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Registered number: 12451069
















MARATHON COLLECTIVE LIMITED




ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023
































MARATHON COLLECTIVE LIMITED

 
COMPANY INFORMATION


DIRECTORS
Y Borgne 
J Le Bris 




REGISTERED NUMBER
12451069



REGISTERED OFFICE
27 Commercial Road

London

N18 1TP




INDEPENDENT AUDITORS
Bishop Fleming LLP
Chartered Accountants & Statutory Auditors

10 Temple Back

Bristol

BS1 6FL






MARATHON COLLECTIVE LIMITED


CONTENTS



Page
Group strategic report
 
1
Directors' report
 
2
Directors' responsibilities statement
 
3
Independent auditors' report
 
4 - 7
Consolidated statement of comprehensive income
 
8
Consolidated statement of financial position
 
9
Company statement of financial position
 
10
Consolidated statement of changes in equity
 
11
Company statement of changes in equity
 
12
Consolidated statement of cash flows
 
13
Consolidated analysis of net debt
 
14
Notes to the financial statements
 
15 - 26


MARATHON COLLECTIVE LIMITED

 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

INTRODUCTION
 
The directors present their Strategic report and business review, which includes the principal risks and uncertainties of the business, key performance indicators and future developments.

BUSINESS REVIEW
 
The group is engaged in the importation of Cypriot, Greek and other Mediterranean food and drinks for distribution in to the UK market.  The group has a mixed sales base including larger distributors, wholesalers as well as independent ethnic retailers and restaurants.
Following a year of great success and record results in the previous period, the year in review has seen some challenges across the market continuing from the covid pandemic and the UK cost of living crisis as well as quality of supply.  This resulted in a reduction in revenue from £22,192,814 to £12,519,296 and profit after tax of £2,235,810 to £575,072.
Despite the challenges in the market and the overall drop in financial performance the company remains resilient and with inflation cooling, the company is ready to capitalise on future opportunities.

PRINCIPAL RISKS AND UNCERTAINTIES
 
The management team continually review, monitor and evaluate the risks the company is facing with a range of formal processes including, weekly sales reviews, monthly management reviews, quarterly forecasting and quarterly board meetings.
Cost of living crisis
Beginning in 2022 but continuing through 2023, the UK economy has been subject to significant inflationary pressures due to a combination of factors including rising food and energy costs.  The group itself has been impacted by inflationary pressures and as a result has had no option but to increase selling prices. Overall consumer demand has remained strong, but the company has seen a change in it’s sales mix as customers move towards cheaper alternatives, as they face pressure on household incomes and budgets. 
Moving forward the group continues to monitor trading forecasts on a regular basis to analyse changing demand by product and by customer. The group continues to reflect the change in consumers behaviours in its product offering holding a diverse range of products to suit customers and mitigate the impact.
Credit risk
The group’s credit risk is primarily attributable to its trade debtors. Credit risk is managed by running credit checks on new customers, and for a limited number of customers the company has protection against the default of those debts by using a credit insurer.

FINANCIAL KEY PERFORMANCE INDICATORS
 
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This report was approved by the board on 4 April 2024 and signed on its behalf.


Y Borgne
Director
Page 1


MARATHON COLLECTIVE LIMITED

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

RESULTS AND DIVIDENDS

The profit for the year, after taxation, amounted to £575,072 (2022: £2,235,810).

DIRECTORS

The directors who served during the year were:

Y Borgne 
J Le Bris 

FUTURE DEVELOPMENTS

Following quality issues with the group’s largest Halloumi supplier, the company took the decision to move to new suppliers which, like the company, have a culture focused on product quality.  Whilst the impact on the group’s financial performance may be negative in the short term, the board were aligned on this decision for the future of the group.
As such, the group has set out new plans to the board for the coming years.  These have also been used to assess the going concern of the business.

