|
Registered number:
For the year ended
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Company Information
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Contents
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Group Strategic Report
For the year ended 31 December 2024
The directors are pleased to present the Group Strategic Report for the year ended 31 December 2024.
In 2024, the Group achieved notable progress: revenue rose by 6% to £21.92m, gross profit increased by 16% to £7.06m, and EBIT loss (Earnings Before Interest & Taxation) reduced by 58% to £1.27m, all of which was underpinned by a clear focus on our strategic priorities, and strong operational execution. Turnover in Meyer Group Limited increased by £0.7m whilst turnover generated by Ruffoni SRL, the Italian subsidiary, increased by £0.6m.
The consumer environment within which we are operating remains cautious and volatile, and Government policy changes continue to drive additional on-costs into the business. Despite the continued challenging external environment, we are pleased to report a year of robust revenue growth, driven primarily by the continued focus and expansion of our core brand portfolio, which delivered an excellent performance of +34% year-on-year growth. This growth has been achieved primarily though our Ecommerce and Direct to Consumer channels, whilst increasing gross profit margins and maintaining strict control over operating expenses, reflecting our commitment to sustainable and efficient business practices. Our cost discipline has enabled us to reinvest in key growth areas, namely working marketing activity, whilst safeguarding profitability. Innovation remains at the heart of our product strategy, delivering excellent results for us in 2024 and our new product development pipeline remains as strong as we progress through 2025 and 2026. As a result of these efforts, we have delivered a meaningful improvement in EBIT loss, demonstrating the strength of our underlying business model and the effectiveness of our strategic priorities. Furthermore, this performance positions us for ongoing momentum, with continued emphasis on core brands, operational improvements (including AI and automation), and disciplined cost management. Our three strategic priorities remained a key focus throughout the year, and we made solid progress in all three areas. 1. Drive sales growth through our core brands (+34%) 2. Improve EBIT profitability (+58%) 3. Create an engaged, performance-focused culture Group administrative expenses are £0.8m lower than the prior year and Group distribution costs are £0.3m higher. The Company, Meyer Group Limited, reduced its administrative expenses by £0.6m. The Group's loss before taxation halved year on year to £1.8m (2023: £3.6m), reflecting the increase in gross profit and reduction in administrative expenses noted above. At 31 December 2024, the Group had net assets totalling £13.54m (2023: £4.8m). During the year, the Company allotted and issued 11,400,000 £1 Ordinary shares, which were credited as fully paid to the parent company in consideration of intercompany debt owed, increasing the Group and Company's net assets by £11.4m. Our next financial year will maintain a focus on core brand growth, profitability improvement and our ‘Building a Better Meyer’ people and culture initiatives.
Page 1
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Group Strategic Report (continued)
For the year ended 31 December 2024
Management acknowledges several risks that could affect the implementation of the group's strategies:
• Government Policy: Changes in government policy could impact exchange rates, inflation, VAT, and interest rates, subsequently affecting the cost of goods and consumer buying power. • Competition: We operate in a highly competitive market; the group mitigates this risk by focusing on innovation, product quality, customer service and effective marketing. • Employees: The risk of key staff resignation is recognised, and to mitigate this, the company emphasises strong employee relations, offers excellent benefits, and strives to maintain a positive, flexible and rewarding workplace environment. Our new strategy highlights a particular focus on talent development, engagement, and performance. • Interest rate risk: The Group is exposed to interest rate risk through its loan with HSBC Bank. Increases in the Bank of England base rate would increase the cost of the loan.
The group monitors several KPIs at different levels within the organization. The Board measures:
• Net Revenue Growth • Gross Margin (%) • Inventory Turn • EBIT
Department managers track a range of KPIs, including:
• Brand health scores • Debtor days outstanding • Order fulfilment (OTIF) • NPD (New Product Development) delivery • Increased Website Conversion • Customer Net Promoter Score (NPS) • Employee engagement This report reflects an improved performance in 2024 whilst navigating a continued volatile trading environment. In 2025, we are planning to deliver further improvements across all 3 key strategic priorities.
This report was approved by the board and signed on its behalf.
Page 2
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Directors' Report
For the year ended 31 December 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the group strategic report, the directors' report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments 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 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The loss for the year, after taxation and minority interests, amounted to £2,531 thousand (2023 - loss £4,089 thousand).
The directors do not recommend the payment of a final dividend.
The directors who served during the year were:
Details of the Group's future developments are included in the Group Strategic Report.
Page 3
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Directors' Report (continued)
For the year ended 31 December 2024
The group uses various financial instruments including loans and cash, as well as various items such as trade debtors and trade creditors arising from its operations. The main purpose of these financial instruments is to raise finance for the group's operations. The Group and Company has in place a risk management programme that seeks to limit the adverse effects on financial performance by monitoring the factors that affects relevant financial risks.
