REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
MAIL BOXES ETC. (UK) LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
MAIL BOXES ETC. (UK) LIMITED |
MAIL BOXES ETC. (UK) LIMITED (REGISTERED NUMBER: 03107457) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 8 |
Report of the Independent Auditors | 10 |
Statement of Comprehensive Income | 14 |
Balance Sheet | 15 |
Statement of Changes in Equity | 16 |
Cash Flow Statement | 17 |
Notes to the Cash Flow Statement | 18 |
Notes to the Financial Statements | 19 |
MAIL BOXES ETC. (UK) LIMITED |
COMPANY INFORMATION |
for the Year Ended 31 December 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Chartered Accountants |
& Statutory Auditors |
Vantage House Euxton Lane |
Euxton |
Chorley |
Lancashire |
PR7 6TB |
MAIL BOXES ETC. (UK) LIMITED (REGISTERED NUMBER: 03107457) |
STRATEGIC REPORT |
for the Year Ended 31 December 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
World Options Holdings Limited and Group subsidiary companies are a premier provider of bespoke courier and freight management solutions, which are predominantly supplied to commercial entities. |
REVIEW OF BUSINESS |
The directors are pleased to report that the results of World Options Holdings Limited (Group) continue to show a strong level of trading in the current year. Revenue growth has exceeded expectations and costs have continued to be monitored to ensure maximum profits are achieved. The overall performance of the Group has been strong post year end and the directors expect further growth over the coming years. The balance sheet demonstrates a robust net assets position which ensures cashflow is strong and the Group is able to meet its obligations on a day to day basis. |
FUTURE DEVELOPMENTS |
The main trading company of the Group, World Options Limited, continues to develop and nurture strong relationships with key customers by providing a reliable and quality service. The Group continues to invest heavily in both its bespoke offering and customer relationships to ensure it retains its strong position in the current global market and continues to secure new contracts and build on its reputation. |
KEY PERFORMANCE INDICATORS |
The directors monitor the progress of World Options Holdings Limited's (Group) strategy and individual elements by reference to the following key performance indicators: |
Financial - key performance indicators |
31 December 2023 |
31 December 2022 |
Turnover | £48.2m | £51.6m |
Gross profit | £11.2m | £7.4m |
Gross profit (percentage) | 23.18% | 14.33% |
Earnings before interest, tax, depreciation, amortisation and impairment of non-financial assets (EBITDA) |
£2.59m |
£1.76m |
Investment in development of core software and systems | £3.82m | £2.14m |
Cash flow movement | (£2.00m) | £2.54m |
Non-financial key performance indicators |
Average number of employees | 90 | 59 |
During the year ended 31 December 2023 the Group saw a slight decline in business activity, with turnover generated reducing by 6.66% from £51.6m in 2022, to £48.2m in 2023. The year ended 31 December 2022 included income that was generated through additional services provided during the COVID-19 era. On the 5 May 2023 the World Health Organisation declared the end of COVID-19 as a public health emergency. |
The Group remains focused on minimising overheads and costs that are directly attributable to sales. However, some costs have increased during the year due to outside influences, mainly in relation to energy costs. |
Direct costs relating to sales generated amounted to £37.00m in 2023 (2022: £44.22m), which translates into a gross profit percentage of 23.18% in 2023, compared to 14.33% in 2022. The improved profit margin has been achieved as a result of greater use of economies of scale. |
MAIL BOXES ETC. (UK) LIMITED (REGISTERED NUMBER: 03107457) |
STRATEGIC REPORT |
for the Year Ended 31 December 2023 |
Wages and salary costs have increased by £1.55m to £4.68m in 2023, compared to £3.13m in 2023, mainly due to the increased number of employees following the acquisition of Pack and Send UK Limited and Pack and Send Trading Limited, in February 2023. As a result of the acquisition and investments made in marketing and advertising, such expenditure almost doubled to £1,168,961 in 2023, compared to £576,759 in 2022. |
World Options Holdings Limited Group has continued to invest in computer software and portal development, during the year ended 31 December 2023 with such expenditure amounting to £3.82m, compared to £2.14m in 2022. |
Fixed assets as at 31 December 2023 attained a carrying net book value of £11,963,644, compared to £9,221,287 for the year ended 31 December 2022. The increased value reflects costs incurred in the purchase of computer software and portal development. |
Current assets amounted to £7,850,587 as at 31 December 2023, compared to a value of £9,912,407 as at 31 December 2022. The main reason for the reduction is the fall in cash held at bank of £1.67m, following the acquisition of Pack and Send UK Limited and Pack and Send Trading Limited. |
Current liabilities amounted to £12,235,642 as at 31 December 2023, compared to £11,255,608 at 31 December 2022, with the main increase during the year contained within the trade creditors balance. |
Shareholders funds as at 31 December 2023 amounted to £4,421,259, compared to £3,367,518 as at 31 December 2022. |
PRINCIPLE RISKS AND UNCERTAINTIES |
Financial risk management |
