Company Registration No. 01092975 (England and Wales)
Manutan UK Limited
Annual report and financial statements
for the year ended 30 September 2024
Manutan UK Limited
Company information
Directors
P Brial
X Guichard
J Metcalfe
Company number
01092975
Registered office
Blackmoor Road
Ebblake Industrial Estate
Verwood
Dorset
BH31 6AT
Independent auditor
Forvis Mazars LLP
5th Floor
Merck House
Seldown Lane
Poole
Dorset
BH15 1TW
Bankers
HSBC Bank plc
62 George White Street
Cabot Circus
Bristol
BS1 3BA
Solicitors
Cripps LLP
Number 22
Mount Ephraim
Tunbridge Wells
Kent
TN4 8AS
Manutan UK Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 28
Manutan UK Limited
Strategic report
For the year ended 30 September 2024
1

The directors present the strategic report for the year ended 30 September 2024.

Business review and principal activities

Manutan UK Limited’s principal activity remains the marketing and distribution of over 60,000 office and industrial products to existing and prospective business customers.

The B2B distance selling market for these products continues to present challenges. The UK economy remains difficult with interest rates remaining high as well as geopolitical uncertainties, such as the Ukraine conflict. These macro-economic factors continue to influence customer purchasing decisions. Despite this, the expanding Manutan range and a widening customer portfolio have enabled Manutan UK to remain resilient and optimistic about future business growth.

The competitive landscape continues to evolve with an increasing number of competitors entering Manutan UK’s product markets, which can have low barriers to entry, especially for drop ship operators. Within the UK market for generalist office and industrial supplies, there are a few directly comparable companies and an increasing number of web-based companies offering similar product ranges. Larger distributor companies are also moving into this market area, squeezing generalist distance selling companies.

Management continues to focus on widening the B2B customer portfolio, recruiting customers from a wide range of industries and sectors, particularly those with potential for frequent purchases across Manutan UK's vast product offering. This diverse customer portfolio across both public and private sectors continues to grow, reducing reliance on any single customer or industry segment. While certain industry sectors continue to face economic challenges, there are also growth sectors and investments being realized by companies and the government, which Manutan UK continues to focus on.

Manutan UK continues to develop the product offering, including increasing the own brand range of Manutan Expert products, offering an extensive range of sustainable and quality products across the entire range, many held in stock for next day delivery and with a warranty of up to 10 years on certain equipment.

Despite challenging trading conditions within the UK economy, the overall turnover for the year to 30 September 2024 remained in line with the prior year performance.

The directors continue to invest in our stock levels and next-day delivery services for many products available across the 20 product categories within the offer. The Manutan Group Product Marketing Team has focused on developing depth within product ranges, giving customers a wider choice of both existing and new innovative products. Accompanying this is a sales force capable of imparting information on the technical attributes of many bestselling products, enabling potential customers to make informed decisions before making a final purchase.

Customer satisfaction is measured through web-based metrics, such as Trustpilot, and monthly NPS customer surveys. The company continues to invest in its systems and develop quality and environmental management, maintaining certifications with ISO 9001, ISO 14001, and ISO 45001.

Principal risks and uncertainties

As the UK economy continues to demonstrate flat growth, directors are aware that certain industry sectors are taking longer to recover than others. Risk is mitigated by not focusing on a few industry segments and by regularly reviewing customer credit limits based on their most recent credit scores from external credit reference agencies.

Manutan UK is not reliant on a few suppliers, and support from a Group purchasing strategy and team mitigates any business risk from the supply base. As the business sources more products from European Manutan Group suppliers, the risk of exchange rate fluctuations is managed using forward exchange contracts.

The directors recognize that the most valuable asset of Manutan UK is its employees. Their dedication and expertise are crucial in enhancing the customer experience. Within the broader Manutan group, there is a strategic emphasis on the “Working@Manutan” initiative, which aims to create an optimal work environment and onsite experience for all employees. Additionally, the company acknowledges the benefits of hybrid working (both home and office) for certain teams.

Manutan UK Limited
Strategic report (continued)
For the year ended 30 September 2024
2
Financial performance

Profit & Loss

Despite the challenging economic climate and increased competition, business turnover remained in line with the prior year.

The number of customers trading with Manutan UK declined by 2%, although customer numbers transacting through the web channel remained resilient when compared to the prior year.

