IRIS Accounts Production v24.2.0.383 08758722 Board of Directors 1.1.23 31.12.23 31.12.23 true false true true false false true false Ordinary Shares 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh087587222022-12-31087587222023-12-31087587222023-01-012023-12-31087587222021-12-31087587222022-01-012022-12-31087587222022-12-3108758722ns15:EnglandWales2023-01-012023-12-3108758722ns14:PoundSterling2023-01-012023-12-3108758722ns10:Director12023-01-012023-12-3108758722ns10:PrivateLimitedCompanyLtd2023-01-012023-12-3108758722ns10:FRS1022023-01-012023-12-3108758722ns10:Audited2023-01-012023-12-3108758722ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-01-012023-12-3108758722ns10:LargeMedium-sizedCompaniesRegimeForAccounts2023-01-012023-12-3108758722ns10:FullAccounts2023-01-012023-12-3108758722ns10:OrdinaryShareClass12023-01-012023-12-3108758722ns10:Director22023-01-012023-12-3108758722ns10:Director32023-01-012023-12-3108758722ns10:CompanySecretary12023-01-012023-12-3108758722ns10:RegisteredOffice2023-01-012023-12-3108758722ns5:CurrentFinancialInstruments2023-12-3108758722ns5:CurrentFinancialInstruments2022-12-3108758722ns5:ShareCapital2023-12-3108758722ns5:ShareCapital2022-12-3108758722ns5:RetainedEarningsAccumulatedLosses2023-12-3108758722ns5:RetainedEarningsAccumulatedLosses2022-12-3108758722ns5:ShareCapital2021-12-3108758722ns5:RetainedEarningsAccumulatedLosses2021-12-3108758722ns5:RetainedEarningsAccumulatedLosses2022-01-012022-12-3108758722ns5:RetainedEarningsAccumulatedLosses2023-01-012023-12-3108758722ns5:LeaseholdImprovements2023-01-012023-12-3108758722ns5:FurnitureFittings2023-01-012023-12-3108758722ns5:ComputerEquipment2023-01-012023-12-3108758722ns5:OwnedAssets2023-01-012023-12-3108758722ns5:OwnedAssets2022-01-012022-12-3108758722112023-01-012023-12-3108758722112022-01-012022-12-310875872212023-01-012023-12-310875872212022-01-012022-12-3108758722ns5:LeaseholdImprovements2022-12-3108758722ns5:FurnitureFittings2022-12-3108758722ns5:ComputerEquipment2022-12-3108758722ns5:LeaseholdImprovements2023-12-3108758722ns5:FurnitureFittings2023-12-3108758722ns5:ComputerEquipment2023-12-3108758722ns5:LeaseholdImprovements2022-12-3108758722ns5:FurnitureFittings2022-12-3108758722ns5:ComputerEquipment2022-12-3108758722ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-12-3108758722ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-12-3108758722ns5:WithinOneYear2023-12-3108758722ns5:WithinOneYear2022-12-3108758722ns5:BetweenOneFiveYears2023-12-3108758722ns5:BetweenOneFiveYears2022-12-3108758722ns5:AllPeriods2023-12-3108758722ns5:AllPeriods2022-12-3108758722ns5:DeferredTaxation2022-12-3108758722ns5:DeferredTaxation2023-01-012023-12-3108758722ns5:DeferredTaxation2023-12-3108758722ns10:OrdinaryShareClass12023-12-31
REGISTERED NUMBER: 08758722 (England and Wales)
























STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

MASTER LOCK UK SALES LIMITED

MASTER LOCK UK SALES LIMITED (REGISTERED NUMBER: 08758722)

CONTENTS OF THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 3 to 4

Report of the Independent Auditors 5 to 7

Statement of Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13 to 18


MASTER LOCK UK SALES LIMITED

COMPANY INFORMATION
For The Year Ended 31 December 2023







DIRECTORS: J Moreau
D Patton
J Williams





SECRETARY: A M Pla





REGISTERED OFFICE: M11 Business Link
Unit 26
Parsonage Lane
Stansted
Essex
CM24 8GF





REGISTERED NUMBER: 08758722 (England and Wales)





AUDITORS: TC Group
1 Rushmills
Bedford Road
Northampton
Northamptonshire
NN4 7YB

MASTER LOCK UK SALES LIMITED (REGISTERED NUMBER: 08758722)

STRATEGIC REPORT
For The Year Ended 31 December 2023


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

REVIEW OF BUSINESS
The results and financial position at the year end were considered good by the directors. The company has continued to sell security products achieving a turnover of £15,419,864 in the current year from £15,240,592 as declared within the 2022 financial statements.

