HOBBS LIMITED - Annual Accounts

Form: AA - Annual Accounts

FULL ACCOUNTS MADE UP TO 30/01/10

Filed on: 1 Nov 2010

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Hobbs LimiIed
ReporT nod Fincin<:IC#i Stotemenis
Yeclr Ended
## Jcmuory ####
Company Number #######
REGISTRAR OF
COMPANIES
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"LFTONONR‘
L## ##/##/#### ##
COMPANIES HOUSE

Hobbs Limited
Report and financial statements
for the year ended ## January ####
Contents
Page:
# Chlef Executive‘s statement
# Report of the directors
# Independent auditor's report
## Protit and loss account
## Note of historical cost pro tuts and losses and reconciliation of
movements in shareholders' funds
## Balance sheet
## Cash flow statement
## Notes forming part of the financial statements
Directors
N J Duheu
C J Easteat
M Spearlng
S M Verdon
Secretary and registered mottle
C J Easteal, Mrtton Gate, ## Chisweii Street, London, EC#Y AAG
Company number
#######
Auditors
BDO LLP, ## Baker Street, London. W# U #EU
Bankers
Barclays Bank PLC, ## Hampstead Hugh Street, London, NW# #QE

CB _“_ # ##u'#=\#+o
Hobbs Limited
Chlet Executive Offlcer's statement
The Company's ####/## results held up well against the backdrop of the worst recession in modern
times
Revlew of the business
Funancual Hughlughts
£rt# #### ####
Turnover ##.# ## #
Gross Profut ##.# ## #
Gross Profut % ##.#% ## #%
Operatung profit #.# ## #
Cash inflow before Funafuti #.# ## #
Turnover for the ## weeks to ## January #### fell by #% to £## # (## weeks #### - £## #m) Aduustung for
the ##” week last year, turnover fell by # #% As a result of the reduction in consumer confidence and
uncreased competitor discount the promotional actuality undertaken by the Company was uncreased
above Huston leveld Thus uncreased promotional actuality throughout the year coupled with the
requirement to keep Sprung Summer #### seasons terminal stock to manageable levels resulted in an
overall reduction in our gross profit margin of # #% points over the prior year
Operatung Profut at £# Om (#### - £## ml) was impacted by thus decline in top lune sales and reduced
margin performance but still represents a return of # #% on sales Cost control remained Cu key focus
thunk the Company with further effluences and savings being achieved in the year The Company
reacted quickly and decisively to refocus efforts on optumusung performance as trading levels began to
reduce As part of thus refocus the Company undertook a review of the Company's central support
functions resulting in a restructure, reducing head count by c ## till fume equivalents in Summer ####
The full profit and loss account us set out on page # #
Key Developments
Three key developments in the year were the Hobbs firebrand, the launch of our new sub brand,
NW#, and the opening of our new flagship store in Covent Garden, London
Summer #### saw the launch of a new logo replacing the old version which has been in existence since
Hobbs was established in #### Thus firebrand was Denver by the need to have a logo that us truly
modern and that speaks of our design heritage The adduction OT 'LONDON' was made to emphasise
our Brutushness Thus firebrand will be rolled out across the estate on a phased basis as part of the
ongoing store refurbishment programme
September #### saw the introduction OT NW#, a new contemporary collection that seeks to broaden
the brand’s appeal and delight both new and exultant customers Thus new contemporary collection,
feature's shoes, clothes #. accessories was rolled out to ## exultant stores and us the third expression of
the Hobbs brand, Sutton aLongstreet the Hobbs Collectuon & Lumuted Edutuon expressions The collection us
named after the postcode for Hampstead, which us the punctual and Huston hone of the brand Hobbs
has been based in the area since its conception in #### NW# draws unsaturated from all things
Hampstead It will appeal to a customer looking for a more contemporary oftener and us designed to
re-engage the mother #. her grown up daughter with the brand
I

