Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31falseNo description of principal activityfalse2023-01-019197false 3931782 2023-01-01 2023-12-31 3931782 2022-01-01 2022-12-31 3931782 2023-12-31 3931782 2022-12-31 3931782 2022-01-01 3931782 1 2023-01-01 2023-12-31 3931782 1 2022-01-01 2022-12-31 3931782 3 2023-01-01 2023-12-31 3931782 3 2022-01-01 2022-12-31 3931782 5 2023-01-01 2023-12-31 3931782 5 2022-01-01 2022-12-31 3931782 d:Exceptional 2023-01-01 2023-12-31 3931782 d:Exceptional 2022-01-01 2022-12-31 3931782 e:Director1 2023-01-01 2023-12-31 3931782 e:Director1 2023-12-31 3931782 e:Director2 2023-01-01 2023-12-31 3931782 e:Director2 2023-12-31 3931782 e:Director4 2023-01-01 2023-12-31 3931782 e:Director6 2023-01-01 2023-12-31 3931782 e:Director7 2023-01-01 2023-12-31 3931782 e:Director8 2023-01-01 2023-12-31 3931782 e:Director9 2023-01-01 2023-12-31 3931782 e:Director9 2023-12-31 3931782 e:RegisteredOffice 2023-01-01 2023-12-31 3931782 e:Agent1 2023-01-01 2023-12-31 3931782 d:Buildings 2023-01-01 2023-12-31 3931782 d:Buildings 2023-12-31 3931782 d:Buildings 2022-12-31 3931782 d:Buildings d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 3931782 d:LandBuildings 2023-12-31 3931782 d:LandBuildings 2022-12-31 3931782 d:PlantMachinery 2023-01-01 2023-12-31 3931782 d:PlantMachinery 2023-12-31 3931782 d:PlantMachinery 2022-12-31 3931782 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 3931782 d:MotorVehicles 2023-01-01 2023-12-31 3931782 d:MotorVehicles 2023-12-31 3931782 d:MotorVehicles 2022-12-31 3931782 d:MotorVehicles d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 3931782 d:FurnitureFittings 2023-01-01 2023-12-31 3931782 d:FurnitureFittings 2023-12-31 3931782 d:FurnitureFittings 2022-12-31 3931782 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 3931782 d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 3931782 d:PatentsTrademarksLicencesConcessionsSimilar 2023-12-31 3931782 d:PatentsTrademarksLicencesConcessionsSimilar 2022-12-31 3931782 d:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-12-31 3931782 d:DevelopmentCostsCapitalisedDevelopmentExpenditure 2022-12-31 3931782 d:CurrentFinancialInstruments 2023-12-31 3931782 d:CurrentFinancialInstruments 2022-12-31 3931782 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 3931782 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 3931782 d:ShareCapital 2023-12-31 3931782 d:ShareCapital 2022-12-31 3931782 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 3931782 d:RetainedEarningsAccumulatedLosses 2023-12-31 3931782 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 3931782 d:RetainedEarningsAccumulatedLosses 2022-12-31 3931782 d:RetainedEarningsAccumulatedLosses 2022-01-01 3931782 d:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-01-01 2023-12-31 3931782 d:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-12-31 3931782 d:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2022-12-31 3931782 e:OrdinaryShareClass1 2023-01-01 2023-12-31 3931782 e:OrdinaryShareClass1 2023-12-31 3931782 e:OrdinaryShareClass1 2022-12-31 3931782 e:FRS102 2023-01-01 2023-12-31 3931782 e:Audited 2023-01-01 2023-12-31 3931782 e:FullAccounts 2023-01-01 2023-12-31 3931782 e:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 3931782 d:WithinOneYear 2023-12-31 3931782 d:WithinOneYear 2022-12-31 3931782 d:BetweenOneFiveYears 2023-12-31 3931782 d:BetweenOneFiveYears 2022-12-31 3931782 d:MoreThanFiveYears 2023-12-31 3931782 d:MoreThanFiveYears 2022-12-31 3931782 d:PatentsTrademarksLicencesConcessionsSimilar d:ExternallyAcquiredIntangibleAssets 2023-01-01 2023-12-31 3931782 d:DevelopmentCostsCapitalisedDevelopmentExpenditure d:ExternallyAcquiredIntangibleAssets 2023-01-01 2023-12-31 3931782 4 2023-01-01 2023-12-31 3931782 d:ExternallyAcquiredIntangibleAssets 2023-01-01 2023-12-31 3931782 d:PatentsTrademarksLicencesConcessionsSimilar d:OwnedIntangibleAssets 2023-01-01 2023-12-31 3931782 d:DevelopmentCostsCapitalisedDevelopmentExpenditure d:OwnedIntangibleAssets 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure
Company registration number: 3931782







