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Company registration number: 05436091
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FOR THE YEAR ENDED
31 DECEMBER 2020
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COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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CONTENTS
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Statement of financial position
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Notes to the financial statements
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AKRIS U.K. LTD
REGISTERED NUMBER:05436091
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STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2020
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Debtors: amounts falling due after more than one year
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 17 September 2021.
................................................
H Rohner
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The notes on pages 2 to 7 form part of these financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
Akris U.K. Ltd is a private limited company limited by shares incorporated in England and Wales. The address of the registered office is disclosed on the company information page. The company's principal place of business is 30 Old Bond Street, Mayfair, London, W1S 4QQ.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The COVID-19 pandemic has created significant uncertainty and continues to do so. As a result of the UK response to COVID-19 the company had to temporarily close their Bond Street store. These measures and the continued impact of the pandemic will have a significant financial impact on the company. The lasting impact of COVID-19 is still unknown and therefore it is not possible for the directors to reliably forecast and fully quantify the financial impact of COVID-19 on Akris U.K. Ltd. However, the directors have taken relevant measures to ensure they are able to safeguard cashflow and jobs, and to put them in the best possible position when business starts to return to normal.
Given the uncertainties that exist, this may cast significant doubt on the Company’s ability to continue as a going concern, however, the Directors believe that the actions they have taken should enable them to continue in operational existence. In addition, Akris U.K. Ltd continues to have the support of parent company, Akris Prêt-à-Porter AG, which still believes that the brand should have a presence in the UK market and can continue to be profitable.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Revenue arises from the sale of women's clothing and accessories in store and in concessions.
Revenue represents the fair value of amounts receivable for goods and services and is stated net of discounts, value added taxes and returns
Revenue generated from retail sales are recognised when Akris U.K. Ltd sells a product to a customer.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.Accounting policies (continued)
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of income and retained earnings in the same period as the related expenditure.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using a combination of straight line and reducing balance.
Depreciation is provided on the following basis:
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Short-term leasehold property
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25% straight line methods
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25% reducing balance method
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
2.Accounting policies (continued)
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Akris U.K. Limited may return old or unused stock to their parent company Akris Prêt-à-Porter AG at cost less the accumulated stock provision.
The stock provision is calculated based on the age of the season of stock and the classification of the different categories of stock. The provision ranges as follows for each category:
Type of stock Provision applied
Carry over 20% - 90%
Mark down 40% - 90%
Basic 20%
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of financial position.
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The average monthly number of employees, including directors, during the year was 12 (2019 - 14).
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Exceptional stock provision
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The Akris Group, headed by Akris Prêt-à-Porter AG decided to change their group commercial policy in the prior year in relation to old stock held by Akris U.K. Ltd being sold back to Akris Prêt-à-Porter AG. As at 31 December 2019, a decision was made that all stock would be sold back at the purchase price, less an agreed provision rather than the full original price paid. As a result a stock provision was required as at 31 December 2019, which resulted in an expense of £830,139.
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Stock provision following change in Group commercial policy
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Following a correction to previously submitted VAT returns, Akris U.K. Ltd is due a repayment from HMRC for overpaid VAT. This is included in debtors at the year end.
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Short-term leasehold property
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Charge for the year on owned assets
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Due after more than one year
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Amounts owed by group undertakings
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Included within amounts owed to group undertakings is an interest bearing loan due to Akris Prêt-à-Porter AG. Interest is charged at a rate equal to the yearly circular letter from the Swiss Federal Tax Administration (2%).
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Additional provision in year
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
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Commitments under operating leases
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At 31 December 2020 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Related party transactions
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In accordance with the exemption allowed by Financial Report Standard 102 (1A) transactions with group companies have not been disclosed in these financial statements.
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The parent of the smallest group for which consolidated financial statements are drawn up is Akris Prêt-à-Porter AG. The address of their registered office is Kalabinth 21 Speicher, 9042, Switzerland.
The auditors' report on the financial statements for the year ended 31 December 2020 was unqualified.
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In their report, the auditors emphasised the following matter without qualifying their report:
We draw attention to note 2.2 in the financial statements, which indicates there is uncertainty with regard to going concern due to the impact the COVID-19 pandemic has had on the company. As stated in note 2.2, these events or conditions, along with the other matters as set forth in the note indicate that despite there being support from its parent company, a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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The audit report was signed on 17 September 2021 by Tom Woods ACA (Senior statutory auditor) on behalf of Menzies LLP.
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