DAVID HOWARD (UK) LIMITED - Annual Accounts

Form: AA - Annual Accounts

FULL ACCOUNTS MADE UP TO 31/08/09

Filed on: 8 Jun 2010

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David Howard (UK) Limited
Report and Financial Statements
Year Ended
## August ####
Company number #######
AM##PKLZ
##/##/####
COMPANIES HOUSE
LNAH#KDY
L## ##/##/#### ###
\iii\\\\\\\\\\\)\\\\\\\\\\\\\


David Howard (UK) Limited
Annual report and financial statements
for the year ended ## August ####
Contents
Page:
# Report of the directors
# Independent auditor’s report
# Profit and loss account
# Statement of total recognised gains and losses
# Balance sheet
# Cash flow statement
# Notes forming part of the financial statements
Directors
V H RawIinson
A P Shaw
J L Martlnr
C Sweeney
I Eberlein
T J Fnor
S P Corcoran
Secretary and registered office
A Rawlrnson, ## - ## Baldock Street, Ware, Hertfordshire, SG## #DH
Company number
#######
Auditors
BDO LLP, Prospect Place, B# Great North Road, Hatfield, Hertfordshire, AL# #BS

David Howard (UK) Limited
Report of the directors
for the year ended ## August ####
The directors present their report together with the audited financial statements for the year ended ## August
####
Results and dividends
The profit and loss account IS set out on page # and shows gross profit of £#,###,### and profit after tax of
£###,### for the year
The directors do not recommend the payment of a final dividend
Principal activities, trading review and future developments
The company's principal activity is the design, manufacture and sale of men’s shirts to UK retailers
#### has been a challenging trading year due to the uncertainty over the UK economy and volatile currency
rates, this has resulted in a decrease in gross profit
Our customer portfolio has a good mix of menswear retailers In different sectors and we are reviewing our
potential customer inst carefully before making any approaches, so that we can plan our growth in line with the
optimum mix Turnover growth in #### has been based on this strategy
Although we anticipate #### to be a challenging trading year, given the continued uncertainty in the UK economy
and currency rates, we are confident of our ability to position our business to cope with these challenges
Financial risk management
The directors regularly review the financial requirements of the company and the risks associated therewith
Company operations are primarily financed from a debt factoring arrangement The company does not use
complicated financial instruments nor does it use derivative financial instruments for trading purposes
The main financial risks arising from the company's activities are credit risk, interest rate risk, foreign exchange
risk and liquidity risk These are monitored by the board of directors and were not considered to be significant at
the balance sheet date
The company's policy nm respect of credit risk, is to require appropriate credit checks on potential customers
before sales are made For foreign exchange risk, payments in HK$ and USS are managed by holding bank
accounts in these relevant currencies and by buying currency using forward contracts
Charitable and political contributions
During the year the company made chartable ccontributions of £### (#### - E###) There were no political
contributions
#

David Howard (UK) Limited
Report of the directors
for the year ended ## August #### (Continued)
Directors
The directors of the company dung the year were
V H Rawlfnson
A P Shaw
J L Martini
C Sweeney
I Eberleln
T J Fnor
S P Corcoran (appointed ## February ####)
Directors' responsibilities
The directors are responsible for preparing the annual 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 United Kingdom Generally
Accepted Accounting Practice (Unlted Kingdom Accounting Standards and applicable law) 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 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 maternal departures
disclosed and explained in the Financial statements, and
~ 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 positron of the company
and enable them to ensure that the Financial statements comply with the Companies 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 information needed by the company's auditors for the purposes of their audit and to establish that the
auditors are aware of that information The directors are not aware of any relevant audit information 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
By order of' e Board
- QL f>( # #
secretary -
##"‘ May ####
A Kbrwu ~so~
#

