AM Trading UK Limited 06780414 false 2023-01-01 2023-12-31 2023-12-31 The principal activity of the company is exporters of bulk paper supplies Digita Accounts Production Advanced 6.30.9574.0 true true true true 06780414 2023-01-01 2023-12-31 06780414 2023-12-31 06780414 core:RetainedEarningsAccumulatedLosses 2023-12-31 06780414 core:ShareCapital 2023-12-31 06780414 core:HirePurchaseContracts core:CurrentFinancialInstruments 2023-12-31 06780414 core:HirePurchaseContracts core:Non-currentFinancialInstruments 2023-12-31 06780414 core:CurrentFinancialInstruments 2023-12-31 06780414 core:CurrentFinancialInstruments core:WithinOneYear 2023-12-31 06780414 core:Non-currentFinancialInstruments core:AfterOneYear 2023-12-31 06780414 core:FurnitureFittingsToolsEquipment 2023-12-31 06780414 core:MotorVehicles 2023-12-31 06780414 core:DeferredTaxation 2023-12-31 06780414 bus:FRS102 2023-01-01 2023-12-31 06780414 bus:Audited 2023-01-01 2023-12-31 06780414 bus:FullAccounts 2023-01-01 2023-12-31 06780414 bus:RegisteredOffice 2023-01-01 2023-12-31 06780414 bus:Director1 2023-01-01 2023-12-31 06780414 bus:Director2 2023-01-01 2023-12-31 06780414 bus:Consolidated 2023-01-01 2023-12-31 06780414 bus:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 06780414 1 2023-01-01 2023-12-31 06780414 core:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 06780414 core:ShareCapital 2023-01-01 2023-12-31 06780414 core:FurnitureFittingsToolsEquipment 2023-01-01 2023-12-31 06780414 core:MotorVehicles 2023-01-01 2023-12-31 06780414 core:OfficeEquipment 2023-01-01 2023-12-31 06780414 core:PlantMachinery 2023-01-01 2023-12-31 06780414 core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity 2023-01-01 2023-12-31 06780414 core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity core:SaleOrPurchaseGoods 2023-01-01 2023-12-31 06780414 core:UKTax 2023-01-01 2023-12-31 06780414 countries:UnitedKingdom 2023-01-01 2023-12-31 06780414 2022-12-31 06780414 core:RetainedEarningsAccumulatedLosses 2022-12-31 06780414 core:ShareCapital 2022-12-31 06780414 core:FurnitureFittingsToolsEquipment 2022-12-31 06780414 core:MotorVehicles 2022-12-31 06780414 core:DeferredTaxation 2022-12-31 06780414 2022-01-01 2022-12-31 06780414 2022-12-31 06780414 core:HirePurchaseContracts core:CurrentFinancialInstruments 2022-12-31 06780414 core:HirePurchaseContracts core:Non-currentFinancialInstruments 2022-12-31 06780414 core:CurrentFinancialInstruments 2022-12-31 06780414 core:CurrentFinancialInstruments core:WithinOneYear 2022-12-31 06780414 core:CurrentFinancialInstruments core:WithinOneYear core:PreviouslyStatedAmount 2022-12-31 06780414 core:CurrentFinancialInstruments core:PreviouslyStatedAmount 2022-12-31 06780414 core:Non-currentFinancialInstruments core:AfterOneYear 2022-12-31 06780414 core:Non-currentFinancialInstruments core:AfterOneYear core:PreviouslyStatedAmount 2022-12-31 06780414 core:FurnitureFittingsToolsEquipment 2022-12-31 06780414 core:MotorVehicles 2022-12-31 06780414 core:PreviouslyStatedAmount 2022-12-31 06780414 1 2022-01-01 2022-12-31 06780414 core:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 06780414 core:ShareCapital 2022-01-01 2022-12-31 06780414 core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity core:SaleOrPurchaseGoods 2022-01-01 2022-12-31 06780414 core:PreviouslyStatedAmount 2022-01-01 2022-12-31 06780414 core:UKTax 2022-01-01 2022-12-31 06780414 2021-12-31 06780414 core:RetainedEarningsAccumulatedLosses 2021-12-31 06780414 core:ShareCapital 2021-12-31 iso4217:GBP xbrli:pure