Hobbs Limited
Chlet Executive Otflcer's statement
NW# us part of the management team‘s plan to re-establish the Hobbs brand, brunette Hobbs back to its
core values of quality, craftsmanship #. design The three expressions of Hobbs (Collectuon, Lumuted &
NW#) differentiate Hobbs from other brands on the high street The re-focusing work being done with
the brand (uncleanness NW#) will deliver an oftener with a broad appeal to customers thunk the Hobbs
target market
in November #### we opened our new flagship store in London‘s sought after Covent Garden Our
biggest store to date at #,### sq ft it us positioned on Long Acre and us unsecured by a quintessentially
Englush country manor Thus ‘House of Hobbs' showcases the collections across three spectacular floors
Sunce opening the store has performed ahead of expectations and has quickly established itself as our
highest taking store
In adduction to the above, # new stand alone store was successfully opened (# closures) and # new
concessions A total of ### stores, concessions and outlets were trading in the UK and Ireland as at
January ####
Sales via our Durect channel (transactional website, maul order), which has been designed to provide a
summary Hobbs experience to our customers as they enjoy in our stores, continue to grow The inclusion of
the Hobbs Collectuon on the John Lewus website and NW# on ASOS have been a great success
People
As I mentioned in last year’s functional statements, Nuck Samuel stepped down in his role of Chuet
Executuve in July #### but remained on the Board of the ultimate parent company as a Non Executuve
Durector until ##Th February #### when he formally resigned from the Group l was promoted to Chuet
Executuve in March #### (previously Managung Durector) and Muke Spearung was promoted to Busuness
Development Durector (previously Retaul Durector) at the same time
Durung the year we continued to strengthen the senior management team uncleanness the appointment
of a new Retaul Durector and a Head of Durect, a new key posturing thunk the Company These key
management appointments continue to bring new skulls and talent unto the business to assist the
strategic development of the Company
It has been a demanding year for the Company and for its employees, throughout which they have
demonstrated their continued support and commitment On behalf of the shareholders and the Board.
I would like to take thus opportunity to thank them for all their efforts
Key Performance Indicators
The Board drives business performance through the setting of clearly defined and measured key
performance educators (KPls), taking appropriate action where required to enhance the functional
results of the business
The key areas of focus are
° Year on year turnover growth of the core portfolio
» Deluvery of planned new footage to time and on budget
» Year on year footfall numbers thunk oUr stand alone store portfolio
» Conversuon rate, being the percentage of customers who enter a Hobbs store who make a
purchase on that Vuelta
» Average transaction value, being the average value of each purchase made by our customers
~ Staff productivity, being the average sales value achieved by each store employee
#

Hobbs Limited
Chief Executive Otflcer's statement
in adduction to the store based KPls above, we also measure the average cost per unit for storage and
delivery of products unto stores and also focus on store and head office overheads as a percentage to
turnover with the target of continually unprovable the cost effulgence of the business
Principal risks and uncertainness faced
There are a number of rusks and uncertainness facing the Company The key operational business rusks
and uncertainness that affect the Company are considered to be
Economuc #. Market Rusks
The Company's performance us directly impacted by the economic environment in which we operate
and competitor actuality The global economy us a mayor influence on consumer spending Trends in
employment, exchange rates, unflappable, taxation, consumer debt and clerestory rates impact consumer
expenditure in discretionary areas Adverse changes in the UK economy can have a supplicant upact
on performance, mainly a reduction in revenue growth and pressure on margins due to uncreased
competitive pressures
Competutuon
The retail fashion industry thunk the UK remains highly competitive The Company competes with a
wide variety of retailers of varying sizes using many channels to market In order to remain competitive
the Company must continue to student cconsumer trends, remain up to date on competitor actuality and
continue to compete strongly on design, quality and customer service The Company has a well
established brand with a loyal customer base and dustcart student
Supply Chaun
The Company relies on its key suppliers to produce and deliver products to the high standards that our
customers associate with our brand Over reliance on key suppliers increases the rusk that supply could
become disrupted or lead to products becoming uncompetitive The majority of the Company's
products are now produced overseas opening up the Company to the rusks associated with
international trade uncleanness taxes, import charges and exposure to different legal productions To
mutuality thus ask, the Company has introduced a supplier rusk review process each season to assess
each key supplier for that season
People
The success of the Company depends on management driving all aspects of the business, in particular
the design and procurement of desirable products, the effulgent operation of our retail outlets and
supply chain and the pabulum to select and secure the optimum property portfolio We prude ourselves in
having some of the best protestation and skilled people in the industry, who are motivated by our
culture and passionate about our Brand As a result, the rusk of losing, or not being able to attract, good
people is key The loss of key personnel can have a supplicant upact on performance, at least for a
time
Future Developments
We remain focussed on our customer centric strategy with
» investment in product development adding newness to delight the exultant customer and re-
establishing the brand credentials to win back lapsed and new customers by extending the appeal
of our three brand expressions Hobbs Collectuon, Lumuted Edutuon and NW#,
» the measured expansion of the business offering in the UK and overseas as a quintessential Englush
brand offering contemporary apparel, footwear and accessories to a very high standard, and
# the provision of excellent customer service in all our stores, concessions and franchises
#

