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Registered number: 00134995
Moss Bros Group Limited
Annual report and financial statements
For the period ended 28 January 2023
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Moss Bros Group Limited
Company Information
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Heath Lee Golden (resigned 8 April 2022)
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Sheila Marie Geraghty (appointed 14 April 2022)
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Menoshi Shina (appointed 14 April 2022)
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Chartered Accountants & Statutory Auditor
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168 Shoreditch High Street
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Moss Bros Group Limited
Contents
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Independent auditors' report
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Statement of comprehensive income
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Statement of changes in equity
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Notes to the financial statements
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Moss Bros Group Limited
Strategic report
For the period ended 28 January 2023
The directors present their strategic report together with the audited financial statements for the 52 week period ended 28 January 2023.
Principal activities
Established in 1851, Moss Bros Group Ltd (“the Group”) designs and retails a range of high quality men’s formal wear along with a complementary smart casual range. It also offers a hire service, a custom made service and a subscription service. The business operates predominantly in the UK and Eire, through its national chain of over 100 retail stores, but also sells online on both its own website and other digital marketplaces.
Business review and Key Performance Indicators
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Total sales for the 52-week financial period ending 28 January 2023 increased by £58.4m or 62.7% to £151.6m. The Group is highly cash generative and has no debt.
The business traded strongly, capitalising on the post pandemic surge in demand for weddings, sporting events, proms, black tie and other similar events. The Group focused on the high levels of service offered in our stores, opening 8 new stores in the year. The online business benefitted from a website refresh along with expansion into other digital marketplaces. All this activity was complemented by the expanding casual wear offer.
EBITDA (Earnings before interest, tax, depreciation and amortization) for the year is £36.0m compared to EBITDA of £17.0m in the prior year reflecting the strong post-pandemic performance. Similarly, the profit before tax for the year is £33.2m compared to a profit of £12.4m in the prior year.
Dividends totalling £6,750,000 were paid by the Company to the Parent company (2022: £nil)
The Company monitors a range of key performance indicators (KPIs) on a regular basis to manage the business, enable timely decision-making and to react quickly to a rapidly changing environment. Particular attention is paid to weekly KPIs and trading information with variances to budget and forecasts for individual product ranges and sales channels being reviewed. The primary KPIs reviewed regularly are turnover, gross margin and EBITDA.
Despite widespread difficulties across the UK retail sector, our performance is indicative of the resilience of a certain segment of UK consumers and their willingness to buy products which offer exceptional quality at reasonable price points. Although we are careful not to deviate too far from our core, we believe the Moss Bros brand appeals to an increasingly broad customer base and is capable of further expansions.
A high focus and attention has been given to improve the expansion and enhancement of our store estate, cost controls across all areas of the business and continuous improvement in our product range to ensure it stays relevant to our core customers .
Page 1
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Moss Bros Group Limited
Strategic report (continued)
For the period ended 28 January 2023
Current trading and outlook
The business continues to trade strongly and the Directors expect the strong trading performance to continue into the year ending 28 January 2024.
Whilst there remains uncertainty around the cost of living crisis and the wider macro-economic and geo political environment, the Directors are confident about the trading outlook and expect the demand for weddings and other events to be sustained at levels ahead of the pre-pandemic period.
We are committed to our strategy of “styling individuals for the moments that matter”. As well as providing unrivalled in store service levels in our sector, the Group has diversified its product ranges by stretching into smart casual wear which complements the other formal products and is focused on providing value to our customers by selling exceptional quality at affordable price points. We have continued to trade with minimal promotional discounting to drive sales at full price.
The Company’s business activities, factors likely to affect its future development, performance and position are set out in the principal activities and business review on page 1.
The main financial risks arising from the activities of the Company are set out in this report below, together with the policies and processes to manage these risks.
The Directors have reviewed the Company’s forecasts. As described in the current trading and outlook section above, the outlook for the company is expected to be positive for the following year. These forecasts show that the company should be able to operate within its existing working capital facilities.
The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Directors therefore continue to adopt the going concern basis of accounting in preparing the annual financial statements for the Company.