The nature of World Options Holdings Limited's (Group) operations expose it to a variety of financial risks that include the effects of credit risk, liquidity risk and interest rate cash flow risk, through fluctuation in interest rates. The Group has in place, a risk management programme that seeks to limit the adverse effects on the financial performance of the Group. Due to the nature of the trading companies within the Group, World Options Limited,Siid Limited, Mail Boxes Etc. (UK) Limited, Pack and Send UK Limited and Pack and Send Trading Limited's trade, the Group remains exposed to foreign exchange risk, however, this risk is deemed to be manageable as any foreign exchange gains and losses are recognised immediately by the company, hence the directors always have a good working knowledge of the level of risk to the Group. |
Credit risk |
World Options Holdings Limited (Group) has implemented policies that require appropriate credit checks to be completed on potential customers before sales are made. Customers are subject to considered and appropriate credit limits and strong credit control procedures are in place. |
Liquidity risk |
World Options Holdings Limited (Group) continues to ensure it has sufficient funds in place to meets its day to day operations. The Group attains cash reserves of £1,595,884 as at 31 December 2023 which the directors feel is sufficient to satisfy current liabilities as and when they fall due. Strong credit control procedures remain in place to ensure that trade debtors are converted into bank receipts on a timely basis. For additional assurance and to ensure effective cashflow, invoice factoring is used by the trading company. |
MAIL BOXES ETC. (UK) LIMITED (REGISTERED NUMBER: 03107457) |
STRATEGIC REPORT |
for the Year Ended 31 December 2023 |
SECTION 172(1) STATEMENT |
Our section 172 statement summaries how the Board has factored stakeholder considerations into our decision making. |
Section 172 of the Companies Act 2006 (the Act) imposes a duty on a director to act in a way that he or she considers, in good faith, would be most likely to promote the long term success of the company, for the benefit of its members as a whole. In doing so, the directors have regard for the various matters including the interests of stakeholders, as well as various other matters. The Companies (Miscellaneous Reporting) Regulations 2018 require companies to report on how the Board has fulfilled the requirements of Section 172(1), including how the Board has factored stakeholder considerations into its decision making. |
The Board is fully aware of and supports these requirements. We are pleased to describe below how the Group Board engages with our stakeholders. |
The Group's key stakeholders have an important role to play in the successful operation of our business. Our Board are fully aware of and take seriously, their responsibilities to those stakeholders under the Act. |
We believe that it is appropriate to consider the potential impact on our stakeholders , when considering the Group's strategy and in making our key decisions. Indeed, these responsibilities are rooted in our culture, values and company purpose. |
The Board considers that, in its decisions and actions to date, it has acted in a way that would promote the success of the Group for the benefit of its members as a whole, whilst having regard to the stakeholders and matters set out in Section 172(1) (a-f) of the Act. The Board has identified the Group's key stakeholders as our employees, customers, suppliers, franchises, the environment and communities in which we operate and investors and shareholders. It receives updates on each of these and takes steps to ensure that it remains well informed about them. |
The Group directors believe in conducting their business activities in the most ethical way, with all of its decisions underpinned by the impact they have on our seven main stakeholder groups. We set out below two areas where our Board had regard to Section 172 when discharging its duties and the effect of this on the methodology of its decisions: |
Remuneration policy |
Our customers represent one of our key stakeholder groups and we have therefore prioritised them in our executive director incentive measurements. In implementing the remuneration policy, we further consider the perceptions of our customers by setting our executive compensation at an appropriate level, as it is our customers who ultimately pay for the directors remuneration. |
Corporate responsibility |
Our employees are passionate about the societal, economic and environmental impact of the Group. Our employees have taken the initiative of developing their vision of what the Group's Corporate Responsibility is, for which this is continually evolving. The vision summarises that our belief is that our business has a positive impact on the world, offering a path of sustainability, carbon neutrality, equality and education, which directly affects all of our stakeholders. The Board will ensure that the vision of our employees, with regard to how the Group should conduct itself are considered when implementing Corporate Responsibility policies. |
The detailed content in these Financial Statements further outlines how during 2023 the Board of Directors strove to comply with their duty under Section 172 in considering stakeholders in the Group's decision making process, in order to promote the Group's success. We will continue to consider our stakeholders in the year ahead as the Board of Directors makes further decisions in overseeing the Group's strategy. The following narrative summarises our approach. |