David Howard (UK) Limited
Independent auditor’s report
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF DAVID HOWARD (UK) LIMITED
We have audited the financial statements of David Howard (UK) Limited for the year ended ## August ####
which comprise the profit and loss account, the statement of total recognised gains and losses, the balance
sheet, the cash flow statement and the related notes The financial reporting framework that has been applied in
their preparation IS applicable law and United Kingdom Accounting Standards (United Kingdom Generally
Accepted Accounting Practice)
This report IS made solely to the company's members, as a body, in accordance with sections ### and ### of the
Companies 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 this report, or for the opinions we have formed
Respect/be respond/blunt/es of d/rectors and auditors
As explained more fully in the statement of directors’ responsibilities, the directors are responsible for the
preparation of the financial statements and for being satisfied that they give a true and fair view Our
responsibility is to audit the financial statements in accordance with applicable law and International Standards
on Audltlng (UK and Ireland) Those standards require us to comply with the Auditing Practices Board's (APB's)
Ethlcal Standards for Auditors
Scope of the audit of the Nancy/al statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to
give reasonable assurance that the financial statements are free from material misstatement, whether caused by
fraud or error This includes an assessment of whether the accounting policies are appropriate to the
company's circumstances and have been consistently applied and adequately disclosed, the reasonableness of
slgnlflcant accounting estimates made by the directors, and the overall presentation of the financial statements
Op/Mon on franc/al statements
in our opinion the Financial statements
» give a true and fair view of the state of the company's affairs as at ## August #### and of its profit for the
year then ended,
» have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practlce,
and
~ have been prepared in accordance with the requirements of the Companies Act ####
Oplmon on other matters prescribed by the Compan/es Act ####
in our opinion the information given IH the directors’ report for the financial year for which the financial statements
are prepared IS consistent with the financial statements
#

David Howard (UK) Limited
Independent auditor’s 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 Companles Act #### 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 speckled by law are not made, or
» we have not received all the information and explanations we require for our audit
Raymond Adams (den/or statutory auditor)
For and on behalf of BDO LLP, statutory auditor
Hatheld
Un/Ted Kingdom
Date ## If-,/#
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC######)
#

David Howard (UK) Limited
Proflt and loss account
for the year ended ## August ####
Note #### ####
£ E
Turnover # ##,###,### ##,###,###
Cost of sales ##,###,### ##,###,###
Gross profit #,###,### #,###,###
Administrative expenses #,###,### #,###,###
Operating profit # ###,### ###,###
Other interest receivable and similar income #,### #,###
Interest payable and similar charges # (##,###) (##,###)
Profit on ordinary activities before taxation ###,### ###,###
Taxation on profit on ordinary activities # ##,### ###,###
Profit on ordinary activities after taxation ###,### ###,###
All amounts relate to continuing activities
The notes on pages # to ## form part of these financial statements
#

David Howard (UK) Limite
d
Statement of total recognised gains and losses
for the year ended ## August ####
Note #### ####
£ £
Profit for the financial year ###,### ###,###
Unreallsed dental on revaluation of Gxed asset investments ## (#,###) (##,###)
Total recognised gains and losses for the financial year ###,### ###,###
The notes on pages # to ## form part of these financial statements
#

David Howard (UK) Limited
Balance sheet
at ## August ####
Company Number #######
Note #### #### #### ####
£ E E £
Fixed assets
Tangible assets # ###,### ###,###
Fixed asset Investments ## ###,### ###,###
###,### ###,###
Current assets
Stocks ## #,###,### #,###,###
Debtors ## #,###,### #,###,###
Cash at bank and in hand #,### #,###
#,###,### #,###,###
Creditors' amounts falling due
within one year ## #,###,### #,###,###
Net current assets #,###,### #,###,###
Total assets less current inabilities #,###,### #,###,###
Creditors: amounts falling due
after more than one year ## ##,### ##,###
#,###,### #,###,###
Capital and reserves
Called up share capital ## ##,### ##,###
Share premium account ## ##,### ##,###
Revaluation reserve ## ##,### ##,###
Proflt and loss account ## #,###,### #,###,###
Shareholders' funds #,###,### #,###,###
V a&
Dire tor
##
/, lg
The fin n state me t re approved by the Board of Directors and authorised for Issue on ## May ####
I
H
The notes on pages # to ## form part of these financial statements
#

David Howard (UK) Limited
Cash flow statement
for the year ended ## August ####
Note #### #### #### ####
£ £ £ £
Net cash (outflow)/inflow from
operating activities ## (#,###) #,###,###
Returns on investments and servicing
of finance
Interest received #,### #,###
Interest paid (##,###) (##,###)
Interest paid hire purchase (#,###) (###)
Net cash outflow from returns on
investments and servicing of finance (##,###) (##,###)
Taxation
Corporation tax paid (###,###) (###,###)
Capital expenditure and financial
investment
Payments to acquire tangible fixed assets (##,###) (###,###)
Payments to acquire fixed asset Investments (#,###) (#,###)
Receipts from sale of fixed assets ## ##,###
Net cash outflow from capital
Expenditure and financial investment (##,###) (###,###)
Dividend paid (##,###) (###,###)
Cash (outflow)IinfIow before financing (###,###) ###,###
Financing
Capital element of finance leases repaid (##,###) (#,###)
(Decrease)Iincrease In cash ## (###,###) ###,###
The notes on pages # to ## form part of these financial statements
#

