Company registration number 08668744 (England and Wales)
THE MANNING IMPEX GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
THE MANNING IMPEX GROUP LIMITED
COMPANY INFORMATION
Directors
Mrs E E Cheong
Mr N A Cheong
Mr N I A Cheong
Dr M A Cheong
Company number
08668744
Registered office
Manning Impex House
2 Doman Road
Camberley
Surrey
GU15 3DF
Auditor
Gravita Audit II Limited
66 Prescot Street
London
E1 8NN
THE MANNING IMPEX GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 32
THE MANNING IMPEX GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present the strategic report for the year ended 31 March 2023.

Fair review of the business

Through the vision of Esther and Neil Cheong, Manning Impex Limited was established in 1987 and has grown to be both a pioneer and gateway for Southeast Asian foods to the UK and Irish territories. Offering a comprehensive range of over 1,000 product lines and representing a large number of category brand leaders from countries such as Thailand, Philippines, and Malaysia. Manning Impex’s tagline of ‘The Finest Quality Foods from the Far East’ embodies wholesome food products that attain or exceed world food standards for safety and hygiene, this is further ensured through strict supply chain management which is denoted by Manning Impex’s BRC rating of ‘AA’.

 

For the past 11 years the group’s future has been guided by the founders’ two sons who have continued to drive brand awareness and category penetration, resulting in excellent growth, resulting in double digit percentage growth for the past few years. With a sound and solid financial backbone, the directors ensure an unwavering foresight and strength to ensure exceptional situations such as the war in Europe, foreign exchange, high oil and gas cost and any other unforeseen factors does not restrict the group’s development and future plans. Investing heavily in IT the group is looking strong for the future, through the deployment of Sage X3, WMS, sales applications, ‘sign on glass’ and associated software packaging.

 

The Board's decision to migrate to a more modern organisation structure has meant the adoption of a new senior management layer within the business. The colleagues making up this layer have excellent track records within the business sector of operation and will bring the level of leadership and best practices which will invariably level up all aspects of operations and allow efficiencies to be deployed.

 

Sustainability in both in modern trade and traditional trade channels have seen positive returns and gains even through dramatic episodes when the ‘Big 5’ retailers were rationalising ranges. The move to partner with major ‘Bricks and Mortar’ retailers has been a proven winner and the subsequent alliance with major online retailers has returned similar healthy results. The move to build relationships with the online food retailers has mirrored the ‘Bricks and Mortar’ stores.

 

Maintaining a strict control on overheads and outgoings has resulted in a lean and mean operation with investment spend benefiting the group’s day to day practices. Foreign exchange protective mechanisms ensure a viable and sustainable pricing policy for all categories of business dealings. Business partners for agency brands are an integral aspect of the business and whether it is face to face meetings in the Far East or video conferencing, joint business plans are derived, adapted, and monitored during a 12-month cycle.

 

New Loon Moon Limited was operating a recognised and respected retail store in Chinatown but the shop was disposed by an 'asset sale agreement' a few years ago which resulted in the subsidiary being left in a dormant state until such time as the environment improves and potential trading opportunities arise.

Principal risks and uncertainties

Risk is everywhere and sometimes arrives uninvited, e.g., the war in Europe and the Windsor Framework. Nonetheless, the group has been leading the elements of safety both for products supplied and personnel. Through continued colleague training, monitoring of regulatory and legal framework changes, the group ensures an eye is always kept on the weather gauge. With strong banking partners the group has also built up a resilience towards unfavourable winds and backed up with effective credit, liquidity, overhead and market risk strategies and plans.

 

Interest rate risk

The group finances its operations through a mixture of borrowings and overdraft facilities. Re-financing has given the group far more control over the level of credit and risk that it is exposed to.

 

Currency risk

The group has been exposed to extreme foreign currency fluctuations in the past and with the current change at Prime Minister level of Government this layers on deep uncertainty. The majority of the imports are from Southeast Asia and are mainly invoiced in US dollars and to some extent Singapore dollars, Thai Bhat, and Japanese Yen. The group manages its currency risk with a number of controls including forward contracts, crash analysis and constant monitoring. This is regarded as a key performance indicator and is highly monitored. The Chief Finance Officer has partnered with alternate business partners to deploy a new foreign exchange strategy.

