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Registered number: 05157297









MONOLITH (UK) LTD









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024

 
MONOLITH (UK) LTD
 
 
COMPANY INFORMATION


Director
E Bernotavicius 




Company secretary
S Kuhn



Registered number
05157297



Registered office
Unit 3
Thames Gateway Park, Choats Road

Dagenham

Essex

RM9 6RH




Independent auditors
Haslers
Chartered Accountants & Statutory Auditor

Old Station Road

Loughton

Essex

IG10 4PL





 
MONOLITH (UK) LTD
 

CONTENTS



Page
Strategic Report
 
1
Director's Report
 
2
Director's Responsibilities Statement
 
3
Independent Auditors' Report
 
4 - 7
Statement of Comprehensive Income
 
8
Balance Sheet
 
9
Statement of Changes in Equity
 
10 - 11
Statement of Cash Flows
 
12 - 13
Notes to the Financial Statements
 
14 - 30

 
MONOLITH (UK) LTD
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024

Introduction
 
The principal activity of the company in the year under review was that of the retail and wholesale distribution of East European grocery goods.

Business review
 
The company has had another successful year. The level of turnover has increased in line with expectations and trading has been maintained at good levels and it continues to expand.

Principal risks and uncertainties
 
The risks managed by the company are market and price related, and also foreign currency related. The company manages market and price risk through the extensive experience within the sales team as well as through its software system which enables the directors to keep on top of the company's performance and financial position. Foreign currency risk is managed by maintaining foreign currency bank accounts.

Financial key performance indicators
 
Turnover and gross profit margin are considered to be the key performance indicators. During the year, turnover has decreased by £279k as compared to the prior year. The gross profit margin moved from 34.8% to 35.9% due to external factors. 

Other key performance indicators
 
Review of business performance, a strengthened structure, and focused competitive strategy will ensure the business continues to be proactive in mitigating any risks it may encounter.


This report was approved by the board on 27 March 2025 and signed on its behalf.



E Bernotavicius
Director
Page 1

 
MONOLITH (UK) LTD
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2024

The director presents his report and the financial statements for the year ended 30 June 2024.

Results and dividends

The profit for the year, after taxation, amounted to £554,150 (2023 - £542,266).

During the year dividends were paid amounting to £1,000 (2023: 10,000).

Director

The director who served during the year was:

E Bernotavicius 

Future developments

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

Disclosure of information to auditors

The director at the time when this Director's Report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company's auditors are unaware, and

he 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 auditorsHaslerswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 27 March 2025 and signed on its behalf.
 





E Bernotavicius
Director
Page 2

 
MONOLITH (UK) LTD
 
 
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024

The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006He is 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.

Page 3

 
MONOLITH (UK) LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONOLITH (UK) LTD
 

Opinion


We have audited the financial statements of Monolith (UK) Ltd (the 'Company') for the year ended 30 June 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, 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 30 June 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 director's 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 director with respect to going concern are described in the relevant sections of this report.


Page 4

 
MONOLITH (UK) LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONOLITH (UK) LTD (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 director is 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Director's 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 Director's 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 director's 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 Director's Responsibilities Statement set out on page 3, the director is 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 director determines 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 director is 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 director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 5

 
MONOLITH (UK) LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONOLITH (UK) LTD (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:
We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are those that:
•  had a direct effect on the determination of material amounts and disclosures in the financial statements.   These include but are not limited to the Companies Act 2006, GDPR, employment and Health & Safety   legislation and tax legislation. 
•  do not have a direct effect on the financial statements but compliance with which may be fundamental to  the company’s ability to operate or to avoid a material penalty. These include operational an employment   laws and regulations including health and safety regulations, environmental regulations and GDPR. 
We obtained an understanding of how the company are complying with those legal and regulatory frameworks by making enquiries with management and those responsible for legal and compliance frameworks. We corroborated our enquiries through review of correspondence with regulatory bodies and gaining an understanding of the entity level controls of the company in respect of these areas and the controls in place to reduce opportunity for fraudulent transactions .
We discussed among the audit engagement team including relevant internal tax specialists, regarding the opportunities and incentives, including management override of controls, that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. We also communicated the applicable laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. 
The risk of management override of controls is the area where the financial statements were most susceptible to material misstatement due to fraud. In addition, the key principal risks related to the existence of inappropriate journal entries to impact the profit for the year and management bias in accounting estimates. 

