Caseware UK (AP4) 2022.0.179 2022.0.179 2022-12-312022-12-31falsefalseNo description of principal activity2022-01-011312true 06818077 2022-01-01 2022-12-31 06818077 2021-01-01 2021-12-31 06818077 2022-12-31 06818077 2021-12-31 06818077 2021-01-01 06818077 1 2022-01-01 2022-12-31 06818077 1 2021-01-01 2021-12-31 06818077 5 2022-01-01 2022-12-31 06818077 5 2021-01-01 2021-12-31 06818077 d:Director1 2022-01-01 2022-12-31 06818077 d:Director1 2022-12-31 06818077 d:Director12 2022-01-01 2022-12-31 06818077 d:Director12 2022-12-31 06818077 d:Director13 2022-01-01 2022-12-31 06818077 d:Director13 2022-12-31 06818077 d:Director14 2022-01-01 2022-12-31 06818077 d:Director14 2022-12-31 06818077 d:RegisteredOffice 2022-01-01 2022-12-31 06818077 e:PlantMachinery 2022-01-01 2022-12-31 06818077 e:PlantMachinery 2022-12-31 06818077 e:PlantMachinery 2021-12-31 06818077 e:PlantMachinery e:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 06818077 e:OfficeEquipment 2022-01-01 2022-12-31 06818077 e:OfficeEquipment 2022-12-31 06818077 e:OfficeEquipment 2021-12-31 06818077 e:OfficeEquipment e:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 06818077 e:OtherPropertyPlantEquipment 2022-01-01 2022-12-31 06818077 e:OtherPropertyPlantEquipment 2022-12-31 06818077 e:OtherPropertyPlantEquipment 2021-12-31 06818077 e:OtherPropertyPlantEquipment e:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 06818077 e:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 06818077 e:CurrentFinancialInstruments 2022-12-31 06818077 e:CurrentFinancialInstruments 2021-12-31 06818077 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 06818077 e:CurrentFinancialInstruments e:WithinOneYear 2021-12-31 06818077 f:UnitedKingdom 2022-01-01 2022-12-31 06818077 f:UnitedKingdom 2021-01-01 2021-12-31 06818077 f:RestWorldOutsideUK 2022-01-01 2022-12-31 06818077 f:RestWorldOutsideUK 2021-01-01 2021-12-31 06818077 e:UKTax 2022-01-01 2022-12-31 06818077 e:UKTax 2021-01-01 2021-12-31 06818077 e:ShareCapital 2022-12-31 06818077 e:ShareCapital 2021-12-31 06818077 e:SharePremium 2022-12-31 06818077 e:SharePremium 2021-12-31 06818077 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 06818077 e:RetainedEarningsAccumulatedLosses 2022-12-31 06818077 e:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 06818077 e:RetainedEarningsAccumulatedLosses 2021-12-31 06818077 e:RetainedEarningsAccumulatedLosses 2021-01-01 06818077 d:FRS102 2022-01-01 2022-12-31 06818077 d:Audited 2022-01-01 2022-12-31 06818077 d:FullAccounts 2022-01-01 2022-12-31 06818077 d:PrivateLimitedCompanyLtd 2022-01-01 2022-12-31 06818077 e:WithinOneYear 2022-12-31 06818077 e:WithinOneYear 2021-12-31 06818077 e:BetweenOneFiveYears 2022-12-31 06818077 e:BetweenOneFiveYears 2021-12-31 iso4217:GBP xbrli:pure

Registered number: 06818077










MITCHELL & NESS INTERNATIONAL LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

 
MITCHELL & NESS INTERNATIONAL LIMITED
 
 
COMPANY INFORMATION


Directors
K Wulff (resigned 16 February 2022)
C M Hille (resigned 16 February 2022)
D Mack (appointed 16 February 2022)
G H Schiffman (appointed 16 February 2022)




Registered number
06818077



Registered office
Building 256
Westcott Venture Park

Westcott

Aylesbury

Bucks

HP18 0XB




Independent auditors
Lancasters (Accountants) Limited
Chartered Accountants & Registered Auditor

Manor Courtyard

Aston Sandford

Bucks

HP17 8JB





 
MITCHELL & NESS INTERNATIONAL LIMITED
 

CONTENTS



Page
Strategic report
 
 
1 - 2
Directors' report
 
 
3 - 4
Independent auditors' report
 
 
5 - 8
Statement of income and retained earnings
 
 
9
Statement of financial position
 
 
10
Statement of cash flows
 
 
11
Analysis of net debt
 
 
12
Notes to the financial statements
 
 
13 - 21


 
MITCHELL & NESS INTERNATIONAL LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

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

Introduction
 
The company’s principal activity during the year was the wholesale and distribution of sports related nostalgia headwear, apparel and accessories managed from its office based in the UK.

