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Registered number: 02864552









MEKZ LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024

 
MEKZ LIMITED
 
 
COMPANY INFORMATION


Director
M Mansfield 




Company secretary
M Mansfield



Registered number
02864552



Registered office
2 Etongate
110 Windsor Road

Slough

Berkshire

SL1 2JA




Independent auditors
Barnes Roffe LLP
Chartered Accountants & Statutory Auditors

3 Brook Business Centre

Cowley Mill Road

Uxbridge

Middlesex

UB8 2FX





 
MEKZ LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 2
Director's report
 
3 - 4
Independent auditors' report
 
5 - 8
Statement of comprehensive income
 
9
Statement of financial position
 
10
Statement of changes in equity
 
11
Statement of cash flows
 
12
Analysis of net debt
 
13
Notes to the financial statements
 
14 - 25

 
MEKZ LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024

Introduction
 
The directors present their strategic report for the year ended 30 June 2024. 
The principal activity of the company continues to be export of industrial raw materials to the African continent.

Business review and future developments

We maintained the same turnover as the previous year in a tough market. Margins also remain consistent with FY 2023 levels.
There are challenges in certain markets due to foreign exchange availability, lower demand and customers with high levels of stock. However, there are also opportunities for increased business with key customers due to new projects, and we are looking at sales into new markets.
Although competition is increasing, the outlook is positive due to strong relationships with customer and supplier partners.
We anticipate that trading will continue a similar level, with sufficient turnover and margins to manage and service all commitments and obligations and to continue to produce profits at current levels.

Principal risks and uncertainties
 
Currency exchange risk
We do, as far as possible, buy and sell in the same currency to avoid any exchange risks.

Credit risk
 
We have implemented a more rigid policy and withdrawn the credit facility for a significant number of customers who previously had open credit terms.
In some cases, this new policy has meant that we have stopped business with certain customers and some markets.

Environmental policy
 
As usual we try to promote the most environmental friendly solutions/products. We take all steps to make the customer aware of the handling of the product and to the measures they must implement to protect themselves and their workers.

Financial key performance indicators
In seeking to achieve its business plan, the company reviews turnover, gross profit margin, and net profit on at least a quarterly basis. All targets are being achieved within acceptable tolerances and we are always looking at ways to increase turnover, gross profit and operating profits whilst being fully aware of the possible obstacles we face in the markets we deal with.

Page 1

 
MEKZ LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024


This report was approved by the board on 8 November 2024 and signed on its behalf.





M Mansfield
Director
Page 2

 
MEKZ LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2024

The director presents his report and the financial statements for the year ended 30 June 2024.

Director's responsibilities statement

The director is responsible for preparing the Strategic report, the Director's report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006He is 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 £158,999 (2023 - £95,007).

During the year, equity dividends of £1,000 (2023 - £33,500) were declared and paid to the shareholders.

Director

The director who served during the year was:

M Mansfield 

Disclosure of information to auditors

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

he 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.

Page 3

 
MEKZ LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Post balance sheet events

There have been no significant events affecting the Company since the year end.
Matters discussed in strategic report
Information on the future developments and the likely financial risk management objectives and policies of the company are given in the Strategic report on page 1.

Auditors

The auditorsBarnes Roffe LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 8 November 2024 and signed on its behalf.
 





M Mansfield
Director
Page 4

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

Opinion


We have audited the financial statements of Mekz Limited (the 'Company') for the year ended 30 June 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, 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 30 June 2024 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 director's 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 director with respect to going concern are described in the relevant sections of this report.


Page 5

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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is 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.