DISCLOSURE OF INFORMATION TO AUDITORS

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

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

POST BALANCE SHEET EVENTS

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

AUDITORS

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

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






Y Borgne
Director

Date: 4 April 2024

27 Commercial Road
London
N18 1TP
Page 2


MARATHON COLLECTIVE LIMITED

 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors are responsible for preparing the Group Strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:

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

make judgments and accounting estimates that are reasonable and prudent; and 


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

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

Page 3


MARATHON COLLECTIVE LIMITED

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARATHON COLLECTIVE LIMITED
OPINION


We have audited the financial statements of Marathon Collective Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the consolidated Analysis of Net Debt, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2023 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


BASIS FOR OPINION


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


CONCLUSIONS RELATING TO GOING CONCERN


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors 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 Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 4


MARATHON COLLECTIVE LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARATHON COLLECTIVE LIMITED (CONTINUED)

OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
 

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


the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


RESPONSIBILITIES OF DIRECTORS
 

As explained more fully in the Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations, we have considered the following:
The nature of the industry and sector, control environment and business performance;
Results of our enquiries of management and directors in relation to their own identification and assessment of the risks of irregularities within the Company; and 
Page 5


MARATHON COLLECTIVE LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARATHON COLLECTIVE LIMITED (CONTINUED)

Any matters we identified having obtained and reviewed the Company's documentation and their policies and procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.

As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in relation to revenue recognition. In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override.
We have also obtained an understanding of the legal and regulatory frameworks that the company operates in, focussing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures wihtin the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and UK tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance within may be fundamental for the Company's ability to operate or avoid a material penalty. These included food hygiene legislation, health and safety regulations, employment legislation and data protection laws.
Our audit procedures performed to respond to the risks identified included, but were not limited to:
Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
Reviewing the financial statement disclosures and testing to supporting documentation to assess the recognition of revenue;
Challenging assumptions and judgements made by management in their significant accounting estimates;
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
Reviewing board minutes; and 
Identifying and testing journal entries, evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. 

We also communicated relevant laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-complinace with laws and regulations throughout the audit. 
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less liekly we would become aware of it.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


USE OF OUR REPORT
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.


Page 6


MARATHON COLLECTIVE LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARATHON COLLECTIVE LIMITED (CONTINUED)





Craig Sullivan FCCA (Senior statutory auditor)
for and on behalf of
Bishop Fleming LLP
Chartered Accountants
Statutory Auditors
10 Temple Back
Bristol
BS1 6FL

5 April 2024
Page 7


MARATHON COLLECTIVE LIMITED

 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
12,519,296
22,192,814

Cost of sales
  
(10,533,805)
(18,513,257)

Gross profit
  
1,985,491
3,679,557

Administrative expenses
  
(1,194,488)
(931,554)

Operating profit
 5 
791,003
2,748,003

Interest payable and similar expenses
 8 
(8,083)
-

Profit before taxation
  
782,920
2,748,003

Tax on profit
 9 
(207,848)
(512,193)

Profit for the financial year
  
575,072
2,235,810

  

Total comprehensive income for the year
  
575,072
2,235,810

  

  

The notes on pages 15 to 26 form part of these financial statements.

Page 8


MARATHON COLLECTIVE LIMITED
REGISTERED NUMBER:12451069

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 10 
75,838
88,726

  
75,838
88,726

Current assets
  

Stocks
 12 
1,659,646
2,440,420

Debtors: amounts falling due within one year
 13 
896,050
4,552,837

Cash at bank and in hand
 14 
4,313,210
1,371,859

  
6,868,906
8,365,116

Creditors: amounts falling due within one year
 15 
(376,972)
(2,457,817)

Net current assets
  
 
 
6,491,934
 
 
5,907,299

Total assets less current liabilities
  
6,567,772
5,996,025

Provisions for liabilities
  

Deferred tax
  
(18,857)
(22,182)

  
 
 
(18,857)
 
 
(22,182)

Net assets
  
6,548,915
5,973,843


Capital and reserves
  

Called up share capital 
 17 
3,500,100
3,500,100

Merger reserve
  
(3,499,998)
(3,499,998)

