Company registration number 14575780 (England and Wales)
MOREHAM WOOD LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JANUARY 2024
MOREHAM WOOD LIMITED
COMPANY INFORMATION
Directors
Mr J T Bannister
(Appointed 22 June 2023)
Mr. A I Field
(Appointed 6 January 2023)
Mr. P A Isom
(Appointed 21 February 2023)
Company number
14575780
Registered office
Kinetic Business Centre
Theobald Street
Borehamwood
United Kingdom
WD6 4PJ
Auditor
Azets Audit Services
Athenia House
10-14 Andover Road
Winchester
Hampshire
United Kingdom
SO23 7BS
MOREHAM WOOD LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 19
MOREHAM WOOD LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 JANUARY 2024
- 1 -

The directors present the strategic report for the period ended 31 January 2024.

Review of the business

Moreham Wood Limited (MWL) is the legal entity trading as Oak Furniture Superstore (OFS). MWL is a fully owned subsidiary of Quercy Holdings Limited (QHL).

 

MWL was registered as a new company in January 2023. It acquired the trade and assets of Mark Harris Furniture Limited (MHF) in February 2023 and was subsequently purchased by Quercy Limited. Mark Harris had been placed into administration in early 2023 due to legacy contingent liabilities that became known to shareholders.

 

A new management team was brought in to rebuild MWL for a sustainable future, securing new bank and shareholder financing whilst protecting other key stakeholder relationships integral to the ongoing success of the Group.

 

OFS was founded based on the belief that beautiful, high quality and durable furniture can be supplied direct to the end consumer at an affordable price point, maximising market reach. This is achieved by operating as an ‘online first’ business, utilising a lean; outsourced operating model working only with the highest quality partners and providing the highest level of customer service.

 

Given the unavoidable business interruption experienced in the months following the administration process including lost sales time and a severely restricted supply chain, the Directors are satisfied that delivered sales of £18.3m in MWL’s first financial year was in line with expectations.

 

The operating loss of £5.8m was also in line with expectations although the Directors are confident that this is not a true reflection of the underlying business as reflected in the analysis below highlighting the significant value of exceptional costs incurred early in the year to January 2024. Cash and Cash equivalents of £0.72m at the year-end was in line with financial projections.

 

Further to this, MWL invested significantly through the year including spend on a re sourced product portfolio, building a high-quality organisational structure and streamlining internal processes and sales channels. The non-recurring element of this spend has not been added back in the analysis below given it is integral to the long-term strategy to create a high growth, sustainably profitable business.

 

 

 

                    £M

Turnover                18.3

Operating Loss                (5.8)

*Exceptional Costs            3.9

Adjusted Operating Loss            (1.9)

    

Cash and Cash Equivalents        0.72

    

*Exceptional Costs            £M

Administration and Legacy costs        2.8

Costs incurred on unrecognised sales    0.9

Unrealised FX loss            0.2

                    3.9

MOREHAM WOOD LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2024
- 2 -
Principal risks and uncertainties

The risks and uncertainties described below represent those which the Directors consider to be the most significant to delivering the business strategy. These are reviewed on a regular basis and mitigating actions put in place as required.

 

Supply Chain risk

Key product suppliers are based in the Far East, exposing the Company to supply chain delay risks that could impact the customer experience and ultimately the reputation of the business. To mitigate risk, the business works with multiple suppliers and a broad product base.

 

Product arrives fully insured into the UK by sea making profit margins sensitive to sea freight costs . These specific costs are managed using contracts with a range of shipping lines and utilising stock buffers to further manage any adverse fluctuations in cost.

 

Foreign Exchange

Product is purchased for resale and mostly sourced from the Far East in USD. With revenues received in GBP, fluctuations in the exchange rate can impact profit margins. To mitigate this risk, exchange rates are monitored frequently, and the business utilises forward currency exchange contracts aligned to the Company's treasury policy.

 

Liquidity Risk

The business is subject to liquidity risk. Lending facilities are in place to manage liquidity requirements and senior management review cash flow forecasts regularly with the Board to ensure the business can operate within its facilities.

 

Information Security and Data Protection

Risks include any data breach, cyber-attack or service interruption that could result in fines, business interruption and reputational damage. To mitigate risk, the business maintains a robust suite of Information Security and Data Protection policies complemented by regular staff training.

 

Health and Safety

The health and safety of all employees , customers and partners is of the upmost importance to the business. Any breaches could cause injury, financial loss and reputational damage. To mitigate risk, the business maintains a robust suite of Health and Safety policies complemented by regular staff training. Health and safety is overseen by a central compliance function and any issues must be reported to senior management for discussion at Board level.

 

 

On behalf of the board

Mr. P A Isom
Director
20 December 2024
MOREHAM WOOD LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 JANUARY 2024
- 3 -

The directors present their annual report and financial statements for the period to 31 January 2024.

Principal activities

The principal activity of the company is the import and sale of furniture direct to customers.

 

The business has continued to grow into the year ending January 2025. Additional financing has been secured to underpin this growth trajectory.