Page 2
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Moss Bros Group Limited
Strategic report (continued)
For the period ended 28 January 2023
Principal risks and uncertainties
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Moss Bros is an established brand, with a loyal customer following. However, we acknowledge, measure and mitigate the following risks:
Economy - impact on retail
Almost all of the Group’s revenue is generated in the UK. A deterioration in the strength of the UK economy would be likely to reduce consumer demand for discretionary items. This could materially and adversely affect the financial position of the Group. The Group is currently funded from its own cash reserves and any prolonged downturn may impact these.
We continually focus on maintaining our product quality, customer service and supplier relationships, which will help us retain our competitive position and retain customers.
The business has the flexibility to adjust its capital expenditure plans, restrict dividends and review operational expenditure to reduce or defer unnecessary expenditure. These measures will conserve cash and maintain the strength of our balance sheet.
Property leases have short remaining lives allowing flexibility to reduce fixed overhead costs should the need arise.
The Group is debt free and cash generative.
Supply chain
Any disruption to supplier continuity or interruptions to the supply chain may have a significant impact on our ability to meet demand in store and online. As we increase the volume of garments sourced directly from supplier factories we must ensure that the supply chain critical path is closely monitored and proactively managed.
The diversification of product buying across a range of suppliers limits the Group’s over reliance upon any individual supplier. We have implemented controls which enable us to identify early any potential deviations from product and supply chain critical paths. In addition, we continuously review the supply base to mitigate potential single source supply issues through a dual sourcing strategy.
Foreign currency exposure, principally the US Dollar, is mitigated through the use of forward contracts, typically for expected currency requirements 6 to 9 months in advance.
Brand image
Maintaining our store presentation is important for attracting customers and growing our brand and we continually seek to improve the look and feel of our in-store environment and online offering to deliver an improved customer experience.
Page 3
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Moss Bros Group Limited
Strategic report (continued)
For the period ended 28 January 2023
How the Board of Directors has promoted the success of the Group for the benefit of its members as a whole; whilst having regard to the matters set out in Section 172 of the Companies Act 2006
The Board is mindful of all stakeholders when making decisions of strategic performance. Stakeholder engagement is central to the formulation and execution of the strategy and critical in achieving long-term success. The needs of our stakeholders as well as the consequences of any decision on the long-term are well considered by the Board.
A description of the key stakeholders, their engagement and how this influences our decision making is set out below.
CUSTOMERS
Our customers are at the heart of everything we do. We seek to understand more about them to ensure our products and services meet their expectations and we deliver a seamless shopping experience whichever channel they choose to shop with us, whether online, in store or via our contact centre.
We constantly review whether we are achieving our customer centric aims and ambitions by measuring customer growth and getting feedback via surveys, ratings, and occasional focus groups as well as through our various contact channels.
We have regular meetings to review any issues impacting the customer experience and put actions in place to resolve them as quickly as possible. The customer continues to be our focus at all levels in the organization and we have many initiatives on the horizon to adapt to changing requirements, shopping preferences and lifestyle.
SHAREHOLDERS
The Directors and particularly the CEO engage with their principal shareholders on a regular basis involving them in all significant decisions and providing regular updates on performance.
EMPLOYEES
We remain committed to employment policies that do not discriminate between employees or potential employees on the grounds of gender, colour, race, nationality, ethnic origin, national origin, religion, religious beliefs, sexual orientation, disability or age. In line with the change in legislation, we continue to focus on ensuring opportunities are open and fair for both women and men.
We continually engage with our employees and have been focused on employee safety, wellbeing and morale throughout the pandemic. Moss Bros also engages with their employees through a workplace intranet, head office, retail communications, and online training module.
GOVERNMENT/REGULATORS
We are committed to doing business responsibly and regularly have meetings/briefings, consultations, dialogue with trade bodies and specialist advisors to help proactively monitor new regulations and compliance requirements.
COMMUNITY
The community and wider society are concerned with charitable donations, environmental impact and sustainability.
Page 4
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Moss Bros Group Limited
Strategic report (continued)
For the period ended 28 January 2023
COMMUNITY (continued)
We operate across the UK and so have a presence in many different communities. We do not have a specific social policy, but Moss Bros actively looks for and has taken part in a number of initiatives, at both a national and a local level. Taking part in such initiatives can help promote our brand and mitigates our brand risk as shown on page 3. We have been involved with promotion of charitable initiatives, and we have also supported Prostate Cancer UK in raising awareness and funds.
We provide our excess products free of charge to a charity that offers smart formal wear to homeless men seeking employment.
Moss Bros also engages by having work/school placements.
