Caseware UK (AP4) 2022.0.179 2022.0.179 2022-08-312022-08-312022-08-312021-09-011false1truefalse 09350386 2021-09-01 2022-08-31 09350386 2020-09-01 2021-08-31 09350386 2022-08-31 09350386 2021-08-31 09350386 2020-09-01 09350386 1 2021-09-01 2022-08-31 09350386 d:Director1 2021-09-01 2022-08-31 09350386 d:RegisteredOffice 2021-09-01 2022-08-31 09350386 c:Buildings c:ShortLeaseholdAssets 2021-09-01 2022-08-31 09350386 c:PlantMachinery 2021-09-01 2022-08-31 09350386 c:FurnitureFittings 2021-09-01 2022-08-31 09350386 c:Goodwill 2021-09-01 2022-08-31 09350386 c:CurrentFinancialInstruments 2022-08-31 09350386 c:CurrentFinancialInstruments 2021-08-31 09350386 c:Non-currentFinancialInstruments 2022-08-31 09350386 c:Non-currentFinancialInstruments 2021-08-31 09350386 c:CurrentFinancialInstruments c:WithinOneYear 2022-08-31 09350386 c:CurrentFinancialInstruments c:WithinOneYear 2021-08-31 09350386 c:ShareCapital 2022-08-31 09350386 c:ShareCapital 2021-08-31 09350386 c:ShareCapital 2020-09-01 09350386 c:RetainedEarningsAccumulatedLosses 2021-09-01 2022-08-31 09350386 c:RetainedEarningsAccumulatedLosses 2022-08-31 09350386 c:RetainedEarningsAccumulatedLosses 2020-09-01 2021-08-31 09350386 c:RetainedEarningsAccumulatedLosses 2021-08-31 09350386 c:RetainedEarningsAccumulatedLosses 2020-09-01 09350386 d:OrdinaryShareClass1 2021-09-01 2022-08-31 09350386 d:OrdinaryShareClass1 2022-08-31 09350386 d:OrdinaryShareClass1 2021-08-31 09350386 d:FRS102 2021-09-01 2022-08-31 09350386 d:Audited 2021-09-01 2022-08-31 09350386 d:FullAccounts 2021-09-01 2022-08-31 09350386 d:PrivateLimitedCompanyLtd 2021-09-01 2022-08-31 09350386 c:Subsidiary1 2021-09-01 2022-08-31 09350386 c:Subsidiary1 1 2021-09-01 2022-08-31 09350386 d:Consolidated 2022-08-31 09350386 d:ConsolidatedGroupCompanyAccounts 2021-09-01 2022-08-31 09350386 2 2021-09-01 2022-08-31 09350386 6 2021-09-01 2022-08-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 09350386










MO FREEDOM LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2022

 
MO FREEDOM LIMITED
 
 
COMPANY INFORMATION


Director
M Odabash 




Registered number
09350386



Registered office
22 Bruton Street

London

W1J 6QE




Independent auditors
Simmons Gainsford LLP
Chartered Accountants & Statutory Auditors

14th Floor

33 Cavendish Square

London

W1G 0PW





 
MO FREEDOM LIMITED
 

CONTENTS



Page
Group strategic report
 
1 - 2
Director's report
 
3 - 4
Independent auditors' report
 
5 - 8
Consolidated statement of comprehensive income
 
9
Consolidated balance sheet
 
10
Company balance sheet
 
11
Consolidated statement of changes in equity
 
12
Company statement of changes in equity
 
13
Consolidated statement of cash flows
 
14 - 15
Consolidated analysis of net debt
 
16
Notes to the financial statements
 
17 - 33


 
MO FREEDOM LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2022

Introduction
 
The director presents her strategic report for the year ended 31 August 2022.

Business review
 
The principal activity of the Group continued to be that of the design, manufacture and distribution of women’s holiday wear. There have been no major changes in the group’s core activities in the year under review.
 
Overall growth has been reported in the period under review, following the cessation of lockdown.  The relaxing of travel and holiday restrictions has resulted in an increase in sales across the board.
The results for 2023 are expected to show a reduction due to the cost of living crisis and the Ukraine war.