THE MANNING IMPEX GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Credit risk

The group has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit that is reassessed regularly by the finance department.

 

Liquidity risk

Cautious liquidity management entails the maintenance of sufficient reserves of cash and the availability of sufficient credit facilities, to ensure that there are available funds to carry on operations and any planned expansions. Constant crash tests and forecasts are put together to manage this risk.

 

Price risk

The group is exposed to commodity price risk as a result of its operations. However, given the size of the group's operations, the costs of managing exposure to commodity price risk exceed any potential benefits.

 

Development and performance

The directors see a positive future and solid returns on investments for the coming years and whilst strengthening its internal core future expansion will continue to be at the forefront.

Key performance indicators

Manning Impex Limited has been in the fortunate position to perform within expectations, including:

Turnover: within expectations

Stock write-downs: within expectations

Wages and salaries: within expectations

Foreign exchange gains and losses: within expectations

Overheads: within expectations

Environmental and health taxes: within expectations

Net returns: within expectations

Debt turnaround days: within expectations

 

New Loon Moon Limited has remained in a non-trading position after the disposal of the shop.

Important events occuring since the year end

The prolonged war in Europe, the change of Prime Minister, the Windsor Framework, the cost of living crisis, high oil and gas costs, weakened GBP, raising interest rates and a possible recession may affect the company negatively. However, the company would be able to benefit from the stronger sales team, stronger importation team and the capitalisation of new markets by sales teams. And there will be internal cost efficiency drives after the implementation of the new systems.

Promoting the success of the group

The purpose of this report is to inform the members of the group and help them to assess how the Directors have performed their duties under s172 of the Companies Act 2006, in promoting the success of the group.

 

The directors have performed their duties under s172 with regard to their responsibility to members of the group and wider stakeholder interests.

On behalf of the board

Mr N I A Cheong
Director
15 November 2023
THE MANNING IMPEX GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

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

Principal activities

The principal activity of the group during the year continued to be the wholesaler and retailer of food goods.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £221,760. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mrs E E Cheong
Mr N A Cheong
Mr N I A Cheong
Dr M A Cheong
Auditor

In accordance with the company's articles, a resolution proposing that Gravita Audit II Limited be reappointed as auditor of the group will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

THE MANNING IMPEX GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
On behalf of the board
Mr N I A Cheong
Dr M A Cheong
Director
Director
15 November 2023
THE MANNING IMPEX GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE MANNING IMPEX GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of The Manning Impex Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty relating to going concern

We draw attention to note 1.3 in the financial statements, which states that the group is reliant on the renewal of a revolving credit facility with Bangkok Bank which amounts to US$7,000,000, equivalent to £5,661,598 at the reporting date. The facility is usually renewed on an annual basis and is due for renewal on 30 November 2023. As at the date of signing these financial statements, the group has yet to receive confirmation that the facility will be renewed.

As stated in note 1.3, these events or conditions, along with other matters as set forth in note 1.3, indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

THE MANNING IMPEX GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE MANNING IMPEX GROUP LIMITED
- 6 -
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 their 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 auditor's 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.

We ensured that the engagement team collectively had the appropriate competence, capabilities, and skills to identify or recognise non-compliance with applicable laws and regulations. The laws and regulations applicable to the group were identified through discussions with directors and other management, and from our commercial knowledge and experience of the food and retail sectors.

 

Of these laws and regulations, we focused on those that we considered may have a direct material effect on the financial statements or the operations of the group, including the Companies Act 2006, food, fire, health and safety, water quality, taxation, data protection, anti-bribery, anti-money-laundering and employment legislations. The extent of compliance with these laws and regulations identified above was assessed through making enquiries of management and inspecting legal correspondence. The identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. 