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 Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Director's 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 Director's 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 director's 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 Director's responsibilities statement set out on page 3, the director is 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 director determines 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 director is 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 director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Page 6

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


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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with law and regulations, was as follows:

The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
We identified the laws and regulations applicable to the company through discussion with directors and other management, and from our commercial knowledge and experience of the relevant sector;
The specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, are as follows:
°Companies Act 2006
°FRS 102
°Tax legislation
°Employment legislation
°Health and safety legislation
We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and reviewing supporting evidence where applicable; and
Laws and regulations were communicated within the audit team at the planning meeting, and during the audit as any further laws and regulation were identified. The audit team remained alert to instances of noncompliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur by:

Making enquiries of management as to where they consider there was susceptibility to fraud and their knowledge of actual suspected and alleged fraud;
Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
Reviewing the financial statements and testing the disclosures against supporting documentation;
Performing analytical procedures to identify any unusual or unexpected trends or anomalies;
Inspecting and testing journal entries to identify unusual or unexpected transactions;
Assessing whether judgement and assumptions made in determining significant accounting estimates, were indicative of management bias; and
Investigating the rationale behind significant transactions, or transactions that are unusual or outside the company’s usual course of business.

Page 7

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


The areas that we identified as being susceptible to misstatement through fraud were:

Management bias in the estimates and judgements made;
Management override of controls; and
Posting of unusual journals or transactions.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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.





Mark Hancock (Senior statutory auditor)
for and on behalf of
Barnes Roffe LLP
Chartered Accountants & Statutory Auditors
3 Brook Business Centre
Cowley Mill Road
Uxbridge
Middlesex
UB8 2FX

 
Date: 
8 November 2024
Page 8

 
MEKZ LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
Note
£
£

  

Turnover
 4 
9,397,296
9,937,642

Cost of sales
  
(8,684,905)
(9,033,674)

Gross profit
  
712,391
903,968

Distribution costs
  
(17,039)
(23,058)

Administrative expenses
  
(537,008)
(756,697)

Operating profit
 5 
158,344
124,213

Interest receivable and similar income
  
48,001
-

Profit before tax
  
206,345
124,213

Tax on profit
 10 
(47,346)
(29,206)

Profit for the financial year
  
158,999
95,007

Total comprehensive income for the year
  
158,999
95,007

The notes on pages 14 to 25 form part of these financial statements.
Page 9

 
MEKZ LIMITED
REGISTERED NUMBER: 02864552

STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024


2024

2023
Note
£
£
£
£

Fixed assets
  

Tangible assets
 12 
309,372
290,951

Current assets
  

Stocks
 13 
455,741
106,750

Debtors: amounts falling due within one year
 14 
1,693,934
3,847,275

Cash at bank and in hand
 15 
4,269,306
1,959,628

  
6,418,981
5,913,653

Creditors: amounts falling due within one year
 16 
(1,231,896)
(866,146)

Net current assets
  
 
 
5,187,085
 
 
5,047,507

Total assets less current liabilities
  
5,496,457
5,338,458

  

Net assets
  
5,496,457
5,338,458


Capital and reserves
  

Called up share capital 
 17 
200,000
200,000

Profit and loss account
 18 
5,296,457
5,138,458

  
5,496,457
5,338,458


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 8 November 2024.




M Mansfield
Director

The notes on pages 14 to 25 form part of these financial statements.
Page 10

 
MEKZ LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 July 2023
200,000
5,138,458
5,338,458


Comprehensive income for the year

Profit for the year
-
158,999
158,999
Total comprehensive income for the year
-
158,999
158,999


Contributions by and distributions to owners

Dividends: Equity capital
-
(1,000)
(1,000)


Total transactions with owners
-
(1,000)
(1,000)


At 30 June 2024
200,000
5,296,457
5,496,457


The notes on pages 14 to 25 form part of these financial statements.


STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 July 2022
200,000
5,076,951
5,276,951


Comprehensive income for the year

Profit for the year
-
95,007
95,007
Total comprehensive income for the year
-
95,007
95,007


Contributions by and distributions to owners

Dividends: Equity capital
-
(33,500)
(33,500)


Total transactions with owners
-
(33,500)
(33,500)


At 30 June 2023
200,000
5,138,458
5,338,458


The notes on pages 14 to 25 form part of these financial statements.
Page 11

 
MEKZ LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
158,999
95,007

Adjustments for:

Depreciation of tangible assets
16,268
9,639

Profit on disposal of tangible assets
(1,446)
-

Interest received
(48,001)
-

Taxation charge
47,346
29,206

(Increase)/decrease in stocks
(348,991)
78,987

Decrease in debtors
2,153,341
4,620,649

Increase/(decrease) in creditors
347,635
(3,561,550)

Increase/(decrease)) in amounts owed to groups
-
(980)

Corporation tax (paid)
(29,231)
(161,359)

Net cash generated from operating activities

2,295,920
1,109,599


Cash flows from investing activities

Purchase of tangible fixed assets
(34,689)
-

Sale of tangible fixed assets
1,446
-

Interest received
48,001
-

Net cash from investing activities

14,758
-

Cash flows from financing activities

Dividends paid
(1,000)
(33,500)

Net cash used in financing activities
(1,000)
(33,500)

Net increase in cash and cash equivalents
2,309,678
1,076,099

Cash and cash equivalents at beginning of year
1,959,628
883,529

Cash and cash equivalents at the end of year
4,269,306
1,959,628


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
4,269,306
1,959,628

4,269,306
1,959,628


The notes on pages 14 to 25 form part of these financial statements.

Page 12

 
MEKZ LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 JUNE 2024




At 1 July 2023
Cash flows
At 30 June 2024
£

£

£

Cash at bank and in hand

1,959,628

2,309,678

4,269,306

Debt due within 1 year

-

-

-


1,959,628
2,309,678
4,269,306

The notes on pages 14 to 25 form part of these financial statements.
Page 13

 
MEKZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1.


General information

Mekz Limited is a company limited by shares, incorporated in England and Wales.  The address of the registered office is 2 Etongate, 110 Windsor Road, Slough, Berkshire, SL1 2JA.
The company specialises in the export of industrial raw materials and food & beverage products to the African continent.

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

Going concern

The director notes that the company is trading adequately and has sufficient working capital and other finance available to continue trading for a period of not less than 12 months from the date these financial statements are approved. As such, the director believes that there are no significant uncertainties in his assessment of whether the business is a going concern and therefore has prepared the accounts on a going concern basis.

 
2.3

Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Turnover is recognised when goods are sold.

Page 14

 
MEKZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.4

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, using the straight-line method.

Depreciation is provided on the following bases:

Freehold property
-
2% Straight line
Fixtures and fittings
-
25% Straight line

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 the Statement of comprehensive income.

 
2.5

Stocks

Stocks are valued at lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

 
2.6

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.7

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. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.8

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
Page 15

 
MEKZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)


2.8
Financial instruments (continued)

and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
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 can otherwise be measured reliably;
at cost less impairment for all other investments.

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 Statement of comprehensive income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be 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 enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.

 
2.9

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.

Page 16

 
MEKZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.10

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 the Statement of comprehensive income 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 the Statement of comprehensive income within 'other operating income'.

 
2.11

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.12

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 the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

Page 17

 
MEKZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.13

Taxation

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 reporting 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 reporting 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 reporting date.

 
2.14

Interest income

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

Page 18

 
MEKZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
In preparing these financial statements, the directors have had to make the following judgments in applying the above accounting policies that have had the most significant effect on the amounts recognised in the financial statements.
1. Determine whether there are indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the assets.
2. Determine whether trade debtors are recoverable. Factors taken into consideration include credit insurance and expected recovery.
Other key sources of estimation uncertainty:
1. Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on number of factors. In re-assessing the asset lives, factors such as technological innovation, product life cycle and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of asset and projected disposal values.


4.


Turnover

98.03% (2023 - 98.5%) of turnover is attributable to the principal activity of exporting.

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
184,276
148,669

Rest of the world
9,213,020
9,788,973

9,397,296
9,937,642



5.


Operating profit

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

2024
2023
£
£

Exchange differences
62,383
184,422

Other operating lease rentals
29,727
27,214

Depreciation
16,268
9,639

Page 19

 
MEKZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

6.