Principal risks and uncertainties
 
The director is constantly reviewing market conditions and competitors’ activities in order to remain relevant and maintaining trade with existing customers and engaging new customers across various activities of the Group.
Liquidity Risk
The Group has a strong operating cash inflow and manages its cash requirements to ensure that the Group has sufficient liquid resources to meet the operating needs of the business.
Credit Risk
Trade debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary.
Foreign Exchange Risk
Foreign exchange risks arise primarily on transactions that are denominated in USD and EUR. In managing its exposure regarding the fluctuation in foreign currency exchange rates, the Group maintains USD and Euro bank accounts to offset the receipts and payments as far as possible and to minimise the exchange impact.

Financial key performance indicators
 
The key financial performance indicators of the Group are turnover, gross profit and operating profit. A brief
analysis of these is shown below:
                                                                       
2022                    2021              Variance
Turnover                                                    £14,819,970          £13,214,813             12%
Gross Profit                                                £7,743,393             £7,251,246               7% 
Operating profit                                              £847,618               £853,897              -1%
 

Page 1

 
MO FREEDOM LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022


This report was approved by the board on 22 November 2023 and signed on its behalf.



................................................
M Odabash
Director

Page 2

 
MO FREEDOM LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 AUGUST 2022

The director presents her report and the financial statements for the year ended 31 August 2022.

Principal activities

The principal activity of the Company is that of a management company for Avalon Fashions Group. The principal activity of the Group continued to be that of designing, manufacturing and selling beachwear.

Director

The director who served during the year was:

M Odabash 

Director's responsibilities statement

The director is responsible for preparing the Group strategic report, the Director's report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless she is 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 director is required to:


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

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The director is 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 her to ensure that the financial statements comply with the Companies Act 2006She is 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 profit for the year, after taxation and minority interests, amounted to £471,560 (2021 - £490,086).

Dividends of £528,940 (2021: £376,550) were paid during the year. The director does not propose a final dividend.

Future developments

The directors have indicated that the group will continue to trade in beachwear.

Page 3

 
MO FREEDOM LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022

Matters covered in the Group strategic report

The following information has been included in the strategic report:
- A business review
- Principal risks and uncertainties
- Financial and other key performance indicators

Disclosure of information to auditors

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

she 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.

Going concern

The director has, at the time of approving the financial statements, a reasonable expectation that the Group and the Company have adequate resources to continue in operational existence for a period of at least 12 months from the state of approval of these financial statements. Thus, the going concern basis of accounting has been adopted in preparing the financial statements.

Auditors

The auditorsSimmons Gainsford LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 22 November 2023 and signed on its behalf.
 





................................................
M Odabash
Director

Page 4

 
MO FREEDOM LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MO FREEDOM LIMITED
 

Opinion


We have audited the financial statements of MO Freedom Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 August 2022, which comprise the Group Statement of comprehensive income, the Group and Company Balance sheets, the Group Statement of cash flows, the Group 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 August 2022 and of the Group's 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 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 director's 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 director with respect to going concern are described in the relevant sections of this report.


Page 5

 
MO FREEDOM LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MO FREEDOM 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 director is 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 Director's 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 Director's 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 Director's 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 parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's 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 Director's responsibilities statement set out on page 3, the director is 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 director determines 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 director is 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 director either intends to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
MO FREEDOM LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MO FREEDOM 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 Group financial statements.


Extent to which the audit was considered capable of detecting irregularities, including fraud
 
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.
Based on our understanding of the Group and industry, we identified and assessed the risks of material misstatements, including fraud and non-compliance with laws and regulations that could be expected to have a material impact on the financial statements. We also enquired of management and those charged with governance about their own identification and assessment of the risks of irregularities. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
We obtained an understanding of the legal and regulatory frameworks that the Group and the parent company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, UK financial reporting standards, Tax and Pensions legislation, and distributable profits legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Group’s and parent company's ability to operate or to avoid a material penalty.
As a result of performing the above, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to revenue recognition. We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls).
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
 
Page 7

 
MO FREEDOM LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MO FREEDOM LIMITED (CONTINUED)




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.


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.