The main risks arising from the group's financial instruments are cash flow risk, interest rate risk, credit risk, liquidity risk and exchange rate risk. The directors review and agree policies for managing each of these risks and these policies have remained unchanged from previous years. Credit risk is managed by running credit checks on new customers and by monitoring payments against the contractual arrangements, alongside utilising credit insurance on most account. The Company has no significant concentration of credit risk, with exposure spread over a number of customers. With regards to liquidity risk, the objective is to ensure continuity of funding and cash levels sufficient to meet the ongoing needs of the business. The policy is to smooth the cash management of the business and to arrange funding ahead of requirements, should it be needed. The Group and Company recognise that managing cash flow risk is crucial to maintaining financial stability and ensuring the smooth operation of our business. Our cash flow risk policy aims to safeguard the Group and Company against potential liquidity shortages and ensure that we have sufficient cash to meet our obligations as they fall due. We maintain cash flow forecasts to anticipate our cash needs. These forecasts are regularly updated to reflect changes in business operations, market conditions, and other external factors. Efficient credit control processes are in place to manage receivables and ensure timely collections from customers. This helps maintain a steady cash inflow. We closely monitor our expenditure, maintaining a healthy cash balance and avoiding unnecessary financial strain.
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
Page 4
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Independent Auditors' Report to the Members of Meyer Group Limited
We have audited the financial statements of Meyer Group Limited (the 'parent company') and its subsidiaries (the 'Group') for the year ended 31 December 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 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).
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.
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 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 directors with respect to going concern are described in the relevant sections of this report.
Page 5
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Independent Auditors' Report to the Members of Meyer Group Limited (continued)
The other information comprises the information included in the Annual Report other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the group strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the group strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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 directors' report.
Page 6
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Independent Auditors' Report to the Members of Meyer Group Limited (continued)
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.
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:
The engagement partner's assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team’s: • Understanding of, and practical experience with audit engagements of a similar nature and complexity through appropriate training and participation; • Knowledge of the industry in which the entity operates; • Understanding of the legal and regulatory requirements specific to the entity. Identifying and assessing potential risks related to irregularities In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
∙The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
∙The outcome of enquiries of management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud.
∙Supporting documentation relating to the Company's policies and procedures for:
°Identifying, evaluating, and complying with laws and regulations
°Detecting and responding to the risks of fraud
∙The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
∙The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
∙The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, and Anti-bribery and Corruption.
Page 7
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Independent Auditors' Report to the Members of Meyer Group Limited (continued)
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
∙Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
∙Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud. Procedures to identify non-compliance with relevant laws and regulations were performed at all components within the scope of our audit.
∙Evaluation of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
∙Enquiring of management about any actual and potential litigation and claims.
∙Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
We have also considered the risk of fraud through management override of controls by:
∙Testing the appropriateness of journal entries and other adjustments. We have used data analytics software to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error.
∙Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
∙Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them. Also, 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 collusfion.
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.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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.
Page 8
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Independent Auditors' Report to the Members of Meyer Group Limited (continued)
for and on behalf of
Chartered Accountants
Statutory Auditors
3 Stockport Exchange
Cheshire
SK1 3GG
Page 9
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2024
Page 10
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Registered number: 01443669
Consolidated Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 40 form part of these financial statements.
Page 11
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Registered number: 01443669
Company Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 40 form part of these financial statements.
Page 12
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Consolidated Statement of Changes in Equity
For the year ended 31 December 2024
Page 13
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Company Statement of Changes in Equity
For the year ended 31 December 2024
Page 14
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Consolidated Statement of Cash Flows
For the year ended 31 December 2024
Page 15
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Consolidated Statement of Cash Flows (continued)
For the year ended 31 December 2024
Consolidated Analysis of Net Debt
For the year ended 31 December 2024
Page 16
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Meyer Group Limited is a private company limited by shares and incorporated in England. The address of the registered office and principal place of business is Wirral International Business Park, Riverview Road, Bromborough, Wirral, CH62 3RH. The company's registered number is 01443669.
The nature of the group's and company's operation and its principal activity consists of the importation of cookware, bakeware, pressure cookers, kitchen gadgets, knives and kitchen appliances for sale in the UK, Europe and the Middle East.
2.Accounting policies
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 judgment 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.
The financial statements are presented in Sterling (£).
Amounts presented in the financial statements are rounded to the nearest thousand, unless otherwise stated. Consolidated Statement of Comprehensive Income - Restatement In the prior year financial statements, certain elements of revenue (deductions to net revenue) totalling £444k were mapped to Cost of sales. In the accounts, the equivalent balances have been mapped as 'Revenue' and the prior year amounts restated, with no impact on profit or loss.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Group and its own subsidiaries ("the Group") as if they formed 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.
Page 17
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
2.Accounting policies (continued)
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
- The requirement of Section 7 Statement of Cash Flows; - The requirement of Section 3 Financial Statement Presentation paragraph 3.17 (d). The company's information is included in the consolidated financial statements.
The consolidated financial statements have been prepared on a going concern basis. The following paragraphs set out the basis on which the directors have reached their conclusion.
