Registration number:
Majid Al Futtaim Sourcing UK Limited
for the Year Ended 31 December 2023
Majid Al Futtaim Sourcing UK Limited
Contents
Company Information |
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Balance Sheet |
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Notes to the Financial Statements |
Majid Al Futtaim Sourcing UK Limited
Company Information
Directors |
Mr Jerzy Szapiro Duque Mr Jean-Luc Claude Graziato |
Company secretary |
Vistra Company Secretaries Limited |
Registered office |
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Auditors |
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Majid Al Futtaim Sourcing UK Limited
(Registration number: 11496790)
Balance Sheet as at 31 December 2023
Note |
2023 |
(As restated) |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Net liabilities |
( |
( |
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Capital and reserves |
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Called up share capital |
100 |
100 |
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Retained earnings |
(3,210,506) |
(2,916,950) |
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Shareholders' deficit |
(3,210,406) |
(2,916,850) |
These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.
The financial statements were approved and authorised for issue by the
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Majid Al Futtaim Sourcing UK Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
United Kingdom
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared on a going concern basis, using the historical cost convention.
The functional and presentational currency is Pound Sterling (£), being the currency of the primary economic environment in which the company operates in. Monetary amounts in these financial statements are rounded to the nearest pound.
Summary of disclosure exemptions
In preparing these financial statements, the company has taken advantage of the exemption from disclosing certain financial instrument disclosures, as permitted by FRS 102 paragraph 1.12 (b), on the basis that it is a qualifying entity and its ultimate parent company, Majid Al Futtaim Holding LLC, includes these in its own consolidated financial statements.
Majid Al Futtaim Sourcing UK Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023 (continued)
2 |
Accounting policies (continued) |
Going concern
The directors have prepared these financial statements on a going concern basis as the company does not have any external debt or material financing arrangements in place and the parent company, Majid Al Futtaim Hypermarkets LLC, has agreed to help the company, as required, meet its liabilities as they fall due. Further, where required, Majid Al Futtaim Hypermarkets LLC also provides guarantees to the company's suppliers for liabilities due to them in relation to the supply of goods.
Majid Al Futtaim Hypermarkets LLC has indicated its intention to continue to make available such funds and guarantees as needed by the company, to help meet its liabilities as and when they fall due for a period of at least 12 months from the date of approval of the financial statements.
Based on this, the directors consider the use of the going concern basis to be appropriate in the preparation of the company financial statements in light of the current financial position of the company and their related forecast cash flows.
Audit report
2024-102-UK
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
Revenue from the sale of goods is recognised when all the following conditions are satisfied:
• the company has transferred to the buyer the significant risks and rewards of ownership of the goods;
• 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 economic benefits associated with the transaction will flow to the company; and
• the costs incurred or to be incurred in respect of the transition can be measured reliably.
Specifically, revenue from the sale of goods is recognised when the goods are delivered and legal title has
passed.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Majid Al Futtaim Sourcing UK Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023 (continued)
2 |
Accounting policies (continued) |
Tax
Taxation expense for the period comprises of current tax recognised in the reporting period. Tax is recognised in the profit and loss account and the company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Current taxation liabilities are not discounted.
In determining the current tax liability, the company grosses up their revenue in line with the group's transfer pricing policy to determine the profit subject to tax. This effect is only considered in the company's tax return.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Computer equipment |
Straight line over 4 years |
Intangible assets
Costs associated with the purchase of software programmes are recognised as intangible assets and are amortised on a straight line basis over their estimated useful economic lives. The carrying value of intangible assets is reviewed for impairment at the end of each financial year and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Software costs |
Straight line over 4 years |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Majid Al Futtaim Sourcing UK Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023 (continued)
2 |
Accounting policies (continued) |
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Employee benefits
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.
Majid Al Futtaim Sourcing UK Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023 (continued)
2 |
Accounting policies (continued) |
Financial instruments
Classification
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.
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.
Recognition and measurement
Debt instruments that are payable or receivable within one year, typically trade creditors or debtors, are measured, initially 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 of financed at a rate of interest that is not a market rate or in case of an out-right short term loan not at a market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Majid Al Futtaim Sourcing UK Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023 (continued)
2 |
Accounting policies (continued) |
Impairment
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 if recognised in the Profit and loss account.
