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REGISTERED NUMBER: 01153586 (England and Wales)












STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

FOR

TALLON INTERNATIONAL LIMITED

TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586)






CONTENTS OF THE FINANCIAL STATEMENTS
for the year ended 31 March 2022




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


TALLON INTERNATIONAL LIMITED

COMPANY INFORMATION
for the year ended 31 March 2022







DIRECTORS: O Gupwell
B Heath
B J Fisher
S Clay
T S Bird


REGISTERED OFFICE: Unit 4
Cyan Park
Coventry
CV2 4QP


REGISTERED NUMBER: 01153586 (England and Wales)


SENIOR STATUTORY AUDITOR: Gregg Olner MPhil BA(Hons) ACA


AUDITORS: Harrison Beale & Owen Limited
Chartered Accountants and Statutory Auditor
Highdown House
11 Highdown Road
Leamington Spa
Warwickshire
CV31 1XT


BANKERS: HSBC Bank Plc
PO Box 24
55 Corporation Street
Coventry
CV1 1QJ

TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586)

STRATEGIC REPORT
for the year ended 31 March 2022

The directors present their strategic report for the year ended 31 March 2022.

REVIEW OF BUSINESS
The aftermath of the of the Coronavirus outbreak caused significant global supply chain disruption. The same disruptions posed significant challenges to the business that required immediate changes to strategy and processes. The board agreed early in the trading year that there would be 3 strategic priorities:

1. Hold selling prices wherever possible & honour commitments
2. Keep the flow of product going and maintain >90% availability
3. Deliver Supply Chain excellence

Container costs escalated to x9 multipliers and without swift action this would have caused a severe erosion of margin, a need to large selling price increases and would have delivered a significant loss to the business for the trading period. Action was taken to quickly negotiate and secure access to competitive contract rates, and new expertise was brought into the business to help achieve the Supply Chain Excellence objective. New processes were enacted to secure daily container allocation and manage the ongoing challenges with securing HGV inbound deliveries from port.

The Sales team continued to successfully secure orders, confident in the knowledge all was being done to deliver product on time. On the contrary to what our competition did we also stood firm on our commitment to honour selling prices, and refused to go out with blanket increases to our customers. This was welcomed and recognised by our customer base.

Although it would have been tempting to pause all new product development the business pushed on with ensuring our ranges and product offering remained fresh. A new and refreshed approach was introduced for promotional calendar planning with our first major success being a robust pre sell on our Easter range, with all stock delivered on time and to quality.

The Design team continued to be a hot bed of industry leading designs with countless new products introduced with more to come through the pipeline. To further bolster product development we brought in dedicated Seasonal commercial resource to work as a matched pair with the Design team.

To end the year we then had the busiest Spring Trade Fair in memory where we had the chance to really showcase what we have become and where we intend to go moving forward.

All of this culminated in us reporting a decrease in turnover to £17,109,617 (2021 - £17,471,454) and have remarkably managed to achieve a gross profit margin of 32.4% (2021 - 31.6%). Current net assets have improved to £5,945,747 (2021 - £5,343,733) and net assets to £6,061,961 (2021 - £5,484,407).

Although it is disappointing not to hit our sales targets, along with falling short of last year's sales figures, as detailed there are lots of positives that we must take from this last year and rest confident that we are truly setting ourselves up for further success moving forward. The company is doing the right thing by building our strategic roadmap whilst at the same time remaining agile enough to react to the ever changing macro-economic and global supply chain landscape.


TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586)

STRATEGIC REPORT
for the year ended 31 March 2022

PRINCIPAL RISKS AND UNCERTAINTIES
The global supply chain infrastructure still remains fragile. Container rates remain inflated and access to the same level of contracts enjoyed in FY21/22 are no longer there. This will undoubtedly mean an impact to margins through the next trading year.

Exposure to exchange rate fluctuations continues to be a threat with wider risks expected due to the ever changing macro-economic outlook. A revised approach to FX management will be required.

Global raw material costs continue to increase further exacerbated by the Russian conflict in Ukraine. Suppliers continue to signal significant increases that will require careful negotiation and management.

Domestically all overheads will increase. Energy costs will double from the start of the trading year with further increases then expected later in the year. Haulage and transport costs continue to increase with additional increases expected on all business consumables.

It also uncertain how the very likely UK recession and cost of living crisis will impact this sector and the business. The Board are confident that because of the value offering Tallon supply we will remain largely unimpacted.