Registration number: 06780414

AM Trading UK Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

AM Trading UK Limited

Contents
__________________________________________________________________________

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 7

Profit and Loss Account and Statement of Retained Earnings

8

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Financial Statements

13 to 23

 

AM Trading UK Limited

Company Information
__________________________________________________________________________

Directors

A Monga

Ankit Monga

Registered office

Unit 614
Shepherds Building Charecroft Way
London
W14 0EE

Auditors

Brooks Green
Registered Auditors
Abbey House
342 Regents Park Road
London
N3 2LJ

 

AM Trading UK Limited

Strategic Report for the Year Ended 31 December 2023
__________________________________________________________________________

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

Principal activity

The principal activity of the company is exporters of bulk paper supplies

Fair review of the business

During the year, the company continued to increase sales, both to existing customers and to new customers, thereby increasing its turnover and its profits. The directors are confident that the company is well placed for strong trading performance in the future.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Turnover

£

59,805,123

36,779,395

Profit before tax

£

1,282,610

954,874

Net assets

£

4,259,324

3,443,999

Principal risks and uncertainties

The company operates in a competitive market and market share fluctuations will always be a risk. The company controls this risk by monitoring the market and continually refreshing its product offering accordingly.
The company sells much of its product in foreign currency and therefore at risk of currency fluctuations. The directors have been very adept at managing this risk.

Approved by the Board on 5 September 2024 and signed on its behalf by:

.........................................
A Monga
Director

 

AM Trading UK Limited

Directors' Report for the Year Ended 31 December 2023
__________________________________________________________________________

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

Directors of the company

The directors who held office during the year were as follows:

A Monga

Ankit Monga

Financial instruments

Objectives and policies

The company's principal financial instruments comprise bank balances, debtors and creditors. The main purpose of these instruments is to finance the company's operations.

Price risk, credit risk, liquidity risk and cash flow risk

Through their careful management of the financial instruments, the directors minimise risk.

The company manages its working capital to ensure that sufficient funds are available to support any amounts due.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the Board on 5 September 2024 and signed on its behalf by:

.........................................
A Monga
Director

 

AM Trading UK Limited

Statement of Directors' Responsibilities
__________________________________________________________________________

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

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.

 

AM Trading UK Limited

Independent Auditor's Report to the Members of AM Trading UK Limited
__________________________________________________________________________

Opinion

We have audited the financial statements of AM Trading UK Limited (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account and Statement of Retained Earnings, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and 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 auditor 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 director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

AM Trading UK Limited

Independent Auditor's Report to the Members of AM Trading UK Limited
__________________________________________________________________________

We have nothing to report in this regard.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 4], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor 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:

Responsibility for the prevention and detection of irregularities, including fraud, resides with the company directors. We planned and conducted our audit to detect material irregularities, including fraud, but the audit cannot be considered a comprehensive assignment for the detection of such irregularities.

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

 

AM Trading UK Limited

Independent Auditor's Report to the Members of AM Trading 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 an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Rowland Aarons (Senior Statutory Auditor)
For and on behalf of Brooks Green, Statutory Auditor

Abbey House
342 Regents Park Road
London
N3 2LJ

5 September 2024

 

AM Trading UK Limited

Profit and Loss Account and Statement of Retained Earnings for the Year Ended 31 December 2023

Note

2023
£

2022
£

           

Turnover

3

 

59,805,123

 

36,779,395

Cost of sales

   

(56,356,491)

 

(34,163,654)

Gross profit

   

3,448,632

 

2,615,741

Administrative expenses

   

(1,454,026)

 

(928,838)

Operating profit

5

 

1,994,606

 

1,686,903

Other interest receivable and similar income

6

289

 

8

 

Interest payable and similar charges

7

(712,285)

 

(732,037)

 

   

(711,996)

 

(732,029)

Profit before tax

   

1,282,610

 

954,874

Taxation

11

 

(347,285)

 

(183,232)

Profit for the financial year

   

935,325

 

771,642

Retained earnings brought forward

   

3,143,999

 

2,452,357

Dividends paid

   

(120,000)

 

(80,000)

Retained earnings carried forward

   

3,959,324

 

3,143,999

 

