Company registration number 13129199 (England and Wales)
MXP PRIME PLATFORM LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
MXP PRIME PLATFORM LTD
COMPANY INFORMATION
Director
Mr P Triebel
Company number
13129199
Registered office
1 Poultry
London
EC2R 8EJ
Auditor
Ensors Accountants LLP
Connexions
159 Princes Street
Ipswich
IP1 1QJ
MXP PRIME PLATFORM LTD
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 7
Income statement
8
Group statement of comprehensive income
9
Group statement of financial position
10
Company statement of financial position
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 32
MXP PRIME PLATFORM LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The director presents the strategic report for the year ended 31 December 2022.

Review of the business

MXP Prime Platform Ltd, through its various subsidiaries, (together the “Group”) retails across a number of consumer product categories, predominantly through the Amazon marketplace platform and fulfilment network.

Principal risks and uncertainties

The fiscal year 2022 showed significant growth for the group driven by the acquisition of another large ecommerce business in the first quarter as well as being the first full year of ownership of the businesses acquired during 2021.

The year was characterized by sustained uncertainties and opportunities due to the ongoing aftermath of the global COVID-19 pandemic as well as the start of the war in the Ukraine. There has been a significant negative impact on capital markets, rising inflation, increased interest rates as well as lower consumer demand. Overall, the Group achieved a growth in revenue compared to FY21 in this challenging market and despite increased competition among aggregators and marketplace sellers.

Profitability deteriorated in the fiscal year 2022 due to increased margin pressure, supply chain disruptions, global container price spikes, continued Amazon FBA fee increases, more price and marketing competition on Amazon.

Future opportunities for the Group include consolidation in the aggregator industry, geographical expansion, channel expansion and new product launches as well as streamlining operational efficiencies.

Development and performance

Overall the Group experienced significant growth, achieved mostly inorganically, through various business acquisitions. Organic growth was driven primarily by launching new products and expansions into new geographical markets.

 

Margins came under pressure mainly due to increases in the cost of goods and the fulfillment costs charged by Amazon and 3rd party logistics providers for products storing and handling the customer orders. General supply volatility has also contributed to increases in transportation costs.

 

In the months following 31 December 2022, the global macroeconomic picture remained challenging. The impact on the financial position and results of operations is briefly described below. Despite macroeconomic headwinds, such as high rates of inflation and an increase in interest rates, the SellerX Group accomplished several milestones: it acquired Elevate Brands, completed a Series C capital raise, and restructured the terms of its debt facility.

 

The pace of acquisitions slowed down in 2023, a trend which aligned with M&A activity across all Amazon aggregators. The aggregator segment entered a consolidation phase: Suma and D1 Brands merged at the beginning of 2023, Razor Group acquired Stryze in April 2023, and the SellerX Group purchased USA-based Elevate Brands in June 2023.

 

Looking forward, the Group expects to continue to grow organically via expansions into new regions and sales channels and by introducing new products, and inorganically through business acquisitions.

On behalf of the board

Mr P Triebel
Director
12 March 2024
MXP PRIME PLATFORM LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -

The director presents his annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the company and group continued to be that of head office management of retail businesses.

Results and dividends

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

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Director

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

Mr P Triebel
Mr Malte Horeyseck
(Resigned 3 February 2022)
Mr A Blinnikov
(Appointed 3 February 2022 and resigned 6 September 2023)
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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr P Triebel
Director
12 March 2024
MXP PRIME PLATFORM LTD
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -

The director is responsible for preparing the Annual Report and the 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

MXP PRIME PLATFORM LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MXP PRIME PLATFORM LTD
- 4 -
Opinion

We have audited the financial statements of MXP Prime Platform LTD (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group 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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 and 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.

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 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.

Opinions on other matters prescribed by the Companies Act 2006

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

MXP PRIME PLATFORM LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MXP PRIME PLATFORM LTD
- 5 -
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 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:

Responsibilities of director

As explained more fully in the director's responsibilities statement, 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 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 parent company or to cease operations, or has 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.

