REGISTERED NUMBER: 08106006 (England and Wales) |
COLOMER MUNMANY EUROPE COMPANY LTD |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
REGISTERED NUMBER: 08106006 (England and Wales) |
COLOMER MUNMANY EUROPE COMPANY LTD |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 | to | 7 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 | to | 25 |
COLOMER MUNMANY EUROPE COMPANY LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Chartered Accountants |
3365 The Pentagon |
Century Way |
Thorpe Park |
Leeds |
West Yorkshire |
LS15 8ZB |
BANKERS: | HSBC Bank Plc |
Canada Place |
Canary Wharf |
London |
E14 5AH |
COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
The directors present their strategic report of the company and the group for the year ended 31st December 2023. |
REVIEW OF BUSINESS |
As per the prediction for 2023 it has been a challenging year. |
The market for raw material was the weakest it has been for many years, this coincided with considerable rising costs caused by high inflation. To mitigate some of these cost rises we continue to look for and apply efficiencies and savings for aspects of the working costs that we can control. On the flip side, our finished product sales exceeded expectations. Retail sales rebounded to 2021 levels and our ecommerce sales revenue grew by 61% vs 2022. |
We anticipate another challenging year for 2024; however, we believe that 2023 represented the bottom of the market for raw material. With inflation slowing, costs should be more easily managed. As for finished product sales, the market looks to be slowing, we anticipate similar sales volumes for retail sales and moderate growth in ecommerce sales. |
Overall, our aim is to grow our market share of both raw material procurement as well as for finished product sales and increase our margins and sales volumes. We anticipate we will break even in 2024. |
PRINCIPAL RISKS AND UNCERTAINTIES |
There are many risks facing the business, the key risks to the business are: |
Maintaining a supply and price of raw material to meet demands; |
Managing the foreign currency movements and effects on cashflow; |
Credit risk in offering extended credit terms to customers in the finished leather market; |
Managing the effect of Brexit on the UK group and its European customers. |
The company manages this risk by employing a well-trained management team, maintaining positive relationships with key suppliers, and operating an up to date management information system. |
KEY PERFORMANCE INDICATORS |
Given the straightforward nature of the business, the directors believe that further analysis using KPI's is not necessary for an understanding of the development, performance and position of the business. |
ON BEHALF OF THE BOARD: |
COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31st December 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 31st December 2023. |
DIRECTORS |
The directors during the year under review were: |
The directors holding office at 31st December 2023 did not hold any beneficial interest in the issued share capital of the company at 1st January 2023 or 31st December 2023. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
AUDITORS |
The auditors, Thomas Coombs Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
COLOMER MUNMANY EUROPE COMPANY LTD |
Opinion |
We have audited the financial statements of Colomer Munmany Europe Company Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31st December 2023 and of the group's loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group 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 |
COLOMER MUNMANY EUROPE COMPANY LTD |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
COLOMER MUNMANY EUROPE COMPANY LTD |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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: |
Based on our understanding of the entity and industries in which it operates, we identified the principal risks of non-compliance with laws and regulations related to health and safety and employment law. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, tax legislation and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). |
We assessed the susceptibility of the company's financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls, and ensuring these controls operated as intended. We determined the principal risks were related to posting journal entries to manipulate profits, and management bias in accounting estimates, especially stock valuation, accruals and depreciation. |
To address the risk of fraud through management bias and override of controls, we: |
-Performed analytical procedures to identify any unusual or unexpected relationships. |
-Identified and tested journal entries and identified any significant transactions that were unusual or outside the normal course of business. |
-Investigated the rationale behind significant or unusual transactions. |
-Challenged assumptions and judgements made by management in determining significant accounting estimates, in particular in relation to accruals and depreciation. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed audit procedures which included, but were not limited to: |
-Agreeing financial statements disclosures to underlying supporting documentation. |
