Company registration number 08674207 (England and Wales)
MANGROVE GLOBAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
MANGROVE GLOBAL LIMITED
COMPANY INFORMATION
Directors
N J Gillett
G Gueden
(Appointed 10 February 2023)
R. Hayot
(Appointed 10 February 2023)
Secretary
Secretaries Limited, Edwin Coe
Company number
08674207
Registered office
3-4 Johnston Road
Woodford Green
IG8 0XA
Auditor
FC EXPERTISE LTD
23 Copenhagen Street
London
UK
N1 0JB
MANGROVE GLOBAL LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 5
Income statement
6
Group statement of comprehensive income
7
Group statement of financial position
8
Company statement of financial position
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Company statement of cash flows
14
Notes to the financial statements
13 - 32
MANGROVE GLOBAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Principal activities
The principal activity of the group was the importation and distribution of various spirit brands from around the world. Operating in the premium sector and across all channels, Mangrove aims to have an appropriate product in every category. During the year, Mangrove acquired a controlling stake in the company, White Label Cocktails Limited
Review of the business
We have faxed a number of economic headwind challenges from increased costs in the supply chain through to availability of stock caused by glass and demand affected by industrial action and lower consumer confidence. Despite all of this the business has performed well and managed to churn the portfolio to offer brands at the forefront of trends and ensured demand has remained strong.
With competition increasing we have seen demand weaken in some of our investment businesses and with some larger overseas markets closed for the foreseeable future we have decided to reduce the value of our investments accordingly. We will continue to review this and offer a cautious valuation.
2024 looks to be very promising and a number of new brands will join the portfolio. With currency remaining stable we expect there to be opportunities for margin enhancement and the directors will continue to look for investment or acquisition opportunities.
We believe that the business remains healthy and has bright prospects.
Principal risks and uncertainties
Competition: There is a great deal of competition from other agents as well at product level. Consolidation within the industry has seen opportunity arise for a number of small players but a lack of options for the larger mature brands. The competitive landscape will remain challenging but the current level of disruption offers a large number of opportunities.
Regulation: The industry faces increased regulation not only from HMRC but also from the increased focus on alcohol and sugar from government and health bodies. Mangrove have all the relevant certification and continue to ensure they exceed all the minimum requirements of the relevant authorities in all territories.
Foreign Exchange Fluctuations: Global events and pandemic recovery combined with central government policy have seen Sterling fluctuate against a basket of currencies. We continue to purchase currency at appropriate times to mitigate the effect of the fluctuations.
Contract expiration: As Mangrove is not a producer we have contractual relations with brands and could lose the right to represent these brands of contract negotiations are unsuccessful. Whilst this situation is currently secure, the Directors are looking at other ways to secure the distributions rights, including brand creation and taking ownership stakes in brans. We continue to have a large number of brands expressing a wish to join the portfolio.
Key performance indicators
The Directors consider the Key Indicators to be Turnover, Gross margin Operating profit which reflect the overall financial health of the business.
N J Gillett
Director
8 July 2024
MANGROVE GLOBAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Results and dividends
The loss for the period, after taxation and minority interests, amounted to £826,651 (2022 - profit £857,512).
Dividends paid to shareholders in the period totalled £nil (April 2022- £nil)
Directors
The directors who served during the period were:
N J Gillett
M. De Lassus
(Appointed 10 February 2023 and resigned 1 March 2024)
G Gueden
(Appointed 10 February 2023)
R. Hayot
(Appointed 10 February 2023)
Future developments
The Directors continue to invest and look for opportunities in the UK as well as overseas.
Auditor
The auditor, FC EXPERTISE LTD, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that;
-so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unware, and
-the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.
On behalf of the board
N J Gillett
Director
8 July 2024
MANGROVE GLOBAL LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
MANGROVE GLOBAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MANGROVE GLOBAL LIMITED
- 4 -
Opinion
We have audited the financial statements of Mangrove Global Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2023 and of the group's loss 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
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.
