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Registered number: 09468982










MOUS PRODUCTS LTD










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

 
MOUS PRODUCTS LTD
 
 
COMPANY INFORMATION


Directors
James Griffith 
Peter John Kemp-Welch 




Registered number
09468982



Registered office
New Kings Court
Tollgate
Chandler's Ford

Eastleigh

Hampshire

United Kingdom

SO53 3LG




Independent auditors
MHA
Statutory Auditors

6th Floor

2 London Wall Place

London

EC2Y 5AU




Bankers
HSBC UK Bank PLC
1 Centenary Square

Birmingham

B1 1HQ





 
MOUS PRODUCTS LTD
 

CONTENTS



Page
Group strategic report
 
1 - 3
Directors' report
 
4 - 5
Independent auditors' report
 
6 - 9
Consolidated statement of comprehensive income
 
10
Consolidated balance sheet
 
11 - 12
Company balance sheet
 
13 - 14
Consolidated statement of changes in equity
 
15
Company statement of changes in equity
 
16
Consolidated statement of cash flows
 
17 - 18
Consolidated analysis of net debt
 
18
Notes to the financial statements
 
19 - 41


 
MOUS PRODUCTS LTD
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

Review of the Business
                                                                       2023                 2022
                                                                       £'000                £'000
Turnover                                                       24,151              21,743
Gross Profit %                                                 73%                  74%
Contribution Margin                                       4,842                 3,755
Contribution Margin %                                     20%                  17%
EBITDA excluding Exceptional Costs          (1,887)                (892)
Expensed R&D Costs                                     (269)                (224)
Non Cash Spends                                        (1,335)                   -
Adjusted EBITDA                                            (283)                (668)

Mous is a privately owned company that designs, manufactures, and sells protective mobile phone cases and accessories predominantly online, distributing to the UK and over 100 countries internationally. 
The directors use various measures to assess the performance of the business. At this early stage of the business’s growth, the measure which, in the opinion of the directors, gives the best indication of business performance is turnover growth and adjusted earnings before interest, tax, depreciation and amortisation, exceptional items, expensed research & development costs and non-cash spends (Adjusted EBITDA). 
The business saw a year-on-year growth in turnover of 11% as a result of ongoing optimisation of the website, improved marketplace channel performance and continued expansion of the product offering which in the year included new phone cases that are certified ‘Made for Google’ and bike mounts as well as the launch of new product categories including backpacks.
Gross profit saw a 1% decline driven by new product ranges having lower margins compared to existing product ranges and increased discounting to clear aging inventory.   
Contribution margin, which is gross profit less costs directly attributable to the sale of goods (logistics fees, sales fees and digital marketing spends), outgrew sales at +29% year-on-year. This equated to a 3ppt increase in the return on sales and was driven by a number of digital marketing efficiencies implemented during the year. The 4th quarter was particularly strong at +166% year-on-year which reflects the positive action that was taken and demonstrates the businesses renewed focus on profitability. 
Administrative costs excluding exceptional costs in 2023 increased by £2.8m from the prior year with a large portion coming from non-cash spends such as the amortisation of the media for equity deal with Channel 4 and equity for services deals with a number of influencers. In addition to this there were higher logistics and sales fees, linked to increased turnover, production costs incurred in relation to a Mous TV advert on Channel 4 and increased salary costs. These cost increases were partly offset by foreign exchange gains of £0.2m and various cost saving initiatives. 
Adjusted EBITDA which excludes research & development costs and expenses for which the benefits will be seen in future years and non-cash spends, was a loss of £0.3m in 2023, which was a £0.4m improvement on the prior year. 
 