David Howard (UK) Limited
Notes forming part of the financial statements
for the year ended ## August ####
Accounting policies
The financial statements have been prepared under the historical cost convention
The following principal accounting policies have been applied
Turnover
Turnover represents sales to external customers at invoiced amounts less value added tax or local taxes on
sales and settlement discounts
Turnover is recognised when the risks and rewards of owning the goods have passed to the customer which
is generally on delivery
Depreciation
Depreciation is provided to write off the cost or valuation, less estimated residual values, of all tangible fixed
assets, except freehold land, evenly over their expected useful lives It IS calculated at the following rates
Motor vehicles - ##% to ## ##% straight line per annum
Fixtures and equipment - ##% straight line per annum
Valuation of /vestments
Investments held as fixed assets are stated at valuation less any provision for impairment Any changes in
valuation are credited/(charged) to the revaluation resent/e When previously revalued Investments are
disposed, their book value is eliminated and an appropriate transfer made the revaluation reserve to the
profit and loss account
Stocks
Stocks are valued at the lower of cost and net realisable value Cost is based on the cost of purchase on a
first in, first out basis Net realisable value IS based on estimated selling price less additional costs to
completion and disposal
Foreign currency
Foreign currency transactions are translated into sterling at the rates ruling when they occurred Foreign
currency monetary assets and Ii#bliIlI€S are translated at the rates ruling at the balance sheet dates Where
the transaction is covered by a forward contract the forward rate IS used for translation Any differences are
taken to the prohibit and loss account
Dividends
Equity dividends are recognised when they become legally payable Lenten and final equity dividends are
recognised when approved by the shareholders
#

David Howard (UK) Limited
Notes forming part of the financial statements
for the year ended ## August #### (Continued)
Accounting policies (Continued)
Taxation
The charge for taxation is based on the profit for the year and takes into account taxation deferred
Current tax IS measured at amounts expected to be paid using the tax rates and laws that have been
enacted or substantially enacted by the balance sheet date
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 the company anticipates making sufficient taxable profits in the future to absorb the reversal of the
underlying timing differences
Deferred tax balances are not discounted
Leased assets
Where assets are financed by leasing agreements that give rights approximating to ownership ('finance
leases'), the assets are treated as if they had been purchased outright The amount capitalised IS the
present value of the minimum lease payments payable during the lease term The corresponding leasing
commitments are shown as amounts payable to the lessor Depreciation on the relevant assets IS charged
to the profit and loss account
Lease payments are analysed between capital and interest components so that the interest element of the
payment is charged to the profit and loss account over the period of the lease and represents a constant
proportion of the balance of capital repayments outstanding The capital part reduces the amounts payable
to the lessor
All other leases are treated as operating leases Their annual rentals are charged to the profit and loss
account on a straight-line basis over the term of the lease
Pens/on costs
Contributions 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 in an
independently administered fund
Factored debts
Where factored debts can be separately Identified and the factoring house has no recourse to the other
assets of the company, a linked presentation is adopted
##

David Howard (UK) Limited
Notes forming part of the financial statements
for the year ended ## August #### (Continued)
Turnover
#### ####
£ £
Analysis by geographical market
United Kingdom ##,###,### ##,###,###
Turnover IS wholly attributable to the principal activity of the company
Operating profit
#### ####
£ £
This is arrived at after charging/(crediting)
Depreciation of tangible fixed assets ##,### ##,###
Profit on disposal of tangible assets (##) (#,###)
Hire of other assets - operating leases ##,### ##,###
Auditors’ remuneration - audit services ##,### ##,###
Auditors’ remuneration -tax services #,### #,###
Exchange differences ##,### ##,###
Factoring charges #,### #,###
Employees
#### ####
£ £
Staff costs (Including directors) consist of
Wages and salaries #,###,### #,###,###
Social security costs ###,### ###,###
Other pension costs ##,### ###,###
#,###,### #,###,###
The average number of employees (Including directors) during the year was as follows
#### ####
Number Number
Office and management ## ##
Sales and design ## ##
## ##
##

David Howard (UK) Limited
Notes forming part of the financial statements
for the year ended ## August #### (Continued)
Directors’ remuneration
#### ####
£ £
Directors' emoluments ###,### ###,###
Company contributions to money purchase pension schemes ##,### ###,###
The total amount payable to the highest paid director in respect of emoluments was £###,### (####
£###,###)
The company’s contributions to money purchase pension schemes In respect of the highest paid director
amounted to £##,### (#### - £###,###)
There was # director In the company’s defined contribution pension scheme during the year (#### - #)
Interest payable and similar charges
####
E
Bank overdraft Interest #,###
Flnance leases and hire purchase contracts #,###
Interest on factored debts # #,###
Other interest #,###
##,###
##
####
£
#,###
###
##,###
#,###
##,###