-Discussions with management of known or suspected instances of non-compliance with laws and regulations. |
-Reading the minutes of meetings of those charged with governance. |
-Reviewing correspondence with HMRC, relevant regulators including the company's legal advisors. |
At the completion stage of the audit, the engagement partner's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud. |
There are inherent limitations in the audit procedures described above and the further removed non-compliance of laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement relating to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
COLOMER MUNMANY EUROPE COMPANY LTD |
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. |
for and on behalf of |
Statutory Auditor |
Chartered Accountants |
3365 The Pentagon |
Century Way |
Thorpe Park |
Leeds |
West Yorkshire |
LS15 8ZB |
COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 9,363,506 | 10,891,159 |
Cost of sales | 8,317,904 | 9,997,805 |
GROSS PROFIT | 1,045,602 | 893,354 |
Administrative expenses | 1,729,563 | 1,479,816 |
(683,961 | ) | (586,462 | ) |
Other operating income | 225,422 | 92,258 |
Gain/loss on revaluation of assets | - | 168,115 |
OPERATING LOSS | 5 | (458,539 | ) | (326,089 | ) |
Interest receivable and similar income | - | 200 |
(458,539 | ) | (325,889 | ) |
Interest payable and similar expenses | 6 | 73,500 | 73,833 |
LOSS BEFORE TAXATION | (532,039 | ) | (399,722 | ) |
Tax on loss | 7 | - | 27,041 |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
Loss attributable to: |
Owners of the parent | (530,273 | ) | (430,710 | ) |
Non-controlling interests | (1,766 | ) | 3,947 |
(532,039 | ) | (426,763 | ) |
COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
LOSS FOR THE YEAR | (532,039 | ) | (426,763 | ) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | (532,039 | ) | (426,763 | ) |
Total comprehensive income attributable to: |
Owners of the parent | (530,273 | ) | (430,710 | ) |
Non-controlling interests | (1,766 | ) | 3,947 |
(532,039 | ) | (426,763 | ) |
COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006) |
CONSOLIDATED BALANCE SHEET |
31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 205,562 | 288,781 |
Tangible assets | 10 | 3,235,784 | 3,328,396 |
Investments | 11 | - | - |
Investment property | 12 | 650,000 | 650,000 |
4,091,346 | 4,267,177 |
CURRENT ASSETS |
Stocks | 13 | 1,011,415 | 894,122 |
Debtors | 14 | 1,123,673 | 1,187,350 |
Cash at bank and in hand | 696,031 | 719,652 |
2,831,119 | 2,801,124 |
CREDITORS |
Amounts falling due within one year | 15 | 2,167,843 | 1,781,640 |
NET CURRENT ASSETS | 663,276 | 1,019,484 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 4,754,622 | 5,286,661 |
CREDITORS |
Amounts falling due after more than one year | 16 | (7,350,000 | ) | (7,350,000 | ) |
PROVISIONS FOR LIABILITIES | 18 | (27,041 | ) | (27,041 | ) |
NET LIABILITIES | (2,622,419 | ) | (2,090,380 | ) |
CAPITAL AND RESERVES |
Called up share capital | 19 | 4,000,000 | 4,000,000 |
Revaluation reserve | 20 | 6,452 | 12,907 |
Non-distributable reserves | 20 | 115,281 | 115,281 |
Retained earnings | 20 | (6,808,326 | ) | (6,284,508 | ) |
SHAREHOLDERS' FUNDS | (2,686,593 | ) | (2,156,320 | ) |
NON-CONTROLLING INTERESTS | 64,174 | 65,940 |
TOTAL EQUITY | (2,622,419 | ) | (2,090,380 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on 22nd May 2024 and were signed on its behalf by: |
J K Boneham - Director |
COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006) |
COMPANY BALANCE SHEET |
31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 16 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET LIABILITIES | ( |
) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Non-distributable reserves | 20 |
Retained earnings | 20 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
Company's loss for the financial year | (491,354 | ) | (426,344 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Called up |
share | Retained | Revaluation |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1st January 2022 | 4,000,000 | (5,768,359 | ) | - |
Changes in equity |
Total comprehensive income | - | (516,149 | ) | 12,907 |
Balance at 31st December 2022 | 4,000,000 | (6,284,508 | ) | 12,907 |
Changes in equity |
Total comprehensive income | - | (523,818 | ) | (6,455 | ) |
Balance at 31st December 2023 | 4,000,000 | (6,808,326 | ) | 6,452 |
Non-distributable | Non-controlling | Total |
reserves | Total | interests | equity |
£ | £ | £ | £ |
Balance at 1st January 2022 | 42,749 | (1,725,610 | ) | 61,993 | (1,663,617 | ) |
Changes in equity |
Total comprehensive income | 72,532 | (430,710 | ) | 3,947 | (426,763 | ) |
Balance at 31st December 2022 | 115,281 | (2,156,320 | ) | 65,940 | (2,090,380 | ) |
Changes in equity |
Total comprehensive income | - | (530,273 | ) | (1,766 | ) | (532,039 | ) |
Balance at 31st December 2023 | 115,281 | (2,686,593 | ) | 64,174 | (2,622,419 | ) |
COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Called up |
share | Retained | Non-distributable | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1st January 2022 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31st December 2022 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31st December 2023 | ( |