MAIL BOXES ETC. (UK) LIMITED (REGISTERED NUMBER: 03107457) |
STRATEGIC REPORT |
for the Year Ended 31 December 2023 |
Longterm decision making |
The Board of Directors has put into place a structured governance model, with scheduled Board meetings and clear documentation and authority levels, to control its decision making process. Our governance model supports the Group in ensuring that decisions are considered, documented and reported upon and are in alignment with our strategic plans. Detailed budgets and forecasts are prepared to enable the Board of Directors to track the performance and ensure that it is expected, or that mitigation steps are taken to deliver performance in line with, or close to, expectations. The Board and individual Directors operate within this structure, with the aim of promoting the long success of the company and delivering longterm shareholder value. Business proposals are documented in line with, and performance levels tracked. |
High standards of business conduct |
We have a Code of Conduct setting out the behaviours and values expected of all of our colleagues, which we communicate to all colleagues and third parties. We have processes to update our Board and management on the operation of our code. The Board requires all of our people to work to the highest standards of business conduct. Our focus is to do what is right in advance of what is easy. This is supported through ongoing communication and awareness of and training in, acceptable company conduct. Any reports of inappropriate behaviour are independently investigated and action taken where necessary. |
We set out below how the Board has engaged with and been influenced by, the interests of our different stakeholders. |
Employee engagement |
We consider that our employees act with the utmost integrity and professional expertise in providing our customers with bespoke courier and freight management solutions. In doing so, the Board considers that its employees are both rewarded fairly and incentivised to deliver the Group strategy. |
How we engage with our employees |
The Board is kept informed on employee related matters at every Board meeting, at which it receives a standing agenda update. Employee appraisals are undertaken regularly to monitor issues arising, which form the basis of action plans. Consultation with employees happens when their views need to be considered in decisions the Group needs to make, that will likely affect their interests. All employees are kept upto date with Group performance through regular communication. |
Customer engagement |
Our customer base continues to evolve and expand within our courier solutions offering. As we are entering into the emerging market of freight shipments and drop shipping, additional customers are being sought. |
At each Board meeting, as part of a standing agenda item a report is received from the Managing Director, on any feedback received from customers from our interactions with them. We take this information into account so that we are able to be confident that we have identified the appropriate customer needs that require addressing. From a risk management perspective, before entering into business with a new customer full background checks are undertaken, which includes a review for potential financial risks. |
Supplier engagement |
We have built good relationships with our suppliers. Our suppliers are evaluated in accordance with our guidelines on the environment, work environment, human rights, business ethics and quality. |
Other third parties that are of great importance to the Group include our Professional Advisers, bankers and regulators. |
MAIL BOXES ETC. (UK) LIMITED (REGISTERED NUMBER: 03107457) |
STRATEGIC REPORT |
for the Year Ended 31 December 2023 |
The Board is kept fully informed about the Group's interactions with key third party relationships, with the Group, be they suppliers, or other key providers of services or regulatory support. The Board places utmost importance on the integrity of the supplier agreements with a focus on the robustness of the supply of goods and services. All third party suppliers are regularly reviewed so that there are no matters that could potentially harm our reputation or be financially damaging to us. |
Franchise engagement |
A substantial part of the World Options, Pack and Send and Mail Boxes Etc Group of companies is delivered via franchises, that are independently owned by third parties. These entities therefore form a crucial part of the Group's business activities |
We are a member of the British Franchise Association, who regulate our franchise operations. We encourage communication both from the Group to franchise owners and vice versa and review all comments at a senior management and Board level, providing assistance and support to the franchise network. Such comments are reviewed and changes to any Group operations are discussed and considered before implementation. Franchise communication and the number of new and lost franchises are tabled at the Board meetings as an agenda point. |
The Group undertakes regular franchise training events and award presentations, to ensure that franchise owners understand the Group ethos in relation to Corporate Responsibility and are empowered and incentivised. |
Our community and the environment |