Abdultaiyab Pisavadi BSc FCA (Senior statutory auditor)
  
for and on behalf of
Simmons Gainsford LLP
 
Chartered Accountants
Statutory Auditors
  
14th Floor
33 Cavendish Square
London
W1G 0PW

22 November 2023
Page 8

 
MO FREEDOM LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2022

2022
2021
Note
£
£

  

Turnover
 4 
14,819,970
13,214,813

Cost of sales
  
(7,076,577)
(5,963,567)

Gross profit
  
7,743,393
7,251,246

Distribution costs
  
(3,168,652)
(2,992,103)

Administrative expenses
  
(3,762,661)
(3,530,769)

Other operating income
 5 
35,538
125,523

Operating profit
 6 
847,618
853,897

Interest receivable and similar income
 10 
230
429

Interest payable and similar expenses
 11 
(935)
(5,001)

Profit before taxation
  
846,913
849,325

Tax on profit
 12 
(220,795)
(169,246)

Profit for the financial year
  
626,118
680,079

  

Currency translation differences
  
206,107
-

Total comprehensive income for the year
  
832,225
680,079

Profit for the year attributable to:
  

Non-controlling interests
  
154,558
189,993

Owners of the parent Company
  
471,560
490,086

  
626,118
680,079

Total comprehensive income for the year attributable to:
  

Non-controlling interest
  
154,558
189,993

Owners of the parent Company
  
677,667
490,086

  
832,225
680,079

The notes on pages 17 to 33 form part of these financial statements.

Page 9

 
MO FREEDOM LIMITED
REGISTERED NUMBER: 09350386

CONSOLIDATED BALANCE SHEET
AS AT 31 AUGUST 2022

2022
2021
Note
£
£

Fixed assets
  

Intangible assets
 15 
132,532
185,546

Tangible assets
 16 
66,303
57,242

  
198,835
242,788

Current assets
  

Stocks
 18 
1,519,996
1,046,011

Debtors: amounts falling due after more than one year
 19 
57,958
57,958

Debtors: amounts falling due within one year
 19 
2,114,198
1,660,652

Cash at bank and in hand
 20 
5,238,773
6,281,862

  
8,930,925
9,046,483

Creditors: amounts falling due within one year
 21 
(3,172,727)
(3,635,523)

Net current assets
  
 
 
5,758,198
 
 
5,410,960

Total assets less current liabilities
  
5,957,033
5,653,748

Net assets
  
5,957,033
5,653,748


Capital and reserves
  

Called up share capital 
 22 
1
1

Profit and loss account
 23 
3,585,565
3,436,838

Equity attributable to owners of the parent Company
  
3,585,566
3,436,839

Non-controlling interests
  
2,371,467
2,216,909

Shareholders' funds
  
5,957,033
5,653,748


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 November 2023.




................................................
M Odabash
Director

The notes on pages 17 to 33 form part of these financial statements.

Page 10

 
MO FREEDOM LIMITED
REGISTERED NUMBER: 09350386

COMPANY BALANCE SHEET
AS AT 31 AUGUST 2022

2022
2021
Note
£
£

Fixed assets
  

Investments
 17 
1,193,174
1,193,174

  
1,193,174
1,193,174

Current assets
  

Debtors: amounts falling due within one year
 19 
128,294
117,760

Cash at bank and in hand
 20 
267,626
245,635

  
395,920
363,395

Creditors: amounts falling due within one year
 21 
(528,002)
(459,155)

Net current liabilities
  
 
 
(132,082)
 
 
(95,760)

Total assets less current liabilities
  
1,061,092
1,097,414

  

  

Net assets
  
1,061,092
1,097,414


Capital and reserves
  

Called up share capital 
 22 
1
1

Profit and loss account
 23 
1,061,091
1,097,413

Shareholder's funds
  
1,061,092
1,097,414


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 November 2023.



................................................
M Odabash
Director

The notes on pages 17 to 33 form part of these financial statements.

Page 11

 
MO FREEDOM LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2022


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity

£
£
£
£
£

At 1 September 2021
1
3,436,838
3,436,839
2,216,909
5,653,748


Comprehensive income for the year

Profit for the year
-
471,560
471,560
154,558
626,118

Currency translation differences
-
206,107
206,107
-
206,107

Dividends: Equity capital
-
(528,940)
(528,940)
-
(528,940)


At 31 August 2022
1
3,585,565
3,585,566
2,371,467
5,957,033


The notes on pages 17 to 33 form part of these financial statements.


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2021


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity

£
£
£
£
£

At 11 September 2020
1
3,323,302
3,323,303
2,026,916
5,350,219


Comprehensive income for the year

Profit for the year
-
490,086
490,086
189,993
680,079

Dividends: Equity capital
-
(376,550)
(376,550)
-
(376,550)


At 31 August 2021
1
3,436,838
3,436,839
2,216,909
5,653,748


The notes on pages 17 to 33 form part of these financial statements.