Procedures performed to address these were as follows:
• Walkthrough testing was carried out to identify and assess the design effectiveness of controls,     management have in place to prevent and detect fraud, including known of suspected instances or non- 
 compliance with laws and regulations and fraud, 
• Understanding how those charged with governance considered and addressed the potential for overrid of  
 controls or other inappropriate influence over the financial reporting process, 
• Using analytical procedures to identify any unusual or unexpected relationships that may indicate risks of  material misstatements due to fraud, 
• Assessing the appropriateness of accounting estimates and challenging any significant assumptions or    judgements made by management, 
 
Page 6

 
MONOLITH (UK) LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MONOLITH (UK) LTD (CONTINUED)



• Incorporating testing of manual journal entries that were posted throughout the year. In particular, we    focused on material journal entries, journal entries posted with unusual account combinations, journal    entries crediting revenue or cash, as well as those posted in the foreign exchange nominal. These were   
 scrutinised for evidence of unusual entries, 
• Selecting specific revenue transactions based on risk criteria and obtaining supporting documentation    including sales invoice to ensure revenue was appropriately recorded ,  
• Reviewing specific cost of sale transactions based on risk criteria and reviewing invoice documentation     to ensure the expense was appropriately recorded. 
• Evaluated the business rationale of any significant transactions that are unusual or outside the normal       course of business. 
 


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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


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.





Thomas Rogers BA ACA (Senior Statutory Auditor)
for and on behalf of
Haslers
Chartered Accountants
Statutory Auditor
Old Station Road
Loughton
Essex
IG10 4PL

27 March 2025
Page 7

 
MONOLITH (UK) LTD
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
Note
£
£

  

Turnover
 4 
38,132,677
38,411,406

Cost of sales
  
(24,457,968)
(25,048,446)

Gross profit
  
13,674,709
13,362,960

Distribution costs
  
(9,083,976)
(8,876,122)

Administrative expenses
  
(3,879,604)
(3,832,604)

Other operating income
 5 
62,517
130,417

Operating profit
 6 
773,646
784,651

Interest receivable and similar income
 10 
47,626
52,209

Interest payable and similar expenses
 11 
(82,855)
(77,126)

Profit before tax
  
738,417
759,734

Tax on profit
 12 
(184,267)
(217,468)

Profit for the financial year
  
554,150
542,266

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 14 to 30 form part of these financial statements.
Page 8

 
MONOLITH (UK) LTD
REGISTERED NUMBER: 05157297

BALANCE SHEET
AS AT 30 JUNE 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
4,004,829
3,758,654

  
4,004,829
3,758,654

Current assets
  

Stocks
 14 
3,163,569
2,718,195

Debtors: amounts falling due after more than one year
 15 
456,355
423,281

Debtors: amounts falling due within one year
 15 
4,293,927
4,507,104

Cash at bank and in hand
 16 
1,008,392
859,318

  
8,922,243
8,507,898

Creditors: amounts falling due within one year
 17 
(3,370,981)
(3,276,549)

Net current assets
  
 
 
5,551,262
 
 
5,231,349

Total assets less current liabilities
  
9,556,091
8,990,003

Creditors: amounts falling due after more than one year
 18 
(1,001,539)
(1,104,578)

Provisions for liabilities
  

Deferred tax
 22 
(849,605)
(733,628)

  
 
 
(849,605)
 
 
(733,628)

Net assets
  
7,704,947
7,151,797


Capital and reserves
  

Called up share capital 
 23 
100
100

Profit and loss account
 24 
7,704,847
7,151,697

  
7,704,947
7,151,797


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 27 March 2025.