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

MXP PRIME PLATFORM LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MXP PRIME PLATFORM LTD
- 6 -

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.

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

 

 

Our audit was designed to include tests of detail together with an assessment of the control environment to enable us to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement due to fraud. Through discussion with directors and management, and from our own knowledge of and experience of the sector in which the operates we identified the following areas where we consider there is a higher risk of fraud: revenue recognition, and management override of systems and control. We note that the client has various internal controls in place to reduce the susceptibility of the company to material misstatement due to fraud.

 

We performed audit procedures to address the risks noted above, which included the following:

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is we would become aware of non-compliance.

 

Material misstatements that arise due to fraud can be harder to detect that those that arise from error as they may involve deliberate concealment of collusion.

 

It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

 

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

MXP PRIME PLATFORM LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MXP PRIME PLATFORM LTD
- 7 -
Malcolm McGready (Senior Statutory Auditor)
For and on behalf of Ensors Accountants LLP
12 March 2024
Chartered Accountants
Statutory Auditor
Connexions
159 Princes Street
Ipswich
IP1 1QJ
MXP PRIME PLATFORM LTD
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
Year
Period
ended
ended
31 December
31 December
2022
2021
Notes
£
£
Revenue
3
55,991,126
11,554,968
Cost of sales
(47,575,287)
(7,082,276)
Gross profit
8,415,839
4,472,692
Administrative expenses
(46,765,759)
(8,623,612)
Other operating income
1,918,104
668,214
Operating loss
4
(36,431,816)
(3,482,706)
Investment income
7
16,325
56
Finance costs
8
(2,497,698)
(448,787)
Loss before taxation
(38,913,189)
(3,931,437)
Tax on loss
9
2,968,251
399,125
Loss for the financial year
(35,944,938)
(3,532,312)
Loss for the financial year is all attributable to the owners of the parent company.
MXP PRIME PLATFORM LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
Year
Period
ended
ended
31 December
31 December
2022
2021
£
£
Loss for the year
(35,944,938)
(3,532,312)
Other comprehensive income
Currency translation gain taken to retained earnings
-
0
2,057
Total comprehensive income for the year
(35,944,938)
(3,530,255)
Total comprehensive income for the year is all attributable to the owners of the parent company.
MXP PRIME PLATFORM LTD
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2022
31 December 2022
- 10 -
2022
2021
Notes
£
£
£
£
Non-current assets
Goodwill
11
26,814,297
54,778,627
Property, plant and equipment
12
78,571
106,633
26,892,868
54,885,260
Current assets
Inventories
15
8,553,198
7,210,298
Trade and other receivables
16
14,575,685
3,506,961
Cash and cash equivalents
5,846,355
4,121,497
28,975,238
14,838,756
Current liabilities
17
(95,319,949)
(66,674,752)
Net current liabilities
(66,344,711)
(51,835,996)
Total assets less current liabilities
(39,451,843)
3,049,264
Non-current liabilities
18
-
(6,571,014)
Provisions for liabilities
Deferred tax liability
8,346
8,504
(8,346)
(8,504)
Net liabilities
(39,460,189)
(3,530,254)
Equity
Called up share capital
20
1
1
Other reserves
15,003
-
0
Retained earnings
(39,475,193)
(3,530,255)
Total equity
(39,460,189)
(3,530,254)

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 12 March 2024 and are signed on its behalf by:
12 March 2024
Mr P  Triebel
Director
Company registration number 13129199 (England and Wales)
MXP PRIME PLATFORM LTD
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
31 December 2022
- 11 -
2022
2021
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
12
45,718
60,237
Investments
13
35,179,421
37,228,521
35,225,139
37,288,758
Current assets
Trade and other receivables
16
21,988,847
22,330,032
Cash and cash equivalents
530,693
261,236
22,519,540
22,591,268
Current liabilities
17
(85,419,341)
(58,958,106)
Net current liabilities
(62,899,801)
(36,366,838)
Total assets less current liabilities
(27,674,662)
921,920
Non-current liabilities
18
-
(2,499,230)
Net liabilities
(27,674,662)
(1,577,310)
Equity
Called up share capital
20
1
1
Retained earnings
(27,674,663)
(1,577,311)
Total equity
(27,674,662)
(1,577,310)