Profit and loss account
  
6,548,813
5,973,741

  
6,548,915
5,973,843


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 





Y Borgne
Director

Date: 4 April 2024

The notes on pages 15 to 26 form part of these financial statements.
Page 9


MARATHON COLLECTIVE LIMITED
REGISTERED NUMBER:12451069

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 11 
3,500,000
3,500,000

  
3,500,000
3,500,000

Current assets
  

Debtors: amounts falling due within one year
 13 
100
100

Cash at bank and in hand
 14 
6,037
6,133

  
6,137
6,233

Creditors: amounts falling due within one year
 15 
(6,057)
(6,153)

Net current assets
  
 
 
80
 
 
80

Total assets less current liabilities
  
3,500,080
3,500,080

  

  

Net assets
  
3,500,080
3,500,080


Capital and reserves
  

Called up share capital 
 17 
3,500,100
3,500,100

Profit and loss account carried forward
  
(20)
(20)

  
3,500,080
3,500,080


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 





Y Borgne
Director

Date: 4 April 2024

The notes on pages 15 to 26 form part of these financial statements.
Page 10


MARATHON COLLECTIVE LIMITED


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Merger reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
3,500,100
(3,499,998)
3,737,931
3,738,033


Comprehensive income for the year

Profit for the year
-
-
2,235,810
2,235,810
Total comprehensive income for the year
-
-
2,235,810
2,235,810



At 1 January 2023
3,500,100
(3,499,998)
5,973,741
5,973,843


Comprehensive income for the year

Profit for the year
-
-
575,072
575,072


At 31 December 2023
3,500,100
(3,499,998)
6,548,813
6,548,915


The notes on pages 15 to 26 form part of these financial statements.
Page 11


MARATHON COLLECTIVE LIMITED


COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
3,500,100
(20)
3,500,080
Total comprehensive income for the year
-
-
-



At 1 January 2023
3,500,100
(20)
3,500,080
Total comprehensive income for the year
-
-
-


At 31 December 2023
3,500,100
(20)
3,500,080


The notes on pages 15 to 26 form part of these financial statements.
Page 12


MARATHON COLLECTIVE LIMITED


CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
575,072
2,235,810

Adjustments for:

Depreciation of tangible assets
20,091
20,134

Loss on disposal of tangible assets
342
-

Interest paid
8,083
-

Taxation charge
207,848
512,193

Decrease/(increase) in stocks
780,874
(814,882)

(Increase)/decrease in debtors
(108,032)
704,756

Decrease/(increase) in amounts owed by groups
4,004,773
(3,843,661)

(Decrease)/increase in creditors
(1,481,207)
1,011,365

Corporation tax (paid)
(1,050,865)
(22,182)

Net cash generated from operating activities

2,956,979
(196,467)


Cash flows from investing activities

Purchase of tangible fixed assets
(7,545)
(51,162)

Net cash from investing activities

(7,545)
(51,162)

Cash flows from financing activities

Interest paid
(8,083)
-

Net cash used in financing activities
(8,083)
-

Net increase/(decrease) in cash and cash equivalents
2,941,351
(247,629)

Cash and cash equivalents at beginning of year
1,371,859
1,619,488

Cash and cash equivalents at the end of year
4,313,210
1,371,859


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
4,313,210
1,371,859

4,313,210
1,371,859


The notes on pages 15 to 26 form part of these financial statements.

Page 13


MARATHON COLLECTIVE LIMITED


CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

1,371,859

2,941,351

4,313,210



1,371,859
2,941,351
4,313,210

The notes on pages 15 to 26 form part of these financial statements.
Page 14


MARATHON COLLECTIVE LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


GENERAL INFORMATION

Marathon Collective Limited is a Company limited by shares incorporated in England and Wales. The registered office is 27 Commercial Road, London, United Kingdom, N18 1TP.

2.ACCOUNTING POLICIES

 
2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

  
2.2

FINANCIAL REPORTING STANDARD 102- REDUCED DISCLOSURE EXEMPTIONS

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
 
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 ther Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.