At 31 December 2024, the Group had net current assets of £8,955,000 (2023: net current liabilities £9,047,000) and a deficit on the profit and loss account of £25,800,000 (2023: £23,376,000). The Company had net current assets of £5,835,000 (2023: net current liabilities £11,716,000) and a deficit on the profit and loss account of £26,978,000 (2023: £24,384,000). Included within creditors at 31 December 2024 were bank loans totalling £9,103,000. The loan was initially being repaid in quarterly instalments and a final repayment of £8,929,000 was due in August 2024. In August 2024, the Company's bankers agreed to refinance the £8.9m loan for 2 years - quarterly payments are being made and a final repayment of £8.1m is due in August 2026. The directors of the parent company have agreed to guarantee repayment of the bank loans. Creditors falling due within one year include amounts owed to group undertakings by the Company totalling £9,167,000 (2023: £19,140,000). During the year, amounts owed to group undertakings totalling £11.4m were reassigned to the Company's ultimate parent undertaking, Meyer International Holdings. On 3 September 2024, the Company allotted and issued 11,400,000 £1 Ordinary shares, which were credited as fully paid to the parent company in consideration of the debt owed, and increased the Group and Company's net assets by £11.4m. The directors of the parent company have agreed to guarantee the amounts payable by the Company to the group undertakings for the period through to 31 July 2026. Alongside the refinancing and capitalisation of debt, the Group and Company continue to rely on support from the parent company and the wider group to trade. The directors have received formal confirmation that the parent company, Meyer International Holdings, will continue to provide financial support. The Group meets its working capital requirements through its cash balances, bank funding and support from the parent company. Based on management's forecasts and projections, the directors believe the Company and Group have sufficient facilities and support available, to trade through the next 12 month period. Accordingly, the directors believe it is appropriate to prepare the consolidated financial statements to 31 December 2024 on a going concern basis and there will be no adverse impact on solvency for more than 12 months after the date of approval of the financial statements.
Page 18
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
2.Accounting policies (continued)
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. Other intangible assets Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Page 19
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
2.Accounting policies (continued)
At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
Depreciation is provided on the following basis:
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives. The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated statement of comprehensive income. Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
Page 20
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
2.Accounting policies (continued)
Financial instruments are recognised in the Group's balance sheet when the Group 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 to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Page 21
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
2.Accounting policies (continued)
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the 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.
Page 22
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
2.Accounting policies (continued)
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
Functional and presentation currency
Transactions and balances
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.
Page 23
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Page 24
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
2.Accounting policies (continued)
The directors believe that judgements, estimates and assumptions do not have a significant risk of causing a material difference to the carrying amounts of the assets and liabilities within the next financial year.
Page 25
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Analysis of turnover by country of destination:
Page 26
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Page 27
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Page 28
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Page 29
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
12.Taxation (continued)
There were no factors that may affect future tax charges.
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 loss after tax of the parent company for the year was £
Page 30
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
14.Intangible assets (continued)
Page 31
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
A freehold property held in the Company was valued on 9 November 2020 on a market value with vacant possession basis by Nick Ogden, MRICS, a RICS Registered Valuer, Knight Frank. The property was valued at £11,000,000. The directors believe that there has not been a material change in the value of these assets between the year end and the valuation date.
Another freehold property in the Group was valued on 30 April 2021 by the Directors of the Company. The property was valued at €1,955,000. The directors believe that there has not been a material change in the value of these assets between the year end and the valuation date.
Page 32
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
15.Tangible fixed assets (continued)
The freehold property held in the Company was valued on 9 November 2020 on a market value with vacant possession basis by Nick Ogden, MRICS, a RICS Registered Valuer, Knight Frank. The property was revalued at £11,000,000. The directors believe that there has not been a material change in the value of these assets between the year end and the valuation date.
Page 33
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Page 34
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Page 35
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Page 36
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Page 37
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Page 38
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
23.Deferred taxation (continued)
During 2024, amounts owed to group undertakings totalling £11.4m were reassigned to the Company's ultimate parent undertaking, Meyer International Holdings. On 3 September 2024, the Company allotted and issued 11,400,000 £1 Ordinary shares, which were credited as fully paid to the parent company in consideration of the debt owed.
Revaluation reserve
The revaluation reserve includes revaluations of freehold property, net of depreciation recognised in the profit and loss account in excess of depreciation applicable under the historical cost convention. Profit and loss account The profit and loss account includes all current and prior period retained profits and losses.
The group has a composite facility and on 16 July 2018, the company entered into a debenture. As a result, the company may be held responsible for the liabilities of other group companies which at 31 December 2024 totalled £nil (2023: £nil).
There is also a company guarantee dated 25 June 2018 in favour of HMRC, Central Deferment Office for £200,000.
Page 39
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Meyer Group Limited
Notes to the Financial Statements
For the year ended 31 December 2024
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £167,000 (2023: £176,000). Contributions totalling £1,000 (2023: £3,000) were payable to the fund at the balance sheet date.
The company's ultimate parent undertaking is Meyer International Holdings Limited, a company incorporated in the British Virgin Islands.
Meyer International Holdings Limited is the parent undertaking of both the largest and smallest group for which group accounts are drawn up and of which the company is a member. Meyer International Holdings Limited's registered office is Vistra Corporate Services Centre, Road Town, Tortola, British Virgin Islands, VG1110.
Page 40
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||