Registered number:
FOR THE YEAR ENDED 31 MAY 2024
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
COMPANY INFORMATION
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
CONTENTS
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
The principal activity of Monmore Confectionery (Midalnds) Limited, is that of confectionery wholesalers.
The company continues to strive to attain an increased turnover. This has been achieved in the year with an increase of 37% taking the turnover for the year to £20,800,159. The company has managed to also increase its gross profit margin by 0.6% taking it to 20.2% of turnover this year. Cash flow has been identified as the principal risk affecting the Company, however, there are sufficient funds currently available within the business.
Current trading results along with the level of working capital available, gives the directors confidence in the company's long term future. The overall trading outlook for the financial year ended 31 May 2025 is positive.
The company has financial risks and seeks to minimise these by incorporating and rigorously implementing controls into key functions as part of the normal business operations.
Management review sale prices on a continuous basis to account for fluctuations in costs in order to minimise the risk of gross margin erosion, whilst also managing procurement to take advantage of fluctuating comodity prices at the lowest levels. This policy is supported by having the liquid reserves to invest in stock whilst commodity prices are at their lowest. It is therefore recognised that Cash reserves and cash flows are the principle risks facing the business.
The key performance indicators continue to be turnover, gross profit, operating profit and cash, which have all met the desired performance levels. There has been an increase in turnover and the gross profit margin. On a year to year basis turnover has increased by 37% and gross profit margins has increased from 19.6% to 20.2%.
There are no other key performance indicators.
This report was approved by the board on 19 February 2025 and signed on its behalf.
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
The directors present their report and the financial statements for the year ended 31 May 2024.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙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 to 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.
The profit for the year, after taxation, amounted to £794,868 (2023 - £653,599).
The directors do not propose to recommend payment of a dividend.
The directors who served during the year were:
The directors consider that there are no future developments of the company required to be disclosed.
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
There have been no significant events affecting the Company since the year end.
The auditors, Lancaster Clements Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONMORE CONFECTIONERY (MIDLANDS) LIMITED
We have audited the financial statements of Monmore Confectionery (Midlands) Limited (the 'Company') for the year ended 31 May 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, 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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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.
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONMORE CONFECTIONERY (MIDLANDS) LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONMORE CONFECTIONERY (MIDLANDS) LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Identifying and assessing potential risks related to irregularities
We obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, tax legislation and regulations relating to the employed workforce. In assessing risks of material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: - The clients evaluation of compliance with laws and regulations and whether they were aware of any instances of none compliance, along with the measures in place to mitigate any such instances. - Methods in place to detect and respond to the risk of fraud and whether there was any actual, suspected or alleged fraud, along with controls established to mitigate such risks. - Where fraud might occur in the financial statements and any potential indicators of fraud. As a result of those procedures we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential being in relation to, stock pilferage or misappropriation, management override of controls and transactions outside the normal course of business, particularly with related parties. Audit response to risks identified Our procedures to respond to the risks identified included the following: - Testing of material journal entries, paying particular attention to the period immediately prior to and following the reporting date. - Evaluation of the business rationale behind transactions made between related parties that are unusual or outside the normal course of business. - An assessment of whether the judgements made in making accounting estimates are indicative of a potential bias. - Making enquiries of management concerning actual or potential litigation and claims. We have designed our procedures to best identify the likelihood or occurrence of irregularities, whether or not arising due to fraud. However, it is accepted that there is an inherent difficulty in detecting irregularities and our findings are subject to the timing and extent of the audit procedures performed
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONMORE CONFECTIONERY (MIDLANDS) LIMITED (CONTINUED)
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 Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Certified Accountants
Stanley House
27 Wellington Road
West Midlands
WV14 6AH
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
REGISTERED NUMBER: 04449605
STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 11 to 24 form part of these financial statements.
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
The company is registered in England and Wales. The company's registered office is Unit 7 Phoenix Industrial Estate, Loxdale Street, Bilston, West Midlands, WV14 0PR. The principal activity of the company continues to be that of confectionery wholesalers.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.
The company has taken advantage of the exemption under FRS 102, Section 1.12(b), which allows qualifying entities not to prepare a cash flow statement. This exemption is applicable as the company is a subsidiary and its parent company, The Monmore Group Limited], prepares publicly available consolidated financial statements that include the company and are intended to give a true and fair view of the group's financial position.
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
Goodwill
Other intangible assets
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the Company's Statement of financial position when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Depreciation and amortisation: Monmore Confectionery (Midlands) Limited accounts for depreciation and amortisation in accordance with FRS102. The depreciation and amortisation expense is the recognition of the decline in the value of the assets and allocation of the cost of the asset over the periods in which the asset will be used. Judgments are made on the estimated useful life of the assets which are regularly reviewed to reflect the changing environment. Impairment of stocks Certain factors could affect the realisable value of the company's stocks, including customer demand and market conditions. The company considers historic usage, expected demand, anticipated sales price, effect of new product introductions, product obsolscence and other factors when evaluating the value of stock.
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
The whole of the turnover is attributable to the company's principal business activity.
Analysis of turnover by country of destination:
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
11.Taxation (continued)
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
The company has given a guarantee to it's subsidiary company Superbsweets Limited in relation to the rental lease agreement. The maximum liability is £223,125 as at the balance sheet date.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £266,358 (2023 - £11,597). Contributions totalling £4,322 (2023 - £2,527) were payable to the fund at the reporting date and are included in creditors.
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MONMORE CONFECTIONERY (MIDLANDS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
The parent company is The Monmore Group Limited, registered in England and Wales. Copies of the financial statements can be obtained from Unit 7 Phoenix Industrial Estate, Loxdale Street, Wolverhampton, West Midlands, WV14 0PR. The ultimate controlling parties are Sukhdev and Santosh Mehta.
The company has entered into a liability limitation agreement, the principal terms being as follows:-
Any liability is limited, pursuant to Section 537 of the Companies Act 2006, to no less than such amount as is considered fair and reasonable in each individual circumstance and to a maximum of ten times the level of the fee for the audit service being carried out. The resolution approving this agreement is dated 1 May 2024.
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