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023


MOSS EUROPE LIMITED






































                        

 


MOSS EUROPE LIMITED
 


 
COMPANY INFORMATION


Directors
N C Lavender 
W Houchin 
E Moss 
F Lynch 
J McDonough (appointed 8 April 2024)




Registered number
3931782



Registered office
16 Hampton Business Park
Bolney Way

Feltham

Middlesex

TW13 6DB




Independent auditor
Menzies LLP
Chartered Accountants & Statutory Auditor

Lynton House

7-12 Tavistock Square

London

WC1H 9LT




Bankers
Barclays Bank PLC
8 George Street

Richmond

Surrey

TW9 1JL




Solicitors
Howard Kennedy
No. 1 London Bridge

London

SE1 9BG





 


MOSS EUROPE LIMITED
 



CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditor's Report
 
5 - 8
Statement of Income and Retained Earnings
 
9
Statement of Financial Position
 
10
Statement of Cash Flows
 
11
Analysis of Net Debt
 
12
Notes to the Financial Statements
 
13 - 23


 


MOSS EUROPE LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal activities and strategic report
 
The principal activity of the company continued to be that of distribution and manufacture of parts and accessories for classic and sports cars. The company operates a branch in Paris, France in addition to its other activities.


Business review and key financial performance indicators

Turnover rose in 2023 increasing by 5.6% from the previous year. Primary factors for this increase were more focus on recovering lost European business together with concentration on better pricing .
In addition to Turnover and gross profit, the key financial ratios used by management are:

2023
2022
Margin of safety

-19.49%

-42.84%
 
Return on assets

-34.62%

-45.24%
 
Current ratio

1.44

1.71
 
Debtor days

11.16

14.93
 
Stock turns

1.32

1.28
 

 
The Company made a loss in 2023, primarily due to the drop in European turnover.
Debtor days remain at an exceptional level due to a favourable debtor collection position.
The Company’s net asset position fell to £3m. However, the directors expect this to improve during the next period due to a budgeted recovery in turnover and margin in 2024.
Environmental and Health and Safety
We continue to monitor activities which could lead to an environmental impact. We have had a Health and Safety Policy in place for a number of years. Our Health and Safety Officer liaises with site based safety representatives and organises health, safety and risk assessment courses as appropriate. We use external experts as and when required.
Risks facing the business
The Company has a location based management structure supported by a head office function as we believe that this is the most appropriate way to manage day to day business activities and risks. Each of the sites are managed by a site manager and local support team.
The head office function is responsible for managing corporate risk. We have service risk management processes that are reviewed on a regular basis and, where applicable, staff are properly trained and qualified to work in regulated areas in accordance with guidelines.
The chief market risk we face is our ability to grow profitable sales in a niche market and we are continually looking for new niche areas to explore within our current area of expertise.
The Company will continue to review its business to ensure the best use is made of its assets and this will include customer service enhancement.



Page 1

 


MOSS EUROPE LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Financial Instruments

