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REGISTERED NUMBER: 00982615 (England and Wales)







Strategic Report, Report of the Directors and

Audited Financial Statements

for the Year Ended 31 December 2024

for

Mavala (U.K.) Limited

Mavala (U.K.) Limited (Registered number: 00982615)






Contents of the Financial Statements
for the Year Ended 31 December 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 10

Statement of Financial Position 11

Statement of Changes in Equity 12

Statement of Cash Flows 13

Notes to the Statement of Cash Flows 14

Notes to the Financial Statements 16


Mavala (U.K.) Limited

Company Information
for the Year Ended 31 December 2024







DIRECTORS: H Maute
J Hodge



REGISTERED OFFICE: Beechey House
87 Church Street
Crowthorne
Berkshire
RG45 7AW



BUSINESS ADDRESS: 16 Morewood Close
London Road
Sevenoaks
Kent
TN13 2HY



REGISTERED NUMBER: 00982615 (England and Wales)



SENIOR STATUTORY AUDITOR: Yvonne Miles FCCA



AUDITORS: PKB Accountants Limited
Chartered Certified Accountants
Statutory Auditor
Beechey House
87 Church Street
Crowthorne
Berkshire
RG45 7AW

Mavala (U.K.) Limited (Registered number: 00982615)

Strategic Report
for the Year Ended 31 December 2024

The directors present their strategic report for the year ended 31 December 2024.

REVIEW OF BUSINESS
Mavala (UK) Ltd experienced a challenging financial year in 2024, culminating in a significant loss. This decline in performance was driven by a combination of lost sales across major accounts, underperformance in several sales territories, and increased operational costs.

Sales Performance
Several key retail and distribution partnerships were disrupted during the year, resulting in a sharp drop in revenue:
- Well+ (Feb-Sept 2024) - Orders ceased, resulting in a £40,000 loss.
- Day Lewis - A two-month gap in orders led to a £44,000 loss.
- The Hut Group (Mar-Sept 2024) - Order stoppages contributed to a £37,000 loss.
- Nail Polish Direct (Sephora) - Performance fell short of expectations, with a £31,500 loss
- Underperforming Agents in Areas 3 & 8 - Accounted for a combined £32,500 loss.
- Sales to Geneva (Four Marks) - Declined significantly, contributing an additional £115,000 in lost sales.

Contributing Factors to the Loss
In addition to reduced sales, the company faced increased expenditure in key operational areas:
- Recruitment of three new staff members added salary, Employer NIC, and travel-related costs.
- Higher vehicle-related expenses, including insurance.
- Indemnity payments made to sales agents in underperforming regions.

These investments were part of a broader strategic initiative aimed at strengthening the company's long-term position but placed pressure on 2024 profitability.

Organisational Response
In the latter part of 2024, Mavala (UK) Ltd implemented a comprehensive restructuring of its sales force:
- Area 3 - Current and trusted sales agent
- Area 8 - Sales Employee
- Area 6 - Sales Employee
- Area 1 - Sales Employee

These changes have already begun yielding results, as evidenced by a 5.9% increase in turnover as of February 2025 compared to the same period in the previous year.

Product Development and Strategic Initiatives
Despite the financial setback, 2024 was a significant year for innovation:
The company expanded its product portfolio with a new makeup range, including serum foundations, concealers, and the well-received Lip Shine lipsticks, enhancing brand visibility and appeal.
A new international trainer was recruited to modernise training and product materials, aligning them with best practices and preparing the business for future growth.

Looking ahead, Mavala globally is set to undergo a full rebrand in 2025, coinciding with the launch of the much-anticipated Double-Brow product in April. This initiative reflects Mavala's commitment to innovation while preserving the company's family heritage and values. The rebrand aims to attract a younger, more diverse audience and revitalise the brand's market presence.

Mavala (U.K.) Limited (Registered number: 00982615)

Strategic Report
for the Year Ended 31 December 2024


Furthermore, the planned launch of a direct-to-consumer e-commerce platform will allow customers to purchase at the recommended retail price (RRP), improving profit margins and diversifying sales channels.
Outlook

Although 2024 presented considerable challenges, the actions taken-particularly in sales restructuring, product innovation, and digital expansion-provide a strong foundation for recovery and future growth. With early positive indicators already visible in 2025, Mavala (UK) Ltd is confident in its strategic direction and long-term sustainability.