Page 12

 
MO FREEDOM LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 September 2021
1
1,097,413
1,097,414


Comprehensive income for the year

Profit for the year
-
492,618
492,618


Contributions by and distributions to owners

Dividends: Equity capital
-
(528,940)
(528,940)


At 31 August 2022
1
1,061,091
1,061,092


The notes on pages 17 to 33 form part of these financial statements.


COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2021


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 September 2019
1
1,217,670
1,217,671


Comprehensive income for the year

Profit for the year
-
256,293
256,293


Contributions by and distributions to owners

Dividends: Equity capital
-
(376,550)
(376,550)


At 31 August 2021
1
1,097,413
1,097,414


The notes on pages 17 to 33 form part of these financial statements.

Page 13

 
MO FREEDOM LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2022

2022
2021
£
£

Profit for the financial year
626,118
680,079

Adjustments for:

Amortisation of intangible assets
53,014
53,014

Depreciation of tangible assets
43,596
33,629

Profit on disposal of tangible assets
-
(130)

Government grants
-
(125,523)

Interest paid
935
5,001

Interest received
(230)
(429)

Taxation charge
220,795
169,246

(Increase)/decrease in stocks
(473,985)
108,883

Increase in debtors
(388,724)
(267,470)

(Decrease)/increase in creditors
(677,711)
1,121,868

Corporation tax (paid)
(70,702)
(93,427)

Net cash generated from operating activities

(666,894)
1,684,741


Cash flows from investing activities

Purchase of tangible fixed assets
(52,657)
(28,096)

Sale of tangible fixed assets
-
1,900

Government grants received
-
125,523

Interest received
230
429

Net cash from investing activities

(52,427)
99,756
Page 14

 
MO FREEDOM LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022


2022
2021

£
£



Cash flows from financing activities

Dividends paid
(528,940)
(376,550)

Interest paid
(935)
(5,001)

Net cash used in financing activities
(529,875)
(381,551)

Net (decrease)/increase in cash and cash equivalents
(1,249,196)
1,402,946

Cash and cash equivalents at beginning of year
6,281,862
4,878,916

Foreign exchange gains and losses
206,107
-

Cash and cash equivalents at the end of year
5,238,773
6,281,862


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
5,238,773
6,281,862

5,238,773
6,281,862


The notes on pages 17 to 33 form part of these financial statements.

Page 15

 
MO FREEDOM LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 AUGUST 2022




At 1 September 2021
Cash flows
At 31 August 2022
£

£

£

Cash at bank and in hand

6,281,862

(1,043,089)

5,238,773

Debt due within 1 year

(191,306)

102,071

(89,235)


6,090,556
(941,018)
5,149,538

The notes on pages 17 to 33 form part of these financial statements.

Page 16

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

1.


General information

The company is a private company limited by shares, and is incorporated in England and Wales. The address of its registered office is 22 Bruton Street, London W1J 6QE.

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 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 judgement 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.

Parent company disclosure exemptions
In preparing the separate financial statements of the parent company, advantage has been taken of the following disclosure exemptions available to qualifying entities:
• Only one reconciliation of the number of shares outstanding at the beginning and end of the period
  has been presented as the reconciliations for the group and the parent company would be identical;
• No cash flow statement or net debt reconciliation has been presented for the parent company;
• Disclosures in respect of the parent company’s financial instruments have not been presented as
  equivalent disclosures have been provided in respect of the group as a whole; and
• No disclosure has been given for the aggregate remuneration of the key management personnel of
  the parent company as their remuneration is included in the totals for the group as a whole.

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.

 
2.3

Going concern

The director has, at the time of approving the financial statements, a reasonable expectation that the Group and the Company have adequate resources to continue in operational existence for a period of at least 12 months from the state of approval of these financial statements. Thus, the going concern basis of accounting has been adopted in preparing the financial statements.

Page 17

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

2.Accounting policies (continued)

 
2.4

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and the turnover can be reliably measured. Turnover 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 turnover is recognised:

Sale of goods

Turnover 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 turnover 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.

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of turnover can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.


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.

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.

Page 18

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

2.Accounting policies (continued)

 
2.6

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, using the straight-line method.

Depreciation is provided on the following basis:

Short-term leasehold property
-
Straight line over 10 years
Plant and machinery
-
20%-33% straight line
Fixtures and fittings
-
20%-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.

 
2.7

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
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 weighted average basis. Work in progress and finished goods include labour and attributable overheads.

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.

  
2.9

Debtors

Debtors are initially measured at the transaction price and are measured subsequently carried at
amortised cost using the effective interest method, less any impairment. Debtors classified as due
within one year are not amortised.

