Registered number:
08130873
GYMSHARK LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
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GYMSHARK LTD
COMPANY INFORMATION
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G.S.H.Q Blythe Valley Park
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Chartered Accountants
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Statutory Auditor
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GYMSHARK LTD
CONTENTS
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Independent Auditors' Report
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Statement of Income and Retained Earnings
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Statement of Financial Position
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Notes to the Financial Statements
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GYMSHARK LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2020
The Directors present their strategic report for the year ended 31 July 2020.
Principal activities and Review of business
The Company's principal activity during the year was the Direct to Consumer ("D2C") e-commerce sales of conditioning apparel and associated accessories.
The Company continued to grow its sales and profit throughout the year across all its key territories worldwide. The focus for the business was to expand into key new markets by rolling out additional ecommerce websites, all focused around having a local execution plan & thus capitalising on the current established D2C model.
The Company recognises that attracting, developing and retaining talent, while growing the Company's unique culture, has been pivotal to the success of the brand and will continue to be paramount in the years to come.
The market remains competitive, including globally established sports & activewear brands through to fashion brands with fitness focused product lines. However, the Company continues to outperform the market and gain global market share.
The Directors of the Company closely monitor a range of KPI's.
KPI's relating to growth and profitability include: Revenue, which has increased by 48% to £260.7 million; gross profit margin was 68%; and profit before tax increased during the year from £18.4 million to £30.2 million.
Other KPI’s that are monitored in relation to the year ended 31 July 2020 show that:
Orders increased by 46%
Units sold increased by 49%
Conversion increased by 20 bps
International sales increased by 44%
Principal risks and uncertainties
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The fitness apparel market continues to be strong, with a broad range of competition amongst established sportswear brands, new entrants to the market, and fast fashion brands introducing "athleisure" wear and related accessories. Despite this, the Company's brand strength, innovative designs, community focus and localised customer proposition, establishes Gymshark as a key player in the market, with huge potential and growth forecast in the future. The risks associated with expanding overseas through the D2C model are managed through utilisation of in-house expert resource alongside key partnerships with third parties, with a focus on remaining "brave and smart".
Covid-19
The senior management of the company is actively managing the Covid-19 situation and constantly monitoring developments. Measures have been taken to ensure the safety of all staff with a majority having worked from home for the period from mid March, when the decision was made to close our offices to all but business critical staff. As our sales are through the D2C model, these have been unaffected by Covid-19.
Economic risk
The profitability of the Company can be influenced by global macroeconomic factors, including foreign exchange markets, duties and taxes imposed upon the Company's imports and exports, and any significant fluctuations in the cost of fuel used in transport and logistics. These risks are managed through establishing a natural hedge to minimise foreign exchange exposure, and operating distribution centres within the UK, EU and Canada to reduce imports and exports across borders.
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GYMSHARK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
Principal risks and uncertainties (continued)
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Political risk
The associated risks of Brexit continued in 2020. The Directors and the Company have devised a strategy to ensure reasonable management and mitigation of these risks, with a distribution centre in mainland Europe and assessing the supply chain where necessary. Whilst the outcome of Brexit is known, the Directors continue to stay informed and updated where possible, and obtain advice from internal and external resource to facilitate decision making when necessary to ensure any long term effects of Brexit are managed correctly.
Technology risk
Technology within e-commerce advances quickly, alongside increasing customer expectations of website user experience and functionality. The Company continues to invest heavily in the website, customer experience and IT infrastructure in the form of in-house resource and partnerships.
Legal risk
Resource has been dedicated to ensuring compliance with GDPR regulations in order to mitigate any risk arising from non-compliance, including penalties or reputational risk.
Currency risk
The Company transacts across a number of currencies, most notably Sterling, Dollar and Euro. It has income and expenditure in all currencies, therefore providing a natural hedge sufficient to reduce exposure to currency fluctuations. Any surplus foreign currency is sold into Sterling at a time that is convenient for the cashflows of the business, considering the political and economic environment at the time of transaction.
Credit risk
The Company's business is exclusively "D2C" online, whereby customers pay for their items at the time of order. This mitigates the risk of bad debts, and therefore the Directors consider this risk to be mitigated.