Results and dividends

The results for the period are set out on page 6.

No ordinary dividends were paid.

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

Mr J T Bannister
(Appointed 22 June 2023)
Mr. A I Field
(Appointed 6 January 2023)
Mr. P A Isom
(Appointed 21 February 2023)
Future developments

It is anticipated that consumer confidence and the macro-economic environment will remain challenging in the year ahead. However, the Directors are confident that a unique mix of high-quality furniture at an accessible price point, combined with excellent customer service will drive continued success in the future.

 

The business undertakes continued Research and Development activities targeted at the product offering, customer experience and internal efficiencies to support anticipated growth.

 

Statement of directors' responsibilities

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:

 

 

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.

MOREHAM WOOD LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2024
- 4 -
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.

On behalf of the board
Mr. P A Isom
Director
20 December 2024
MOREHAM WOOD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MOREHAM WOOD LIMITED
- 5 -
Opinion

We have audited the financial statements of Moreham Wood Limited (the 'company') for the period ended 31 January 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity 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:

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 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.

Other information

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.

Opinions on other matters prescribed by the Companies Act 2006

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

MOREHAM WOOD LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MOREHAM WOOD LIMITED
- 6 -
Matters on which we are required to report by exception

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

 

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

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.

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.

MOREHAM WOOD LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MOREHAM WOOD LIMITED
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 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.

Mr Richard Hutchinson
Senior Statutory Auditor
For and on behalf of Azets Audit Services
23 December 2024
Chartered Accountants
Statutory Auditor
Athenia House
10-14 Andover Road
Winchester
Hampshire
United Kingdom
SO23 7BS
MOREHAM WOOD LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 JANUARY 2024
- 8 -
Period
ended
31 January
2024
Notes
Turnover
2
18,268,566
Cost of sales
(12,097,727)
Gross profit
6,170,839
Distribution costs
(2,406,049)
Administrative expenses
(9,524,198)
Other operating income
7,363
Operating loss
3
(5,752,045)
Interest payable and similar expenses
6
(155,123)
Loss before taxation
(5,907,168)
Tax on loss
7
-
0
Loss for the financial period
(5,907,168)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

MOREHAM WOOD LIMITED
BALANCE SHEET
AS AT 31 JANUARY 2024
31 January 2024
- 9 -
2024
Notes
Fixed assets
Goodwill
8
352,530
Other intangible assets
8
602,620
Total intangible assets
955,150
Tangible assets
9
125,011
1,080,161
Current assets
Stocks
10
4,694,628
Debtors
11
499,944
Cash at bank and in hand
719,519
5,914,091
Creditors: amounts falling due within one year
12
(7,015,133)
Net current liabilities
(1,101,042)
Total assets less current liabilities
(20,881)
Creditors: amounts falling due after more than one year
13
(5,886,277)
Net liabilities
(5,907,158)
Capital and reserves
Called up share capital
17
10
Profit and loss reserves
(5,907,168)
Total equity
(5,907,158)
The financial statements were approved by the board of directors and authorised for issue on 20 December 2024 and are signed on its behalf by:
Mr. P A Isom
Director
Company Registration No. 14575780
MOREHAM WOOD LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 JANUARY 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
Balance at 6 January 2023
-
0
-
0
-
Period ended 31 January 2024:
Loss and total comprehensive income for the period
-
(5,907,168)
(5,907,168)
Issue of share capital
17
10
-
10
Balance at 31 January 2024
10
(5,907,168)
(5,907,158)
MOREHAM WOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JANUARY 2024
- 11 -
1
Accounting policies
Company information

Moreham Wood Limited is a private company limited by shares incorporated in England and Wales. The registered office is Kinetic Business Centre, Theobald Street, Borehamwood, United Kingdom, WD6 4PJ.

1.1
Reporting period

The financial statements are for the period from incorporation date 06 January 2023 to 31 January 2024.

1.2
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:

 

 

The financial statements of the company are consolidated in the financial statements of Quercy Holdings Limited. These consolidated financial statements are available from its registered office, St. Martin's Court, 10 Paternoster Row, London, England, EC4M 7EJ.

MOREHAM WOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 12 -
1.3
Going concern

In assessing whether the financial statements should be prepared on a going concern basis, the directors have considered the outlook of the company and in so doing have given consideration to the current and future operating results and cashflow requirements of the business. The directors continue to assess the company’s cashflow requirements and expect its current and future banking and other facilities to be sufficient to provide the company with the resources necessary.  true

 

Trading conditions have improved since the year end and cost saving and other measures put in place have improved the resilience and cash flow position of the company. This includes the renegotiation of terms of existing banking facilities and the extension of borrowings available from investors.

 

Therefore, the directors believe that based on budgeted future trading, the continued support of its bankers and support from its shareholders the company has adequate resources to meet its liabilities as they fall due and the ability to operate as a going concern for a period of at least 12 months from the date of approval of these financial statements.