The company will continue to monitor its financial position carefully and remains committed to implementing strategies that support growth, profitability, and long-term value creation.

PRINCIPAL RISKS AND UNCERTAINTIES
The principle risks to the company is retaining key personnel and the competitiveness of the product range in a consumer driven market. It is essential to have experienced and knowledgeable employees to support the future goals and growth of the business.

KEY PERFORMANCE INDICATORS
The directors consider that the key performance indicators are: orders, revenue, gross profit, delivery capacity, cost base, debtors, creditors and cash.

FINANCIAL KEY PERFORMANCE INDICATORS
The gross margin percentage for 2024 is 58.61% compared to 2023 - 63.70% .

ON BEHALF OF THE BOARD:





J Hodge - Director


5 June 2025

Mavala (U.K.) Limited (Registered number: 00982615)

Report of the Directors
for the Year Ended 31 December 2024

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of marketing cosmetic products.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

H Maute
J Hodge

GOING CONCERN
The company has prepared budgets and forecasts that cover the period of 12 months from the date of the financial statements being authorised for issue in order to assess going concern It is anticipated that the company's level of activity will remain fairly constant over that period with similar results being attained in line with the current trading period. The company has also sought comfort from it parent company that they will provide financial support should it be required. At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors are confident that the Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and consequently have prepared the financial statements on a going concern basis.

DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements 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.


Mavala (U.K.) Limited (Registered number: 00982615)

Report of the Directors
for the Year Ended 31 December 2024

DIRECTORS' RESPONSIBILITIES STATEMENT - continued
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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of PKB Accountants Limited as auditors of the company is to be be proposed at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





J Hodge - Director


5 June 2025

Report of the Independent Auditors to the Members of
Mavala (U.K.) Limited

Opinion
We have audited the financial statements of Mavala (U.K.) Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss 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 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.

Report of the Independent Auditors to the Members of
Mavala (U.K.) Limited


Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors 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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
In light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Directors.

Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on pages four and five, 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 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.

Report of the Independent Auditors to the Members of
Mavala (U.K.) Limited


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 a Report of the Auditors 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 irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

. We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those that relate to the Health and Safety Regulations, the reporting framework FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", Companies Act 2006, Bribery Act 2010, Money Laundering regulations and relevant tax compliance regulations in the United Kingdom.
. Other indirect laws and regulations that have an impact on the financial statements are the compliance with relevant employment law, health and safety regulations and the UK General Data Protection Regulation (UK GDPR).
. We understood how Mavala UK Limited is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through the review of the following documentation or completion of the following procedures:
. Review of accounting policies and completion of a disclosure checklist to assess compliance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and Company law requirements;
. Review of any relevant correspondence with local tax authorities; and
. Review of any relevant correspondence received from regulatory bodies
. We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur by holding a discussion within the audit team which included identification of related parties, understanding the company's business, the control environment and assessing the inherent risk for relevant assertions at the significant account level. We also held discussions with management and those charged with governance to gain an understanding of those areas of the financial statements which are susceptible to fraud, as identified by management. Following these procedures, we identified a risk of management override of control and risk of inappropriate revenue recognition. We gained an understanding of the entity level of controls and policies that the company applies.
. Based on this understanding we designed our audit procedures to identify noncompliance with such laws and regulations. Our procedures involved testing of journal entries, with focus on journals indicating large or unusual transactions, or meeting our defined risk criteria based on our understanding of the business, reviewing accounting estimates for evidence of management bias and enquiries of senior members of the management team regarding their knowledge of any instances of non-compliance with laws and regulations that could impact the financial statements.

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 Report of the Auditors.

Report of the Independent Auditors to the Members of
Mavala (U.K.) Limited


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 a Report of the Auditors 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.