 
2.3

BASIS OF CONSOLIDATION

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 15


MARATHON COLLECTIVE LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (continued)

 
2.4

FOREIGN CURRENCY TRANSLATION

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.5

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.
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.

 
2.6

OPERATING LEASES: THE GROUP AS LESSEE

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

FINANCE COSTS

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 16


MARATHON COLLECTIVE LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (continued)

 
2.8

PENSIONS

DEFINED CONTRIBUTION PENSION PLAN

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.

 
2.9

CURRENT AND DEFERRED TAXATION

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.10

TANGIBLE FIXED ASSETS

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 17


MARATHON COLLECTIVE LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (continued)


2.10
TANGIBLE FIXED ASSETS (CONTINUED)

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

Depreciation is provided on the following basis:

Plant and machinery
-
20%
reducing balance
Motor vehicles
-
25%
reducing balance
Fixtures and fittings
-
15%
reducing balance
Computer equipment
-
3
years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

VALUATION OF INVESTMENTS

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.12

STOCKS

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.13

DEBTORS

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.14

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.15

CREDITORS

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 18


MARATHON COLLECTIVE LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (continued)

 
2.16

PROVISIONS FOR LIABILITIES

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.


 
2.17

FINANCIAL INSTRUMENTS

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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, 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Page 19


MARATHON COLLECTIVE LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.



JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of the estimation means that actual outcomes could differ from those estimates. Whilst there is a level of assumption on these judgements, the director feels these are unlikely to have a significant effect on, or cause material error to the amounts recognised in the financial statements.
The following are key areas of the accounts which require the use of management estimates and judgements:
Stock provision
Managements view is that there is no requirement for a stock provision due to the length in life of the products and use by dates and sell by dates. Whilst there is a degree of uncertainty around this estimate managment view this as a prudent approach when calculating the value of stock at the year end.


4.


TURNOVER

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


2023
2022
£
£

Sales
12,519,296
22,192,814

12,519,296
22,192,814


All turnover arose within the United Kingdom.


5.


OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023
2022
£
£

Exchange differences
54,642
(127,949)

Other operating lease rentals
-
2,740


6.


AUDITORS' REMUNERATION

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
24,375
24,200

Page 20


MARATHON COLLECTIVE LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


EMPLOYEES

Staff costs were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
529,703
493,712
-
-

Social security costs
45,454
45,470
-
-

Cost of defined contribution scheme
9,603
8,665
-
-

584,760
547,847
-
-


The Group and Company have no employees other than the directors, who did not receive any remuneration (2022: £NIL).


8.


INTEREST PAYABLE AND SIMILAR EXPENSES

2023
2022
£
£


Other interest payable
8,083
-

8,083
-


9.


TAXATION


2023
2022
£
£

CORPORATION TAX


Current tax on profits for the year
187,326
490,011

Adjustments in respect of previous periods
23,845
-


211,171
490,011


TOTAL CURRENT TAX
211,171
490,011

DEFERRED TAX


Origination and reversal of timing differences
(2,835)
22,182

Changes to tax rates
(488)
-

TOTAL DEFERRED TAX
(3,323)
22,182


TAX ON PROFIT
207,848
512,193
Page 21


MARATHON COLLECTIVE LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
9.TAXATION (CONTINUED)


FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax assessed for the year is higher than (2022: lower than) the standard rate of corporation tax in the UK of 23.52% (2022: 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
782,920
2,748,003


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022: 19%)
184,228
522,121

EFFECTS OF:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
431
114

Capital allowances for year in excess of depreciation
-
(2,916)

Adjustments to tax charge in respect of prior periods
23,357
-

Remeasurement of deferred tax for changes in tax rates
(168)
16,115

Other differences leading to an increase (decrease) in the tax charge
-
(23,241)

TOTAL TAX CHARGE FOR THE YEAR
207,848
512,193


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There were no factors that may affect future tax charges.