Our underlying business ethos is to do what is ethical in advance of what is easy. This is especially so when it comes to local communities in which we operate and the impact that we have on the environment in which we all live. We actively encourage all of our employees to give back to the community, in whichever way they feel most comfortable. This ranges from the ability to give donations to chosen charities, via payroll deductions, fundraising through their own endeavours or volunteering in the community. |
Our Board and our senior management are conscious of the effect that our operations and those who provide us with goods and services have on the environment and seek to minimise our impact. We are reviewing, on an ongoing basis, the impact of changing the settings on our air conditioning systems to ensure that there is a balance between reducing energy costs and environmental impact in comparison to ensuring that at the same time we are providing optimal working conditions. |
Investors |
World Options Holdings Limited Group has an investing shareholder and our investors are critical to us. They provide us with additional capital that enables grow and invest for the future. However our investors are not interested in growth at all costs. They take interest in our business plan, our strategy, our governance, our approach to remuneration of the Board and other members of the senior management team. Increasingly, they are becoming more interested in how we conduct ourselves via our Corporate Responsibilities. |
MAIL BOXES ETC. (UK) LIMITED (REGISTERED NUMBER: 03107457) |
STRATEGIC REPORT |
for the Year Ended 31 December 2023 |
How we engage and what we do with that information |
During the year the Board of Directors and senior management engage with shareholders on a regular basis following the production of the monthly management financial reporting schedules. From these engagement activities, the Board has a detailed understanding of the needs of our investors. The Board is aware that it has a duty to treat all shareholders fairly and that it must ensure that all decisions made take the longterm interests of all shareholders into account. |
ON BEHALF OF THE BOARD: |
MAIL BOXES ETC. (UK) LIMITED (REGISTERED NUMBER: 03107457) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of provision of delivery and marketing services. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 December 2023 will be £200,000. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company 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; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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. |
MAIL BOXES ETC. (UK) LIMITED (REGISTERED NUMBER: 03107457) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 December 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MAIL BOXES ETC. (UK) LIMITED |
Opinion |
We have audited the financial statements of Mail Boxes Etc. (UK) Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MAIL BOXES ETC. (UK) LIMITED |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit; or |
- | the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page eight, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MAIL BOXES ETC. (UK) LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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: |
As Auditors of the above named entity, we have undertaken audit testing, discussions and examination of the company, that are capable of detecting irregularities, including fraud are detailed below: |
i) We obtained an understanding of the legal and regulatory frameworks applicable to the Company and the industry in which it operates. We determined the Companies Act 2006 to be the most significant laws and regulations to the entity. We enquired of management whether there were any instances of non-compliance with laws and regulations or whether they had any knowledge of actual or suspected fraud. We discussed and compared the result of our enquiries to supporting documentation. From the procedures performed we did not identify any matters relating to non-compliance with laws and regulation or matters in relation to fraud. |
ii) We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: |
Evaluation of the processes and controls established to address the risks related to irregularities and fraud; |
Testing manual journal entries, in particular journal entries relating to accounting estimates and entries that were deemed material and those that related to unusual transactions; |
Identifying and testing related party transactions. |
iii) The assessment of the appropriateness of the competence and capabilities of the engagement team included consideration of the engagement team's knowledge of the industry in which the client operates in and understanding of, together with the practical experience through training and participation with audit engagements of a similar nature. |
iv) When assessing the potential risks of material misstatement to the financial statements, we obtained an understanding of: |
The Company's operations, including the nature of its revenue sources, expected financial statement disclosures and business risks, that may result in a risk of material misstatement; |
We undertake and document an analytical review at the planning and completion stage of our audit, to ensure that all material items have been identified and can be explained. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MAIL BOXES ETC. (UK) LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
& Statutory Auditors |
Vantage House Euxton Lane |
Euxton |
Chorley |
Lancashire |
PR7 6TB |
MAIL BOXES ETC. (UK) LIMITED (REGISTERED NUMBER: 03107457) |