MANGROVE GLOBAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MANGROVE GLOBAL LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Olivier PJ Foucault (Senior Statutory Auditor)
For and on behalf of FC EXPERTISE LTD
8 July 2024
Statutory Auditor
23 Copenhagen Street
London
UK
N1 0JB
MANGROVE GLOBAL LIMITED
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
2023
2022
Notes
£
£
Revenue
7
31,106,124
15,953,782
Cost of sales
(25,343,977)
(12,406,945)
Gross profit
5,762,147
3,546,837
Distribution costs
(1,217,283)
(853,249)
Administrative expenses
(4,819,398)
(2,675,356)
Operating (loss)/profit
8
(274,534)
18,232
Investment income
12
330
27
Finance costs
13
(270,435)
(73,578)
Other gains and losses
14
(700,010)
(800,000)
Loss before taxation
(1,244,649)
(855,319)
Tax on loss
15
(19,123)
(227)
Loss for the financial year
29
(1,263,772)
(855,546)
Loss for the financial year is attributable to:
- Owners of the parent company
(1,201,208)
(826,650)
- Non-controlling interests
(62,564)
(28,896)
(1,263,772)
(855,546)
MANGROVE GLOBAL LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
£
£
Loss for the year
(1,263,772)
(855,546)
Other comprehensive income
-
-
Total comprehensive income for the year
(1,263,772)
(855,546)
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(1,201,208)
(826,650)
- Non-controlling interests
(62,564)
(28,896)
(1,263,772)
(855,546)
MANGROVE GLOBAL LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Non-current assets
Goodwill
18
1,373,736
1,610,709
Other intangible assets
18
20,478
22,550
Total intangible assets
1,394,214
1,633,259
Property, plant and equipment
19
949,479
394,786
Investments
20
700,010
2,343,693
2,728,055
Current assets
Inventories
22
5,234,008
3,456,012
Trade and other receivables
23
5,096,684
5,138,330
Cash and cash equivalents
685,709
288,306
11,016,401
8,882,648
Current liabilities
24
(12,513,785)
(9,026,598)
Net current liabilities
(1,497,384)
(143,950)
Total assets less current liabilities
846,309
2,584,105
Non-current liabilities
25
(215,245)
(645,736)
Provisions for liabilities
Deferred tax liability
27
77,006
56,142
(77,006)
(56,142)
Net assets
554,058
1,882,227
Equity
Called up share capital
28
2,333
2,333
Retained earnings
29
707,582
1,908,790
Equity attributable to owners of the parent company
709,915
1,911,123
Non-controlling interests
(155,857)
(28,896)
554,058
1,882,227
The financial statements were approved by the board of directors and authorised for issue on 8 July 2024 and are signed on its behalf by:
08 July 2024
N J Gillett
Director
Company registration number 08674207 (England and Wales)
MANGROVE GLOBAL LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Non-current assets
Intangible assets
18
20,478
22,550
Property, plant and equipment
19
240,680
7,257
Investments
20
949,958
1,649,968
1,211,116
1,679,775
Current assets
Inventories
22
4,846,862
3,164,554
Trade and other receivables
23
4,107,340
5,783,070
Cash and cash equivalents
146,298
234,637
9,100,500
9,182,261
Current liabilities
24
(8,088,294)
(7,909,574)
Net current assets
1,012,206
1,272,687
Total assets less current liabilities
2,223,322
2,952,462
Non-current liabilities
25
(215,245)
(645,736)
Net assets
2,008,077
2,306,726
Equity
Called up share capital
28
2,333
2,333
Retained earnings
29
2,005,744
2,304,393
Total equity
2,008,077
2,306,726
As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s loss for the year was £298,649 (2022 - £431,046 loss).
