,000 | 95,000 | 95,000 | 95,000 |
Ordinary "D" shares of £1 each | 254 | 254 | 254 | 254 |
Ordinary "G" shares of £1 each | 25,000 | 25,000 | 25,000 | 25,000 |
1,880,254 | 1,880,254 | 1,880,254 | 1,880,254 |
On 4 July 2014, 950 "C" ordinary shares with aggregate nominal value of £950 were allocated for cash at £1.00 each. |
Equity shareholders were issued bonus shares totalling £478,050 in the following shares issues: |
- On 4 July 2014, 2,850 "B" ordinary shares with aggregate nominal value of £2,850 were allotted by way of bonus at £1.00 each. A total of £2,850 bonus shares issued. |
- On 4 July 2014, the Company issued Ordinary, Ordinary "B" and Ordinary "C" equity shareholders bonus shares at a rate of 99 shares for every 1 share held to be allotted from the Company's distributable reserves. (99,000 Ordinary shares, 282,150 Ordinary "B" shares and 94,050 Ordinary "C" shares). A total of £475,200 bonus shares issued. |
During 2015, the Company issued 1,400,000 Ordinary "A" shares of £1 each with £0.99 remaining unpaid on each share. |
During 2019, the Company reclassified 25,000 Ordinary shares of £1 each as 25,000 Ordinary "G" shares of £1 each. |
During 2021, the remaining £0.99 for the 1,400,000 Ordinary "A" shares was claimed and the Company issued 254 "D" shares of £1 each, at a premium of £49 per share, which was recognised in the Share Premium account. The 1,880,254 shares were transferred from the previous shareholders to Ellaness Holdings Limited. |
'A' Ordinary shares carry restricted voting rights, with no income rights. This class of share carries preferential rights to capital distributions of the Company including on a winding up. This class of share is non-redeemable and does not give rights to participate in any dividend or other distribution of the Company other than those expressly resolved to be distributed to the holders of the ordinary shares. |
'B' Ordinary shares carry one vote, with no income rights. This class of share carries subordinate rights to 20% of capital contributions of the Company including on winding up after aggregate distribution to holders of class 'A' Ordinary shares, 'C' Ordinary shares, 'D' Ordinary shares, 'E' Ordinary shares, 'F' Ordinary shares. This class of share is non-redeemable. |
'C' Ordinary shares carry one vote, with each share having subordinate rights to participate in 25% of any income distribution of the Company. This class of share carries subordinate rights to capital distributions of the Company including on a winding up. This class of share is non-redeemable. |
'D' Ordinary shares carry no voting rights. This class of share is not entitled to participate in any income distributions of the Company, including dividends. This class of share carries subordinate rights to participate in any capital distributions of the Company (including on a winding up). This class of share is non-redeemable. |
'G' Ordinary shares carry fifteen votes, with preferential rights to participate in any income distributions, including dividends declared on this class of share. This class of share has subordinate rights to participate in a distribution arising on a winding up of the Company and is not redeemable. |
22. | Immediate & ultimate controlling party |
The directors consider Ellaness Holdings Limited, a company registered in England and Wales and incorporated in Great Britain to be the ultimate controlling party. |
Consolidated accounts are available from 37 Kentish Town Road, London, NW1 8NX. |
LYLE & SCOTT LIMITED (REGISTERED NUMBER: 04111248) |
Notes to the Financial Statements - continued |
for the year ended 31 March 2023 |
23. | Contingent liabilities |
On 16 February 2022, Ellaness Holdings Limited and related company Lyle & Scott Limited entered into a cross guarantee securing overdraft facilities of Lyle & Scott Limited. |
24. | Pension commitments |
Defined contribution scheme |
Lyle & Scott Limited operates a defined contributions scheme for the benefit of its employees. The assets of the Scheme are held separately from those of the Company in an independently administered fund. The unpaid contributions outstanding at the year end, included within 'accruals and deferred income' (note 15) are £61,148 (2022 - £50,846). |
25. | Related party transactions |
During the year, the Company entered into the following transactions, in the ordinary course of business with other related parties. Transactions entered into, and trading balances outstanding at 31 March, are as follows: |
Entities where Andrew Stellakis has a significant influence (as a director of both Lyle & Scott and Quarks to Quasars) |
Purchases from related parties |
Trade creditor |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Quarks to Quasars Limited | 534,497 | 456,047 | 7,678 | 9,964 |
No disclosure has been made of transactions with other group undertaking since the consolidated financial statements of Ellaness Holdings Limited are publicly available from the address shown in Note 22. |