ENVIRONMENT
We do not operate in a sector that creates significant pollution, but our products, logistical operations and stores all impact on the environment to some extent. Whilst we do not have a specific environmental policy, we do strive to minimise our environmental impacts as much as possible and we comply with all applicable environmental laws and regulations. We are continually looking for ways to reduce carbon emissions and to improve the efficiency of our operations, by reducing waste and consolidating deliveries as much as possible.
All our recyclable packaging is recycled where commercially viable and our surplus or end of life IT equipment is disposed of via an accredited recycling provider, to help minimise the amount of our waste ending up at landfill sites. We continually monitor our packaging options to seek a reduction in the amount of materials used.
We are seeking to reduce our impact anyway we can and we are committed to closing the loop and moving towards sustainable manufacturing processes. We have increased the use of recycled polyester and Bio degradable polyester in our ranges. We are is still using natural fibres such as wool and linen and we are growing the volume of sustainably sourced cotton across our product range. We continue to use a selection of trims that have been consciously chosen for their low impact on the environment and it is made sustainably without compromising on quality.
Moss Bros is committed to increasing sustainably sourced products, materials, packaging and trims across the whole business.
Moss Bros monitors carbon emissions and is engaging with suppliers on product sustainability.
Page 5
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Moss Bros Group Limited
Strategic report (continued)
For the period ended 28 January 2023
Page 6
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Moss Bros Group Limited
Strategic report (continued)
For the period ended 28 January 2023
Page 7
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Moss Bros Group Limited
Strategic report (continued)
For the period ended 28 January 2023
SUPPLIERS
It is our policy to maintain the highest standards of ethics, honesty and integrity. To ensure this, we have a zero tolerance approach to bribery and corruption and policies are in place that define the expected standards of our employees and suppliers.
We provide guidance to our employees around the giving and receiving of gifts, hospitality and entertainment. Anyone who suspects, is offered or asked to make a bribe is required to report such an incident or concern to the Company Secretary. The Group has established a confidential helpline for raising concerns regarding impropriety in financial or other matters, which is open to all employees and operates independently of line management. There have been no incidents of bribery or corruption identified or notified to the Board in the year. The significant gift register is reviewed by the Board of Directors annually.
The Company aims to conduct all its business relationships with integrity and courtesy, and to honour all business agreements. We work closely with producers and our supply chain and have taken measures to prevent modern slavery.
This report was approved by the board on 21 April 2023 and signed on its behalf.
David William Adams
Director
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Page 8
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Moss Bros Group Limited
Directors' report
For the period ended 28 January 2023
The directors present their report and the financial statements for the period ended 28 January 2023.
Directors' responsibilities statement
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The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the period, after taxation, amounted to £27m (2022 - £10m).
Dividends totalling £6.75m were paid by the Company to the Parent company (2022: £nil).
The directors who served during the period were:
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Heath Lee Golden (resigned 8 April 2022)
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Sheila Marie Geraghty (appointed 14 April 2022)
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Menoshi Shina (appointed 14 April 2022)
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Page 9
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Moss Bros Group Limited
Directors' report (continued)
For the period ended 28 January 2023
Stakeholder engagement statement
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The way in which the Board engages with its Stakeholders is set out in the s172 Statement on pages 4 - 8 or the Strategic Report.
Corporate social responsibility
The Moss Bros family includes people in our shops, our head office, and extends to our customers, our suppliers, our charities and our local communities.
Employee engagement and development
We pride ourselves at Moss Bros with a culture of having a transparent and open dialogue with our colleagues, and over the past few years having been building up a rhythm of engagement activities which have helped to influence and shape some of our most strategic decisions as a company.
We use listening groups, anonymous feedback platforms, as well as employee surveys as tools to engage with colleagues. This includes participation of the Chief Executive Officer as well as other directors. We remain committed to the personal development of our colleagues, and continually look at new and innovative ways to ensure personal development of everyone who works for us.
We have continued to conduct and publish our Gender pay analysis and have carried out an equal pay review to ensure equity or pay across similar roles.
Diversity and inclusion
Whilst Corporate Social Responsibility, sustainability, diversity and equal opportunities have always been a part of the Moss Bros culture, we are now increasing our focus on ensuring diversity and inclusion as a natural part of the working experience at Moss Bros. While we already have robust supporting policies in place, we are focusing on all the different aspects of where we can improve and how we can embed meaningful and lasting diversity and inclusion values in our day to day working experience. It is not our intention to make bold, unrealistic statements, but rather to drive a steady grassroots awareness and improvement across the business.
