Company registration number 05909550 (England and Wales)
MAZUMA MOBILE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
MAZUMA MOBILE LIMITED
COMPANY INFORMATION
Directors
Ms S Fort
Mr C R Smith
Mr T C Hill
(Appointed 19 June 2024)
Company number
05909550
Registered office
Suite 5A & Suite 5B, Second Floor
Office Building 11, 2 Mannin Way
Lancaster Business Park, Caton Road
Lancaster
LA1 3SU
Auditor
MHA
Richard House
9 Winckley Square
Preston
PR1 3HP
MAZUMA MOBILE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Notes to the financial statements
10 - 22
MAZUMA MOBILE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Review of the business
The directors are delighted to report that the company has had another outstanding year achieving an EBITDA of £4.181m, an increase of 38% on the prior year.
This year Mazuma’s focus has been on how to improve the number of devices that can be reintroduced into the secondary market. Continuing research and development together with significant investment in expanding our value-add department has resulted in a quadrupling of the number of devices that can be repaired or improved. Where devices cannot be repaired or improved, we harvest parts, maximizing the reuse potential of all devices and ensuring 0% landfill.
Mazuma has continued to forge robust relationships with fellow partners and businesses. This has proved successful, the increased number of partnerships has allowed us to further support the circular economy, expand the second user market and reduce the environmental impact of used electronic devices.
Mazuma’s customers are its focus. The investment in processes has allowed us to scale with demand maintaining our same day payment commitment.
Mazuma is also unique with its large customer experience team, we have dedicated staff to answer calls directly alongside emails and chat to make our customers’ experience as seamless as possible.
Mazuma focuses on providing a good working environment and culture for its staff.
Everyone’s hard work has been recognized with Mazuma being honored with two awards at the Mobile News awards, the industry’s flagship event.
Mazuma has strong links with the local community, continuing to support and invest in local sports clubs, athletes, and various charities.
Principal risks and uncertainties
In our experience a successful company needs to be able to react quickly to the opportunities and challenges it faces every day. The structure of the company lends itself to this dynamic approach. The leadership team is very succinct, with each person boasting years of experience and knowledge within the industry.
Trading within the second-hand electronic equipment sector there is always an element of uncertainty and volatility in the pricing. The group has become very adept at dealing with this and reacting to market changes quickly and effectively.
Key performance indicators
The group overall has several key performance indicators (KPIs) which are used to monitor the business on a monthly basis. The main KPIs are as follows:
• EBITDA - £4,181,353 (2023: £3,032,567)
• Cash flow - increased by £682,795 (2023: increased by £797,418)
• Gross margin - 24% (2023: 23%)
• Customer visits to the website, conversion rates and retention rates
• Processing throughput
MAZUMA MOBILE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Other information and explanations
Financial instruments
The company holds or issues financial instruments in order to achieve three main objectives, being:
to finance its operations;
to manage its exposure to interest and currency risks arising from its operations and from its sources of finance, and
for trading purposes.
In addition, the company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from the group's operations.
Transactions in financial instruments result in the company assuming or transferring to another party one or more of the financial risks described below.
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meeting the operating needs of the business.
Currency risk
The company's principal currency exposures arise from trading with overseas companies. The company seeks to invoice and be invoiced in its principal trading currency wherever possible so as to minimise its exposure to foreign currency movements.
Credit risk
Investments of cash surpluses and borrowing are made through banks and companies which must fulfil credit rating criteria approval. All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are reviewed on a regular basis and provision is made for doubtful debts whenever considered necessary.
Mr C R Smith
Director
19 November 2024
MAZUMA MOBILE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of reuse, repair and renewal of mobile technology.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £946,070. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Ms S Fort
Mr C R Smith
Ms S Gray
(Resigned 31 May 2024)
Mr T C Hill
(Appointed 19 June 2024)
Auditor
Following the merger of MHA Moore & Smalley with MHA, the company's independent auditor has now become MHA.
The auditor, MHA, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial instruments and future developments.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr C R Smith
Director
19 November 2024
MAZUMA MOBILE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
The directors are responsible for preparing the annual 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 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.
MAZUMA MOBILE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MAZUMA MOBILE LIMITED
- 5 -
Opinion
We have audited the financial statements of Mazuma Mobile Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including 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 March 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.
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 Auditor's 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.
MAZUMA MOBILE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MAZUMA MOBILE LIMITED (CONTINUED)
- 6 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
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.
Matters on which we are required to report by exception
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 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, 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.
Auditor's 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 auditor's 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:
Enquiries with management, about any known or suspected instances of non-compliance with laws and regulations and fraud;
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness;
Reviewing legal and professional expenditure to identify any evidence of ongoing litigation or enquiries;
Reviewing the systems for recording revenue and testing a sample of transactions throughout the year, to ensure they are correct to be recognised in the accounts; and
Auditing the risk of fraud and management override of revenue by testing a sample of transactions from the nominal ledger to gain assurance over the occurrence of revenue.
