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Registered number: 09350386










MO FREEDOM LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

 
MO FREEDOM LIMITED
 
 
COMPANY INFORMATION


Director
M Odabash 




Registered number
09350386



Registered office
22 Bruton Street

London

W1J 6QE




Independent auditors
Sumer Auditco Limited
Statutory Auditors

14th Floor

33 Cavendish Square

London

W1G 0PW





 
MO FREEDOM LIMITED
 

CONTENTS



Page
Group strategic report
 
1
Director's report
 
2 - 3
Independent auditors' report
 
4 - 7
Consolidated statement of comprehensive income
 
8
Consolidated balance sheet
 
9
Company balance sheet
 
10
Consolidated statement of changes in equity
 
11
Company statement of changes in equity
 
12
Consolidated statement of cash flows
 
13
Notes to the financial statements
 
14 - 30


 
MO FREEDOM LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

Introduction
 
The director presents her strategic report for the year ended 31 August 2024.

Business review
 
The principal activity of the Group continued to be that of the design, manufacture and distribution of women’s holiday wear. There have been no major changes in the group’s core activities in the year under review.
Sales were lower compared to 2023 due to the impact of inflation as well as the Ukraine war and conflict in the Middle East and we expect that this will continue in 2025.

Principal risks and uncertainties
 
The director is constantly reviewing market conditions and competitors’ activities in order to remain relevant and maintaining trade with existing customers and engaging new customers across various activities of the Group.
Liquidity Risk
The Group has a strong operating cash inflow and manages its cash requirements to ensure that the Group has sufficient liquid resources to meet the operating needs of the business.
Credit Risk
Trade debtors are reviewed on a regular basis and provisions are made for doubtful debts when necessary.
Foreign Exchange Risk
Foreign exchange risks arise primarily on transactions that are denominated in USD and EUR. In managing its exposure regarding the fluctuation in foreign currency exchange rates, the Group maintains USD and Euro bank accounts to offset the receipts and payments as far as possible and to minimise the exchange impact.

Financial key performance indicators
 
The key financial performance indicators of the Group are turnover, gross profit and operating profit. A brief
analysis of these is shown below:
                                                                       
2024                    2023               Variance
Turnover                                                    £13,062,050           £15,235,860            -14%
Gross Profit                                               £7,633,270             £8,020,286               -5% 
Operating profit                                          £911,549                £689,758                  32%
 


This report was approved by the board on 28 August 2025 and signed on its behalf.



................................................
M Odabash
Director

Page 1

 
MO FREEDOM LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

The director presents her report and the financial statements for the year ended 31 August 2024.

Director's responsibilities statement

The director is responsible for preparing the Group strategic report, the Director's report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the director is required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activities

The principal activity of the Company is that of a management company for Avalon Fashions Group. The principal activity of the Group continued to be that of designing, manufacturing and selling beachwear.

Results and dividends

The profit for the year, after taxation and minority interests, amounted to £593,994 (2023 - £481,932).

Dividends of £185,722 (2023: £654,538) were paid during the year. The director does not propose a final dividend.

Director

The director who served during the year was:

M Odabash 

Future developments

The director has indicated that the group will continue to trade in beachwear.

Page 2

 
MO FREEDOM LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

Matters covered in the Group strategic report

The following information has been included in the strategic report:
- A business review
- Principal risks and uncertainties
- Financial and other key performance indicators

Disclosure of information to auditors

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

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

Going concern

The director has, at the time of approving the financial statements, a reasonable expectation that the Group and the Company have adequate resources to continue in operational existence for a period of at least 12 months from the state of approval of these financial statements. Thus, the going concern basis of accounting has been adopted in preparing the financial statements.

Auditors

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

This report was approved by the board on 28 August 2025 and signed on its behalf.
 





................................................
M Odabash
Director

Page 3

 
MO FREEDOM LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MO FREEDOM LIMITED
 

Opinion


We have audited the financial statements of MO Freedom Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 August 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 August 2024 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


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


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


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


Page 4

 
MO FREEDOM LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MO FREEDOM LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Director's report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Director's report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Director's responsibilities statement set out on page 2, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the director is responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the Group or the parent Company or to cease operations, or has no realistic alternative but to do so.