Page 1

 
MOUS PRODUCTS LTD
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Principal Risks and Uncertainties
The business’ activities give rise to a number of risks detailed below. 
Changes in Customer Trends
There is a risk that the product offering declines in popularity, leading to reduced revenues, margins and cash flows. This risk is managed by continued research and development in order to design and manufacture market leading products that meet our customers’ needs as well as managing stock levels on products for older phone models. 
The economic challenges of 2023, namely of inflation, could feed through to declining disposable income and a recession; which could prove headwind to the growth plans. Given the large size of the market vs Mous existing business, this risk can be mitigated by market share gain.
Competition Risk
The company is exposed to a number of competitors in the market who also provide protective phone cases.  This risk is mitigated by investing heavily into the research and development of new and existing products to maintain the business’ point of difference. 
 
Supply Chain
The company is dependent on the ability of its suppliers to manufacture its products to the desired quality and standards and on its logistics providers to ensure it reaches the required location on a timely basis. The standards, arrangements and contingency plans are under constant review by management. 
Currency Risk
The company is exposed to foreign currency risks on sales and purchases. Exposures are primarily to the US Dollar and Euro. Forecast transactional exposures are reviewed on an ongoing basis and where possible excess foreign currencies are utilised to settle supplier payments. The majority of the sales and supplier purchases are in US dollars, providing a natural and effective hedge to these risks. 
Research and Development
R&D plays a pivotal role in our business, as it drives our ability to innovate and deliver cutting-edge products. Through our relentless commitment to R&D, we strive to enhance user experiences and strengthen our position as a trusted provider of innovative and reliable tech accessories.
Future Developments
In pursuit of our future growth objectives, we have implemented several key initiatives since year end. 
We have launched a crowdfunding campaign to raise funds through equity investments, fortifying our financial position and reflecting investor confidence in our business and its potential.
 
Page 2

 
MOUS PRODUCTS LTD
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023


Equally, our significant investment in R&D, expanding our portfolio of products, benefits the business for the years ahead and creates a healthier business for the future.

This report was approved by the board and signed on its behalf.




James Griffith
Director

Date: 14 July 2023


Page 3

 
MOUS PRODUCTS LTD
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their report and the financial statements for the year ended 31 March 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £3,040,723 (2022 - loss £1,822,422).

There were no dividends declared during the year.

Directors

The directors who served during the year were:

James Griffith 
Peter John Kemp-Welch 

Third party indemnity provisions

The Group has indemnity insurance in place for the benefit of its directors during the year and remaining in force at the date of this report.

Exceptional expenses

The Group incurred exceptional expenses in the year in respect of restructuring and fundraising costs. This has been presented as 'Exceptional expenses' in the Statement of Comprehensive Income.

Page 4

 
MOUS PRODUCTS LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Auditors

Following a rebranding exercise on 15 May 2023 the trading name of the company’s independent auditor changed from MHA MacIntyre Hudson to MHA. A resolution to reappoint MHA as independent auditor will be proposed at the next Annual General Meeting.

This report was approved by the board and signed on its behalf.
 





James Griffith
Director

Date: 14 July 2023

Page 5

 
MOUS PRODUCTS LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MOUS PRODUCTS LTD
 

Opinion


We have audited the financial statements of Mous Products Ltd (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2023, which comprise the Consolidated Statement of comprehensive income, the Consolidated and Company Balance sheets, the Consolidated Statement of cash flows, the Consolidated and Company Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 Group's and of the parent Company's affairs as at 31 March 2023 and of the Group's loss 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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 Group's or the parent 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.


Page 6

 
MOUS PRODUCTS LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MOUS PRODUCTS LTD (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' report thereon.  The directors are responsible for the other information contained within the Annual Report.  Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.  If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves.  If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion 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 Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the company, 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.


Page 7

 
MOUS PRODUCTS LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MOUS PRODUCTS LTD (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Group's and the parent 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 Group or the parent 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 an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
 
Enquiry of management around actual and potential litigation and claims;
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; 
Reviewing minutes of meetings of those charged with governance and management; 
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditors' report.