As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s loss for the year was £26,097,352 (2021 - £1,577,311 loss).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 12 March 2024 and are signed on its behalf by:
12 March 2024
Mr P  Triebel
Director
Company registration number 13129199 (England and Wales)
MXP PRIME PLATFORM LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 12 -
Share capital
Other reserves
Retained earnings
Total
Notes
£
£
£
£
Balance at 12 January 2021
-
0
-
-
0
-
Period ended 31 December 2021:
Loss for the period
-
-
(3,532,312)
(3,532,312)
Other comprehensive income:
Currency translation differences
-
-
2,057
2,057
Total comprehensive income
-
-
(3,530,255)
(3,530,255)
Issue of share capital
20
1
-
-
1
Balance at 31 December 2021
1
-
(3,530,255)
(3,530,254)
Year ended 31 December 2022:
Loss and total comprehensive income
-
-
(35,944,938)
(35,944,938)
Other reserves
-
15,003
-
15,003
Balance at 31 December 2022
1
15,003
(39,475,193)
(39,460,189)
MXP PRIME PLATFORM LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 13 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 12 January 2021
-
0
-
0
-
Period ended 31 December 2021:
Loss and total comprehensive income for the period
-
(1,577,311)
(1,577,311)
Issue of share capital
20
1
-
1
Balance at 31 December 2021
1
(1,577,311)
(1,577,310)
Year ended 31 December 2022:
Profit and total comprehensive income
-
(26,097,352)
(26,097,352)
Balance at 31 December 2022
1
(27,674,663)
(27,674,662)
MXP PRIME PLATFORM LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
15,520,006
53,579,821
Income taxes (paid)/refunded
(1,563,967)
338,232
Net cash inflow from operating activities
13,956,039
53,918,053
Investing activities
Purchase of business
(12,246,911)
(49,699,630)
Purchase of property, plant and equipment
(595)
(97,399)
Proceeds from disposal of property, plant and equipment
-
(1,642)
Interest received
16,325
56
Net cash used in investing activities
(12,231,181)
(49,798,615)
Financing activities
Proceeds from issue of shares
-
1
Net cash (used in)/generated from financing activities
-
1
Net increase in cash and cash equivalents
1,724,858
4,119,439
Cash and cash equivalents at beginning of year
4,121,497
-
0
Effect of foreign exchange rates
-
0
2,058
Cash and cash equivalents at end of year
5,846,355
4,121,497
MXP PRIME PLATFORM LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
1
Accounting policies
Company information

MXP Prime Platform LTD (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 1 Poultry, London, EC2R 8EJ .

 

The group consists of MXP Prime Platform LTD and all of its subsidiaries.

1.1
Reporting period

The comparative figures included within these financial statements are presented for a period of less than one year due to alignment with the statutory year-ends of the other companies within the group. The figures used are therefore not comparable with the current year figures, which are presented for a year.

 

1.2
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. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

MXP PRIME PLATFORM LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 16 -
1.3
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company MXP Prime Platform LTD together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2022. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group statement of financial position at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.5
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

MXP PRIME PLATFORM LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 17 -

The company has the full financial support of MXP Prime Platform GmbH. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.6
Revenue

Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is between five and fifteen years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

 

All acquisitions have been accounted for using the purchase method.

1.8
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses.

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

Plant and equipment
5 years straight-line
Fixtures and fittings
5 years straight-line
Computers
3 years straight line

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 income statement.

MXP PRIME PLATFORM LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 18 -
1.9
Non-current 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, associates and jointly controlled entities 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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.10
Impairment of non-current assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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 carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

MXP PRIME PLATFORM LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 19 -

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.