Yvonne Miles FCCA (Senior Statutory Auditor)
for and on behalf of PKB Accountants Limited
Chartered Certified Accountants
Statutory Auditor
Beechey House
87 Church Street
Crowthorne
Berkshire
RG45 7AW

5 June 2025

Mavala (U.K.) Limited (Registered number: 00982615)

Statement of Comprehensive Income
for the Year Ended 31 December 2024

31.12.24 31.12.23
Notes £    £    £    £   

TURNOVER 2,455,293 2,669,988

Cost of sales 1,016,336 969,257
GROSS PROFIT 1,438,957 1,700,731

Distribution costs 1,135,707 1,143,085
Administrative expenses 541,608 531,699
1,677,315 1,674,784
OPERATING (LOSS)/PROFIT 4 (238,358 ) 25,947

Interest receivable and similar income 2,157 1,848
(236,201 ) 27,795

Interest payable and similar expenses 5 1,176 -
(LOSS)/PROFIT BEFORE TAXATION (237,377 ) 27,795

Tax on (loss)/profit 6 (12,784 ) 31,511
LOSS FOR THE FINANCIAL YEAR (224,593 ) (3,716 )

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

(224,593

)

(3,716

)

Mavala (U.K.) Limited (Registered number: 00982615)

Statement of Financial Position
31 December 2024

31.12.24 31.12.23
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 7 15,760 17,850
Tangible assets 8 475,515 477,787
491,275 495,637

CURRENT ASSETS
Stocks 9 660,986 664,524
Debtors 10 400,029 520,009
Cash at bank and in hand 159,397 273,448
1,220,412 1,457,981
CREDITORS
Amounts falling due within one year 11 1,144,821 1,177,978
NET CURRENT ASSETS 75,591 280,003
TOTAL ASSETS LESS CURRENT
LIABILITIES

566,866

775,640

CREDITORS
Amounts falling due after more than
one year

12

(11,423

)

-

PROVISIONS FOR LIABILITIES 15 (55,583 ) (51,187 )
NET ASSETS 499,860 724,453

CAPITAL AND RESERVES
Called up share capital 16 600,000 600,000
Retained earnings 17 (100,140 ) 124,453
SHAREHOLDERS' FUNDS 499,860 724,453

The financial statements were approved by the Board of Directors and authorised for issue on 5 June 2025 and were signed on its behalf by:





J Hodge - Director


Mavala (U.K.) Limited (Registered number: 00982615)

Statement of Changes in Equity
for the Year Ended 31 December 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2023 600,000 128,169 728,169

Changes in equity
Total comprehensive income - (3,716 ) (3,716 )
Balance at 31 December 2023 600,000 124,453 724,453

Changes in equity
Total comprehensive income - (224,593 ) (224,593 )
Balance at 31 December 2024 600,000 (100,140 ) 499,860

Mavala (U.K.) Limited (Registered number: 00982615)

Statement of Cash Flows
for the Year Ended 31 December 2024

31.12.24 31.12.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (84,010 ) (44,147 )
Interest element of hire purchase
payments paid

(1,176

)

-
Tax paid (16,989 ) (13,776 )
Net cash from operating activities (102,175 ) (57,923 )

Cash flows from investing activities
Purchase of intangible fixed assets - (4,335 )
Purchase of tangible fixed assets (6,962 ) (12,644 )
Interest received 2,102 1,848
Net cash from investing activities (4,860 ) (15,131 )

Cash flows from financing activities
Capital repayments in year (5,470 ) -
Amount introduced by directors - 153
Amount withdrawn by directors (1,546 ) -
Net cash from financing activities (7,016 ) 153

Decrease in cash and cash equivalents (114,051 ) (72,901 )
Cash and cash equivalents at beginning
of year

2

273,448

346,349

Cash and cash equivalents at end of
year

2

159,397

273,448

Mavala (U.K.) Limited (Registered number: 00982615)

Notes to the Statement of Cash Flows
for the Year Ended 31 December 2024

1. RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.24 31.12.23
£    £   
(Loss)/profit before taxation (237,377 ) 27,795
Depreciation charges 32,321 27,270
Finance costs 1,176 -
Finance income (2,157 ) (1,848 )
(206,037 ) 53,217
Decrease/(increase) in stocks 3,538 (2,497 )
Decrease/(increase) in trade and other debtors 138,558 (21,674 )
Decrease in trade and other creditors (20,069 ) (73,193 )
Cash generated from operations (84,010 ) (44,147 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024
31.12.24 1.1.24
£    £   
Cash and cash equivalents 159,397 273,448
Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 273,448 346,349


