Company registration number 02380020 (England and Wales)
MAM (UK) LIMITED
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
MAM (UK) LIMITED
COMPANY INFORMATION
Directors
Ms EJ Parkhill
NF Schertenleib
D Butler
(Appointed 1 April 2024)
A Savvides
(Appointed 1 April 2024)
Company number
02380020
Registered office
Marvan Court
Block C, Ground Floor
1 Waldegrave Road
Teddington
Middlesex
England
TW11 8LZ
Auditor
BK Plus Audit Limited
2 Highlands Court
Cranmore Avenue
Solihull
West Midlands
B90 4LE
MAM (UK) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
MAM (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of Business

The principal activity of the company is the distribution and marketing of a range of baby feeding and soothing accessories.

The company's sales for the year ending 31 December 2023 were £23,456,863, (2022: £21,611,762). Net assets of the company increased to £5,041,273 (2022: £4,499,748).

Principal Risks and Uncertainties

The company operates in the baby and toddler market. The company is exposed to risks within the market it operates in as well as the general business environment.

 

A review of these risks and the policies in place are as follows:

 

General Risks

Quality and reliability of product is critical to brand reputation and growth. All products are designed and tested in house and adhere the highest global standard. There are robust processes in place to ensure this is maintained.

 

Financial Risks

Financial risks focus on liquidity risk which is maintained by a strong balance sheet position and parent company support. Foreign exchange rate which is mitigated by group policies.

Development and Performance

The Directors are pleased with the results achieved during the year. The growth in sales has ensured that the company’s market position and brand share has continued to strengthen, in the 3 core brand pillars, soothing, teats and bottle feeding ( source: ACNielsen ). Store distribution and range listings have increased brand presence.

 

Lisa Parkhill stepped down from her role as Managing Director on 31 March 2024. She has been with the business for 32 years and has steered the company from a small challenger brand to an established market leader.

 

The final pieces in her long career are the launch of the innovative new product, the MAM Move. MAM’s mission is to make everyday parenting easier and the launch of the small but mighty MAM Move sees the legacy continue, offering the freedom and flexibility that will empower mums on their feeding journey.

 

The achievement of being awarded a 2-year contract as an official supplier to the NHS across England, Wales, Scotland, and Northern Ireland.

 

Rolling out a new fresh modern brand identity which will resonate with pregnant women of today and the future.

 

Lisa is delighted to handover to Damian Butler who has extensive UK and international commercial experience in the Baby products arena across all channels.

MAM (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key Performance Indicators

The KPI indicators help us to ensure our performance against the strategic plan are revenue growth and profitability.

 

We consider our financial Key Performance Indicators to be those ratios which communicate the financial performance of the company as a whole:

 

2023 2022

 

Gross Profit % 27.88% 27.59%

Net Profit on Turnover (EBIT) 3.02% 4.46%

 

The key performance indicators show the company's continuing positive performance.

On behalf of the board

Ms EJ Parkhill
Director
1 July 2024
MAM (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company continued to be that of distribution and marketing of a range of baby feeding and soothing accessories.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

No preference dividends were paid.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Ms EJ Parkhill
NF Schertenleib
D Butler
(Appointed 1 April 2024)
A Savvides
(Appointed 1 April 2024)
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Ms EJ Parkhill
NF Schertenleib
Director
Director
1 July 2024
MAM (UK) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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

MAM (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF MAM (UK) LIMITED
- 5 -
Opinion

We have audited the financial statements of MAM (UK) Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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:

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 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 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 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:

MAM (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MAM (UK) LIMITED
- 6 -
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:

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

Auditor'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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

- Enquiry of management, those charged with governance around actual and potential litigation and claims;

- Enquiry of entity staff to identify any instances of non-compliance with laws and regulations

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with

applicable laws and regulations.

- Performing audit work over the risk of management override of controls, including testing of journal entries and

other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the

normal course of business and reviewing accounting estimates for bias.

- Performing audit work over the risk of understatement of turnover including analytical review and obtaining

corroborated explanations from Management.

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.

Paul Mannion FCCA, FCA
Senior Statutory Auditor
For and on behalf of BK Plus Audit Limited
1 July 2024
Chartered Certified Accountants
Statutory Auditor
2 Highlands Court
Cranmore Avenue
Solihull
West Midlands
B90 4LE
MAM (UK) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
as restated
Notes
£
£
Turnover
3
23,456,863
21,611,762
Cost of sales
(16,917,784)
(15,648,533)
Gross profit
6,539,079
5,963,229
Administrative expenses
(5,828,793)
(5,002,520)
Operating profit
4
710,286
960,709
Interest receivable and similar income
7
-
0
2,781
Interest payable and similar expenses
8
(2,668)
-
0
Profit before taxation
707,618
963,490
Tax on profit
9
(166,093)
(182,670)
Profit for the financial year
541,525
780,820

The profit and loss account has been prepared on the basis that all operations are continuing operations.