Despite the economic outlook the Directors are confident that the business resilience demonstrated through 21/22, and the strategic roadmap now in place will serve to protect the business, employees and customers safety. Coupled with the long standing and strong relationships we have with our trading partners the company will continue to grow and prosper.

ON BEHALF OF THE BOARD:





S Clay - Director


13 September 2022

TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586)

REPORT OF THE DIRECTORS
for the year ended 31 March 2022

The directors present their report with the financial statements of the company for the year ended 31 March 2022.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the wholesaling of stationery and ancillary goods.

DIVIDENDS
No dividends will be distributed for the year ended 31 March 2022.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2021 to the date of this report.

O Gupwell
B Heath
B J Fisher

Other changes in directors holding office are as follows:

J P Ellis - resigned 1 October 2021
E Quantrill - resigned 1 October 2021
S Clay - appointed 1 April 2021

T S Bird was appointed as a director after 31 March 2022 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 (United 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;
-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 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.

TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586)

REPORT OF THE DIRECTORS
for the year ended 31 March 2022


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:



S Clay - Director


13 September 2022

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
TALLON INTERNATIONAL LIMITED

Opinion
We have audited the financial statements of Tallon International Limited (the 'company') for the year ended 31 March 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, 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 31 March 2022 and of its profit for the year 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.

Basis for opinion
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 UK, including the FRC'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
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.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
TALLON INTERNATIONAL LIMITED


Matters on which we are required to report by exception
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 Report of the Directors.

We have nothing to report in respect of the following matters where 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
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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.

Auditors' responsibilities for the audit of the financial statements
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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments
for appropriateness;
- Reviewing minutes of meetings of those charged with governance; and
- Enquiry of management to identify any instances of non-compliance with laws and regulations

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
TALLON INTERNATIONAL LIMITED


Use of our report
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 a Report of the Auditors 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.




Gregg Olner MPhil BA(Hons) ACA (Senior Statutory Auditor)
for and on behalf of Harrison Beale & Owen Limited
Chartered Accountants and Statutory Auditor
Highdown House
11 Highdown Road
Leamington Spa
Warwickshire
CV31 1XT

13 September 2022

TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586)

INCOME STATEMENT
for the year ended 31 March 2022

2022 2021
Notes £    £    £    £   

TURNOVER 3 17,109,617 17,471,454

Cost of sales 11,575,263 12,021,688
GROSS PROFIT 5,534,354 5,449,766

Distribution costs 656,069 655,592
Administrative expenses 4,165,394 3,980,770
4,821,463 4,636,362
712,891 813,404

Other operating income 12,499 53,496
OPERATING PROFIT 5 725,390 866,900

Interest receivable and similar income - 1,303
725,390 868,203

Interest payable and similar expenses 6 6,444 8,882
PROFIT BEFORE TAXATION 718,946 859,321

Tax on profit 7 141,392 164,807
PROFIT FOR THE FINANCIAL YEAR 577,554 694,514

TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586)

OTHER COMPREHENSIVE INCOME
for the year ended 31 March 2022

2022 2021
Notes £    £   

PROFIT FOR THE YEAR 577,554 694,514


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

577,554

694,514

TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586)

BALANCE SHEET
31 March 2022

2022 2021
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 123,512 145,580
Investments 10 870 870
124,382 146,450

CURRENT ASSETS
Stocks 11 2,680,711 2,830,739
Debtors 12 2,477,881 2,135,734
Cash at bank and in hand 2,781,660 2,422,696
7,940,252 7,389,169
CREDITORS
Amounts falling due within one year 13 1,994,505 2,045,436
NET CURRENT ASSETS 5,945,747 5,343,733
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,070,129

5,490,183

PROVISIONS FOR LIABILITIES 16 8,168 5,776
NET ASSETS 6,061,961 5,484,407

CAPITAL AND RESERVES
Called up share capital 17 5,000 5,000
Retained earnings 18 6,056,961 5,479,407
SHAREHOLDERS' FUNDS 6,061,961 5,484,407

The financial statements were approved by the Board of Directors and authorised for issue on 13 September 2022 and were signed on its behalf by:




S Clay - Director



B J Fisher - Director


TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586)

STATEMENT OF CHANGES IN EQUITY
for the year ended 31 March 2022

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 April 2020 5,000 5,034,893 5,039,893

Changes in equity
Dividends - (250,000 ) (250,000 )
Total comprehensive income - 694,514 694,514
Balance at 31 March 2021 5,000 5,479,407 5,484,407

Changes in equity
Total comprehensive income - 577,554 577,554
Balance at 31 March 2022 5,000 6,056,961 6,061,961

TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586)

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2022

1. STATUTORY INFORMATION

Tallon International Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The principal accounting policies adopted in the preparation of the financial statements are set out below.