David Howard (UK) Limited
Notes forming part of the financial statements
for the year ended ## August #### (Continued)
Taxation on profit on ordinary tactless
UK corpora/on tax
Current tax on profits of the year
Deferred tax
Origination and reversal of tlmlng differences
Taxation on prom on ordinary activities
The tax assessed for the year is higher than the standard rate of corporation tax
are explained below
Proit on ordinary activities before tax
Profit on ordinary activities at the standard rate of corporation
tax In the UK of ##% (#### - ## ##%)
Effect of
Over provision in respect of previous years
Expenses not deductible for tax purposes
Depreciation In excess of capital allowances
Marginal relief
Other short term timing differences
#### ####
£ £
##,### ###,###
(#,###) (##,###)
##,### ###,###
in the UK The differences
#### ####
£ £
###,### ###,###
##,### ###,###
(###) -
#,### ##,###
#,### (#,###)
(##,###) (#,###)
- ##,###
##,### ###,###
Current tax charge for year
##

David Howard (UK) Limited
Notes forming part of the financial statements
for the year ended ## August #### (Continued)
Dividends
#### ####
£ £
Ordinary shares
Final proposed of £nil (#### - £## ##) per share - ##,###
Tangible fixed assets
Motor Fixtures and
Vehicles equipment Total
£ £ £
Cost
At# September #### ###,### ###,### ###,###
Additions - ##,### ##,###
Disposals (##,###) - (##,###)
At ## August #### ###,### ###,### ###,###
Depreclat/on
At # September #### ##,### ###,### ###,###
Provided for the year ##,### ##,### ##,###
Dlsposals (##,###) - (##,###)
At ## August #### ##,### ###,### ###,###
Net book v/ue
At ## August #### ##,### ##,### ###,###
At ## August #### ###,### ###,### ###,###
The net book value of tangible fixed assets includes an amount of £##,### (#### - £##,###) in respect of
assets held under finance leases and hire purchase contracts The related depreciation charge on these
assets for the year was £##,### (#### - £##,###)

David Howard (UK) Limited
Notes forming part of the financial statements
for the year ended ## August #### (Continued)
Fixed asset investments
Other
Investments
E
Valuation
At# September #### ###,###
Additions #,###
Revaluatlons (#,###)
At ## August #### ###,###
The above Investment relates to a life assurance policy in respect of one of the directors and has been
valued by London Life Limited, the insurance company with which the policy IS held
The basis of valuation is the net surrender value at ## August ####
Stocks
#### ####
£ £
Raw materials and consumables ##,### ###,###
Flnlshed goods and goods for resale #,###,### #,###,###
#,###,### #,###,###
There is no maternal difference between the replacement cost of stocks and the amounts stated above
Debtors
#### ####
£ £
Trade debtors #,###,### #,###,###
Prepayments and accrued Income ###,### ##,###
Deferred tax asset (note ##) ##,### ##,###
#,###,### #,###,###
All amounts shown under debtors fall due for payment within one year
##

David Howard (UK) Limited
Notes forming part of the financial statements
for the year ended ## August #### (Continued)
Creditors: amounts falling due within one year
#### ####
£ £
Bank loan and overdraft (secured) #,###,### ###,###
Trade creditors #,###,### #,###,###
Corporation tax ##,### ###,###
Other taxation and social security ###,### ###,###
Dividends payable - ##,###
Obligations under finance leases and hire purchase contracts ##,### ##,###
Accruals and deferred income ###,### ###,###
#,###,### #,###,###
The bank loan and overdraft is secured by a fixed and floating charge over the assets of the company in
respect of debts factored with recourse further details are provided In note ##
Creditors: amounts falling due after more than one year
Obligations under finance leases and hire purchase contracts
Other creditors
Maturity of debt
in one year or less, or on demand
In more than year but not more than two years
Creditors include amounts not wholly repayable within # years as follows
Repayable other than by instalments
##
#### ####
£ £
- ##,###
##,### ## ,###
##,### ##,###
Finance leases Finance leases
#### ####
£ £
##,### ##,###
#### ####
£ £
##,### ##,###