 

In making this assessment the directors have relied on the letter of support provided by the directors of the parent company confirming no repayment of the intercompany liability will be required within one year or if such repayment would mean the company could not meet its external liabilities as they fall due.

 

The directors therefore consider it appropriate to continue to adopt the going concern basis in the preparation of these financial statements.

 

1.4
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.

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.

1.5
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.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

MOREHAM WOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 13 -
1.7
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.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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
Over 6 years
Intellectual property
Over 10 years
1.8
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:

Plant and equipment
Over 5 years
Computers
Over 3 years

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.

1.9
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.

1.10
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.11
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.

MOREHAM WOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 14 -
1.12
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. The company considers all of its financial instruments to be basic.

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.

Impairment of financial assets

Financial assets 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.

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 and loans from fellow group companies, 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.

1.13
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.14
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.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

 

MOREHAM WOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 15 -
1.16
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.

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Turnover

All turnover is from the principal activity and arises in the UK.

 

3
Operating loss
2024
Operating loss for the period is stated after charging:
Exchange losses
183,842
Fees payable to the company's auditor for the audit of the company's financial statements
22,500
Depreciation of owned tangible fixed assets
7,942
Amortisation of intangible assets
98,052
Operating lease charges
119,515
4
Employees

The average monthly number of persons (including directors) employed by the company during the period was:

2024
Number
Directors
3
Operations
29
Admin
6
Total
38

Their aggregate remuneration comprised:

2024
Wages and salaries
1,715,198
Social security costs
140,521
Pension costs
25,964
1,881,683
MOREHAM WOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2024
- 16 -
5
Directors' remuneration
2024
Remuneration for qualifying services
180,833
Company pension contributions to defined contribution schemes
1,321
182,154
6
Interest payable and similar expenses
2024
Interest on bank overdrafts and loans
135,715
Other interest
19,408
155,123
7
Taxation

The actual charge for the period can be reconciled to the expected credit for the period based on the profit or loss and the standard rate of tax as follows:

2024
Loss before taxation
(5,907,168)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00%
(1,476,792)
Unutilised tax losses carried forward
1,476,792
Taxation charge for the period
-
MOREHAM WOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2024
- 17 -
8
Intangible fixed assets
Goodwill
Development costs
Intellectual property
Total
Cost
At 6 January 2023
-
0
-
0
-
0
-
0
Additions
391,700
111,500
550,002
1,053,202
At 31 January 2024
391,700
111,500
550,002
1,053,202
Amortisation and impairment
At 6 January 2023
-
0
-
0
-
0
-
0
Amortisation charged for the period
39,170
3,882
55,000
98,052
At 31 January 2024
39,170
3,882
55,000
98,052
Carrying amount
At 31 January 2024
352,530
107,618
495,002
955,150
9
Tangible fixed assets
Plant and equipment
Computers
Total
Cost
At 6 January 2023
-
0
-
0
-
0
Additions
101,000
31,953
132,953
At 31 January 2024
101,000
31,953
132,953
Depreciation and impairment
At 6 January 2023
-
0
-
0
-
0
Depreciation charged in the period
2,750
5,192
7,942
At 31 January 2024
2,750
5,192
7,942
Carrying amount
At 31 January 2024
98,250
26,761
125,011
10
Stocks
2024
Finished goods and goods for resale in transit
1,970,574
Finished goods and goods for resale
2,724,054
4,694,628
MOREHAM WOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2024
- 18 -
11
Debtors
2024
Amounts falling due within one year:
Trade debtors
344,188
Other debtors
67,390
Prepayments and accrued income
88,366
499,944
12
Creditors: amounts falling due within one year
2024
Notes
Bank loans
14
454,150
Trade creditors
1,542,586
Taxation and social security
1,619,040
Deferred income
15
2,948,643
Other creditors
199,299
Accruals
251,415
7,015,133
13
Creditors: amounts falling due after more than one year
2024
Notes
Bank loans and overdrafts
14
1,038,833
Amounts owed to group undertakings
14
4,847,444
5,886,277
14
Loans and overdrafts
2024
Bank loans
1,492,983
Loans from group undertakings
4,847,444
6,340,427
Payable within one year
454,150
Payable after one year
5,886,277

The long-term loans are secured by fixed and floating charges over the trade and assets of the company.

 

MOREHAM WOOD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2024
- 19 -
15
Deferred income
2024
Arising from deferred income
2,948,643
16
Retirement benefit schemes
2024
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes
25,964

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.

17
Share capital
2024
2024
Ordinary share capital
Number
£
Issued and fully paid
10 ordinary shares of £1 each
10
10
18
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
Within one year
12,641
19
Ultimate controlling party

The company's immediate parent undertaking is Quercy Holdings Limited.

 

Quercy Holdings Limited is the smallest and largest group for which condolidated financial statements, including Moreham Wood Limited, are preapred. A copy of the consolidated financial statements for Quercy Holdings Limited can be obtained from Companies House.

 

The ultimate parent company is Moulton Goodies Limited, a company registered in Guernsey. The ultimate controlling party is Mr J P Moulton.

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