 
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 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.

Page 19

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

2.Accounting policies (continued)

 
2.11

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.

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.

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.

 
2.12

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.

 
2.13

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.

Page 20

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

2.Accounting policies (continued)

 
2.14

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP. Monetary amounts in these financial
statements are rounded to the nearest £.

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.

 
2.15

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.

 
2.16

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.17

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.

Page 21

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

2.Accounting policies (continued)

 
2.18

Pensions

Defined contribution pension plan

The Group operates a defined contribution 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.

 
2.19

Interest income

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

 
2.20

Borrowing costs

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

 
2.21

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.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The group makes estimates and assumptions concerning the future. Actual results may differ from these estimates. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Stock provision
In line with other retailers stock is physically counted at each location at the year end. The provision for old stock is based on prior years’ experience of saleability and profitability of old stock. A loss provision of has been made for the current year stock, for prior year stock and for stock older than two years. These provisions are consistent with prior years.

Page 22

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

4.


Turnover

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


2022
2021
£
£

Beachwear wholesale
8,806,511
7,490,424

Beachwear retail
6,000,223
5,629,389

Management fees
13,236
95,000

14,819,970
13,214,813


Analysis of turnover by country of destination:

2022
2021
£
£

United Kingdom
9,303,373
6,416,442

Rest of the world
5,516,597
6,798,371

14,819,970
13,214,813



5.


Other operating income

2022
2021
£
£

Royalty receivable
35,538
-

Government grants receivable - furlough
-
125,523

35,538
125,523



6.


Operating profit

The operating profit is stated after charging:

2022
2021
£
£

Exchange differences
(349,438)
236,097

Other operating lease rentals
492,170
388,041

Page 23

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

7.


Auditors' remuneration

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


2022
2021
£
£

Audit of these financial statements
8,500
8,500

Audit of financial statements of subsidiaries
22,500
23,200


8.


Employees

Staff costs, including director's remuneration, were as follows:


Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£


Wages and salaries
1,929,591
1,562,558
36,000
36,000

Social security costs
198,026
156,593
3,786
3,040

Cost of defined contribution scheme
43,621
62,681
-
-

2,171,238
1,781,832
39,786
39,040


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



Group
Group
Company
Company
        2022
        2021
        2022
        2021
            No.
            No.
            No.
            No.









Directors
2
2
1
1



Production
28
23
-
-



Administration
22
22
-
-

52
47
1
1

Page 24

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

9.


Director's remuneration

2022
2021
£
£

Director's emoluments
36,000
36,000

36,000
36,000


During the year retirement benefits were accruing to no directors (2021 - NIL) in respect of defined contribution pension schemes.


10.


Interest receivable

2022
2021
£
£


Other interest receivable
230
429


11.


Interest payable and similar expenses

2022
2021
£
£


Other loan interest payable
935
4,525

Other interest payable
-
476

935
5,001


12.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
188,763
117,219


Foreign tax on income for the year
32,032
52,027

Total current tax
220,795
169,246
Page 25

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2021 - higher 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
846,913
849,325


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
160,913
161,372

Effects of:


Non-tax deductible amortisation of goodwill and impairment
10,073
10,073

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
651
2,307

Capital allowances for year in excess of depreciation
(2,725)
955

Other timing differences
48,832
-

Different tax rates on overseas earnings
3,051
(5,461)

Total tax charge for the year
220,795
169,246


13.


Dividends

2022
2021
£
£


Dividend paid on equity capital
528,940
376,550


14.


Parent company profit for the year

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 profit after tax of the parent Company for the year was £492,618 (2021 - £256,293).

Page 26

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

15.


Intangible assets

Group





Goodwill

£



Cost


At 1 September 2021
530,136



At 31 August 2022

530,136



Amortisation


At 1 September 2021
344,590


Charge for the year on owned assets
53,014



At 31 August 2022

397,604



Net book value



At 31 August 2022
132,532



At 31 August 2021
185,546



Page 27

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

16.