The financial statements were approved by the board of directors and authorised for issue on 8 July 2024 and are signed on its behalf by:
08 July 2024
N J Gillett
Director
Company registration number 08674207 (England and Wales)
MANGROVE GLOBAL LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Retained earnings
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
Balance at 1 May 2022
2,333
2,735,440
2,737,773
-
2,737,773
Year ended 31 December 2022:
Loss and total comprehensive income
-
(826,650)
(826,650)
(28,896)
(855,546)
Balance at 31 December 2022
2,333
1,908,790
1,911,123
(28,896)
1,882,227
Year ended 31 December 2023:
Loss and total comprehensive income
-
(1,201,208)
(1,201,208)
(62,564)
(1,263,772)
Other movements
-
-
-
(64,397)
(64,397)
Balance at 31 December 2023
2,333
707,582
709,915
(155,857)
554,058
MANGROVE GLOBAL LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 May 2022
2,333
2,735,439
2,737,772
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
(431,046)
(431,046)
Balance at 31 December 2022
2,333
2,304,393
2,306,726
Year ended 31 December 2023:
Profit and total comprehensive income
-
(298,649)
(298,649)
Balance at 31 December 2023
2,333
2,005,744
2,008,077
MANGROVE GLOBAL LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
2
1,276,876
590,862
Interest paid
(270,435)
(73,578)
Income taxes paid
(192,252)
(648)
Net cash inflow from operating activities
814,189
516,636
Investing activities
Purchase of intangible assets
(894)
(3,500)
Purchase of property, plant and equipment
(767,907)
(148,626)
Proceeds from disposal of property, plant and equipment
-
(8,664)
Proceeds from disposal of subsidiaries, net of cash disposed
-
455,758
Interest received
330
27
Net cash (used in)/generated from investing activities
(768,471)
294,995
Financing activities
Repayment of borrowings
(46,079)
(372,831)
Repayment of bank loans
397,764
(286,995)
Net cash generated from/(used in) financing activities
351,685
(659,826)
Net increase in cash and cash equivalents
397,403
151,805
Cash and cash equivalents at beginning of year
288,306
136,501
Cash and cash equivalents at end of year
685,709
288,306
MANGROVE GLOBAL LIMITED
GROUP STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Cash generated from operations - company
2023
2022
£
£
Loss for the year after tax
(298,649)
(431,046)
Adjustments for:
Taxation charged
149,532
92,999
Finance costs
139,267
73,733
Amortisation and impairment of intangible assets
2,966
3,200
Depreciation and impairment of property, plant and equipment
64,283
4,101
Other gains and losses
700,010
800,000
Movements in working capital:
(Increase)/decrease in inventories
(1,682,308)
369,678
Decrease/(increase) in trade and other receivables
1,675,730
(2,280,713)
(Decrease)/increase in trade and other payables
(455,542)
1,944,939
Cash generated from operations
295,289
576,891
2
Cash generated from group operations
2023
2022
£
£
Loss for the year after tax
(1,263,772)
(855,546)
Adjustments for:
Taxation charged
19,123
227
Finance costs
270,435
73,578
Investment income
(330)
(27)
Amortisation and impairment of intangible assets
175,542
118,251
Depreciation and impairment of property, plant and equipment
213,214
70,472
Other gains and losses
700,010
800,000
Movements in working capital:
(Increase)/decrease in inventories
(1,777,996)
360,773
Decrease/(increase) in trade and other receivables
41,646
(1,113,263)
Increase in trade and other payables
2,899,004
1,136,397
Cash generated from operations
1,276,876
590,862
MANGROVE GLOBAL LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
1
295,289
576,891
Interest paid
(139,267)
(73,733)
Income taxes paid
(343,524)
(93,422)
Net cash (outflow)/inflow from operating activities
(187,502)
409,736
Investing activities
Purchase of intangible assets
(894)
(3,500)
Purchase of property, plant and equipment
(297,707)
(694)
Net cash used in investing activities
(298,601)
(4,194)
Financing activities
Repayment of bank loans
397,764
(286,995)
Net cash generated from/(used in) financing activities
397,764
(286,995)
Net (decrease)/increase in cash and cash equivalents
(88,339)
118,547
Cash and cash equivalents at beginning of year
234,637
116,090
Cash and cash equivalents at end of year
146,298
234,637
MANGROVE GLOBAL LIMITED
COMPANY STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
3
Analysis of changes in net debt - company
2023
£
Opening net funds/(debt)
Cash and cash equivalents
234,637
Loans
(1,076,227)
(841,590)
Changes in net debt arising from:
Cash flows of the entity
(486,103)
Closing net funds/(debt) as analysed below
(1,327,693)
Closing net funds/(debt)
Cash and cash equivalents
146,298
Loans
(1,473,991)
(1,327,693)
4
Analysis of changes in net debt - group
2023
£
Opening net funds/(debt)
Cash and cash equivalents
288,306
Loans
(1,122,306)
(834,000)
Changes in net debt arising from:
Cash flows of the entity
45,718
Closing net funds/(debt) as analysed below
(788,282)
Closing net funds/(debt)
Cash and cash equivalents
685,709
Loans
(1,473,991)
(788,282)
MANGROVE GLOBAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
5
Accounting policies
Company information
Mangrove Global Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 3-4 Johnston Road, Essex, Woodford Green, IG8 0XA.