THE MANNING IMPEX GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE MANNING IMPEX GROUP LIMITED
- 7 -

We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: 

 

To address the risk of fraud through management bias and override of controls, we: 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: 

There are inherent limitations in our audit procedures described above. The more removed those laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the parent company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent company’s members those matters we are required to state to them in an auditor's 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Luke Metson (Senior Statutory Auditor)
For and on behalf of Gravita Audit II Limited
27 November 2023
Chartered Accountants
Statutory Auditor
66 Prescot Street
London
E1 8NN
THE MANNING IMPEX GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
25,025,591
27,250,173
Cost of sales
(20,770,980)
(20,432,910)
Gross profit
4,254,611
6,817,263
Distribution costs
(589,892)
(735,155)
Administrative expenses
(4,638,831)
(3,868,283)
Other operating income
27,276
94,790
Operating (loss)/profit
4
(946,836)
2,308,615
Interest receivable and similar income
8
756
34
Interest payable and similar expenses
9
(276,453)
(116,763)
Profit/(loss) on disposal of operations
-
32,455
(Loss)/profit before taxation
(1,222,533)
2,224,341
Tax on (loss)/profit
10
269,035
(380,289)
(Loss)/profit for the financial year
(953,498)
1,844,052
Other comprehensive income
Revaluation of tangible fixed assets
961,893
-
0
Tax relating to other comprehensive income
(252,973)
-
0
Total comprehensive income for the year
(244,578)
1,844,052
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

THE MANNING IMPEX GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
4,247,134
3,383,417
Current assets
Stocks
16
8,359,194
8,294,864
Debtors
17
3,882,456
3,252,475
Cash at bank and in hand
2,124,932
2,290,238
14,366,582
13,837,577
Creditors: amounts falling due within one year
18
(10,138,518)
(8,378,172)
Net current assets
4,228,064
5,459,405
Total assets less current liabilities
8,475,198
8,842,822
Creditors: amounts falling due after more than one year
19
(760,382)
(929,168)
Provisions for liabilities
Deferred tax liability
22
267,500
-
0
(267,500)
-
Net assets
7,447,316
7,913,654
Capital and reserves
Called up share capital
24
10,000
10,000
Revaluation reserve
758,920
50,000
Merger relief reserve
15,100
15,100
Profit and loss reserves
6,663,296
7,838,554
Total equity
7,447,316
7,913,654
The financial statements were approved by the board of directors and authorised for issue on 15 November 2023 and are signed on its behalf by:
15 November 2023
Mr N I A Cheong
Dr M A Cheong
Director
Director
THE MANNING IMPEX GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
10,000
10,000
Current assets
Debtors
17
47,348
60,264
Net current assets
47,348
60,264
Total assets less current liabilities
57,348
70,264
Creditors: amounts falling due after more than one year
19
(47,348)
(60,264)
Net assets
10,000
10,000
Capital and reserves
Called up share capital
24
10,000
10,000

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £221,760 (2022 - £215,760 profit).