Hobbs Limited
Chlet Executive Otflcer's statement
Our strategic goals are to be
o the leading premium lifestyle brand,
» unpunctuality first choice for stylish, discerning women, and
» the brand which redefines affordable modern classic dressing
We remain loyal to our brand values as follows
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Hobbs us a lifestyle brand, renowned for its skilfully cut tautology, luxury separates, statement occasion
wear and high quality footwear and accessories
To assist the strategic development of the brand we will be strung to optimise the returns from our core
retail portfolio over the coming year focussing on our product architecture, developing new in-store
visual merchandise, sTaff scheduling and undertaking store refurbishments The Company will also look
to take advantage of opportunists to increase the size of the retail portfolio as they arise during the
coming year but thus will continue to be dependent on suitable properties becoming available
in lune with our plan, in February #### we commenced trading from five new NW# standalone mats
thunk Johm Lewus stores and we are due to open a new standalone store in Aberdeen in May #### We
will continue to investigate opportunists to develop our international expansion plans following the
success of our four stores in the Muddle East We will also look to further develop our wholesaling
operation both thunk the UK and Europe
Outlook
The Company us in a functionally robust posturing which we will safeguard through our constant focus on
cash generation and costs We have a strong management team in place with a clear strategy for
growth We are committed to unprovable and extending the customer proposition building on the
unutterable we have put in place to develop the business and the brand.
Clearty, #### will be another challenging year and we cannot rely on the general underlying economy
to improve in the short term Consumer behaviours have determinatel changed during the current
economic downturn and whether thus us a permanent change has yet to be proved A key unutterable will
be a fundamental shift of focus from product and process to the customer We will become a truly
customer centric business, putting the customer at the core of everything we do. The brand us fortunate
to have a very loyal customer base which has built up over the past ## years As well as continuing to
delight thus core customer we have a huge opportunity to reintroduce the brand to lapsed customers
and to introduce the brand for the first time to a new wider customer base
#

Hobbs Limited
Chlet Executive Otflcer's statement
My sensuous us that the brand becomes the unstuffy furSt choice for every discerning woman whenever
she wants to look fabulous and I have absolute confidence in the strength of our brand which we will
continue to develop, innovate and invest in to maximum oUr performance in the UK, preternaturally and
on lune
Nucky D
Chlef Executive
Date ## Aprul ####
#

CLD Nm i#'f:\#l-+#
Hobbs Limited
Report of the directors
for the year ended ## January ####
The directors present their report together with the audited Hnancual statements for the year ended ##
January ####.
Results and dividends
The profit and loss account us set out on page ## and shows the profit for the period
The directors have not approved any dividends for the period (#### - £## ,###,###)
Prlnclpal activities
The company's principal actuality dung the year continued to be that of the design and retaliation of
ladies clothing, footwear, leather goods and accessories
The directors are pleased with the results for the year and are confident that growth in turnover and
profits will be achieved
Enhanced business review
The fair review of the business and principal rusks and uncertainness faced are included thunk the Chuet
Executuve`s statement on pages # to #
Employee Involvement
Wuthun the bounds of commercial confidentiality, unformatted us disseminated to all members of staff
about matters that affect the progress of the company and are of interest and concern to them as
employees
Disabled persons
Dusabled persons are employed by the company when they appear to be suited to a particular
posturing The aptitude and absolutes of disabled persons are more easily met in certain aspects of the
company's business and every effort us made to ensure that they are given full and fair consideration
In the event of members of staff becoming disabled every effort us made to ensure that their
employment with the company continues and that appropriate training us arranged
Flnanclal Instruments
The Company us exposed through its operations to the following tuna punctual asks
Cash flow interest rate rusk
Borrowungs of the Company are managed centrally Operations are financed by a mixture of retained
profits, bank borrowings and long term loans Operatuons are not permitted to borrow long-term from
external sources locally
Foreugn currency rusk
The Company us exposed to foreign exchange rusk as it has operations in various parts of the world
whose functional currency us not the same as the Company's primary functional currency (sterling) The
net assets of such overseas operations are exposed to currency ask gunning nose to gains or losses on
retransmission unto sterling The Company does not consider the ask created by hedging net investments
in overseas operations warrants the reduction in volatility in consolidated net assets
#