Mavala (U.K.) Limited (Registered number: 00982615)

Notes to the Statement of Cash Flows
for the Year Ended 31 December 2024

3. ANALYSIS OF CHANGES IN NET FUNDS

Other
non-cash
At 1.1.24 Cash flow changes At 31.12.24
£    £    £    £   
Net cash
Cash at bank
and in hand 273,448 (114,051 ) 159,397
273,448 (114,051 ) 159,397
Debt
Finance leases - 5,470 (20,995 ) (15,525 )
- 5,470 (20,995 ) (15,525 )
Total 273,448 (108,581 ) (20,995 ) 143,872

Mavala (U.K.) Limited (Registered number: 00982615)

Notes to the Financial Statements
for the Year Ended 31 December 2024

1. STATUTORY INFORMATION

Mavala (U.K.) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going Concern
The company has prepared budgets and forecasts that cover the period of 12 months from the date of the financial statements being authorised for issue in order to assess going concern It is anticipated that the company's level of activity will remain fairly constant over that period with similar results being attained in line with the current trading period. The company has also sought comfort from it parent company that they will provide financial support should it be required. At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors are confident that the Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and consequently have prepared the financial statements on a going concern basis.

Significant judgements and estimates
In the application of the Company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 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 period.

a) Critical judgements in applying the entity's accounting policies

(b) Critical accounting estimates and assumptions

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

Mavala (U.K.) Limited (Registered number: 00982615)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2024

2. ACCOUNTING POLICIES - continued

(i) Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates based on physical condition and economic utilisation of the assets. See note 6 for the carrying amount of the assets and the accounting policies note Tangible Fixed Assets for the useful economic lives of each class of asset.

(ii) Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 10 for the net carrying amount of the debtors.

(iii) Accruals

The company makes an estimate for potential sums payable to Agents in accordance with the EU Directive on Agents compensation. The provision is amended anually to take account of changes in the year.

Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax.

Revenue from the sale of goods is recognised when :-

The Company has transferred to the buyer the significant risks and rewards of ownership of the goods
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 economic benefits associated with the transaction will flow to the Company
The costs incurred or to be incurred in respect of the transaction can be measured reliably.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of ten years.

Mavala (U.K.) Limited (Registered number: 00982615)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2024

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - Straight line over 20 years
Fixtures and fittings - 33% on cost, 20% on cost and 15% on cost
Plant and Machinery - 20% on cost
Motor vehicles - 25% on reducing balance

Land and buildings include a freehold factory. Land and buildings are carried at their revalued amounts, being fair value at the date of valuation less subsequent depreciation and impairment losses. Revaluations are performed by professional qualified valuers with sufficient regularity to ensure that the carrying amounts do not differ materially from those that would be determined using fair values at the end of each reporting period. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the assets and the net amount is restated to the revalued amount.

Any revaluation increase or decrease in the carrying amount of land and buildings is recognised in other comprehensive income and included in a revaluation reserve. Any difference between depreciation on the carrying amount as opposed to the cost is transferred from the revaluation reserve to retained earnings.

All other assets are stated at cost less accumulated depreciation and impairment losses.

At each balance sheet date, the Company reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. The Impairment loss is recognised as an expense immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined ( net of depreciation ) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately.

Mavala (U.K.) Limited (Registered number: 00982615)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2024

2. ACCOUNTING POLICIES - continued

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs, which comprise direct production costs, are based on the first-in-first-out valuation basis. Overheads are charged to profit and loss as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of stocks recognised as an expense in the period in which the reversal occurs.

Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.

Current Tax
The tax currently payable is based on taxable profit for the year. Taxable profits differs from net profit as reported in the profit and loss account as it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting date.

Deferred Tax
Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.

Foreign currencies
Transactions in currencies other than the functional currency of the Company are recorded at the rate of exchange on the date the transaction occurred. Monetary items denominated in other currencies are translated at the rate prevailing at the end of the reporting period. All differences are taken to the statement of comprehensive income. Non-monetary items that are measured at historic cost in a foreign currency are not retranslated.

Mavala (U.K.) Limited (Registered number: 00982615)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2024

2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to the profit and loss over the relevant period. The capital element of the future payments is treated as a liability.