Employees with disabilities
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Applications for employment by persons with disabilities are always fully and fairly considered, focusing on the aptitudes and abilities of the applicant concerned. In the event of an employee becoming disabled during their employment, every effort is made to ensure that their employment with the Company continues and that where appropriate, reasonable adjustments are made and relevant training and education of the wider team is arranged to adjust to continued employment. It is the policy or the Company that the training, career development and promotion or persons with disabilities should, as far as possible, be identical with that or other employees.
All product suppliers who join the Moss Bros family must follow our Ethical Code of Conduct before we do business with them. Our code covers all aspects or Health and Safety and Labour and Wages which is based on a code covering:
• General principles
• Non discrimination
• Forced labour
• Child labour
• Wages and hours
• Working conditions
• Environment
• Freedom or association
In line with UK legislation, we publish our annual Modern Slavery Statement which explains the steps we have taken so far to address this issue across our business. Our ongoing training programs continue with our key factories, to train our supplier compliance teams how to ethically audit their own supply base which has helped to increase visibility of our end to end supply chain further down the tiers.
Page 10
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Moss Bros Group Limited
Directors' report (continued)
For the period ended 28 January 2023
Disclosure of information to auditors
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Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.
Post balance sheet events
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There have been no significant events affecting the Company since the year end.
The auditors, Kreston Reeves LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 21 April 2023 and signed on its behalf.
David William Adams
Director
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Page 11
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Moss Bros Group Limited
Independent auditors' report to the members of Moss Bros Group Limited
We have audited the financial statements of Moss Bros Group Limited (the 'Company') for the period ended 28 January 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
∙give a true and fair view of the state of the Company's affairs as at 28 January 2023 and of its profit for the period then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
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In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Page 12
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Moss Bros Group Limited
Independent auditors' report to the members of Moss Bros Group Limited (continued)
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of directors' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
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As explained more fully in the Directors' responsibilities statement set out on page 9, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Page 13
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Moss Bros Group Limited
Independent auditors' report to the members of Moss Bros Group Limited (continued)
Auditors' responsibilities for the audit of the financial statements
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Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Capability of the audit in detecting irregularities, including fraud
Based on our understanding of the company and industry, and through discussion with the directors and other management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to health and safety, anti-bribery and employment law. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, Statement of Recommended Practice, taxation and pension legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure, and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included:
• Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations (including health and safety) and fraud; and
• Assessment of identified fraud risk factors; and
• Challenging assumptions and judgements made by management in its significant accounting estimates; and
• Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and
• Reading minutes of meetings of those charged with governance; and
• Identifying and testing journal entries, in particular any entries made at the year end for financial statement preparation.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
∙Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
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Moss Bros Group Limited
Independent auditors' report to the members of Moss Bros Group Limited (continued)
∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
∙Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
∙Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Anne Dwyer (Bsc) Hons FCA (Senior statutory auditor)
for and on behalf of
Kreston Reeves LLP
Chartered Accountants
Statutory Auditor
London
24 April 2023
Page 15
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Moss Bros Group Limited
Statement of comprehensive income
For the period ended 28 January 2023
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Shop's selling, marketing and distribution costs
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Disposal of dormant subsidiaries
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit for the financial period
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There was no other comprehensive income for 2023 (2022: £NIL).
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The notes on pages 20 to 42 form part of these financial statements.
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Page 16
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Moss Bros Group Limited
Registered number: 00134995
Balance sheet
As at 28 January 2023
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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 were approved and authorised for issue by the board and were signed on its behalf on 21 April 2023.
The notes on pages 20 to 42 form part of these financial statements.
Page 17
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Statement of changes in equity
For the period ended 28 January 2023
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Comprehensive income for the period
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Dividends: Equity capital
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The notes on pages 20 to 42 form part of these financial statements.
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Page 18
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Statement of changes in equity
For the period ended 29 January 2022
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The notes on pages 20 to 42 form part of these financial statements.
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Page 19
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Moss Bros Group Limited
Notes to the financial statements
For the period ended 28 January 2023
Moss Bros Group Limited is a private company limited by shares and is incorporated in England & Wales with the company number 00134995. The address of the registered office and principal place of business is 8 St Johns Hill, Clapham Junction, London, SW11 1SA.
