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Registered number: 04449605









MONMORE CONFECTIONERY (MIDLANDS) LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2024

 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 
 
COMPANY INFORMATION


Directors
Sukhdev Mehta 
Santosh Mehta 
Sanjay Mehta 
Aneil Mehta 




Company secretary
Santosh Mehta



Registered number
04449605



Registered office
Unit 7 Phoenix Industrial Estate
Loxdale Street

Wolverhampton

West Midlands

WV14 0PR




Independent auditors
Lancaster  Clements Limited
Chartered Certified Accountants

Stanley House

27 Wellington Road

Bilston

West Midlands

WV14 6AH




Bankers
Barclays Bank Plc
Queen Square

Wolverhampton

West Midlands

WV1 1XJ





 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 

CONTENTS



Page
Strategic report
 
1
Directors' report
 
2 - 3
Independent auditors' report
 
4 - 7
Statement of comprehensive income
 
8
Statement of financial position
 
9
Statement of changes in equity
 
10
Notes to the financial statements
 
11 - 24


 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024

Introduction
 
The principal activity of Monmore Confectionery (Midalnds) Limited, is that of confectionery wholesalers.

Business review
 
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. 

Principal risks and uncertainties
 
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.

Financial key performance indicators
 
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%.

Other key performance indicators
 
There are no other key performance indicators.


This report was approved by the board on 19 February 2025 and signed on its behalf.



Sukhdev Mehta
Director

Page 1

 
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.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 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 2006They 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.

Results and dividends

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.

Directors

The directors who served during the year were:

Sukhdev Mehta 
Santosh Mehta 
Sanjay Mehta 
Aneil Mehta 

Future developments

The directors consider that there are no future developments of the company required to be disclosed.

Page 2

 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsLancaster  Clements Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 19 February 2025 and signed on its behalf.
 





Santosh Mehta
Director

Page 3

 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 

Opinion


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 policiesThe 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 May 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 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.


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.


Page 4

 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONMORE CONFECTIONERY (MIDLANDS) LIMITED (CONTINUED)


Other information


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 ReportOur 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.


Opinion 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 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.


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:


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 Directors' responsibilities statement set out on page 2, 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.


Page 5

 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONMORE CONFECTIONERY (MIDLANDS) LIMITED (CONTINUED)


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 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.


Page 6

 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONMORE CONFECTIONERY (MIDLANDS) LIMITED (CONTINUED)


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 2006Our 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.





Mark Anthony Cupitt (Senior statutory auditor)
  
for and on behalf of
Lancaster  Clements Limited
 
Chartered Certified Accountants
  
Stanley House
27 Wellington Road
Bilston
West Midlands
WV14 6AH

19 February 2025
Page 7

 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024

2024
2023
Note
£
£

  

Turnover
 4 
20,800,159
15,146,015

Cost of sales
  
(16,598,082)
(12,183,323)

Gross profit
  
4,202,077
2,962,692

Administrative expenses
  
(3,218,600)
(2,156,370)

Other operating income
 5 
1,500
-

Operating profit
  
984,977
806,322

Interest receivable and similar income
 9 
29,527
3,287

Interest payable and similar expenses
 10 
-
(576)

Profit before tax
  
1,014,504
809,033

Tax on profit
 11 
(219,636)
(155,434)

Profit for the financial year
  
794,868
653,599

Other comprehensive income for the year
  

Total comprehensive income for the year
  
794,868
653,599

The notes on pages 11 to 24 form part of these financial statements.

Page 8

 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
REGISTERED NUMBER: 04449605

STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 13 
500
1,500

Tangible assets
 14 
580,571
316,811

Investments
 15 
301,500
301,500

  
882,571
619,811

Current assets
  

Stocks
 16 
2,083,029
1,288,604

Debtors: amounts falling due within one year
 17 
2,171,347
869,873

Cash at bank and in hand
 18 
791,621
1,534,883

  
5,045,997
3,693,360

Creditors: amounts falling due within one year
 19 
(3,282,661)
(2,276,653)

Net current assets
  
 
 
1,763,336
 
 
1,416,707

Total assets less current liabilities
  
2,645,907
2,036,518

Provisions for liabilities
  

Deferred tax
 20 
(123,595)
(59,074)

  
 
 
(123,595)
 
 
(59,074)

Net assets
  
2,522,312
1,977,444


Capital and reserves
  

Called up share capital 
 21 
1
1

Profit and loss account
  
2,522,311
1,977,443

  
2,522,312
1,977,444


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 February 2025.




Sukhdev Mehta
Director

The notes on pages 11 to 24 form part of these financial statements.

Page 9

 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 June 2022
1
1,358,844
1,358,845


Comprehensive income for the year

Profit for the year

-
653,599
653,599


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
653,599
653,599


Contributions by and distributions to owners

Dividends: Equity capital
-
(35,000)
(35,000)


Total transactions with owners
-
(35,000)
(35,000)



At 1 June 2023
1
1,977,443
1,977,444


Comprehensive income for the year

Profit for the year

-
794,868
794,868


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
794,868
794,868


Contributions by and distributions to owners

Dividends: Equity capital
-
(250,000)
(250,000)


Total transactions with owners
-
(250,000)
(250,000)


At 31 May 2024
1
2,522,311
2,522,312


The notes on pages 11 to 24 form part of these financial statements.

