Registered number:
FOR THE YEAR ENDED 31 JULY 2023
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
COMPANY INFORMATION
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
CONTENTS
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023
We remain focused on delivering our vision for employees, stakeholders, customers and the planet:
"We believe buying furniture should be simple. It should leave you happy, with money in your pocket, excited to get home, to hang out at home and entertain those you love. We believe everyone has the right to a happy home - one they take pride in, kitted out to meet their needs in a hassle-free and low impact way. Our values of collaboration, transparency, integrity, innovation - alongside a desire to simplify the complex and a “think small aim big” approach - are the enablers to make us the dependable, accessible destination for stylish furniture that delivers on our beliefs.”
The Board convenes on a quarterly basis and is chaired by the MD. The Board consists of two working directors and a finance controller. We consider key financial metrics and market conditions to set the financial course for the business. The senior leadership team meets once a quarter to discuss all the commercial areas of the business including HR, Finance, Growth and Professional services. Weekly meetings are held with key managers, with representatives from each department including Finance, Marketing, Operations and Tech; we discuss evolving opportunities and operational topics.
Page 1
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
The 2022 to 2023 financial year was our first full year in our new Chippenham distribution centre. It has been both an exciting and challenging period for the business, culminating in the solidification of our growth platform from a physical, personnel, and structure perspective. Just like the previous few years the macro environment has been turbulent, however, relatively speaking it has been a much more stable environment for our business. We saw supply chain issues ease, with both production returning to pre-covid capacity and shipping rates returning to acceptable levels. Despite some large domestic worries, including interest rate rises and cost of living problems, our offering has held firm and we have seen some encouraging signs of relative spending ‘normality’ returning. This year has been a foundational year that will allow us capitalise on all the opportunities we see in the market.
Turnover: Compared to the prior year, turnover increased by 33.23% and this was a sizeable increase on 2022. Gross Profit: The Gross Profit Margin of 23.95% showed a decrease against the previous year of 32.81%. Net Profit: The Net Profit Margin of -4.85% showed a decrease against the previous year of 11.17%. It is pleasing to see a sizeable increase in our turnover, and it was expected that profits would be greatly reduced due to fixed overhead commitments we made for future expansion. The turnover increase reflects some of the work we have been doing coming to fruition, however, we believe the fruits of much of this work will be reflected in the following months and years. We are very proud of our organic growth and this year it is pleasing to see that despite huge investments and increases in costs, we have managed to maintain acceptable business finances. We expect to see our top-line turnover increasing and fixed overheads staying stable, resulting in a return to healthy profitability in 2023/24. Other developments include: • Delivery Cut-Off Point: In 2022/2023 we moved our next-day delivery cut-off point back from 1 pm to 8 pm. As a customer-centric company, we pride ourselves on our best-in-class customer experience. Part of this best-in-class experience is convenience for our customers. We are proud that a customer is now able to order up to 8 pm and receive their order the next day. As far as we are aware this is the latest cut-off for bulky, multi-box furniture products. This cut-off time development is also an embodiment of our determination to push the boundaries where we can and our team's ability to deliver. • Growth In the US: We launched in the US at the start of our financial year and have seen some sizeable growth over the last 12 months. This has resulted in ~10% of our revenue coming from the US and thus our revenue composition mix diversifying. Despite the risks involved with operating in a different geography, our strategic approach has mitigated the potential downside and we have been able to capatilise on the market opportunity. We will continue to grow these overseas sales, but maintain a cautious approach and not overexpose our US position. • Sustainability: We made some concrete progress on sustainability in the period. We set out some targets at the start of this year and we are in a good position to hit these targets. We are proud to now be FSC-certified, be a carbon-positive company, have products made of recycled plastic in our catalog. We are poised to transition all of our packaging to eco packaging, having completed a thorough scoping exercise throughout the year. • Products: We did not develop our product range as quickly as we would have liked in this period and there were a few delays with our very short timelines. However, a lot of the work that has been completed and we will benefit from new ranges in the following periods. • People: We are proud of the culture we have created at FurnitureboxUK and believe this to be a key pillar for success. This year, we have made multiple improvements to employee welfare. Some of these improvements include increasing holiday days, reducing working hours and implementing new benefit schemes.
Page 2
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
• Operational solidification: We have smoothed out all of the distribution centre’s teething issues and now can increase our throughput by 3-4 fold. It has been pleasing to see all of our theory play out as we planned and it has resulted in a state-of-the-art distribution centre.
• Investments in tech and marketplaces: We continue to invest heavily in our tech stack and personnel to aid our teams and ensure efficiency as we grow. A large emphasis has been placed on data and integrations which is allowing us to report more effectively on performance. • Investments in customers: We continue to make improvements in our service to customers. Some notable changes this year include a sizeable increase in opening times on weekdays and weekends, additional means of contact and a large reduction in response time. We also rebranded our Customer Service team to a Customer Experience team; this rebrand better articulates what the team’s purpose is.
Our core growth recipe has not changed, but our ability to capitalise on this recipe looks very promising going into the next financial period. We have substantially diversified our revenue composition, have a fast-growing product range, and a team growing in experience.