The principal financial instruments of the company comprise bank balances, trade debtors, and trade creditors. The main purpose is to raise funds for the company's operations.
Credit risk
The company's maximum exposure to credit risk in relation to financial assets is represented by bank balances and cash,
trade and other receivables. The company's risk is primarily attributable to its trade receivables and the amounts presented
in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an
identified loss event which, based on previous experience, is evidence of a reduction in the recovery of the asset. The company has adopted a policy of only dealing with creditworthy counterparties as a means of mitigating the risk of financial
loss.
Liquidity risk and cash flow risk
The Company's policy on liquidity risk is to ensure that significant cash is available to fund on-going operations. The Company manages its cash flow risk by reviewing cash flow forecasts on a monthly basis and regularly reviewing required capital facilities to identify if external facilities are required. The Company has a revolving credit facility through their Parent Company which they can access to manage cash flow.
Foreign currency risk
The Company's principal foreign currency exposures arise from trade with overseas companies. The Company manages its exposure to foreign currency risk by using foreign currency accounts.
Other risk areas
Moss Europe continues to actively take all measures possible to limit the disruptive impact of Covid-19.  The directors believe that we have sufficient resources and support in place for the consequences of Covid-19 not to impact on the going concern status of the company. We continue to monitor the situation on a daily basis following guidelines supplied by the UK government and Public Health England.


This report was approved by the board and signed on its behalf.



N C Lavender
Director

Date: 5 September 2024

Page 2

 


MOSS EUROPE LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements 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 financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Directors

The directors who served during the year were:

G D Adams (resigned 8 April 2024)
R A Goldman (resigned 8 April 2024)
N C Lavender 
W Houchin 
E Moss 
F Lynch 


Dividends

The directors do not recommend the payment of a dividend.

Future developments

Moss Europe Limited is always seeking potential acquisition opportunities in order to expand the business and improve efficiencies.


Disclosure of information in the strategic report

In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors‘ Report) Regulations 2013 the Strategic Report preceding the Directors‘ Report includes information that would have formerly been included in the business review and principal risks and uncertainties of the Directors‘ Report.

Page 3

 


MOSS EUROPE LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information 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's auditor is unaware, 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's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditor

The auditor, Menzies LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





N C Lavender
Director

Date: 5 September 2024

Page 4

 


MOSS EUROPE LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MOSS EUROPE LIMITED

Opinion


We have audited the financial statements of Moss Europe Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position, the Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its 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.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information


The 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 ReportOur 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.


Page 5

 


MOSS EUROPE LIMITED


 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MOSS EUROPE LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the 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.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the 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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Page 6

 


MOSS EUROPE LIMITED


 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MOSS EUROPE LIMITED (CONTINUED)

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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant:

The Companies Act 2006;
Financial Reporting Standard 102;
UK employment legislation;
General Data Protection Regulations;
UK tax legislation;
French trade code;
French tax code; and
French labour code.

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
We understood how the Company is complying with those legal and regulatory frameworks by making inquiries to management and those responsible for legal and compliance procedures.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. She did not identify any issues in this area.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
Challenging assumptions and judgements made by management in its significant accounting estimates; and
Identifying and testing journal entries, in particular any journal entries posted outside of the normal working patterns of the accounts team, or with unusual descriptions or account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation or fraud and identified the greatest potential for fraud in the following areas:

The application of inappropriate judgements or estimation to manipulate the financial position in the calculation of the year end stock provisions;
The posting of unusual journals and complex transactions; or
The use of management override of controls to manipulate results.
 


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring
Page 7

 


MOSS EUROPE LIMITED


 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MOSS EUROPE LIMITED (CONTINUED)

due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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.





Sarah Hallam FCCA (Senior Statutory Auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants & Statutory Auditor
  
Lynton House
7-12 Tavistock Square
London
WC1H 9LT

13 September 2024
Page 8

 


MOSS EUROPE LIMITED
 


 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 3 
15,747,166
14,907,417

Cost of sales
  
(10,334,614)
(10,337,532)

Gross profit
  
5,412,552
4,569,885

Administrative expenses
  
(6,900,775)
(6,401,259)

Exceptional administrative expenses
 11 
427,015
(128,662)

Other operating income
 4 
6,156
2,334

Operating loss
 5 
(1,055,052)
(1,957,702)

Interest payable and similar expenses
 9 
(224,800)
(53,743)

Loss before tax
  
(1,279,852)
(2,011,445)

Tax on loss
 10 
-
(11,512)

Loss after tax
  
(1,279,852)
(2,022,957)

  

  

Retained earnings at the beginning of the year
  
2,327,282
4,350,239

  
2,327,282
4,350,239

Loss for the year
  
(1,279,852)
(2,022,957)

Retained earnings at the end of the year
  
1,047,430
2,327,282
The notes on pages 13 to 23 form part of these financial statements.