The principal activity of the company consists of the retail, hire, subscription service and the offer of custom made formal wear for men along with a complementary smart casual range, predominately in the UK.
These financial statements are for the 52 week period ended 28 January 2023. The comparative financial statements were prepared for the 52 week period ended 29 January 2022.
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 Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The financial statements are rounded to the nearest round thousand.
The following principal accounting policies have been applied:
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Financial Reporting Standard 102 - reduced disclosure exemptions
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The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Moss Bros Group Holdings Limited as at 28 January 2023 and these financial statements may be obtained from 8 St Johns Hill, Clapham Junction, London, SW11 1SA.
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Exemption from preparing consolidated financial statements
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The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.
Page 20
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Moss Bros Group Limited
Notes to the financial statements
For the period ended 28 January 2023
2.Accounting policies (continued)
The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future.
The Directors have reviewed management forecasts, sensitivities and mitigating actions available to management which take into account possible changes in trading. These forecasts show that the Company should be able to operate within the existing working capital facilities.
The liquidity requirements of the Company have been assessed by the directors and believe them to be adequate for a period of at least 12 months from the date of signing these financial statements and therefore have adopted the going concern basis in preparation of the financial statements.
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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.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Page 21
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Moss Bros Group Limited
Notes to the financial statements
For the period ended 28 January 2023
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Revenue comprises sales to third parties (excluding VAT) and is derived from the retail sale and hire of clothing and ancillary goods. For store retail purchases, revenue is recognised on exchange of goods. For the hire of clothing, the performance obligations are met when the hire clothing and ancillary goods are collected for use by the customer. For Tailor Me, the exchange of goods occurs upon collection. Franchise revenue is recognised on the day of purchase as the goods are transferred to the customer at this point.
Deposits and advances taken in relation to Hire and Tailor Me create contract liabilities until the performance obligations are satisfied at the collection date. E-commence revenue is recognised at despatch date as this is the point where the performance obligations are met. Upon despatch the courier company becomes responsible for successful delivery.
The Company offers a full refund on retail sales within 28 days. The estimated value of consideration relating to refunds is excluded from retail revenue. Management estimates the refund liability by considering the products expected to be returned. The liability creates a refund asset and a refund liability, and the cost of the estimated refunds is reflected in cost of sales.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
Interest income is recognised in profit or loss using the effective interest method.
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.
Page 22
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Moss Bros Group Limited
Notes to the financial statements
For the period ended 28 January 2023
2.Accounting policies (continued)
Defined contribution pension plan
The Company contributes to defined contribution schemes. Contributions payable to the Company Pension Plan and other post-retirement benefits are charged to the Statement of Comprehensive Income in the period to which they relate. Differences between contributions payable in the period and contributions actually paid are shown as either accruals and prepayments in the Balance Sheet.
The Company does not operate or contribute to any defined benefit plans.
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Current and deferred taxation
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The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
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.
Page 23
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Moss Bros Group Limited
Notes to the financial statements
For the period ended 28 January 2023
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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Fixtures, vehicles and equipment
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Leasehold improvements are written off over the shorter of the period of the lease or the useful
economic life of the assets on a straight-line basis. Location premiums are paid to enter a property
which is in a desirable location, stated at cost, net of depreciation and any provision of impairment.
Depreciation is calculated on location premiums over the useful economic life on a straight-line basis.
Where assets of a store are required to be impaired leasehold improvements are treated as part of
the cash-generating unit for impairment.
Hire inventory is held as a fixed asset and depreciated over its estimated useful life. The
classification differs from other stock held as the assets are retained by the Company and hired to
customers on a short-term basis.
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.
Page 24
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Moss Bros Group Limited
Notes to the financial statements
For the period ended 28 January 2023
2.Accounting policies (continued)
Computer software and the directly related development costs that are not an integral part of the related hardware are classified as an intangible asset and stated at cost less accumulated amortisation. Capitalised software costs include external direct costs of goods and services, as well as internal payroll-related costs for employees who are directly associated with capital projects. For both internally generated and other intangibles, amortisation is charged on a straight-line basis over three to five years.
In accordance with FRS 102, internal development costs are only recognised when the Group is able to demonstrate all of the following:
- the technical feasibility of completing the intangible asset so that it will be available for use or
sale.