E Bernotavicius
Director

The notes on pages 14 to 30 form part of these financial statements.
Page 9

 
MONOLITH (UK) LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 July 2023
100
7,151,697
7,151,797


Comprehensive income for the year

Profit for the year
-
554,150
554,150
Total comprehensive income for the year
-
554,150
554,150


Contributions by and distributions to owners

Dividends: Equity capital
-
(1,000)
(1,000)


Total transactions with owners
-
(1,000)
(1,000)


At 30 June 2024
100
7,704,847
7,704,947


The notes on pages 14 to 30 form part of these financial statements.
Page 10

 
MONOLITH (UK) LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 July 2022
100
6,619,431
6,619,531


Comprehensive income for the year

Profit for the year
-
542,266
542,266
Total comprehensive income for the year
-
542,266
542,266


Contributions by and distributions to owners

Dividends: Equity capital
-
(10,000)
(10,000)


Total transactions with owners
-
(10,000)
(10,000)


At 30 June 2023
100
7,151,697
7,151,797


The notes on pages 14 to 30 form part of these financial statements.
Page 11

 
MONOLITH (UK) LTD
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
554,150
542,266

Adjustments for:

Depreciation of tangible assets
634,935
588,983

Loss on disposal of tangible assets
-
(6,416)

Interest paid
82,855
77,126

Interest received
(47,626)
(52,209)

Taxation charge
184,267
217,468

(Increase) in stocks
(445,374)
(258,141)

(Increase) in debtors
(3,294)
(493,616)

(Decrease)/increase in creditors
(531,295)
1,089,147

Corporation tax (paid)
(95,681)
(154,294)

Net cash generated from operating activities

332,937
1,550,314


Cash flows from investing activities

Purchase of tangible fixed assets
(676,659)
(1,801,742)

Sale of tangible fixed assets
-
(6,416)

Interest received
47,626
52,209

HP interest paid
(77,758)
(75,513)

Net cash from investing activities

(706,791)
(1,831,462)
Page 12

 
MONOLITH (UK) LTD
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024


2024
2023

£
£



Cash flows from financing activities

Repayment of loans
(76,147)
(73,838)

Repayment of/new finance leases
47,309
(306,366)

Dividends paid
(1,000)
(10,000)

Interest paid
(5,096)
(1,613)

Net cash used in financing activities
(34,934)
(391,817)

Net (decrease) in cash and cash equivalents
(408,788)
(672,965)

Cash and cash equivalents at beginning of year
841,490
1,514,455

Cash and cash equivalents at the end of year
432,702
841,490


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,008,391
859,318

Bank overdrafts
(575,689)
(17,828)

432,702
841,490


The notes on pages 14 to 30 form part of these financial statements.

Page 13

 
MONOLITH (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1.


General information

Monolith (UK) Limited is a UK Corporate, unlisted entity registered in England and Wales with registration number 05157297. The principal place of business is Unit 3, Thames Gateway Park, Choats Road, Dagenham RM9 6RH. The principal activity is that of the wholesale of Eastern European foods. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements are presented in sterling which is the functional currency of the company and are rounded to the nearest pound sterling.

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

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 14

 
MONOLITH (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
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.

Income is recognised on delivery of goods. 

 
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

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.7

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 Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 15

 
MONOLITH (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.8

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 balance sheet 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 balance sheet 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 balance sheet date.


 
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, using the straight-line method.

Depreciation is provided on the following basis:

Short-term leasehold property
-
Over 5 years
Plant and machinery
-
Between 3 and 10 years
Motor vehicles
-
Between 5 and 10 years
Office equipment
-
Between 1 and 5 years
Assets under construction
-

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.

Page 16

 
MONOLITH (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.10

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 balance sheet 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.

 
2.11

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.

 
2.12

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.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.13

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.

