Apparel Brands Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 09774109 (England and Wales)

APPAREL BRANDS LIMITED

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2019

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTORS:

A Singh

W Wood

REGISTERED OFFICE:

The Exchange

5 Bank Street

Bury

Lancashire

BL9 0DN

REGISTERED NUMBER:

09774109 (England and Wales)

ACCOUNTANTS:

DTE Business Advisers Limited

Chartered Accountants

The Exchange

5 Bank Street

Bury

BL9 0DN

FIXED ASSETS

Property, plant and equipment

4

925

1,156

CURRENT ASSETS

Inventories

3,678,511

1,828,025

Debtors

5

1,747,049

1,215,061

Cash at bank

29,893

43,977

5,455,453

3,087,063

CREDITORS

Amounts falling due within one year

6

(4,716,135

)

(2,704,799

)

NET CURRENT ASSETS

739,318

382,264

TOTAL ASSETS LESS CURRENT LIABILITIES

740,243

383,420

PROVISIONS FOR LIABILITIES

(176

)

(220

)

NET ASSETS

740,067

383,200

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

739,967

383,100

SHAREHOLDERS' FUNDS

740,067

383,200

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 July 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 July 2019 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

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

The financial statements were approved by the Board of Directors and authorised for issue on 27 July 2020 and were signed on its behalf by:

A Singh - Director

1.	STATUTORY INFORMATION

Apparel Brands Limited is a private company, limited by shares, registered in England and Wales. The

company's registered number is 09774109 and registered office address is The Exchange, 5 Bank Street, Bury,

Lancashire, BL9 0DN.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Post year end saw the outbreak of COVID-19 in China, which has become a global pandemic. The directors have

considered the impact of this on the company and, while they cannot be expected to predict the future of

COVID-19 on the UK economy, they are taking all possible steps to mitigate the risks of it to the business, in

both the short term and medium term, to firstly mitigate the risks of it to the business, and then help re-position

and build foundations to bounce back in a positive manner. The directors have taken advantage of the furlough

scheme where necessary, in order to reduce overheads.

The company had net assets of £740k at the year end. The directors believe that the company is well placed to

manage the risks at these challenging times and therefore continues to adopt a going concern basis of accounting

in preparing these financial statements.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make estimates and

judgement. The estimates are based on historical experience and other relevant factors. Actual results may differ

from these estimates.

The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which

the estimate is revised.

The estimates and assumptions which have a significant risk of causing material adjustment to the carrying

amount of assets and liabilities are outlined below.

Making judgement based on historical experience on the level of provision required for impairment of

inventories. Further information received after the statement of financial position date may impact on the level of

provision required.

The directors use judgement to provide against bad debts using knowledge of customers and experience.

Revenue

The revenue shown in the income statement represents the value of all goods sold during the period, less returns

received, at selling price exclusive of Value Added Tax. Revenue is recognised at the point at which the

company has fulfilled its contractual obligations and the risks and rewards attached to the product, such as

obsolescence, have been transferred to the customer.

Property, plant and equipment

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

Plant and machinery etc

-

20% on reducing balance

The residual values, estimated useful lives and depreciation method of property, plant and equipment are

reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision

are recognised in the income statement when the change arises.

Inventories

Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and

slow moving items. Cost is calculated as the costs incurred in bringing the inventory to its present location and

condition. Net realisable value is estimated selling price less costs to complete and sell.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at

the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate

of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the

operating result.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charges to income statement in the period to which they relate.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial

assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third

parties and loans to related parties.

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 income statement.

Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost,

being the transaction price less any amounts settled.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 7 (2018 - 6 ) .

4.	PROPERTY, PLANT AND EQUIPMENT

Plant and

machinery

etc

£

COST

At 1 August 2018

and 31 July 2019

1,196

DEPRECIATION

At 1 August 2018

40

Charge for year

231

At 31 July 2019

271

NET BOOK VALUE

At 31 July 2019

925

At 31 July 2018

1,156

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

1,456,747

1,137,608

Other debtors

290,302

77,453

1,747,049

1,215,061

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade creditors

4,118,035

2,099,006

Taxation and social security

87,937

161,002

Other creditors

510,163

444,791

4,716,135

2,704,799

7.	SECURED DEBTS

The following secured debts are included within creditors:

2019

2018

£

£

Invoice discounting

236,774

-

The invoice discounting creditor is secured over the related trade debtors.

There is a fixed and floating charge over all of the assets of the company by way of a debenture.

8.	POST BALANCE SHEET EVENTS

Post year end saw the outbreak of COVID-19 in China, which has become a global pandemic. The directors have

considered the impact of this on the company and, while they cannot be expected to predict the future of

COVID-19 on the UK economy, they are taking all possible steps to mitigate the risks of it to the business.

Further details of this are included at note 2.