Other leases that do not transfer substantially all the risks and rewards of ownership of the leased assets are classified as operating leases.

Pension costs and other post-retirement benefits
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 the income statement 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.

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.

Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and depositis held at call with banks.

Finance costs
Finance costs are charged to the Income Statement 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.

Mavala (U.K.) Limited (Registered number: 00982615)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
The company has elected to apply the provisions of Section 11' Basic Financial Instruments' and Section 12 ' Other Financial Instruments Issues ' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or the realise the asset and settle the liability simultaneously.

Loans and Receivables
Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and other receivables are measured at amortised cost using the effective interest method,less any impairment.

Interest is recognised by applying the effective interest rate, except for short term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Trade debtors with no stated interest rate and receivable within one year are recorded at a transaction price. Any losses arising from impairment are recognised in the income statement in any other administrative expenses.

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. The impairment loss is recognised in the income statement.

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 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.

Financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies are that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.


Mavala (U.K.) Limited (Registered number: 00982615)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2024

2. ACCOUNTING POLICIES - continued
Debt instruments are subsequently carried at amortised costs, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. if not, they are presented as non-current liabilities. Trade payables with no stated interest rate or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in administrative expenses.

Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

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

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

3. EMPLOYEES AND DIRECTORS
31.12.24 31.12.23
£    £   
Wages and salaries 555,320 493,588
Social security costs 60,127 49,230
Other pension costs 39,207 37,043
654,654 579,861

The average number of employees during the year was as follows:
31.12.24 31.12.23

Director 1 1
Office and Management 6 5
Selling and Distribution 10 9
17 15

31.12.24 31.12.23
£    £   
Directors' remuneration 93,823 109,557
Directors' pension contributions to money purchase schemes 9,090 8,732

Mavala (U.K.) Limited (Registered number: 00982615)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2024

4. OPERATING (LOSS)/PROFIT

The operating loss (2023 - operating profit) is stated after charging:

31.12.24 31.12.23
£    £   
Depreciation - owned assets 27,430 25,180
Depreciation - assets on hire purchase contracts 2,799 -
Computer software amortisation 2,090 2,090
Auditors' remuneration 15,355 17,800
Auditors' remuneration
non-audit services 5,419 6,513
Foreign exchange differences 405 185

5. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.24 31.12.23
£    £   
Hire purchase interest 1,176 -

6. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss for the year was as follows:
31.12.24 31.12.23
£    £   
Current tax:
UK corporation tax (16,989 ) 17,193
Prior year under/(over)
tax provision (191 ) -
Total current tax (17,180 ) 17,193

Deferred tax 4,396 14,318
Tax on (loss)/profit (12,784 ) 31,511

Mavala (U.K.) Limited (Registered number: 00982615)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2024

7. INTANGIBLE FIXED ASSETS
Computer
software
£   
COST
At 1 January 2024
and 31 December 2024 20,900
AMORTISATION
At 1 January 2024 3,050
Amortisation for year 2,090
At 31 December 2024 5,140
NET BOOK VALUE
At 31 December 2024 15,760
At 31 December 2023 17,850

8. TANGIBLE FIXED ASSETS
Fixtures
Freehold and Plant and
property fittings Machinery
£    £    £   
COST
At 1 January 2024 601,785 26,141 6,749
Additions - 4,010 -
At 31 December 2024 601,785 30,151 6,749
DEPRECIATION
At 1 January 2024 136,788 19,215 6,749
Charge for year 21,948 2,521 -
At 31 December 2024 158,736 21,736 6,749
NET BOOK VALUE
At 31 December 2024 443,049 8,415 -
At 31 December 2023 464,997 6,926 -

Mavala (U.K.) Limited (Registered number: 00982615)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2024

8. TANGIBLE FIXED ASSETS - continued

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 January 2024 18,302 6,065 659,042
Additions 20,995 2,952 27,957
At 31 December 2024 39,297 9,017 686,999
DEPRECIATION
At 1 January 2024 16,384 2,119 181,255
Charge for year 3,297 2,463 30,229
At 31 December 2024 19,681 4,582 211,484
NET BOOK VALUE
At 31 December 2024 19,616 4,435 475,515
At 31 December 2023 1,918 3,946 477,787

Included in cost of land and buildings is freehold land of £ 162,825 (2023 - £ 162,825 ) which is not depreciated.

