Registration number:
Molan (UK) Limited
for the Year Ended 31 December 2024
Molan (UK) Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Independent Auditor's Report |
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Statement of Comprehensive Income |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
Molan (UK) Limited
Company Information
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Directors |
J A S Armitage O Jakobovitz S Michael H Sharon |
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Company secretary |
C L Strydom |
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Registered office |
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Auditors |
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Molan (UK) Limited
Strategic Report for the Year Ended 31 December 2024
The Directors present their strategic report for the year ended 31 December 2024.
Business review
The company continued operations during 2024 as a manufacturer and distributor of roof line products to the UK building and construction sector. Revenue increased by 3% to £21.3m from £20.7m in 2023. Gross profit increased by 2% to 41% (2023:39%). Operating Profit at £3 Million is 14% of turnover, a 1% reduction from 2023.
The management of Molan UK and the wider Palram Group view the company as an integral and strategic part of the Palram Group.
Key performance indicators
The Directors consider a range of KPIs to measure the business. The range of KPIs may include, but is not limited to, performance levels, quality, health and safety, and a range of financial measures. The directors believe that because of the nature of the business, disclosing further KPIs is not necessary for an understanding of the company's development, performance or position.
Environment
The company's environmental strategy is reviewed and amended to take account of changing requirements in terms of legislation.
Principal objectives
The Directors' continued focus remains the strategies in place in relation to product range, sales market, improve process efficiencies, cost control initiatives and material purchases.
Principal risks and uncertainties
The principal risks and uncertainties facing the business can be described broadly as competitive risks and the impact of the economic market.
The company operates in a competitive environment, mainly in the UK. The company manages the risk from competitive pressures by providing innovative products and a quality and reliable service.
Raw material shortage and price movement is a potential risk to the business. The Directors mitigate this risk by being able to order, stock and maintain larger than normal stock levels. The change of ownership and by now being part of a larger group also mitigates this risk, as the group companies are part of the supply chain.
The Directors also closely monitor the UK's relationship with the European Union following the UK's exit from the EU. In particular, management is monitoring the foreign exchange markets, updates in the Single Market Trade agreement with Europe and other political developments.
Financial risk management
The company's operations expose it to a variety of financial risks that include credit, liquidity and foreign exchange risk. The company has a risk management programme in place that seeks to limit adverse effects on the financial performance of the business.
Given the size of the company, the Directors have not delegated responsibility for monitoring financial risk to a sub-committee of the board. Instead, the Directors follow the policies set out by the ultimate parent company.
Credit risk - The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by management.
Liquidity risk - The company actively maintains a mixture of debt finance that is designed to ensure the company has sufficient available funds for its operations and planned expansions.
Foreign exchange risk - The operations of the company are mainly in the United Kingdom and the Euro zone, and as a result it is primarily exposed to foreign exchange risk with respect to the Euro.
Molan (UK) Limited
Strategic Report for the Year Ended 31 December 2024 (continued)
The Directors present their strategic report for the year ended 31 December 2024.
Business review
The company continued operations during 2024 as a manufacturer and distributor of roof line products to the UK building and construction sector. Revenue increased by 3% to £21.3m from £20.7m in 2023. Gross profit increased by 2% to 41% (2023:39%). Operating Profit at £3 Million is 14% of turnover, a 1% reduction from 2023.
The management of Molan UK and the wider Palram Group view the company as an integral and strategic part of the Palram Group.
Key performance indicators
The Directors consider a range of KPIs to measure the business. The range of KPIs may include, but is not limited to, performance levels, quality, health and safety, and a range of financial measures. The directors believe that because of the nature of the business, disclosing further KPIs is not necessary for an understanding of the company's development, performance or position.
Environment
The company's environmental strategy is reviewed and amended to take account of changing requirements in terms of legislation.
Principal objectives
The Directors' continued focus remains the strategies in place in relation to product range, sales market, improve process efficiencies, cost control initiatives and material purchases.
Principal risks and uncertainties
The principal risks and uncertainties facing the business can be described broadly as competitive risks and the impact of the economic market.
The company operates in a competitive environment, mainly in the UK. The company manages the risk from competitive pressures by providing innovative products and a quality and reliable service.
Raw material shortage and price movement is a potential risk to the business. The Directors mitigate this risk by being able to order, stock and maintain larger than normal stock levels. The change of ownership and by now being part of a larger group also mitigates this risk, as the group companies are part of the supply chain.