These areas, combined with our best-in-class customer-centric approach and distribution centre efficiency/capacity, should mean we see our recipe flywheel turn a lot faster than in previous years. Early trading indicates a pleasing turnover increase, despite some market sounds not being too positive. Operating at these higher turnover levels, we are positive about our ability to drive high profitable returns. We see huge opportunities in the market and have faith in our core recipe. Our opportunities and focus largely remain the same, these include: • USA expansion: Expanding our product range, stock availability, promotional outreach, channel exposure, and current personnel resourcing. • Product: Our product team will be bolstered by a new Head of Product with wide-ranging furniture experience. This will give our teams greater direction and aid the existing product range development currently happening. • Sustainability: Our main sustainability focus this year will be following through with the packaging groundwork already completed. This will involve a line-wide move to sustainable packaging for our products. • People: We will be completing an assessment of personnel expertise required in relation to business needs. To charge our growth, we recognise that we may need to expand organisational structures to pass on responsibilities currently burdened with directors. • Brand: We have made some small gains in this area, however, we recognise there is a long way to go to establish our brand. We will be further investing in our marketing team and creating a strategy to make gains in 2023 / 2024. • Reporting: We recognise that correct reporting is a vital catalyst for success. We will look to implement a new reporting platform that will be accessible for all teams. This will aid with decision-making and analysis throughout the company.
Page 3
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
• Quality of Service
Following a consolidation year in our new distribution centre and all operational teams settling into their new work locations, we have seen the quality of service go from strength to strength. Continual improvement and a desire to do better have driven these positive changes. Over the next year, we will need to ensure that this fundamental area is not degraded as we expand. • The Market Place We can now talk about the Market Place in three geographies, with the inclusion of the US. We have spread our revenue risk this year, which means we are able to cope well with market fluctuations. Although the market indicators are not suggestive of buoyant growth climate, there are signs of relative stability, and we are confident our model can continue to grow in this climate. • Quality of Staff Our employee turnover level remains very low, and we have seen minimal team departures this year. We see a high level of employee engagement and despite some skill progression needed in some areas, we are assured in the trajectory the team is going. As well as bringing in expertise, we will also be looking to continue training and progressing the careers of all existing employees. We have seen the benefit of having a dedicated, loyal and hard-working team, and we will try to retain this at all costs.
• Sales Growth: 33.23% (2022: 1.97%)
• Gross Profit Margin: 23.95% (2022: 32.81%) • Operating Profit Margin: -5.16% (2022: 15.04%) • Net Current Assets £621,982 (2022: £624,898)
This report was approved by the board on 31 July 2024 and signed on its behalf.
Page 4
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2023
The Directors present their report and the financial statements for the year ended 31 July 2023.
The Directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Company's financial statements 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 to 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.
The loss for the year, after taxation, amounted to £1,030,530 (2022 - profit £1,779,624).
The Directors have paid a final dividend of £150,000 (2022 - £1,000,000).
The Directors who served during the year and their interests in the Company's issued share capital were:
The Company continues to trade successfully with no material future developments planned.
Page 5
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
There have been no significant events affecting the Company since the year end.
The auditors, Clifford Fry & Co LLP (Statutory auditors), will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
Page 6
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONTY TRADING LIMITED
We have audited the financial statements of Monty Trading Limited (the 'Company') for the year ended 31 July 2023, which comprise the Statement of income and retained earnings, the Balance sheet, the Statement of cash flows and the related notes, 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).
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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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.
Page 7
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONTY TRADING LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The Directors are responsible for the other information contained within the Annual 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
Page 8
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONTY TRADING LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the Company, including obtaining details on how they identify and comply with laws and regulations and whether they were aware of any non-compliance, how they detect and respond to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud, and finally the controls they have in order to mitigate risks of fraud or non-compliance with laws and regulations. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, intentional misrepresentations. As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: revenue and profit recognition. We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud, and enquiries with management. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
Page 9
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONTY TRADING LIMITED (CONTINUED)
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 an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
St Mary's House
Netherhampton
Wiltshire
SP2 8PU
Page 10
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JULY 2023
Page 11
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
REGISTERED NUMBER: 09662682
BALANCE SHEET
AS AT 31 JULY 2023
Page 12
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
REGISTERED NUMBER: 09662682
BALANCE SHEET (CONTINUED)
AS AT 31 JULY 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 17 to 34 form part of these financial statements.
Page 13
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2023
Page 14
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
Page 15
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 JULY 2023
Page 16
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
Monty Trading Limited is a private company limited by share capital, incorporated and registered in England and Wales. The registered office is St Mary's House, Netherhampton, Salisbury, Wiltshire, SP2 8PU. The Company's principal place of business is Unit 6, St. Modwen's Park, Chippenham, SN15 5BD. The principal activity of the Company throughout the year was that of online retail.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.
The following principal accounting policies have been applied:
Functional and presentation currency
Transactions and balances
Page 17
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
2.Accounting policies (continued)
Page 18
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
2.Accounting policies (continued)
Page 19
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
2.Accounting policies (continued)
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Page 20
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Page 21
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Page 22
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
2.Accounting policies (continued)
Analysis of turnover by country of destination:
Exchange differences recognised in proft and loss for the year, except for those arising on financial instruments measured at fair value through profit and loss, amounted to losses of £411,292 (2022 - gains of £279,917).
Page 23
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
Page 24
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
Page 25
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
There were no factors that may affect future tax charges.
Page 26
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
Page 27
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
Page 28
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
Page 29
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
The hire purchase contracts are secured over the assets concerned.
Page 30
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
The hire purchase contracts are secured over the assets concerned.
Page 31
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
Page 32
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
Profit and loss account
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £34,379 (2022 - £24,580). Contributions totalling £7,630 (2022 - £5,088) were payable to the fund at the balance sheet date and are included in creditors.
Page 33
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MONTY TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
The Company is a wholly owned subsidiary of Hontan Holdings Limited.
The registered office of Hontan Holdings Limited is St Mary's House, Netherhampton, Salisbury, Wiltshire, SP2 8PU, and copies of the group accounts can be obtained from here.
Page 34
|