Company Registration No. 02017417 (England and Wales)
ANDREW MARTIN INTERNATIONAL LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ANDREW MARTIN INTERNATIONAL LIMITED
COMPANY INFORMATION
Directors
M C Waller
J Dilley
E Haslam
M Durbridge
J Krumins
(Appointed 20 May 2024)
Secretary
Dentons Secretaries Limited
Company number
02017417
Registered office
190-196 Walton Street
London
SW3 2JL
Auditor
Beavis Morgan Audit Limited
82 St John Street
London
EC1M 4JN
Bankers
Barclays Bank plc
8 George Street
Richmond
Surrey
TW9 1JU
HSBC Bank plc
74 Goswell Road
London
EC1V 7DA
ANDREW MARTIN INTERNATIONAL LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 31
ANDREW MARTIN INTERNATIONAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

Sales are both retail and wholesale made through the group's showrooms website and through its expanding network of interior designers. The group's products are also exported worldwide. Turnover increased in the year to £23,905,009 (2022: £21,879,987). The parent’s subsidiary in the US did not trade during the current year or preceding period.

 

The trading profit for the year to 31 December 2023, before taxation and exceptional items, amounted to £1,575,063 (2022: £808,599).

 

Corporate strategy continues to prioritise increasing company size through growth in revenue and profitability, with particular focus around turnover. Following the success of a significant review, cost savings combined with operational efficiencies are allowing the company to deliver the core product to its customers better than ever before. Despite the initial boom in furniture sales during Covid, the company has continued to grow post-pandemic and the objective in 2024 will be to continue on the path of sustainable growth despite wider market challenges.

Principal risks and uncertainties

The principal risk and uncertainty facing the group is the threat of a continued global economic downturn, particularly in Europe, which could in turn put pressure on the group's ability to achieve its objectives. Like many businesses the key risk is customer retention and development as well as maintaining the quality of products. In order to mitigate this risk the group strives to maintain high levels of quality merchandise and customer service.

Treasury management and financial instruments

The group operates a central treasury function which is primarily responsible for managing cash balances and foreign currency risks. We have little exposure to foreign currency fluctuations as we buy and sell in Euros and Dollars.

The group seeks to specifically manage financial risk, to ensure sufficient liquidity is available to meet foreseeable needs as and when they fall due. Liquid resources are managed to ensure cash assets are invested safely and profitably.

The group has no significant concentrations of credit risk. The group operates a policy that requires appropriate credit checks on potential customers before credit sales commence.

On behalf of the board

J Krumins
Director
2 August 2024
ANDREW MARTIN INTERNATIONAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Principal activities
The principal activity of the group continued to be that of design and distribution of fine fabrics and furniture.
Results and dividends

The results for the year are set out on page 7.

The directors have not recommended the payment of a dividend for the year (2022: £nil).

Directors

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

M C Waller
J Dilley
E Haslam
M Durbridge
J Krumins
(Appointed 20 May 2024)
M Rosamond
(Resigned 20 May 2024)
Future developments

Likely future developments in the business are discussed in the strategic report.

Statement of directors' responsibilities

The directors are responsible for preparing the directors' and strategic reports and the annual 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 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 and then apply them consistently;

- make judgements and accounting estimates that are reasonable and prudent;

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company 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 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 auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

ANDREW MARTIN INTERNATIONAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
On behalf of the board
J Krumins
Director
2 August 2024
ANDREW MARTIN INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ANDREW MARTIN INTERNATIONAL LIMITED
- 4 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the 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:

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

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

Auditor's responsibilities for the audit of the financial statements

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

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

ANDREW MARTIN INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ANDREW MARTIN INTERNATIONAL LIMITED
- 6 -
Capability of the audit in detecting irregularities, including fraud

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the group.

