HENRY_POOLE_AND_COMPANY_( - Accounts

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.

Henry Poole and Company (Savile Row) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 15 Savile Row, London, W1S 3PJ.

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 disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 have been prepared under the historical cost convention, modified to include current asset investments at fair value. The principal accounting policies adopted are set out below.

The directors have considered the ongoing effect of the Covid-19 outbreak and current cost of living crisis. The outbreak caused significant disruption to the company’s business due to lockdowns and restrictions which limited travel for both domestic and international customers who were unable to travel for fittings, however the company has begun to trade profitably following the year-end.true

The company utilised the Coronavirus Job Retention Scheme (CJRS) until the scheme came to an end in September 2021.

The directors negotiated rent free periods with the landlord and benefited from a rates holiday until June 2021. The directors also restructured their workforce accordingly and reduced costs where possible.

In 2021, the company received a Bounce Back Loan of £50,000, which has been repaid in full following the year-end.

The directors have a reasonable expectation that the company has adequate resources to continue in operation for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

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.

Revenue from services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation 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:

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost less estimated residual value of each assets over its expected useful life, as follows:

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.

Interests in unlisted fixed asset investments are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Stocks and work in progress 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 stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at 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 stocks 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.

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

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, 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.

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.

Basic financial liabilities, including creditors, 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 receipts 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.

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.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

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.

Government grants, which include amounts received from local authority grants, are recognised at the fair value of the grant received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. The income is recognised in other income in the period in which the grant becomes receivable.

Government grants, which include the amounts received from the Bounce Back Loan Scheme, that cover interest and fees payable to the lender, are recognised at the fair value of the grant received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. The income is recognised in other income on a systematic basis over the periods in which the associated costs are incurred, using the accrual model.

Coronavirus Job Retention Scheme (CJRS)

Government grants, which include amounts received under the Coronavirus Job Retention Scheme, are recognised at the fair value of the grant received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. The income is recognised in other operating income on a systematic basis over the periods in which the associated costs are incurred, using the accrual model.

Amounts recoverable on long term contracts

Amounts recoverable on long term contracts represents the accrued revenue from ongoing tailoring at the year-end, adjusted for the stage of completion dependent on the progress of each garment.

Payments on account for jobs in which work has commenced are deducted from amounts recoverable on long term contracts and are shown separately within debtors and creditors.

Where amounts recoverable on long term contracts exceeds the associated payments on account those balances are reflected within debtors. Where payments on account exceed the amounts recoverable on long term contracts, those balances are reflected within creditors.

Rates holiday

Business rates holidays received are set off against the applicable rate expense for the period covered by the holiday. A rates holiday was received from 1 January 2021 until 30 June 2021.

Current asset investments

Current asset investments include short-term liquid investments with original maturities of three months or less, which are held at fair value.

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.

Bad debt provision

Trade debtors are valued at their fair value. The fair value of the trade debtors includes a provision for balances still outstanding for more than 120 days, individually reviewed to determine whether the company can expect payment. This amounts to £49,579 (2020: £48,805). This provision is based on the historical experience of customer prepayments and the completion stage of the stock.

Amounts recoverable on long term contracts

Amounts recoverable on long term contracts are valued based on the stage of completion of each garment at the year-end, with percentages applied from 0% being the initial order through to 85% reflecting finished goods. The stage of completion is estimated by the cutter responsible for the work.

US sales tax provision

Included within the financial statements is a provision for an ongoing claim against the entity for US sales tax and associated legal costs. An amount of £250,000 has been provided for based on the probability of an adverse outcome for the company. Refer to note 12 for further details.

Provision for impairment of Fixed Asset Investment

Included within the financial statements is a provision for impairment of an unlisted investment of £24,999, based on a recoverable carrying amount of £1. Refer to note 7 for further details.

The average monthly number of persons (including directors) employed by the company during the year was:

In the opinion of the directors, the recoverable carrying amount of the unlisted investment is considered to be £1 at the year ended 31 December 2021. During the year, a provision for impairment of unlisted investments of £24,999 has been made.

Refer to accounting policy 1.19 for further details regarding amounts recoverable on long term contracts.

Refer to accounting policy 1.19 for further details regarding amounts recoverable on long term contracts.

The creditor due after more than one year was a bounce back loan of £50,000 received during the year. This has been repaid following the year-end.

An amount of £250,000 has been provided for based on the probability of an adverse outcome for the company in an ongoing claim against the entity for US sales tax and associated legal costs. As at the date of signing the accounts, there is an expectation that the case will come to a conclusion by the end of Q1 2023.

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.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

Included within trade debtors are balances totalling £106 (2020: £252) which are owed by directors.

Included within subscriptions is a balance of £nil (2020: £2,150) relating to the annual subscription fee payable to Savile Row Bespoke Limited, a company in which A. Cundey is a director. Included in prepayments is a balance of £nil (2020: £2,150) relating to the same annual subscription.

Included within advertising expenses is a balance of £8,326 (2020: £8,349) relating to promotional activity for Savile Row Gin Limited, a company in which Henry Poole and Company (Savile Row) Limited have a minority interest. Included within prepayments is a balance of £2,737 (2020: £11,063) relating to the same promotional activity.