STATEMENT OF COMPREHENSIVE |
INCOME |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
PROFIT BEFORE TAXATION |
Tax on profit | 6 | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
MAIL BOXES ETC. (UK) LIMITED (REGISTERED NUMBER: 03107457) |
BALANCE SHEET |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 14 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 15 |
Retained earnings | 16 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
MAIL BOXES ETC. (UK) LIMITED (REGISTERED NUMBER: 03107457) |
STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
MAIL BOXES ETC. (UK) LIMITED (REGISTERED NUMBER: 03107457) |
CASH FLOW STATEMENT |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of intangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Movement on intercompany loans | 200,000 | (429,188 | ) |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
959,212 |
Cash and cash equivalents at end of year | 2 | 634,361 | 622,552 |
MAIL BOXES ETC. (UK) LIMITED (REGISTERED NUMBER: 03107457) |
NOTES TO THE CASH FLOW STATEMENT |
for the Year Ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Finance income | (80 | ) | (1,619 | ) |
257,343 | 83,831 |
Decrease in stocks |
Increase in trade and other debtors | ( |
) | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 634,361 | 622,552 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 622,552 | 966,258 |
Bank overdrafts | ( |
) |
622,552 | 959,212 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 622,552 | 11,809 | 634,361 |
622,552 | 634,361 |
Total | 622,552 | 11,809 | 634,361 |
MAIL BOXES ETC. (UK) LIMITED (REGISTERED NUMBER: 03107457) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Mail Boxes Etc. (UK) Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared in accordance with FRS 102 - The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
The presentation currency of the financial statements is the Pound Sterling (£). |
Significant judgements and estimates |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Significant judgements and estimates made by management in preparing these financial statements include: |
- Amortisation. |
- Depreciation. |
- Financial Instruments. |
Income recognition |
Turnover represents the invoiced value of the supply of courier services, net of value added tax and trade discounts. |
The services provided to customers are invoiced on completion of the service and recognised on a daily basis. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Improvements to property | - |
Fixtures and fittings | - |
Computer equipment | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
MAIL BOXES ETC. (UK) LIMITED (REGISTERED NUMBER: 03107457) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit and loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit and loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
MAIL BOXES ETC. (UK) LIMITED (REGISTERED NUMBER: 03107457) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans to related parties. |
Debt instruments such as other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method; debt instruments that are payable or receivable with one year, typically trade payables and receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date. |
Trade and other debtors |
Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the debtors are stated at cost less impairment losses for bad and doubtful debts. |
Trade and other creditors |
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
4. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Staff |
MAIL BOXES ETC. (UK) LIMITED (REGISTERED NUMBER: 03107457) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.12.23 | 31.12.22 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Patents and licences amortisation |
Development costs amortisation |
Auditors' remuneration |
Foreign exchange differences | ( |
) |
Preparation of financial statements and corporation tax returns |
6. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit | ( |
) |
7. | DIVIDENDS |
31.12.23 | 31.12.22 |
£ | £ |
Ordinary shares of £1 each |
Interim |
MAIL BOXES ETC. (UK) LIMITED (REGISTERED NUMBER: 03107457) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
8. | INTANGIBLE FIXED ASSETS |
Patents |
and | Development |
licences | costs | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
AMORTISATION |
At 1 January 2023 |
Amortisation for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
9. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
to | and | Computer |
property | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
10. | STOCKS |
31.12.23 | 31.12.22 |
£ | £ |
Finished goods |
MAIL BOXES ETC. (UK) LIMITED (REGISTERED NUMBER: 03107457) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Prepayments and accrued income |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 93,942 | 67,652 |
Other creditors |
Accruals and deferred income |
13. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Within one year |
Between one and five years |
14. | PROVISIONS FOR LIABILITIES |
31.12.23 | 31.12.22 |
£ | £ |
Deferred tax | 5,749 | 16,866 |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Provided during year | ( |
) |
Balance at 31 December 2023 |
MAIL BOXES ETC. (UK) LIMITED (REGISTERED NUMBER: 03107457) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 December 2023 |
15. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
Ordinary | £1 | 250,000 | 250,000 |
16. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
Dividends | ( |
) |
At 31 December 2023 |