Company registration number 09049546 (England and Wales)
MONUMART LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
MONUMART LIMITED
COMPANY INFORMATION
Directors
J Liu
C A Louch
Secretary
C A Louch
Company number
09049546
Registered office
Europa House
Europa Way
Ipswich
Suffolk
IP1 5DL
Auditor
Alliotts LLP
Manfield House
1 Southampton Street
London
WC2R 0LR
MONUMART LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
MONUMART LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

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

Principal activities
Monumart Ltd is a multi-channel e-commerce retailer selling larger household items such as Home furniture, Office furniture, Pet Cages and Home Gym equipment. It operates as the exclusive distributor of the Yaheetech brand in the UK.
Fair review of the business

Despite the impact of the Ukraine war and the cost-of living crisis, sales were maintained to a similar level of that achieved in the year of the pandemic.

 

The business achieved sales of £37.32 million in the year (2022: £31.6 million), an increase of 18.1% year-on-year for the year ended March 2023. Gross profit dropped from £10.79 million to £9.69 million reflecting the lower margin on larger items.

 

The year saw freight costs shrink back to below pre pandemic levels, however this was offset by a significant increase in staff wages above the rate of inflation to encourage staff retention.

 

The company added a number of marketing platforms to its visibility and this started to bear fruit towards the end of the year. Social Media started to play a part in overall brand awareness.

 

The acquisition of two HGV cabs in the period post year end has led to significant saving in the collection and return of containers to the Port of Felixstowe going forward.

 

The additional 127,000 sq ft Yaheetech Building was finally occupied half-way through the year in September 2022, but the impact on sales this will have will only become apparent in the following financial year.

Principal risks and uncertainties

The company operates with a very large customer base and there is no reliance on any single customer. All items are prepaid before despatch by customers using platforms such as Amazon and eBay.

 

Yaheetech products are not generally of a fashion or seasonal nature, so the risk of stock obsolescence is small.

 

 

Foreign Currency Exchange Risk

 

All online sales orders are paid in GBP, but goods settlement for the freight suppliers are in USD, outside of the UK, so we have implemented global supply chain to mitigate the currency exchange risks

 

Credit Risk

 

The company’s credit risk is minimal as all goods are prepaid before dispatch.

Key performance indicators

The Director considers turnover, gross profit margin and net profitability to be the main performance indicators of the business.

 

The key financial highlights are set out below, further analysis of which by the directors is contained in the fair review of the business above.

2023
2022
2021
2020
£
£
£
£
Turnover
37,320,783
31,604,168
33,376,139
16,848,924
Turnover (reduction)/growth
18.09%
(5.31)%
98.09%
71.79%
Gross profit
9,694,158
10,793,632
10,572,813
5,472,638
Profit/(loss) before tax
760,503
(537,796)
1,852,312
212,194
MONUMART LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Other performance indicators

 

Employees

 

The company relies on the skills, experience and commitment of its staff to meet its targets. The Management team endeavour to attract and retain high-quality employees, providing them with the right tools and information to carry out their tasks. The company attaches great importance to staff welfare offering private health care to all full-time employees and other benefits.

 

Standards and business conduct

 

MonuMart Ltd complies with all applicable laws and regulations, carries out its business with integrity and honesty, in accordance with good business practices. Ethical business conduct is critical to the business. We continually review and update the company’s policies and procedures to ensure compliance.

 

On behalf of the board

C A Louch
Director
19 April 2024
MONUMART LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

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

Principal activities

The principal activity of the company continued to be that of selling goods via online platforms.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

J Liu
C A Louch
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor 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 company’s auditor 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
C A Louch
Director
19 April 2024
MONUMART LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF MONUMART LIMITED
- 4 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

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

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 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 auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

MONUMART LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MONUMART LIMITED
- 5 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

MONUMART LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MONUMART LIMITED
- 6 -
Extent to which the audit was considered captable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

 

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

 

Audit response to risks identified

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

 

 

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

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

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

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

Other matters

In the previous accounting period the directors of the company took advantage of audit exemption under s477 of the Companies Act. Therefore the prior period comparative figures were not subject to audit.

MONUMART LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MONUMART LIMITED
- 7 -

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Nicholas Nicolaou FCCA
Senior Statutory Auditor
For and on behalf of Alliotts LLP
19 April 2024
Chartered Accountants
Statutory Auditor
Manfield House
1 Southampton Street
London
WC2R 0LR
MONUMART LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
37,320,783
31,604,168
Cost of sales
(27,626,625)
(20,810,536)
Gross profit
9,694,158
10,793,632
Distribution costs
(4,625,654)
(4,923,407)
Administrative expenses
(4,442,623)
(6,436,386)
Operating profit/(loss)
4
625,881
(566,161)
Interest receivable and similar income
7
138,423
31,535
Interest payable and similar expenses
8
(3,801)
(3,170)
Profit/(loss) before taxation
760,503
(537,796)
Tax on profit/(loss)
9
(188,286)
81,134
Profit/(loss) for the financial year
572,217
(456,662)