Business review
 
2022 was the most successful year on record for Mitchell & Ness International Limited.
Turnover has increased by 57% to £19,453,563 and gross margins have also increased to 23%. EBITDA reached a high point at 17% of sales.
There continues to be a strong demand for our product range although we are impacted by issues that affect the global economy.
Despite the impending economic challenges, we expect to mirror our 2022 results in 2023.
With the company’s retained reserves, strong cash position and support from the parent company, we can capitalise on our commercial strengths and take future expansion opportunities as they may arise. 

Principal risks and uncertainties
 
Given the nature of the business, the principal risks and uncertainties are economic and operational.
Economic
The economic risk is based on risk of inflation, a downturn in the economy, increased costs in overheads and foreign exchange risk due to a large percentage of product being imported from outside the UK. These risks are managed by a continued focus on cost reduction and control and maintaining good currency management to mitigate risk.
Operational
Being able to supply stocked items and deliver on time is fundamental to our business.  
Procedures are in place to deliver product on time through our distributor network. 

Page 1

 
MITCHELL & NESS INTERNATIONAL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Financial key performance indicators
 
The key performance indicators that the board monitor with regard to financial performance are as follows:
Turnover
An increase in turnover to £19,453,563 from £12,416,614.
Gross Profit
An increase in gross profit to £4,505,811 from £1,564,647.
Gross Profit Margin
An increase in gross profit margin to 23% from 13%.
EBITDA Margin
An increase in EBITDA margin to 17% from 11%.
The directors will aim to continue to enhance performance by making use of KPI’s, in addition to monitoring non-financial matters including health and safety, staff retention, and customer service.


This report was approved by the board on 4 October 2023 and signed on its behalf.




G H Schiffman
Director

Page 2

 
MITCHELL & NESS INTERNATIONAL LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

The directors present their report and the financial statements for the year ended 31 December 2022.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 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 for the Company'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 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £2,766,586 (2021 - £79,252).



Directors

The directors who served during the year and their interest in the Company's issued share capital was:

Ordinary shares
of £1 each

31/12/22

1/1/22


K Wulff (resigned 16 February 2022)
-
-
C M Hille (resigned 16 February 2022)
-
-
D Mack (appointed 16 February 2022)
-
-
G H Schiffman (appointed 16 February 2022)
-
-


Future developments

Details of future developments are disclosed within the strategic report on page 1 of the financial statements.

Page 3

 
MITCHELL & NESS INTERNATIONAL LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

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'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's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

Under section 487(2) of the Companies Act 2006Lancasters (Accountants) Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board on 4 October 2023 and signed on its behalf.
 





G H Schiffman
Director

Page 4

 
MITCHELL & NESS INTERNATIONAL LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MITCHELL & NESS INTERNATIONAL LIMITED
 

Opinion


We have audited the financial statements of Mitchell & Ness International Limited (the 'Company') for the year ended 31 December 2022, which comprise the Statement of income and retained earnings, the Statement of financial position, the Statement of cash flows 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 Company's affairs as at 31 December 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 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 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 5

 
MITCHELL & NESS INTERNATIONAL LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MITCHELL & NESS INTERNATIONAL LIMITED (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 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 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, 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 Directors' responsibilities statement set out on page 3, 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 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.


Page 6

 
MITCHELL & NESS INTERNATIONAL LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MITCHELL & NESS INTERNATIONAL LIMITED (CONTINUED)


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 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:



As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:


Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.


We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.


Page 7

 
MITCHELL & NESS INTERNATIONAL LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MITCHELL & NESS INTERNATIONAL LIMITED (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.