 

The following laws and regulations were identified as being of significance to the group:

 

 

 

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

 

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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

Use of our report

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

Matthew Burge (Senior Statutory Auditor)
For and on behalf of Beavis Morgan Audit Limited
2 August 2024
Chartered Accountants
Statutory Auditor
82 St John Street
London
EC1M 4JN
ANDREW MARTIN INTERNATIONAL LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
23,905,009
21,879,987
Cost of sales
(12,159,371)
(11,027,490)
Gross profit
11,745,638
10,852,497
Distribution costs
(2,077,309)
(2,032,292)
Administrative expenses
(8,127,543)
(7,959,053)
Exceptional item
4
(304,612)
(199,457)
Operating profit
5
1,236,174
661,695
Interest receivable and similar income
9
87,064
4,014
Interest payable and similar expenses
10
(52,787)
(56,567)
Profit before taxation
1,270,451
609,142
Tax on profit
11
(89,867)
(43,945)
Profit for the financial period
1,180,584
565,197
Profit for the financial period is attributable to:
- Owners of the parent company
1,084,746
472,213
- Non-controlling interests
95,838
92,984
1,180,584
565,197

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

ANDREW MARTIN INTERNATIONAL LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
£
£
Profit for the period
1,180,584
565,197
Other comprehensive income
-
-
Total comprehensive income for the period
1,180,584
565,197
Total comprehensive income for the period is attributable to:
- Owners of the parent company
1,084,746
472,213
- Non-controlling interests
95,838
92,984
1,180,584
565,197
ANDREW MARTIN INTERNATIONAL LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
18,798
21,224
Other intangible assets
12
341,782
297,942
Total intangible assets
360,580
319,166
Tangible assets
13
1,669,475
1,669,027
2,030,055
1,988,193
Current assets
Stocks
16
4,327,225
4,625,497
Debtors
17
3,384,397
2,244,023
Cash at bank and in hand
2,253,369
3,076,568
9,964,991
9,946,088
Creditors: amounts falling due within one year
18
(4,768,295)
(5,697,897)
Net current assets
5,196,696
4,248,191
Total assets less current liabilities
7,226,751
6,236,384
Creditors: amounts falling due after more than one year
19
(468,109)
(618,160)
Provisions for liabilities
22
(3,066)
(11,230)
Net assets
6,755,576
5,606,994
Capital and reserves
Called up share capital
24
47,064
47,064
Share premium account
25
2,419,042
2,419,042
Profit and loss reserves
4,194,791
3,022,079
Equity attributable to owners of the parent company
6,660,897
5,488,185
Non-controlling interests
94,679
118,809
6,755,576
5,606,994
The financial statements were approved by the board of directors and authorised for issue on 2 August 2024 and are signed on its behalf by:
02 August 2024
J Krumins
Director
ANDREW MARTIN INTERNATIONAL LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
341,782
297,942
Tangible assets
13
1,545,034
1,609,918
Investments
14
110,000
110,000
1,996,816
2,017,860
Current assets
Stocks
16
4,155,405
4,427,000
Debtors
17
3,205,937
2,164,595
Cash at bank and in hand
1,966,761
2,734,499
9,328,103
9,326,094
Creditors: amounts falling due within one year
18
(4,479,808)
(5,295,503)
Net current assets
4,848,295
4,030,591
Total assets less current liabilities
6,845,111
6,048,451
Creditors: amounts falling due after more than one year
19
(436,390)
(595,153)
Net assets
6,408,721
5,453,298
Capital and reserves
Called up share capital
24
47,064
47,064
Share premium account
25
2,419,042
2,419,042
Profit and loss reserves
3,942,615
2,987,192
Total equity
6,408,721
5,453,298

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company's profit for the year was £955,423 (2022: £397,856).