Page 9

 


MOSS EUROPE LIMITED
REGISTERED NUMBER:3931782



STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 12 
523,096
521,958

Tangible assets
 13 
222,288
399,374

  
745,384
921,332

Current assets
  

Stocks
 14 
7,065,640
7,274,778

Debtors: amounts falling due within one year
 15 
1,202,685
1,462,226

Cash at bank and in hand
 16 
314,954
206,692

  
8,583,279
8,943,696

Creditors: amounts falling due within one year
 17 
(5,975,516)
(5,237,196)

Net current assets
  
 
 
2,607,763
 
 
3,706,500

Total assets less current liabilities
  
3,353,147
4,627,832

Provisions for liabilities
  

Other provisions
 18 
(305,717)
(300,550)

  
 
 
(305,717)
 
 
(300,550)

Net assets
  
3,047,430
4,327,282


Capital and reserves
  

Called up share capital 
 19 
2,000,000
2,000,000

Profit and loss account
  
1,047,430
2,327,282

  
3,047,430
4,327,282


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




N C Lavender
Director

Date: 5 September 2024

The notes on pages 13 to 23 form part of these financial statements.

Page 10

 


MOSS EUROPE LIMITED
 



STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Loss for the financial year
(1,279,852)
(2,022,957)

Adjustments for:

Amortisation of intangible assets
255,591
180,416

Depreciation of tangible assets
144,509
181,773

Profit on disposal of tangible assets
(427,015)
(12,333)

Interest paid
224,800
53,743

Taxation charge
-
11,512

Decrease/(increase) in stocks
209,132
(1,916,743)

Decrease/(increase) in debtors
301,122
(158,648)

(Increase)/decrease in amounts owed by groups
(41,575)
13,939

(Decrease)/increase in creditors
(463,076)
333,674

(Decrease)/increase in amounts owed to groups
(165,402)
124,140

Increase in provisions
5,167
4,675

Corporation tax received
-
222,616

Net cash generated from operating activities

(1,236,599)
(2,984,193)


Cash flows from investing activities

Purchase of intangible fixed assets
(256,729)
(234,979)

Purchase of tangible fixed assets
(47,383)
(80,485)

Sale of tangible fixed assets
506,975
26,249

Net cash from investing activities

202,863
(289,215)

Cash flows from financing activities

New secured loans
-
3,300,000

Repayment of loans
(900,000)
(3,150,000)

Loan from Parent Company
2,245,068
2,800,000

Interest paid
(203,070)
(34,211)

Net cash used in financing activities
1,141,998
2,915,789

Net increase/(decrease) in cash and cash equivalents
108,262
(357,619)

Cash and cash equivalents at beginning of year
206,692
564,311

Cash and cash equivalents at the end of year
314,954
206,692


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
314,954
206,692

314,954
206,692


The notes on pages 13 to 23 form part of these financial statements.

Page 11

 


MOSS EUROPE LIMITED
 



ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

206,692

108,262

314,954

Debt due within 1 year - Bank loans

(900,000)

900,000

-

Debt due within 1 year - Parent Company

(2,800,000)

(2,245,068)

(5,045,068)


(3,493,308)
(1,236,806)
(4,730,114)

The notes on pages 13 to 23 form part of these financial statements.

Page 12

 


MOSS EUROPE LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General Information

Moss Europe Limited is a private company limited by shares incorporated in England & Wales under the Companies Act. The address of the registered office and the company's registered number is given on the company information page. .

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The financial statements are prepared in sterling, which is the functional currency of the entity.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.

The following principal accounting policies have been applied:

  
2.2

Going concern

Radial Equity has confirmed that it will continue to provide financial support to the company to enable it to meet its liabilities as they fall due for a period of 12 months from the date of signing of the financial statements. They have also confirmed that they will not recall any amounts owed to them until the company has sufficient liquid resources to ensure that any repayment will not impair the company’s ability to meet the payment of its third party liabilities as they fall due. The directors have prepared projections which indicate ongoing improvement in the financial performance of the business. 
The directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements, and therefore have prepared the financial statements on a going concern basis.

