Company Registration No. 11258861 (England and Wales)
ISAIA UK PRIVATE LIMITED
(FORMERLY DESERT ROSE RETAIL PRIVATE LIMITED)
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2020
PAGES FOR FILING WITH REGISTRAR
ISAIA UK PRIVATE LIMITED
(FORMERLY DESERT ROSE RETAIL PRIVATE LIMITED)
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 9
ISAIA UK PRIVATE LIMITED
(FORMERLY DESERT ROSE RETAIL PRIVATE LIMITED)
BALANCE SHEET
AS AT
31 DECEMBER 2020
31 December 2020
- 1 -
31 December 2020
31 March 2020
Notes
£
£
£
£
Fixed assets
Intangible assets
3
6,418
Tangible assets
4
797,789
912,982
797,789
919,400
Current assets
Stocks
908,786
1,113,625
Debtors
5
355,610
357,081
Cash at bank and in hand
31,315
11,633
1,295,711
1,482,339
Creditors: amounts falling due within one year
6
(1,087,839)
(3,617,289)
Net current assets/(liabilities)
207,872
(2,134,950)
Total assets less current liabilities
1,005,661
(1,215,550)
Creditors: amounts falling due after more than one year
7
(121,852)
(82,713)
Net assets/(liabilities)
883,809
(1,298,263)
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
883,709
(1,298,363)
Total equity
883,809
(1,298,263)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 22 March 2022 and are signed on its behalf by:
E Magaraci
Director
Company Registration No. 11258861
ISAIA UK PRIVATE LIMITED
(FORMERLY DESERT ROSE RETAIL PRIVATE LIMITED)
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 2 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2019
100
(572,443)
(572,343)
Period ended 31 March 2020:
Loss and total comprehensive income for the period
-
(725,920)
(725,920)
Balance at 31 March 2020
100
(1,298,363)
(1,298,263)
Period ended 31 December 2020:
Profit and total comprehensive income for the period
-
2,182,072
2,182,072
Balance at 31 December 2020
100
883,709
883,809
ISAIA UK PRIVATE LIMITED
(FORMERLY DESERT ROSE RETAIL PRIVATE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 3 -
1
Accounting policies
Company information
Isaia UK Private Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Acre House, 11-15 William Road, London, United Kingdom, NW1 3ER.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
This is the company's third period of trading. The Covid-19 pandemic caused significant disruption to the company's business. Government restrictions caused a significant drop in sales and a trading loss. The sale of the company to ISAIA é ISAIA S.P.A. shortly after the year end, benefited the company as loans owed to the previous parent company of £3,034,672 were waived. However, the disruption caused by Covid-19 has continued post year-end and forecasts for both financial years 2021 and 2022 show losses persisting, indicating that there are material uncertainties over the future prospects of the business.
The new parent company has provided an undertaking that it will provide financial support to the company for a period of at least 12 months from the date of approval of these financial statements. Although, based on projections, the new parent company is of the opinion that they have sufficient resources to provide such support, the group as a whole has faced trading difficulties and there are uncertainties over the availability of this support.
Notwithstanding these uncertainties, the directors have a reasonable expectation that the company will have adequate resources to continue in operational existence for the foreseeable future and have continued to adopt the going concern basis in preparing the financial statements
1.3
Reporting period
The current reporting period is the period from 01 April 2020 to 31 December 2020. The prior period comparatives are for the reporting period from 01 April 2019 to 31 March 2020.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business
, and
is shown net of VAT
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on sale of the goods).
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
5 years
ISAIA UK PRIVATE LIMITED
(FORMERLY DESERT ROSE RETAIL PRIVATE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 4 -
1.6
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
15 years
Master Garment
3 - 5 years
Fixtures and fittings
25% Straight line
Computers
33.33% Straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.7
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally 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.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
ISAIA UK PRIVATE LIMITED
(FORMERLY DESERT ROSE RETAIL PRIVATE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans
and
loans from
fellow group companies, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of
direct issue
costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants, which include amounts received under the Coronavirus Job Retention Scheme, are recognised at the fair value of the grant received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. The income is recognised in other income on a systematic basis over the periods in which the associated costs are incurred, using the accrual model.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
ISAIA UK PRIVATE LIMITED
(FORMERLY DESERT ROSE RETAIL PRIVATE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 6 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the Period was 7 (31 March 2020 - 7).
