REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
TALLON INTERNATIONAL LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
TALLON INTERNATIONAL LIMITED |
TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 31 March 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Income Statement | 8 |
Other Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Notes to the Financial Statements | 12 |
TALLON INTERNATIONAL LIMITED |
COMPANY INFORMATION |
for the year ended 31 March 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Chartered Accountants and Statutory Auditor |
Highdown House |
11 Highdown Road |
Leamington Spa |
Warwickshire |
CV31 1XT |
BANKERS: |
PO Box 24 |
55 Corporation Street |
Coventry |
CV1 1QJ |
TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586) |
STRATEGIC REPORT |
for the year ended 31 March 2024 |
The directors present their strategic report for the year ended 31 March 2024. |
REVIEW OF BUSINESS |
The board agreed prior to the trading year that the same 3 strategic business priorities would remain: |
1. Relentlessly maintain >92% stock availability |
2. Maintain competitive selling prices |
3. Deliver Supply Chain excellence |
The global shipping industry continued to remain incredibly volatile. Container pricing was sporadic and schedule reliability continued to be challenging, making it difficult to budget, cost goods and accurately forecast delivery dates. The peak of this volatility was observed in FY Q4 with the crisis that developed in the Red Sea, causing an immediate unforeseen large increase in container costs and extended shipping times from the Far East. |
Managing volatility and the unexpected is now the new normal for all Importers and Tallon are well placed to thrive in such an environment. The maturing robust supply chain processes and a deliberate strategy to keep the business agile means we are able to react to any situation presented without delay or bureaucracy. |
Material costs have remained high globally with extensive work needed with our long established supplier partners to work vigorously on cost reduction exercises. |
Domestically all overheads continue to increase YoY. The business continues to carry out regular Value For Money studies ensuring that all services provided are of the best value. |
After the sudden and large impact to the value of GBP in 2022 sterling slowly began to strengthen against the USD throughout FY23/24. As an Importer who deals in large values of USD this continues to be an area we have to work hard at to avoid adverse exposure to FX losses. The hedging processes the business put in place 2 years ago are now beginning to mature. |
A strategic decision was taken to re-set our Christmas range and product offering with a focus on high volume, key lines priced competitively for our market. The Directors are confident that this will set the business up for success with this category in future years. |
Cautious Diary & Calendar purchase habits were noticeable in the market this trading year. Buyers opted for a little and often order pattern as opposed to larger volume commitments. This will need to be considered in our future approach due to this obvious change in behaviour. |
The space challenge Tallon has faced for many years reached its peak and break point during this trading year. This resulted in a tactical need to utilise 3PL services over and above what is usually required, which in turn led to some operational challenges during our summer months. |
To address what is probably the largest strategic challenge Tallon face with warehouse space, both Tallon and its parent Co took the decision to realise a unique opportunity that presented itself by purchasing 2 additional commercial properties on the same business park that Tallon HQ is located. After a lengthy process the transaction completed at the end of March 24. These buildings will now provide the necessary additional warehouse space needed to no longer have to utilise the services of a 3PL, and mean all of our warehouse operations are in-house. It will also allow the HQ staff members to relocate to a modern office environment, along with the creation of a brand new showroom putting our customers at the heart of a new Tallon HQ. |
Customer support and loyalty for Tallon remained strong throughout the whole year, with a recognition that we provide benchmark OTIF service levels and consistent profit opportunities to our vast customer base. New and exciting National customer contracts secured during the previous year were successfully delivered on. |
All of this culminated in us reporting an increase in turnover to £18,317,250 (2023 - £17,765,250). Pleasingly gross profit margin has slightly improved to 31.7% (2022 - 31.4%) despite all the inflationary pressures. Net profit of £694,362 (2023 - £626,256) was achieved enabling a dividend of £500,000 to be paid to assist the parent Company to invest in the additional warehouse space. Consequently net assets have increased only slightly to £6,465,757 (2023 - £6,452,783). |
TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586) |
STRATEGIC REPORT |
for the year ended 31 March 2024 |
Given the ongoing and volatile headwinds experienced during this reporting year it is testament to the customer loyalty Tallon have worked hard to secure that our revenues increased year on year. The Directors are confident that by continuing with a relentless focus on service levels customer loyalty will remain and improved gross profit margins will be possible moving forward. |
PRINCIPAL RISKS AND UNCERTAINTIES |
After briefly returning to pre pandemic levels the global supply chain infrastructure is again in turmoil. Container rates have increased rapidly and show signs of increasing further, and over an extended period of time. It will be again important to secure a sensible mixture of contract and FAK rates moving forward to mitigate exposure to sudden increases, whilst equally affording the ability to benefit from sudden drops. Blank sailing programs remain consistent, meaning a need to plan our supply chains even more closely to avoid product arriving late. This is now a well-practised and mature process in place within the business. |
The Warehouse space constraint is now resolved by way of the capital investment made by the group. The business must now leverage this opportunity to further increase already industry leading service levels. |