The financial statements were approved by the board of directors and authorised for issue on 15 November 2023 and are signed on its behalf by:
15 November 2023
Mr N I A Cheong
Dr M A Cheong
Director
Director
Company registration number 08668744 (England and Wales)
THE MANNING IMPEX GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
Share capital
Revaluation reserve
Merger relief reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2021
10,000
50,000
15,100
6,210,262
6,285,362
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
-
1,844,052
1,844,052
Dividends
11
-
-
-
(215,760)
(215,760)
Balance at 31 March 2022
10,000
50,000
15,100
7,838,554
7,913,654
Year ended 31 March 2023:
Loss for the year
-
-
-
(953,498)
(953,498)
Other comprehensive income:
Revaluation of tangible fixed assets
-
961,893
-
-
961,893
Tax relating to other comprehensive income
-
(252,973)
-
-
0
(252,973)
Total comprehensive income for the year
-
708,920
-
(953,498)
(244,578)
Dividends
11
-
-
-
(221,760)
(221,760)
Balance at 31 March 2023
10,000
758,920
15,100
6,663,296
7,447,316
THE MANNING IMPEX GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2021
10,000
-
0
10,000
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
215,760
215,760
Dividends
11
-
(215,760)
(215,760)
Balance at 31 March 2022
10,000
-
0
10,000
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
221,760
221,760
Dividends
11
-
(221,760)
(221,760)
Balance at 31 March 2023
10,000
-
0
10,000
THE MANNING IMPEX GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
29
(358,189)
(865,350)
Interest paid
(268,690)
(116,763)
Income taxes paid
(322,930)
(302,454)
Net cash outflow from operating activities
(949,809)
(1,284,567)
Investing activities
Proceeds from disposal of business
-
32,455
Purchase of tangible fixed assets
(36,041)
(138,591)
Proceeds from disposal of tangible fixed assets
33,731
63,544
Interest received
756
34
Net cash used in investing activities
(1,554)
(42,558)
Financing activities
Proceeds from borrowings
-
37,056
Repayment of borrowings
(12,916)
(78,500)
Proceeds from new bank loans
1,048,044
2,608,549
Repayment of bank loans
(451,584)
(1,202,261)
Proceeds from derivatives
477,525
-
Purchase of derivatives
-
(432,866)
Payment of finance leases obligations
(56,981)
(17,348)
Dividends paid to equity shareholders
(221,760)
(215,760)
Net cash generated from financing activities
782,328
698,870
Net decrease in cash and cash equivalents
(169,035)
(628,255)
Cash and cash equivalents at beginning of year
2,290,238
2,918,493
Cash and cash equivalents at end of year
2,121,203
2,290,238
Relating to:
Cash at bank and in hand
2,124,932
2,290,238
Bank overdrafts included in creditors payable within one year
(3,729)
-
THE MANNING IMPEX GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
28
12,916
(37,056)
Investing activities
Dividends received
221,760
215,760
Net cash generated from investing activities
221,760
215,760
Financing activities
Proceeds from borrowings
-
0
37,056
Repayment of borrowings
(12,916)
-
Dividends paid to equity shareholders
(221,760)
(215,760)
Net cash used in financing activities
(234,676)
(178,704)
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
-
0
-
0
THE MANNING IMPEX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
1
Accounting policies
Company information

The Manning Impex Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Manning Impex House, 2 Doman Road, Camberley, Surrey, GU15 3DF.

 

The group consists of The Manning Impex Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated financial statements incorporate those of The Manning Impex Group Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries are consolidated using the merger accounting method, as permitted by section 19.29 of FRS 102.

 

All financial statements are made up to 31 March 2023.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

These financial statements are prepared on the going concern basis, as the directors have a reasonable expectation that the group will continue in operational existence for the foreseeable future.

The group has a revolving credit facility with Bangkok Bank which amounts to US$7,000,000, equivalent to £5,661,598 at the reporting date. The facility is renewed on an annual basis and is due for renewal on 30 November 2023. As at the date of signing these financial statements, the group has yet to receive confirmation that the facility will be renewed however, Bangkok Bank have asked the directors to commence the facility renewal process, which has historically been concluded in the month preceding the renewal date.

The facility has been in place for several years and has always been renewed. The group has not been in breach of any of the covenants in relation to this facility and expects the facility to be renewed. However, should the facility not be renewed, the group does not have sufficient liquid resources to repay the facility.

The directors are therefore aware of certain material uncertainties which may cause doubt on the group's ability to continue as a going concern, should the facility not be renewed. However, the directors continue to adopt the going concern basis of accounting in preparing these financial statements, which do not reflect any adjustments that would be necessary if the facility was not renewed.

THE MANNING IMPEX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
1.4
Turnover

Turnover is recognised at the fair value of the consideration receivable for goods provided in the normal course of business and is shown net of VAT. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the licence of trade marks is recognised based on a contractually specified percentage of sales of the products over the contract period.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
Land is non-depreciatable and property is depreciated over 50 years
Plant and machinery
25% on cost and 20% on cost dependent upon trade
Fixtures and fittings
25% on cost and 20% on cost dependent upon trade
Computer equipment
25% on cost
Motor vehicles
20% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.6
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

THE MANNING IMPEX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss.

THE MANNING IMPEX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

THE MANNING IMPEX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

THE MANNING IMPEX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -
1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. 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.

 

The general areas for which estimation has been applied are considered to be in calculating depreciation and the useful economic life of assets, provision for bad debts and stock write offs. The valuation of freehold property is of material consequence.