Page 8

 
MOUS PRODUCTS LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MOUS PRODUCTS LTD (CONTINUED)


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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Georgette Alicia Crisp BSc (Hons) FCA (Senior Statutory Auditor)
  
for and on behalf of
MHA
 
Statutory Auditors
  
London

18 July 2023
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).
Page 9

 
MOUS PRODUCTS LTD
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
 £
£

  

Turnover
 4 
24,151,461
21,743,049

Cost of sales
  
(6,583,596)
(5,744,062)

Gross profit
  
17,567,865
15,998,987

Administrative expenses
  
(20,204,605)
(17,455,221)

Share based payment
 24 
(468,832)
(345,372)

Exceptional expenses
 27 
(47,915)
(134,758)

Operating loss
 5 
(3,153,487)
(1,936,364)

Interest receivable and similar income
 9 
124
1,532

Interest payable and similar expenses
 10 
(164,761)
(72,452)

Loss before tax
  
(3,318,124)
(2,007,284)

Tax on loss
 11 
277,401
184,862

Loss for the financial year
  
(3,040,723)
(1,822,422)

Other comprehensive income for the year
  

Foreign exchange translation differences
23 
(2,303)
-

Other comprehensive income for the year
  
(2,303)
-

Total comprehensive income for the year
  
(3,043,026)
(1,822,422)

The notes on pages 19 to 41 form part of these financial statements.

Page 10

 
MOUS PRODUCTS LTD
REGISTERED NUMBER: 09468982

CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 12 
1,364,684
576,007

Tangible assets
 13 
793,852
692,204

  
2,158,536
1,268,211

Current assets
  

Stocks
 15 
2,661,285
2,621,035

Debtors: amounts falling due within one year
 16 
1,156,427
1,780,483

Cash at bank and in hand
 17 
2,413,651
6,435,459

  
6,231,363
10,836,977

Creditors: amounts falling due within one year
 18 
(4,038,922)
(5,191,071)

Net current assets
  
 
 
2,192,441
 
 
5,645,906

Total assets less current liabilities
  
4,350,977
6,914,117

Creditors: amounts falling due after more than one year
 19 
(850,000)
(1,190,000)

Provisions for liabilities
  

Other provisions
 21 
(43,493)
(30,039)

  
 
 
(43,493)
 
 
(30,039)

Net assets
  
3,457,484
5,694,078


Capital and reserves
  

Called up share capital 
 22 
121
121

Share premium account
 23 
9,010,429
9,010,429

Capital redemption reserve
 23 
21
21

Foreign exchange reserve
 23 
(2,303)
-

Other reserves
 23 
1,255,006
448,574

Profit and loss account
 23 
(6,805,790)
(3,765,067)

  
3,457,484
5,694,078


Page 11

 
MOUS PRODUCTS LTD
REGISTERED NUMBER: 09468982
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




James Griffith
Director

Date: 14 July 2023

The notes on pages 19 to 41 form part of these financial statements.

Page 12

 
MOUS PRODUCTS LTD
REGISTERED NUMBER: 09468982

COMPANY BALANCE SHEET
AS AT 31 MARCH 2023

2023
As restated
2022
Note
£
£

Fixed assets
  

Intangible assets
 12 
1,364,684
576,007

Tangible assets
 13 
793,852
692,204

Investments
 14 
13,724
13,724

  
2,172,260
1,281,935

Current assets
  

Stocks
 15 
2,661,285
2,621,035

Debtors: amounts falling due within one year
 16 
1,156,284
1,780,483

Cash at bank and in hand
 17 
2,370,600
6,435,459

  
6,188,169
10,836,977

Creditors: amounts falling due within one year
 18 
(4,047,322)
(5,204,795)

Net current assets
  
 
 
2,140,847
 
 
5,632,182

Total assets less current liabilities
  
4,313,107
6,914,117

  

Creditors: amounts falling due after more than one year
 19 
(850,000)
(1,190,000)

Provisions for liabilities
  

Other provisions
 21 
(43,493)
(30,039)

  
 
 
(43,493)
 
 
(30,039)

Net assets
  
3,419,614
5,694,078


Capital and reserves
  

Called up share capital 
 22 
121
121

Share premium account
 23 
9,010,429
9,010,429

Capital redemption reserve
 23 
21
21

Other reserves
 23 
1,255,006
448,574

Profit and loss account
 23 
(6,845,963)
(3,765,067)

  
3,419,614
5,694,078


Page 13

 
MOUS PRODUCTS LTD
REGISTERED NUMBER: 09468982
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The loss after tax of the Company for the year was £3,080,896 (2022 - £1,822,422).
The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




James Griffith
Director

Date: 14 July 2023

The notes on pages 19 to 41 form part of these financial statements.

