Spartoo UK Limited
Financial Statements
For the year ended 31 December 2022
For Filing with Registrar
Company Registration No. 05221282 (England and Wales)
Spartoo UK Limited
Company Information
Directors
JJ Touchard
BF Saragaglia
Company number
05221282
Registered office
Transworld Unit 1 Morley Court
Morley Way
Peterborough
Cambridgeshire
England
PE2 7BW
Auditor
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
Spartoo UK Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 7
Spartoo UK Limited
Balance Sheet
As at 31 December 2022
Page 1
2022
2021
Notes
£
£
£
£
Current assets
Stock
1,037,936
810,995
Debtors
5
69,484
35,909
Cash at bank and in hand
451,598
402,266
1,559,018
1,249,170
Creditors: amounts falling due within one year
6
(5,002,460)
(4,565,554)
Net current liabilities
(3,443,442)
(3,316,384)
Capital and reserves
Called up share capital
7
2
2
Profit and loss reserves
(3,443,444)
(3,316,386)
Total equity
(3,443,442)
(3,316,384)
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 13 April 2023 and are signed on its behalf by:
BF Saragaglia
Director
Company Registration No. 05221282
Spartoo UK Limited
Notes to the Financial Statements
For the year ended 31 December 2022
Page 2
1
Accounting policies
Company information
Spartoo UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Transworld Unit 1 Morley Court, Morley Way, Peterborough, Cambridgeshire, England, PE2 7BW.
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 financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements, which are those of Spartoo UK Limited as an individual entity, have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements are prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. The company has not been significantly impacted by the Covid-19 pandemic due to the online nature of the business. Brexit did impact business as the increased costs associated with trading with EU countries reduced sales on the continent which contributed to the loss in the year. At the year end the company has net liabilities of £3,443,442 (2021: £3,316,384) which includes a balance of £4,550,951 (2021: £3,905,186) due to the ultimate parent undertaking at the balance sheet date. Spartoo SAS, the company's immediate and ultimate parent undertaking, has given an undertaking to continue to provide financial support to the company for a period of at least twelve months from the date of approval of these financial statements, to enable the company to meet its liabilities as they fall due. Accordingly the directors continue to adopt the going concern basis in the preparation of the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods, and is shown net of VAT and other sales related taxes. 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 dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
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:
Fixtures, fittings & equipment
15%
Computer equipment
33.33%
Spartoo UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 3
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.
1.5
Stock
Stock 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 stock to their present location and condition.
Stock held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock 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.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
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.
Spartoo UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 4
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
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.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.12
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.
Spartoo UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 5
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Stock provision
The directors make certain judgements on the valuation of stock which includes specific provisioning based on the aging profile of stock.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
2
2
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2022 and 31 December 2022
37,417
Depreciation and impairment
At 1 January 2022 and 31 December 2022
37,417
Carrying amount
At 31 December 2022
At 31 December 2021
Spartoo UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 6
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
17,374
29,515
Other debtors
52,110
6,394
69,484
35,909
6
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
227,058
320,063
Amounts owed to group undertakings
4,550,951
3,905,186
Taxation and social security
91,215
151,099
Other creditors
133,236
189,206
5,002,460
4,565,554
7
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
2
2
2
2
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2022
2021
£
£
570,222
343,767
9
Parent company
The ultimate parent and controlling party is Spartoo SAS, a company incorporated in France, which prepares group accounts of which this company is a member. Copies of these accounts can be obtained from the registered office at 16 Rue Henri Barbusse, 38000 Grenoble, France.
Spartoo UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 7
10
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.
The senior statutory auditor was Matthew Meadows and the auditor was Moore Kingston Smith LLP.