The Directors also closely monitor the UK's relationship with the European Union following the UK's exit from the EU. In particular, management is monitoring the foreign exchange markets, updates in the Single Market Trade agreement with Europe and other political developments.
Financial risk management
The company's operations expose it to a variety of financial risks that include credit, liquidity and foreign exchange risk. The company has a risk management programme in place that seeks to limit adverse effects on the financial performance of the business.
Given the size of the company, the Directors have not delegated responsibility for monitoring financial risk to a sub-committee of the board. Instead, the Directors follow the policies set out by the ultimate parent company.
Credit risk - The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by management.
Liquidity risk - The company actively maintains a mixture of debt finance that is designed to ensure the company has sufficient available funds for its operations and planned expansions.
Foreign exchange risk - The operations of the company are mainly in the United Kingdom and the Euro zone, and as a result it is primarily exposed to foreign exchange risk with respect to the Euro.
Approved and authorised by the
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Molan (UK) Limited
Directors' Report for the Year Ended 31 December 2024
The Directors present their report and the audited financial statements of the company for the year ended 31 December 2024.
Directors
The Directors who held office during the year under review were:
S Michael
O Jakobovitz
J A S Armitage
A Zamir (Resigned 28 December 2024)
The following director was appointed after the year end
H Sharon (appointed 1 January 2025)
None of the above has a beneficial interest in the company's issued ordinary share capital.
Dividend
Particulars of recommended dividends are detailed in note 9 to the financial statements.
Political donations
No political donations were made during the year (2023: £nil).
Going concern
After making suitable enquires, the Directors have a reasonable expectation that the company and the Palram Group, of which the company is a member, have adequate internal and external funding to continue in operational existence for the foreseeable future. Consequently, they continue to adopt the going concern basis in preparing these financial statements.
Directors' responsibilities
The Directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law, the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the Directors are required to:
• select suitable accounting policies and 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; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Molan (UK) Limited
Directors' Report for the Year Ended 31 December 2024 (continued)
The Directors present their report and the audited financial statements of the company for the year ended 31 December 2024.
Directors
The Directors who held office during the year under review were:
S Michael
O Jakobovitz
J A S Armitage
A Zamir (Resigned 28 December 2024)
The following director was appointed after the year end
H Sharon (appointed 1 January 2025)
None of the above has a beneficial interest in the company's issued ordinary share capital.
Dividend
Particulars of recommended dividends are detailed in note 9 to the financial statements.
Political donations
No political donations were made during the year (2023: £nil).
Going concern
After making suitable enquires, the Directors have a reasonable expectation that the company and the Palram Group, of which the company is a member, have adequate internal and external funding to continue in operational existence for the foreseeable future. Consequently, they continue to adopt the going concern basis in preparing these financial statements.
Directors' responsibilities
The Directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law, the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the Directors are required to:
• select suitable accounting policies and 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; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Disclosure of information to the auditors
Each director of the company who held office at the date of the approval of this Annual Report, as set out above, confirms that:
• so far as they are aware, there is no relevant audit information (information needed by the company's auditors in connection with preparing their report) of which the company's auditors are unaware, and
• they have taken all the steps they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
Reappointment of auditors
The auditors Hawsons Chartered Accountants are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Approved and authorised by the
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Molan (UK) Limited
Independent Auditor's Report to the Members of Molan (UK) Limited
Opinion
We have audited the financial statements of Molan (UK) Limited (the 'company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its 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 Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Molan (UK) Limited
Independent Auditor's Report to the Members of Molan (UK) Limited (continued)
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors’ remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Directors Report set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Molan (UK) Limited
Independent Auditor's Report to the Members of Molan (UK) Limited (continued)
The company is subject to laws and regulations that directly and indirectly affect the financial statements. Based on our understanding of the company and the environment it operates within, we determined that the laws and regulations which were most significant included FRS 102, Companies Act 2006 and Health and Safety regulations. We considered the extent to which non-compliance with these laws and regulations might have a material effect on the financial statements, including how fraud might occur. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate journal entries to improve the company’s result for the period, and management bias in key accounting estimates.
Audit procedures performed by the engagement team included:
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Discussions with management and those responsible for legal compliance procedures within the company to obtain an understanding of the legal and regulatory framework applicable to the company and how the company complies with that framework, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud; |
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Reviewing minutes of Board meetings; |
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Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud and non-compliance with laws and regulations; |
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Challenging assumptions and judgements made by management in their significant accounting estimates; |
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Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or posted by senior management. |
There are inherent limitations in the audit procedures described above and the more removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. 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 collusion.