AM Trading UK Limited

Statement of Comprehensive Income for the Year Ended 31 December 2023
__________________________________________________________________________

2023
£

2022
£

Profit for the year

935,325

771,642

Total comprehensive income for the year

935,325

771,642

 

AM Trading UK Limited

(Registration number: 06780414)
Balance Sheet as at 31 December 2023
__________________________________________________________________________

Note

2023
£

2022
£

           

Fixed assets

   

 

Tangible assets

12

 

279,623

 

289,563

Current assets

   

 

Stocks

13

2,240,131

 

1,964,476

 

Debtors

14

21,355,510

 

14,729,895

 

Cash at bank and in hand

 

824,950

 

1,212,310

 

 

24,420,591

 

17,906,681

 

Creditors: Amounts falling due within one year

16

(20,143,357)

 

(14,393,063)

 

Net current assets

   

4,277,234

 

3,513,618

Total assets less current liabilities

   

4,556,857

 

3,803,181

Creditors: Amounts falling due after more than one year

16

 

(227,627)

 

(286,791)

Provisions for liabilities

17

 

(69,906)

 

(72,391)

Net assets

   

4,259,324

 

3,443,999

Capital and reserves

   

 

Called up share capital

300,000

 

300,000

 

Retained earnings

3,959,324

 

3,143,999

 

Shareholders' funds

   

4,259,324

 

3,443,999

Approved and authorised by the Board on 5 September 2024 and signed on its behalf by:
 

.........................................

A Monga
Director

 

AM Trading UK Limited

Statement of Changes in Equity for the Year Ended 31 December 2023
__________________________________________________________________________

Share capital
£

Retained earnings
£

Total
£

At 1 January 2023

300,000

3,143,999

3,443,999

Profit for the year

-

935,325

935,325

Dividends

-

(120,000)

(120,000)

At 31 December 2023

300,000

3,959,324

4,259,324



 

Share capital
£

Retained earnings
£

Total
£

At 1 January 2022

300,000

2,452,357

2,752,357

Profit for the year

-

771,642

771,642

Dividends

-

(80,000)

(80,000)

At 31 December 2022

300,000

3,143,999

3,443,999



 

 

AM Trading UK Limited

Statement of Cash Flows for the Year Ended 31 December 2023
__________________________________________________________________________

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

935,325

771,642

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

93,209

67,578

Loss on disposal of tangible assets

4

15,887

-

Finance income

6

(289)

(8)

Finance costs

7

873,154

311,221

Income tax expense

11

347,285

183,232

 

2,264,571

1,333,665

Working capital adjustments

 

Increase in stocks

13

(275,655)

(210,035)

Increase in trade debtors

14

(6,625,615)

(4,200,767)

Increase in trade creditors

16

2,331,173

935,872

Cash generated from operations

 

(2,305,526)

(2,141,265)

Income taxes paid

11

(127,859)

(118,679)

Net cash flow from operating activities

 

(2,433,385)

(2,259,944)

Cash flows from investing activities

 

Interest received

6

289

8

Acquisitions of tangible assets

(418,462)

(105,495)

Proceeds from sale of tangible assets

 

319,306

-

Net cash flows from investing activities

 

(98,867)

(105,487)

Cash flows from financing activities

 

Interest paid

7

(873,154)

(311,221)

Proceeds from bank borrowing draw downs

 

3,120,731

3,600,035

Payments to finance lease creditors

 

17,315

64,763

Dividends paid

21

(120,000)

(80,000)

Net cash flows from financing activities

 

2,144,892

3,273,577

Net (decrease)/increase in cash and cash equivalents

 

(387,360)

908,146

Cash and cash equivalents at 1 January

 

1,212,310

304,164

Cash and cash equivalents at 31 December

 

824,950

1,212,310

 

AM Trading UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023
__________________________________________________________________________

1

General information

The company is a private company limited by share capital, incorporated in United Kingdom.