The financial statements were approved by the board of directors and authorised for issue on 2 August 2024 and are signed on its behalf by:
02 August 2024
J Krumins
Director
Company registration number 02017417 (England and Wales)
ANDREW MARTIN INTERNATIONAL LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
£
Balance at 1 January 2022
47,064
2,419,042
2,580,866
5,046,972
74,825
5,121,797
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
472,213
472,213
92,984
565,197
Dividends
-
-
-
-
(80,000)
(80,000)
Reallocations and transfers
-
-
(31,000)
(31,000)
31,000
-
Balance at 31 December 2022
47,064
2,419,042
3,022,079
5,488,185
118,809
5,606,994
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
1,084,746
1,084,746
95,838
1,180,584
Other movements
-
-
-
-
(32,000)
(32,000)
Balance at 31 December 2023
47,064
2,419,042
4,194,791
6,660,897
94,679
6,755,576
ANDREW MARTIN INTERNATIONAL LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
47,064
2,419,042
2,589,336
5,055,442
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
397,856
397,856
Balance at 31 December 2022
47,064
2,419,042
2,987,192
5,453,298
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
955,423
955,423
Balance at 31 December 2023
47,064
2,419,042
3,942,615
6,408,721
ANDREW MARTIN INTERNATIONAL LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
29
(264,743)
235,263
Interest paid
(52,787)
(56,567)
Income taxes paid
(37,491)
(25,532)
Net cash (outflow)/inflow from operating activities
(355,021)
153,164
Investing activities
Purchase of intangible assets
(131,031)
(111,503)
Purchase of tangible fixed assets
(184,778)
(205,090)
Proceeds from disposal of tangible fixed assets
11,000
-
Repayment of loans
-
43,096
Interest received
87,064
4,014
Net cash used in investing activities
(217,745)
(269,483)
Financing activities
Repayment of bank loans
(218,433)
(304,736)
Dividends paid to equity shareholders
(32,000)
(80,000)
Net cash used in financing activities
(250,433)
(384,736)
Net decrease in cash and cash equivalents
(823,199)
(501,055)
Cash and cash equivalents at beginning of year
3,076,568
3,577,623
Cash and cash equivalents at end of year
2,253,369
3,076,568
ANDREW MARTIN INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

Andrew Martin International Limited (“the company”) is a limited company domiciled and incorporated in England and Wales. The registered office is 190-196 Walton Street, London, SW3 2JL.

 

The group in the current year and previous year consisted of Andrew Martin International Limited and its two subsidiaries Sofa-Icon Limited and AMITX LLC. AMITX LLC was dissolved in March 2023.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention modified to include the revaluation of freehold properties to their fair values. The principal accounting policies adopted are set out below.

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

 

Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Andrew Martin International Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

1.3
Going concern

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

1.4
Turnover

Turnover comprises amounts receivable for goods and services, net of VAT. Turnover is recognised when the product has been delivered or the service provided, respectively.

ANDREW MARTIN INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

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

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation 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:

Website and software
25% reducing balance
1.7
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 freehold
not depreciated
Land and buildings leasehold
over the period of the lease
Fixtures, fittings & equipment
25% reducing balance
Motor vehicles
25% reducing balance

Freehold land and buildings are carried at fair value determined annually by the directors with reference to periodic external valuations. No depreciation is provided. Changes in fair value are reported in other comprehensive income and accumulated in equity.

 

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

1.8
Fixed asset investments

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

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

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible fixed 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).

ANDREW MARTIN INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset 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 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 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.

1.10
Stocks

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

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.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held 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.

1.12
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 balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

ANDREW MARTIN INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, 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 receipts 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, and are classified as current liabilities.

Derecognition of financial liabilities

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

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received.

1.14
Taxation

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

Current tax

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

ANDREW MARTIN INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
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.

 

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

1.16
Retirement benefits

The group operates a defined contribution pension scheme. The amounts payable in the year were equal to the amounts paid.

1.17
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 and loss on a straight line basis over the term of the relevant lease.

1.18
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the profit and loss account.
2
Judgements and key sources of estimation uncertainty

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

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. These would be in respect of the estimated useful life of fixed assets, the valuation of the freehold property and provisions against debtors and stock.

ANDREW MARTIN INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
Fabric
3,386,713
3,383,084
Furniture
20,518,296
18,496,903
23,905,009
21,879,987
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
21,305,028
18,743,057
United States of America
820,992
700,528
Europe
1,196,807
1,343,953
Rest of the world
582,182
1,092,449
23,905,009
21,879,987
2023
2022
£
£
Other revenue
Interest income
87,064
4,014
4
Exceptional item
2023
2022
£
£
Expenditure
Cash loss due to fraud
226,166
199,457
Tax due on old share options
78,446
-
304,612
199,457

Following the cash loss due to fraud in 2023, the directors enhanced the company’s controls around payments to vendors.