MAZUMA MOBILE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MAZUMA MOBILE LIMITED (CONTINUED)
- 7 -
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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 an auditor's 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 Williams BA(Hons) FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Preston, United Kingdom
20 November 2024
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
MAZUMA MOBILE LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
2
38,848,312
34,561,470
Cost of sales
(29,445,267)
(26,670,092)
Gross profit
9,403,045
7,891,378
Administrative expenses
(5,556,741)
(4,984,565)
Other operating income
40,598
Operating profit
3
3,886,902
2,906,813
Interest receivable and similar income
5
677
Interest payable and similar expenses
6
(30,737)
(49,005)
Profit before taxation
3,856,842
2,857,808
Tax on profit
7
(989,428)
(546,153)
Profit for the financial year
2,867,414
2,311,655
Retained earnings brought forward
1,889,514
227,859
Dividends
8
(946,070)
(650,000)
Retained earnings carried forward
3,810,858
1,889,514
The profit and loss account has been prepared on the basis that all operations are continuing operations.
MAZUMA MOBILE LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
9
233,032
241,314
Tangible assets
10
1,812,816
1,143,977
2,045,848
1,385,291
Current assets
Stocks
11
1,950,825
1,159,791
Debtors
12
1,943,231
2,213,163
Cash at bank and in hand
2,167,008
1,484,213
6,061,064
4,857,167
Creditors: amounts falling due within one year
13
(1,964,228)
(2,589,649)
Net current assets
4,096,836
2,267,518
Total assets less current liabilities
6,142,684
3,652,809
Creditors: amounts falling due after more than one year
14
(2,030,189)
(1,763,285)
Provisions for liabilities
Deferred tax liability
16
301,627
(301,627)
-
Net assets
3,810,868
1,889,524
Capital and reserves
Called up share capital
18
10
10
Profit and loss reserves
3,810,858
1,889,514
Total equity
3,810,868
1,889,524
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 19 November 2024 and are signed on its behalf by:
Mr C R Smith
Director
Company registration number 05909550 (England and Wales)
MAZUMA MOBILE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
1
Accounting policies
Company information
Mazuma Mobile Limited is a private company limited by shares incorporated in England and Wales. The registered office is Suite 5A & Suite 5B, Second Floor, Office Building 11, 2 Mannin Way, Lancaster Business Park, Caton Road, Lancaster, LA1 3SU.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Lancaster Group Holdings Limited (formerly EcoRenew Holdings (UK) Limited). These consolidated financial statements are available from Companies House, Crown Way, Cardiff, CF14 3UZ.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
MAZUMA MOBILE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 11 -
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Development costs
20% straight line
Trademarks & domain names
20% straight line
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
Over lease term
Fixtures and fittings
20 - 25% straight line
Computers
25 - 33% straight line
Motor vehicles
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
MAZUMA MOBILE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
MAZUMA MOBILE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
MAZUMA MOBILE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities
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 finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
MAZUMA MOBILE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Trade sales
28,813,834
17,819,808
Repairs
220
134
E-channel and online sales
10,034,258
16,741,528
38,848,312
34,561,470
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
38,148,625
33,795,242
Europe
34,150
-
Rest of the world
665,537
766,228
38,848,312
34,561,470
2024
2023
£
£
Other revenue
Interest income
677
-
3
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(1,197)
1,159
Fees payable to the company's auditor for the audit of the company's financial statements
8,400
8,000
Depreciation of owned tangible fixed assets
227,859
69,075
Profit on disposal of tangible fixed assets
(7,443)
-
Amortisation of intangible assets
74,035
56,679
Operating lease charges
44,535
35,886
MAZUMA MOBILE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Admin
9
10
Sales
3
1
Operations
2
1
Warehouse
51
45
Total
65
57
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,624,296
1,303,398
Social security costs
137,644
89,354
Pension costs
31,131
22,031
1,793,071
1,414,783
5
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
677
6
Interest payable and similar expenses
2024
2023
£
£
Other interest on financial liabilities
30,737
49,005
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
206,967
380,000
Group tax relief
20,680
74,163
Total current tax
227,647
454,163
MAZUMA MOBILE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
7
Taxation
2024
2023
£
£
(Continued)
- 17 -
Deferred tax
Origination and reversal of timing differences
761,781
157,115
Changes in tax rates
49,616
Adjustment in respect of prior periods
(114,741)
Total deferred tax
761,781
91,990
Total tax charge
989,428
546,153
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
3,856,842
2,857,808
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
964,211
542,984
Tax effect of expenses that are not deductible in determining taxable profit
9,088
17,404
Effect of change in corporation tax rate
49,615
Research and development tax credit
(14,137)
(10,479)
Deferred tax adjustments in respect of prior years
(40,578)
Super deduction
(12,793)
Depreciation on assets qualifying for SBAs
30,266
Taxation charge for the year
989,428
546,153
An increase in the UK corporation tax rate to 25% from 1 April 2023 was substantively enacted in the UK on 24 May 2021. Deferred tax has been recognised at the rates in which the temporary differences are expected to materially reverse which equates to 25%.