- its intention to complete the intangible asset and use or sell it.
- its ability to use or sell the intangible asset.
- how the intangible asset will generate probable future economic benefits. Among other
things, the entity can demonstrate the existence of a market for the output of the intangible
asset or the intangible asset itself or, if it is to be used internally, the usefulness of the
intangible asset.
- the availability of adequate technical, financial and other resources to complete the
development and to use or sell the intangible asset.
- the ability to measure reliably the expenditure to the intangible asset during its development.
The inhouse software developed by the Group is used internally to improve operating procedures, creating probable future economic benefits for the Group. The development software includes costs to relating to the enhancement of the Group's e-commerce capabilities.
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Impairment of fixed assets
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At each reporting date, the Company reviews its carrying value of its property, plant and equipment, leasehold improvements and intangible assets to determine whether there is any indication that these assets are impaired. 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.
The Company considers all the assets of a particular store to be one cash generating unit for the purposes of impairment review.
Recoverable amount is the higher of fair value less costs to sell and the value in use. In assessing value in use of a store cash generating unit, the estimated cash flows are discounted to their present value.
If the recoverable amount of a cash generating unit is estimated to be less than its carrying amount, the carrying amount of the cash generating unit is reduced to the recoverable amount. An impairment loss is recognised as an expense immediately.
Investments in subsidiaries are measured at cost less accumulated impairment.
Page 25
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Moss Bros Group Limited
Notes to the financial statements
For the period ended 28 January 2023
2.Accounting policies (continued)
Stock includes all costs of purchases and costs incurred in bringing inventories to their present location and condition. Costs of purchase comprise the purchase price, other taxes and transport costs. These costs are recognised as cost of sales upon the sale of stock. Stock write downs are included in the cost of sales when incurred.
Retail inventory is valued at the lower of cost (weighted average by season) and estimated net realisable value (estimated selling price less costs to be incurred in selling and distribution). Cost includes all direct expenditure and other attributable costs incurred in bringing stock to their present location and condition.
At each balance sheet 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.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Page 26
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Moss Bros Group Limited
Notes to the financial statements
For the period ended 28 January 2023
2.Accounting policies (continued)
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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.
The amount recognised as a provision is the best estimate of the consideration required to settle the
present obligation at the reporting date, taking into account the risks and uncertainties surrounding
the obligation. Where a provision is measured using the cash flows estimated to settle the present
obligation, its carrying amount is the present value of those cash flows.
Provisions for onerous property lease contracts are recognised when the Company believes that the
unavoidable costs of meeting the lease obligations exceed the economic benefits to be received
under the lease.
Provisions for dilapidations for store operating leases are recognised when the Company believes
that the likelihood of incurring costs to rectify the store is probable, due to a contractual obligation
when vacating premises at lease expiry, and a reliable estimate can be made for the obligation.
Estimates are derived through negotiations, reliable third-party opinion or comparable historical
information.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.
Page 27
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Moss Bros Group Limited
Notes to the financial statements
For the period ended 28 January 2023
2.Accounting policies (continued)
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Investments in non-derivative instruments that are equity to the issuer are measured:
∙at fair value with changes recognised in the Statement of comprehensive income if the shares are publicly traded or their fair value can otherwise be measured reliably;
∙at cost less impairment for all other investments.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.
Equity dividends are recognised when they become legally payable.
Page 28
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Moss Bros Group Limited
Notes to the financial statements
For the period ended 28 January 2023
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Judgements in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires the Directors to make judgements, estimates and assumptions that can affect the amounts reported for assets and liabilities, and the results for the period. The nature of estimation is such though that actual outcomes could differ significantly from those estimates.
In preparing these financial statements, the Directors have made the following judgements:
Tangible fixed assets
The Company has recognised tangible fixed assets with a carrying value of £5,752,000 (2022: £5,229,000) at the reporting date (see note 16). These assets are stated at their cost less provision for depreciation and impairment. The Company's accounting policy sets out the approach to calculating depreciation for assets and for subsequent additions. The Company determines at acquisition reliable estimates for the useful life of the asset and its residual value. These estimates are based upon such factors as the expected use of the acquired assets and market conditions. At subsequent reporting dates the Directors consider whether there are any factors such as technological advances or changes in market conditions that indicate a need to reconsider the estimates used.