 

ANDREW MARTIN INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
5
Operating profit
2023
2022
£
£
Operating profit for the period is stated after charging:
Depreciation of owned tangible fixed assets
185,479
163,557
Loss on disposal of tangible fixed assets
16,894
-
Amortisation of intangible assets
89,617
83,374
Operating lease charges
1,609,901
1,340,192
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
18,000
17,150
7
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Sales and warehouse staff
81
76
48
48
Administration staff
12
11
9
9
Total
93
87
57
57

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,513,016
3,035,551
2,488,823
2,361,238
Social security costs
364,592
358,023
272,877
278,493
Pension costs
96,478
132,328
56,734
108,451
3,974,086
3,525,902
2,818,434
2,748,182
ANDREW MARTIN INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
553,658
551,290
Company pension contributions to defined contribution schemes
11,256
10,815
564,914
562,105

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
274,900
274,900
Company pension contributions to defined contribution schemes
2,815
2,815
9
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
86,964
4,014
Other interest income
100
-
Total income
87,064
4,014
10
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
52,760
56,567
Interest on finance leases and hire purchase contracts
27
-
Total finance costs
52,787
56,567
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
98,032
37,492
Adjustments in respect of prior periods
-
0
(1,367)
Total current tax
98,032
36,125
ANDREW MARTIN INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Taxation
2023
2022
£
£
(Continued)
- 22 -
Deferred tax
Origination and reversal of timing differences
(8,165)
7,820
Total tax charge
89,867
43,945

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

2023
2022
£
£
Profit before taxation
1,270,451
609,142
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
317,613
115,737
Tax effect of expenses that are not deductible in determining taxable profit
75,237
14,577
Tax effect of income not taxable in determining taxable profit
(7,527)
-
0
Tax effect of utilisation of unrecognised tax losses
(299,757)
(77,229)
Permanent capital allowances in excess of depreciation
-
0
(8,416)
Other permanent differences
39
(724)
Deferred tax adjustments in respect of prior years
18,397
-
0
Tax at marginal rate
(14,135)
-
0
Taxation charge
89,867
43,945

The company has approximately £576,382 (2022: £1,838,716) of tax losses to carry forward to offset against future trading profits.

12
Intangible fixed assets
Group
Goodwill
Website and software
Total
£
£
£
Cost
At 1 January 2023
24,257
406,950
431,207
Additions
-
0
131,031
131,031
At 31 December 2023
24,257
537,981
562,238
Amortisation and impairment
At 1 January 2023
3,033
109,008
112,041
Amortisation charged for the year
2,426
87,191
89,617
At 31 December 2023
5,459
196,199
201,658
ANDREW MARTIN INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Intangible fixed assets
(Continued)
- 23 -
Carrying amount
At 31 December 2023
18,798
341,782
360,580
At 31 December 2022
21,224
297,942
319,166
Company
Website and software
£
Cost
At 1 January 2023
406,950
Additions
131,031
At 31 December 2023
537,981
Amortisation and impairment
At 1 January 2023
109,008
Amortisation charged for the year
87,191
At 31 December 2023
196,199
Carrying amount
At 31 December 2023
341,782
At 31 December 2022
297,942
ANDREW MARTIN INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
13
Tangible fixed assets
Group
Land and buildings freehold
Land and buildings leasehold
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost/valuation
At 1 January 2023
890,150
201,507
1,398,852
20,290
2,510,799
Additions
-
0
54,980
122,842
36,000
213,822
Disposals
-
0
-
0
(48,849)
(33,000)
(81,849)
Other adjustments
-
0
-
0
4,717
33,000
37,717
At 31 December 2023
890,150
256,487
1,477,562
56,290
2,680,489
Depreciation and impairment
At 1 January 2023
-
0
39,490
790,606
11,676
841,772
Depreciation charged in the year
-
0
14,354
161,076
10,049
185,479
Eliminated in respect of disposals
-
0
-
0
(40,141)
(13,814)
(53,955)
Other adjustments
-
0
-
0
30,299
7,419
37,718
At 31 December 2023
-
0
53,844
941,840
15,330
1,011,014
Carrying amount
At 31 December 2023
890,150
202,643
535,722
40,960
1,669,475
At 31 December 2022
890,150
162,017
608,246
8,614
1,669,027
Company
Land and buildings freehold
Land and buildings leasehold
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost/valuation
At 1 January 2023
890,150
201,507
1,326,447
20,290
2,438,394
Additions
-
0
-
0
109,066
-
0
109,066
Disposals
-
0
-
0
(48,849)
-
0
(48,849)
At 31 December 2023
890,150
201,507
1,386,664
20,290
2,498,611
Depreciation and impairment
At 1 January 2023
-
0
39,490
777,310
11,676
828,476
Depreciation charged in the year
-
0
12,699
150,389
2,154
165,242
Eliminated in respect of disposals
-
0
-
0
(40,141)
-
0
(40,141)
At 31 December 2023
-
0
52,189
887,558
13,830
953,577
Carrying amount
At 31 December 2023
890,150
149,318
499,106
6,460
1,545,034
At 31 December 2022
890,150
162,017
549,137
8,614
1,609,918
ANDREW MARTIN INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Tangible fixed assets
(Continued)
- 25 -