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

MONUMART LIMITED
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
336,787
270,095
Current assets
Stocks
11
6,306,954
3,691,229
Debtors
12
5,156,649
4,909,983
Cash at bank and in hand
388,020
48,280
11,851,623
8,649,492
Creditors: amounts falling due within one year
13
(9,601,825)
(6,972,259)
Net current assets
2,249,798
1,677,233
Total assets less current liabilities
2,586,585
1,947,328
Creditors: amounts falling due after more than one year
14
(116,793)
(51,659)
Provisions for liabilities
Deferred tax liability
16
69,430
67,524
(69,430)
(67,524)
Net assets
2,400,362
1,828,145
Capital and reserves
Called up share capital
18
100
100
Profit and loss reserves
2,400,262
1,828,045
Total equity
2,400,362
1,828,145

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 19 April 2024 and are signed on its behalf by:
C A Louch
Director
Company registration number 09049546 (England and Wales)
MONUMART LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2021
100
2,284,707
2,284,807
Year ended 31 March 2022:
Loss and total comprehensive income
-
(456,662)
(456,662)
Balance at 31 March 2022
100
1,828,045
1,828,145
Year ended 31 March 2023:
Profit and total comprehensive income
-
572,217
572,217
Balance at 31 March 2023
100
2,400,262
2,400,362
MONUMART LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
259,688
2,375,612
Interest paid
(3,801)
(3,170)
Income taxes refunded/(paid)
1,304
(314,974)
Net cash inflow from operating activities
257,191
2,057,468
Investing activities
Purchase of tangible fixed assets
(171,345)
(28,000)
Proceeds from disposal of tangible fixed assets
32,238
3,250
Loans made to other entities
-
0
(2,200,000)
Interest received
138,423
17
Net cash used in investing activities
(684)
(2,224,733)
Financing activities
Payment of finance leases obligations
83,233
(29,181)
Net cash generated from/(used in) financing activities
83,233
(29,181)
Net increase/(decrease) in cash and cash equivalents
339,740
(196,446)
Cash and cash equivalents at beginning of year
48,280
244,726
Cash and cash equivalents at end of year
388,020
48,280
MONUMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
1
Accounting policies
Company information

Monumart Limited is a private company limited by shares incorporated in England and Wales. The registered office is Europa House, Europa Way, Ipswich, Suffolk, IP1 5DL.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. The directors have assessed the projected cash flows for the company for the next 12 months and are confident that they have the continued support of their bankers as well as the ability to provide personal financing if required. As a result the directors consider the going concern basis to be appropriate.true

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.

 

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.

1.4
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:

Land and buildings Leasehold
over the term of the lease
Plant and machinery
20% straight line
Fixtures, fittings & equipment
20% straight line
Computer equipment
20% straight line
Motor vehicles
25% 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 credited or charged to profit or loss.

MONUMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -
1.5
Impairment of fixed assets

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

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

 

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

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

1.6
Stocks

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

 

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

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

1.7
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.

1.8
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.

MONUMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
Basic financial assets

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

Other financial assets

Other financial assets, 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.

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 company 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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies, 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.

MONUMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities

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

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
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.

1.10
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.

MONUMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
1.11
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.

1.12
Retirement benefits

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

1.13
Leases

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

 

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

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

1.14
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.

MONUMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
2
Judgements and key sources of estimation uncertainty

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

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Inventories

Inventories are valued at the lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stock. Calculation of these provision requires judgements to be made, which includes forecasting consumer demand, the promotional, competitive and economic environment.

Tangible fixed assets

Tangible fixed assets are recorded at cost less accumulated depreciation. Judgement is required to determine whether there are indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

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.

Inventory provisioning

When considering the inventory provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability of inventory held and recent sales performance of inventory lines.

Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors.

Impairment of receivables

An estimate of the uncollectable amount of trade receivables is made when collection of the full amount is no longer probable. This determination entails evaluating the credit and liquidity position of customers and historical recovery rates.

Returns provisioning

The level of sales returns are continually assessed by management for a potential provision. In making their assessment, management consider sales return quantities of individual stock lines and whether a wider provision is required. As stock is tightly managed no provision has been made in this regard at present.

MONUMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods through online platforms
35,587,090
30,498,247
Sale of goods through wholesalers
1,733,693
1,105,921
37,320,783
31,604,168
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
37,320,783
31,604,168
2023
2022
£
£
Other revenue
Interest income
138,423
31,535
4
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Research and development costs
4,883
38,636
Fees payable to the company's auditor for the audit of the company's financial statements
38,500
28,300
Depreciation of owned tangible fixed assets
54,460
56,331
Depreciation of tangible fixed assets held under finance leases
17,955
9,526
Profit on disposal of tangible fixed assets
-
(3,250)
Operating lease charges
1,096,057
674,182
5
Employees