Page 14

 

 
MOUS PRODUCTS LTD


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023



Called up share capital
Share premium account
Capital redemption reserve
Foreign exchange reserve
Other reserves
Profit and loss account
Total equity


£
£
£
£
£
£
£



At 1 April 2021
113
3,868,893
21
-
-
(1,942,645)
1,926,382



Comprehensive loss for the year


Loss for the year
-
-
-
-
-
(1,822,422)
(1,822,422)



Contributions by and distributions to owners


Shares issued during the year
8
5,141,536
-
-
-
-
5,141,544


Share based payment
-
-
-
-
345,372
-
345,372


Issue of warrants
-
-
-
-
103,202
-
103,202





At 1 April 2022
121
9,010,429
21
-
448,574
(3,765,067)
5,694,078



Comprehensive loss for the year


Loss for the year
-
-
-
-
-
(3,040,723)
(3,040,723)


Foreign exchange differences
-
-
-
(2,303)
-
-
(2,303)



Contributions by and distributions to owners


Share based payment
-
-
-
-
468,832
-
468,832


Issue of warrants
-
-
-
-
337,600
-
337,600



At 31 March 2023
121
9,010,429
21
(2,303)
1,255,006
(6,805,790)
3,457,484



The notes on pages 19 to 41 form part of these financial statements.

Page 15

 

 
MOUS PRODUCTS LTD


 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023



Called up share capital
Share premium account
Capital redemption reserve
Other reserves
Profit and loss account
Total equity


£
£
£
£
£
£



At 1 April 2021
113
3,868,893
21
-
(1,942,645)
1,926,382



Comprehensive loss for the year


Total comprehensive loss for the year
-
-
-
-
(1,822,422)
(1,822,422)



Contributions by and distributions to owners


Shares issued during the year
8
5,141,536
-
-
-
5,141,544


Share based payment
-
-
-
345,372
-
345,372


Issue of warrants
-
-
-
103,202
-
103,202





At 1 April 2022
121
9,010,429
21
448,574
(3,765,067)
5,694,078



Comprehensive loss for the year


Total comprehensive loss for the year
-
-
-
-
(3,080,896)
(3,080,896)



Contributions by and distributions to owners


Share based payment
-
-
-
468,832
-
468,832


Issue of warrants
-
-
-
337,600
-
337,600



At 31 March 2023
121
9,010,429
21
1,255,006
(6,845,963)
3,419,614



The notes on pages 19 to 41 form part of these financial statements.

Page 16

 
MOUS PRODUCTS LTD
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023

2023
As restated
2022
£
£

Cash flows from operating activities

Loss for the financial year
(3,040,723)
(1,822,422)

Adjustments for:

Amortisation of intangible assets
260,116
86,639

Impairment of intangible assets
2,656
47

Depreciation of tangible assets
498,275
431,377

Impairment of tangible assets
18,627
46,767

Loss/(Profit) on disposal of tangible assets
11,835
(737)

Interest paid
164,761
72,452

Interest received
(124)
(1,532)

Taxation charge
(277,401)
(184,862)

(Increase)/decrease in stocks
(40,250)
72,074

(Increase) in debtors
(282,971)
(57,217)

(Decrease)/increase in creditors
(1,154,592)
743,984

Increase/(decrease) in provisions
13,454
(166)