 
2.14

Financial instruments

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.

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.
Page 17

 
MONOLITH (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)


2.14
Financial instruments (continued)


Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained. 
 
Page 18

 
MONOLITH (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)


2.14
Financial instruments (continued)


Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.15

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.


Judgements in applying accounting policies and key sources of estimation uncertainty

In applying the Company's accounting policies, the director is required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The director's judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.
The director does not believe that there have been judgements made in the process of applying the above accounting policies that have had a significant effect on amounts recognised in the financial statements. Furthermore,  the director considers that there are no areas of estimation uncertainty at the balance sheet date that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year. 


4.


Turnover

2024
2023
£
£

Sales
38,132,677
38,411,406

38,132,677
38,411,406


All turnover arose within the United Kingdom.

Page 19

 
MONOLITH (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

5.


Other operating income

2024
2023
£
£

Marketing yields and other operating income
62,517
130,417

62,517
130,417



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Other operating lease rentals
17
-


7.


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
23,000
25,250

8.


Employees

Staff costs, including director's remuneration, were as follows:


2024
2023
£
£

Wages and salaries
6,313,660
5,930,476

Social security costs
641,725
617,969

Cost of defined contribution scheme
113,018
113,140

7,068,403
6,661,585


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


        2024
        2023
            No.
            No.







Sales and administration
179
172

Page 20

 
MONOLITH (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

9.


Director's remuneration

2024
2023
£
£

Director's emoluments
260,137
343,871

Company contributions to defined contribution pension schemes
1,321
1,322

261,458
345,193


The highest paid director received remuneration of £261,458 (2023 - £345,193).


10.


Interest receivable

2024
2023
£
£


Other interest receivable
47,626
52,209

47,626
52,209


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
5,097
1,613

Finance leases and hire purchase contracts
77,758
75,513

82,855
77,126

Page 21

 
MONOLITH (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
68,290
(66,956)


68,290
(66,956)


Total current tax
68,290
(66,956)

Deferred tax


Origination and reversal of timing differences
115,977
284,424

Total deferred tax
115,977
284,424


Tax on profit
184,267
217,468
Page 22

 
MONOLITH (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher 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
738,417
759,734


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
184,604
144,349

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
9,004
6,800

Capital allowances for year in excess of depreciation
-
(240,310)

Adjustments to tax charge in respect of prior periods
(11,466)
-

Unrelieved tax losses carried forward
-
35,848

Other differences leading to an increase (decrease) in the tax charge
2,125
-

Deferred Tax
-
270,781

Total tax charge for the year
184,267
217,468


Factors that may affect future tax charges

There were no factors that may affect future tax charges. 

Page 23
 


 
MONOLITH (UK) LTD


 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024


13.


Tangible fixed assets






Short-term leasehold property
Plant and machinery
Motor vehicles
Office equipment
Assets under construction
Total

£
£
£
£
£
£



Cost or valuation


At 1 July 2023 (as restated)
110,976
2,085,448
2,857,402
667,137
1,468,710
7,189,673


Additions
-
319,139
256,813
33,008
274,207
883,167


Transfers between classes
-
1,742,917
-
-
(1,742,917)
-



At 30 June 2024

110,976
4,147,504
3,114,215
700,145
-
8,072,840



Depreciation


At 1 July 2023 (as restated)
45,194
1,403,027
1,665,431
317,368
-
3,431,020


Charge for the year on owned assets
13,669
233,702
37,764
129,078
-
414,213


Charge for the year on financed assets
-
-
222,778
-
-
222,778



At 30 June 2024

58,863
1,636,729
1,925,973
446,446
-
4,068,011



Net book value



At 30 June 2024
52,113
2,510,775
1,188,242
253,699
-
4,004,829



At 30 June 2023
65,782
682,421
1,191,971
349,770
1,468,710
3,758,654

Page 24
 
MONOLITH (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

           13.Tangible fixed assets (continued)




The net book value of land and buildings may be further analysed as follows:


2024
2023
£
£

Short leasehold
52,113
65,782

52,113
65,782



14.