The address of its registered office is:
Unit 614
Shepherds Building Charecroft Way
London
W14 0EE

The principal place of business is:
Unit 614
Shepherds Building Charecroft Way
London
W14 0EE

These financial statements were authorised for issue by the Board on 5 September 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

AM Trading UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023
__________________________________________________________________________

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures and equipment

25% reducing balance

Office equipment

25% reducing balance

Motor vehicle

25% reducing balance

Plant and machinery

25% reducing balance

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

AM Trading UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023
__________________________________________________________________________

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

AM Trading UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023
__________________________________________________________________________

Leases

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

59,805,123

36,779,395

4

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2023
£

2022
£

Loss on disposal of Tangible assets

(15,887)

-

 

AM Trading UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023
__________________________________________________________________________

5

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

93,209

67,578

Loss on disposal of property, plant and equipment

15,887

-

6

Other interest receivable and similar income

2023
£

2022
£

Other finance income

289

8

7

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

861,838

300,162

Interest on obligations under finance leases and hire purchase contracts

11,316

11,059

Foreign exchange (losses)/gains

(160,869)

420,816

712,285

732,037

8

Staff costs

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Sales, marketing and distribution

10

11

10

11

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

19,200

18,993

 

AM Trading UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023
__________________________________________________________________________

10

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

16,500

13,500


 

11

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

349,770

110,841

Deferred taxation

Arising from origination and reversal of timing differences

(2,485)

72,391

Tax expense in the income statement

347,285

183,232

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 23.5% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

1,282,610

954,874

Corporation tax at standard rate

301,413

181,426

Tax increase from effect of capital allowances and depreciation

45,872

1,806

Total tax charge

347,285

183,232

 

AM Trading UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023
__________________________________________________________________________

12

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2023

110,116

393,052

503,168

Additions

36,160

382,302

418,462

Disposals

-

(370,555)

(370,555)

At 31 December 2023

146,276

404,799

551,075

Depreciation

At 1 January 2023

95,769

117,836

213,605

Charge for the year

12,628

80,581

93,209

Eliminated on disposal

-

(35,362)

(35,362)

At 31 December 2023

108,397

163,055

271,452

Carrying amount

At 31 December 2023

37,879

241,744

279,623

At 31 December 2022

14,347

275,216

289,563

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

2023
£

2022
£

Vehicles

241,745

275,216

   

13

Stocks

2023
£

2022
£

Finished goods and goods for resale

2,240,131

1,964,476

 

AM Trading UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023
__________________________________________________________________________

14

Debtors

Current

2023
£

2022
£

Trade debtors

21,355,510

14,729,895

 

21,355,510

14,729,895

15

Cash and cash equivalents

2023
£

2022
£

Cash at bank

824,950

1,212,310

16

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

20

13,257,115

10,059,905

Trade creditors

 

5,458,503

2,824,226

Amounts due to related parties

22

273,225

246,426

Social security and other taxes

 

354,551

672,510

Other payables

 

259,471

277,415

Accruals

 

16,500

10,500

Income tax liability

11

523,992

302,081

 

20,143,357

14,393,063

Due after one year

 

Loans and borrowings

20

227,627

286,791

17

Provisions for liabilities

Deferred tax
£

Total
£

At 1 January 2023

69,906

69,906

At 31 December 2023

69,906

69,906

 

AM Trading UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023
__________________________________________________________________________

18

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £12,096 (2022 - £5,607).

 

AM Trading UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023
__________________________________________________________________________

19

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary of £1 each

300,000

300,000

300,000

300,000

       

20

Loans and borrowings

Non-current loans and borrowings

2023
£

2022
£

Hire purchase contracts

227,627

286,791

Current loans and borrowings

2023
£

2022
£

Bank borrowings

13,135,940

10,015,209

Hire purchase contracts

121,175

44,696

13,257,115

10,059,905

Bank borrowings are secured by a fixed and floating charge over the company's assets.

21

Dividends

Interim dividends paid

2023
£

2022
£

Interim dividend of 0.40 (2022 - 0.26) per each Ordinary shares

120,000

80,000

 

 
 

AM Trading UK Limited

Notes to the Financial Statements for the Year Ended 31 December 2023
__________________________________________________________________________

22

Related party transactions

Summary of transactions with entities with joint control or significant interest

Monga Tradex PVT Ltd (India)
 Sales
 Goods are sold at normal commercial terms
 

Income and receivables from related parties

2023

Entities with joint control or significant influence
£

Sale of goods

23,674,376

2022

Entities with joint control or significant influence
£

Sale of goods

9,856,121