PRINCIPAL RISKS AND UNCERTAINTIES
The company's financial risk management objectives and policies centre around maintaining healthy cash flow and minimising credit risk.

Liquidity risk
The company makes efforts to manage financial risk by the monitoring of cash-flow to meet operational and investment requirements.

Credit risk
In order to manage credit risk the directors carry out credit checks on new customers and set limits for customers based on a combination of payment history and credit references. These credit limits are regularly reviewed by the directors and trading positions relative to these are acted upon.

Price risk
Due to the company having a pricing agreement in place there is limited exposure to price risk.

Economic risk
The directors believe they have taken all reasonable steps to mitigate factors arising, including the consideration of employment sustainability, sourcing of supplies and customer base retention. Such factors are considered by the directors to represent ongoing inherent risk to the business that they will continue to seek to manage including any risks to cashflow, revenue sustainability and continued access to supply.

The directors have adopted a policy of retaining a proportion of the annual profits to enable the accumulation of a stable net asset base.

FINANCIAL KEY PERFORMANCE INDICATORS
The company's key performance indicators are turnover, gross profit margin and liquidity ratio.

Turnover has increased this year by 1.18% compared to 2022. This was in line with expectation and considered good by the directors given the market conditions.

The gross profit margin continues to remain stable at 17.30% this year compared to 17.00% in 2022. This was in line with expectations.

The liquidity ratio was 217% this year. Over the past 5 years the liquidity ratio has ranged from 151% lowest to 217% being the highest.

FUTURE DEVELOPMENTS
With an active sales and marketing strategy in place it is expected the company will continue to achieve controlled growth in the short to medium term.

ON BEHALF OF THE BOARD:





D Patton - Director


19 September 2024

MASTER LOCK UK SALES LIMITED (REGISTERED NUMBER: 08758722)

REPORT OF THE DIRECTORS
For The Year Ended 31 December 2023


The directors present their report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of security product sales.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

DIRECTORS
J Moreau has held office during the whole of the period from 1 January 2023 to the date of this report.

Other changes in directors holding office are as follows:

D Patton - appointed 7 August 2023
J Williams - appointed 7 August 2023

FINANCIAL INSTRUMENTS
The company utilises various financial instruments including cash and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these is to raise finance for the company's operations. The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail in the Strategic Report.

DISCLOSURE IN THE STRATEGIC REPORT
As permitted by Paragraph 1A of schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and reports) Regulations 2008 certain matters which are required to be disclosed in the directors' report have been omitted as they are included in the strategic report instead. These matters relate to Business review, Principal risks and uncertainties and Key performance indicators.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

MASTER LOCK UK SALES LIMITED (REGISTERED NUMBER: 08758722)

REPORT OF THE DIRECTORS
For The Year Ended 31 December 2023


AUDITORS
The auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





D Patton - Director


19 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MASTER LOCK UK SALES LIMITED


Opinion
We have audited the financial statements of Master Lock UK Sales Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MASTER LOCK UK SALES LIMITED


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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' 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 a Report of the Auditors 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:

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant so specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK.

- We understood how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes and discussions with those charged with governance.

- We assess the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets.

- Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MASTER LOCK UK SALES LIMITED

- We also performed 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.

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 Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.




Dilun Mistry FCA (Senior Statutory Auditor)
for and on behalf of TC Group
1 Rushmills
Bedford Road
Northampton
Northamptonshire
NN4 7YB

20 September 2024

MASTER LOCK UK SALES LIMITED (REGISTERED NUMBER: 08758722)

STATEMENT OF COMPREHENSIVE
INCOME
For The Year Ended 31 December 2023

2023 2022
Notes £    £   

TURNOVER 3 15,419,864 15,240,592

Cost of sales 12,751,938 12,649,483
GROSS PROFIT 2,667,926 2,591,109

Administrative expenses 2,090,091 2,122,204
OPERATING PROFIT 5 577,835 468,905


Interest payable and similar expenses 6 97 -
PROFIT BEFORE TAXATION 577,738 468,905