Page 10

 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

1.


General information

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

 
2.1

Basis of preparation of financial statements

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:

 
2.2

Exemption from preparing consolidated financial statements

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.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
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 Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Page 11

 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.4

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


Page 12

 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.8

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of comprehensive income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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.

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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:

Short-term leasehold property
-
Straight line over the life of the lease
Plant and machinery
-
25% reducing balance
Motor vehicles
-
25% reducing balance
Fixtures and fittings
-
25% reducing balance

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.

 
2.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 13

 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is 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.

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.15

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.16

Financial instruments

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
Page 14

 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)


2.16
Financial instruments (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.

 
2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

To be able to prepare financial statements in accordance with FRS102, Monmore Confectionery (Midlands) Limited must make certain estimates and judgments that have an impact on the policies and the amounts reported in the annual accounts. The estimates and judgments are based on historical experiences and other factors including expectations of future events that are believed to be reasonable at the time such estimates and judgments are made. Actual experience may vary from these estimates. The estimates and assumptions which have the most significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are discussed below:
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.

Page 15

 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

4.


Turnover

The whole of the turnover is attributable to the company's principal business activity.

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
20,788,701
15,130,660

Rest of the world
11,458
15,355

20,800,159
15,146,015



5.


Other operating income

2024
2023
£
£

Sundry income
1,500
-

1,500
-



6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
8,000
-

Page 16

 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
1,365,314
920,058

Social security costs
82,852
51,804

Cost of defined contribution scheme
266,358
11,597

1,714,524
983,459


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Directors
4
4



Warehouse/Office staff
33
29

37
33


8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
53,495
51,104

Company contributions to defined contribution pension schemes
250,000
-

303,495
51,104


During the year retirement benefits were accruing to 4 directors (2023 - NIL) in respect of defined contribution pension schemes.


9.


Interest receivable

2024
2023
£
£


Bank interest receivable
29,527
3,287

29,527
3,287

Page 17

 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

10.


Interest payable and similar expenses

2024
2023
£
£


Other interest payable
-
576

-
576


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
155,115
154,164


155,115
154,164


Total current tax
155,115
154,164

Deferred tax


Origination and reversal of timing differences
64,521
1,270

Total deferred tax
64,521
1,270


Tax on profit
219,636
155,434
Page 18

 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,014,504
809,033


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
253,626
153,716

Effects of:


Other differences leading to an increase (decrease) in the tax charge
(33,990)
1,718

Total tax charge for the year
219,636
155,434


12.


Dividends

2024
2023
£
£


Ordinary shares
250,000
35,000

250,000
35,000

Page 19

 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

13.


Intangible assets




Goodwill

£



Cost


At 1 June 2023
5,000



At 31 May 2024

5,000



Amortisation


At 1 June 2023
3,500


Charge for the year on owned assets
1,000



At 31 May 2024

4,500



Net book value



At 31 May 2024
500



At 31 May 2023
1,500



Page 20

 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

14.


Tangible fixed assets





Short-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 June 2023
21,457
485,088
131,309
3,387
641,241


Additions
-
153,997
286,519
-
440,516


Disposals
-
(15,291)
(68,730)
-
(84,021)



At 31 May 2024

21,457
623,794
349,098
3,387
997,736



Depreciation


At 1 June 2023
21,457
260,139
40,201
2,633
324,430


Charge for the year on owned assets
-
83,829
51,659
190
135,678


Disposals
-
(9,854)
(33,089)
-
(42,943)



At 31 May 2024

21,457
334,114
58,771
2,823
417,165



Net book value



At 31 May 2024
-
289,680
290,327
564
580,571



At 31 May 2023
-
224,949
91,108
754
316,811


15.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 June 2023
301,500



At 31 May 2024
301,500





Page 21

 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

16.


Stocks

2024
2023
£
£

Finished goods and goods for resale
2,083,029
1,288,604

2,083,029
1,288,604



17.


Debtors

2024
2023
£
£


Trade debtors
1,122,364
808,050

Amounts owed by group undertakings
968,559
-

Other debtors
2,771
-

Prepayments and accrued income
77,653
61,823

2,171,347
869,873



18.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
791,621
1,534,883

791,621
1,534,883



19.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
2,218,654
1,610,705

Amounts owed to group undertakings
484,427
963

Corporation tax
-
154,164

Other taxation and social security
382,850
170,693

Other creditors
124,312
301,819

Accruals and deferred income
72,418
38,309

3,282,661
2,276,653


Page 22

 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

20.


Deferred taxation




2024
2023


£

£






At beginning of year
59,074
57,803


Charged to profit or loss
64,521
1,271



At end of year
123,595
59,074

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
123,595
59,074

123,595
59,074


21.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1 (2023 - 1) Ordinary share of £1.00
1
1



22.


Contingent liabilities

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.


23.


Pension commitments

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.


24.


Related party transactions

The company is exempt from disclosing any realted party transactions as they are with other companies that are wholly owned within the Group.

Page 23

 
MONMORE CONFECTIONERY (MIDLANDS) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

25.


Parent company and ultimate controlling interest

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. 


26.


Limitation of Auditors' liability

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.

 
Page 24