Page 5

 
MO FREEDOM LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MO FREEDOM LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

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


Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Based on our understanding of the Group and industry, we identified and assessed the risks of material misstatements, including fraud and non-compliance with laws and regulations that could be expected to have a material impact on the financial statements. We also enquired of management and those charged with governance about their own identification and assessment of the risks of irregularities. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
We obtained an understanding of the legal and regulatory frameworks that the Group and the parent company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, UK financial reporting standards and Tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Group’s and parent company's ability to operate or to avoid a material penalty.
As a result of performing the above, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to revenue recognition. We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls).
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
 


Page 6

 
MO FREEDOM LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MO FREEDOM LIMITED (CONTINUED)


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


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Abdultaiyab Pisavadi BSc FCA (Senior statutory auditor)
  
for and on behalf of
Sumer Auditco Limited
 
Statutory Auditors
  
14th Floor
33 Cavendish Square
London
W1G 0PW

28 August 2025
Page 7

 
MO FREEDOM LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024

2024
2023
Note
£
£

  

Turnover
 4 
13,062,050
15,235,860

Cost of sales
  
(5,428,780)
(7,215,574)

Gross profit
  
7,633,270
8,020,286

Distribution costs
  
(2,465,263)
(2,766,054)

Administrative expenses
  
(4,282,731)
(4,621,343)

Other operating income
 5 
26,273
56,869

Operating profit
 6 
911,549
689,758

Interest receivable and similar income
 10 
51,925
15,160

Interest payable and similar expenses
 11 
(256)
(6,325)

Profit before taxation
  
963,218
698,593

Tax on profit
 12 
(261,706)
(182,768)

Profit for the financial year
  
701,512
515,825

  

Currency translation differences
  
(65,862)
(103,108)

Total comprehensive income for the year
  
635,650
412,717

Profit for the year attributable to:
  

Non-controlling interests
  
107,518
33,893

Owners of the parent Company
  
593,994
481,932

  
701,512
515,825

Total comprehensive income for the year attributable to:
  

Non-controlling interest
  
107,518
33,893

Owners of the parent Company
  
528,132
378,824

  
635,650
412,717

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

Page 8

 
MO FREEDOM LIMITED
REGISTERED NUMBER: 09350386

CONSOLIDATED BALANCE SHEET
AS AT 31 AUGUST 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 15 
26,504
79,518

Tangible assets
 16 
75,490
74,277

  
101,994
153,795

Current assets
  

Stocks
 18 
1,456,974
1,821,670

Debtors: amounts falling due after more than one year
 19 
57,958
57,958

Debtors: amounts falling due within one year
 19 
2,240,557
2,521,331

Cash at bank and in hand
 20 
5,865,488
5,238,102

  
9,620,977
9,639,061

Creditors: amounts falling due within one year
 21 
(3,557,831)
(4,077,644)

Net current assets
  
 
 
6,063,146
 
 
5,561,417

Total assets less current liabilities
  
6,165,140
5,715,212

Net assets
  
6,165,140
5,715,212


Capital and reserves
  

Called up share capital 
 22 
1
1

Profit and loss account
 23 
3,637,464
3,268,812

Equity attributable to owners of the parent Company
  
3,637,465
3,268,813

Non-controlling interests
  
2,527,675
2,446,399

  
6,165,140
5,715,212


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 August 2025.




................................................
M Odabash
Director

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

Page 9

 
MO FREEDOM LIMITED
REGISTERED NUMBER: 09350386

COMPANY BALANCE SHEET
AS AT 31 AUGUST 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 17 
1,193,174
1,193,174

  
1,193,174
1,193,174

Current assets
  

Debtors: amounts falling due within one year
 19 
102,624
96,087

Cash at bank and in hand
 20 
91,697
210,923

  
194,321
307,010

Creditors: amounts falling due within one year
 21 
(531,711)
(705,152)

Net current liabilities
  
 
 
(337,390)
 
 
(398,142)

Total assets less current liabilities
  
855,784
795,032

  

  

Net assets
  
855,784
795,032


Capital and reserves
  

Called up share capital 
 22 
1
1

Profit and loss account carried forward
  
855,783
795,031

Shareholders' funds
  
855,784
795,032


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 August 2025.