1.11
Inventories

Inventories 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 inventories to their present location and condition.

 

Inventories 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 inventories 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.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.13
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 statement of financial position 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 trade and other receivables 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, including investments in equity instruments which are not subsidiaries, associates or joint ventures, 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, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

MXP PRIME PLATFORM LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 20 -
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 trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

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

1.14
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.

1.15
Taxation

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

MXP PRIME PLATFORM LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 21 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 income statement, 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.

1.16
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 or non-current assets.

 

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.

1.17
Retirement benefits

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

1.18
Leases

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.

1.19

Exemption from audit

The following Company subsidiaries are exempt from the requirements of the Act relating to the audit of accounts under S479A of the Companies Act 2006:

 

Mighty Matcha Limited 07627165

Paddy Paw Limited NI060158

MXP PRIME PLATFORM LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 22 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is 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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Impairment and usefull economic life of goodwill

Determining whether goodwill is impaired requires an estimation of the value in use of the cash generating units to which goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the cash generating unit and a suitable discount rate in order to calculate present value.

 

To determine the useful economic life of the goodwill this requires an estimation of the period for which the entity will receive the benefits from the intangible trade relationships received.

Investments

Determining the investment value includes considering future potential consideration payments which are based on future performance. When assessing the investment value per the accounts we have taken into account the probably of the future performance obligations being met and additional consideration being due.

3
Revenue
2022
2021
£
£
Revenue analysed by class of business
Sale of goods
55,991,126
11,554,968
2022
2021
£
£
Other revenue
Interest income
16,325
56
MXP PRIME PLATFORM LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 23 -
4
Operating loss
2022
2021
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange losses/(gains)
4,071,229
(643,851)
Depreciation of owned property, plant and equipment
27,048
40,784
Loss on disposal of property, plant and equipment
2,994
1,642
Amortisation of intangible assets
8,198,313
1,528,275
Impairment of intangible assets
26,923,341
-
0
Operating lease charges
592,673
80,309
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
23,300
9,500
Audit of the financial statements of the company's subsidiaries
51,100
35,000
74,400
44,500
6
Employees

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

Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
68
44
68
35

Their aggregate remuneration comprised:

Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
5,057,698
2,215,822
4,722,186
2,199,669
Social security costs
570,966
198,937
569,034
197,180
Pension costs
174,339
70,941
169,598
70,794
5,803,003
2,485,700
5,460,818
2,467,643
MXP PRIME PLATFORM LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 24 -
7
Investment income
2022
2021
£
£
Interest income
Interest on bank deposits
1,610
55
Interest receivable from group companies
14,715
1
Total income
16,325
56
8
Finance costs
2022
2021
£
£
Interest on bank overdrafts and loans
-
23,400
Interest payable to group undertakings
2,497,665
373,102
Other interest on financial liabilities
-
23,402
Other interest
33
28,883
Total finance costs
2,497,698
448,787
9
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
37,625
239,229
Adjustments in respect of prior periods
13,030
-
0
Total current tax
50,655
239,229
Deferred tax
Origination and reversal of timing differences
(3,018,906)
(638,354)
Total tax credit
(2,968,251)
(399,125)
MXP PRIME PLATFORM LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
9
Taxation
(Continued)
- 25 -

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

2022
2021
£
£
Loss before taxation
(38,913,189)
(3,931,437)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2021: 19.00%)
(9,728,297)
(746,973)
Tax effect of expenses that are not deductible in determining taxable profit
1,139,465
(10,492)
Unutilised tax losses carried forward
2,484,207
198,048
Group relief
314,899
19,461
Amortisation on assets not qualifying for tax allowances
3,225,900
140,831
Taxation credit
(2,968,251)
(399,125)
10
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2022
2021
Notes
£
£
In respect of:
Goodwill
11
26,923,341
-
Recognised in:
Administrative expenses
26,923,341
-

The impairment losses in respect of financial assets are recognised in other gains and losses in the income statement.