 

Management recognised the freehold property at a market value obtained from a firm of chartered surveyors. The valuation was performed in October 2022 and management estimated the split of land and buildings to be £2,050,000 each. Management estimated that the residual value of the buildings would be £Nil and so have depreciated the depreciable element over its remaining useful life.

 

The company utilises forward currency contracts which are used to manage fluctuations in foreign exchange rates, as they deal extensively in foreign currencies. The period end fair value exposure, as valued by the exchange providers, was a creditor of £348,131 (2022: debtor of £129,394).

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sale of goods
25,025,591
27,250,173
2023
2022
£
£
Turnover analysed by geographical market
UK sales
22,545,194
25,534,915
EU sales
2,480,397
1,715,258
25,025,591
27,250,173
THE MANNING IMPEX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
3
Turnover and other revenue
(Continued)
- 21 -
2023
2022
£
£
Other revenue
Interest income
756
34
Royalty income
26,764
6,579
Grants received
-
59,257
4
Operating (loss)/profit
2023
2022
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
848,368
(513,809)
Government grants
-
(59,257)
Depreciation of owned tangible fixed assets
106,330
116,158
Depreciation of tangible fixed assets held under finance leases
16,615
18,202
Profit on disposal of tangible fixed assets
(22,459)
(750)
Operating lease charges
74,418
52,705
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company's subsidiaries
30,625
29,925
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Administration
22
31
-
-
Distribution
30
27
-
-
Management
9
8
-
-
Director
4
4
-
-
65
70
-
0
-
0
THE MANNING IMPEX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
6
Employees
(Continued)
- 22 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,287,727
2,395,881
-
0
-
0
Social security costs
234,041
230,234
-
-
Pension costs
47,766
49,669
-
0
-
0
2,569,534
2,675,784
-
0
-
0

 

7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
239,320
235,153
Company pension contributions to defined contribution schemes
1,800
1,800
241,120
236,953
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
100,000
97,917
Company pension contributions to defined contribution schemes
1,800
1,800

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
756
34
Interest on financial assets not measured at fair value through profit or loss
756
34
THE MANNING IMPEX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
268,487
112,442
Other finance costs:
Interest on finance leases and hire purchase contracts
3,270
4,140
Other interest
4,696
181
Total finance costs
276,453
116,763
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
417,514
Adjustments in respect of prior periods
(6,665)
(37,225)
Total current tax
(6,665)
380,289
Deferred tax
Origination and reversal of timing differences
(262,370)
-
0
Total tax (credit)/charge
(269,035)
380,289

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
(Loss)/profit before taxation
(1,222,533)
2,224,341
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(229,895)
422,625
Tax effect of expenses that are not deductible in determining taxable profit
18,221
28,658
Gains not taxable
-
0
(7,528)
Unutilised tax losses carried forward
210,442
-
0
Adjustments in respect of prior years
(6,665)
(37,225)
Permanent capital allowances in excess of depreciation
444
(28,665)
Balancing charges
-
0
6,061
Finance lease allowable depreciation
-
0
(4,649)
Non-allowable percentage of leased cars
788
1,012
Other timing differences
(262,370)
-
0
Taxation (credit)/charge
(269,035)
380,289
THE MANNING IMPEX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
10
Taxation
(Continued)
- 24 -