Liquidity risk
The Company is profitable and cash generative with adequate working capital available. The risk around liquidity is managed through a strong banking relationship alongside the availability of securing financing if required for expansion, such as asset financing.
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GYMSHARK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
Directors' statement of compliance with Section 172(1)
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S172(1) of the Companies Act sets out the duties of each Director of a company to act in the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of shareholders as a whole and in doing so, have regard to a number of broader matters which are set out below:
a) the likely consequences of any decision in the long term;
b) the interest of the company's employees;
c) the need to foster the company's business relationships with suppliers, customers and others;
d) the impact of the company's operations on the community and the environment;
e) the desirability of the company maintaining a reputation for high standards of business conduct;
f) the need to act fairly between members of the company.
The directors’ of Gymshark Limited make strategic decisions on behalf of the company and to manage the Company on a day to day basis. In making these decisions the directors will consider their legal duty and also the priorities and requirements of the shareholders of the parent company Gymshark Group Limited. The directors’ meet monthly to discuss and prioritise actions to benefit the Company and its stakeholders.
a) the likely consequences of any decision in the long term;
The directors’ make strategic decisions in areas such as structure of the business, current product ranges, research and development, supply chain, sustainability, IT infrastructure, IT tools and key internal processes. In taking these decisions the directors’ take into account UK laws and regulations and customer and employee needs and the short term and long term interests of the Company and its stakeholders.
The second half of the trading year for the company was dominated by the effects on the business of Covid-19. In making decisions in reaction to the pandemic, the directors had to consider the effect on our employees as a main priority but also on our suppliers to ensure that anything we decided to do did not have an adverse effect on them. Our view was that if we ensured the welfare of our staff and also protected as far as we could our suppliers this would help to protect the business so that when the pandemic was over we would be in a strong position. In making decisions during this period we wanted to be sure that we acted fairly and responsibly at all times. To that end we made a decision early in the pandemic not to furlough any staff, to pay our suppliers on time and also not to cancel orders that had been placed with suppliers.
b) the interest of the company's employees;
The directors' recognise that employee engagement and retention is one of the most important factors in the short term and long term success of the Company.
Gymshark is rapidly growing and we are building a community which is all about human connection and preparing for tomorrow. Our employees are a fundamental part of this community.
The health and wellbeing of our employees is a priority and we promote personal growth at every opportunity. We know that if we look after our team, our team will look after our community and each other.
We have many communication channels with our employees including a weekly pulse survey giving us real time engagement measures and feedback on what is, and isn't working and we respond to every piece of feedback received.
There are also quarterly updates to all employees by the directors' which covers a summary of important topics including company results, employee updates and wellbeing across Gymshark's various offices.
All employees are encouraged to undertake training provided by the company which is relevant to them personally or their role at Gymshark.
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GYMSHARK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
c) the need to foster the Company's business relationships with suppliers, customers and others;
Interaction with our customers and community is mainly through various social media platforms. These are monitored constantly gauging feedback regarding Gymshark and its products but also topics that are important to the Gymshark community.
The Gymshark Sourcing teams work collaboratively with our suppliers to ensure that we only use approved suppliers who comply with guidelines such as those issued by the Fair Labour Association. Our suppliers are subject to a standards audit before they can become approved suppliers and also regular audit thereafter.
All suppliers are paid in full and in accordance with agreed terms. During the period when much of the World was affected by Covid-19 restrictions which affected trading, we did not cancel any orders that had been placed with our suppliers and ensured that they were paid in full, on time.
d) the impact of the company's operations on the community and environment;
The company encourages each office to support local and national charities through regular fundraising events. As stated earlier in this report the company did not furlough any staff during the lockdown that began in March 2020. A number of staff whose time was not fully occupied during this period volunteered to help deliver prescription medicines for the NHS. In addition we ran the "Sweaty Selfie" campaign to raise funds for the Birmingham Women's and Children's Hospital NHS Trust by donating £5 for every photo loaded onto social media which raised a total of £180,000.
Gymshark has committed to be carbon neutral by 2030. Our sustainability commitment can be found online at this address
https://uk.gymshark.com/pages/transparency#planet
e) the desirability of the Company maintaining a reputation for high standards of business conduct;
The values and the culture that the business want all to follow are very important for us to maintain our standards and reputation.