Challenges persist within the global supply chain, particularly due to fluctuations in inbound shipments to the UK, which have impacted the gross margin for this financial year, reducing it to 29.1% from 30.6% in 2023. Throughout the year, management has reviewed the prices of numerous products in the range to ensure they remain competitively priced in the market.

Administrative costs were 1.2% higher than the prior year, mainly due to investment in business technology and digital marketing activities. The profit for the financial year after taxation is £86k compared to £684k in 2023.

Balance Sheet

Manutan UK warehouse stock increased by 12.7% as part of our overall stockholding policy to boost the number of fast-selling products. By stocking more products in our own warehouse, we enhance our ability to deliver next-day, thereby improving customer service. This policy has been made possible by reducing the levels of slow-moving and obsolete stock.

Overall, a strong balance sheet is maintained with net current assets of £8.9m (2023: £9.4m).

Manutan performance indicators

The board monitors progress on overall strategy by reference to three Manutan performance indicators:

2024
2023
Defintion, method of calculation
Sales Growth (%)
-0.3%
+10.0%
Year on year sales growth expressed as a percentage
Gross margin (%)
29.1%
30.6%
Gross profit expressed as a percentage of sales
Return on Investment (%)
0.7%
5.1%
Profit expressed as a percentage of net assets
Future developments

We anticipate that investment in sales and marketing plans will continue at similar levels for the coming year, and the business will maintain sales levels for 2025. We expect gross margins to remain under pressure, although we continue to work on improving them year on year.

 


On behalf of the board

J Metcalfe
Director
21 February 2025
Manutan UK Limited
Directors' report
For the year ended 30 September 2024
3

The directors present their annual report and financial statements for the year ended 30 September 2024.

Principal activities

The principal activity of the company continued to be that of the sale of C-Class product purchases increasingly through web channels but also through other channels such as paper mailings and email campaigns.

Results and dividends

The profit for the year, after taxation, amounted to £86k (2023: £684k).

Dividends were issued in the year of £729k (2023: £627k).

Directors

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

P Brial
X Guichard
J Metcalfe
Post reporting date events

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

Auditor

The auditor, Forvis Mazars LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Statement of disclosure to auditor

Each of the persons who are Directors at the time when this Directors' report is approved has confirmed that:

 

 

Going concern

In determining whether the company’s financial statements can be prepared on a going-concern basis, the directors considered the business activities, together with the factors likely to affect its future development, performance and position; these are set out in the Strategic Report. In addition, the directors have also prepared a cashflow forecast for the next twelve months from the signing date and conclude that there is sufficient resource to continue operating during that period.

 

The company meets its day-to-day working capital requirements through existing cash resources, including access to Manutan Group cash pooling funds. These cash pooling funds are included within the intercompany balance.

 

The business forecasts and projections, taking account of reasonably possible changes in trading performance, show that the company should be able to operate within the level of its current cash resources, without requirement for external cash funding. The cashflows allow for future payment of dividends to Manutan Group.

 

As at the date of this report, the directors have a reasonable expectation that the Company has adequate resources to continue in business for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statement.

Manutan UK Limited
Directors' report (continued)
For the year ended 30 September 2024
4
Matters covered in the Strategic Report

The mandatory disclosure in relation to the principal risks and uncertainties and the future developments of the company are considered by the directors to be of strategic importance. These have therefore been included in the Strategic Report.

On behalf of the board
J Metcalfe
Director
21 February 2025
Manutan UK Limited
Directors' responsibilities statement
For the year ended 30 September 2024
5

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).

 

Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Manutan UK Limited
Independent auditor's report
To the members of Manutan UK Limited
6
Opinion

We have audited the financial statements of Manutan Limited (the ‘company’) for the year ended 30 September 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, 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 FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

 

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the “Auditor’s responsibilities for the audit of the financial statements” section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

 

Other information

The other information comprises the information included in annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

 

 

Manutan UK Limited
Independent auditor's report (continued)
To the members of Manutan UK Limited
7

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In 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:

 

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 6, 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.

Manutan UK Limited
Independent auditor's report (continued)
To the members of Manutan UK Limited
8
Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

 

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

 

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.

 

Based on our understanding of the company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation anti-money laundering regulation.

 

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

 

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006.

 

In addition, we evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to revenue recognition (which we pinpointed to the cut off assertion) and significant one-off or unusual transactions.

Manutan UK Limited
Independent auditor's report (continued)
To the members of Manutan UK Limited
9

Our audit procedures in relation to fraud included but were not limited to:

 

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

 

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 auditor’s 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 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body for our audit work, for this report, or for the opinions we have formed.