................................................
M Odabash
Director

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

Page 10

 
MO FREEDOM LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity

£
£
£
£
£


At 1 September 2022
1
3,585,565
3,585,566
2,371,467
5,957,033



Profit for the year
-
481,932
481,932
33,893
515,825

Currency translation differences
-
(144,147)
(144,147)
41,039
(103,108)

Dividends: Equity capital
-
(654,538)
(654,538)
-
(654,538)



At 1 September 2023
1
3,268,812
3,268,813
2,446,399
5,715,212



Profit for the year
-
593,994
593,994
107,518
701,512

Currency translation differences
-
(39,620)
(39,620)
(26,242)
(65,862)

Dividends: Equity capital
-
(185,722)
(185,722)
-
(185,722)


At 31 August 2024
1
3,637,464
3,637,465
2,527,675
6,165,140


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

Page 11

 
MO FREEDOM LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 September 2022
1
1,061,091
1,061,092



Profit for the year
-
388,478
388,478

Dividends: Equity capital
-
(654,538)
(654,538)



At 1 September 2023
1
795,031
795,032



Profit for the year
-
246,474
246,474

Dividends: Equity capital
-
(185,722)
(185,722)


At 31 August 2024
1
855,783
855,784


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

Page 12

 
MO FREEDOM LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024

2024
2023
£
£

Profit for the financial year
701,512
515,825

Adjustments for:

Amortisation of intangible assets
53,014
53,014

Depreciation of tangible assets
32,174
68,932

Interest paid
256
6,325

Interest received
(51,925)
(15,160)

Taxation charge
261,706
182,768

Decrease/(increase) in stocks
364,696
(301,674)

Decrease/(increase) in debtors
178,714
(283,037)

(Decrease)/increase in creditors
(387,026)
869,595

Corporation tax paid
(292,433)
(271,542)

Net cash generated from operating activities

860,688
825,046


Cash flows from investing activities

Purchase of tangible fixed assets
(33,387)
(76,906)

Interest received
51,925
15,160

Net cash from investing activities

18,538
(61,746)

Cash flows from financing activities

Dividends paid
(185,722)
(654,538)

Interest paid
(256)
(6,325)

Net cash used in financing activities
(185,978)
(660,863)

Net increase in cash and cash equivalents
693,248
102,437

Cash and cash equivalents at beginning of year
5,238,102
5,238,773

Foreign exchange gains and losses
(65,862)
(103,108)

Cash and cash equivalents at the end of year
5,865,488
5,238,102


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
5,865,488
5,238,102

5,865,488
5,238,102


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

Page 13

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

1.


General information

The company is a private company limited by shares, and is incorporated in England and Wales. The address of its registered office is 22 Bruton Street, London W1J 6QE.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

Parent company disclosure exemptions
In preparing the separate financial statements of the parent company, advantage has been taken of the following disclosure exemptions available to qualifying entities:
• Only one reconciliation of the number of shares outstanding at the beginning and end of the period
  has been presented as the reconciliations for the group and the parent company would be identical;
• No cash flow statement or net debt reconciliation has been presented for the parent company;
• Disclosures in respect of the parent company’s financial instruments have not been presented as
  equivalent disclosures have been provided in respect of the group as a whole; and
• No disclosure has been given for the aggregate remuneration of the key management personnel of
  the parent company as their remuneration is included in the totals for the group as a whole.

The following principal accounting policies have been applied:

  
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The director has, at the time of approving the financial statements, a reasonable expectation that the Group and the Company have adequate resources to continue in operational existence for a period of at least 12 months from the state of approval of these financial statements. Thus, the going concern basis of accounting has been adopted in preparing the financial statements.

Page 14

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.4

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and the turnover can be reliably measured. Turnover 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 turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of turnover can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of turnover can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Page 15

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.6

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Short-term leasehold property
-
Straight line over 10 years
Plant and machinery
-
20%-33% straight line
Fixtures and fittings
-
20%-33% Straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.7

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.8

Stocks

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

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

  
2.9

Debtors

Debtors are initially measured at the transaction price and are measured subsequently carried at
amortised cost using the effective interest method, less any impairment. Debtors classified as due
within one year are not amortised.