) | ( |
) |
COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 151,218 | 55,505 |
Interest paid | (73,500 | ) | (73,833 | ) |
Tax paid | - | 16,258 |
Net cash from operating activities | 77,718 | (2,070 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (103,140 | ) | (110,811 | ) |
Purchase of investment property | - | (211,885 | ) |
Sale of tangible fixed assets | 1,801 | 248,932 |
Interest received | - | 200 |
Net cash from investing activities | (101,339 | ) | (73,564 | ) |
Decrease in cash and cash equivalents | (23,621 | ) | (75,634 | ) |
Cash and cash equivalents at beginning of year | 2 | 719,652 | 795,286 |
Cash and cash equivalents at end of year | 2 | 696,031 | 719,652 |
COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Loss before taxation | (532,039 | ) | (399,722 | ) |
Depreciation charges | 277,818 | 316,903 |
Profit on disposal of fixed assets | (648 | ) | (11,858 | ) |
Gain on revaluation of fixed assets | - | (168,115 | ) |
Finance costs | 73,500 | 73,833 |
Finance income | - | (200 | ) |
(181,369 | ) | (189,159 | ) |
(Increase)/decrease in stocks | (117,293 | ) | 27,441 |
Decrease in trade and other debtors | 63,677 | 293,696 |
Increase/(decrease) in trade and other creditors | 386,203 | (76,473 | ) |
Cash generated from operations | 151,218 | 55,505 |
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 31st December 2023 |
31/12/23 | 1/1/23 |
£ | £ |
Cash and cash equivalents | 696,031 | 719,652 |
Year ended 31st December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 719,652 | 795,286 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/1/23 | Cash flow | At 31/12/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 719,652 | (23,621 | ) | 696,031 |
719,652 | (23,621 | ) | 696,031 |
Total | 719,652 | (23,621 | ) | 696,031 |
COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Colomer Munmany Europe Company Ltd is a |
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. |
The financial statements have been prepared in sterling. All monetary amounts in the financial statements are rounded to the nearest £. |
The directors are satisfied that the company has sufficient cash flows and continued support from the parent company to continue to meet its liabilities as they fall due for at least one year from date of approval of the financial statements, thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Turnover |
Revenue is measured at the fair value of the consideration receivable for the provision of goods and services to customers outside the company net of returns, sales allowances and VAT. |
Revenue is recognised at the point in which the company fulfills its commercial obligations to the customer and amounts in respect of the transaction can be measured reliably and collectability is reasonable assured. |
Goodwill |
Goodwill arising on business combinations are capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful life. The period chosen for writing off goodwill is 3, 5 and 10 years. Provisions are made for any impairment. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: |
Land & buildings | 2% straight line, 4% straight line and 10% straight line |
Office equipment | 25% straight line |
Fixtures & fittings | 8.33% straight line and 20% straight line |
Plant & machinery | 20% straight line and 25% reducing balance |
Motor vehicles | 20% straight line and 25% reducing balance |
Investment property |
Investment properties are measured at fair value at each reporting date with changes in fair value recognised in profit or loss. |
COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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. |
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 included in arriving at the operating result. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Investments |
Fixed asset investments are stated at historical cost less provision for any diminution in value. |
Debtors and creditors receivable/payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
3. | TURNOVER |
The turnover and loss before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market for the year ended 31st December 2022 is given below: |
£ |
United Kingdom | 1,068,526 |
Europe | 2,032,501 |
Rest of the World | 7,790,132 |
10,891,159 |
This analysis is not considered to be applicable to the year ended 31st December 2023. |
COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,616,904 | 2,729,468 |
Social security costs | 263,019 | 283,545 |
Other pension costs | 55,134 | 56,277 |
2,935,057 | 3,069,290 |
The average number of employees during the year was as follows: |
2023 | 2022 |
UK |
The average number of employees by undertakings that were proportionately consolidated during the year was 3 (2022 - 3 ) . |
2023 | 2022 |
£ | £ |
Directors' remuneration | 103,187 | 102,475 |
5. | OPERATING LOSS |
The operating loss is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 194,599 | 228,225 |
Profit on disposal of fixed assets | (648 | ) | (11,858 | ) |
Goodwill amortisation | 83,219 | 88,679 |
Auditors' remuneration | 17,000 | 8,355 |
Foreign exchange differences | 54,596 | (17,111 | ) |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Interest payable | 73,500 | 73,833 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Deferred tax | - | 27,041 |