  
2.3

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

  

Significant judgements

The directors do not consider there to be any significant judgements (apart from those involving estimations) used in the process of applying the entity's accounting policies.

Page 13

 


MOSS EUROPE LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
Impairment of Inventories
The management include impairment provisions based on the age of the individual lines of inventory and whether there have sales in the year. Where there have been a low number of sales of an inventory line during the year, the items are written down by between 75% and 100%. Where they have been no sales in the last two years and management consider that there will be no future sales, the item is fully written off.

  
2.4

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

  
2.5

Corporation tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.
Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

  
2.6

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying a monthly fixed exchange rate in the month in which the transaction occurred, the fixed rate is based on the average exchange rate at the time. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

  
2.7

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Page 14

 


MOSS EUROPE LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.8

Intangible assets

Expenditure incurred to register trademarks is capitalised and held as an intangible asset where future income is expected to be received from the country of registration. All costs associated with maintaining and defending registered trademarks are written off as they are incurred.
Both trademarks and technology included in intangible assets are amortised over 3 years as this is deemed to be the estimated life of these assets. 
Technology includes computer software which is now being amortised as it was in full use throughout the financial year.
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

 

Depreciation

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

The estimated useful lives range as follows:

Freehold buildings
-
50 years
Plant and machinery
-
between 3 and 5 years
Motor vehicles
-
4 years
Fixtures and fittings
-
between 3 and 5 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.10

Stocks

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 weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting 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.

Page 15

 


MOSS EUROPE LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.11

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.
The company recognises a provision in respect of dilapidation costs that will become payable at the end of property leases. These are a best estimate of the amount that will be required to settle the obligation at the reporting date and are subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation.

 
2.12

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.


3.


Turnover

The whole of the turnover is attributable to the sale of goods. The geographical analysis of turnover has not been given as in the opinion of the directors such disclosure would be seriously prejudicial to the interests of the company.


4.


Other operating income

2023
2022
£
£

Other operating income
6,156
2,334

6,156
2,334



5.


Operating loss

The operating loss is stated after charging:

2023
2022
£
£

Exchange differences
35,277
(44,203)

Other operating lease rentals
720,343
689,320


6.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


2023
2022
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
27,850
26,875
Page 16

 


MOSS EUROPE LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Particulars of Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
3,292,949
3,117,076

Social security costs
389,825
394,888

Cost of defined contribution scheme
110,870
113,965

3,793,644
3,625,929


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Management staff
15
15



Sales and marketing
26
29



Warehouse
34
37



Research and Development
7
7



Purchasing
4
4



Finance and I.T
5
5

91
97


8.


Directors' remuneration

The directors aggregate remuneration in respect of qualifying services was:


2023
2022
£
£

Directors' emoluments
305,486
352,555

Company contributions to defined contribution pension schemes
28,572
24,388

334,058
376,943


During the year retirement benefits were accruing to 3 directors (2022 - 4) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £113,150 (2022 - ££111,285).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £5,582 (2022 - £16,851).

The directors are considered to be the key management personnel. 

Page 17

 


MOSS EUROPE LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Interest payable

2023
2022
£
£


Bank interest payable
47,059
34,211

Group interest payable
177,741
19,532

224,800
53,743


10.


Taxation


2023
2022
£
£



Total current tax
-
-

Deferred tax


Origination and reversal of timing differences
-
11,512

Total deferred tax
-
11,512


Taxation on profit on ordinary activities
-
11,512

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Loss on ordinary activities before tax
(1,279,852)
(2,022,957)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
(243,172)
(384,362)

Effects of:


Expenses not deductible for tax purposes
526
1,125

Capital allowances for year in excess of depreciation
(59,920)
17,465

Capital gains
61,894
-

Double taxation relief
(82,989)
(21,672)

Tax losses for which no deferred tax recognised
240,672
377,284

Foreign tax paid
82,989
21,672

Total tax charge for the year
-
11,512

Page 18

 


MOSS EUROPE LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
10.Taxation (continued)


Factors that may affect future tax charges

Changes to the UK corporation tax rates were substantively enacted as part of Finance Bill 2021 on 10 June 2021.
These include increment of the rate of corporation tax to 25 percent from 19 percent from April 2023.