Hobbs Limited
Report of the directors
for the year ended ## January #### (Continued)
Luq duty rus
The duty-free rusk of the Company us managed centrally The company provides budgets annually in
advance which enable the Group's cash requirements to be anticipated Surplus cash us held centrally
to maximum rturns achurned on deposits As part of the Senuor Debt Faculutues Agreement the Group
has access to a revolving credit faculty whuh us utilised when required by the company to fund short-
term working capital requirements
Credut rusk
The Company has a small exposure to credit rusk from credit sales it us the Company's policy to assess
the credit rusk of new customers before entering unto such contracts
Policy and practice on the payment of suppliers
it us the company's policy to agree payment terms as part of any formal contract with a supplier and to
make every endeavour to abide by the agreed terms Where a purchase us not covered by a formal
contract, and no agreement us reached in advance of raising an order, the policy us that any valid
unfavoured will be paid in full The company us sympathetic to, and pays particular attention to, the cash
flow needs of its smaller suppliers Trade creditor days of the Company as at ## January ####,
calculated in accordance with the Companues Act ####, were ## days (#### - ##) Thus represents the
ratio, expressed in days, between the amounts unvoiced to the Company in the year by its suppliers and
the amounts due at the year end to trade creditors falling due thunk oen year
Directors
The directors of the company during the year were
C J Easteal
N J Dulueu
N J Needham (resigned # March ####)
M Spearung
S M Verdon
M Spearung, S M Verdon, N J Dulueu and C J Easteal are also directors of the ultimate parent company,
Hobbs Holdungs No l Lumuted, and their interests in the share capital of that company are shown in its
functional statements No director had any shareholding in Hobbs Lumuted
Directors' responsibility
The directors are responsible for preparing the annual report and the functional statements in
accordance with applicable law and regulations
Company law requires the directors to prepare functional statements for each functional year Under that
law the directors have elected to prepare the functional statements in accordance with Unuted Kungdom
Generally Accepted Accountung Practuce (Unuted Kungdom Accountung Standards and applicable
law) Under company law the directors must not approve the functional statements unless they are
saturated 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
#

Hobbs Limited
Report of the directors
for the year ended ## January #### (Continued)
In preparing these functional statements, the directors are required to
o select suitable accounting pollutes and then apply them consequently,
» make judgements and accounting estimates that are reasonable and prudent,
» state whether applicable UK Accountung Standards have been followed, subject to any material
departures disclosed and explained in the functional statements,
» prepare the functional statements on the going concern basis unless it us 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 functional
posturing of the company and enable them to ensure that the functional statements comply with the
Companues Act #### 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 irregular
Audirots
All of the current directors have taken all the steps that they ought to have taken to make themselves
aware of any unformatted needed by the company's auditors for the purposes of their audit and to
establish that the auditors are aware of that unformatted The directors are not aware of any relevant
audit unformatted of which the auditors are unaware
BDO LLP have expressed their willingness to continue in office and a resolution to re-appoint them will
be proposed at the annual general meeting
Approved by the Board and signed on Its behalf by:
C J Easteal
Director
Date ## Aprul ####
#

¢g_ Nu _ r#Ti'-##'-#-#
H#BBS Ltmited
Independent auditor's report
TO THE MEMBERS OF HOBBS LIMITED
We have audited the functional statements of Hobbs Lumuted for the year ended ## January #### which
comprise the profit and loss account, the note of historical cost profits and losses, the reconcilable of
movements in shareholders' funds, the balance sheet, the cash flow statement and the related notes
The functional reporting framework that has been applied in their preparation us applicable law and
Unuted Kungdom Accountung Standards (Unuted Kungdom Generally Accepted Accountung Practuce)
Thus report us made solely to the company's members, as a body, in accordance with Chapter # of Part
## of the Companues Act #### 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 auditor's 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 thus
report, or for the opulences we have formed
Respectlve responsibility of directors and auditors
As explained more fully in the statement of directors' responsibility, the directors are responsible for the
preparation of the functional statements and for being saturated that they give a true and fair view Our
responsibility us to audit the functional statements in accordance with applicable law and international
Standards on Audutung (UK and Ireland) Those standards require us to comply with the Audutung
Practuces Board's (APB's) Ethucal Standards for Audutors
Scope of the audit of the financial statements
An audit involves obtainable evidence about the amounts and disclosures in the functional statements
sufficient to give reasonable assurance that the functional statements are free from material
misstatement, whether caused by fraud or error Thus includes an assessment of whether the
accounting pollutes are appropriate to the company’s circumstances and have been consistently
applied and adequately disclosed, the reasonableness of supplicant aaccounting estimates made by
the directors, and the overall presentation of the functional statements
Oplnlon on financial statements
In our opulent the functional statements
~ give a true and fair view of the state of the company's affairs as at ## January #### and of its profit
for the year then ended,
» have been property prepared in accordance with Unuted Kungdom Generally Accepted
Accountung Practuce, and
~ have been prepared in accordance with the requirements of the Companues Act ####
Oplnion on other matters prescribed by the Companies Act ####
In our opulent the unformatted given in the directors' report for the functional year for which the functional
statements are prepared us consistent with the functional statements
# u