8
Dividends
2024
2023
£
£
Final paid
946,070
650,000
MAZUMA MOBILE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
9
Intangible fixed assets
Development costs
Trademarks & domain names
Total
£
£
£
Cost
At 1 April 2023
203,262
155,714
358,976
Additions - internally developed
65,753
65,753
At 31 March 2024
269,015
155,714
424,729
Amortisation and impairment
At 1 April 2023
71,443
46,219
117,662
Amortisation charged for the year
48,655
25,380
74,035
At 31 March 2024
120,098
71,599
191,697
Carrying amount
At 31 March 2024
148,917
84,115
233,032
At 31 March 2023
131,819
109,495
241,314
10
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
1,137,214
92,484
62,255
16,139
1,308,092
Additions
779,467
51,982
31,856
47,925
911,230
Disposals
(80)
(29,074)
(29,154)
At 31 March 2024
1,916,681
144,466
94,031
34,990
2,190,168
Depreciation and impairment
At 1 April 2023
36,673
64,753
51,544
11,145
164,115
Depreciation charged in the year
189,178
15,942
15,095
7,644
227,859
Eliminated in respect of disposals
(20)
(14,602)
(14,622)
At 31 March 2024
225,851
80,695
66,619
4,187
377,352
Carrying amount
At 31 March 2024
1,690,830
63,771
27,412
30,803
1,812,816
At 31 March 2023
1,100,541
27,731
10,711
4,994
1,143,977
MAZUMA MOBILE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
11
Stocks
2024
2023
£
£
Finished goods and goods for resale
1,950,825
1,159,791
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,707,305
1,519,676
Other debtors
23,009
22,901
Prepayments and accrued income
212,917
210,432
1,943,231
1,753,009
Deferred tax asset (note 16)
460,154
1,943,231
2,213,163
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Other borrowings
15
1,096,001
Trade creditors
149,868
199,710
Amounts owed to group undertakings
553,778
121,835
Corporation tax
206,291
380,000
Other taxation and social security
457,281
289,004
Other creditors
116,173
117,353
Accruals and deferred income
480,837
385,746
1,964,228
2,589,649
Other borrowings includes £nil (2023: £1,096,001) due to EcoAsia Technologies Holdings Limited, the company's ultimate parent undertaking until 27 November 2023, when it became an entity under common control.
14
Creditors: amounts falling due after more than one year
2024
2023
£
£
Amounts owed to group undertakings
2,030,189
1,763,285
MAZUMA MOBILE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
15
Loans and overdrafts
2024
2023
£
£
Loans from group undertakings
1,096,001
Payable within one year
1,096,001
Other borrowings includes £nil (2023: £1,096,001) due to EcoAsia Technologies Holdings Limited, the company's ultimate parent undertaking until 27 November 2023, when it became an entity under common control.
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
300,289
-
-
(156,754)
Tax losses
(2,429)
-
-
616,406
SBAs
4,447
-
-
-
Short-term timing differences
(680)
-
-
502
301,627
-
-
460,154
2024
Movements in the year:
£
Asset at 1 April 2023
(460,154)
Charge to profit or loss
761,781
Liability at 31 March 2024
301,627
As the company has not finalised its capital expenditure plans for the next financial year, it is not possible to clarify the unwinding of the deferred tax asset in relation to the accelerated capital allowances over the next 12 months.
MAZUMA MOBILE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
31,131
22,031
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10
10
10
10
19
Financial commitments, guarantees and contingent liabilities
The company is registered for VAT under group registration provisions and is therefore jointly and severally liable for the tax owed by the other group companies registered with it. At 31 March 2024 value added tax owed by the other companies registered with it amounted to £194,048 (2023: £80,185).
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
44,535
44,535
Between two and five years
89,070
133,605
133,605
178,140
21
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
-
762,853
MAZUMA MOBILE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
22
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Shared services (expense)
Shared services (expense)
2024
2023
£
£
Entities with control, joint control or significant influence over the company
17,201
Interest charges
Van purchase
2024
2023
2024
2023
£
£
£
£
Entities with control, joint control or significant influence over the company
30,737
49,005
-
-
Key management personnel
-
-
11,685
-
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
1,096,001
Other information
The company has taken advantage of the exemption permitted under Section 33 "Related Party Disclosures" paragraph 33.1A of FRS102 from disclosing transactions with fellow wholly owned group companies.
23
Ultimate controlling party
At the start of the year the ultimate parent company was EcoAsia Technologies Holdings Limited, which is incorporated in the British Virgin Islands.
On 27 November 2023 the shares in the group were transferred into private ownership. At the year end date there was no overall controlling party.
The largest and smallest group for which consolidated financial statements are prepared, which include the results of this company, is that headed by Lancaster Group Holdings Limited (formerly EcoRenew Holdings (UK) Limited), whose registered office is Suite 5A & Suite 5B, Second Floor, Office Building 11, 2 Mannin Way, Lancaster Business Park, Caton Road, Lancaster, LA1 3SU. Copies of the consolidated financial statements are available from Companies House, Crown Way, Cardiff, CF14 3UZ.
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