31 December 2020
31 March 2020
Number
Number
Total
7
7
3
Intangible fixed assets
Software
£
Cost
At 1 April 2020
8,701
Disposals
(8,701)
At 31 December 2020
Amortisation and impairment
At 1 April 2020
2,283
Amortisation charged for the Period
1,305
Disposals
(3,588)
At 31 December 2020
Carrying amount
At 31 December 2020
At 31 March 2020
6,418
ISAIA UK PRIVATE LIMITED
(FORMERLY DESERT ROSE RETAIL PRIVATE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 7 -
4
Tangible fixed assets
Leasehold improvements
Master Garment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 April 2020
759,172
27,337
331,039
31,939
1,149,487
Additions
1,033
1,033
At 31 December 2020
760,205
27,337
331,039
31,939
1,150,520
Depreciation and impairment
At 1 April 2020
77,204
16,990
127,180
15,131
236,505
Depreciation charged in the Period
39,338
6,834
62,070
7,984
116,226
At 31 December 2020
116,542
23,824
189,250
23,115
352,731
Carrying amount
At 31 December 2020
643,663
3,513
141,789
8,824
797,789
At 31 March 2020
681,968
10,347
203,859
16,808
912,982
5
Debtors
31 December 2020
31 March 2020
Amounts falling due within one year:
£
£
Trade debtors
17,238
17,184
Other debtors
10,649
10,649
Prepayments and accrued income
8,223
9,748
36,110
37,581
31 December 2020
31 March 2020
Amounts falling due after more than one year:
£
£
Other debtors
319,500
319,500
Total debtors
355,610
357,081
ISAIA UK PRIVATE LIMITED
(FORMERLY DESERT ROSE RETAIL PRIVATE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 8 -
6
Creditors: amounts falling due within one year
31 December 2020
31 March 2020
£
£
Bank loans
5,831
Trade creditors
54,454
40,764
Amounts owed to group undertakings
3,134,976
Taxation and social security
94,964
39,055
Other creditors
621,937
367,960
Accruals and deferred income
310,653
34,534
1,087,839
3,617,289
Bank loans relate to letters of credit utilised by the company and are secured against all the client's deposits held with the bank by way of a fixed charge, incurring interest at 2.75% per annum.
Accruals and deferred income include an accrual for rent charges of £266,250 for the period. Post year end the company renegotiated the terms of their lease which resulted in a peppercorn rent being payable for the period to 31 December 2020.
7
Creditors: amounts falling due after more than one year
31 December 2020
31 March 2020
Notes
£
£
Bank loans and overdrafts
44,169
Accruals and deferred income
77,683
82,713
121,852
82,713
8
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
31 December 2020
31 March 2020
£
£
4,544,973
4,812,438
9
Related party transactions
Remuneration of key management personnel
Sales to a former director of the company, and his family amounted to £2,093 (March 2020: £89,364). Sales to this director and his family members receive discounts which vary from 10% to 30%.
ISAIA UK PRIVATE LIMITED
(FORMERLY DESERT ROSE RETAIL PRIVATE LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2020
- 9 -
10
Ultimate controlling party
At the year end the company's ultimate controlling party was Tulip Park PTE. Ltd, which is incorporated in Singapore. Tulip Park PTE. Ltd prepares group accounts, copies of which can be obtained from 6 Battery Road, #10-01, Singapore (049909).
After the year end the company was sold and the ultimate parent company changed to Isaia E Isaia s.p.a., a company registered in Italy.
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
Material uncertainty
relat
ed
to going concern
We draw attention to note 1.2 in the financial statements which describes the impact of the Covid-19 pandemic on the company, and its reliance on the financial support of its new parent company. These events or conditions, along with the other matters as set forth in note 1.2, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
The senior statutory auditor was Gilles Siow.
The auditor was HW Fisher LLP.
2020-12-31
2020-04-01
false
22 March 2022
CCH Software
CCH Accounts Production 2021.300
No description of principal activity
This audit opinion is unqualified
I A Shpiro
H S Mendhi
G Isaia
E Magaraci
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