Hobbs Limited
Independent auditors report (Continued)
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companues Act #### requires
us to report to you if, in our opulent
» adequate accounting records have not been kept, or returns adequate for our audit have not
been received from branches not saluted by us, or
# the financial statements are not in agreement with the accounting records and returns, or
» certain disclosures of directors' remuneration speculated by law are not made, or
~ we have not received all the unformatted and explanations we require for our audit
#>m\,».P
Donald Wulluarns, (senior statutory auditor)
For and on behalf of BDO LLP, statutory auditor
London
Unuted Kungdom
## Aprul ####
BDO LLP us a permuted incunabulum partnership registered in England and Wales (with registered number
OC###l##)
##

Hobbs Limited
Proflt and loss account
for the year ended ## January ####
C°_`,¢,_ ISTIQQLO-O
Note #### ####
£'### £'###
Turnover # ##,### ##,###
Cost of sales (##,###) (##,###)
Gross profit ##,### ##,###
Dustrubutuon costs (##,###) (##,###)
Admunustratuve expenses (#,###) (#,###)
Operating profit # #,### ##,# ##
Other income ## #
Interest receivable # ### ###
Interest payable and summary charges # (#,###) (#,###)
Profit on ordinary activities before taxation #,### ##,###
Taxatuon on profit from ordinary actuates # (#,###) (#,###)
Protlt on ordinary tactless aftee taxation ## #,### #,###
The results stated above are derived from continuing actuates
All recognised gains and losses have been included in the profit and loss
The notes on pages ## to ## form part of these functional statements
# #

Hobbs Limited
Note OT historical cost profits and losses and reconciliatory of movements in shareholders' funds
for the year ended ## January ####
¢__,_,,, ####"-#####
Note #### ####
£'### £'###
Note of historical cost profits and losses
Reported profit on ordinary actuates before taxation #,### ##,###
Dufference between actual and historical cost depreciation ## ##
Hlstorlcal cost profit on ordinary activities before taxation #,### ##,###
Retained historical cost profit for the year after taxation #,### #,###
Reconclllatlon OT movements in shareholders' funds
Profut for the functional year #,### #,###
Duvudends # - (##,###)
Net increase/(decrease) in funds #.### (##,###)
Openung shareholders' funds ### ##.###
Closing shareholders' funds #,### ###
The notes on pages ## to ## form part of these functional statements
##

Hobbs Limited
Balance sheet
¢_°_N=». ##### L#-D
at ## January ####
Company number ####### Note #### #### #### ####
£‘O## £'### £'### £'###
Fixed assets
Tanguble assets ## ##,### ##,###
Current assets
Stocks # I #,### ##,###
Debtors ##
- due thunk oen year #,###
- due after more than one year ##,###
#,### ##,###
Cash at bank and in hand #,### #,###
##,###
##,###
Creditors: amounts falling due
wealth one year ## (##,###) (##,###)
Net current assets #,### ##,###
Total assets less current trisyllable ##,### ##,###
Creditors: amounts falling due
after more than one year ## (##,###) (##,###)
Total assets less current Ilabllltles #,### ###
Capital and reserves
Called up share capital ## ### ###
Revaluatuon reserve ## - ##
Profut and loss account ## #,### ###
Shareholders' funds #,### ###
The functional statements were approved by the Board of Durectors and chorused for issue on of; :(_ QI()
They were signed on its behalf by
C J Easteal
Director
The notes on pages ## to ## form part of these functional statements
##

Hobbs Limited
Cash flow statement
for the year ended ## January ####
,_,°_ ###:-\=\ #-o
Note #### #### #### ####
£'### £'### £'### £'###
Net cash Inflow from operating
activates ##,### ##,###
Returns on Investments and
serving's of finance
Interest payable (##) -
Interest received ## ###
Income from fixed asset investments ## #
Net cash Inflow from returns on
Investments and serving's of finance ## ###
Taxation
UK corporation tax paid (#,###) (###)
Capltal expenditure and financial
Investment
Purchase of tangible fixed assets (#,###) (#,###)
Proceeds from fixed asset sales - ###
(#,###) (#,###)
Net cash Inflow before financing #,### ##,###
Flnanclng
Payments to group companies (##,###) (##,###)
Receupts from group companies ### #,## #
Net cash outflow from financing (##,###) (##,###)
Decrease In cash ##,## (#,###) (#,###)
The notes on pages ## to ## form part of these financial statements
##