• We are transparent. We know where we’re good, and we’re honest where we’re not. When the Covid-19 crisis
began in March 2020 we made a point of communicating regularly with our staff. This included updates on the
financial position of the company to allay any fears at what was a very unsettling time.
• We are trusted. Without trust it is not possible to maintain standards and reputation.
• We are accessible. There’s no question of who, where or why, to get close with our people, we need to get
close to our people.
• We are inclusive. We celebrate anyone, and everyone, working to positively impact themselves, others or the
world around them.
• We are caring. Community first, always.
• We are disruptive.
• We are family.
If employees have issues or concerns about non-compliance with any policies, laws or regulations these can be raised in confidence.
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GYMSHARK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
f) the need to act fairly between members of the company
Part of employee training comprises business ethics and reminds employees that the directors' require them to comply with the Company's high standards of corporate ethics and the need to act fairly between members of the company.
Until the investment by General Atlantic in September 2020, Gymshark Limited was a wholly owned subsidiary of Clade Group Limited. All shareholders in the parent company benefitted from the same rights, as set out in the Company's articles of association and received a regular update on the financial performance of Gymshark Limited.
The interests of all shareholders were considered as part of the Board's decisions throughout the year.
In September 2020 General Atlantic (“GA”) acquired a 21% investment in the Gymshark Group. GA were chosen because of their Worldwide network, experience and for the way that they understood Gymshark to be best placed to help the Company achieve its ambitions for the future.
The Directors expect the performance of the Company to increase in the forthcoming year, including increasing revenue, orders and customer numbers. This is as a result of the Company continuing to expand the D2C model through further e-commerce websites with localised execution, alongside consumer demand for the brand and innovative, on trend products.
Investment will continue in increasing resource, as well as developing and retaining talent with a focus upon health and wellbeing. The Directors recognise the importance of employee wellbeing for the business and individual, therefore this is a focus for the Company in 2021 and beyond.
Tangible developments are intended to provide world-class facilities to the Company to enable research and development, increased innovation and additional cutting-edge creative output. During the year the company invested £543,664 (2019: £457,348) in R & D Expenditure.
Overseas developments in the forthcoming year includes expanding into new markets though the roll out of international e-commerce stores and the opening of additional distribution centres in the USA and Australia.
This report was approved by the board on
31 March 2021
and signed on its behalf.
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GYMSHARK LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2020
The directors present their report and the financial statements for the year ended
31 July 2020
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Directors' responsibilities statement
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The directors are responsible for preparing the Strategic Report, the Directors' Report and the
financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year
. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
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select suitable accounting policies for the Company's financial statements and then apply them consistently;
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make judgments and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 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.
Disclosure of information in the strategic report
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In preparing the Directors' report, the directors have complied with S414C (11) of the Companies Act 2006 by including certain disclosures required by S416(4) within the Strategic Report which are future developments, research and development and business relationships.
The profit for the year, after taxation, amounted to £24.4m
(2019 -
£
15.0m).
The directors have recommended the payment of dividends totalling £2.6m (2019: Nil).
The directors who served during the year were:
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GYMSHARK LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
The Directors support the participation of employees in the activities of the company, encourage employees to become involved in the pursuit of safety, efficiency and high performance, and provide employees with regular communication on the company's plans, performance and figures.
The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person.
Where existing employees become disabled, it is the company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees where appropriate.
Charitable donations during the year totalled £360,000. There were no political donations.
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GYMSHARK LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
Streamlined Energy and Carbon Reporting (SECR)
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Gymshark Ltd appointed Carbon Footprint Ltd, a leading carbon and energy management company, to independently assess its Greenhouse Gas (GHG) emissions in accordance with the UK Government’s ‘Environmental reporting guidelines: including Streamlined Energy and Carbon Reporting requirements’.
The assessment has used the 2020 emission conversion factors published by Department for Environment, Food and Rural Affairs (Defra) and the Department for Business, Energy & Industrial Strategy (BEIS). The assessment follows the ISO14054-1 methodology and the financial control approach has been used.