Tax on profit 7 137,735 94,027
PROFIT FOR THE FINANCIAL YEAR 440,003 374,878

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

440,003

374,878

MASTER LOCK UK SALES LIMITED (REGISTERED NUMBER: 08758722)

BALANCE SHEET
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 16,113 18,644

CURRENT ASSETS
Debtors 9 2,121,703 3,136,279
Cash at bank 3,316,735 2,656,809
5,438,438 5,793,088
CREDITORS
Amounts falling due within one year 10 2,508,845 3,306,029
NET CURRENT ASSETS 2,929,593 2,487,059
TOTAL ASSETS LESS CURRENT LIABILITIES 2,945,706 2,505,703

CAPITAL AND RESERVES
Called up share capital 14 1 1
Retained earnings 2,945,705 2,505,702
SHAREHOLDERS' FUNDS 2,945,706 2,505,703

The financial statements were approved by the Board of Directors and authorised for issue on 19 September 2024 and were signed on its behalf by:





D Patton - Director


MASTER LOCK UK SALES LIMITED (REGISTERED NUMBER: 08758722)

STATEMENT OF CHANGES IN EQUITY
For The Year Ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 1 2,130,824 2,130,825

Changes in equity
Total comprehensive income - 374,878 374,878
Balance at 31 December 2022 1 2,505,702 2,505,703

Changes in equity
Total comprehensive income - 440,003 440,003
Balance at 31 December 2023 1 2,945,705 2,945,706

MASTER LOCK UK SALES LIMITED (REGISTERED NUMBER: 08758722)

CASH FLOW STATEMENT
For The Year Ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 738,533 (60,758 )
Interest paid (97 ) -
Tax paid (73,374 ) (74,851 )
Net cash from operating activities 665,062 (135,609 )

Cash flows from investing activities
Purchase of tangible fixed assets (5,325 ) (13,217 )
Net cash from investing activities (5,325 ) (13,217 )

Increase/(decrease) in cash and cash equivalents 659,737 (148,826 )
Cash and cash equivalents at beginning
of year

2

2,656,809

2,805,635

Cash and cash equivalents at end of
year

2

3,316,546

2,656,809

MASTER LOCK UK SALES LIMITED (REGISTERED NUMBER: 08758722)

NOTES TO THE CASH FLOW STATEMENT
For The Year Ended 31 December 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 577,738 468,905
Depreciation charges 7,856 6,741
Finance costs 97 -
585,691 475,646
Decrease/(increase) in trade and other debtors 999,237 (111,661 )
Decrease in trade and other creditors (846,395 ) (424,743 )
Cash generated from operations 738,533 (60,758 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 3,316,735 2,656,809
Bank overdrafts (189 ) -
3,316,546 2,656,809
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 2,656,809 2,805,635


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank 2,656,809 659,926 3,316,735
Bank overdrafts - (189 ) (189 )
2,656,809 659,737 3,316,546
Total 2,656,809 659,737 3,316,546

MASTER LOCK UK SALES LIMITED (REGISTERED NUMBER: 08758722)

NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 December 2023


1. STATUTORY INFORMATION

Master Lock UK Sales Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The company's place of business is Unit 26, M11 Business Link, Parsonage Lane, Stansted, Essex, CM24 8TY.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

There were no material departures from that standard.

The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and have also been consistently applied within the same accounts.

Functional and presentational currency
The Company's functional and presentational currency is GBP

Significant judgements and estimates
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The directors do not consider that there are any estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 10% on cost
Fixtures and fittings - Straight line over 7 years
Computer equipment - 33% on cost

Tangible fixed assets are initially recorded at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses.

MASTER LOCK UK SALES LIMITED (REGISTERED NUMBER: 08758722)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2023


2. ACCOUNTING POLICIES - continued

Financial instruments
Basic financial assets, including trade and other receivables and cash and bank balances, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where thetransaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carryingamount and the present value of the estimated cash flows discounted at the asset’s original effective interestrate. The impairment loss is recognised in profit or loss.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Basic financial liabilities, including trade and other payables, and loans from fellow Group companies, a reinitially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

MASTER LOCK UK SALES LIMITED (REGISTERED NUMBER: 08758722)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2023


2. ACCOUNTING POLICIES - continued

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

Going concern
As at the point of authorising the accounts, and for the foreseeable future, the directors consider the going concern assumption to still be appropriate. The directors acknowledge that given the currently changing business and social environment, there are likely to be significant unknown factors which may present themselves. Such factors are considered by the directors to represent a general inherent level of risk in relation to the going concern assumption albeit not quantifiable at this time.