 

Julie Breakell (Senior Statutory Auditor)
for and on behalf of Forvis Mazars LLP
25 February 2025
Chartered Accountants and Statutory Auditor
5th Floor
Merck House
Seldown Lane
Poole
Dorset
BH15 1TW
Manutan UK Limited
Statement of comprehensive income
For the year ended 30 September 2024
10
2024
2023
Notes
£000
£000
Turnover
3
30,377
30,461
Cost of sales
(21,547)
(21,128)
Gross profit
8,830
9,333
Administrative expenses
(8,723)
(8,618)
Other operating income
3
10
165
Operating profit
4
117
880
Interest payable and similar expenses
8
(3)
(3)
Profit before taxation
114
877
Tax on profit
9
(28)
(193)
Profit for the financial year
86
684

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

There was no other comprehensive income for 2024 (2023: £NIL).
Manutan UK Limited
Balance sheet
As at 30 September 2024
11
2024
2023
as restated
(note 25)
Notes
£000
£000
£000
£000
Fixed assets
Intangible assets
11
-
-
Tangible assets
12
1,414
1,514
Investment properties
13
2,544
2,544
3,958
4,058
Current assets
Stocks
14
4,007
3,555
Debtors
15
10,049
10,229
Cash at bank and in hand
5,024
2,897
19,080
16,681
Creditors: amounts falling due within one year
16
(10,194)
(7,241)
Net current assets
8,886
9,440
Total assets less current liabilities
12,844
13,498
Provisions for liabilities
Deferred tax liability
17
121
132
(121)
(132)
Net assets
12,723
13,366
Capital and reserves
Called up share capital
19
7,000
7,000
Non-distributable reserves
20
1,072
1,072
Profit and loss reserves
21
4,651
5,294
Total equity
12,723
13,366
The financial statements were approved by the board of directors and authorised for issue on 21 February 2025 and are signed on its behalf by:
J Metcalfe
Director
Company Registration No. 01092975
Manutan UK Limited
Statement of changes in equity
For the year ended 30 September 2024
12
Share capital
Non-distributable reserve
Profit and loss reserves
Total
Notes
£000
£000
£000
£000
Balance at 1 October 2022
7,000
1,072
5,237
13,309
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
-
684
684
Dividends
10
-
-
(627)
(627)
Balance at 30 September 2023
7,000
1,072
5,294
13,366
Year ended 30 September 2024:
Profit and total comprehensive income for the year
-
-
86
86
Dividends
10
-
-
(729)
(729)
Balance at 30 September 2024
7,000
1,072
4,651
12,723
Manutan UK Limited
Notes to the financial statements
For the year ended 30 September 2024
13
1
Accounting policies
Company information

Manutan UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Blackmoor Road, Ebblake Industrial Estate, Verwood, Dorset, BH31 6AT.

 

The company's principal activity continues to be the sale of C-Class product purchases increasingly through web channels but also through other channels such as paper mailings and email campaigns.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £000.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Manutan Holding SAS as at 30 September 2024 and these consolidated financial statements are available from its registered office, ZAC du Parc des Tulipes, Avenue du 21eme Siecle,95500 Gonesse, France.

Manutan UK Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
14
1.2
Going concern

In determining whether the company’s financial statements can be prepared on a going-concern basis, thetrue directors considered the business activities, together with the factors likely to affect its future development, performance and position; these are set out in the Strategic Report. In addition, the directors have also prepared a cashflow forecast for the next twelve months from the signing date and conclude that there is sufficient resource to continue operating during that period.

 

The company meets its day-to-day working capital requirements through existing cash resources, including access to Manutan Group cash pooling funds. These cash pooling funds are included within the intercompany balance.

 

The business forecasts and projections, taking account of reasonably possible changes in trading performance, show that the company should be able to operate within the level of its current cash resources, without requirement for external cash funding. The cashflows allow for future payment of dividends to Manutan Group.

 

As at the date of this report, the directors have a reasonable expectation that the Company has adequate resources to continue in business for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statement.

 

1.3
Turnover

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:

 

These conditions are satisfied at the point of delivery to the customer.

Manutan UK Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
15
1.4
Tangible fixed assets

Tangible fixed assets under the cost model, other than investment properties, 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.

 

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

 

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:

Freehold buildings        - 25 years

Warehouse plant and tools        - 5 years

Motor vehicles            - 5 years

Office equipment             - 5 years

Fixtures & fittings            - 10 years

Computer: hardware        - 5 years

Computer: software        - 5 years

 

 

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 the Statement of comprehensive income.