The directors are aware of the possible impact of COVID-19 and are confident sufficient steps have been taken to mitigate these impacts. Despite there being no short term impact from COVID-19, the directors have expressed their willingness to support the company as necessary. The financial statements have therefore been prepared on the going concern basis.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Preparation of consolidated financial statements
The financial statements contain information about Tallon International Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Zintello Merchants Limited, C/O Fisher & Partners, Princes Drive Estate, Coventry Road, Kenilworth, Warwickshire, CV8 2FD.

Critical accounting judgements and key sources of estimation uncertainty
The significant estimates and assumptions included within these financial statements are set out below:
Accounting estimates:

i) Stock provisioning
When calculating the stock provision management considers the potential resale ability of stock items, at or above cost, when determining the associated provision required.

Accounting judgements:
ii) Stock provisioning
The business model is to buy goods in bulk quantities and sell it to distributors in smaller quantities. The key judgements in the financial statements are:

a) whether to make a provision or not for stock, given that some goods such as calendars and diaries are time appropriate; and

b) the level of such a provision, given any potential sale incentives offered to customers for old goods.

Stock provisions have been made in these financial statements. The amounts and effect are disclosed in the notes below.

Turnover
Turnover comprises the value of sales (net of value added tax) of goods and services provided in the normal course of business. Revenue is recognised in respect of service contracts when the company obtains the right to consideration.

TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2022

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.
Improvements to properties - over the lease term
Plant and machinery - 20% on reducing balance
Fixtures and fittings - at variable rates on reducing balance
Motor vehicles - 25% on reducing balance

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Stocks
Stock is stated at the lower of cost and net realisable value. Cost is based on the first in, first out principal and comprise the cost of goods and any overheads that have been incurred in bringing the stock to their present location and condition. Net realisable value represents the estimated selling price less expected marketing, selling and distribution costs. A provision is made, where necessary, for obsolete and slow-moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at a standard rate set on an annual basis and considered to be reflective of market conditions. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Product development expenditure
Product development expenditure is charged to the profit and loss account as the expenditure is incurred. The company is continually developing its products by upgrading its existing products, extending its range of current products and creating new products.

TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2022

2. ACCOUNTING POLICIES - continued

Operating leases
Rentals paid under operating leases are charged to the profit and loss account over the life of the lease.

Financial instruments
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement.

Open foreign currency contracts are revalued at the period end with the surplus and deficits being recognised in the profit and loss account.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2022 2021
£    £   
United Kingdom 14,635,700 14,969,591
Europe 2,146,304 2,300,467
Rest of world 327,613 201,396
17,109,617 17,471,454

4. EMPLOYEES AND DIRECTORS
2022 2021
£    £   
Wages and salaries 1,922,293 1,828,388
Social security costs 207,240 192,635
Other pension costs 35,856 41,675
2,165,389 2,062,698

The average number of employees during the year was as follows:
2022 2021

Total staff 54 52

2022 2021
£    £   
Directors' remuneration 546,197 504,656
Directors' pension contributions to money purchase schemes 6,905 9,182

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 4 4

TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2022

4. EMPLOYEES AND DIRECTORS - continued

Information regarding the highest paid director is as follows:
2022 2021
£    £   
Emoluments etc 199,624 173,914
Pension contributions to money purchase schemes - 3,180

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2022 2021
£    £   
Depreciation - owned assets 44,133 44,380
(Profit)/loss on disposal of fixed assets (11,315 ) 105
Auditors' remuneration 2,500 15,400
Operating leases - plant and machinery 45,139 85,810
Operating leases - other 301,755 301,755

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2022 2021
£    £   
Zintello Merchants Limited
loan interest 6,401 8,844
Invoice finance charges 43 38
6,444 8,882

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2022 2021
£    £   
Current tax:
UK corporation tax 139,000 171,235

Deferred tax 2,392 (6,428 )
Tax on profit 141,392 164,807

UK corporation tax has been charged at 19% (2021 - 19%).

TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2022

7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2022 2021
£    £   
Profit before tax 718,946 859,321
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2021 - 19%)

136,600

163,271

Effects of:
Expenses not deductible for tax purposes 1,541 1,161
Income not taxable for tax purposes (2,150 ) (104 )
Depreciation in excess of capital allowances 3,875 6,907
Small variances (866 ) -
Movement on temporary timing differences 2,392 (6,428 )
Total tax charge 141,392 164,807

Following Budget announcements, there will be an increase in the main rate of corporation tax to 25% from 1 April 2023. This is not expected to have a significant effect on the current and deferred taxation recognised by the company.