Total energy consumption including Air, Sea and Lorry freight, energy consumption, Company and employee owned vehicles for all Gymshark companies worldwide was as follows:
Total tonnes of CO2e 26,582
Tonnes of CO2e per employee 54
Tonnes of CO2e per £M of turnover 103
Total Energy Consumption (kWh) 1,581,354
The table summarises the GHG emissions for the year ended 31st July 2020. As a business we have been assessing our carbon emissions since 2017, however we have increased the scope of the assessment this year to include the emissions associated with our customer deliveries. Gymshark have therefore chosen to set this assessment as our baseline year for all future assessments to be compared to. Over the course of the next year Gymshark will be looking at options to reduce its energy consumption along with the associated carbon emissions, as well as setting longer term targets for carbon reduction.
The company was already aware that final mile air freight emissions were the most significant contributor to Gymshark’s carbon footprint. In 2019 the decision was made to open 3 new distribution centres (“DC”) in North America to improve the service that our customers receive but also to reduce the carbon footprint on sales into what is a substantial market for Gymshark. The first DC opened in Canada in October 2019 and the plan was to open 2 further DC’s in the USA in mid 2020. Unfortunately the global Covid-19 pandemic stopped us from opening these 2 DC’s as planned and they will now both open before 31 July 2021.
During 2020 a great deal of time and resource has been put into improving sales forecasting. The company also now has a specialist logistics team who, based on the improved sales forecasting, can plan stock delivery more efficiently into the various DC’s around the World with the aim of reducing the stock being shipped from manufacturers by air freight. This will also reduce air freight emissions in the future.
Going forward as the World emerges from the global Covid-19 pandemic, Gymshark will be evaluating a number of things including what in future will be classified as essential business travel. The effective use of remote meetings can reduce travel requirements which will directly impact the Gymshark carbon footprint in the future.
The company is exempt from reporting comparative SECR data at 31 July 2020 as this is the first year that the company is required to report under the SECR provisions. 31 July 2020 will form the company’s base year and will form a comparative for reporting at 31 July 2021.
Disclosure of information to auditors
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Each of the persons who are
directors at the time when this Directors' Report is approved has confirmed that:
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so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
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the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
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GYMSHARK LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
Post balance sheet events
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As referred to in the Strategic Report, in September 2020 General Atlantic acquired a 21% investment in Gymshark Group Limited, the ultimate parent company of Gymshark Limited.
The auditors,
Mazars LLP
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section 485 of the Companies Act 2006.
This report was approved by the board on
31 March 2021
and signed on its behalf.
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GYMSHARK LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GYMSHARK LTD
Opinion
We have audited the financial statements of Gymshark Ltd (the ‘Company’) for the year ended 31 July 2020 which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position 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 FRS 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:
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give a true and fair view of the state of the Company’s affairs as at 31 July 2020 and of its
profit for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
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the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
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the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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GYMSHARK LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GYMSHARK LTD
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of directors' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of Directors
As explained more fully in the directors' responsibilities statement set out on page 6, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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GYMSHARK LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GYMSHARK LTD
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 auditor’s report.
Use of the audit report
This report is made solely to the Company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the company's members as a body for our audit work, for this report, or for the opinions we have formed.
Ian Holder
(Senior statutory auditor)
for and on behalf of
Mazars LLP
Chartered Accountants and Statutory Auditor
Two Chamberlain Square
Birmingham
B3 3AX
31 March 2021
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GYMSHARK LTD
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JULY 2020
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Interest receivable and similar income
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Interest payable and expenses
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Profit for the financial year and total comprehensive income
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Retained earnings at the beginning of the year
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Dividends declared and paid
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Retained earnings at the end of the year
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The notes on pages 15 to 35 form part of these financial statements.
All the activities of the company are from continuing operations.
There is no comprehensive income or expenses other than the profit for the financial year and the preceding financial year and dividends. Accordingly, no statement of comprehensive income is given.
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GYMSHARK LTD
REGISTERED NUMBER:
08130873
STATEMENT OF FINANCIAL POSITION
AS AT
31 JULY 2020
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf on
31 March 2021
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The notes on pages 15 to 35 form part of these financial statements.
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GYMSHARK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
Gymshark Ltd is a private company limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and registered in England and Wales with the registered number 08130873. The address of the registered office is GSHQ, Blythe Valley Park, 3 Central Boulevard, Solihull, B90 8AB.