 

1.5
Investment properties

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of comprehensive income.

1.6
Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to sell. Cost is based on the cost of purchase on a weighted average basis and finished goods include 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.

 

Manutan UK Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
16
1.7
Cash at bank and in hand

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.

The Company participates in a comprehensive cash pooling arrangement managed by its parent company, designed to optimise liquidity management and enhance financial efficiency across the group. This arrangement allows the Company to benefit from centralised cash management, where the cash balances of all participating entities are consolidated into a central account. The cash pool balances controlled by the parent treasury management company are included within amounts owing by group undertakings as described in note 15.

1.8
Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

 

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

 

Financial assets that are measured at cost and amortised cost are assessed at the end of each

reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.

 

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the

difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.

 

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when

there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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.

Manutan UK Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
17
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Manutan UK Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
18
1.9
Taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of comprehensive income, 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:

 

 

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.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

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 the Statement of comprehensive income 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.

Manutan UK Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
19
1.12
Leases

Rentals paid under operating leases are charged to the Statement of comprehensive income on a straight line basis over the lease term.

 

Benefits received and receivable as an incentive to sign an operating lease are recognised on a

straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

1.13
Foreign exchange

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. Nonmonetary 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 the Statement of comprehensive income 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 the Statement of comprehensive income within 'other operating income'.

1.14

Catalogue costs

The costs of preparing and issuing mail order catalogues are written off in the financial statements when the catalogues are mailed.

1.15

Interest income

Interest income is recognised in the Statement of comprehensive income using the effective interest method.

1.16

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.

Manutan UK Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
20
2
Critical accounting judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Bad debt provision

The bad debt provision is calculated by reviewing the debtors ledger to identify any known bad debts or questionable debts and then a non-specific provision of the remaining debt greater than 90 days old.

Stock provision

Monthly monitoring of stock lines is carried out in order to manage slow-moving and obsolete stock. Stock provision is based on the stocked quantity of products held compared to sales volumes of products over the previous 36 months.

Investment property

The investment property valuation is reviewed annually by the directors. The property is stated at fair value with changes in the fair value being recognised in the Statement of Comprehensive Income.

3
Turnover and other revenue
2024
2023
£000
£000
Turnover analysed by geographical market
United Kingdom
29,544
29,599
Rest of Europe
760
606
Rest of World
73
256
30,377
30,461
2024
2023
£000
£000
Other revenue
Net rents receivable
10
165
Manutan UK Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
21
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£000
£000
Exchange losses
108
267
Depreciation of owned tangible fixed assets
122
145
Operating lease charges
101
55
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£000
£000
For audit services
Audit of the financial statements of the company
51
48
6
Employees

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

2024
2023
Number
Number
Management
12
11
Administration
11
10
Distribution, sales and marketing
50
55
Total
73
76

Their aggregate remuneration comprised:

2024
2023
£000
£000
Wages and salaries
2,997
3,256
Social security costs
344
352
Pension costs
109
91
3,450
3,699

The directors and key management split their time between Manutan UK Limited and Rapid Racking Limited. As a result £214k (2023: £222k) of payroll costs included above have been recharged to Rapid Racking Limited in the year.

Manutan UK Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
22
7
Directors' remuneration
2024
2023
£000
£000
Remuneration for qualifying services
256
302
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£000
£000
Remuneration for qualifying services
256
302

The emoluments disclosed above include £214k (2023: £128k) of remuneration for directors which was recharged to a fellow subsidiary of the group for services provided.

 

All directors and certain senior employees who have authority and responsibility for planning, directing and controlling activities of the company are considered to be key management personnel. Total remuneration in respect of these individuals is £591k (2023: £749k).

8
Interest payable and similar expenses
2024
2023
£000
£000
Other interest on financial liabilities
3
3
Manutan UK Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
23
9
Taxation
2024
2023
£000
£000
Current tax
UK corporation tax on profits for the current period
39
180
Deferred tax
Origination and reversal of timing differences
(11)
13
Total tax charge
28
193