11.


Exceptional items

2023
2022
£
£


Profit on sale of property
(427,015)
-

Redundancy Costs
-
128,662

(427,015)
128,662

.


12.


Intangible assets




Patents
Development expenditure
Total

£
£
£



Cost


At 1 January 2023
41,625
1,107,027
1,148,652


Additions
-
256,729
256,729



At 31 December 2023

41,625
1,363,756
1,405,381



Amortisation


At 1 January 2023
41,625
585,069
626,694


Charge for the year on owned assets
-
255,591
255,591



At 31 December 2023

41,625
840,660
882,285



Net book value



At 31 December 2023
-
523,096
523,096



At 31 December 2022
-
521,958
521,958



Page 19

 


MOSS EUROPE LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Tangible fixed assets





Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
100,352
175,605
125,802
1,676,532
2,078,291


Additions
-
-
24,799
22,584
47,383


Disposals
(100,352)
(4,750)
(12,190)
(42,893)
(160,185)



At 31 December 2023

-
170,855
138,411
1,656,223
1,965,489



Depreciation


At 1 January 2023
34,360
173,361
92,726
1,378,470
1,678,917


Charge for the year on owned assets
750
577
18,676
124,506
144,509


Disposals
(35,110)
(3,083)
(12,190)
(29,842)
(80,225)



At 31 December 2023

-
170,855
99,212
1,473,134
1,743,201



Net book value



At 31 December 2023
-
-
39,199
183,089
222,288



At 31 December 2022
65,992
2,244
33,076
298,062
399,374




The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Freehold
-
65,992

-
65,992



14.


Stocks

2023
2022
£
£

Finished goods and goods for resale
7,065,640
7,274,778

7,065,640
7,274,778


The carrying value of stocks are stated net of stock provisions totaling £789,651 (2022 - £810,149). 

Page 20

 


MOSS EUROPE LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Debtors

2023
2022
£
£


Trade debtors
481,296
609,765

Amounts owed by group undertakings
41,575
-

Other debtors
311,987
486,261

Prepayments and accrued income
367,827
366,200

1,202,685
1,462,226



16.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
314,954
206,692

314,954
206,692



17.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
-
900,000

Payments received on account
52,220
118,840

Trade creditors
416,160
557,321

Amounts owed to group undertakings
-
143,672

Loan owed to Parent Company
5,045,068
2,800,000

Other taxation and social security
131,692
122,458

Other creditors
17,153
33,125

Accruals and deferred income
313,223
561,780

5,975,516
5,237,196


Page 21

 


MOSS EUROPE LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


Provisions


Dilapidation

£





At 1 January 2023
300,550


Charged to profit or loss
5,167



At 31 December 2023
305,717

The dilapidation provision relates to property where the lease expires on 31 March 2026.




19.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



2,000,000 (2022 - 2,000,000) Ordinary shares of £1.00 each
2,000,000
2,000,000



20.


Reserves

Profit and loss account
This reserve records retained earnings and accumulated losses.


21.


Pension commitments

The company operates a defined contribution scheme for certain employees. The assets of this scheme are held separately from those of the company in an independent administered fund.
As at 31 December 2023 there were £17,153 of accrued pension contributions (2022: £32,948).


22.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
698,026
719,761

Later than 1 year and not later than 5 years
965,150
1,603,984

Later than 5 years
21,350
82,350

1,684,526
2,406,095

Page 22

 


MOSS EUROPE LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


Controlling party

The immediate parent company throughout the period was Moss Motors Limited a company incorporated in the USA. The ultimate parent company was Motorsport Products Group Inc, a company incorporated in the USA. The ultimate controlling party is Mr G D Adams by virtue of his shareholding in Motorsport Products Group Inc.
The smallest group in which the results of the company are consolidated is that headed by Moss Motors Limited, registered office 440 Rutherford Street, Goleta, CA 93117. The largest group in which the results of the company are consolidated is that headed by Motorsport Products Group Inc, registered office 440 Rutherford Street, Goleta, CA 93117.
 
Following the year end there was a change in ownership of Motorsport Products Group Inc. The ultimate parent company is now Radial Equity I LP and there is no one overall controlling party.

 
Page 23