The nature of the Company's operations and principal activities are set out in the Strategic Report on page 1.
2.
Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
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The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The financial statements have been prepared on a going concern basis. The Company has sufficient financial resources to ensure its operational existence for the foreseeable future and the Directors forecast strong revenue and profit growth in 2021 and beyond. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
The directors are actively managing and monitoring the Covid-19 situation. Since March 2020 a majority of employees have been working from home. Sales and deliveries to customers have been unaffected by the impact of Covid-19, whilst inbound stock deliveries have been received as scheduled. The directors are confident the company will be in a strong position when the Covid-19 pandemic is over.
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Exemption from preparing statement of cash flows
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Under FRS102 (section 1.12), the company is exempt from the requirement to present a statement of cash flows and related notes on the grounds that its parent company (Clade Group Limited) includes the company's cash flows in its own consolidated financial statements. This information is included in the consolidated financial statements of Clade Group Limited as at 31 July 2020 and these financial statements may be obtained from the registered office.
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Exemption from preparing consolidated accounts
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The Company has taken advantage of the exemption available under Section 400 of the Companies Act 2006 from preparing Consolidated Accounts, as it is a wholly owned subsidiary of Clade Group Ltd, a company registered in the United Kingdom which itself prepares consolidated financial statements that are publicly available.
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GYMSHARK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
2.
Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Income and Retained Earnings
except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of Income and Retained Earnings within 'other operating income'.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙
the Company has transferred the significant risks and rewards of ownership to the buyer;
∙
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙
the amount of revenue can be measured reliably;
∙
it is probable that the Company will receive the consideration due under the transaction; and
∙
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
|
GYMSHARK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
2.
Accounting policies (continued)
|
|
Operating leases: the Company as lessee
|
Rentals paid under operating leases are charged to the Statement of Income and Retained Earnings on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
The Company has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard 01 August 2018 to continue to be charged over the period to the first market rent review rather than the term of the lease.
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years.
The expected useful economic life of development costs are estimated based on business plans which set out the development plan and time to market for the associated project.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
Interest income is recognised in the Statement of Income and Retained Earnings using the effective interest method.
Finance costs are charged to the Statement of Income and Retained Earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in the Statement of Income and Retained Earnings in the year in which they are incurred.
|
GYMSHARK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
2.
Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Income and Retained Earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
|
|
Current and deferred taxation
|
The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that:
∙
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
|
GYMSHARK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
2.
Accounting policies (continued)
Intangible assets are initially recognised at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.
Intangible assets acquired as part of a business combination are recorded at the fair value at the acquisition date.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
A change in accounting estimate was carried out in the year with regards to the useful economic life of Software & IT. This change in accounting estimate has been applied prospectively and resulted in an increase in amortisation charge of £210,000 in comparison to 2019.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Income and Retained Earnings.
|
GYMSHARK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
2.
Accounting policies (continued)
Investments in subsidiaries are measured at cost less accumulated impairment.
Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of Income and Retained Earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
|
|
Impairment of fixed assets
|
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first outbasis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
|
|
Cash and cash equivalents
|
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
|
GYMSHARK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
2.
Accounting policies (continued)
|
|
Assets held under finance leases
|
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
|
|
Provisions for liabilities
|
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of Income and Retained Earnings in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Investments in non-derivative instruments that are equity to the issuer are measured:
∙
at fair value with changes recognised in the Statement of Income and Retained Earnings if the shares are publicly traded or their fair value can otherwise be measured reliably;
∙
at cost less impairment for all other investments.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Income and Retained Earnings.
|
GYMSHARK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
2.
Accounting policies (continued)
|
|
Financial instruments (continued)
|
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
|
Critical accounting judgements and key sources of estimation uncertainty
|
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Below are the key sources of estimation uncertainty listed by management:
Stock obsolescence provision
Stock held at the balance sheet date is assessed for impairment by the directors. All stock which is considered out of season, succeeded by an updated product or considered to have quality concerns is written down to the lower of cost or net realisable value. Stock items with a cover of more than one year are reviewed for impairment and written down accordingly. During the year, stock write off to fair value less costs to sell totalled £1.3m (2019: £0.5m).