David Howard (UK) Limited
Notes forming part of the financial statements
for the year ended ## August #### (Continued)
Deferred tax asset
Deferred
taxation
£
At # September #### ##,###
Credrted to prom and loss account #,###
At ## August #### ##,###
Deferred taxation
Deccelerated capital allowances #,###
Short term tiiming differences ##,###
At ## August #### ##,###
Share capital
#### ####
£ E
Author/seed
##,### ordinary shares of £# each ##,### ##,###
Allotted, called up and fully paid
##,### ordinary shares of £# each ##,### ##,###
Reserves
Share
premium Revaluation Profit and
account reserve loss account
£ £ £
At # September #### ##,### ##,### #,###,###
Profit for the year - - ###,###
Revaluation resent/e (note ##) (#,###) -
At ## August #### ##,### ##,### #,###,###

David Howard (UK) Limited
Notes forming part of the financial statements
for the year ended ## August #### (Continued)
Reconcrlratron of movements in shareholders’ funds
#### ####
£ £
Profit for the year ###,### ###,###
Drvrdends - (##,###)
###,### ###,###
Other net recognised gains and losses relating to the year (#,###) (##,###)
Net additions to shareholders’ funds ###,### ###,###
Opening shareholders' funds #,###,### #,###,###
Closing shareholders' funds #,###,### #,###,###
Pensrons
The company operates a defined contribution pension scheme The assets of the scheme are held
separately from those of the company in an Independently administered fund The pension charge
amounted to £##,### (#### - £###,###) At the balance sheet date there were £###,### (#### - £###,###)
of accrued contributions and no prepaid contributions
Commitments under operating leases
The company had annual commitments under non-cancellate operoration leases as set out below
#### ####
Land and Land and
Burlingame buildings
£ £
Operating leases which expire
Wrthrn one year #,### #,###
Due wrthrn two to five years ##,### ##,###
##,### ##,###
##

David Howard (UK) Limited
Notes forming part of the financial statements
for the year ended ## August #### (Continued)
Related party disclosure red
Controlling parties
V H Rawlrnson, a director and shareholder, is considered to be the ultimate controlling party
Directors
At the year end the company owed V H Rawlrnson £##,### (#### - £##,###) This is included in other
creditors (note ##)
Soft Wear L/mlted
Durrng the year the company was charged commission in respect of garment production and a contribution
towards office overheads of £###,### (#### - £###,###) from Soft Wear Llmrted, a company in which V H
Rawlrnson and A P Shaw, both directors and shareholders of this company, hold ##% and ##% of the voting
rights, respectively These purchases were made on normal commercial terms At the year end, £###,###
(#### - £###,###) was payable to Soft Wear Lrmrted
Reactor L/mlted
Durrng the year the company acquired goods amounting to £#,###,### (#### - £#,###,###) from Reactor
Lrmrted, a company under the common control of the directors These purchases were made on normal
commercial terms At the year end, £###,### (#### - £###,###) was payable to Reactor Lrmlted
Reconcrlratron of operating profit to net cash (outflow)IinfIow from operating activities
#### ####
£ £
Operating profit ###,### ###,###
Deprecratron of tangible fixed assets ##,### ##,###
Profit on sale of tangible fixed assets (##) (#,###)
(increase)decrease rn stocks (##,###) ###,###
(Increase)/decrease in debtors (###,###) ###,###
Increasel(decrease) in creditors ###,### (###,###)
Net cash (outflow)lingoes from operating actresses (#,###) #,###,###
##

David Howard (UK) Limited
Notes forming part of the financial statements
for the year ended ## August #### (Continued)
Reconcrlratron of net cash flow to movement in net debt
#### ####
£ £
(Decrease)/Increase in cash (###,###) ###,###
Cash outflow from changes in debt ##,### #,###
Movement in net debt resulting from cash flows (###,###) ###,###
Inception of finance leases - (##,###)
Movement in net debt (###,###) ###,###
Openrng net debt (###,###) (# ,###,###)
Closing net debt (#,###,###) (###,###)
Analysrs of net debt
At At
# September ## August
#### Cash flow ####
####
£ £
Cash at bank and in hand #,### #,### #,###
Bank loans and overdrafts (###,###) (###,###) (# ,###,# # #)
(###,###)
Finance leases (##,###) ##,### (##,###)
Total (###,###) (###,###) (# ,###,###)
Frnancral commitments
The company had financial commitments in respect of don/card exchange contracts amounting to £#,###,###
(#### - £#,###,###) These contracts have been entered into to commercially hedge against future stock
purchases and moonrise the company's exposure to foreign exchange fluctuations
Debt factored with recourse
Durrng the year the company factored all UK trade debts The balance of debts owing to the factor at the
year end is £#,###,### (#### - £###,###) Under the terms of this factoring arrangement an interest in those
debts was exchanged for cash
The company is obliged to support losses arranges from the assigned debts against which cash has been
advanced The providers of finance have confirmed in writing that in certain circumstances, the debt may be
reassigned to the com pant
##