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
Additions 20,995
At 31 December 2024 20,995
DEPRECIATION
Charge for year 2,799
At 31 December 2024 2,799
NET BOOK VALUE
At 31 December 2024 18,196

9. STOCKS
31.12.24 31.12.23
£    £   
Finished goods 660,986 664,524

Mavala (U.K.) Limited (Registered number: 00982615)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2024

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.24 31.12.23
£    £   
Trade debtors 331,531 454,042
Other debtors 2,590 1,783
Directors' current accounts 1,590 44
Tax 17,032 -
Prepayments 47,286 60,308
Accrued income - 3,832
400,029 520,009

Included in trade debtors is £61,512 owed by the parent company Mavala SA.

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.24 31.12.23
£    £   
Hire purchase contracts (see note 13) 4,102 -
Trade creditors 828,301 752,911
Tax - 17,193
Social security and other taxes - 24,950
VAT 86,926 84,912
Other creditors 6,532 5,700
Accruals 218,960 292,312
1,144,821 1,177,978

Included within trade creditors due within one year is £764,425 owed to the parent company Mavala SA.

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31.12.24 31.12.23
£    £   
Hire purchase contracts (see note 13) 11,423 -

Mavala (U.K.) Limited (Registered number: 00982615)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2024

13. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
31.12.24 31.12.23
£    £   
Gross obligations repayable:
Within one year 5,470 -
Between one and five years 12,764 -
18,234 -

Finance charges repayable:
Within one year 1,368 -
Between one and five years 1,341 -
2,709 -

Net obligations repayable:
Within one year 4,102 -
Between one and five years 11,423 -
15,525 -

Non-cancellable operating leases
31.12.24 31.12.23
£    £   
Within one year 93,913 88,174
Between one and five years 80,330 156,085
174,243 244,259

Leasing arrangements represent rentals payable by the company for rent and certain items of machinery. The leases do not include any purchase options at the end of the rental period. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Mavala (U.K.) Limited (Registered number: 00982615)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2024

14. SECURED DEBTS

The following secured debts are included within creditors:

31.12.24 31.12.23
£    £   
Hire purchase contracts 15,525 -

The Hire Purchase liabilities are secured on the assets to which they relate.

15. PROVISIONS FOR LIABILITIES
31.12.24 31.12.23
£    £   
Deferred tax
Accelerated capital allowances 55,583 51,187

Deferred
tax
£   
Balance at 1 January 2024 51,187
Accelerated capital allowances 4,396
Balance at 31 December 2024 55,583

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.24 31.12.23
value: £    £   
600,000 Ordinary £1 600,000 600,000

17. RESERVES
Retained
earnings
£   

At 1 January 2024 124,453
Deficit for the year (224,593 )
At 31 December 2024 (100,140 )

Mavala (U.K.) Limited (Registered number: 00982615)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2024

18. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost and charge represents contributions payable by the company to the fund and amounted to £39,206 (2024 - £37,043). At the year end £6,165 was payable.

19. CONTINGENT LIABILITIES

The Commercial Agents ( Council Directive ) Regulations 1993 state that where an Agent terminates his/her contract or has it terminated, on the grounds of ill health, old age or infirmity, he/she is entitled to compensation of one year's average commission. Taking into account the ages and length of service of their agents, the Company has identified a potential liability of approximately £184,872 which is recognised in other creditors.

20. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

At the beginning of the year a director owed £44 to the company. During the year a director withdraw £2,846 and repaid £1,300. At the balance sheet date £1,590 was owed by a director. (2023: £44 was owed by a director).

21. ULTIMATE CONTROLLING PARTY

Controlling party
The Ultimate Parent undertaking of this company is Mavala SA, which is incorporated in Switzerland. The directors consider that the controlling related parties of the Company are the directors and management of the ultimate parent undertaking by virtue of their majority shareholding.


Its registered office and trading address is as follows:

2 Rue Antoine-Jolviet
1227 Carouge/Geneva
Switzerland

22. KEY MANAGEMENT PERSONNEL

The total remuneration to directors and other key management in the year to 31 December 2024 totalled £102,913 (2023 : £118,289).