can Nm i‘#'#I#Ri-ID
Hobbs Limlted
Notes forming part of the financial statements
for the year ended ## January ####
Accounting policies
The functional statements have been prepared under the historical cost convention, as modulated by
the revaluation of land and buildings and are in accordance with applicable accounting
standards
The functional statements are made up to ## January ####, the closest Saturday to ## January The
comparative figures cover the ## week period ended ## January #### and the posturing at that
date The following principal accounting pollutes have been applied
Turnover
Turnover represents sales to outside customers at unvoiced amounts less value added tax and
other sales related taxes
Pensuon costs
Contrubutuons to the company’s defined contribution pension scheme are charged to the profit
and loss account in the year in which they become payable The assets of the scheme are held
separately from those of the company in an independently administered fund
Fixed assets and depreciation
Deprecuatuon us provided to write off the cost or valuation, less estimated residual values, of all fixed
assets, evenly over their expected useful lives it us calculated at the following rates
Leasehold property - over the lease term
Fuxtures and tungsten - over # - ## years
Equupment - over # » ## years
Leasehold properties
The company took advantage of the translational arrangements under Funancual Reportung
Standard ## which allow the carrying value of revalued assets acquired prior to ## December ####
to be retained All adduction since thus date are stated at cost Where previously revalued assets
are disposed, their book value us eliminated and an appropriate transfer made from the
revaluation reserve to the profit and loss account
Deprecuatuon us calculated on the revalued amount The difference between depreciation on the
revalued amount and the Huston coSt of leasehold properties is transferred from the revaluation
reserve to the profit and loss account
Stocks
Stocks are valued at the lower of cost and net realisable value Cost us based on the cost of
purchase on a weighted average basis Net realisable value us based on estimated selling price
less additional costs to completion and disposal
##

Hobbs Limited
Notes forming part of the financial statements
for the year ended ## January #### (Continued)
Accounting policies (Contunued)
Work in progress
Work in progress us valued on the basis of direct costs plus attributable overheads based on normal
level of actuality Provusuon us made for any foreseeable losses where appropriate No element of
profit us included in the valuation of work in progress.
Taxatuon
The charge for taxation us based on the taxable profit for the year and takes unto account taxation
deterred because OT tumult differences between the treatment of certain items for taxation and
accounting purposes
Deferred tax balances are recognised in respect of all tumult differences that have originated but
not reversed by the balance sheet date except that
o deferred tax us not recognised on tumult differences Samsung on revalued properties unless the
company has entered unto a bun dung sale agreement and us not proposing to take advantage
of roll-over relief, and
o the recognisances of deferred tax assets us permuted to the extent that the company anticipates to
make sufficient taxable profits in the future to absorb the reversal of the underlying tumult
differences
Deferred tax balances are not discounted
Leased assets
The company has no assets which are financed by Ieasung agreements that give rights
approximation to ownership (‘finance leases')
As such, all leases are treated as operating leases Theur annual rentals are charged to the profit
and loss account on a straight-tune basis over the term of the lease
Reverse premiums and summary incentives to enter unto operating lease agreements are unusually
recorded as deferred income and released to the profit and loss account over the year to the
date on which the rent us first expected to be ad)used to the prevalent mmarket rate
Foreugn currency
Foreugn currency transactions are translated at the rates ruling when they occurred Foreugn
currency monetary assets and Iuabulutues are translated at the rates ruling at the balance sheet
dates Any differences are taken to the profit and loss account
Duvudends
Equuty dividends are recognised when they become legally payable antiserum equity dividends are
recognised when paid Funal equity dividends are recognised when approved by the shareholders
at the annual general meeting
##

Hobbs Limited
Notes forming part of the financial statements
for the year ended ## January #### (Continued)
Turnover
The turnover and profit before tax are attributable to the principal actuality of the company, being
the design, manufacture and retail sale of ladies clothing, footwear, leather goods and
accessories
An analysis of turnover by destination us given below
Unuted Kungdom
Overseas
Employees
The average number of employees, uncleanness directors,
during the year were
Sellung and distribution staff
Admunustratuve staff
The aggregate remuneration of these employees was as follows
Wages and salaries
Socual security costs
Pensuon costs
##
####
£'###
##,###
###
##,###
####
Number
###
###
###
£’###
##,###
#,###
##
##,###
####
£'###
##,## #
###
##,###
####
Number
###
# ##
###
£'###
##,###
#,###
###
##,###