8. DIVIDENDS
2022 2021
£    £   
Interim - 250,000

9. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and Motor
properties machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 April 2021 56,016 159,583 233,757 128,067 577,423
Additions - - 25,800 - 25,800
Disposals - - (9,519 ) (29,450 ) (38,969 )
At 31 March 2022 56,016 159,583 250,038 98,617 564,254
DEPRECIATION
At 1 April 2021 11,506 151,662 157,642 111,033 431,843
Charge for year 6,433 1,581 32,262 3,857 44,133
Eliminated on disposal - - (9,072 ) (26,162 ) (35,234 )
At 31 March 2022 17,939 153,243 180,832 88,728 440,742
NET BOOK VALUE
At 31 March 2022 38,077 6,340 69,206 9,889 123,512
At 31 March 2021 44,510 7,921 76,115 17,034 145,580

TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2022

10. FIXED ASSET INVESTMENTS
Shares in
group
undertaking
£   
COST
At 1 April 2021
and 31 March 2022 870
NET BOOK VALUE
At 31 March 2022 870
At 31 March 2021 870

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Tallon Stationery EU Limited
Registered office: 1st Floor, Reuben House, Reuben Street, Dublin 1, D08 Y2Y3
Nature of business: Wholesalers of stationery
%
Class of shares: holding
Ordinary 100.00

11. STOCKS
2022 2021
£    £   
Stocks 2,680,711 2,830,739

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
£    £   
Trade debtors 2,102,180 1,454,004
Other debtors 135,005 402,923
Prepayments 240,696 278,807
2,477,881 2,135,734

An impairment loss of £63,529 (2021 - £110,659) was recognised against trade debtors.

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
£    £   
Trade creditors 720,903 543,698
Tax 67,751 99,235
Social security and other taxes 36,740 61,635
VAT 51,368 61,551
Amounts owed to parent company 355,844 655,730
Amounts owed to subsidiary 870 870
Accrued expenses 761,029 622,717
1,994,505 2,045,436

TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2022

14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2022 2021
£    £   
Within one year 344,926 364,153
Between one and five years 1,241,596 1,257,478
In more than five years 274,471 576,228
1,860,993 2,197,859

15. SECURED DEBTS

The bank holds a debenture including a Fixed charge over all present freehold and leasehold property; First Fixed Charge over book and other debts, chattels, goodwill and uncalled share capital, both present and future; and First Floating charge over all assets and undertakings both present and future dated 1 August 2001 for Zintello Merchants Limited and its subsidiary undertakings.

Since 25 April 2005 the bank lending has also been secured by a fixed charge over the purchased debts and a floating charge over all the remaining assets of the company.

16. PROVISIONS FOR LIABILITIES
2022 2021
£    £   
Deferred tax
Accelerated capital allowances 18,897 15,760
Other timing differences (10,729 ) (9,984 )
8,168 5,776

Deferred
tax
£   
Balance at 1 April 2021 5,776
Provided during year 2,392
Balance at 31 March 2022 8,168

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2022 2021
value: £    £   
5,000 Ordinary £1 5,000 5,000

TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2022

18. RESERVES
Retained
earnings
£   

At 1 April 2021 5,479,407
Profit for the year 577,554
At 31 March 2022 6,056,961

Retained earnings
Retained earnings represent cumulative retained profits and losses from incorporation.

19. PENSION COMMITMENTS

The company operates a defined contribution pension scheme in respect of the directors and staff. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the company and amounted to £35,856 (2021 - £41,675). Included within creditors is an amount due to scheme providers totalling £3,845 (2021 - £3,379).

20. ULTIMATE PARENT COMPANY

The ultimate parent company is Zintello Merchants Limited, which is incorporated in England and Wales. Consolidated financial statements are drawn up for the group and are made available to the public via enquiry at the registered office.

21. CONTINGENT LIABILITIES

The company's bankers have given a guarantee to H M Customs & Excise totalling £20,000 in respect of the operation of the company's deferred duty number.

The directors of the company are not aware of any other contingent liability apart from those outlined as part of the bank security arrangements explained further in the notes to the financial statements.

22. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

The directors are considered to be key management. Their remuneration is noted above.

23. CONTROLLING INTERESTS

The directors are considered to be the ultimate controlling parties by virtue of their ability to act in concert in respect of the financial and operating policies of the company.