Tax on loss | - | 27,041 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1st January 2023 |
and 31st December 2023 | 4,114,096 |
AMORTISATION |
At 1st January 2023 | 3,825,315 |
Amortisation for year | 83,219 |
At 31st December 2023 | 3,908,534 |
NET BOOK VALUE |
At 31st December 2023 | 205,562 |
At 31st December 2022 | 288,781 |
Company |
Goodwill |
£ |
COST |
At 1st January 2023 |
and 31st December 2023 |
AMORTISATION |
At 1st January 2023 |
Amortisation for year |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
10. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Motor | Office | Plant & |
property | vehicles | equipment | machinery | Totals |
£ | £ | £ | £ | £ |
COST |
At 1st January 2023 | 3,529,920 | 122,551 | 156,393 | 1,044,236 | 4,853,100 |
Additions | - | - | 10,792 | 92,348 | 103,140 |
Disposals | - | - | - | (13,770 | ) | (13,770 | ) |
At 31st December 2023 | 3,529,920 | 122,551 | 167,185 | 1,122,814 | 4,942,470 |
DEPRECIATION |
At 1st January 2023 | 471,511 | 36,371 | 139,738 | 877,084 | 1,524,704 |
Charge for year | 48,584 | 25,923 | 10,216 | 109,876 | 194,599 |
Eliminated on disposal | - | - | - | (12,617 | ) | (12,617 | ) |
At 31st December 2023 | 520,095 | 62,294 | 149,954 | 974,343 | 1,706,686 |
NET BOOK VALUE |
At 31st December 2023 | 3,009,825 | 60,257 | 17,231 | 148,471 | 3,235,784 |
At 31st December 2022 | 3,058,409 | 86,180 | 16,655 | 167,152 | 3,328,396 |
Company |
Freehold | Office | Plant & | Motor |
property | equipment | machinery | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1st January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31st December 2023 |
DEPRECIATION |
At 1st January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st January 2023 |
and 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Outside the UK |
Nature of business: |
% |
Class of shares: | holding |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
12. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1st January 2023 |
and 31st December 2023 | 650,000 |
NET BOOK VALUE |
At 31st December 2023 | 650,000 |
At 31st December 2022 | 650,000 |
Investment property is included in the financial statements at fair value of £650,000 which, in the opinion of the directors, fairly represents the open market value at the balance sheet date. |
COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
12. | INVESTMENT PROPERTY - continued |
Group |
Company |
Total |
£ |
FAIR VALUE |
At 1st January 2023 |
and 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
Investment property is included in the financial statements at fair value of £650,000 which, in the opinion of the directors, fairly represents the open market value at the balance sheet date. |
13. | STOCKS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Finished goods | 1,011,415 | 894,122 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 311,343 | 431,976 |
Amounts owed by group undertakings | - | - |
Other debtors | 18,387 | 18,368 |
Amounts owed by related |
parties | 671,638 | 595,831 | 671,637 | 595,831 |
VAT | 3,238 | 31,398 |
Prepayments and accrued income | 119,067 | 109,777 |
1,123,673 | 1,187,350 |
COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade creditors | 579,245 | 615,315 |
Amounts owed to group undertakings | - | - |
Social security and other taxes | 122,461 | 110,421 |
Other creditors | 73,645 | 73,140 |
Amounts owed to related |
parties | 1,228,976 | 935,627 | 1,228,976 | 935,627 |
Accruals and deferred income | 163,516 | 47,137 |
2,167,843 | 1,781,640 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Related party loan | 7,350,000 | 7,350,000 | 7,350,000 | 7,350,000 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 221,587 | 250,910 |
Between one and five years | 175,936 | 285,697 |
397,523 | 536,607 |
Company |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
18. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 27,041 | 27,041 | 27,041 | 27,041 |
COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
18. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1st January 2023 | 27,041 |
Balance at 31st December 2023 | 27,041 |
Company |
Deferred |
tax |
£ |
Balance at 1st January 2023 |
Balance at 31st December 2023 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 4,000,000 | 4,000,000 |
20. | RESERVES |
Group |
Retained | Revaluation | Non-distributable |
earnings | reserve | reserves | Totals |
£ | £ | £ | £ |
At 1st January 2023 | (6,284,508 | ) | 12,907 | 115,281 | (6,156,320 | ) |
Deficit for the year | (530,273 | ) | (530,273 | ) |
Transfer | 6,455 | (6,455 | ) | - | - |
At 31st December 2023 | (6,808,326 | ) | 6,452 | 115,281 | (6,686,593 | ) |
Company |
Retained | Non-distributable |
earnings | reserves | Totals |
£ | £ | £ |
At 1st January 2023 | ( |
) | (6,386,870 | ) |
Deficit for the year | ( |
) | ( |
) |
At 31st December 2023 | ( |
) | (6,878,224 | ) |
21. | ULTIMATE PARENT COMPANY |
Longfeng Colomer Co., Ltd (incorporated in China ) is regarded by the directors as being the company's ultimate parent company. |
COLOMER MUNMANY EUROPE COMPANY LTD (REGISTERED NUMBER: 08106006) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
22. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling parties are Hui Lyu and Heping Wang. |