The group consists of Mangrove Global Limited and all of its subsidiaries.
5.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
5.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
5.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Mangrove Global Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
MANGROVE GLOBAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Accounting policies
(Continued)
- 17 -
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group statement of financial position at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
5.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
5.5
Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction: and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
5.6
Research and development expenditure
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
MANGROVE GLOBAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Accounting policies
(Continued)
- 18 -
5.7
Intangible fixed assets - goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.
5.8
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Patents & licences
6.67% straighy line
Trade Mark
N/A
5.9
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
over time of the lease
Plant and equipment
20% straight line
Fixtures and fittings
20% straight line
Computers
33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.
5.10
Non-current investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
MANGROVE GLOBAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Accounting policies
(Continued)
- 19 -
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
5.11
Impairment of non-current assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
MANGROVE GLOBAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Accounting policies
(Continued)
- 20 -
5.12
Inventories
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is 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.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
5.13
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
5.14
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
MANGROVE GLOBAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Accounting policies
(Continued)
- 21 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
MANGROVE GLOBAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Accounting policies
(Continued)
- 22 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
5.15
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
5.16
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
5.17
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
5.18
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
5.19
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
MANGROVE GLOBAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Accounting policies
(Continued)
- 23 -
5.20
Interest income is recognised in profit or loss using the effective interest method.
5.21
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
5.22
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Short-terms creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cast using the effective interest method.
6
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
7
Revenue
2023
2022
£
£
Revenue analysed by geographical market
United Kingdom
31,106,124
15,953,782
2023
2022
£
£
Other revenue
Interest income
330
27
MANGROVE GLOBAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
8
Operating (loss)/profit
2023
2022
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Exchange gains
(25,148)
-
Research and development costs
3,655
1,129
Depreciation of owned property, plant and equipment
213,214
70,472
Amortisation of intangible assets
175,542
118,251
Inventories impairment losses recognised or reversed
436
23,215
Operating lease charges
333,993
126,210
9
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
14,500
19,086
Audit of the financial statements of the company's subsidiaries
8,000
8,000
22,500
27,086
10
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
75
59
37
36
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,143,792
1,559,950
2,049,652
1,130,950
Social security costs
270,916
200,632
209,305
142,587
Pension costs
62,733
39,712
46,753
28,312
3,477,441
1,800,294
2,305,710
1,301,849
MANGROVE GLOBAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
11
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
245,209
147,292
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
12
Investment income
2023
2022
£
£
Interest income
Interest receivable from group companies
330
27
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
330
27
13
Finance costs
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
108,716
29,320
Other finance costs:
Interest on finance leases and hire purchase contracts
30,551
-
Other interest
131,168
44,258
Total finance costs
270,435
73,578
14
Other gains and losses
2023
2022
£
£
Amount written off of fixed assets
(700,010)
(800,000)
MANGROVE GLOBAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
15
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(151,273)
UK income tax
151,273
-
Total current tax
Deferred tax
Origination and reversal of timing differences
19,123
227
Total tax charge
19,123
227
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Loss before taxation
(1,244,649)
(855,319)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2022: 019%)
(311,162)
(162,511)
Tax effect of expenses that are not deductible in determining taxable profit
88,371
162,738
Unutilised tax losses carried forward
241,914
Taxation charge
19,123
227
16
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2023
2022
Notes
£
£
In respect of:
Fixed asset investments
20
700,010
800,000
Inventories
22
436
23,215
Recognised in:
Cost of sales
436
23,215
Other gains and losses
700,010
800,000
The impairment losses in respect of financial assets are recognised in other gains and losses in the income statement.
MANGROVE GLOBAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
17
Parent company profit for the year
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statements of comprehension Income in these financial statements. The loss after tax of the parent Company for the period/year was £431,046 (2022 - profit £857,512).