Where there are indicators that the carrying value of tangible assets may be impaired the Company undertakes tests to determine the recoverable value of assets. Recoverable value assessments include consideration of issues such as future market conditions, the remaining life of the asset and disposal values.
Lease commitments
The Company has entered into a range of lease commitments in respect of property, plant and equipment. The classification of these leases as either financial or operating leases requires Directors to consider whether the terms and conditions of each leases are such that the Company has acquired the risks and rewards associated with the ownership of the underlying assets.
The following are the Company's key sources of estimation uncertainty:
Store impairment
At the end of each reporting period an impairment review is carried out to identify any indicators of impairment for each cash generating unit ("CGU"). Where indicators of impairment are present, the recoverable amount is calculated and an impairment loss recognised to reduce the carrying value of the asset to its recoverable amount.
The Company has identified each store to be a separate CGU. The total number of stores at 28 January 2023 was 107 (2022: 103). At CGU level, the assets that are identified for determining the CGU's carrying amount comprises all classes of property, plant and equipment and leasehold improvements, including associated intangibles.
The estimate that is considered to give rise to the most significant risk of material misstatement within the discounted cash flow model is budgeted sales for 2023/24. A decrease in budgeted sales of 1% would give rise to an impairment of £3,125.
Page 29
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Moss Bros Group Limited
Notes to the financial statements
For the period ended 28 January 2023
3.Judgements in applying accounting policies (continued)
The Company notes that there is subjectivity around the discount rate applied in determining a store's recoverable amount. The Company's policy is to use weighted average cost of capital to determine the discount rate, which is based on several assumptions including the estimation of the Company's appropriate cost of debt in absence of debt within the Company. However, the Company has comfort that a movement in the discount rate of five percentage points would not result in a material difference to the financial statements.
Other assumptions that are not considered to be key estimates and do not give significant risk of material misstatement in the next financial period are in relation to future sales growth rates, future gross margin growth rates and cost increases in future years.
Based on the results of this analysis, an impairment charge of £248,000 (2022: £339,000) has been recognised across 3 stores (2022: 12 stores), 2 of which are due for closure (2022: 0).
There has also been an impairment reversal of £338,000 (2022: £559,000) recognised across 12 stores.
Management will continue to closely monitor trading performance of each store to ensure appropriate assets values are impaired at the earliest point, if required.
Provision for dilapidations
Provisions for dilapidations for store operating leases are recognised when the Company believes the likelihood of incurring costs to rectify the store is probable, due to a contractual obligation when vacating premises at lease expiry, and a reliable estimate can be made for the obligation.
The provision as at 28 January 2023 is £3,505,000 which relates to 103 stores (29 January 2022: £3,333,000), see note 24.
Estimates for dilapidation provisions are based on accurate settlement history against past provisions. The average cost of previous settlements has then been applied to the 103 stores.
Page 30
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Moss Bros Group Limited
Notes to the financial statements
For the period ended 28 January 2023
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An analysis of turnover by class of business is as follows:
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Analysis of turnover by country of destination:
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Government grants receivable
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The operating profit is stated after charging:
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Exchange Gain differences
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Profit/(Loss) on disposal of property, plant and equipment
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Rent paid contingent on turnover
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Page 31
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Moss Bros Group Limited
Notes to the financial statements
For the period ended 28 January 2023
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During the period, the Company obtained the following services from the Company's auditors and their associates:
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Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
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The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.
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Staff costs, including directors' remuneration, were as follows:
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The average monthly number of employees, including the directors, during the period was as follows:
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The average number of employees in 2022 was impacted due to Covid-19 lockdowns and employees being furloughed.
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The highest paid director received remuneration of £446,000 (2022 - £441,000).
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Page 32
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Moss Bros Group Limited
Notes to the financial statements
For the period ended 28 January 2023
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Disposal of dormant subsidiaries
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Forgiveness of intercompany loan
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Other interest receivable
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Interest payable and similar expenses
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Other loan interest payable
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Origination and reversal of timing differences
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Taxation on profit on ordinary activities
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Page 33
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Moss Bros Group Limited
Notes to the financial statements
For the period ended 28 January 2023
13.Taxation (continued)
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Factors affecting tax charge for the period
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The tax assessed for the period is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Other timing differences leading to an increase (decrease) in taxation
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Adjustment in respect of prior period
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Income taxed at different rates on foreign jurisdictions*
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Deferred tax not recognised
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Other differences leading to an increase (decrease) in the tax charge
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IFRS16 FY2020 transitional adjustment
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Total tax charge for the period
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* Income taxed at different rates on foreign jurisdictions relates to the profit for the period of the Company's Irish stores taxed at 12.5%.