Corporation tax received
184,455
307,619

Share based payment charge (note 24)
468,832
345,372

(Decrease) in prepayments - non-cash advertising costs (note 5)
999,973
-

Warrants issued - non-cash advertising costs (note 5)
337,600
103,202

Net cash generated from operating activities

(1,835,477)
142,597


Cash flows from investing activities

Purchase of intangible fixed assets
(1,051,447)
(611,938)

Purchase of tangible fixed assets
(634,240)
(606,233)

Sale of tangible fixed assets
3,993
11,116

Interest received
124
1,532

Net cash from investing activities

(1,681,570)
(1,205,523)

Cash flows from financing activities

Issue of ordinary shares
-
4,141,571

Repayment of loans
(340,000)
(170,000)

Interest paid
(164,761)
(72,452)

Net cash used in financing activities
(504,761)
3,899,119

Net (decrease)/increase in cash and cash equivalents
(4,021,808)
2,836,193
Page 17

 
MOUS PRODUCTS LTD
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023


2023
2022

£
£



Cash and cash equivalents at beginning of year
6,435,459
3,599,266

Cash and cash equivalents at the end of year
2,413,651
6,435,459


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,413,651
6,435,459

2,413,651
6,435,459



CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2023




At 1 April 2022
Cash flows
At 31 March 2023
£

£

£

Cash at bank and in hand

6,435,459

(4,021,808)

2,413,651

Debt due after 1 year

(1,190,000)

340,000

(850,000)

Debt due within 1 year

(340,000)

-

(340,000)


4,905,459
(3,681,808)
1,223,651

The notes on pages 19 to 41 form part of these financial statements.

Page 18

 
MOUS PRODUCTS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1.


General information

The entity is a private company, limited by shares, incorporated in England. The registered office is New Kings Court, Tollgate, Chandler's Ford, Eastleigh, Hampshire, United Kingdom, SO53 3LG.
The principal activity of the Group and Company is the manufacture and supply of mobile phone and laptop accessories.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared on a going concern basis under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. These are the financial statements of the group.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 19

 
MOUS PRODUCTS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.3

Going concern

The financial statements have been prepared on a going concern basis. 
The Group made a pre-tax loss for the year of £3,318,124 (2022 - £2,007,284). The loss reflects the Group's strategy in the year of furthering its brand and increasing its market presence through high marketing costs and investment into research and development. 
The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the annual report and accounts.

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP. The functional currency of the Company's wholly owned subsidiary which has been consolidated in these financial statements is Chinese Yuan. The presentational currency of the Group is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Page 20

 
MOUS PRODUCTS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

Page 21

 
MOUS PRODUCTS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.11

Pensions

Defined contribution pension plan

The Group operates a defined contribution pension plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.12

Share based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted.

Page 22

 
MOUS PRODUCTS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.13

Current and deferred taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.14

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

Page 23

 
MOUS PRODUCTS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.15

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 Amortisation is provided on the following bases:

Product certification
-
33% straight line
Trademarks
-
10% straight line
Computer software
-
20% straight line
Development costs
-
20% straight line

Page 24

 
MOUS PRODUCTS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.16

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following bases:

Plant and machinery
-
25-33% straight line
Office equipment
-
25% straight line
Computer equipment
-
33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.17

Investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.18

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. 

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.19

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 25

 
MOUS PRODUCTS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.20

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.21

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.22

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

Page 26

 
MOUS PRODUCTS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.23

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Assets are depreciated and amortised over their expected useful lives as estimated by the Directors. 
The valuation of stock held at year end is a key judgement made by the Directors. Management ensure that damaged, slow moving and obsolete stock provisions are as accurate as possible, however there is a risk that these provisions do not match the actual write off for damaged, slow moving or obsolete stock.
At the end of each reporting period, the Directors estimate the number of share options that are expected to vest as well as the expected vesting period, in determining the share based payment charge for the period. 

Page 27

 
MOUS PRODUCTS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Website
18,224,730
18,328,996

Retail
199,731
416,203

Marketplace
5,727,000
2,997,850

24,151,461
21,743,049



5.


