REGISTERED NUMBER:
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Crocs UK Limited |
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Financial Statements |
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for the year ended |
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31 December 2021 |
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REGISTERED NUMBER:
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Crocs UK Limited |
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Financial Statements |
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for the year ended |
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31 December 2021 |
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Crocs UK Limited (Registered number: 06032591) |
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Contents of the Financial Statements |
for the year ended 31 December 2021 |
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Page |
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Company Information | 1 |
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Statement of Financial Position | 2 |
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Notes to the Financial Statements | 3 | to | 7 |
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Crocs UK Limited |
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Company Information |
for the year ended 31 December 2021 |
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DIRECTORS: |
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SECRETARIES: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Chartered Accountants |
Statutory Auditors |
Yare House |
62-64 Thorpe Road |
Norwich |
Norfolk |
NR1 1RY |
Crocs UK Limited (Registered number: 06032591) |
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Statement of Financial Position |
31 December 2021 |
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2021 | 2020 |
Notes | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 4 |
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CURRENT ASSETS |
Debtors | 5 |
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CREDITORS |
Amounts falling due within one year | 6 | ( |
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NET CURRENT LIABILITIES | ( |
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TOTAL ASSETS LESS CURRENT LIABILITIES | ( |
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CAPITAL AND RESERVES |
Called up share capital |
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Share premium |
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Retained earnings |
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SHAREHOLDERS' FUNDS | ( |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
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Crocs UK Limited (Registered number: 06032591) |
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Notes to the Financial Statements |
for the year ended 31 December 2021 |
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1. | STATUTORY INFORMATION |
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Crocs UK Limited is a
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Crocs UK Limited (Registered number: 06032591) |
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Notes to the Financial Statements - continued |
for the year ended 31 December 2021 |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Going concern |
The financial statements have been prepared on a going concern basis. This basis may not be appropriate because the company has a deficit on shareholders' funds of £123,496 at 31 December 2021 and the company is entirely reliant on its parent company Crocs Europe BV for sales revenue, all cash inflows and all operational functions. |
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This support from the parent company has continued to the date of these accounts being signed but the last audited accounts for Crocs Europe BV were for the year ended 31 December 2019 and so the directors are instead relying on unaudited accounts for 2020 and 2021 when considering the ability of Crocs Europe BV to continue to provide support. |
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The directors confirm that the reason given by the directors of the parent company for the delay in the Crocs Europe BV accounts for the year ended 31 December 2020 being finalised, and the resulting delay in the accounts for the following year being audited is that the only area delaying the 2020 audit is as follows: |
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There was a delay in realising that there needs to be a valuation of Intellectual Property Assets acquired in 2020 by Crocs Europe BV from a group company. That valuation is required under International Financial Reporting Standards rather than the OECD transfer pricing valuation which was performed at acquisition. A valuer was appointed in November 2022. |
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The directors confirm that the reasons for considering the going concern basis to be appropriate are as follows: |
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The company has received a letter of support confirming that the amount of £100,990 owed by the company to Crocs Europe BV will be converted to share capital during 2023. The directors are confident of that support being provided because previous loan balances have also been converted into share capital. |
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The company has received a letter of support from Crocs Europe BV confirming that it is willing and able to provide continuing financial support to Crocs UK Ltd. to enable it to continue to operate as a going concern and to meet all of its obligations as and when they fall due and, at a minimum, this includes support through to 31 December 2023. |
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In recognition of the delay in audited 2020 and 2021 Crocs Europe BV accounts being available, the company has also been provided with a letter of support from the ultimate parent company, Crocs Inc. confirming it is willing and able to provide continuing financial support to Crocs UK Ltd. to enable it to continue to operate as a going concern and to meet all of its obligations as and when they fall due, and, at a minimum, this includes the entire 2022 and 2023 financial years through to 31 December 2023. |
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The directors are confident of this promised support being provided because of the historical support provided, the strategic importance of the UK market and the UK sales force, and the ability of Crocs Inc. to provide the promised support. |
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Significant judgements and estimates |
No significant judgements have had to be made by management in preparing these financial statements. |
Crocs UK Limited (Registered number: 06032591) |
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Notes to the Financial Statements - continued |
for the year ended 31 December 2021 |
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2. | ACCOUNTING POLICIES - continued |
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Revenue |
Revenue is measured at the fair value of the consideration received or receivable, and represents sales commissions earned net of discounts, rebates, value added tax and other sales taxes. |
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Sales commission is charged to the parent company Crocs Europe B.V. Revenue from sales commission is recognised on fulfilled purchase orders made directly as a result of Crocs UK Limited mediation as agent, and when the amount of revenue can be measured reliably and it is probable that future economic benefits will flow to the entity. The company uses the comparable uncontrolled transfer pricing method to determine the price to be applied to this sales commission. |
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Property, plant and equipment. |
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Improvements to property | - |
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Fixtures and fittings | - |
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Financial instruments |
Short term debtors are measured at transaction price, less any impairment. |
Short term creditors are measured at the transaction price. |
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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. |
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Current or deferred taxation assets and liabilities are not discounted. |
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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. |
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Foreign currencies |
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. |
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Leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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Pension costs |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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Government grants |
Grants are accounted for under the accruals model as permitted by FRS 102. Grants of a revenue nature are recognised in other income within profit or loss. This includes the Government Coronavirus Job Retention Scheme ('Furlough'). |
Crocs UK Limited (Registered number: 06032591) |
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Notes to the Financial Statements - continued |
for the year ended 31 December 2021 |
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2. | ACCOUNTING POLICIES - continued |
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Employee benefits |
Short-term employee benefits are recognised as an expense in the period in which they are incurred. |
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Termination benefits are recognised only when the company is demonstrably committed to terminate the employment of an employee or a group of employees before their normal retirement date or to provide termination benefits as a result of an offer made in order to encourage voluntary redundancy. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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4. | PROPERTY, PLANT AND EQUIPMENT |
Improvements | Fixtures |
to | and |
property | fittings | Totals |
£ | £ | £ |
COST |
Additions |
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At 31 December 2021 |
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DEPRECIATION |
Charge for year |
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At 31 December 2021 |
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NET BOOK VALUE |
At 31 December 2021 |
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5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Other debtors |
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6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade creditors |
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Amounts owed to group undertakings |
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Taxation and social security |
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Other creditors |
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Crocs UK Limited (Registered number: 06032591) |
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Notes to the Financial Statements - continued |
for the year ended 31 December 2021 |
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7. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Report of the Auditors was unqualified. |
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for and on behalf of
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8. | OTHER FINANCIAL COMMITMENTS |
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The company has total commitments under non-cancellable operating leases at the balance sheet date of £306,000 (31/12/2020 £nil). |
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9. | ULTIMATE CONTROLLING PARTY |
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The company's immediate parent is
Europe BV do not prepare group financial statements. |
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The company's ultimate parent and controlling party is Crocs Inc., a company incorporated in the
United States of America
. The registered office of Crocs Inc. is 13601 Via Varra, Broomfield, CO 80020, United
States. |
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Copies of the consolidated financial statements of Crocs Inc are available online at www.crocs.com. The financial statements of Crocs UK Limited are consolidated in the financial statements of Crocs Inc. |