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 2020 |
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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 2020 |
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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 2020 |
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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 | 6 |
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Crocs UK Limited |
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Company Information |
for the year ended 31 December 2020 |
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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 2020 |
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2020 | 2019 |
Notes | £ | £ |
CURRENT ASSETS |
Debtors | 4 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 5 | ( |
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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 | 2 | 2 |
Share premium | 8,239,533 | 8,239,533 |
Retained earnings | (10,294,528 | ) | (9,922,914 | ) |
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 2020 |
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1. | STATUTORY INFORMATION |
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Crocs UK Limited is a
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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 made a loss for the year of £371,614 and has a deficit on shareholders' funds of £2,054,993 at 31 December 2020. |
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The company is entirely reliant on its parent company Crocs Europe BV for sales commission revenue. The basis for calculating this commission is as set out in the Revenue accounting policies note. The parent also provides all cash flow required to cover all costs, as the company has no independent source of revenue since it discontinued its UK retail activity in 2018. The directors have obtained a letter of support from the parent company which confirms that the parent company will continue to provide financial support to Crocs UK Limited to enable it to continue to operate as a going concern, and to meet all of its obligations as and when they fall due, for a period of at least 12 months from the date of approval of these financial statements. |
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In June 2021 the company issued share capital to a value of £1,891,482 to Crocs Europe BV, in order to fully discharge all inter-company amount owed to the parent as at 31 December 2020. |
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With regard to the COVID-19 pandemic, the directors have received confirmation in the same letter of support that the directors of the parent company have assessed the potential impact on their business of possible scenarios brought on by the COVID-19 pandemic alongside measures they can take to mitigate the impact. This has been incorporated into cash flow forecast for Crocs Europe BV and considered by the company directors when making their assessment of their ability to provide the support that has been guaranteed, |
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The directors of the parent company continue to monitor and assess the potential impact of Brexit on sales in the UK, and are assessing all possible options to mitigate any negative impact, and continue their financial support of Crocs UK Limited throughout this process |
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Based on the letter of support, the current resources available to the parent company, and the measures that are being taken by the parent company in order to mitigate the uncertainty created by the current adverse conditions, the directors conclude that the going concern basis is appropriate. |
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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 2020 |
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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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Financial instruments |
Short-term debtors are measured at transaction price, less any impairment. |
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Short-term trade creditors are measured at the transaction price. |
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Taxation |
Taxation represents the sum of the tax currently payable and deferred tax. |
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The company's liability for current tax is calculated using tax rates that have been enacted, or substantively enacted by the end of the reporting period. |
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Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the date of the statement of financial position. 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. |
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Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates that have been enacted or substantively enacted by the end of the reporting period. |
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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the date of the statement of financial position. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating result. |
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Leasing commitments |
Rentals payable under operating leases are charged to the income statement 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. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions payable to the company's pension scheme are charged to the income statement 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 2020 |
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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. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Other debtors |
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5. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
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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6. | 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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7. | OTHER FINANCIAL COMMITMENTS |
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The company has total commitments under non-cancellable operating leases at the balance sheet date of £nil (31/12/2019 £71,875). A deposit of £20,625 has been given against this commitment. |
Crocs UK Limited (Registered number: 06032591) |
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Notes to the Financial Statements - continued |
for the year ended 31 December 2020 |
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8. | POST BALANCE SHEET EVENTS |
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After the year end the company signed a new lease for premises. Total commitments under this lease will be £340,000. |
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After the year end the company issued share capital to its parent company, Crocs Europe BV, in order to discharge it from debts of £1,891,482. |
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Brexit has introduced significant additional duties to be paid by the importer based upon the company's current distribution process. The related risks to the sales in the UK of Crocs Europe BV products is under continued evaluation as it depends on the specific country from which the company sources product and the specific process of importing to the UK. The directors are working closely with an internal team from the parent company and also advisors engaged by the parent company to stay abreast of risks and opportunities to mitigate these additional costs. |
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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. |