Company registration number 10874721 (England and Wales)
Mayoral UK Ltd
financial statements
For the year ended 31 December 2023
Mayoral UK Ltd
Contents
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 7
Mayoral UK Ltd
Balance sheet
As at 31 December 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
2,480
2,713
Current assets
Debtors
4
591,131
913,327
Cash at bank and in hand
616,721
528,637
1,207,852
1,441,964
Creditors: amounts falling due within one year
5
(495,717)
(160,176)
Net current assets
712,135
1,281,788
Total assets less current liabilities
714,615
1,284,501
Provisions for liabilities
(620)
(638)
Net assets
713,995
1,283,863
Capital and reserves
Called up share capital
100,000
100,000
Profit and loss reserves
613,995
1,183,863
Total equity
713,995
1,283,863
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 1 April 2024 and are signed on its behalf by:
Mr M D De La Maza
Director
Company Registration No. 10874721
Mayoral UK Ltd
Statement of changes in equity
For the year ended 31 December 2023
- 2 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100,000
830,271
930,271
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
353,592
353,592
Balance at 31 December 2022
100,000
1,183,863
1,283,863
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
260,132
260,132
Dividends
-
(830,000)
(830,000)
Balance at 31 December 2023
100,000
613,995
713,995
Mayoral UK Ltd
Notes to the financial statements
For the year ended 31 December 2023
- 3 -
1
Accounting policies
Company information
Mayoral UK Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 26 Cross Street, Manchester, England, M2 7AQ.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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.
1.2
Going concern
Due to market instability in the past years, we have experienced a slight drop in sales. However, as it has been observed throughout history, the economy is cyclical, and it is expected that after this period of decline there will be a recovery. Mayoral has a huge background in the country and is a well-established brand among our consumers, which is why the Company’s Directors are confident of a market recovery in the medium term. true
Up to the date of presentation of these annual accounts, there have been no significant effects on the activity of the Company and the Group and there is no material uncertainty that casts significant doubt upon the entity’s ability to continue as going concern. According to the current Estimates of the Directors, no relevant effects are estimated in the year 2023.
1.3
Turnover
Turnover 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.
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 despatch 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.
1.4
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:
Leasehold improvements
over life of lease
Fixtures and fittings
15% on cost
Computers
25% on cost
Mayoral UK Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 4 -
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 credited or charged to profit or loss.
1.5
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.
1.6
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, 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 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.
1.7
Equity instruments
Equity instruments issued by the company 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 company.
Mayoral UK Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 5 -
1.8
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 company’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 when the company has 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.
1.9
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 fixed 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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
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 leases asset are consumed.
1.12
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.
Mayoral UK Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 6 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
3
3
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2023
20,760
35,721
56,481
Additions
986
986
At 31 December 2023
20,760
36,707
57,467
Depreciation and impairment
At 1 January 2023
20,760
33,008
53,768
Depreciation charged in the year
1,219
1,219
At 31 December 2023
20,760
34,227
54,987
Carrying amount
At 31 December 2023
2,480
2,480
At 31 December 2022
2,713
2,713
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
511,092
319,013
Other debtors
80,039
594,314
591,131
913,327
Mayoral UK Ltd
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 7 -
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
389,586
68,006
Corporation tax
28,357
48,692
Other taxation and social security
1,965
1,845
Other creditors
75,809
41,633
495,717
160,176
6
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Christopher Abbott FCA
Statutory Auditor:
DJH Mitten Clarke Audit Limited
7
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
134,938
153,988
8
Parent company
The company has taken advantage of the exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
Mayoral UK Limited is a subsidiary company of ultimate parent company Indumenta Pueri S.L., Calle la Orotava, 118, Malaga 29006, Malaga, Spain, a company registered in Spain who produce consolidated financial statements for the group.