MAM (UK) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
as restated
£
£
Profit for the year
541,525
780,820
Other comprehensive income
-
-
Total comprehensive income for the year
541,525
780,820
MAM (UK) LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
10
56,525
25,175
Investments
11
2
2
56,527
25,177
Current assets
Stocks
13
2,305,425
2,634,368
Debtors
14
7,636,650
6,023,966
Cash at bank and in hand
1,450,732
2,598,551
11,392,807
11,256,885
Creditors: amounts falling due within one year
15
(6,394,241)
(6,776,399)
Net current assets
4,998,566
4,480,486
Total assets less current liabilities
5,055,093
4,505,663
Provisions for liabilities
Deferred tax liability
16
13,820
5,915
(13,820)
(5,915)
Net assets
5,041,273
4,499,748
Capital and reserves
Called up share capital
18
961,786
961,786
Profit and loss reserves
4,079,487
3,537,962
Total equity
5,041,273
4,499,748

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 1 July 2024 and are signed on its behalf by:
Ms EJ Parkhill
NF Schertenleib
Director
Director
Company registration number 02380020 (England and Wales)
MAM (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
961,786
2,757,142
3,718,928
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
780,820
780,820
Balance at 31 December 2022
961,786
3,537,962
4,499,748
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
541,525
541,525
Balance at 31 December 2023
961,786
4,079,487
5,041,273
MAM (UK) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
22
(1,089,156)
683,109
Interest paid
(2,668)
-
0
Income taxes paid
-
0
(243,263)
Net cash (outflow)/inflow from operating activities
(1,091,824)
439,846
Investing activities
Purchase of tangible fixed assets
(55,995)
-
0
Interest received
-
0
2,781
Net cash (used in)/generated from investing activities
(55,995)
2,781
Net (decrease)/increase in cash and cash equivalents
(1,147,819)
442,627
Cash and cash equivalents at beginning of year
2,598,551
2,155,924
Cash and cash equivalents at end of year
1,450,732
2,598,551
MAM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

MAM (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Marvan Court, Block C, Ground Floor, 1 Waldegrave Road, Teddington, Middlesex, England, TW11 8LZ.

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.

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.

The financial statements contain the information about MAM (UK) Limited as an individual company and do not contain consolidated financial information as the parent of a group. In accordance with Section 402 of the Companies Act the company is exempt from preparing consolidation financial statements which include the results of its subsidiary undertaking, Bambino (UK) Limited, because it is not considered material for the purpose of giving true and fair view.

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

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. All revenue of the company is from sales of baby products at a point in time with the delivery of the product seen as the only performance obligation under the contract.

 

Revenue is recognised on delivery when control of the goods has passed to the buyer. Revenue is recorded net of value added tax.

 

Rebates and discounts on turnover are deducted from turnover. Any rebates or discounts are recognised on sales to the extent that it is deemed highly likely that the cost will not subsequently reverse and are recognised in line with the sale of the underlying item.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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:

Improvements to leasehold premises
20% on cost
Fixtures and fittings
20% on cost
MAM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -

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.

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.

Cost is included at First in, first out (FIFO) valuation.

MAM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -

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.

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 balance sheet 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.

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.

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 company 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.

MAM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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.

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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.

MAM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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 profit and loss account, 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
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.

1.16

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

MAM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
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 that have a significant risk of resulting in material adjustment to the carrying amounts of such assets and liabilities within the next financial year are noted below:

 

Useful economic life of non-current assets - Management estimate the useful economic life of non-current assets based on the period over which the asset is expected to be used and provide for depreciation accordingly. Where an indication of impairment is identified the estimation of recoverable value requires estimation.

 

Operating lease commitments - As a lessee, the company obtains the use of property. The classification of such leases as operating or finance lease requires the company to determine, based on an evaluation of the terms and conditions of the arrangement, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the statement of financial position.

 

Deferred tax - Management estimation is required to determine the amount of deferred tax asset that can be recognised, based upon likely timing and level of future taxable profits.

 

Impairment of trade receivables – The company makes an estimate of the recoverable amount of trade and other debtors. When assessing impairment of trade and other receivables management considers factors including the credit rate of the receivable, the ageing profile of receivables and historical experience.