Freehold land and buildings were valued on a fair value basis on 7 September 2021 by Bruton Knowles LLP, an independent firm of Chartered Surveyors. The directors believe the current valuation of £890,150 to be a materially appropriate reflection of the fair value as at 31 December 2023.

14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
110,000
110,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
110,000
Carrying amount
At 31 December 2023
110,000
At 31 December 2022
110,000
15
Subsidiaries

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

Name of undertaking
Address
Class of
% Held
shares held
Direct
Sofa-Icon Limited
1
Ordinary
51.00

Registered office addresses (all UK unless otherwise indicated):

1
14c Western Avenue, Bridgend Industrial Estate, Bridgend CF31 3RT

The following subsidiaries are exempt from the requirements of the UK Companies Act 2006 relating to the audit of individual accounts by virtue of section 479A of the Act.

 

Registered number    Company

 

05735303        Sofa-Icon Limited

16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
4,327,225
4,625,497
4,155,405
4,427,000
ANDREW MARTIN INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
617,434
951,971
483,621
870,256
Amount due from parent undertaking
1,577,600
-
0
1,577,600
-
0
Amounts due from subsidiary undertakings
-
0
-
0
-
0
40,000
Other debtors
290,981
377,250
274,801
377,250
Prepayments and accrued income
898,382
914,802
869,915
877,089
3,384,397
2,244,023
3,205,937
2,164,595
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
20
168,741
219,551
158,721
208,391
Obligations under finance leases
21
11,472
-
0
-
0
-
0
Trade creditors
2,371,470
2,819,549
2,277,066
2,459,452
Amounts owed to group undertakings
345,778
510,756
394,154
730,145
Corporation tax payable
98,032
37,492
-
0
-
0
Other taxation and social security
164,030
144,358
81,528
74,215
Other creditors
306,568
280,762
280,146
137,871
Accruals and deferred income
1,302,204
1,685,429
1,288,193
1,685,429
4,768,295
5,697,897
4,479,808
5,295,503
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
20
450,537
618,160
436,390
595,153
Obligations under finance leases
21
17,572
-
0
-
0
-
0
468,109
618,160
436,390
595,153
ANDREW MARTIN INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
619,278
837,711
595,111
803,544
Payable within one year
168,741
219,551
158,721
208,391
Payable after one year
450,537
618,160
436,390
595,153

Bank loans include a balance of £160,111 due to HSBC Bank Plc, which is secured by fixed and floating charges over the assets of the company, with interest charged at a fixed rate of 4.26%.

 

Bank loans also include a balance of £435,000 due to HSBC Bank Plc under the Coronavirus Business Interruption Loan Scheme. The loan is secured by fixed and floating charges over the assets of the company, with interest charged at 3.99% above bank base rate after the first 12 months.

 

Bank loans also include a balance of £24,167 due to Lloyds Bank Plc under the Coronavirus Business Interruption Loan Scheme. The loan is secured by fixed and floating charges over the assets of the subsidiary Sofa-Icon Limited, with interest charged at 3.99% above bank base rate after the first 12 months.

21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
11,472
-
0
-
0
-
0
In two to five years
17,572
-
0
-
0
-
0
29,044
-
-
-
22
Deferred taxation

Deferred tax assets and liabilities are offset only where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
3,066
11,230
The company has no deferred tax assets or liabilities.
ANDREW MARTIN INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Deferred taxation
(Continued)
- 28 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
11,230
-
Credit to profit or loss
(8,164)
-
Liability at 31 December 2023
3,066
-

The deferred tax liability set out above relates to accelerated capital allowances on fixed assets within a subsidiary undertaking. These are expected to reverse in future periods when assets are either sold or become fully depreciated.

