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Registration number: 03747953

Morvan Trading Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 May 2022

 

Morvan Trading Limited

Contents

Balance Sheet

1 to 2

Notes to the Unaudited Financial Statements

3 to 7

 

Morvan Trading Limited

(Registration number: 03747953)
Balance Sheet as at 31 May 2022

Note

2022
£

2021
£

Fixed assets

 

Tangible assets

6

9,675

7,069

Current assets

 

Stocks

421,721

309,031

Debtors

7

154,746

160,744

Cash at bank and in hand

 

335,917

259,107

 

912,384

728,882

Creditors: Amounts falling due within one year

8

(245,241)

(269,168)

Net current assets

 

667,143

459,714

Total assets less current liabilities

 

676,818

466,783

Provisions for liabilities

(2,419)

(1,343)

Net assets

 

674,399

465,440

Capital and reserves

 

Called up share capital

100

100

Retained earnings

674,299

465,340

Shareholders' funds

 

674,399

465,440

 

Morvan Trading Limited

(Registration number: 03747953)
Balance Sheet as at 31 May 2022

For the financial year ending 31 May 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 13 September 2022 and signed on its behalf by:
 

.........................................
Mr Richard John Eves
Company secretary and director

 

Morvan Trading Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2022

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
2 Old Bath Road
Newbury
Berkshire
RG14 1QL
England

The principal place of business is:
Old Cottage
Goodworth Clatford
Andover
Hampshire
SP11 7QY
England

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable in respect of the sale of cables and connectors. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current tax payable and deferred tax.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

Morvan Trading Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2022

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

20% of net book value

Equipment

20% of net book value

Property Improvements

33.3% of net book value

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Morvan Trading Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2022

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Taxation

2022

2021

£

£

Corporation tax

89,449

66,210

Deferred tax

1,076

1,343

90,525

67,553

4

Other operating income

2022

2021

£

£

Job Retention Scheme income

5,552

25,929

 

5,552

25,929

5

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 6 (2021 - 6).

 

Morvan Trading Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2022

6

Tangible assets

Land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Office equipment
£

Cost or valuation

At 1 June 2021

10,600

7,277

8,935

18,412

Additions

-

-

3,700

1,515

Disposals

-

-

(425)

(6,799)

At 31 May 2022

10,600

7,277

12,210

13,128

Depreciation

At 1 June 2021

10,600

6,480

8,151

12,924

Charge for the year

-

265

293

1,147

Eliminated on disposal

-

-

(422)

(5,898)

At 31 May 2022

10,600

6,745

8,022

8,173

Carrying amount

At 31 May 2022

-

532

4,188

4,955

At 31 May 2021

-

797

784

5,488

Total
£

Cost or valuation

At 1 June 2021

45,224

Additions

5,215

Disposals

(7,224)

At 31 May 2022

43,215

Depreciation

At 1 June 2021

38,155

Charge for the year

1,705

Eliminated on disposal

(6,320)

At 31 May 2022

33,540

Carrying amount

At 31 May 2022

9,675

At 31 May 2021

7,069

 

Morvan Trading Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2022

7

Debtors

Current

2022
£

2021
£

Trade debtors

153,050

134,962

Prepayments

1,696

25,782

 

154,746

160,744

8

Creditors

Creditors: amounts falling due within one year

2022
£

2021
£

Due within one year

Trade creditors

12,744

42,554

Amounts owed to group undertakings and undertakings in which the company has a participating interest

86,830

92,256

Taxation and social security

127,502

104,020

Other creditors

18,165

30,338

245,241

269,168

9

Related party transactions

Summary of transactions with other related parties

Morvan Investments Limited (parent company). At the balance sheet date the amount due to Morvan Investments Limited was £86,830 (2021: £92,256).