 
2.10

Cash and cash equivalents

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

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

Page 16

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.11

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

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

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due within the operating cycle fall into this category of financial instruments.

Basic financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

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

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

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

Derecognition of financial instruments

Derecognition of financial assets

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

Page 17

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)


2.11
Financial instruments (continued)

Derecognition of financial liabilities

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

 
2.12

Creditors

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

 
2.13

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP. Monetary amounts in these financial
statements are rounded to the nearest £.

Transactions and balances

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

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

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

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.14

Finance costs

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

 
2.15

Dividends

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

Page 18

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.16

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.17

Pensions

Defined contribution pension plan

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

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

 
2.18

Interest income

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

 
2.19

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.



3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The group makes estimates and assumptions concerning the future. Actual results may differ from these estimates. 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.
Stock provision
In line with other retailers stock is physically counted at each location at the year end. The provision for old stock is based on prior years’ experience of saleability and profitability of old stock. A provision of £2,634,431 (2023: £2,718,387) has been made for the current year stock, for prior year stock and for stock older than two years. These provisions are consistent with prior years.

Page 19

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Beachwear wholesale
8,352,667
9,735,871

Beachwear retail
4,709,383
5,499,989

13,062,050
15,235,860


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
5,034,539
5,453,331

Rest of the world
8,027,511
9,782,529

13,062,050
15,235,860



5.


Other operating income

2024
2023
£
£

Royalty receivable
26,273
56,869



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
93,625
198,734

Other operating lease rentals
505,243
505,080

Page 20

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

7.


Auditors' remuneration

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


2024
2023
£
£

Audit of these financial statements
8,500
8,500

Audit of financial statements of subsidiaires
29,500
22,500


8.


Employees

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


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Wages and salaries
2,150,948
2,134,543
36,000
36,000

Social security costs
251,302
266,842
3,712
3,835

Cost of defined contribution scheme
43,011
34,658
-
-

2,445,261
2,436,043
39,712
39,835


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


        2024
        2023
            No.
            No.







Directors
2
2



Production
29
31



Administration
28
28

59
61


9.


Director's remuneration

2024
2023
£
£

Director's emoluments
36,000
36,000


During the year retirement benefits were accruing to no directors (2023 -£nil) in respect of defined contribution pension schemes.

Page 21

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

10.


Interest receivable

2024
2023
£
£


Other interest receivable
51,925
15,160


11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
-
571

Other loan interest payable
-
4,034

Other interest payable
256
1,720

256
6,325


12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
225,012
147,811


Foreign tax on income for the year
36,694
34,957

Total current tax
261,706
182,768
Page 22

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 21.5%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
963,218
698,593


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 21.5%)
240,805
150,197

Effects of:


Non-tax deductible amortisation of goodwill and impairment
13,254
11,398

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,394
438

Capital allowances for year in excess of depreciation
3,191
(386)

Other timing differences
(5,073)
(5,332)

Different tax rates on overseas earnings
8,135
26,453

Total tax charge for the year
261,706
182,768


13.


Dividends

2024
2023
£
£


Dividend paid on equity capital
185,722
654,538


14.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year was £246,474 (2023 - £388,478).

Page 23

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

15.


Intangible assets

Group





Goodwill

£



Cost


At 1 September 2023
530,136



At 31 August 2024

530,136



Amortisation


At 1 September 2023
450,618


Charge for the year on owned assets
53,014



At 31 August 2024

503,632



Net book value



At 31 August 2024
26,504



At 31 August 2023
79,518



Page 24

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

16.


Tangible fixed assets

Group






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

£
£
£
£



Cost or valuation


At 1 September 2023
129,344
142,861
424,295
696,500


Additions
-
1,791
31,596
33,387



At 31 August 2024

129,344
144,652
455,891
729,887



Depreciation


At 1 September 2023
101,857
138,297
382,069
622,223


Charge for the year on owned assets
6,216
1,613
19,790
27,619


Disposals
-
-
4,555
4,555



At 31 August 2024

108,073
139,910
406,414
654,397



Net book value



At 31 August 2024
21,271
4,742
49,477
75,490



At 31 August 2023
27,487
4,564
42,226
74,277

Page 25

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

17.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 September 2023
1,193,174