23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
96,478
132,328

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

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
4,706,401
4,706,401
47,064
47,064
25
Share premium account
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning and end of the year
2,419,042
2,419,042
2,419,042
2,419,042
ANDREW MARTIN INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
26
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
1,232,217
1,150,498
1,174,217
1,150,498
Between two and five years
4,184,042
4,014,008
3,952,042
4,014,008
In over five years
2,046,118
2,747,368
1,843,118
2,747,368
7,462,377
7,911,874
6,969,377
7,911,874
27
Controlling party

At 31 December 2023, the immediate parent undertaking is Halo Properties Limited, a company incorporated in Hong Kong. The ultimate parent undertaking is Halo (Cayman) Limited, a company incorporated in the Cayman Islands. The directors consider the ultimate controlling party of the company to be Oliver Oulton. Halo (BVI) II Limited, an intermediate parent company incorporated in the British Virgin Islands, produces consolidated financial statements which include the group.

ANDREW MARTIN INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
28
Related party transactions

The details of the remuneration of key management personnel, all of whom are directors, are given in note 8 to the financial statements.

 

During the year the company engaged in normal trading transactions with Halo Creative & Design Limited, a fellow group undertaking. A balance of £213,595 (2022: £84,996) was owed by the company to Halo Creative & Design Limited at the balance sheet date. Purchases of £559,482 (2022: £601,450) were made from Halo Creative & Design Limited during the year.

 

During the year the company engaged in normal trading transactions with Halo Fabrics PTE Ltd, a fellow group undertaking. Purchases of £5,262 (2022: £12,907) were made from Halo Fabrics PTE Ltd during the year.

 

During the year the company engaged in normal trading transactions with Timothy Oulton Korea Limited, a fellow group undertaking. A balance of £nil (2022: £5,459) was owed to the company by Timothy Oulton Korea Limited at the balance sheet date. Sales of £39,126 (2022: £2,376) were made to Timothy Oulton Korea Limited during the year.

 

During the year the company engaged in normal trading transactions with Halo Poland Sp. z o.o, a fellow group undertaking. A balance of £nil (2022: £12,318) was owed by the company to Halo Poland Sp. z o.o at the balance sheet date. Purchases of £30,460 (2022: £25,704) were made from Halo Poland Sp. z o.o during the year.

 

During the year the company engaged in normal trading transactions with Timothy Oulton UK Limited, a fellow group undertaking. A balance of £132,182 (2022: £74,642) was owed by the company to Timothy Oulton UK Limited at the balance sheet date. Purchases of £58,904 (2022: £78,994), rental payments of £520,249 (2022: £202,721) and sales of £38,163 (2022: £nil) were made from/to Timothy Oulton UK Limited during the year.

 

The company engaged in normal trading transactions with Sofa-Icon Limited during the year, an entity in which the company has a 51% shareholding. A balance of £48,376 (2022: £125,919) was owed to Sofa-Icon Limited by the company at the balance sheet date. Purchases of £1,221,790 (2022: £1,056,621) were made from Sofa-Icon Limited during the year.

 

At the balance sheet date the company was owed £1,577,600 (2022: £308,680 owed to) by Halo Properties Limited (HK), the immediate parent undertaking.

 

ANDREW MARTIN INTERNATIONAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
29
Cash (absorbed by)/generated from group operations
2023
2022
£
£
Profit for the year after tax
1,180,584
565,197
Adjustments for:
Taxation charged
89,867
43,945
Finance costs
52,787
56,567
Investment income
(87,064)
(4,014)
Loss on disposal of tangible fixed assets
16,894
-
Amortisation and impairment of intangible assets
89,617
83,374
Depreciation and impairment of tangible fixed assets
185,479
163,557
Movements in working capital:
Decrease/(increase) in stocks
298,272
(451,032)
Increase in debtors
(1,140,375)
(176,345)
Decrease in creditors
(950,804)
(45,986)
Cash (absorbed by)/generated from operations
(264,743)
235,263
30
Analysis of changes in net funds - group
1 January 2023
Cash flows
New finance leases
31 December 2023
£
£
£
£
Cash at bank and in hand
3,076,568
(823,199)
-
2,253,369
Borrowings excluding overdrafts
(837,711)
218,433
-
(619,278)
Obligations under finance leases
-
-
(29,044)
(29,044)
2,238,857
(604,766)
(29,044)
1,605,047
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