Operating loss

The operating loss is stated after charging:

2023
2022
£
£

Research & development charged as an expense
  
63,555
33,284

Loss/(Profit) on disposal of fixed assets
  
11,835
(737)

Exchange differences
  
(223,519)
(106,472)

Research & development included within other admin costs
  
205,943
190,639

Operating lease costs
  
128,156
88,370

Exceptional expenses
 27 
47,915
134,758

Share based payment
 24 
468,832
345,372

Non-cash advertising costs
  
1,337,573
103,202

The non-cash advertising costs of £1,337,573 (2022 - £103,202) are in respect of marketing services rendered to the company in exchange for non-cash consideration.


6.


Auditors' remuneration

2023
2022
£
£

Fees payable to the Group's auditors for the audit of the consolidated and parent Company's financial statements

29,750
24,400

All non-audit services not included above
3,750
1,600

Page 28

 
MOUS PRODUCTS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

7.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
3,311,497
2,891,860
3,344,274
2,891,860

Social security costs
340,213
258,432
341,867
258,432

Cost of defined contribution pension scheme
69,815
63,017
69,815
63,017

3,721,525
3,213,309
3,755,956
3,213,309


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Employees
94
60
70
60


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
135,833
85,000

Group contributions to defined contribution pension schemes
6,792
4,250

142,625
89,250


The directors are the Key Management Personnel of the company and their remuneration is detailed above.
During the year, retirement benefits were accruing to 1 director (2022 – 1) under money purchase pension schemes.
The value of the Group’s contributions paid in respect of directors to defined contribution pension schemes in the year amounted to £6,792 (2022 - £4,250).

Page 29

 
MOUS PRODUCTS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

9.


Interest receivable and similar income

2023
2022
£
£


Other interest receivable
124
1,532

124
1,532


10.


Interest payable and similar expenses

2023
2022
£
£


Other interest payable
16,165
16,890

Trade facility interest
59,200
21,699

Other loan interest payable
89,396
33,863

164,761
72,452


11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on loss for the year
(277,401)
(184,862)


(277,401)
(184,862)


Total current tax
(277,401)
(184,862)

Total deferred tax
 
-
 
-


Taxation on loss on ordinary activities
(277,401)
(184,862)
Page 30

 
MOUS PRODUCTS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Loss on ordinary activities before tax
(3,318,124)
(2,007,284)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
(630,444)
(381,384)

Effects of:


Expenses not deductible
156,019
207,140

R&D tax credit
(279,144)
(184,862)

Capital allowances - super deduction
(36,152)
(34,555)

Deferred tax asset not recognised
512,320
208,799

Total tax charge for the year
(277,401)
(184,862)


Factors that may affect future tax charges

An increase in the UK corporation tax rate from 19% to 25% was substantively enacted in June 2021 and will take effect from 1 April 2023 for profits over £250,000. For profits under £50,000 the tax rate will remain the same at 19% and for profits between these figures it will be subject to 25% but reduced by a marginal relief providing a gradual increase in the effective Corporation Tax rate.

Page 31

 
MOUS PRODUCTS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

12.


Intangible assets

Group and Company





Product certification
Trademarks
Computer software
Development costs
Total

£
£
£
£
£



Cost


At 1 April 2022
64,024
36,795
73,807
524,347
698,973


Additions
116,560
-
154,672
780,215
1,051,447


Impairments
(9,650)
-
-
(1,394)
(11,044)



At 31 March 2023

170,934
36,795
228,479
1,303,168
1,739,376



Amortisation


At 1 April 2022
28,265
25,450
14,934
54,317
122,966


Charge for the year
35,939
3,680
32,663
187,834
260,116


Impairments
(8,180)
-
-
(210)
(8,390)



At 31 March 2023

56,024
29,130
47,597
241,941
374,692



Net book value



At 31 March 2023
114,910
7,665
180,882
1,061,227
1,364,684



At 31 March 2022
35,759
11,345
58,873
470,030
576,007



Page 32

 
MOUS PRODUCTS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

13.