Auditors' remuneration

2024
2023
£
£



Fees payable to the Company's auditors for the audit of the Company's annual financial statements
13,829
12,100

7.


Employees

Staff costs, including director's remuneration, were as follows:


2024
2023
£
£



Wages and salaries
276,089
361,426

Social security costs
26,113
22,882

Cost of defined contribution scheme
28,720
30,285

330,922
414,593

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


2024
2023
£
£



Sales and administration
6
6


8.


Director's remuneration

2024
2023
£
£

Director's emoluments
87,957
180,658

Company contributions to defined contribution pension schemes
7,636
37,540

95,593
218,198


Page 20

 
MEKZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

9.


Interest receivable

2024
2023
£
£


Other interest receivable
48,001
-

48,001
-


10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
47,388
29,206

Adjustments in respect of previous periods
(42)
-

Total current tax
47,346
29,206

Taxation on profit on ordinary activities
 
47,346
 
29,206
Page 21

 
MEKZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
206,345
124,213


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
51,586
23,600

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
28
855

Capital allowances for year in excess of depreciation
(3,610)
1,807

Short term timing difference leading to an increase/(decrease) in taxation
391
812

Adjustments to tax charge in respect of prior periods
(42)
-

Changes in tax rate leading to an increase in the tax charge
(1,007)
2,132

Total tax charge for the year
47,346
29,206


Factors that may affect future tax charges

There are other significant factors that may materially affect future tax charges.


11.


Dividends

2024
2023
£
£


Dividends paid on equity capital
1,000
33,500

1,000
33,500

The directors had an interest in dividends declared during the year of £1,000 (2023 - £33,500).

Page 22

 
MEKZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

12.


Tangible fixed assets





Freehold property
Fixtures and fittings
Total

£
£
£



Cost


At 1 July 2023
338,174
122,570
460,744


Additions
-
34,689
34,689


Disposals
-
(590)
(590)



At 30 June 2024

338,174
156,669
494,843



Depreciation


At 1 July 2023
50,347
119,446
169,793


Charge for the year on owned assets
6,773
9,495
16,268


Disposals
-
(590)
(590)



At 30 June 2024

57,120
128,351
185,471



Net book value



At 30 June 2024
281,054
28,318
309,372



At 30 June 2023
287,827
3,124
290,951


13.


Stocks

2024
2023
£
£

Raw materials and consumables
455,741
106,750

455,741
106,750


The difference between purchase price or production cost of stocks and their replacement cost is not material.

Page 23

 
MEKZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

14.


Debtors

2024
2023
£
£


Trade debtors
1,635,222
3,767,270

Other debtors
23,044
30,598

Prepayments and accrued income
35,668
49,407

1,693,934
3,847,275



15.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
4,269,306
1,959,628

4,269,306
1,959,628



16.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
1,129,255
756,284

Corporation tax
47,363
29,248

Other taxation and social security
6,382
7,548

Other creditors
3,060
5,255

Accruals and deferred income
45,836
67,811

1,231,896
866,146


Page 24

 
MEKZ LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

17.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



199,998 'A' Ordinary shares of £1 each
199,998
199,998
1 'B' Ordinary share of £1
1
1
1 'C' Ordinary share of £1
1
1

200,000

200,000


The declaration of a dividend in respect of one class of share shall not compel a dividend at the same rate to be declared in respect of any other class of share.
The 'A', 'B' and 'C' Ordinary shares rank pari passu in all other respects.



18.


Reserves

Profit and loss account

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


19.


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 £28,720 (2023 - £30,285). Contributions totaling £2,060 (2023 - £4,275) were payable to the fund at the balance sheet date.


20.


Related party transactions



Included within other creditors is an amount owed to a director amounting to £1,000 (2023 - £2,000).
 
Key management remuneration is the same as disclosed for directors. 


21.


Controlling party

There is no parent company. The ultimate controlling party is Mr N. Kalmoni, a director, by virtue of his shareholding in the company.
 
Page 25