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

2024
2023
£000
£000
Profit before taxation
114
877
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.92%)
29
192
Tax effect of expenses that are not deductible in determining taxable profit
-
0
5
Permanent capital allowances in excess of depreciation
-
0
(17)
Other timing differences leading to a decrease in taxation
(1)
13
Taxation charge for the year
28
193
10
Dividends
2024
2023
£000
£000
Interim paid
729
627
Manutan UK Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
24
11
Intangible fixed assets
Goodwill
£000
Cost
At 1 October 2023 and 30 September 2024
1,873
Amortisation and impairment
At 1 October 2023 and 30 September 2024
1,873
Carrying amount
At 30 September 2024
-
0
At 30 September 2023
-
0
12
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Computers
Total
£000
£000
£000
£000
Cost
At 1 October 2023
4,219
3,239
375
7,833
Additions
-
0
15
7
22
Disposals
-
0
(12)
(56)
(68)
At 30 September 2024
4,219
3,242
326
7,787
Depreciation and impairment
At 1 October 2023
3,188
2,837
294
6,319
Depreciation charged in the year
-
0
87
35
122
Eliminated in respect of disposals
-
0
(12)
(56)
(68)
At 30 September 2024
3,188
2,912
273
6,373
Carrying amount
At 30 September 2024
1,031
330
53
1,414
At 30 September 2023
1,031
402
81
1,514
13
Investment property
2024
£000
Fair value
At 1 October 2023 and 30 September 2024
2,544

The valuation was made by Vail Williams, on an open market value for existing use basis, on 6 November 2024. The directors have received confirmation from the valuer that this valuation remains appropriate for the balance sheet date.

 

Manutan UK Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
25
14
Stocks
2024
2023
£000
£000
Finished goods and goods for resale
4,007
3,555
15
Debtors
2024
2023
Amounts falling due within one year:
£000
£000
as restated
Trade debtors
6,102
6,032
Corporation tax recoverable
41
-
0
Amounts owed by group undertakings
3,041
3,324
Prepayments and accrued income
865
873
10,049
10,229

Included within amounts owing by group undertakings are intercompany cash pooling accounts that amount to £2,248,042 (2023: £2,946,269). To refer to note 25, prior year restatement,

16
Creditors: amounts falling due within one year
2024
2023
£000
£000
Trade creditors
4,867
3,229
Amounts owed to group undertakings
4,374
2,340
Corporation tax
-
0
129
Other taxation and social security
555
603
Accruals and deferred income
398
940
10,194
7,241

The company is party to a cross guarantee in respect of bank borrowings for itself and fellow group companies.

 

This is by way of a debenture dated 1 February 2011 in favour of HSBC Bank plc, which secures all monies, mortgaging existing and future freehold and leasehold property, all book debts and all assets.

 

The company has a guarantee dated 7 October 2011 in favour of HM Revenue & Customs for £120k.

Manutan UK Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
26
17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£000
£000
Accelerated capital allowances
121
132
2024
Movements in the year:
£000
Liability at 1 October 2023
132
Credit to profit or loss
(11)
Liability at 30 September 2024
121

 

18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£000
£000
Charge to profit or loss in respect of defined contribution schemes
109
91

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£000
£000
Issued and fully paid
Ordinary shares of £1 each
7,000,000
7,000,000
7,000
7,000
20
Non-distributable reserve

Non-distributable reserve includes all prior period movements arising from revaluations of investment properties.

21
Profit and loss reserves

The profit and loss reserve represents profits retained in previous and the current period.

Manutan UK Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
27
22
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£000
£000
Within one year
84
68
Between two and five years
126
30
210
98
23
Related party transactions

As a wholly owned subsidiary undertaking, the company has taken advantage of the exemption available under section 33 of FRS102, and has not disclosed transactions with members of, or investees in the Manutan International Group.

24
Ultimate controlling party

The company is a subsidiary undertaking of Manutan Limited.

 

The smallest and largest group in which the company are consolidated is that headed by Manutan Holding SAS, incorporated in France. The consolidated financial statements of this group are available to the public and may be obtained from Manutan Holding SAS, ZAC du Parc des Tulipes, Avenue du 21eme Siecle, 95500 Gonesse, France.

Manutan UK Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
28
25
Prior period restatement
Changes to the balance sheet
As previously reported
Adjustment
As restated at 30 Sep 2023
£000
£000
£000
Current assets
Debtors due within one year
7,283
2,946
10,229
Bank and cash
5,843
(2,946)
2,897
Notes to reconciliation
Change to presentation of cash pooling

During the period the directors assessed that the cash pooling balance previously recognised as cash at bank should be treated as an amount owed by group undertakings, in compliance with the requirements of FRS102. This required a prior year adjustment to 2023 to ensure a true and fair reflection of the financial statements. The above adjustment did not change the overall net assets or reserves position.

 

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