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REGISTERED NUMBER: 05858134 (England and Wales)







STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

MONIKA SPRUTH & PHILOMENE MAGERS LIMITED

MONIKA SPRUTH & PHILOMENE MAGERS LIMITED (REGISTERED NUMBER: 05858134)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income (including P&L account) 7

Balance Sheet 8

Statement of Changes in Equity 9

Cash Flow Statement 10

Notes to the Financial Statements 11


MONIKA SPRUTH & PHILOMENE MAGERS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: Mrs M I G Spruth
Mrs P K K Schmidt-Garre
Mr A E Gegner
Mrs I K VonSengerUndEtterlin





SECRETARY: Mrs M I G Spruth





REGISTERED OFFICE: 7a Grafton Street
London
W1S 4EJ





REGISTERED NUMBER: 05858134 (England and Wales)





AUDITORS: Cube Partners Limited, Statutory Auditor
5 Giffard Court
Millbrook Close
Northampton
NN5 5JF

MONIKA SPRUTH & PHILOMENE MAGERS LIMITED (REGISTERED NUMBER: 05858134)

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
Monika Spruth & Philomene Magers Limited operates a gallery for contemporary art in Central London's Mayfair since 2006. The company exhibits and sells works by artists it primarily represents on the Primary Market. It currently works with over 70 artists and estates. The gallery continues to work with mid-career artists such as Thomas Demand and Sterling Ruby and regularly expands its programme with emerging younger artists such as Cao Fei, Anne Imhof and Mire Lee.

The results for the company show a pre-tax profit of £334,313 (prior period - £139,859) for the year on sales of £17,652,318 (prior period - £15,820,719).

After the pandemic in 2020 and 2021, when physical art fairs and exhibitions were largely cancelled, the art market slowly picked up again over the course of 2021 to 2023. The year 2023 began with solo exhibitions by Jon Rafman and Gretchen Bender on several floors at 7A Grafton Street, followed by solo exhibitions with Craig Kauffmann, Andreas Schulze, Jean-Luc Mylayne, Andro Wekua and a large survey show by Sylvie Fleury.

PRINCIPAL RISKS AND UNCERTAINTIES
The key business risks and uncertainties affecting the business are considered to be:

Economic risk
The UK and world economic uncertainties represents a global rather than an individual risk to the business. Investment in art continues to be strong, despite the Brexit uncertainties for the UK economy, with investors continuing to be drawn to the long term returns potential. The deteriorating global economic outlook from past years may well create uncertainties in the development of the art market, the effects of which could still impact the future year end results.

Financial risk
The company maintains funds in US dollars and Euros in addition to Sterling. Where possible the company attempts to match the currency of purchase and sale for each sale transaction to minimise the exposure to currency fluctuations. The company does not enter into any forward foreign currency transactions or hedging to minimise exchange rate risk further.

Pricing Risk
Demand and trends in the art market have a particularly significant impact upon the purchasing and selling price of the owned art stock. The company utilises its resources to promote and maintain demand for works by its roster of artists.

The company generates cash and therefore does not have any significant liquidity exposure.

POSITION OF THE COMPANY AT THE BALANCE SHEET DATE
The company continues to report a strong balance sheet position at its financial year end. It maintained healthy reserves and an excess of current assets over current liabilities. Despite the global economic uncertainties the company is in a strong financial position as it enters 2024.

KEY PERFORMANCE INDICATORS
The company measures its financial performance by growth in turnover and profitability, the volume of orders at the art fairs, and profit margin.

Compared to the previous year, sales increased slightly in 2023 and although profitability was affected by rising costs in all areas of art gallery operations - transport, packaging, installation, salaries, rent and participation in art fairs - a respectable profit was achieved.

ON BEHALF OF THE BOARD:





Mrs I K VonSengerUndEtterlin - Director


23 September 2024

MONIKA SPRUTH & PHILOMENE MAGERS LIMITED (REGISTERED NUMBER: 05858134)

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.

Information relating to financial instruments has been included within the Strategic Report.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of art gallery and dealers.

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2023 was £240,000 (2022: £280,000).

FUTURE DEVELOPMENTS
This information has been included within the strategic report.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

Mrs M I G Spruth
Mrs P K K Schmidt-Garre
Mr A E Gegner
Mrs I K VonSengerUndEtterlin

FINANCIAL INSTRUMENTS
This information has been included in the Strategic Report.