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Factors that may affect future tax charges
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During the 2023 budget announced by the Chancellor, it was reported that the main rate of corporation tax rate from 1 April 2023 will rise to 25% for companies with profits over £250,000.
Page 34
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Moss Bros Group Limited
Notes to the financial statements
For the period ended 28 January 2023
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Charge for the period on owned assets
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Page 35
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Moss Bros Group Limited
Notes to the financial statements
For the period ended 28 January 2023
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Fixtures, vehicles and equipment
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Charge for the period on owned assets
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Leasehold improvements relate to leasehold buildings as the element of land contained in these leases is minimal.
An impairment of leased properties of £91,000 (29 January 2022: £249,000) was recognised.
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Page 36
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Moss Bros Group Limited
Notes to the financial statements
For the period ended 28 January 2023
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Investments in subsidiary companies
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Page 37
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Moss Bros Group Limited
Notes to the financial statements
For the period ended 28 January 2023
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Amounts owed by group undertakings
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Prepayments and accrued income
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Cash and cash equivalents
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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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HSBC Bank plc is secured by a fixed and floating charge over the assets of the company. There are no outstanding liabilities at the year end.
Moss Bros Finance Limited is secured by a fixed and floating charge over the assets of the company. There are no outstanding liabilities at the year end.
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Page 38
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Moss Bros Group Limited
Notes to the financial statements
For the period ended 28 January 2023
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Financial assets measured at fair value through profit or loss
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Other financial liabilities measured at fair value through profit or loss
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Financial assets measured at fair value through profit or loss comprise of derivative open contracts.
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Other financial liabilities measured at fair value through profit or loss comprise of derivative open contracts.
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The deferred tax asset is made up as follows:
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Fixed asset timing differences
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Losses and other deductions
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Short term timing differences
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Page 39
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Moss Bros Group Limited
Notes to the financial statements
For the period ended 28 January 2023
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CVA arrangement provision
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Charged to profit or loss
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The dilapidations provision at 28 January 2023 of £3,504,952; (2022: £3,333,176) is the estimated future cost of the Company's dilapidation costs and is expected to be utilised within the end of the lease term for the stores.
The CVA arrangement provision at 28 January 2023 of £1,422,000 (2022: £1,200,000). The company will pay into the Profit Share Fund 10% of the amount by which the Profit Before Tax of the company for the period is in excess of £5m.
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Allotted, called up and fully paid
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100,799,873 (2022 - 100,799,873) Ordinary shares of £0.05 each
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Share premium account
This reserve records the amount above the nominal value received for shares issued by the company. Share premium may only be utilised to write-off any expenses incurred or commissions paid on the issue of those shares, or to pay up new shares to be allotted to members as fully paid bonus shares.
Acquisition reserve
This reserve represents the assets of those companies purchased by the entity.
Profit and loss account
The profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments.
Page 40
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Moss Bros Group Limited
Notes to the financial statements
For the period ended 28 January 2023
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At 28 January 2023 the Company had capital commitments as follows:
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Contracted for but not provided in these financial statements
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The company currently operates a defined contribution scheme. As at 28 January 2023 there was £78,000 outstanding relating to the defined contribution scheme (2022: £62,000). The charge for the period was £435,000 (2022: £369,000).
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Commitments under operating leases
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At 28 January 2023 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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The Company is exempt from disclosing related party transactions with other companies that are wholly owned within the group. The following are related parties outside of the group:
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Purchases from entities controlled by key management personnel
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Amounts due to entities controlled by key management personnel
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The total compensation paid to key management personnel of the company amounted to £2,535,419 (2022: £1,441,025).
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Page 41
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Moss Bros Group Limited
Notes to the financial statements
For the period ended 28 January 2023
The Company's immediate parent is Moss Bros Group Holdings Ltd. The consolidated financial statements for this company can be obtained from 8 St Johns Hill, Clapham Junction, London, SW11 1SA.
In the opinion of the Directors there is no ultimate controlling party.
Page 42
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