Richard V Griggs (Senior statutory auditor)
  
for and on behalf of
Lancasters (Accountants) Limited
 
Chartered Accountants & Registered Auditor
  
Manor Courtyard
Aston Sandford
Bucks
HP17 8JB

4 October 2023
Page 8

 
MITCHELL & NESS INTERNATIONAL LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
Note
£
£

  

Turnover
 3 
19,453,563
12,416,614

Cost of sales
  
(14,947,752)
(10,851,967)

Gross profit
  
4,505,811
1,564,647

Administrative expenses
  
(1,444,049)
(1,485,395)

Operating profit
  
3,061,762
79,252

Tax on profit
 6 
(295,176)
-

Profit after tax
  
2,766,586
79,252

  

  

Retained earnings at the beginning of the year
  
(343,951)
(423,203)

  
(343,951)
(423,203)

Profit for the year
  
2,766,586
79,252

Retained earnings at the end of the year
  
2,422,635
(343,951)
The notes on pages 13 to 21 form part of these financial statements.

Page 9

 
MITCHELL & NESS INTERNATIONAL LIMITED
REGISTERED NUMBER: 06818077

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Tangible assets
 7 
34,541
46,740

  
34,541
46,740

Current assets
  

Stocks
  
3,363,368
1,951,558

Debtors: amounts falling due within one year
 8 
6,149,752
2,347,757

Cash at bank and in hand
 9 
4,305,573
3,644,207

  
13,818,693
7,943,522

Creditors: amounts falling due within one year
 10 
(11,230,499)
(8,134,113)

Net current assets/(liabilities)
  
 
 
2,588,194
 
 
(190,591)

Total assets less current liabilities
  
2,622,735
(143,851)

  

Net assets/(liabilities)
  
2,622,735
(143,851)


Capital and reserves
  

Called up share capital 
  
200
200

Share premium account
  
199,900
199,900

Profit and loss account
  
2,422,635
(343,951)

  
2,622,735
(143,851)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 4 October 2023.




G H Schiffman
Director

The notes on pages 13 to 21 form part of these financial statements.

Page 10

 
MITCHELL & NESS INTERNATIONAL LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
£
£

Cash flows from operating activities

Profit for the financial year
2,766,586
79,252

Adjustments for:

Depreciation of tangible assets
18,473
38,293

Loss on disposal of tangible assets
-
6,604

Taxation charge
295,176
-

(Increase)/decrease in stocks
(1,411,810)
390,916

(Increase)/decrease in debtors
(3,801,994)
117,984

Increase in creditors
1,593,545
32,869

Increase in amounts owed to groups
1,207,664
728,389

Net cash generated from operating activities

667,640
1,394,307


Cash flows from investing activities

Purchase of tangible fixed assets
(6,274)
(7,478)

Net cash from investing activities

(6,274)
(7,478)


Net increase in cash and cash equivalents
661,366
1,386,829

Cash and cash equivalents at beginning of year
3,644,207
2,257,378

Cash and cash equivalents at the end of year
4,305,573
3,644,207


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
4,305,573
3,644,207

4,305,573
3,644,207


The notes on pages 13 to 21 form part of these financial statements.

Page 11

 
MITCHELL & NESS INTERNATIONAL LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2022




At 1 January 2022
Cash flows
At 31 December 2022
£

£

£

Cash at bank and in hand

3,644,207

661,366

4,305,573

Debt due within 1 year

-

(28)

(28)


3,644,207
661,338
4,305,545

The notes on pages 13 to 21 form part of these financial statements.

Page 12

 
MITCHELL & NESS INTERNATIONAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

Mitchell & Ness International Limited is a company domiciled in England and Wales, registration number 06818077. The registered office is Building 256, Westcott Venture Park, Westcott, Aylesbury, Bucks, HP18 0XB.
The principal activity of the company during the period was that of wholesale and distribution of sports related accessories and apparel.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of 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 management to exercise judgment in applying the Company's accounting policies.

The following principal accounting policies have been applied:

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency 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.

Page 13

 
MITCHELL & NESS INTERNATIONAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company 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 Company has transferred the significant risks and rewards of ownership to the buyer;
the Company 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 Company 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.

 
2.4

Operating leases: the Company as lessee

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

 
2.5

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.6

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 reporting date in the countries where the Company operates and generates income.