POLITICAL DONATIONS AND EXPENDITURE
Donations paid during the year ended 31 December 2023 were charitable not political.

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.

The directors are responsible for preparing the Strategic Report.

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

MONIKA SPRUTH & PHILOMENE MAGERS LIMITED (REGISTERED NUMBER: 05858134)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


AUDITORS
The auditors, Cube Partners Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mrs I K VonSengerUndEtterlin - Director


23 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MONIKA SPRUTH & PHILOMENE MAGERS LIMITED

Opinion
We have audited the financial statements of Monika Spruth & Philomene Magers Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income (including P&L account), Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and 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.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MONIKA SPRUTH & PHILOMENE MAGERS LIMITED


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.

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

We considered the central laws and regulations to the entity and identified those of significance to the entity. The significant laws and regulations include UK company law and health and safety at work regulations. We undertook an enquiry of management and those charged with governance to evaluate those of significance and any instances of non-compliance.

Through discussion, and where appropriate, written representation, we obtained an understanding of the entity’s policies and procedures on fraud risks, including knowledge of any actual, suspected or alleged fraud.

Where necessary documentation scrutiny was used to determine the significance of any instances of non-compliance of central laws and regulations.

We communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

The risk of management override of controls and understatement of revenue were identified to have the greatest risk of material misstatement from irregularities, including fraud, on the financial statements. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of regularities, sample testing on the posting of journals, reviewing of regulatory correspondence and professional fees, detailed substantive testing on the completeness of income, and reviewing accounting estimates for biases.

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.




Steven Jones ACA (Senior Statutory Auditor)
for and on behalf of Cube Partners Limited, Statutory Auditor
5 Giffard Court
Millbrook Close
Northampton
NN5 5JF

24 September 2024

MONIKA SPRUTH & PHILOMENE MAGERS LIMITED (REGISTERED NUMBER: 05858134)

STATEMENT OF COMPREHENSIVE INCOME (INCLUDING P&L ACCOUNT)
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 4 17,652,318 15,820,719

Cost of sales 13,741,724 12,631,234
GROSS PROFIT 3,910,594 3,189,485

Administrative expenses 3,661,853 3,025,444
248,741 164,041

Other operating income 102,995 6,000
OPERATING PROFIT 6 351,736 170,041

Interest receivable and similar income 17,647 15,029
369,383 185,070

Interest payable and similar expenses 7 35,070 45,211
PROFIT BEFORE TAXATION 334,313 139,859

Tax on profit 8 92,136 39,019
PROFIT FOR THE FINANCIAL YEAR 242,177 100,840

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

242,177

100,840

MONIKA SPRUTH & PHILOMENE MAGERS LIMITED (REGISTERED NUMBER: 05858134)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 452,970 491,522

CURRENT ASSETS
Stocks 11 5,019,027 5,230,298
Debtors 12 8,234,775 7,410,494
Cash at bank and in hand 984,684 485,180
14,238,486 13,125,972
CREDITORS
Amounts falling due within one year 13 7,408,557 6,153,227
NET CURRENT ASSETS 6,829,929 6,972,745
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,282,899

7,464,267

CREDITORS
Amounts falling due after more than one year 14 (400,000 ) (600,000 )

PROVISIONS FOR LIABILITIES 18 (143,618 ) (127,163 )
NET ASSETS 6,739,281 6,737,104

CAPITAL AND RESERVES
Called up share capital 19 1,000 1,000
Retained earnings 6,738,281 6,736,104
SHAREHOLDERS' FUNDS 6,739,281 6,737,104

The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2024 and were signed on its behalf by:





Mrs I K VonSengerUndEtterlin - Director


MONIKA SPRUTH & PHILOMENE MAGERS LIMITED (REGISTERED NUMBER: 05858134)

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 1,000 6,915,264 6,916,264

Changes in equity
Profit for the year - 100,840 100,840
Total comprehensive income - 100,840 100,840
Dividends - (280,000 ) (280,000 )
Balance at 31 December 2022 1,000 6,736,104 6,737,104

Changes in equity
Profit for the year - 242,177 242,177
Total comprehensive income - 242,177 242,177
Dividends - (240,000 ) (240,000 )
Balance at 31 December 2023 1,000 6,738,281 6,739,281

MONIKA SPRUTH & PHILOMENE MAGERS LIMITED (REGISTERED NUMBER: 05858134)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 22 1,391,844 440,474
Interest paid (35,070 ) (45,211 )
Tax paid (36,690 ) (43,538 )
Net cash from operating activities 1,320,084 351,725

Cash flows from investing activities
Purchase of tangible fixed assets (21,231 ) (5,621 )
Sale of tangible fixed assets - 17,159
Interest received 17,647 15,029
Net cash from investing activities (3,584 ) 26,567

Cash flows from financing activities
Loan repayments in year (200,000 ) (261,343 )
Amount introduced by directors 240,075 292,414
Amount withdrawn by directors (617,071 ) (351,857 )
Equity dividends paid (240,000 ) (280,000 )
Net cash from financing activities (816,996 ) (600,786 )

Increase/(decrease) in cash and cash equivalents 499,504 (222,494 )
Cash and cash equivalents at beginning of year 23 485,180 707,674

Cash and cash equivalents at end of year 23 984,684 485,180

MONIKA SPRUTH & PHILOMENE MAGERS LIMITED (REGISTERED NUMBER: 05858134)

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

1. STATUTORY INFORMATION

Monika Spruth & Philomene Magers 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 presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

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

Turnover and income recognition
Turnover represents sales of goods, excluding value added tax, during the year. Income from the sale of works of art and other sundry items is recognised in the period in which the sale is contractually agreed with the customer.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - Over the term of the lease
Improvements to property - Over the term of the lease
Plant and machinery - 20% on cost
Fixtures and fittings - 20% on cost

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses.

Stocks
Stocks consist of works of art held for resale. These are stated at the lower of cost and the directors' opinion of estimated selling price less selling costs.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income (including P&L account), 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 denominated
Monetary assets and liabilities, in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions denominated in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences arising from the settlement of transactions and at the year end are taken into account in arriving at the operating result.

MONIKA SPRUTH & PHILOMENE MAGERS LIMITED (REGISTERED NUMBER: 05858134)

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

2. ACCOUNTING POLICIES - continued

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.

Financial instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, loans from banks and other third parties and loans with related parties.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an assets carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an enforcible right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the the asset and settle the liability simultaneously.

Operating leases
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Provisions
Provisions are recognised when the company has a legal or constructive obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle the obligation and the amount of the obligation can be reliably met.

Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the accountancy policies, management have been required to make judgements, estimates and assumptions. These estimates which relate to the carrying values of assets and liabilities, where not readily available from other sources are based on underlying assumptions and experience. Actual results may differ from these estimates. The estimates and assumptions are viewed on an on-going basis.The significant estimates and judgements are as follows:

(i) Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. These are re-assessed annually and amended when necessary to reflect current estimates and judgements.

(ii) Stock
The impairment of stock is considered annually by the directors on an item by item basis. Where necessary a write down provision is applied based upon an estimation of realisable value.

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
UK 365,465 1,325,408
Europe 8,777,840 6,417,644
Outside of Europe 8,509,013 8,077,667
17,652,318 15,820,719

MONIKA SPRUTH & PHILOMENE MAGERS LIMITED (REGISTERED NUMBER: 05858134)

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

5. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 784,390 570,696
Social security costs 86,503 70,377
Other pension costs 54,180 45,916
925,073 686,989

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

Gallery 8 7
Administration 1 1
Directors 4 4
13 12

2023 2022
£    £   
Directors' remuneration 215,313 174,099

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

Information regarding the highest paid director for the year ended 31 December 2023 is as follows:
2023
£   
Emoluments etc 215,313

6. OPERATING PROFIT

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

2023 2022
£    £   
Other operating leases 1,247,189 1,029,251
Depreciation - owned assets 59,783 81,809
Profit on disposal of fixed assets - (15,567 )
Auditors' remuneration 19,900 23,100
Auditors' remuneration for non audit work 19,428 26,825
Foreign exchange differences (19,531 ) (110,589 )

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 502 304
Bank loan interest 34,568 44,907
35,070 45,211

MONIKA SPRUTH & PHILOMENE MAGERS LIMITED (REGISTERED NUMBER: 05858134)

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

8. 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 90,681 36,689

Deferred tax 1,455 2,330
Tax on profit 92,136 39,019

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 334,313 139,859
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2022 -
19%)

83,578

26,573

Effects of:
Expenses not deductible for tax purposes 9,225 3,596
Depreciation in excess of capital allowances 3,582 6,520
Marginal relief (5,704 ) -
Deferred tax 1,455 2,330
Total tax charge 92,136 39,019

9. DIVIDENDS
2023 2022
£    £   
Interim 240,000 280,000

10. TANGIBLE FIXED ASSETS
Improvements Fixtures
Short to Plant and and
leasehold property machinery fittings Totals
£    £    £    £    £   
COST
At 1 January 2023 239,148 556,528 30,381 433,572 1,259,629
Additions - - 16,550 4,681 21,231
At 31 December 2023 239,148 556,528 46,931 438,253 1,280,860
DEPRECIATION
At 1 January 2023 95,660 221,902 20,867 429,678 768,107
Charge for year 15,943 37,101 5,192 1,547 59,783
At 31 December 2023 111,603 259,003 26,059 431,225 827,890
NET BOOK VALUE
At 31 December 2023 127,545 297,525 20,872 7,028 452,970
At 31 December 2022 143,488 334,626 9,514 3,894 491,522

MONIKA SPRUTH & PHILOMENE MAGERS LIMITED (REGISTERED NUMBER: 05858134)

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

11. STOCKS
2023 2022
£    £   
Works of art for resale 5,019,027 5,230,298

Stocks recognised in cost of sales during the year as an expense was £10,896,841 (2022: £10,680,828).

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,627,756 1,271,126
Other debtors 4,993,120 5,155,119
Directors' current accounts 1,024,612 647,616
VAT 109,568 -
Prepayments 479,719 336,633
8,234,775 7,410,494

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 15) 200,000 200,000
Trade creditors 4,355,071 3,489,769
Tax 90,681 36,690
Social security and other taxes 26,744 26,174
VAT - 25,793
Other creditors 23,932 23,533
Accruals and deferred income 2,712,129 2,351,268
7,408,557 6,153,227

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans (see note 15) 400,000 600,000

15. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 200,000 200,000

Amounts falling due between one and two years:
Bank loans - 1-2 years 200,000 200,000

Amounts falling due between two and five years:
Bank loans - 2-5 years 200,000 400,000

MONIKA SPRUTH & PHILOMENE MAGERS LIMITED (REGISTERED NUMBER: 05858134)

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

16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 1,100,000 1,100,000
Between one and five years 4,400,000 4,400,000
In more than five years 3,850,000 4,950,000
9,350,000 10,450,000

17. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 600,000 800,000

Bank borrowing is secured by a Debenture including a Fixed and Floating charge over the assets of the company in favour of the bank.

18. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 23,618 22,163
Other provisions 120,000 105,000
143,618 127,163

Deferred Other
tax provisions
£    £   
Balance at 1 January 2023 22,163 105,000
Provided during year - 15,000
Accelerated capital allowances 1,455 -
Balance at 31 December 2023 23,618 120,000

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
1,000 Ordinary £1 1,000 1,000

20. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

At the balance sheet date, the directors owed the company £1,024,612 (2022: £647,616).
There are no formal terms of repayment with interest charged on the loans at the HMRC official rate.

MONIKA SPRUTH & PHILOMENE MAGERS LIMITED (REGISTERED NUMBER: 05858134)

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

21. RELATED PARTY DISCLOSURES

As at the balance sheet the company was owed a total of £4,487,074 (2022: £4,021,510) from companies under common directorship and common control.

During the year the company made sales of £1,411,764 (2022: £1,020,213) and purchases of £1,718,505 (2022: £804,358) to and from companies under common directorship and common control.

At the balance sheet date, £519,931 (2022: £637,476) was due from the company to close family controlled businesses of the directors.

22. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 334,313 139,859
Depreciation charges 59,783 81,809
Profit on disposal of fixed assets - (15,567 )
Government grants - (6,000 )
Finance costs 35,070 45,211
Finance income (17,647 ) (15,029 )
411,519 230,283
Decrease/(increase) in stocks 211,271 (21,787 )
Increase in trade and other debtors (447,285 ) (1,367,935 )
Increase in trade and other creditors 1,216,339 1,599,913
Cash generated from operations 1,391,844 440,474

23. 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 984,684 485,180
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 485,180 707,674


MONIKA SPRUTH & PHILOMENE MAGERS LIMITED (REGISTERED NUMBER: 05858134)

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

24. ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 485,180 499,504 984,684
485,180 499,504 984,684
Debt
Debts falling due within 1 year (200,000 ) - (200,000 )
Debts falling due after 1 year (600,000 ) 200,000 (400,000 )
(800,000 ) 200,000 (600,000 )
Total (314,820 ) 699,504 384,684