47 Brand Europe Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 07567616 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

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:

Suite 2 First Floor

10 Temple Back

Bristol

United Kingdom

BS1 6FL

Registered number:

07567616 (England and Wales)

Auditors:

Corrigan Accountants Limited

Statutory Auditor

First Floor

25 King Street

Bristol

BS1 4PB

FIXED ASSETS

Tangible assets

4

4,143

5,526

CURRENT ASSETS

Stocks

5

579,019

1,152,551

Debtors

6

4,448,950

792,502

Cash at bank

9,742,883

1,844,692

14,770,852

3,789,745

CREDITORS

Amounts falling due within one year

7

(10,278,254

)

(1,321,264

)

NET CURRENT ASSETS

4,492,598

2,468,481

TOTAL ASSETS LESS CURRENT LIABILITIES

4,496,741

2,474,007

CAPITAL AND RESERVES

Called up share capital

9

1

1

Retained earnings

4,496,740

2,474,006

SHAREHOLDERS' FUNDS

4,496,741

2,474,007

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 Statement of profit and loss has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 20 December 2023 and were signed on its behalf by:

D D'Angelo - Director

1.	STATUTORY INFORMATION

47 Brand Europe Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The Company’s functional and presentational currency is pounds sterling (GBP) and the financial statements have been rounded to the nearest pound (£).

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.

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. A balance of £9,269,797 (2021: £800,926) 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 an expense as the services are received. 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 administrative expenses.

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.

Financial instruments

The Company only enters into basic financial instruments 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 non-puttable ordinary shares.

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognized amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 9 (2021 - 11 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

Cost

At 1 January 2022

and 31 December 2022

53,743

Depreciation

At 1 January 2022

48,217

Charge for year

1,383

At 31 December 2022

49,600

Net book value

At 31 December 2022

4,143

At 31 December 2021

5,526

5.

STOCKS

31/12/22

31/12/21

£

£

Stocks

579,019

1,152,551

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/12/22

31/12/21

£

£

Trade debtors

2,841,744

786,982

Amounts owed by group undertakings

1,511,265

-

Other debtors

70,790

3,125

Deferred tax asset

23,272

614

Prepayments

1,879

1,781

4,448,950

792,502

Amounts owed by group undertakings are interest free, unsecured and repayable on demand.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/12/22

31/12/21

£

£

Trade creditors

35,268

123,122

Amounts owed to group undertakings

9,269,797

800,926

Tax

519,536

285,917

Social security and other taxes

5,386

2,539

Other creditors

237,759

8,648

Accrued expenses

210,508

100,112

10,278,254

1,321,264

Amounts owed to group undertakings are interest free, unsecured and repayable on demand.

8.	LEASING AGREEMENTS

The total of future minimum lease payments is as follows:

2022

2021

£

£

Operating lease commitments

35,000

6,250

35,000

6,250

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31/12/22

31/12/21

value:

£

£

1

Ordinary

1

1

1

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

11.	CONTINGENT LIABILITIES

Management has identified potential errors regarding the invoicing of certain customers and the VAT / sales tax treatment of the related sales. The issue, relating to sales in 2021 and later years, is not expected to result in any material cost (or benefit) to the company, to customers, or to tax authorities, but a review is in progress to determine the final impact and to bring tax filings up to date. The resolution of the matter will result in a cost to the company where elements of the tax due from the company to tax authorities are not recoverable from the company's customers. The company has recognised at 31 December 2022 an immaterial liability in respect of management's best estimate of the probable cost. There remains a possibility that a further amount might become payable without reimbursement from customers. Given the status of this matter, the directors are not able to make a reliable estimate of the likely financial effect. However, management believes that a further material cost is unlikely.

12.	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.