Refunds provision
Revenue from the sale of goods is recognised when the Company sells a product to the customer. Payment of the transaction price is due immediately when the customer purchases the goods and it is the Company’s policy to sell its products to the end customer with a right of return within 90 days. Therefore, a refund liability (included in creditors due within one year) is recognised for expected refunds in relation to sales made until the end of the reporting period. Accumulated experience is used to estimate such returns at the time of sale at a portfolio level (expected value method), and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. The validity of this assumption and the estimated amount of returns are reassessed at each reporting date.
|
GYMSHARK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
|
|
|
An analysis of turnover by class of business is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
No geographical analysis of turnover is given as in the opinion of the directors, such information would be seriously prejudicial to the interests of the company.
|
|
|
|
The operating profit is stated after charging/(crediting):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortisation of intangible assets
|
|
|
|
Depreciation of tangible assets
|
|
|
|
Foreign exchange differences
|
|
|
|
|
|
|
|
|
|
|
|
Fees payable to the Company's auditor for the audit of the Company's annual financial statements
|
|
|
|
The Company has taken advantage of the exemption not to disclose amounts paid for non audit services as these are disclosed in the group accounts of the parent Company.
|
|
GYMSHARK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
|
|
|
Staff costs, including directors' remuneration, were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
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|
Cost of defined contribution scheme
|
|
|
|
|
|
|
|
|
|
|
|
The average monthly number of employees, including the directors, during the year was as follows:
|
|
During the year, key management personnel were remunerated a total of £7.32m (2019: £6.47m).
|
|
The highest paid director received remuneration of £
1.83m
(2019 - £
1.85m
)
.
|
|
The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £
28,000
(2019 - £
28,000
)
.
|
|
During the year retirement benefits are accruing to 4 (2019 - 4) directors under money purchase schemes.
|
|
GYMSHARK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
|
Interest on loans and receivables
|
|
|
|
|
|
|
|
Interest payable and similar expenses
|
|
|
|
|
|
|
|
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|
|
Other loan interest payable
|
|
|
|
Finance leases and hire purchase contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current tax on profits for the year
|
|
|
|
Adjustments in respect of previous periods
|
|
|
|
|
|
|
|
|
|
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|
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|
Origination and reversal of timing differences
|
|
|
|
|
|
|
|
|
|
|
|
Taxation on profit on ordinary activities
|
|
|
|
GYMSHARK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
11.
Taxation (continued)
|
Factors affecting tax charge for the year
|
|
The tax assessed for the year is lower than
(2019 - lower than)
the standard rate of corporation tax in the UK of
19
%
(2019 -
19
%)
. The differences are explained below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit on ordinary activities before tax
|
|
|
|
Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2019 - 19%)
|
|
|
|
|
|
|
|
Adjustments to tax charge in respect of prior periods
|
|
|
|
Effect of expenses not deductible for tax purposes
|
|
|
|
Effect of capital allowances and depreciation
|
|
|
|
Effect of qualifying donations
|
|
|
|
Under/(over) provision of tax expense relating to prior year R&D claim
|
|
|
|
Total tax charge for the year
|
|
|
|
Factors that may affect future tax charges
|
There were no factors that may affect future tax charges.
|
Dividends paid at £13,000 per share (2019 - £Nil).
|
|
GYMSHARK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge for the year on owned assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GYMSHARK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
|
|
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|
|
|
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|
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|
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|
|
|
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|
|
|
Charge for the year on owned assets
|
|
|
|
|
|
|
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|
The Company has leased plant and machinery on terms which are considered to meet the definition of finance leases and are accounted for accordingly. These assets together with those assets subject to hire purchase have a cost of £2.2m (2019: £2.2m) and net book value of £0.3m (2019: £1.1m).
|
|
GYMSHARK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
|
|
|
The cost of shares in group undertakings is £82 (2019: £82).
|
|
|
|
|
|
|
|
|
The following were subsidiary undertakings of the Company:
|
|
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|
|
|
|
|
Room 2901, 29/F, Manhattan Place, 23 Wang Tai Road, Kowloon Bay, Hong Kong
|
|
|
|
|
1675 South State St, Suite B, Dover, Delaware 19901
|
|
|
|
|
|
|
Aggregate of share capital and reserves
|
|
|
|
|
|
|
In 2018, the company acquired 100% of the share capital in Gymshark HK Ltd, a company incorporated in Hong Kong SAR, whose registered office is, Room 2901, 29/F, Manhattan Place, 23 Wang Tai Road, Kowloon Bay, Hong Kong. The shares were acquired for £0.10 (1 Hong·Kong Dollar). This company commenced to trade in 2019 providing stock and supplier sourcing services to Gymshark Limited.