HobbsLhnHed
Notes forming part of the financial statements
for the year ended ## January #### (Continued)
Directors
#### ####
£’### £'###
Durectors' emoluments consist of
Fees and remuneration for management services ### #,###
The emoluments of the highest paid director were £###,### (####- £###,###) No company
pension contributions (#### - £##,###) were made to a money purchase scheme on their behalf
There were pension costs relating to # Durectors (#### - #) of £##,### in the year (#### - £###,###)
Operating profit
Profut on OTOIDOIW/ actuates before taxation us stated
after charging/(credulity)
Deprecuatuon - owned fixed assets
Operatung lease rentals - land and buildings
Audutors' remuneration - audit services
- non-audit services
Loss/(profit) on disposal of fixed assets
Movement on foreign exchange
Interest receivable
intercommunicate loans
Other interest
Interest payable and stellar charges
Bank interest
intercommunicate loans
Other interest
##
####
£'O##
#,###
##,###
##
##
##
(###)
####
£'###
#,###
#,###
##
# B#
(###)
###
####
£'###
###
##
###
####
£'###
###
###
####
£'###
#
#,###
# #
####
£'###
#
#,###
#,###
#,###

Hobbs Limited
Notes forming part of the financial statements
for the year ended ## January #### (Continued)
Taxation on profit from ordinary tactless
#### #### #### ####
£'### £'### £'### £'###
Current tax
UK corporation tax on profits
of the year #,### #,###
Adiustment in respect of previous
years (###) (###)
Total current tax ### #,###
Deferred tax
Movement in deferred tax provision
(note ##) ## ##
Taxation on profit on ordinary actuates #,### #,###
The tax assessed for the year us higher than the standard rate of corporation tax the UK The
differences are explained below
#### ####
£'### £'###
Profut on ordinary actuates before tax #,### ##,###
Profut on ordinary actuates at the standard rate
of corporation tax in the UI( of ##% (#### - ## ##%) ### #,###
Effects of
Expenses not deductible for tax purposes (##) (###)
Dufference between capital allowances and
depreciation for the year ### ###
Chargeable gains - ##
Over provision in prior years (###) (###)
Group relief claimed (###) (#,###)
Payment for group relief ### #,###
Current tax charge for year ### #,###
Dlvldends
#### ####
£'### £'###
Intenm pudendum of £NuI (#### - £## ##) per share - ##,###
Second mounter pudendum of £NuI (#### - £## ##) per share - #,###
- ##,###
##

Hobbs Limited
Notes torment part of the financial statements
for the year ended ## January #### (Continued)
Tangible assets
Short
leasehold Fixtures
properties and fittings Equipment Total
£'### £'### £'### £'###
Cost or valuation
At # February #### #,### ##,### #,### ##,###
Addutuons ### #,### ### #,###
Dusposals (##) (###) - (###)
At ## January #### #,### ##,### #,### ##,###
Deprecuatuon
At # February #### #,### ##,### #,### ##,###
Provuded for the year ### #,### ### #,###
Dusposals (##) (###) - (###)
At ## January #### #,### ##,### #,### ##,###
Net book value
At ## January #### #,### ##,### ### ##,###
At ## January #### #,### ##,### ### ##,###
The short leaseholds comprise £'###
Valuatuon on open market basis in #### #,###
Addutuons post #### #,###
Dusposals (###)
#,###
Accumulated depreciation (#,###)
Net book value #,###
##

Hobbs Limited
Notes forming part of the financial statements
for the year ended ## January #### (Continued)
Tangible assets (Contunued)
If stated under historical cost principles the comparable amounts for the short leaseholds would
be
£'###
Cost #,###
Accumulated depreciation (#,###)
Net book value #,###
Stocks
#### ####
£'### £'###
Raw materials ### ###
Work in progress ### ###
Funushed goods and goods for resale #,### #,###
#,### ##,###
There us no material difference between the replacement cost of stocks and the amounts stated
above
Debtors
#### ####
£'### £'###
Trade debtors #,### #,###
Amounts owed by group undertakings ## ##,###
Other debtors ### ###
Deferred tax (note ##) ## ###
Prepayments and accrued income #,### #,###
#,### ##,###
The deferred tax above of £##,### (#### - £###,###) us not due for payment thunk oen year In
adduction, included Guthrie amounts owed by group undertakings us £NuI (#### - £##,###,###) which IS
due after more than one year
##