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2023
2022
£
£
Deferred tax arising on:
Revaluation of property
252,973
-
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
221,760
215,760
12
Tangible fixed assets
Group
Freehold land and buildings
Plant and machinery
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 April 2022
3,252,666
463,381
82,740
213,614
56,060
4,068,461
Additions
12,000
3,781
1,692
18,568
-
0
36,041
Disposals
-
0
(30,324)
(16,413)
(55,590)
(56,060)
(158,387)
Revaluation
835,334
-
0
-
0
-
0
-
0
835,334
At 31 March 2023
4,100,000
436,838
68,019
176,592
-
0
4,781,449
Depreciation and impairment
At 1 April 2022
97,296
356,684
45,533
145,355
40,176
685,044
Depreciation charged in the year
55,749
27,242
10,204
25,078
4,672
122,945
Eliminated in respect of disposals
-
0
(30,307)
(16,395)
(55,565)
(44,848)
(147,115)
Revaluation
(126,559)
-
0
-
0
-
0
-
0
(126,559)
At 31 March 2023
26,486
353,619
39,342
114,868
-
0
534,315
Carrying amount
At 31 March 2023
4,073,514
83,219
28,677
61,724
-
0
4,247,134
At 31 March 2022
3,155,370
106,697
37,207
68,259
15,884
3,383,417
The company had no tangible fixed assets at 31 March 2023 or 31 March 2022.
THE MANNING IMPEX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
12
Tangible fixed assets
(Continued)
- 25 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and machinery
26,122
27,362
-
0
-
0
Motor vehicles
-
0
15,884
-
0
-
0
Computer equipment
1
2,375
-
0
-
0
26,123
45,621
-
-

Freehold property with a carrying amount of £4,073,514 (2022 - £3,155,370) have been pledged to secure borrowings of the group. The group is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

Freehold property with a carrying amount of £4,073,514 (2022 - £3,155,370), which includes incidentals and improvements, was valued at £4,100,000 on 25 October 2022 by Vail Williams, an independent valuer, on an open market basis. The valuation conformed to Valuation Standards and was based on market transactions on arm's length terms, for similar properties.

13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
10,000
10,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022 and 31 March 2023
10,000
Carrying amount
At 31 March 2023
10,000
At 31 March 2022
10,000
14
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Manning Impex Limited
See below
Ordinary
100.00
New Loon Moon Limited
See below
Ordinary
100.00
THE MANNING IMPEX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
14
Subsidiaries
(Continued)
- 26 -

New Loon Moon Limited was exempt from audit by virtue of section 479A of the Companies Act 2006 for the year ended 31 March 2023.

The registered office address of all of the group companies is the same as the parent company's registered office address.

15
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
-
129,394
-
-
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities
348,131
-
-
-
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
8,359,194
8,294,864
-
0
-
0
THE MANNING IMPEX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,666,820
2,328,589
-
0
-
0
Corporation tax recoverable
55,529
-
0
-
0
-
0
Derivative financial instruments
-
129,394
-
-
Other debtors
381,673
331,960
-
0
-
0
Prepayments and accrued income
501,537
406,598
-
0
-
0
3,605,559
3,196,541
-
-
Amounts falling due after more than one year:
Amounts owed by group undertakings
-
-
47,348
60,264
Other debtors
-
0
55,934
-
0
-
0
-
55,934
47,348
60,264
Deferred tax asset (note 22)
276,897
-
0
-
0
-
0
276,897
55,934
47,348
60,264
Total debtors
3,882,456
3,252,475
47,348
60,264
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
5,087,996
4,346,012
-
0
-
0
Obligations under finance leases
21
14,076
53,712
-
0
-
0
Trade creditors
4,066,267
3,014,317
-
0
-
0
Corporation tax payable
-
0
269,573
-
0
-
0
Other taxation and social security
54,803
42,663
-
-
Derivative financial instruments
348,131
-
0
-
0
-
0
Other creditors
40,227
9,590
-
0
-
0
Accruals and deferred income
527,018
642,305
-
0
-
0
10,138,518
8,378,172
-
0
-
0
THE MANNING IMPEX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
268,826
410,621
-
0
-
0
Obligations under finance leases
21
30,101
44,176
-
0
-
0
Other borrowings
20
461,455
474,371
47,348
60,264
760,382
929,168
47,348
60,264
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
5,353,093
4,756,633
-
0
-
0
Bank overdrafts
3,729
-
0
-
0
-
0
Other loans
461,455
474,371
47,348
60,264
5,818,277
5,231,004
47,348
60,264
Payable within one year
5,087,996
4,346,012
-
0
-
0
Payable after one year
730,281
884,992
47,348
60,264

The bank facilities are secured by the following:

1) A first legal charge over the freehold property at 2 Doman Road, Camberley, Surrey, GU15 3DF of Manning Impex Limited.

2) A corporate guarantee by the company.