During 2019 the company acquired 100% of the share capital of Gymshark USA Inc, a company incorporated in the USA whose registered office is 1675 South State St, Suite B, Dover, Delaware 19901, for the total consideration of $100 (£82). The company commenced to trade during the year ended 31 July 2020 providing support services to Gymshark Limited.
|
|
GYMSHARK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
|
|
|
|
|
|
|
|
|
Amounts owed by group undertakings
|
|
|
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
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|
|
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|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
Creditors: Amounts falling due within one year
|
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|
|
|
|
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|
|
Other taxation and social security
|
|
|
|
Obligations under finance lease and hire purchase contracts
|
|
|
|
|
|
|
|
Accruals and deferred income
|
|
|
|
|
|
|
|
|
|
|
|
GYMSHARK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
|
Creditors: Amounts falling due after more than one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net obligations under finance leases and hire purchase contracts
|
|
|
|
|
|
|
|
|
|
|
|
The Bank loan is secured by a fixed and floating charge over the assets of the company and a cross guarantee from it's parent company Clade Group Ltd. Interest is payable on the loan at 1.25% over LIBOR and is repayable in March 2022.
|
|
|
|
Analysis of the maturity of loans is given below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts falling due within one year
|
|
|
|
|
|
|
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|
Amounts falling due 1-2 years
|
|
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|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
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|
|
Hire purchase and finance leases
|
|
Minimum lease payments under hire purchase fall due as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Later than 1 year and not later than 5 years
|
|
|
|
|
|
|
|
GYMSHARK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
|
|
|
The carrying values of the company's financial assets and liabilities are summarised by category below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured at undiscounted amount receivable
|
|
|
|
Trade and other receivables (note 17)
|
|
|
|
|
|
|
|
|
|
|
|
Measured at amortised cost
|
|
|
|
|
|
|
|
Obligations under finance leases and hire purchase contracts (note 22)
|
|
|
|
Measured at undiscounted amount payable
Trade and other creditors (note 19)
|
|
|
|
|
|
|
|
GYMSHARK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
Charged to profit or loss
|
|
|
|
|
|
|
|
|
The provision for deferred taxation is made up as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accelerated capital allowances
|
|
|
|
|
Allotted, called up and fully paid
|
|
|
|
|
|
|
|
|
|
190
(2019 -
190
)
Ordinary A
shares of £
0.01
each
|
|
|
|
|
10
(2019 -
10
)
Ordinary B
shares of £
0.01
each
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The A shares rank pari passu in all respects to the B shares.
|
Profit and loss account
This reserve records retained earnings and accumulated losses.
The company had capital commitments for plant and machinery of £0.4m (2019: £1.6m).
|
GYMSHARK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £663k (2019: £458k).
Contributions totalling £114k (2019: £68k) were payable to the scheme at the end of the year and are included in other creditors.
|
Commitments under operating leases
|
|
At 31 July 2020 the Company had future minimum lease payments under non-cancellable operating leases as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Related party transactions
|
As a qualifying entity under FRS102 the entity is able to take advantage of the disclosure exemption under the requirements of Section 33 Related Party Disclosures paragraph 33.7.
|
GYMSHARK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
The company is a wholly owned subsidiary of Clade Group Limited, a company incorporated in England. The ultimate parent company is Gymshark Group Limited, also incorporated in England, which is under the control of Mr B Francis who is a director and the majority shareholder.
Clade Group Limited is the smallest and largest group of undertakings that the results of Gymshark Limited are consolidated into as at 31 July 2020 as the first accounts on incorporation for Gymshark Group Limited will be for the period ended 31 July 2021.
The address of the registered office of Clade Group Limited is GSHQ, Blythe Valley Park, 3 Central Boulevard, Solihull, B90 8AB. Copies of the consolidated accounts for which Gymshark Ltd is a qualifying undertaking can be obtained from the registered office.
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