For financial assets measured as 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 discounted rate for measuring any impairment loss is the current effective interest rate determined under the contract. Financial assets and liabilities are offset and the net amount reported in the Balance sheet 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.
Judgments in applying accounting policies and key sources of estimation uncertainty
The preparation of financial statements in conformity with FRS102 requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, turnover, costs, expenses and other comprehensive income that are reported and disclosed in the financial statements and accompanying notes. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Significant estimates and assumptions are used as follows:
Accruals
Accruals represent liabilities to pay for goods or services that have been received or supplied but have not been paid, invoiced, or formally agreed with the supplier. These are estimated based on historical experience, contractual terms, and other evidence, such as communication with suppliers and service providers. The actual amounts may differ from the estimated amounts depending on the final terms agreed upon or any disputes that may arise. Management reviews the accruals on a periodic basis to ensure they are reflective of the best estimate of the amounts that will be paid based on the most recent information available.
Prior year restatement |
Retained earnings have been restated to reflect adjustments made to prior year profit or loss. These adjustments were made to correct the timing of certain transactions and ensure alignment with the company's accounting policies. The impact of these adjustments is detailed below.
Retained earnings brought forward as previously stated |
1,655,207 |
Impact of prior year adjustments |
130,402 |
Restated retained earnings brought forward |
1,785,609 |
Creditors due within one year as previously stated |
(3,208,921) |
Impact of prior year adjustments |
(130,402) |
Restated creditors due within one year |
(3,339,323) |
Majid Al Futtaim Sourcing UK Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023 (continued)
Staff numbers |
The average monthly number of persons employed by the company (including directors) during the year, was
Intangible assets |
Intangible assets under development |
Software costs |
Total |
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Cost |
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At 1 January 2023 |
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Additions acquired separately |
- |
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Transfers between classes |
( |
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- |
Disposals |
( |
- |
( |
At 31 December 2023 |
- |
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Amortisation |
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At 1 January 2023 |
- |
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Amortisation charge |
- |
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At 31 December 2023 |
- |
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Carrying amount |
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At 31 December 2023 |
- |
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At 31 December 2022 |
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Majid Al Futtaim Sourcing UK Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023 (continued)
Tangible assets |
Computer equipment |
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Cost |
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At 1 January 2023 |
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At 31 December 2023 |
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Depreciation |
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At 1 January 2023 |
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Charge for the year |
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At 31 December 2023 |
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Carrying amount |
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At 31 December 2023 |
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At 31 December 2022 |
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Debtors |
Note |
2023 |
2022 |
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Amounts owed by group undertakings |
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Other debtors |
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Prepayments |
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- |
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Total current trade and other debtors |
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Majid Al Futtaim Sourcing UK Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023 (continued)
Creditors |
Creditors: amounts falling due within one year
Note |
2023 |
(As restated) |
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Due within one year |
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Trade creditors |
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Amounts owed to group undertakings |
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Taxation and social security |
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Other creditors |
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Accrued expenses |
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Corporation tax payable |
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Amounts owed to related parties are unsecured, repayable on demand and incur an interest expense of 3%.
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
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No. |
£ |
No. |
£ |
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100 |
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100 |
Related party transactions |
Included within creditors due within one year, under amounts owed to fellow group undertakings, are the following:
• Short term loan payable to Majid Al Futtaim Hypermarkets LLC - £2,866,443
• Amounts owed to Majid Al Futtaim Sourcing France - £43
• Amounts owed to Majid Al Futtaim Sourcing Limited - £181,874
• Amounts due from Majid Al Futtaim Hypermarkets LLC - £8,157
• Amounts due from Majid Al Futtaim Hypermarkets- Egypt - £3,630
Aside from the above, the company has taken advantage of the exemption available under FRS 102, Section 33 'Related Party Disclosures', and has not disclosed transactions entered into between two or more members of the group, as the company is a wholly owned subsidiary undertaking.
Majid Al Futtaim Sourcing UK Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023 (continued)
Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate parent is
The most senior parent entity producing publicly available financial statements is
A copy of the group financial statements are available on request from:
Majid Al Futtaim Holding LLC
Tower 1, 10th Floor,
City Centre Deira Complex
PO Box 91100,
Dubai, United Arab Emirates
There is no ultimate controlling person.