A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Molan (UK) Limited
Independent Auditor's Report to the Members of Molan (UK) Limited (continued)
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
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For and on behalf of
5 Sidings Court
White Rose Way
South Yorkshire
DN4 5NU
Molan (UK) Limited
Statement of Comprehensive Income for the Year Ended 31 December 2024
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Note |
2024 |
2023 |
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Turnover |
21,320,045 |
20,715,989 |
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Cost of sales |
(12,519,901) |
(12,705,486) |
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Gross profit |
8,800,144 |
8,010,503 |
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Distribution costs |
(255,682) |
(462,467) |
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Administrative expenses |
(5,553,696) |
(4,501,993) |
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Other operating income |
15,000 |
18,071 |
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Operating profit |
3,005,766 |
3,064,114 |
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Other interest receivable and similar income |
52,521 |
27,088 |
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Profit before tax |
3,058,287 |
3,091,202 |
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Taxation |
(726,294) |
(753,427) |
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Profit for the financial year |
2,331,993 |
2,337,775 |
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Total comprehensive income for the year |
2,331,993 |
2,337,775 |
Molan (UK) Limited
(Registration number: 02855920)
Balance Sheet as at 31 December 2024
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Note |
2024 |
2023 |
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Fixed assets |
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Intangible assets |
- |
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Tangible assets |
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Right of use assets |
1,810,396 |
- |
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Investments |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
- |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Retained earnings |
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Shareholders' funds |
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These financial statements were approved and authorised for issue by the
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Director
Molan (UK) Limited
Statement of Changes in Equity for the Year Ended 31 December 2024
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Share capital |
Retained earnings |
Total |
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At 1 January 2024 |
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Profit for the year |
- |
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Dividends |
- |
( |
( |
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At 31 December 2024 |
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Share capital |
Retained earnings |
Total |
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At 1 January 2023 |
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Profit for the year |
- |
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At 31 December 2023 |
300,000 |
8,947,237 |
9,247,237 |
Molan (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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Accounting policies |
Statutory information
Molan (UK) Limited is a private company, limited by shares, domiciled in England and Wales, company number 02855920. The registered office is at 5.2 Central House, 1 Ballards Lane, London, N3 1LQ.
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
The financial statements have been prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland, as issued by the Financial Reporting Council (FRC). The company has elected to early adopt certain amendments introduced in the FRS 102 Triennial Review 2024, which are effective for accounting periods beginning on or after 1 January 2026.
Early Adoption of Amendments
The company has early adopted the following sections of the FRS 102 amendments:
Section 23: Revenue - applying the five-step model for revenue recognition based on IFRS 15 principles.
Section 20: Leases - recognising right-of-use assets and lease liabilities in accordance with IFRS 16 principles.
Transition Approach
For revenue recognition, the company has applied the amendments retrospectively with the cumulative effect of initial application recognised at the date of transition (1 January 2024). Comparative figures have not been restated.
For leases, the company has elected to measure lease liabilities at the present value of remaining lease payments and right-of-use assets at an amount equal to the lease liability, adjusted for any prepaid or accrued lease payments.
Impact of Adoption
There has been no material impact on retained earnings as at 1 January 2024. The company believes early adoption provides more relevant and reliable information to users of the financial statements and
aligns with group reporting requirements.
Molan (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
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Accounting policies (continued) |
Summary of disclosure exemptions
(i) Statement of cash flows
The exemption of Section 7 Statement of Cash Flows and Section 3 Financial Statement Presentation paragraph 3.17(d) to produce Statement of Cash Flows.
(ii) Group accounts
The company is exempt from the requirement to prepare group accounts in accordance with CA 2006 S401 (non EEA parent) as the company itself is a subsidiary undertaking and the company and its subsidiary undertaking are included in the consolidated financial statements of its ultimate parent company, Palram Industries (1990) Limited. Their consolidated financial statements are publicly available and are drawn up in accordance with EEC 7th directive.
Molan (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
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Accounting policies (continued) |
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The judgements (apart from those involving estimations) that management has made in the process of applying the entity’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:
Useful economic lives of tangible assets.
