47 Brand Europe Limited - Accounts to registrar (filleted) - small 18.1

REGISTERED NUMBER: 07567616

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017

FOR

47 BRAND EUROPE LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

S D'Angelo

D D'Angelo

REGISTERED OFFICE:

11th Floor, Whitefriars

Lewis Mead

Bristol

BS1 2NT

REGISTERED NUMBER:

07567616

AUDITORS:

Corrigan Accountants Limited

Statutory Auditor

The Tramshed

25 Lower Park Row

Bristol

BS1 5BN

FIXED ASSETS

Tangible assets

4

17,458

15,586

CURRENT ASSETS

Stocks

5

335,115

335,655

Debtors

6

1,243,154

809,759

Cash at bank

2,255,481

1,535,826

3,833,750

2,681,240

CREDITORS

Amounts falling due within one year

7

(4,956,124

)

(4,008,153

)

NET CURRENT LIABILITIES

(1,122,374

)

(1,326,913

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(1,104,916

)

(1,311,327

)

CAPITAL AND RESERVES

Called up share capital

9

1

1

Retained earnings

(1,104,917

)

(1,311,328

)

SHAREHOLDERS' FUNDS

(1,104,916

)

(1,311,327

)

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Statement of profit and loss has not been delivered.

The financial statements were approved and authorised for issue by the Board of Directors on 1 May 2019 and were signed on its behalf by:

S D'Angelo - Director

1.	STATUTORY INFORMATION

47 Brand Europe Limited is a private company, limited by shares , registered in Not specified/Other. The company's registered

number and registered office address can be found on the Company Information page.

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

2.	ACCOUNTING POLICIES

Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have

been consistently applied to all the years presented, unless otherwise stated.

Going concern

The company's financial statements have been prepared on a going concern basis on the grounds that current and future sources

of funding or support will be more than adequate for the company's needs. The directors have considered a period of twelve

months from the date of approval of the financial statements. The company is reliant on the ongoing support of the wider group

to be able to meet liabilities as they fall due £4,703,689 (2016: £4,003,823) was owed to the parent company at the year end. The

directors of the company have received confirmation from the parent company that the parent will continue its support for a

period no shorter than twelve months from the date of approval of these financial statements. Accordingly, these financial

statements have been prepared on the going concern basis.

Basis of preparing the financial statements and statement of compliance

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial

Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies

Act 2006. The financial statements have been prepared under the historical cost convention.

Revenue recognition

Revenue consists of the sale of apparel and accessories.

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the

company's activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when:

The amount of revenue can be reliably measured;

it is probable that future economic benefits will flow to the entity;

and specific criteria have been met for each of the company's activities.

Tangible fixed assets

Tangible fixed assets held for the company's own use, are stated at cost less accumulated depreciation and accumulated

impairment losses.

Depreciation is provided on all tangible fixed assets to write off the cost less estimated residual value of each asset over its

estimated useful life. The rated used are:

Plant and machinery - 25% reducing balance.

Tax

The tax expense represents the sum of the current tax expense and deferred tax expense. Tax is recognised in profit or loss,

except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised

directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted

by the reporting date.

Deferred tax

Deferred corporation tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their

carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred corporation tax is

determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against

deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on

current or future taxable profits.

Foreign currencies

Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Monetary

assets and liabilities denominated in foreign currencies are retranslated into sterling at the rates of exchange ruling at the balance

sheet date. Exchange differences are taken into account in arriving at the operating result.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases.

Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has

no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all

employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as an employee benefit expense when they are due.

Employee Benefits

The costs of short-term employee benefits are recognised as a liability and an expense. The cost of any unused holiday

entitlement is recognised in the period in which the employees' services are received.

Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term deposits.

Short-term debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any

losses arising from impairment of debtors are recognised in the Statement of profit and loss in other administrative.

Stocks

Stocks are stated at the lower of cost and estimated selling price less cost to complete and sell. Cost is determined using the

first-in, first-out (FIFO) method.

The cost of goods for resale comprises direct cost and, where applicable, those overheads that have been incurred in bringing the

inventories to their present location and condition. At each report date, stocks are assessed for impairment.

If stocks are impaired, the carrying amount is reduced to its selling price less cost to complete and sell; the impairment loss is

recognised immediately in profit and loss.

Prior period adjustment

The results for the year to 31 December 2016 have been restated from those previously reported. Royalty costs of £849,179 were

previously reported within administrative expenses in the statement of profit and loss. The 2016 results have been restated so that

the costs are shown within cost of sales. The revised presentation reflects more accurately the nature of the underlying costs.

This restatement has no impact on either net profit for 2016 or on reserves brought forward as at 1 January 2017.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 5 (2016 - 4 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

Cost

At 1 January 2017

35,512

Additions

18,231

At 31 December 2017

53,743

Depreciation

At 1 January 2017

19,926

Charge for year

16,359

At 31 December 2017

36,285

Net book value

At 31 December 2017

17,458

At 31 December 2016

15,586

5.

STOCKS

2017

2016

£

£

Stocks

335,115

335,655

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

1,195,848

791,833

Other debtors

40,856

10,069

Prepayments

6,450

7,857

1,243,154

809,759

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade creditors

86,916

101

Amounts owed to group undertakings

4,703,689

4,003,823

Tax

2,247

-

Social security and other taxes

16,137

-

Other creditors

-

4,229

Accrued expenses

147,135

-

4,956,124

4,008,153

The 2016 balance sheet has been restated from that previously reported. The amounts shown above as owed to group

undertakings were previously shown as due after more than one year. The restated presentations reflects more accurately the

maturity of the liability.

8.	LEASING AGREEMENTS

The total of future minimum lease payments is as follows:

2017

2016

£

£

Operating lease commitments

56.250

-

56,250

-

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2017

2016

value:

£

£

1

Ordinary

1

1

1

10.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

As the profit and loss account 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 audit report was unqualified.

- The senior statutory auditor was Stuart Crisp FCA.

- The auditor was Corrigan Accountants Limited.

11.	ULTIMATE CONTROLLING PARTY

Twins Enterprise Inc. (incorporated in United States of America) is regarded by the directors as being the company's ultimate

parent company.

The largest group in which the results of the company are consolidated is that headed by Twins Enterprise Inc., and the smallest

is headed by 47 Brand LLC, both are private companies incorporated in the United States of America, with their principal place

of business at 15 Southwest Park Westwood, MA 02090, USA.