Hobbs Limited
Notes forming part of the financial statements
for the year ended ## January #### (Continued)
Deferred taxation
The movement in the deferred taxation account dung the year was
At # February ####
Debuted to profit and loss account
A### January ####
####
£`###
# # #
(##)
##
####
£'###
###
(###
###
The deferred taxation balance consists of the tax effect of tumult differences in respect of
differences between capital allowances and depreciation
Creditors: amounts falling due within one year
Trade creditors
Amounts owed to group undertakings
Taxatuon and social security
Corporatuon tax
Other creditors
Accruals and deferred income
####
£'###
#,###
#,###
#,###
###
##
#,###
##,###
####
£'###
#,###
#,###
#,###
#,###
## #
#,###
##,###
There us an interlocutory deed executed on ## December #### by all group companies on which
the bank borrowings of the group are secured The possibility of an outflow in respect of these
guarantees us considered remote and so the effect us not quantified
Creditors: amounts falling due after more than one year
#### ####
£'### £'###
Amounts owed to group undertakings ##,### ##,###
Share capital
Authorised, allotted, called up and fully paid
#### #### #### ####
Number Number £'### £'###
Ordunary shares of £# each ###,### ###,### ### ### `
##

Hobbs Limited
Notes forming part of the financial statements
for the year ended ## January #### (Continued)
Reserves
Profit
Revaluation and loss
reserve account
£'### £'###
At I February #### ## ###
Profut for the year - #,###
Transfer to profit and loss account (##) ##
A### January #### _ #,###
Commitments under operating leases
As at ## January ####, the company had annual commitments under non-cancellate otemperature
leases as set out below
Operatung leases which expire
Wuthun one year
In two to five years
Over five years
Land and
buldings
####
£'###
###
#,###
#,###
##,###
Reconclllatlon of operating profit to net cash Inflow from operating activities
Operatung profit
Deprecuatuon
Loss/(profit) on sale of fixed assets
Decrease/(increase) in stocks
Decrease/(increase) in debtors
Increase in creditors
Net cash inflow from operating actuates
##
####
£'###
#,###
#,###
##
#,###
###
###
##,###
Land and
buldings
####
£'###
###
#,###
#,###
##,###
####
£'###
##,# ##
#,###
(###)
(#,###)
(###)
#,###
# #,###

Hobbs Limited
Notes forming part of the financial statements
for the year ended ## January #### (Continued)
Reconclllatlon of net cash Inflow to movement In net debt
(Decrease) in cash in the year
Net cash outflow from Funafuti
Movement in net funds resulting
from cash flows
Non-cash movement in Funafuti
Movement in net debt
Openung net debt
Closung net debt
Analysts of net debt
Cash in hand and at bank
Debt due thunk oen year
Debt due after one year
Total
#### #### #### ####
£### £### £### £###
(#,###) (#,###)
##,### ##,###
##,### ##,###
#,### ##,###
(#,###) (##,###)
(#,###) (##,###)
#,### (##,###)
(##,###) (#,###)
(##,###) (##,###)
At At
# February Cash Non-cash ## January
#### flow flow ####
£'### £'### £'##O £'###
#,### (#,###) - #,###
(#,###) - #,### (#,###)
(##,###) ##,### (#,###) (##,###)
(##,###) #,### (#,###) (##,###)
The debt relates to Funafuti prounded by group companies In previous years the amounts have
been shown as cash flows from operating actuates, tthese have been classified in the current year
functional statements as debt with the corresponding amounts adjusted
Forelgn exchange contracts
At the year end the company had entered unto a ‘window forward plus contract' to reduce its
exposure to movements in the principal exchange rates in which it has transactions The market
value of thus contract at ## January #### was £##,###
##

Hobbs Limited
Notes forming part of the financial statements
for the year ended ## January #### (Continued)
Related party transactions
The company has taken advantage of the exemption allowed by Funancual Reportung Standard #,
"Related Party Dusclosures", not to disclose any transactions with flutters that are included in the
consolidated functional statements of Hobbs Holdungs No # Lumuted on the grounds that ###% of the
voting rights in the company are controlled thunk that group and the company us included thunk
those functional statements
In the year £##,### (#### - £###,###) of services were purchased from CVUK Lumuted, on an arms
length basis, where a former Durector of Hobbs Lumuted, N Samuel, us a Non-Executuve Durector At
the period end £#,### was due to CVUK Lumuted (#### - £Nul)
Ultimate parent company
A### January #### and ## January #### the company's graduates parent company was Peace #.
Quuet Lumuted
Hobbs Holdungs No # Lumuted us the ultimate parent company and ultimate controlling party of both
the smallest and largest groups of which the company us a member and for which group functional
statements are prepared Copues of the functional statements of Hobbs Holdungs No # Lumuted are
available from Companues House
##