18
Intangible fixed assets
Group
Goodwill
Patents & licences
Trade Mark
Total
£
£
£
£
Cost
At 1 January 2023
1,725,760
44,500
3,500
1,773,760
Additions
894
894
Other changes
(64,397)
(64,397)
At 31 December 2023
1,661,363
44,500
4,394
1,710,257
Amortisation and impairment
At 1 January 2023
115,051
25,217
233
140,501
Amortisation charged for the year
172,576
2,966
175,542
At 31 December 2023
287,627
28,183
233
316,043
Carrying amount
At 31 December 2023
1,373,736
16,317
4,161
1,394,214
At 31 December 2022
1,610,709
19,283
3,267
1,633,259
Company
Patents & licences
Trade Mark
Total
£
£
£
Cost
At 1 January 2023
44,500
3,500
48,000
Additions
894
894
At 31 December 2023
44,500
4,394
48,894
Amortisation and impairment
At 1 January 2023
25,217
233
25,450
Amortisation charged for the year
2,966
2,966
At 31 December 2023
28,183
233
28,416
Carrying amount
At 31 December 2023
16,317
4,161
20,478
At 31 December 2022
19,283
3,267
22,550
MANGROVE GLOBAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
19
Property, plant and equipment
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 January 2023
40,727
344,632
44,471
78,759
508,589
Additions
12,895
774,566
19,197
806,658
Transfers
46,752
(46,752)
At 31 December 2023
53,622
1,119,198
91,223
51,204
1,315,247
Depreciation and impairment
At 1 January 2023
13,576
93,262
25,702
20,014
152,554
Depreciation charged in the year
17,874
170,292
13,528
11,520
213,214
At 31 December 2023
31,450
263,554
39,230
31,534
365,768
Carrying amount
At 31 December 2023
22,172
855,644
51,993
19,670
949,479
At 31 December 2022
27,151
292,333
12,496
62,806
394,786
Company
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2023
7,953
24,656
32,609
Additions
285,879
11,828
297,707
At 31 December 2023
285,879
7,953
36,484
330,316
Depreciation and impairment
At 1 January 2023
8,748
16,605
25,353
Depreciation charged in the year
57,176
265
6,842
64,283
At 31 December 2023
57,176
9,013
23,447
89,636
Carrying amount
At 31 December 2023
228,703
(1,060)
13,037
240,680
At 31 December 2022
(794)
8,051
7,257
MANGROVE GLOBAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
20
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
21
949,958
949,958
Unlisted investments
700,010
700,010
700,010
949,958
1,649,968
Movements in non-current investments
Group
Other investments
Other loans
Others investments
Total
£
£
£
£
Cost or valuation
At 1 January 2023 and 31 December 2023
150,010
-
-
150,010
Impairment
At 1 January 2023
(800,000)
-
-
(800,000)
Impairment losses
(700,010)
-
-
(700,010)
At 31 December 2023
(1,500,010)
-
-
(1,500,010)
Carrying amount
At 31 December 2023
-
-
-
1,650,020
At 31 December 2022
70,010
-
70,010
Movements in non-current investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2023 and 31 December 2023
949,958
1,500,010
2,449,968
Impairment
At 1 January 2023
-
(800,000)
(800,000)
Impairment losses
-
(700,010)
(700,010)
At 31 December 2023
-
(1,500,010)
(1,500,010)
Carrying amount
At 31 December 2023
949,958
-
3,949,978
At 31 December 2022
949,958
700,010
1,649,968
MANGROVE GLOBAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
21
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
White Label Cocktails Limited
England & Wales
Ordinary
91.70
22
Inventories
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
4,846,862
3,164,554
4,846,862
3,164,554
Finished goods and goods for resale
387,146
291,458
5,234,008
3,456,012
4,846,862
3,164,554
23
Trade and other receivables
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade receivables
4,285,132
4,367,222
3,395,030
4,539,663
Amounts owed by group undertakings
256,557
55,232
291,064
619,113
Other receivables
48,780
100,246
29,438
70,869
Prepayments and accrued income
506,215
615,630
391,808
553,425
5,096,684
5,138,330
4,107,340
5,783,070
24
Current liabilities
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
26
1,258,746
430,491
1,258,746
430,491
Other borrowings
26
46,079
Trade payables
2,714,338
2,766,560
1,917,452
2,262,301
Amounts owed to group undertakings
6,525,515
35,219
3,653,395
128,639
Corporation tax payable
13,877
207,870
13,877
207,870
Other taxation and social security
995,325
886,091
346,215
599,441
Other payables
772,565
4,287,316
713,140
4,018,221
Accruals and deferred income
233,419
366,972
185,469
262,611
12,513,785
9,026,598
8,088,294
7,909,574
MANGROVE GLOBAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
25
Non-current liabilities
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
26
215,245
645,736
215,245
645,736
Included within other creditors is an amount of £1,882,322 (Arpil 2022: £1,371,910) which is secured by the way of fixed and floating charge over the company's purchased debt.
