Company Registration No. 01205689 (England and Wales)
MAXXIS INTERNATIONAL (UK) LTD
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
LB GROUP
80 Compair Crescent
Ipswich
Suffolk
UK
IP2 0EH
MAXXIS INTERNATIONAL (UK) LTD
CONTENTS
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 10
MAXXIS INTERNATIONAL (UK) LTD
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,707,671
1,839,246
Investments
5
50,000
50,000
1,757,671
1,889,246
Current assets
Stocks
2,374,440
2,302,439
Debtors
7
674,526
695,103
Cash at bank and in hand
3,694
10,075
3,052,660
3,007,617
Creditors: amounts falling due within one year
8
(1,621,254)
(1,337,971)
Net current assets
1,431,406
1,669,646
Total assets less current liabilities
3,189,077
3,558,892
Creditors: amounts falling due after more than one year
9
(429,502)
(613,613)
Provisions for liabilities
(20,879)
(28,461)
Net assets
2,738,696
2,916,818
Capital and reserves
Called up share capital
112,381
112,381
Share premium account
633,629
633,629
Revaluation reserve
894,499
954,143
Profit and loss reserves
1,098,187
1,216,665
Total equity
2,738,696
2,916,818
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
MAXXIS INTERNATIONAL (UK) LTD
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023
31 December 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 21 May 2024 and are signed on its behalf by:
Mr D McMartin
Director
Company Registration No. 01205689
MAXXIS INTERNATIONAL (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information
Maxxis International (UK) Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Carr Road, Felixstowe, Suffolk, IP11 3RX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The 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. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.
Turnover for the company is derived from the wholesale/trade distribution of motorcycle parts, clothing and accessories, and a range of tyres.
Turnover from the sales of these goods and services is recognised when the company has transferred the significant risks and rewards of ownership to the buyer and it is probable that the company will receive the previously agreed upon payment. These criteria are considered to be met, and invoices are raised and recorded upon dispatch of the goods.
Commissions received are recognised on an accruals basis, in the period to which they relate.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold property
straight line basis over 25 years
Plant and equipment
15% on reducing balance basis
Computers
33.3% straight line
Motor vehicles
25% on reducing balance basis
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 credited or charged to profit or loss.
MAXXIS INTERNATIONAL (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
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 company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
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.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
MAXXIS INTERNATIONAL (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.8
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.
1.9
Financial instruments
The company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, 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 creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.10
Equity instruments
Equity instruments issued by the company 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 company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
MAXXIS INTERNATIONAL (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
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 company’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 when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
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 fixed 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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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 leases asset are consumed.
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
MAXXIS INTERNATIONAL (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 7 -
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
30
32
MAXXIS INTERNATIONAL (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
4
Tangible fixed assets
Freehold property
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 January 2023
2,612,918
679,981
819,586
42,155
4,154,640
Additions
15,718
15,718
Disposals
(533,711)
(26,955)
(560,666)
Transfers
40,360
40,360
At 31 December 2023
2,612,918
736,059
285,875
15,200
3,650,052
Depreciation and impairment
At 1 January 2023
900,909
614,788
763,529
36,168
2,315,394
Depreciation charged in the year
104,517
11,115
35,361
1,284
152,277
Eliminated in respect of disposals
(11,331)
(537,671)
(25,784)
(574,786)
Transfers
49,496
49,496
At 31 December 2023
1,054,922
614,572
261,219
11,668
1,942,381
Carrying amount
At 31 December 2023
1,557,996
121,487
24,656
3,532
1,707,671
At 31 December 2022
1,712,009
65,193
56,057
5,987
1,839,246
In 2014 a full independent valuation was performed by Birchall Steel Consulted Surveyors (FRICS) who have identified the combined Felixstowe land and buildings to be valued at £2,250,000 as at 31 December 2013. This valuation was updated by Birchall Steel Consultant Surveyors by way of a desktop valuation in May 2020 and an informal update in September 2022.
The directors have assessed the value of Felixstowe land and building at 31 December 2023 and in their opinion the current valuation of this property remains appropriate at 31 December 2023.
In the opinion of the directors, the valuation of the other land and buildings has not materially changed
since they were acquired on 31 August 2016.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Freehold property
2023
2022
£
£
Cost
1,395,246
1,395,246
Accumulated depreciation
(681,739)
(637,091)
Carrying value
713,507
758,155
MAXXIS INTERNATIONAL (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
50,000
50,000
6
Joint ventures
The figures in relation to Bickers Dornan Wholesale Limited are unaudited. At 31 December 2023, Bickers Dornan Wholesale Limited had net assets of £381,290 (2022 - £330,218) and made a profit after taxation of £51,072 (2022 - £21,358).
Details of the company's joint ventures at 31 December 2023 are as follows:
Name of undertaking
Registered office
Nature of business
Interest
% Held
held
Direct
Bickers Dornan Wholsesale Limited
2nd Floor Gortalowry House, 94 Church Street, Cookstown, County Tyrone, Northern Ireland, BT80 8HX
Wholesale/trade distribution of motorcycle parts, clothing and accessories and a range of tyres
Ordinary
50.00
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
611,058
630,853
Other debtors
63,468
64,250
674,526
695,103
8
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
585,641
473,730
Trade creditors
511,658
418,100
Taxation and social security
295,703
118,090
Other creditors
228,252
328,051
1,621,254
1,337,971
The bank loans and overdraft were secured by a legal charge and a debenture over all assets of the company including freehold property.
MAXXIS INTERNATIONAL (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
9
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
429,502
613,613
The bank loans and overdraft were secured by a legal charge and a debenture over all assets of the company including freehold property.
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
65,833
139,986
11
Related party transactions
Transactions with Cheng Shin Rubber Industry Co. Limited, a 19.99% shareholder of Maxxis International (UK) Ltd, including transfer of goods and contribution for marketing expenses during the year ended 31 December 2023 totalled £720,510 (2022 - £655,778). At 31 December 2023, £152,580 (2022 - £51,155) was owed to Cheng Shin Rubber Industry Co. Limited.
Transactions with subsidiaries and associates of Cheng Shin Rubber Industry Co. Limited for transfer of goods during the year ended 31 December 2023 totalled £1,682,908 (2022 - £1,387,739). At 31 December 2023, £155,731 (2022 - £161,733) was owed to subsidiaries and associates of Cheng Shin Industry Co. Limited.
Sales of £186,552 (2022 - £218,049) were made during the year by Maxxis International (UK) Ltd to Bickers Dornan Wholesale Limited, a joint venture. At 31 December 2023, £19,879 (2022 - £27,176) was owed to Maxxis International (UK) Ltd.
Loans and transactions concerning shareholders of the company
As at 31 December 2023, £108,172 (2022 - £110,045 ) was due to directors of the company, in respect of Directors loans, as included within other loans. The maximum amount outstanding during the year was £110,045 (2022 - £115,788). During the year, an amount of £6,196 (2022 - £3,259) was paid to Directors in respect of interest on these loans, which is payable on the unpaid principal at a rate of 2.5% above UK bank base rate per annum.
Key management personnel include all directors of the company, and a number of senior management, who together have authority and responsibility for planning, directing and controlling the activities of the company. The total compensation paid to key management personnel for services provided to the company was £461,611 (2022 - £486,595). A director of the company received no emoluments for their services to the company in either financial period presented, this director was paid through Cheng Shin Rubber Industry Co. Limited and subsidiaries and associates of Cheng Shin Rubber Industry Co. Limited.
12
Controlling party
In the opinion of the directors there is no controlling party.
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