Page 22


MARATHON COLLECTIVE LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


TANGIBLE FIXED ASSETS

Group






Plant and machinery
Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£



COST


At 1 January 2023
123,564
101,537
78,074
941
304,116


Additions
4,900
-
1,650
995
7,545


Disposals
-
(398)
-
-
(398)



At 31 December 2023

128,464
101,139
79,724
1,936
311,263



DEPRECIATION


At 1 January 2023
101,071
59,053
55,089
177
215,390


Charge for the year on owned assets
4,580
10,894
3,946
671
20,091


Disposals
-
(56)
-
-
(56)



At 31 December 2023

105,651
69,891
59,035
848
235,425



NET BOOK VALUE



At 31 December 2023
22,813
31,248
20,689
1,088
75,838



At 31 December 2022
22,493
42,484
22,985
764
88,726


11.


FIXED ASSET INVESTMENTS

Company





Investments in subsidiary companies

£



COST


At 1 January 2023
3,500,000



At 31 December 2023
3,500,000




Page 23


MARATHON COLLECTIVE LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

SUBSIDIARY UNDERTAKING


The following was a subsidiary undertaking of the Company:

Name

Class of shares

Holding

Marathon Food Ltd
Ordinary
100%

The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the year ended on that date for the subsidiary undertaking was as follows:

Name
Profit/(Loss)

Marathon Food Ltd
575,072


12.


STOCKS

Group
Group
2023
2022
£
£

Finished goods and goods for resale
1,659,646
2,440,420

1,659,646
2,440,420


The difference between purchase price or production cost of stocks and their replacement cost is not material.


13.


DEBTORS

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
733,082
549,737
-
-

Amounts owed by group undertakings
-
3,843,661
-
-

Other debtors
82,949
782
100
100

Prepayments and accrued income
80,019
158,657
-
-

896,050
4,552,837
100
100



14.


CASH AND CASH EQUIVALENTS

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
4,313,210
1,371,859
6,037
6,133

4,313,210
1,371,859
6,037
6,133


Page 24


MARATHON COLLECTIVE LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
153,639
1,296,544
-
-

Amounts owed to group undertakings
161,112
-
6,057
6,153

Corporation tax
-
760,750
-
-

Other taxation and social security
20,998
31,440
-
-

Other creditors
-
9,396
-
-

Accruals and deferred income
41,223
359,687
-
-

376,972
2,457,817
6,057
6,153



16.


DEFERRED TAXATION


Group



2023


£






At beginning of year
(22,182)


Charged to profit or loss
3,325



AT END OF YEAR
(18,857)

Company


2023






AT END OF YEAR
-



Group
Group
2023
2022
£
£

Accelerated capital allowances
(18,857)
(22,182)

(18,857)
(22,182)
Page 25


MARATHON COLLECTIVE LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


SHARE CAPITAL

2023
2022
£
£
ALLOTTED, CALLED UP AND PARTLY PAID



3,500,100 (2022: 3,500,100) Ordinary shares of £1.00 each
3,500,100
3,500,100



18.


RESERVES

Merger Reserve

The merger reserve represents the estimated value of the subsidiary acquired in the previous years less the issued share capital at the time.

Profit and loss account

This reserve includes all current retained profits and losses. All are considered to be distributable.


19.


PENSION COMMITMENTS

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £9,603 (2022: £8,665). Contributions totalling £1,840 (2022: £Nil) were payable to the fund at the reporting date and are included in creditors.


20.


COMMITMENTS UNDER OPERATING LEASES

At 31 December 2023 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
GROUP
£
£


Not later than 1 year
160,000
160,000

Later than 1 year and not later than 5 years
320,000
480,000

480,000
640,000


21.


RELATED PARTY TRANSACTIONS

The company has taken advantage of the exemption included within FRS102 s33.1A not to disclose transactions with other wholly owned members of the group.


22.


PARENT UNDERTAKING

The immediate parent undertaking is Laita incorporated in France. 
The ultimate controlling party is Compagnie Laita, 4 Rue Becquerel, Brest, France, 29200. A company registered in France.

Page 26