Tangible fixed assets

Group and Company






Plant and machinery
Office equipment
Computer equipment
Total

£
£
£
£



Cost


At 1 April 2022
1,122,971
10,186
200,414
1,333,571


Additions
559,943
1,515
72,782
634,240


Disposals
-
-
(57,907)
(57,907)


Transfers between classes
10,399
(3,893)
(6,506)
-


Impairments
(78,030)
-
(14,737)
(92,767)



At 31 March 2023

1,615,283
7,808
194,046
1,817,137



Depreciation


At 1 April 2022
556,246
3,278
81,843
641,367


Charge for the year
431,093
2,095
65,075
498,263


Disposals
-
-
(42,204)
(42,204)


Transfers between classes
773
(231)
(542)
-


Impairments
(65,894)
-
(8,247)
(74,141)



At 31 March 2023

922,218
5,142
95,925
1,023,285



Net book value



At 31 March 2023
693,065
2,666
98,121
793,852



At 31 March 2022
566,725
6,908
118,571
692,204

Page 33

 
MOUS PRODUCTS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

14.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 April 2022
13,724


Additions
-


Disposals
-


Impairments
-



At 31 March 2023
13,724





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

DG Mous Business Service Limited
Room 302, Building 1, No.218 Dongcheng Section, Guanzhang Street, Dongcheng District, Dongguan City, Guangdong Province
Ordinary
100%






Page 34

 
MOUS PRODUCTS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

15.


Stocks

Group

Group
Company

Company
2023
2022
2023
2022
£
£
£
£

Work in progress
139,262
29,106
139,262
29,106

Finished goods and goods for resale
2,522,023
2,591,929
2,522,023
2,591,929

2,661,285
2,621,035
2,661,285
2,621,035



16.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
41,114
121,941
41,114
121,941

Other debtors
262,395
154,061
262,252
154,061

Prepayments and accrued income
573,775
1,318,284
573,775
1,318,284

Tax recoverable
279,143
186,197
279,143
186,197

1,156,427
1,780,483
1,156,284
1,780,483



17.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
2,413,651
6,435,459
2,370,600
6,435,459

2,413,651
6,435,459
2,370,600
6,435,459


Page 35

 
MOUS PRODUCTS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

18.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
340,000
340,000
340,000
340,000

Trade creditors
1,689,894
2,304,464
1,689,894
2,304,464

Amounts owed to group undertakings
-
-
54,845
-

Other taxation and social security
278,755
272,788
278,755
272,788

Other creditors
1,122,513
1,683,414
1,076,068
1,697,138

Accruals and deferred income
607,760
590,405
607,760
590,405

4,038,922
5,191,071
4,047,322
5,204,795


There is no security held over the bank loan.
Included within other creditors is a trade facility balance due by the Group and Company at the year end of £541,317 (2022 - £1,165,416). There is a fixed and floating charge over all of the assets of the Group in respect of the company trade facility.


19.


Creditors: Amounts falling due after more than one year

Group
As restated Group
Company
As restated Company
2023
2022
2023
2022
£
£
£
£

Bank loans
850,000
1,190,000
850,000
1,190,000

850,000
1,190,000
850,000
1,190,000


There is no security held over the bank loan.

Page 36

 
MOUS PRODUCTS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

20.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts falling due within one year

Bank loans
340,000
340,000
340,000
340,000


340,000
340,000
340,000
340,000


Amounts falling due 2-5 years

Bank loans
850,000
1,190,000
850,000
1,190,000


850,000
1,190,000
850,000
1,190,000


1,190,000
1,530,000
1,190,000
1,530,000



21.


Provisions


Group and Company



Other provisions

£





At 1 April 2022
30,039


Charged to profit or loss
13,454



At 31 March 2023
43,493

The company has certain provisions in respect of obligations on contracts where there are requirements that can be reliably estimated but the timing of the obligation is not yet known. The provisions are likely to fall due within 5 years.