 

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
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
22,124,994
20,783,009
Europe
1,331,869
778,653
Rest of World
-
50,100
23,456,863
21,611,762
The company's turnover is from the sale of baby feeding and soothing products.
2023
2022
£
£
Other revenue
Interest income
-
2,781
MAM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(20,536)
(51,923)
Fees payable to the company's auditor for the audit of the company's financial statements
25,000
16,000
Depreciation of owned tangible fixed assets
24,645
14,380
Operating lease charges
44,943
104,887
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Directors
2
2
Office staff
25
21
Total
27
23

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,596,140
1,260,112
Social security costs
156,334
124,212
Pension costs
70,822
92,197
1,823,296
1,476,521
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
361,208
302,477
Company pension contributions to defined contribution schemes
10,088
23,349
371,296
325,826

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

MAM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Directors' remuneration
(Continued)
- 19 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
361,208
302,477
Company pension contributions to defined contribution schemes
10,088
23,349
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
-
0
2,781
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
2,668
-
0
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
158,188
186,181
Deferred tax
Origination and reversal of timing differences
7,905
(3,511)
Total tax charge
166,093
182,670
MAM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 20 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
707,618
963,490
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
166,432
183,063
Tax effect of expenses that are not deductible in determining taxable profit
165
449
Effect of change in corporation tax rate
470
(842)
Super Allowance
(974)
-
0
Taxation charge for the year
166,093
182,670
10
Tangible fixed assets
Improvements to leasehold premises
Fixtures and fittings
Total
£
£
£
Cost
At 1 January 2023
35,426
114,975
150,401
Additions
-
0
55,995
55,995
At 31 December 2023
35,426
170,970
206,396
Depreciation and impairment
At 1 January 2023
23,027
102,199
125,226
Depreciation charged in the year
7,085
17,560
24,645
At 31 December 2023
30,112
119,759
149,871
Carrying amount
At 31 December 2023
5,314
51,211
56,525
At 31 December 2022
12,399
12,776
25,175
11
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
12
2
2
12
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

MAM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Subsidiaries
(Continued)
- 21 -
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Bambino (UK) Limited
2 Highlands Court, Cranmore Avenue, Solihull, West Midlands, England, B90 4LE
Dormant
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Bambino (UK) Limited
2
-
0
13
Stocks
2023
2022
£
£
Finished goods and goods for resale
2,305,425
2,634,368
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
7,442,729
5,872,544
Corporation tax recoverable
-
0
29,830
Prepayments and accrued income
175,177
102,848
7,617,906
6,005,222
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
18,744
18,744
Total debtors
7,636,650
6,023,966
MAM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
15
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
182,471
342,647
Amounts owed to group undertakings
4,310,858
4,850,450
Corporation tax
128,358
-
0
Other taxation and social security
755,247
800,861
Other creditors
8,341
18,835
Accruals and deferred income
1,008,966
763,606
6,394,241
6,776,399
16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
13,820
5,915
2023
Movements in the year:
£
Liability at 1 January 2023
5,915
Charge to profit or loss
7,905
Liability at 31 December 2023
13,820
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
70,822
92,197

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The value of unpaid pension scheme contributions at the Balance Sheet date amount to £8,341 (2022 : £18,820).

MAM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary Shares of £1 each
127,111
127,111
127,111
127,111
B Ordinary Shares of £1 each
48,889
48,889
48,889
48,889
C Ordinary Shares of £1 each
14,000
14,000
14,000
14,000
190,000
190,000
190,000
190,000
2023
2022
2023
2022
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
771,786
771,786
771,786
771,786
Preference shares classified as equity
771,786
771,786
Total equity share capital
961,786
961,786
19
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
132,733
106,309
Between two and five years
394,005
58,445
In over five years
54,500
-
0
581,238
164,754
20
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Purchases
Purchases
2023
2022
£
£
MAM BABY AG
15,002,662
15,743,698
2023
2022
Amounts due to related parties
£
£
MAM BABY AG
4,310,858
4,850,450
MAM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Related party transactions
(Continued)
- 24 -
21
Ultimate controlling party

The company is controlled by MAM BABY AG, a company registered in Switzerland. MAM BABY AG being a wholly owned subsidiary of BAMED MAM Group Ltd, Cyprus. BAMED MAM Group Ltd is wholly owned by Active Ownership LP (CY), which is owned by the Roehrig family.

22
Cash (absorbed by)/generated from operations
2023
2022
£
£
Profit for the year after tax
541,525
780,820
Adjustments for:
Taxation charged
166,093
182,670
Finance costs
2,668
-
0
Investment income
-
0
(2,781)
Depreciation and impairment of tangible fixed assets
24,645
14,380
Movements in working capital:
Decrease/(increase) in stocks
328,943
(1,402,837)
(Increase)/decrease in debtors
(1,642,514)
172,904
(Decrease)/increase in creditors
(510,516)
937,953
Cash (absorbed by)/generated from operations
(1,089,156)
683,109
23
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
2,598,551
(1,147,819)
1,450,732
24
Prior period adjustment
Reconciliation of changes in equity
The prior period adjustments do not give rise to any effect upon equity.
MAM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
24
Prior period adjustment
(Continued)
- 25 -
Reconciliation of changes in profit for the previous financial period
2022
£
Adjustments to prior year
Turnover
(2,505,564)
Cost of Sales
2,505,564
Total adjustments
-
Profit as previously reported
780,820
Profit as adjusted
780,820
Notes to reconciliation

The prior year adjustment is a result of reclassifying sales discounts as a reduction in sales rather than a cost of sale.

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