26
Borrowings
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
1,473,991
1,076,227
1,473,991
1,076,227
Other loans
46,079
1,473,991
1,122,306
1,473,991
1,076,227
Payable within one year
1,258,746
476,570
1,258,746
430,491
Payable after one year
215,245
645,736
215,245
645,736
The bank loans included in the accounts is secured by a fixed and floating charge over all the assets held in the parent company.
27
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
77,006
56,142
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
56,142
-
Charge to profit or loss
20,864
-
Liability at 31 December 2023
77,006
-
MANGROVE GLOBAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
27
Deferred taxation
(Continued)
- 32 -
28
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,333
2,333
2,333
2,333
29
Reserves
Retained earnings
The profit and Loss account represents cumulative profit and loss net of dividend and other adjustments.
30
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
62,733
39,712
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in and independently administered fund.
31
Operating lease commitments
At 31 December 2022 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
84,126
33,750
75,442
-
Between two and five years
305,649
-
274,532
-
389,775
33,750
349,974
-
32
Controlling party
The ultimate controlling party is Bernard Hayot "GBH", a company incorporated in France.
Post year end the entire shareholding of Mangrove Global Limited has been purchased by Groupe Bernard Hayot "GBH", a company incorporated in France.
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.100N J GillettM. De LassusG GuedenR M J HayotG. GUEDENR. HayotM De LassusSecretaries Limited, Edwin Coefalse08674207bus:Consolidated2023-01-012023-12-31086742072023-01-012023-12-3108674207bus:Director12023-01-012023-12-3108674207bus:Director32023-01-012023-12-3108674207bus:Director62023-01-012023-12-3108674207bus:CompanySecretary12023-01-012023-12-3108674207bus:Director22023-01-012023-12-3108674207bus:Director42023-01-012023-12-3108674207bus:Director52023-01-012023-12-3108674207bus:Director72023-01-012023-12-3108674207bus:Consolidated2023-12-31086742072023-12-3108674207bus:Consolidated2022-05-012022-12-31086742072022-05-012022-12-3108674207core:Goodwillbus:Consolidated2023-12-3108674207core:Goodwillbus:Consolidated2022-12-3108674207core:OtherResidualIntangibleAssetsbus:Consolidated2023-12-3108674207core:OtherResidualIntangibleAssetsbus:Consolidated2022-12-3108674207core:OtherResidualIntangibleAssets2023-12-3108674207core:OtherResidualIntangibleAssets2022-12-3108674207core:PatentsTrademarksLicencesConcessionsSimilarbus:Consolidated2023-12-3108674207core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2023-12-3108674207core:PatentsTrademarksLicencesConcessionsSimilarbus:Consolidated2022-12-3108674207core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2022-12-3108674207bus:Consolidated2022-12-3108674207core:PatentsTrademarksLicencesConcessionsSimilar2023-12-3108674207core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-12-3108674207core:PatentsTrademarksLicencesConcessionsSimilar2022-12-3108674207core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-12-31086742072022-12-3108674207core:LeaseholdImprovementsbus:Consolidated2023-12-3108674207core:PlantMachinerybus:Consolidated2023-12-3108674207core:FurnitureFittingsbus:Consolidated2023-12-3108674207core:ComputerEquipmentbus:Consolidated2023-12-3108674207core:LeaseholdImprovementsbus:Consolidated2022-12-3108674207core:PlantMachinerybus:Consolidated2022-12-3108674207core:FurnitureFittingsbus:Consolidated2022-12-3108674207core:ComputerEquipmentbus:Consolidated2022-12-3108674207core:PlantMachinery2023-12-3108674207core:FurnitureFittings2023-12-3108674207core:ComputerEquipment2023-12-3108674207core:PlantMachinery2022-12-3108674207core:FurnitureFittings2022-12-3108674207core:ComputerEquipment2022-12-3108674207core:ShareCapitalbus:Consolidated2023-12-3108674207core:ShareCapitalbus:Consolidated2022-12-3108674207core:ShareCapital2023-12-3108674207core:ShareCapital2022-12-3108674207core:RetainedEarningsAccumulatedLosses2023-12-3108674207core:ShareCapitalbus:Consolidated2022-04-3008674207core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-04-3008674207core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-12-3108