MXP PRIME PLATFORM LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 26 -
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2022
56,306,902
Additions - business combinations
11,669,764
Other changes
(4,512,440)
At 31 December 2022
63,464,226
Amortisation and impairment
At 1 January 2022
1,528,275
Amortisation charged for the year
8,198,313
Impairment losses
26,923,341
At 31 December 2022
36,649,929
Carrying amount
At 31 December 2022
26,814,297
At 31 December 2021
54,778,627
The company had no intangible fixed assets at 31 December 2022 or 31 December 2021.

All acquisitions have been accounted for using the purchase method.

 

The carrying amount of goodwill for the following acquisitions are material to the financial statements:

 

Acquisitions                Carrying value        Amortisation period remaining

 

Tinyyo Limited                £17,966,728        13 years 10 months

 

H&S Alliance Limited (asset purchase)    £1,974,572        3 years 3 months

 

Stretton Online Limited            £6,047,819        4 years 2 months

More information on impairment movements in the year is given in note 10.

MXP PRIME PLATFORM LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 27 -
12
Property, plant and equipment
Group
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2022
59,395
1,273
86,749
147,417
Additions
2,294
419
(733)
1,980
Disposals
(2,294)
-
0
(3,590)
(5,884)
At 31 December 2022
59,395
1,692
82,426
143,513
Depreciation and impairment
At 1 January 2022
14,635
112
26,037
40,784
Depreciation charged in the year
12,537
702
13,809
27,048
Eliminated in respect of disposals
(658)
-
0
(2,232)
(2,890)
At 31 December 2022
26,514
814
37,614
64,942
Carrying amount
At 31 December 2022
32,881
878
44,812
78,571
At 31 December 2021
44,760
1,161
60,712
106,633
Company
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 January 2022
1,273
70,036
71,309
Additions
-
0
12,390
12,390
At 31 December 2022
1,273
82,426
83,699
Depreciation and impairment
At 1 January 2022
112
10,960
11,072
Depreciation charged in the year
255
26,654
26,909
At 31 December 2022
367
37,614
37,981
Carrying amount
At 31 December 2022
906
44,812
45,718
At 31 December 2021
1,161
59,076
60,237
MXP PRIME PLATFORM LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 28 -
13
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
35,179,421
37,228,521
Movements in non-current investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2022
37,228,521
Additions
15,118,203
Valuation changes
(626,029)
At 31 December 2022
51,720,695
Impairment
At 1 January 2022
-
Impairment losses
16,541,274
At 31 December 2022
16,541,274
Carrying amount
At 31 December 2022
35,179,421
At 31 December 2021
37,228,521
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2022 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Tinyyo Limited
1 Poultry, C/O Mxp Prime Platform Ltd, London, England, EC2R 8EJ
Ordinary A
100.00
PaddyPaw Ltd
Murray House, 4/5 Murray Street, Belfast, Northern Ireland, BT1 6DN
Ordinary
100.00
Mighty Matcha Ltd
1 Poultry, C/O Mxp Prime Platform Ltd, London, England, EC2R 8EJ
A Ordinary
100.00
Tinyyo Importers Ltd
First Floor, Penrose 1,Penrose Dock, Cork,Ireland, T23 KW81
Ordianary
100.00
SellerX One Ltd
1 Poultry, C/O Mxp Prime Platform Ltd, London, England, EC2R 8EJ
Ordinary
100.00
SellerX OpCo Ltd
1 Poultry, C/O Mxp Prime Platform Ltd, London, England, EC2R 8EJ
Ordinary
100.00
Tinyyo India Support Private Limited
99.99
Stretton Online Limited
1 Poultry, C/O Mxp Prime Platform Ltd, London, England, EC2R 8EJ
Ordinary
100.00
MXP PRIME PLATFORM LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 29 -
15
Inventories
Group
Company
2022
2021
2022
2021
£
£
£
£
Finished goods and goods for resale
8,553,198
7,210,298
-
0
-
0
16
Trade and other receivables
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade receivables
410,092
527,663
-
0
-
0
Corporation tax recoverable
1,300,766
-
0
282,146
-
0
Amounts owed by group undertakings
8,234,479
1,057,466
21,463,440
22,048,836
Other receivables
383,364
476,883
241,231
242,695
Prepayments and accrued income
939,157
806,593
2,030
38,501
11,267,858
2,868,605
21,988,847
22,330,032
Amounts falling due after more than one year:
Corporation tax recoverable
283,381
-
0
-
0
-
0
Deferred tax asset (note )
3,024,446
638,356
-
0
-
0
3,307,827
638,356
-
-
Total debtors
14,575,685
3,506,961
21,988,847
22,330,032
17
Current liabilities
Group
Company
2022
2021
2022
2021
£
£
£
£
Trade payables
434,754
1,149,560
23,607
20,996
Amounts owed to group undertakings
88,724,759
57,492,284
80,633,273
53,978,561
Corporation tax payable
7,136
568,959
-
0
-
0
Other taxation and social security
1,260,873
1,599,660
120,670
125,611
Other payables
4,200,018
5,217,531
4,153,548
4,394,598
Accruals and deferred income
692,409
646,758
488,243
438,340
95,319,949
66,674,752
85,419,341
58,958,106
MXP PRIME PLATFORM LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 30 -
18
Non-current liabilities
Group
Company
2022
2021
2022
2021
£
£
£
£
Other payables
-
0
6,571,014
-
0
2,499,230
19
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
174,339
70,941