Exposure to exchange rate fluctuations continues to be a threat with GBP at further risk to due key international governmental elections taking place during the next FY. Continuous maturing of our hedging strategy will be paramount to allow us to price our selling costs at competitive levels and risk manage accordingly. |
Domestically all overheads have increased and it is expected that they will remain high. Further UK minimum wage increases are also in place for the start of the next reporting year. |
The ongoing cost of living crisis narrative remains an ever worrying undertone to the UK economy. The high street and retail sector are continually impacted with large well-known brands at risk of administration. Tallon are well placed to continue with this success due to the value product offerings and a wide range of NPI planned throughout the year to keep our ranges fresh and relevant. |
Despite the economic outlook the Directors are confident that the business resilience again demonstrated through 23/24, and the evolving strategic roadmap now in place will serve to protect the business, employees and customers safety. Customer loyalty will continue to be nurtured by delivering all products on time and in full at competitive pricing levels. Coupled with the long standing and strong relationships we have with our trading partners the company will continue to grow and prosper. |
ON BEHALF OF THE BOARD: |
TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586) |
REPORT OF THE DIRECTORS |
for the year ended 31 March 2024 |
The directors present their report with the financial statements of the company for the year ended 31 March 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the wholesaling of stationery and ancillary goods. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 March 2024 will be £ |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TALLON INTERNATIONAL LIMITED |
Opinion |
We have audited the financial statements of Tallon International Limited (the 'company') for the year ended 31 March 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
_ |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 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. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TALLON INTERNATIONAL LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
The audit process includes an assessment of the entity's risk environment, through enquiry of and discussion with management, including an assessment of any key laws and regulations with which the company must comply in the ordinary course of its business. |
Additionally, the overall risks of irregular transactions occurring are assessed following our observations and confirmation of the design and implementation of management's controls. Whilst we are mindful of these risks, our audit focus is geared towards the risk of material misstatement in the financial statements as a whole. |
As such, our procedures cannot guarantee that all transactions have been fully compliant with all relevant laws and regulations, including those regulations relating to fraud, as our procedures are not designed to detect all instances of non-compliance. By definition, the risk of our detection of non-compliance is greater where compliance with a law or regulation is removed from the events and transactions reflected in the financial statements. The risk is also greater regarding irregularities 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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
TALLON INTERNATIONAL LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants and Statutory Auditor |
Highdown House |
11 Highdown Road |
Leamington Spa |
Warwickshire |
CV31 1XT |
TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586) |
INCOME STATEMENT |
for the year ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
5,092,293 | 4,923,834 |
711,880 | 654,417 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
737,564 | 666,372 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586) |
OTHER COMPREHENSIVE INCOME |
for the year ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586) |
BALANCE SHEET |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586) |
STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 March 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2024 |
TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586) |
NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 31 March 2024 |
1. | STATUTORY INFORMATION |
Tallon International Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The principal accounting policies adopted in the preparation of the financial statements are set out below. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows. |
Preparation of consolidated financial statements |
The financial statements contain information about Tallon International Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Zintello Merchants Limited, C/O Fisher & Partners, Princes Drive Estate, Coventry Road, Kenilworth, Warwickshire, CV8 2FD. |
Critical accounting judgements and key sources of estimation uncertainty |
The significant estimates and assumptions included within these financial statements are set out below: |
Accounting estimates: |
i) Stock provisioning |
When calculating the stock provision management considers the potential resale ability of stock items, at or above cost, when determining the associated provision required. |
Accounting judgements: |
ii) Stock provisioning |
The business model is to buy goods in bulk quantities and sell it to distributors in smaller quantities. The key judgements in the financial statements are: |
a) whether to make a provision or not for stock, given that some goods such as calendars and diaries are time appropriate; and |
b) the level of such a provision, given any potential sale incentives offered to customers for old goods. |
Stock provisions have been made in these financial statements. The amounts and effect are disclosed in the notes below. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable net of VAT, discounts and rebates. Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on despatch of the goods. |
TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Improvements to properties | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Stocks |