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

2023
2022
Number
Number
27
24
MONUMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
5
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
860,238
756,129
Social security costs
81,148
75,112
Pension costs
14,348
14,501
955,734
845,742
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
64,468
72,836
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
370
17
Other interest income
138,053
31,518
Total income
138,423
31,535
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
370
17
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
13
67
Other finance costs:
Interest on finance leases and hire purchase contracts
3,788
3,103
3,801
3,170
MONUMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
149,499
(88,731)
Adjustments in respect of prior periods
36,881
-
0
Total current tax
186,380
(88,731)
Deferred tax
Origination and reversal of timing differences
1,906
7,597
Total tax charge/(credit)
188,286
(81,134)

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

2023
2022
£
£
Profit/(loss) before taxation
760,503
(537,796)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
144,496
(102,181)
Tax effect of expenses that are not deductible in determining taxable profit
434
11,184
Tax effect of income not taxable in determining taxable profit
-
0
(5,992)
Effect of change in corporation tax rate
476
16,206
Under/(over) provided in prior years
36,881
-
0
Deferred tax adjustments in respect of prior years
476
(3,710)
Fixed asset tax timing differences
22,815
3,359
Taxation charge/(credit) for the year
205,578
(81,134)
Taxation charge/(credit) in the financial statements
188,286
(81,134)
Reconciliation - the current year tax charge does not reconcile to the above analysis.  Please review figures in the database.
17,292
-
MONUMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
10
Tangible fixed assets
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2022
110,752
132,113
243,099
10,305
28,140
524,409
Additions
9,878
120,450
14,617
-
0
26,400
171,345
Disposals
-
0
-
0
(42,450)
-
0
(2,000)
(44,450)
At 31 March 2023
120,630
252,563
215,266
10,305
52,540
651,304
Depreciation and impairment
At 1 April 2022
44,300
52,148
142,346
9,169
6,351
254,314
Depreciation charged in the year
681
29,399
33,440
573
8,322
72,415
Eliminated in respect of disposals
-
0
-
0
(10,212)
-
0
(2,000)
(12,212)
At 31 March 2023
44,981
81,547
165,574
9,742
12,673
314,517
Carrying amount
At 31 March 2023
75,649
171,016
49,692
563
39,867
336,787
At 31 March 2022
66,452
79,965
100,753
1,136
21,789
270,095

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

2023
2022
£
£
Plant and machinery
139,809
83,591
11
Stocks
2023
2022
£
£
Finished goods and goods for resale
6,306,954
3,691,229
MONUMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,764,161
2,292,528
Corporation tax recoverable
-
0
38,185
Other debtors
455,562
73,530
Prepayments and accrued income
279,435
344,502
3,499,158
2,748,745
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
1,657,491
2,161,238
Total debtors
5,156,649
4,909,983

Other debtors relates to a prepayment for roofworks on the Boss Hall warehouse that will be deducted against future rental payments. For accounting purposes, this has been treated separately as an interest bearing unsecured loan receivable from the landlord. The terms of the agreement indicate the loan is repayable over 5 years with an interest rate set at Bank of England base rate plus a margin of 4%.

13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
15
44,740
26,641
Trade creditors
294,554
1,194,390
Corporation tax
149,499
-
0
Other taxation and social security
1,847,975
582,420
Other creditors
4,709,459
2,814,029
Accruals and deferred income
2,555,598
2,354,779
9,601,825
6,972,259

Finance lease liabilities are secured against individual fixed assets purchased. Further detail is noted within the finance lease obligation note.

14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
15
116,793
51,659
MONUMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
15
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
44,740
26,641
In two to five years
116,793
51,659
161,533
78,300

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

16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
69,430
67,524
2023
Movements in the year:
£
Liability at 1 April 2022
67,524
Charge to profit or loss
1,906
Liability at 31 March 2023
69,430

The deferred tax liability set out above is expected to reverse within five years and relates to accelerated capital allowances that are expected to mature within the same period.

17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
14,348
14,501

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

MONUMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100

The company has one class of ordinary shares which carry full rights to dividends and capital distributions. Each share carries one vote.

19
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
1,108,261
1,096,057
Between two and five years
4,739,428
4,847,470
In over five years
6,117,188
7,097,433
11,964,877
13,040,960
20
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Purchases
Purchases
2023
2022
£
£
Other related parties
23,849,160
15,717,999

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
Other related parties
4,709,875
2,811,324
21
Ultimate controlling party

The ultimate controlling party is the director J. Liu by virtue of their shareholding in the company.

MONUMART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
22
Cash generated from operations
2023
2022
£
£
Profit/(loss) for the year after tax
572,217
(456,662)
Adjustments for:
Taxation charged/(credited)
188,286
(81,134)
Finance costs
3,801
3,170
Investment income
(138,423)
(31,535)
Gain on disposal of tangible fixed assets
-
(3,250)
Depreciation and impairment of tangible fixed assets
72,415
80,675
Movements in working capital:
(Increase)/decrease in stocks
(2,615,725)
469,708
Increase in debtors
(284,851)
(253,169)
Increase in creditors
2,461,968
2,647,809
Cash generated from operations
259,688
2,375,612
23
Analysis of changes in net funds/(debt)
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
48,280
339,740
388,020
Obligations under finance leases
(78,300)
(83,233)
(161,533)
(30,020)
256,507
226,487
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