3) A corporate guarantee by New Loon Moon Limited.

4) A personal guarantee by Mr N I A Cheong and Dr M A Cheong.

5) A debenture from Manning Impex Limited.

6) A debenture from New Loon Moon Limited.

Bank loans include a monthly instalment loan to be matured in January 2025, another monthly instalment loan to be matured in February 2027, and trade financing facilities to be renewed annually.

 

Other loans are amounts due to directors which are interest free, unsecured and payable after 12 months from the reporting date.

THE MANNING IMPEX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
16,146
56,981
-
0
-
0
In two to five years
32,813
49,328
-
0
-
0
48,959
106,309
-
-
Less: future finance charges
(4,782)
(8,421)
-
0
-
0
44,177
97,888
-
0
-
0

Finance lease payments represent rentals payable by the company for certain items of plant and equipment and computer equipment. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

22
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Capital allowances
15,295
-
-
-
Tax losses
-
-
276,897
-
Revaluations
252,973
-
-
-
Others
(768)
-
-
-
267,500
-
276,897
-
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 April 2022
-
-
Credit to profit or loss
(262,370)
-
Charge to other comprehensive income
252,973
-
Asset at 31 March 2023
(9,397)
-
THE MANNING IMPEX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
22
Deferred taxation
(Continued)
- 30 -

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits. The deferred tax liability set out above relates to capital allowances and revaluations of freehold property and are expected to reverse over the remaining useful lives of the associated fixed assets.

23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
47,766
49,669

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,000
10,000
10,000
10,000

All ordinary shares rank pari passu.

25
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the company for the warehouse and motor vehicles that it leases. It relates to multiple leases, which have different terms. At the reporting date all leases expire within two years.

 

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
302,679
725,968
-
-
Between two and five years
40,660
317,014
-
-
343,339
1,042,982
-
-
THE MANNING IMPEX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
26
Directors' transactions

Dividends totalling £221,760 (2022 - £215,760) were paid in the year in respect of shares held by the company's directors.

At the reporting date the group companies owed the directors £474,371 (2022 - £414,107). The amounts are interest-free, unsecured and repayable in not less than twelve months.

 

There is a security over the bank borrowings in the form of personal guarantees from two of the directors, Mr N I A Cheong and Dr M A Cheong.

27
Controlling party

The company is owned equally by Mr N I A Cheong and Dr M A Cheong. There is no ultimate controlling party in the financial period.

28
Cash generated from/(absorbed by) operations - company
2023
2022
£
£
Profit for the year after tax
221,760
215,760
Adjustments for:
Investment income
(221,760)
(215,760)
Movements in working capital:
Decrease/(increase) in debtors
12,916
(37,056)
Cash generated from/(absorbed by) operations
12,916
(37,056)
29
Cash absorbed by group operations
2023
2022
£
£
(Loss)/profit for the year after tax
(953,498)
1,844,052
Adjustments for:
Taxation (credited)/charged
(269,035)
380,289
Finance costs
276,453
116,763
Investment income
(756)
(34)
Gain on disposal of tangible fixed assets
(22,459)
(750)
Gain on disposal of business
-
(32,455)
Depreciation and impairment of tangible fixed assets
122,945
134,360
Decrease in provisions
-
(235,668)
Movements in working capital:
Increase in stocks
(64,330)
(2,663,383)
Increase in debtors
(426,949)
(873,222)
Increase in creditors
979,440
464,698
Cash absorbed by operations
(358,189)
(865,350)
THE MANNING IMPEX GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 32 -
30
Analysis of changes in net debt - group
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
2,290,238
(165,306)
2,124,932
Bank overdrafts
-
0
(3,729)
(3,729)
2,290,238
(169,035)
2,121,203
Borrowings excluding overdrafts
(5,231,004)
(583,544)
(5,814,548)
Obligations under finance leases
(97,888)
53,711
(44,177)
(3,038,654)
(698,868)
(3,737,522)
31
Analysis of changes in net debt - company
1 April 2022
Cash flows
31 March 2023
£
£
£
Borrowings excluding overdrafts
(60,264)
12,916
(47,348)
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