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.

20
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
100
100
1
1
21
Acquisition of a business

On 18 March 2022 the group acquired 100% of the issued capital of Stretton Online Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
1,385
-
1,385
Inventories
1,915,369
-
1,915,369
Trade and other receivables
782,368
-
782,368
Cash and cash equivalents
694,726
-
694,726
Trade and other payables
(5)
-
(5)
Total identifiable net assets
3,393,843
-
3,393,843
Goodwill
11,524,560
Total consideration
14,918,403
MXP PRIME PLATFORM LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
21
Acquisition of a business
(Continued)
- 31 -
The consideration was satisfied by:
£
Cash
12,941,637
Deferred consideration
1,976,766
14,918,403

 

22
Financial commitments, guarantees and contingent liabilities

Loans with the parent entity, SellerX Germany GmbH requires MXP Prime Platform Limited to act as a guarantor along with the other UK subsidiary companies. The charge secured by way of fixed and floating charges and a negative pledge.

23
Operating lease commitments
Lessee

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
2022
2021
2022
2021
£
£
£
£
Within one year
153,933
360,350
153,933
360,350
153,933
360,350
153,933
360,350
24
Events after the reporting date

None to report

25
Controlling party

The ultimate controlling party is MXP Prime Platform Gmbh, and its registered office is office is Jägerstr, 41, 10117 Berlin, Germany.

MXP PRIME PLATFORM LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 32 -
26
Cash generated from group operations
2022
2021
£
£
Loss for the year after tax
(35,944,938)
(3,532,312)
Adjustments for:
Taxation credited
(2,968,251)
(399,125)
Finance costs
2,497,698
448,787
Investment income
(16,325)
(56)
Loss on disposal of property, plant and equipment
2,994
1,642
Amortisation and impairment of intangible assets
35,121,654
1,528,275
Depreciation and impairment of property, plant and equipment
27,048
40,784
Decrease in provisions
(1,976,766)
(10,843,947)
Movements in working capital:
Decrease/(increase) in inventories
572,469
(143,410)
Increase in trade and other receivables
(6,316,119)
(2,534,445)
Increase in trade and other payables
24,520,542
69,013,628
Cash generated from operations
15,520,006
53,579,821
27
Analysis of changes in net funds - group
1 January 2022
Cash flows
31 December 2022
£
£
£
Cash at bank and in hand
4,121,497
1,724,858
5,846,355
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