Tangible fixed assets

Group






Short-term leasehold property
Plant and machinery
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 September 2021
120,954
134,182
335,801
590,937


Additions
3,270
8,679
40,708
52,657


Disposals
-
-
(24,000)
(24,000)



At 31 August 2022

124,224
142,861
352,509
619,594



Depreciation


At 1 September 2021
90,354
130,613
312,728
533,695


Charge for the year on owned assets
5,542
1,709
36,345
43,596


Disposals
-
-
(24,000)
(24,000)



At 31 August 2022

95,896
132,322
325,073
553,291



Net book value



At 31 August 2022
28,328
10,539
27,436
66,303



At 31 August 2021
30,600
3,569
23,073
57,242

Page 28

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

17.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 September 2021
1,193,174



At 31 August 2022
1,193,174





Direct subsidiary undertaking


The following was a direct subsidiary undertaking of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Avalon Fashions Limited
22 Bruton Street, London, United Kingdom, W1J 6QE
Design, manufacture and
 distribution of beachwear
Ordinary
60.16%


Indirect subsidiary undertakings


The following were indirect subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Avalon Fashions II Limited
14th Floor, 33 Cavendish Square, London, United Kingdom, W1G 0PW
Retailer of designer swimwear and beachwear
Ordinary
60.16%
Avalon Fashions LLC
19 Franklin Street, Tenafly, NJ 07670, USA
Commercial apparel designers
Ordinary
60.16%

Page 29

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

18.


Stocks

Group
Group
2022
2021
£
£

Raw materials and consumables
591,889
408,147

Finished goods and goods for resale
928,107
637,864

1,519,996
1,046,011


There is no material difference between the replacement cost of stocks and the amounts stated above. The provision reducing the carrying value of stocks to net realisable value above as at 31 August 2022 amounted to £2,076,686.


19.


Debtors

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Due after more than one year

Other debtors
57,958
57,958
-
-

57,958
57,958
-
-


Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Due within one year

Trade debtors
1,231,411
1,149,778
84,860
-

Other debtors
789,692
336,137
-
-

Prepayments and accrued income
93,095
174,737
43,434
117,760

2,114,198
1,660,652
128,294
117,760



20.


Cash and cash equivalents

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Cash at bank and in hand
5,238,773
6,281,862
267,626
245,635


Page 30

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

21.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Other loans
-
128,948
-
128,948

Trade creditors
770,140
807,959
-
-

Amounts owed to group undertakings
-
-
160,368
156,333

Corporation tax
306,682
91,767
177,270
61,498

Other taxation and social security
101,188
55,195
60,103
10,478

Other creditors
92,619
68,336
89,235
64,398

Accruals and deferred income
1,902,098
2,483,318
41,026
37,500

3,172,727
3,635,523
528,002
459,155



22.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



1 (2021 - 1) Ordinary share of £1.00
1
1



23.


Reserves

Profit and loss account

The Company's reserves of £1,061,091 (2021: £1,097,413) are all distributable. 
The Group's reserves of £3,585,565 include an amount of £206,107 relating to foreign exchange differences. The foreign exchange differences represents adjustments resulting from translation of subsidiary financial statements into the reporting currency. 


24.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administrated fund. The pension cost charge represents contributions payable by the group to the fund an amounted to £43,621 (2021: £62,681).
Contributions totalling £5,712 (2021: £4,988) were payable by the Group to the fund at the balance sheet date and are included in creditors. 

Page 31

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

25.


Commitments under operating leases

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



Group
Group
2022
2021
£
£

Not later than 1 year
403,754
387,522

Later than 1 year and not later than 5 years
1,307,859
425,109

Later than 5 years
304,038
370,500

2,015,651
1,183,131


26.


Related party transactions

Company
At the year end, a balance of £89,235 (2021: £62,358) was owed to the director. No interest was charged on this balance.
At the year end, a balance of £Nil (2021: £128,948) was owed to Talitha D, a company in which the director has a material interest. Interest of £935 (2021: £4,375) was charged on this balance. 
At the year end, a balance of £76,031 (2021: £156,333) was owed to Avalon Fashions Limited, a subsidiary.
At the year end, an accrued income balance of £43,434 (2021: £NIL) was owed from Avalon Fashions LLC, a subsidiary.
During the year interest of £4,035 (2021: £4,035) was charged by a subsidiary of the company.
During the year, consultancy fees of £652,924 (2021: £311,816) were charged to subsidiaries.
Group
At the year end, a balance of £392,056 (2021: £235,678) was owed from the director. No interest was charged on this balance. 
Remuneration to key management personnel for the year was £361,503 (2021: £356,621).


27.


Post balance sheet events

At the date on which these financial statements were approved, there had been no event that had occurred since 31 August 2022 that would have a material impact on the financial statements.

Page 32

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022

28.


Controlling party

The ultimate controlling party is the director and sole shareholder, Melissa Odabash.

 
Page 33