Page 37

 
MOUS PRODUCTS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

22.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



10,373,195 (2022 - 10,373,195) Ordinary shares of £0.00001 each
104
104
1,691,000 (2022 - 1,691,000) Series A Ordinary shares of £0.00001 each
17
17

121

121

Both share classes have full voting rights. The Series A Ordinary shares have preference on liquidation.



23.


Reserves

Share premium account

The share premium account includes funds received by the company in excess of the par value of the shares.

Capital redemption reserve

The capital redemption reserve is non distributable and includes funds from the redemption of shares.

Foreign exchange reserve

The foreign exchange reserve includes exchange differences arising on the translation of overseas subsidiaries, recognised in other comprehensive income, with a movement of £2,303 in the year.

Other reserves

Other reserves include the share based payment reserve and a reserve in respect of warrants issued by the Group.

Profit and loss account

The profit and loss account represents the accumulation of profits and losses incurred since incorporation.

Page 38

 
MOUS PRODUCTS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

24.


Share based payments

The Group operates an equity settled employee share option scheme. The fair value of share options are measured at the grant date. The share options are split into two groups with some vesting based on length of service and the remainder vesting on an exit event and company valuation. At the end of each accounting period the estimated number of share options that are likely to be exercised is used to calculate the share based payment, which is included in Other reserves. Share based payments in respect of the share options are recognised over the anticipated vesting period. The total value of the share based payment in the year was £468,832 (2022 - £345,372).
The share based payment reserve of £814,204 (2022 - £345,372) is included in Other reserves.      
A reconciliation of share option movements for the year ended 31 March 2023 is shown below:

Weighted average exercise price
2023
Number
2023
Weighted average exercise price
2022
Number
2022

Outstanding at the beginning of the year

1.58

886,010

10.95
 
80,300
 
Granted during the year

3.74

670,131

62.84
 
9,601
 
Released during the year

(4.80)

(155,360)

 
-
 
Lapsed during the year

(4.32)

(280,638)

(62.84)
 
(1,300)
 
Lapsed on subdivision of shares


-

(15.81)
 
(88,601)
 
Reissue on subdivision


-

1.58
 
886,010
 
Outstanding at the end of the year
1.74

1,120,143

1.58
 
886,010
 




25.


Pension commitments

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £89,614 (2022 - £73,492). Contributions totalling £15,047 (2022 - £14,284) were payable to the fund at the balance sheet date and are included in creditors.

Page 39

 
MOUS PRODUCTS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

26.


Commitments under operating leases

At 31 March 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Not later than 1 year
100,385
75,516
65,171
75,516

Later than 1 year and not later than 5 years
2,935
4,800
-
4,800

103,320
80,316
65,171
80,316


27.


Exceptional expenses

2023
2022
£
£


Restructuring and fundraising costs
47,915
134,758

47,915
134,758

The Group incurred exceptional expenses in the year in respect of restructuring and fundraising costs. These have been presented as 'Exceptional expenses' in the Statement of Comprehensive Income.


28.


Related party transactions

The Company has taken advantage of the exemption available in Financial Reporting Standard 102 Section 33 whereby it has not disclosed transactions with any wholly owned subsidiary of the Company.
There were no further related party transactions in the current year that require disclosure in the financial statements.

Page 40

 
MOUS PRODUCTS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

29.


Prior year adjustments

Warrants
It was resolved that warrant instruments prevoiusly recognised as creditors due in more than one year should be recognised within other reserves in equity based on the nature and conditions of the warrant instruments. The effect on the prior year financial statements has been to reduce creditors due in more than one year by £103,202 and to increase other reserves within equity by £103,202. There has been no effect on the loss after taxation. The prior year figures in the statement of cash flows have also been restated, where required, to reflect the nature of the instruments. The instruments were issued as non-cash consideration in lieu of marketing services rendered to the Group. 
Statement of Cash Flows
The figures in the prior year statement of cash flows have been restated in these financial statements. An increase in prepaymentes of £999,973 previously included in net cash generated from operating activities and within cash flows from financing activities have been restated in these financial statements.
 

 
Page 41