Stocks

2024
2023
£
£

Finished goods and goods for resale
3,163,569
2,718,195

3,163,569
2,718,195



15.


Debtors

2024
2023
£
£

Due after more than one year

Other debtors
456,355
423,281

456,355
423,281


2024
2023
£
£

Due within one year

Trade debtors
1,767,686
1,851,138

Other debtors
2,108,541
2,241,938

Prepayments and accrued income
417,700
414,028

4,293,927
4,507,104


Page 25

 
MONOLITH (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

16.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
1,008,391
859,318

Less: bank overdrafts
(575,688)
(17,828)

432,703
841,490



17.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
575,689
17,828

Bank loans
78,017
76,486

Trade creditors
1,494,165
1,491,484

Corporation tax
2,907
-

Other taxation and social security
177,694
315,466

Obligations under finance lease and hire purchase contracts
440,894
368,222

Other creditors
423,800
461,933

Accruals and deferred income
177,815
545,130

3,370,981
3,276,549


The borrowings of the company are secured by way of a debenture over the assets of the company. 


18.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
85,469
163,145

Net obligations under finance leases and hire purchase contracts
916,070
941,433

1,001,539
1,104,578


The borrowings of the company are secured by way of a debenture over the assets of the company. 

Page 26

 
MONOLITH (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

19.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
78,017
76,486


78,017
76,486

Amounts falling due 1-2 years

Bank loans
85,467
81,115


85,467
81,115

Amounts falling due 2-5 years

Bank loans
-
82,030


-
82,030


163,484
239,631

Page 27

 
MONOLITH (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

20.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
321,958
368,222

Between 1-5 years
670,592
906,236

Over 5 years
22,226
35,197

1,014,776
1,309,655


21.


Financial instruments

2024
2023
£
£

Financial assets


Financial assets measured at fair value through profit or loss
1,008,391
859,318




Financial assets measured at fair value through profit or loss comprise cash at bank and in hand. 


22.


Deferred taxation




2024


£






At beginning of year
(733,628)


Charged to profit or loss
(115,977)



At end of year
(849,605)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(849,605)
(769,476)

Tax losses carried forward
-
35,848

(849,605)
(733,628)

Page 28

 
MONOLITH (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
 
22.Deferred taxation (continued)


The net reversal of deferred tax liabilities expected to reverse in the next year is £51,774 (2023: £63,224). This primarily relates to the reversal of timing differences on acquired tangible assets and capital allowances through depreciation. 


23.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



100 (2023 - 100) Ordinary shares of £1.00 each
100
100



24.


Reserves

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.


25.


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 £113,018 (2023: £113,140).  The amount outstanding at the balance sheet date is £9,058 (2023: £9,666).


26.


Transactions with directors

At the year end, £456,354 (2023: £423,281) was due from the directors of the company.  Interest of £10,594 (2023: £8,337) has been charged on the loan. 

Page 29

 
MONOLITH (UK) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

27.


Related party transactions

The total remuneration and commission paid to key management personnel is £260,136 (2023: £413,186).
During the year transaction with the following related parties occurred:
Entities over which the entity has control
Purchases of £208,574 (2023: £443,066) were made by the company.
Owners holding a participating interest
Consultancy services amounting to £6,600 (2023: £16,244) were provided to the company during the year.
Entities over which the entity has significant influence
Consultancy services amounting to £39,000 (2023: £55,046) were provided to the company during the year.
At the year end the following balances were due from/(to) related parties:


2024
2023
£
£

Key management personnel
456,354
423,281
Owners holding a participating interest
183,248
127,023
639,602
550,304


28.


Controlling party

The parent company of Monolith (UK) Ltd is PESS & W Int. Holding GmbH. The ultimate controlling party is P Schuju by virtue of his majority shareholding.
 
Page 30