Page 14

 
MITCHELL & NESS INTERNATIONAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.7

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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as follows.

Depreciation is provided on the following basis:

Plant & machinery
-
20%
Reducing balance
Office equipment
-
25%
Straight Line
Website
-
20%
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.

 
2.8

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. Work in progress and finished goods include labour and attributable overheads.

At each reporting 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.

 
2.9

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.

 
2.10

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 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 Company's cash management.

Page 15

 
MITCHELL & NESS INTERNATIONAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.11

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.

 
2.12

Financial instruments

The Company 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 Statement of income and retained earnings.

Financial assets and liabilities are offset and the net amount reported in the Statement of financial position 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.


Turnover

Analysis of turnover by country of destination:

2022
2021
£
£

United Kingdom
7,495,579
4,042,055

Rest of the world
11,957,984
8,374,559

19,453,563
12,416,614


Page 16

 
MITCHELL & NESS INTERNATIONAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

4.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2022
2021
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
18,000
15,000


5.


Employees

2022
2021
£
£

Wages and salaries
691,361
658,293

Social security costs
67,512
53,000

Cost of defined contribution scheme
43,038
30,397

801,911
741,690


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


        2022
        2021
            No.
            No.







Directors
2
2



Administration
4
3



Sales and Marketing
4
4



Warehouse
3
3

13
12

Page 17

 
MITCHELL & NESS INTERNATIONAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

6.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
295,176
-


295,176
-


Total current tax
295,176
-

Deferred tax

Total deferred tax
-
-


Taxation on profit on ordinary activities
295,176
-

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2021 - lower than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


Profit on ordinary activities before tax
3,061,762
79,252


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
581,735
15,058

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,423
1,252

Capital allowances for year in excess of depreciation
1,782
6,493

Utilisation of tax losses
(322,223)
(22,803)

Changes in provisions leading to an increase (decrease) in the tax charge
31,459
-

Total tax charge for the year
295,176
-


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 18

 
MITCHELL & NESS INTERNATIONAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

7.


Tangible fixed assets





Plant & machinery
Office equipment
Website
Total

£
£
£
£



Cost or valuation


At 1 January 2022
61,711
79,688
72,290
213,689


Additions
-
6,274
-
6,274



At 31 December 2022

61,711
85,962
72,290
219,963



Depreciation


At 1 January 2022
52,106
77,337
37,506
166,949


Charge for the year on owned assets
1,091
2,924
14,458
18,473



At 31 December 2022

53,197
80,261
51,964
185,422



Net book value



At 31 December 2022
8,514
5,701
20,326
34,541



At 31 December 2021
9,605
2,351
34,784
46,740

Page 19

 
MITCHELL & NESS INTERNATIONAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

8.


Debtors

2022
2021
£
£


Trade debtors
6,008,769
2,307,541

Other debtors
117,719
19,662

Prepayments and accrued income
23,264
20,554

6,149,752
2,347,757



9.


Cash and cash equivalents

2022
2021
£
£

Cash at bank and in hand
4,305,573
3,644,207

4,305,573
3,644,207



10.


Creditors: Amounts falling due within one year

2022
2021
£
£

Trade creditors
1,127,970
270,410

Amounts owed to group undertakings
8,999,622
7,791,957

Corporation tax
295,176
-

Other taxation and social security
39,414
39,237

Other creditors
651,811
-

Accruals and deferred income
116,506
32,509

11,230,499
8,134,113


Page 20

 
MITCHELL & NESS INTERNATIONAL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

11.


Commitments under operating leases

At 31 December 2022 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2022
2021
£
£


Not later than 1 year
87,100
87,100

Later than 1 year and not later than 5 years
181,458
268,558

268,558
355,658


12.


Controlling party

Mitchell & Ness LLC, a Delaware limited liability company incorporated in the United States, is the immediate parent company and their address is 235 S 17th Street, Philadelphia, PA 19103.
The ultimate parent company is Fanatics Holdings Inc, registered in the United States.                              
During the year, the company made purchases of £4,925,436 (2021: £4,145,117) from Mitchell & Ness LLC.
Included in creditors is £8,999,622 (2021: £7,791,957) owed to Mitchell & Ness LLC.
The above transactions took place at cost.

 
Page 21