674207core:Non-controllingInterestsbus:Consolidated2022-12-3108674207core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-12-3108674207core:Non-controllingInterestsbus:Consolidated2023-12-3108674207core:ShareCapital2022-04-3008674207core:RetainedEarningsAccumulatedLosses2022-04-3008674207core:RetainedEarningsAccumulatedLosses2022-12-3108674207bus:Consolidated2022-04-3008674207core:Goodwill2023-01-012023-12-3108674207core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3108674207core:PatentsTrademarksLicencesConcessionsSimilar2023-01-012023-12-3108674207core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-01-012023-12-3108674207core:LeaseholdImprovements2023-01-012023-12-3108674207core:PlantMachinery2023-01-012023-12-3108674207core:FurnitureFittings2023-01-012023-12-3108674207core:ComputerEquipment2023-01-012023-12-3108674207core:UKTaxbus:Consolidated2023-01-012023-12-3108674207core:UKTaxbus:Consolidated2022-05-012022-12-3108674207core:Goodwillbus:Consolidated2022-12-3108674207core:PatentsTrademarksLicencesConcessionsSimilarbus:Consolidated2022-12-3108674207core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2022-12-3108674207bus:Consolidated2022-12-3108674207core:PatentsTrademarksLicencesConcessionsSimilar2022-12-3108674207core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-12-31086742072022-12-3108674207core:Goodwillcore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2023-01-012023-12-3108674207core:PatentsTrademarksLicencesConcessionsSimilarcore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2023-01-012023-12-3108674207core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillcore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2023-01-012023-12-3108674207core:ExternallyAcquiredIntangibleAssetsbus:Consolidated2023-01-012023-12-3108674207core:PatentsTrademarksLicencesConcessionsSimilarcore:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3108674207core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillcore:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3108674207core:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3108674207core:Goodwillbus:Consolidated2023-01-012023-12-3108674207core:PatentsTrademarksLicencesConcessionsSimilarbus:Consolidated2023-01-012023-12-3108674207core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2023-01-012023-12-3108674207core:LeaseholdImprovementsbus:Consolidated2022-12-3108674207core:PlantMachinerybus:Consolidated2022-12-3108674207core:FurnitureFittingsbus:Consolidated2022-12-3108674207core:ComputerEquipmentbus:Consolidated2022-12-3108674207core:PlantMachinery2022-12-3108674207core:FurnitureFittings2022-12-3108674207core:ComputerEquipment2022-12-3108674207core:LeaseholdImprovementsbus:Consolidated2023-01-012023-12-3108674207core:PlantMachinerybus:Consolidated2023-01-012023-12-3108674207core:FurnitureFittingsbus:Consolidated2023-01-012023-12-3108674207core:ComputerEquipmentbus:Consolidated2023-01-012023-12-3108674207core:UnlistedNon-exchangeTradedbus:Consolidated2023-12-3108674207core:UnlistedNon-exchangeTradedbus:Consolidated2022-12-3108674207core:UnlistedNon-exchangeTraded2023-12-3108674207core:UnlistedNon-exchangeTraded2022-12-3108674207core:CurrentFinancialInstruments2023-12-3108674207core:CurrentFinancialInstruments2022-12-3108674207core:CurrentFinancialInstrumentsbus:Consolidated2023-12-3108674207core:CurrentFinancialInstrumentsbus:Consolidated2022-12-3108674207core:WithinOneYearbus:Consolidated2023-12-3108674207core:WithinOneYearbus:Consolidated2022-12-3108674207core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3108674207core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3108674207core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-12-3108674207core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2022-12-3108674207core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3108674207core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3108674207core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-12-3108674207core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-12-3108674207bus:PrivateLimitedCompanyLtd2023-01-012023-12-3108674207bus:FRS1022023-01-012023-12-3108674207bus:Audited2023-01-012023-12-3108674207bus:ConsolidatedGroupCompanyAccounts2023-01-012023-12-3108674207bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP