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Registered number: 03625200









MONDRIAN LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
MONDRIAN LIMITED
 
 
COMPANY INFORMATION


Directors
L Le Gaillard 
J Lombrail 




Registered number
03625200



Registered office
Ladbroke Hall
79 Barlby Road

London

W10 6AZ




Independent auditors
Nyman Libson Paul LLP
Chartered Accountants & Statutory Auditors

124 Finchley Road

London

NW3 5JS





 
MONDRIAN LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditors' report
 
5 - 7
Statement of comprehensive income
 
8
Balance sheet
 
9
Statement of changes in equity
 
10
Notes to the financial statements
 
11 - 28


 
MONDRIAN LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Directors present the strategic report of Mondrian Limited (“the Company”) for the year ended 31 December 2023.
Principle activities
The Company operates as an art dealer specialising in contemporary collectible design.
 

Business review
 
The art market is heavily influenced by the strength of the global economy, the geopolitical environment as well as global financial markets, all factors which influence the willingness of potential buyers to invest in artworks.
Competition in the art market is fierce. A fundamental challenge facing the business is building and maintaining relationships with the well-renowned artists and dealers alike to ensure a steady supply of innovative artworks to offer to our clients.
The business continues to invest in its client offering, including the opening of a new Gallery space in Notting Hill in April 2023.
 

Financial key performance indicators
 

Year ended
Year ended 

31 December 2023
31 December 2022

£
£
Turnover
29,881,931
25,573,805
Gross profit
7,868,595
 7,886,417
Operating profit
   797,677
 1,812,365
EBITDA*
2,453,591
 1,524,730



Revenue increased by 17% to £29.9m as the business delivered significant interior design projects during 2023, leveraging key relationships with clients and interior designers.
Gross profit remained constant year-on-year as efficiencies of scales gained from large interior design projects completed during the period were offset by impairments to slow moving stock.
Operating profit fell by 56% to £0.8m as the business incurred increased operational expenses in the completion of the London gallery. 
EBITDA also increased by 61% to £2.5m due to increased profit margin on large scale interior design projects.
*Operating profit before interest, tax, depreciation, and amortisation.
 

Principal risks and uncertainties
 
The management of the business and the execution of the Company’s strategy are subject to several risks. The key business risks and uncertainties affecting the Company as set out below are considered by Senior Management with appropriate procedures and mitigating actions implemented to control them.
 
Page 1

 
MONDRIAN LIMITED
 

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


Suppliers, input products and supply chain 
Carpenters Workshop Gallery products have a high reputation for style and quality that are dependent upon reputable designers and artists as well as the raw materials used in each design. The Company could be adversely affected by a fall in the production capacity of these artists, increases in raw material costs or logistics delays resulting from the exit of Britain from the European Union. The Company sources products from various artists and suppliers who can match the Company’s standards. The Company is not dependent upon one single artist, and each is subject to at least an annual review of their products and the price paid for them. Where products are sourced in a currency other than UK £ then the Company will consider the impact of currency movements and determine whether any simple hedging of currency exposure or locking in of contracts/prices is warranted.
Employees
The Company’s employees deliver the service our clients expect from the sales process through to delivery and installation. A material decline in customer service standards could adversely affect the company and its ability to grow sales. The Company has invested in training processes and management disciplines to maintain the expected service levels. In light of the current environment the Company is doing its utmost best to retain and incentivise its employees.
Product availability
The Company’s operations are reliant on key relationships with artists and designers who create the products it sells. The Company could be adversely affected by these artists and designers being unable to manufacture products in a timely manner. The Company has contingent solutions in place for all key products.
Market conditions & competition
The Company operates within a niche market with new competitors entering the market as the demand for collectible design has grown considerably in recent years. The Company regularly reviews its products to ensure that innovation and design continues to attract clients and secure our position as market leaders.
Currency risk
The Company is exposed to translation and transaction foreign exchange risk due to trading in sterling, euro and US dollars. To mitigate this risk, the Company buys and sells currencies when rates are deemed favourable.
Liquidity risk
The Group seeks to manage risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.
Interest rate risk
The Company finances its operations through a mix of retained profits and bank facilities in place. The Company does not ordinarily enter into derivative transactions to hedge interest rates.
The Company’s business model is regularly assessed by the Board of Directors in order to implement any strategic changes as necessary.
 


This report was approved by the board on 10 October 2024 and signed on its behalf.


L Le Gaillard
Director

Page 2

 
MONDRIAN LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors

The directors who served during the year were:

L Le Gaillard 
J Lombrail 

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

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


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £301,708 (2022 - £683,164).

Aggregate dividends of £240,303 and £343,923 were paid respectively during the current and preceding financial reporting period.

Future developments

The Company is focused on providing unique contemporary functional art to our clients. We are evolving our business to ensure a seamless client experience from order to delivery and are investing significantly in our logistics capabilities and the technology that underpins our processes.
 

Page 3

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

Disclosure of information to auditors

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

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

Auditors

The auditorsNyman Libson Paul LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 10 October 2024 and signed on its behalf.
 





L Le Gaillard
Director

Page 4

 
MONDRIAN LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONDRIAN LIMITED
 

Opinion


We have audited the financial statements of Mondrian Limited (the 'Company') for the year ended 31 December 2023, which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


Page 5

 
MONDRIAN LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONDRIAN LIMITED (CONTINUED)


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

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


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


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 an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


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

 
Page 6

 
MONDRIAN LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONDRIAN LIMITED (CONTINUED)


We gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates, and considered the risk of acts by the Company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.


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 auditors' report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Paul Taiano (senior statutory auditor)
for and on behalf of
Nyman Libson Paul LLP
Chartered Accountants
Statutory Auditors
124 Finchley Road
London
NW3 5JS

11 October 2024
Page 7

 
MONDRIAN LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
29,881,931
25,573,805

Cost of sales
  
(22,013,336)
(17,687,388)

Gross profit
  
7,868,595
7,886,417

Administrative expenses
  
(7,328,726)
(6,101,056)

Other operating income
 5 
257,808
27,004

Operating profit
 6 
797,677
1,812,365

Interest receivable and similar income
 10 
28
-

Interest payable and similar expenses
 11 
(421,092)
(358,154)

Other finance income
  
245,638
(472,915)

Profit before tax
  
622,251
981,296

Tax on profit
 12 
(320,543)
(298,132)

Profit for the financial year
  
301,708
683,164

  

Total comprehensive income for the year
  
301,708
683,164

The notes on pages 11 to 28 form part of these financial statements.

Page 8

 
MONDRIAN LIMITED
REGISTERED NUMBER: 03625200

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
158,999
153,633

Tangible assets
 15 
8,897,030
7,017,162

Investments
 16 
469,879
469,879

  
9,525,908
7,640,674

Current assets
  

Stocks
 17 
24,251,607
28,636,348

Debtors: amounts falling due within one year
 18 
31,489,806
28,428,607

Cash at bank and in hand
 19 
1,994,665
472,621

  
57,736,078
57,537,576

Creditors: amounts falling due within one year
 20 
(46,932,900)
(44,661,883)

Net current assets
  
 
 
10,803,178
 
 
12,875,693

Total assets less current liabilities
  
20,329,086
20,516,367

Creditors: amounts falling due after more than one year
 21 
(9,432,354)
(9,789,260)

Provisions for liabilities
  

Deferred tax
 23 
(502,886)
(394,666)

Net assets
  
10,393,846
10,332,441


Capital and reserves
  

Called up share capital 
 24 
300
300

Profit and loss account
 25 
10,393,546
10,332,141

  
10,393,846
10,332,441


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 10 October 2024.




L Le Gaillard
Director

The notes on pages 11 to 28 form part of these financial statements.

Page 9

 
MONDRIAN LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
300
9,992,900
9,993,200



Profit for the year
-
683,164
683,164

Dividends: Equity capital
-
(343,923)
(343,923)



At 1 January 2023
300
10,332,141
10,332,441



Profit for the year
-
301,708
301,708

Dividends: Equity capital
-
(240,303)
(240,303)


At 31 December 2023
300
10,393,546
10,393,846


The notes on pages 11 to 28 form part of these financial statements.

Page 10

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

1.


General information

Mondrian Limited is a private company limted by shares, incorporated in England and Wales. The address of the registered office and principal place of business is Ladbroke Hall, 79 Barlby Road, London, United Kingdom, W10 6AZ. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A.

This information is included in the consolidated financial statements of Carpenters Group Limited as at 31 December 2023 and these financial statements may be obtained from Ladbroke Hall, 79 Barlby Road, London W10 6AZ.

 
2.3

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

 
2.4

Going concern

The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future.
The Directors have prepared cashflow projections for the Company covering a period of at least 12 months from the date of approval of these financial statements and the Directors consider the Company will be able to operate within its available facilities. Therefore, the financial statements have been prepared on a going concern basis, which the Directors believe to be appropriate.

Page 11

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

2.Accounting policies (continued)

 
2.5

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.6

Revenue

Revenue from the sale of goods is recognised when significant risks and rewards of ownership have been transferred to the buyer. The criteria are that the piece that has been sold is delivered and the company has no other obligations to the client.
 

 
2.7

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 12

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

2.Accounting policies (continued)

 
2.10

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.11

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.12

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.13

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. Intangible assets are amortised over their useful life of three years.

Page 13

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

2.Accounting policies (continued)

 
2.14

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, .

Depreciation is provided on the following basis:

Long-term leasehold property
-
over the term of the lease
Plant and machinery
-
over 5 years
Fixtures and fittings
-
20% reducing balance
Office equipment
-
20% reducing balance

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

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

 
2.15

Valuation of investments

Fixed asset investments comprise the following:
Holdings in unlisted company shares of subsidiary undertakings
Such holdings are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at cost less provision for impairment at the reporting date.
Holdings in unlisted company shares of associated undertakings
Such holdings are a form of financial instrument. The Company accounts for its interests in associated undertakings using the equity method. Under this method, the Company recognises its investment in the associated undertaking at cost and subsequently adjusts this for its share of profits or losses, recognised in profit or loss within non-operating items, and accumulated provision for impairment.

Page 14

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

2.Accounting policies (continued)

 
2.16

Associates and joint ventures

Associates and Joint Ventures are held at cost less impairment.

 
2.17

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of design and production of the stock item and  work in progress includes cost of design and production of stock item incurred up to the reporting date.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
 
 
2.18

Debtors

Short-term debtors are measured at transaction price, less any impairment.

 
2.19

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

 
2.20

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.21

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.22

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. 
Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. 
 
Page 15

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

2.Accounting policies (continued)


2.22
Financial instruments (continued)


Investments in non-derivative instruments that are equity to the issuer are measured:
   - at fair value with changes recognised in the statement of comprehensive income if the shares  
     are publicly traded or their fair value, if can otherwise be measured reliably;
   - at cost less impairment for all other investments.

 
2.23

Dividends

Equity dividends are recognised when they become legally payable. 


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Significant judgements
The group did not make any significant judgements (apart from those involving estimations which are detailed below) that have a significant effect on the amounts recognised in the financial statements.
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
The management makes an estimate of recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
The annual depreciation charge for the tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
There were no other key sources of estimation uncertainty.

Page 16

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

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Sales
29,881,931
25,573,805


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
1,894,686
514,536

Rest of the world
27,987,245
25,059,269

29,881,931
25,573,805



5.


Other operating income

2023
2022
£
£

Other operating income
257,808
27,004



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
(674,688)
384,279

Other operating lease rentals
1,283,911
1,268,260

Page 17

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

7.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
69,750
61,000

The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent company.


8.


Employees

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


2023
2022
£
£

Wages and salaries
1,513,331
1,103,379

Social security costs
209,601
176,227

Cost of defined contribution scheme
45,245
29,603

1,768,177
1,309,209


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


        2023
        2022
            No.
            No.







Employees
32
25

Key management personnel
The directors of the Company are recognised as being the key management personnel of the Company. It is these individuals who together hold joint responsibility for planning, directing and controlling the activities of the company.
 


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
44,192
41,301


Page 18

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

10.


Interest receivable

2023
2022
£
£


Other interest receivable
28
-


11.


Interest payable and similar expenses

2023
2022
£
£


Interest payable
421,092
358,154


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
212,323
-

Adjustments in respect of previous periods
-
32,462

Total current tax
212,323
32,462

Deferred tax


Origination and reversal of timing differences
108,220
265,670

Taxation on profit on ordinary activities
 
320,543
 
298,132
Page 19

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


.


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
622,251
981,296


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
146,229
186,446

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,357
216

Short-term timing difference leading to an increase (decrease) in taxation
171,957
73,689

Unrelieved tax losses carried forward
-
5,319

Prior period tax adjustment
-
32,462

Total tax charge for the year
320,543
298,132


13.


Dividends

2023
2022
£
£


Dividends paid
240,303
343,923

240,303
343,923

Page 20

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

14.


Intangible assets




Computer software

£



Cost


At 1 January 2023
288,263


Additions
114,221



At 31 December 2023

402,484



Amortisation


At 1 January 2023
134,630


Charge for the year on owned assets
108,855



At 31 December 2023

243,485



Net book value



At 31 December 2023
158,999



At 31 December 2022
153,633



Page 21

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

15.


Tangible fixed assets





Long-term leasehold property
Plant and machinery
Fixtures and fittings
Office equipment
Total

£
£
£
£
£



Cost 


At 1 January 2023
6,806,683
114,895
629,389
79,284
7,630,251


Additions
2,461,547
158,746
125,759
52,840
2,798,892



At 31 December 2023

9,268,230
273,641
755,148
132,124
10,429,143



Depreciation


At 1 January 2023
190,843
102,132
283,676
36,438
613,089


Charge for the year on owned assets
804,028
12,960
86,739
15,297
919,024



At 31 December 2023

994,871
115,092
370,415
51,735
1,532,113



Net book value



At 31 December 2023
8,273,359
158,549
384,733
80,389
8,897,030



At 31 December 2022
6,615,840
12,763
345,713
42,846
7,017,162


16.


Fixed asset investments





Investments in subsidiary companies
Investments in associates
Total

£
£
£



Cost or valuation


At 1 January 2023
380,393
89,486
469,879



At 31 December 2023
380,393
89,486
469,879




Page 22

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

Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Carpenters Workshop Gallery LLC New York
693 5th Ave, 19th Floor, New York, USA
Ordinary
100%


Associates


The following were associates of the Company:


Name

Registered office

Class of shares

Holding

Andromark
14 Rue Charles V Paris 75004, France
Ordinary
10%
La Donnalucata Srl
Contrada Landolona snc 97018 Sicily, Italy
Ordinary
10%


17.


Stocks

2023
2022
£
£

Finished goods
22,006,518
27,424,936

Work in progress
2,245,089
1,211,412

24,251,607
28,636,348


Page 23

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

18.


Debtors

2023
2022
£
£


Trade debtors
11,706,575
6,926,326

Amounts owed by group undertakings
17,297,579
19,371,613

Other debtors
1,366,362
1,186,863

Prepayments and accrued income
1,119,290
943,805

31,489,806
28,428,607


Amounts owed by group undertakings falling due within one year are unsecured, interest-free and repayable on demand with no fixed date for repayment.
As at 31 December 2023, trade and other debtors falling due within one year were deemed fully recoverable.


19.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
1,994,665
472,621

Less: bank overdrafts
(1,587,407)
-

407,258
472,621


Page 24

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

20.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
1,587,407
-

Bank loans
491,482
825,473

Other loans
1,733,846
-

Trade creditors
18,846,944
13,599,707

Amounts owed to group undertakings
13,726,242
19,526,460

Corporation tax
211,489
-

Other taxation and social security
60,539
48,670

Other creditors
4,971,135
3,355,866

Accruals and deferred income
5,303,816
7,305,707

46,932,900
44,661,883


Amounts owed by group undertakings falling due within one year are unsecured, interest-free and repayable on demand with no fixed date for repayment.


21.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
433,734
885,841

Amounts owed to group undertakings
8,998,620
8,903,419

9,432,354
9,789,260


The following liabilities were secured:

2023
2022
£
£



Bank loans
925,216
1,711,314

925,216
1,711,314

Details of security provided:

HSBC Bank: Debenture including Fixed Charge over all present freehold and leasehold property; First Fixed Charge over the book and other debts, chattels, goodwill and uncalled capital, both present and future; and First Floating Charge over all assets and undertaking both present and future.
Neuflize OBC Bank - A joint and several guarantees for a maximum total amount of Euro 3,250,000 each from the directors, Loic Le Gaillard and Julien Lombrail.

Page 25

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

22.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
491,482
825,473

Other loan
1,733,846
-

Amounts falling due 1-2 years

Bank loans
433,734
442,921

Amounts falling due 2-5 years

Bank loans
-
442,920


2,659,062
1,711,314



23.


Deferred taxation



2023
2022


£

£






At beginning of year
(394,666)
(128,996)


Charged to profit or loss
(108,220)
(265,670)



At end of year
(502,886)
(394,666)

The provision for deferred taxation is made up as follows:

2023
£


Accelerated capital allowances
502,886

Page 26

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

24.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



100 (2022 - 100) Ordinary shares shares of £1.00 each
100
100
100 (2022 - 100) A Ordinary shares shares of £1.00 each
100
100
100 (2022 - 100) B Ordinary shares shares of £1.00 each
100
100

300

300



25.


Reserves

Profit and loss account

The profit and loss account includes all current and prior period retained profits and (losses).


26.


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 £45,245 (2022: £29,603). Contributions totalling £10,974 (2022: £8,144) were payable to the fund at the reporting date and are included in creditors.


27.


Commitments under operating leases

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

2023
2022
£
£


Not later than 1 year
913,041
985,814

Later than 1 year and not later than 5 years
3,385,693
2,724,166

Later than 5 years
1,036,438
2,860,000

5,335,172
6,569,980


28.Other financial commitments

At the reporting date, the Company is financially committed to purchasing stock items totalling £ 177,005 (2022: £543,154) from various artists and letters of credit to the value of £nil (2022: £286,858) have been issued by its bank.

Page 27

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

29.


Related party transactions

Wholly-owned group undertakings
As the Company forms part of a group for which consolidated financial statements are prepared and the results of the company are included within as part of the consolidation, the Company has taken advantage of the exemptions provided by Section 33 of Financial Reporting Standard 102 from the requirement to disclose transactions undertaken or balances carried forward as at the reporting date between the Company and its fellow wholly-owned group undertakings. Outstanding aggregated balances with the company's fellow wholly-owned group undertakings as at the reporting date are disclosed within notes 18 and 20 of the financial statements.
Other related parties
At the reporting date, the Company owed a total of £206,438 (2022: £217,842) to its directors and was owed a net aggregate total of £363,365 (2022: £613,365) by companies which are jointly controlled by the directors.


30.


Controlling party

The Company's immediate and ultimate parent undertaking is Carpenters Group Limited, a company registered in England & Wales. 
There is no ultimate controlling party of Carpenters Group Limited.
The ultimate parent undertaking to consolidate these financial statements is Carpenters Group Limited. Copies of the Carpenters Group Limited consolidated financial statements are available from Ladbroke Hall, 79 Barlby Road, London, England, W10 6AZ.

 
Page 28