At 31 August 2024
1,193,174





Direct subsidiary undertaking


The following was a direct subsidiary undertaking of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Avalon Fashions Limited
22 Bruton Street, London, United Kingdom, W1J 6QE
Design, manufacture and
 distribution of beachwear
Ordinary
60.16%


Indirect subsidiary undertakings


The following were indirect subsidiary undertakings of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Avalon Fashions II Limited
14th Floor, 33 Cavendish Square, London, United Kingdom, W1G 0PW
Retailer of designer swimwear and beachwear
Ordinary
60.16%
Avalon Fashions LLC
19 Franklin Street, Tenafly, NJ 07670, USA
Commercial apparel designers
Ordinary
60.16%

Page 26

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

18.


Stocks

Group
Group
2024
2023
£
£

Raw materials and consumables
526,860
653,596

Finished goods and goods for resale
930,114
1,168,074

1,456,974
1,821,670


There is no material difference between the replacement cost of stocks and the amounts stated above. The provision reducing the carrying value of stocks to net realisable value above as at 31 August 2024 amounted to £2,634,431 (2023: £2,718,387).


19.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Due after more than one year

Other debtors
57,958
57,958
-
-


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Due within one year

Trade debtors
933,232
1,226,726
460
27,772

Other debtors
1,218,378
1,127,772
-
-

Prepayments and accrued income
88,947
166,833
102,164
68,315

2,240,557
2,521,331
102,624
96,087



20.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
5,865,488
5,238,102
91,697
210,923


Page 27

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

21.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Trade creditors
1,115,017
1,556,184
432
2,107

Amounts owed to group undertakings
-
-
168,439
164,404

Corporation tax
209,217
342,004
106,981
200,657

Other taxation and social security
65,419
51,797
25,604
16,252

Other creditors
180,299
271,863
176,769
269,081

Accruals and deferred income
1,987,879
1,855,796
53,486
52,651

3,557,831
4,077,644
531,711
705,152



22.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1 Ordinary share of £1.00
1
1



23.


Reserves

Profit and loss account

The Company's reserves of £855,783 (2023: £795,031) are all distributable. 
The Group's reserves of £3,637,464 (2023: £3,268,812) include a debit balance of £22,340 (2023: £61,960) relating to foreign exchange differences. The foreign exchange differences represents adjustments resulting from translation of subsidiary financial statements into the reporting currency.


24.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administrated fund. The pension cost charge represents contributions payable by the Group to the fund an amounted to £43,011 (2023: £34,658).
Contributions totalling £6,407 (2023: £Nil) were payable by the Group to the fund at the balance sheet date and are included in creditors. 

Page 28

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

25.


Commitments under operating leases

At 31 August 2024 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:




Group
Group
2024
2023
£
£

Not later than 1 year
490,176
478,707

Later than 1 year and not later than 5 years
1,184,921
1,570,373

Later than 5 years
139,284
214,500

1,814,381
2,263,580


26.


Related party transactions

Company
At the year end, a balance of £176,769 (2023: £269,081) was owed to the director. No interest was charged on this balance.
At the year end, a balance of £168,439 (2023: £164,404) was owed to Avalon Fashions Limited, a subsidiary.
At the year end, an accrued income balance of £Nil (2023: £43,434) was owed from Avalon Fashions LLC, a subsidiary.
At the year end, an accrued income balance of £100,000 (2023: £22,760) was owed from Avalon Fashions Limited, a subsidiary.
During the year interest of £4,035 (2023: £4,035) was charged by Avalon Fashions Limited, a subsidiary.
During the year, consultancy fees of £379,777 (2023: £505,207) were charged to subsidiaries.
The Company's sole director is considered to be key management personnel.
Group
At the year end, a balance of £135,256 (2023: £54,541) was owed from the director. No interest was charged on this balance. 
Remuneration to key management personnel for the year was £376,909 (2023: £375,040).


27.


Post balance sheet events

No events have occurred between 31 August 2024 and the date of approval of these financial statements that would require adjustment to or disclosure in the financial statements.

Page 29

 
MO FREEDOM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

28.


Controlling party

The ultimate controlling party is the director and sole shareholder, Melissa Odabash.

 
Page 30