3. TURNOVER

All activities are relating to the principal activity and have arose in the UK.

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 355,439 412,752
Social security costs 42,055 53,367
Other pension costs 26,981 26,218
424,475 492,337

The average number of employees during the year was as follows:
2023 2022

Administration and Operative 7 8

2023 2022
£    £   
Directors' remuneration - -

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Other operating leases 90,229 88,008
Depreciation - owned assets 7,856 6,741
Auditors' remuneration 19,250 17,500
(Profit)/loss on foreign exchange (3,009 ) (20,009 )

MASTER LOCK UK SALES LIMITED (REGISTERED NUMBER: 08758722)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2023


6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Interest on tax 97 -

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 122,396 73,374

Deferred tax 15,339 20,653
Tax on profit 137,735 94,027

UK corporation tax has been charged at 23.50% (2022 - 19%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 577,738 468,905
Profit multiplied by the standard rate of corporation tax in the UK of
23.500% (2022 - 19%)

135,768

89,092

Effects of:
Expenses not deductible for tax purposes 577 102
Depreciation in excess of capital allowances 582 135
Utilisation of tax losses (14,531 ) (16,190 )
Adjustments to tax charge in respect of previous periods - 235
Deferred tax - Origination / reversal of temporary differences 15,339 20,653
respect of previous periods


Total tax charge 137,735 94,027

The Corporation Tax main rate has changed from 19% to 25% for companies with profits over £250,000. There is a small company rate of 19% for taxable profits under £50,000 and marginal relief available for profits falling between £50,000 - £250,000 with effect from 1 April 2023. Deferred tax has therefore been calculated at the rate of 25%.

The reconciliation of total tax charge has been calculated on an average basis of the two aforementioned rates applicable in the year, resulting in average rate of 23.5%

The company has trading losses of £230,900 (2022: £292,792) available for carry forward against future trading profits.

MASTER LOCK UK SALES LIMITED (REGISTERED NUMBER: 08758722)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2023


8. TANGIBLE FIXED ASSETS
Improvements Fixtures
to and Computer
property fittings equipment Totals
£    £    £    £   
COST
At 1 January 2023 33,183 1,290 13,217 47,690
Additions 5,325 - - 5,325
At 31 December 2023 38,508 1,290 13,217 53,015
DEPRECIATION
At 1 January 2023 24,333 1,290 3,423 29,046
Charge for year 3,451 - 4,405 7,856
At 31 December 2023 27,784 1,290 7,828 36,902
NET BOOK VALUE
At 31 December 2023 10,724 - 5,389 16,113
At 31 December 2022 8,850 - 9,794 18,644

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 2,009,947 3,043,284
Other debtors 20,205 20,205
Deferred tax asset 55,720 71,059
Prepayments and accrued income 35,831 1,731
2,121,703 3,136,279

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 11) 189 -
Trade creditors 15,407 70,039
Amounts owed to group undertakings 667,959 1,713,220
Corporation tax 122,396 73,374
Other creditors including
taxation and social security 9,426 18,114
VAT 321,676 470,351
Accrued expenses 1,371,792 960,931
2,508,845 3,306,029

11. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 189 -

MASTER LOCK UK SALES LIMITED (REGISTERED NUMBER: 08758722)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 December 2023


12. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 80,543 85,263
Between one and five years 56,473 105,772
137,016 191,035

13. DEFERRED TAX
£   
Balance at 1 January 2023 (71,059 )
Provided during year 15,339
Balance at 31 December 2023 (55,720 )

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
1 Ordinary Shares £1 1 1

The ordinary shares have attached to them full voting, dividend and capital distribution rights.

15. PENSION COMMITMENTS

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £26,981 (2022: £26,218)
.
Contributions of £4,690 were payable to the funds at the balance sheet date (2022: £2,228).

16. RELATED PARTY DISCLOSURES

The company has taken advantage of the exemption in FRS102 section 33.1A to not disclose related party transactions with wholly owned group entities.

There was no key management personnel compensation paid in the year (2022: £nil).

17. ULTIMATE PARENT COMPANY

Master Lock Company LLC (incorporated in United States) is regarded by the directors as being the company's immediate parent company.

Fortune Brands Home & Security Inc. (incorporated in United States) is regarded by the directors as being the company's ultimate parent company.