Stock is stated at the lower of cost and net realisable value. Cost is based on the first in, first out principle and comprises the cost of goods and any overheads that have been incurred in bringing the stock to their present location and condition. Net realisable value represents the estimated selling price less expected marketing, selling and distribution costs. A provision is made, where necessary, for obsolete and slow-moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at a standard rate set on an annual basis and considered to be reflective of market conditions. Exchange differences are taken into account in arriving at the operating result. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Product development expenditure |
Product development expenditure is charged to the profit and loss account as the expenditure is incurred. The company is continually developing its products by upgrading its existing products, extending its range of current products and creating new products. |
TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Operating leases |
Rentals paid under operating leases are charged to the profit and loss account over the life of the lease. |
Financial instruments |
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement. |
Open foreign currency contracts are revalued at the period end with the surplus and deficits being recognised in the profit and loss account. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom |
Europe |
Rest of world | 422,861 | 324,543 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Total staff |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Operating leases - plant and machinery |
Operating leases - land and buildings |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Zintello Merchants Limited |
loan interest |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
UK corporation tax has been charged at 25% (2023 - 19%). |
TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Small variances | - | (2,153 | ) |
Movement on temporary timing differences | (523 | ) | 49,770 |
Total tax charge | 181,388 | 135,434 |
From April 2023, there was an increase in the main rate of corporation tax to 25%, which is expected to remain unchanged for the foreseeable future. |
8. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Interim |
9. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
to | Plant and | and | Motor |
properties | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
10. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: 1st Floor, Reuben House, Reuben Street, Dublin 1, D08 Y2Y3 |
Nature of business: |
% |
Class of shares: | holding |
11. | STOCKS |
2024 | 2023 |
£ | £ |
Stocks |
At the year end there were provisions for impairment against stock of £534,154 (2023: £571,659). |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Prepayments |
An impairment loss of £45,433 (2023 - £95,963) was recognised against trade debtors during the year. |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 341,884 | 411,514 |
Amounts owed to parent company | 81,164 | 350,000 |
Amounts owed to subsidiary | 870 | 870 |
Accrued expenses |
TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
14. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
15. | SECURED DEBTS |
The bank holds a debenture including a Fixed charge over all present freehold and leasehold property; First Fixed Charge over book and other debts, chattels, goodwill and uncalled share capital, both present and future; and First Floating charge over all assets and undertakings both present and future dated 1 August 2001 for Zintello Merchants Limited and its subsidiary undertakings. |
Since 25 April 2005 the bank lending has also been secured by a fixed charge over the purchased debts and a floating charge over all the remaining assets of the company. |
16. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 54,642 | 59,022 |
Other timing differences | (1,607 | ) | (1,084 | ) |
53,035 | 57,938 |
Deferred |
tax |
£ |
Balance at 1 April 2023 |
Credit to Income Statement during year | ( |
) |
Balance at 31 March 2024 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 5,000 | 5,000 |
TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
18. | RESERVES |
Retained |
earnings |
£ |
At 1 April 2023 |
Profit for the year |
Dividends | ( |
) |
At 31 March 2024 |
Retained earnings |
Retained earnings represent cumulative retained profits and losses from incorporation. |
19. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme in respect of the directors and staff. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the company and amounted to £119,884 (2023 - £88,556). Included within creditors is an amount due to scheme providers totalling £81,428 (2023 - £58,336). |
20. | ULTIMATE PARENT COMPANY |
The ultimate parent company is Zintello Merchants Limited, which is incorporated in England and Wales. Consolidated financial statements are drawn up for the group and are made available to the public via enquiry at the registered office. |
21. | CONTINGENT LIABILITIES |
The directors of the company are not aware of any other contingent liability apart from those outlined as part of the bank security arrangements explained further in the notes to the financial statements. |
22. | OTHER FINANCIAL COMMITMENTS |
As at 31 March 2024 the company had the following financial commitments under forward exchange contracts:- |
Contract detail | Commitment | Rate |
$ | $/ £1 |
Contracts dated November 2023, maturing April to August 2024 | 3,500,000 | 1.2542 to 1.2701 |
Contracts dated December 2023, maturing April to August 2024 | 750,000 | 1.2701 to 1.272 |
Contracts dated March 2024, maturing September to October 2024 | 1,000,000 | 1.2823 to 1.282 |
The commitments above are in the ordinary course of the company's business and form part of the directors' risk management strategy, whose aim is to reduce the company's exposure to adverse exchange rate movements on its purchasing, a significant proportion of which is denominated in US dollars. |
23. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
The directors are considered to be key management. Their remuneration is noted above. |
TALLON INTERNATIONAL LIMITED (REGISTERED NUMBER: 01153586) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2024 |
24. | CONTROLLING INTERESTS |
The directors are considered to be the ultimate controlling parties by virtue of their ability to act in concert in respect of the financial and operating policies of the company. |