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic life and residual value of each asset. Useful economic lives and residual values are re-assessed annually and amended, when necessary, to reflect current estimates, based on technological advancement, future investments, economic utilisation, and the physical condition of the assets.
Impairment of debtors
The company makes an estimate of the recoverable value of trade and other debtors at the end of each reporting period. When assessing whether any impairment should be recognised management considers factors including the current credit rating of the debtor, the ageing profile of balances and historical experience.
Valuation of investments
Investments in subsidiaries are initially measured at cost and subsequently at cost less impairment. In assessing whether an impairment should be recognised the Directors consider the performance of the subsidiary as well as its expected future performance and its position at the reporting date.
Going concern
After due consideration of all relevant factors, the Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the forseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.
Revenue recognition
The company has early adopted the revised Section 23 of FRS 102, Revenue from Contracts with Customers, issued as part of the Financial Reporting Council’s 2024 periodic review. This section introduces a comprehensive five-step model for revenue recognition, aligned with IFRS 15 principles, and is effective for accounting periods beginning on or after 1 January 2026. Early adoption is permitted and has been applied in full.
Molan (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
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Accounting policies (continued) |
Revenue is recognised to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The company applies the following five-step model:
Identify the Contract with a Customer
A contract is an agreement that creates enforceable rights and obligations. Contracts may be written, oral, or implied by customary business practices.
Identify the Performance Obligations
Performance obligations are distinct goods or services promised in the contract. A good or service is distinct if it is separately identifiable and the customer can benefit from it on its own or with other readily available resources.
Determine the Transaction Price
The transaction price is the amount of consideration the company expects to receive, including variable consideration, which is included only if it is highly probable that a significant reversal will not occur.
Allocate the Transaction Price to the Performance Obligations
The transaction price is allocated to each performance obligation based on relative standalone selling prices.
Recognise Revenue When (or As) Performance Obligations Are Satisfied
Revenue is recognised when control of the good or service transfers to the customer, either over time or at a point in time, depending on the nature of the performance obligation.
Tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.
Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currency transactions and balances
Molan (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
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Accounting policies (continued) |
Leases
The company has early adopted the revised Section 20 of FRS 102, Leases, issued as part of the Financial Reporting Council’s 2024 periodic review. These amendments are effective for accounting periods beginning on or after 1 January 2026, with early adoption permitted. The revised section introduces an on-balance sheet lease accounting model for lessees, aligned with IFRS 16 principles.
Under the new model, the company recognises a right-of-use asset and a corresponding lease liability at the commencement date of the lease. The lease liability is measured at the present value of lease payments over the lease term, discounted using the company’s obtainable borrowing rate. A right-of-use asset is initially measured at the amount of the lease liability, adjusted for any lease prepayments, initial direct costs, and restoration obligations.
Subsequent to initial recognition, the right-of-use asset is depreciated over the lease term or the useful life of the asset, whichever is shorter. The lease liability is increased by interest and reduced by lease payments.
In terms of presentation, lease-related expenses are split between depreciation (on the right-of-use asset) and interest expense (on the lease liability). This replaces the previous straight-line lease expense model and may impact EBITDA and other financial metrics.
Exemptions
The company applies the following exemptions:
Short-term leases (lease term of 12 months or less).
Low-value assets (e.g., office equipment, IT peripherals).
Payments under exempt leases are recognised as an expense on a straight-line basis over the lease term.
Intangible assets
Intangible assets are initially recorded at cost and are subsequently stated at cost less any accumulated amortisation and impairment losses.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
|
Asset class |
Amortisation method and rate |
|
Goodwill |
20% straight line |
|
Design and Technical knowledge |
20% straight line |
|
Customer List |
Over a period of 12 months from the date of acquisition |
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost and subsequently stated at cost less any accumulated depreciation and impairment losses.
Molan (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
1 |
Accounting policies (continued) |
Depreciation
Depreciation is charged so as to write off the cost or valuation of assets, less its residual value, over the useful economic life of that asset as follows:
|
Asset class |
Depreciation method and rate |
|
Plant and machinery |
25% straight line |
|
Fixtures and fittings |
25% straight line |
|
Motor vehicles |
25% straight line |
|
Computer equipment |
33% straight line |
|
Long leasehold property |
10% straight line |
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Stocks
Stocks are stated at the lower of cost and estimated selling price less cost to complete and sell. Cost is determined using first-in, first-out (FIFO) method.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.
Government grants are recognised using the performance model. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Molan (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
1 |
Accounting policies (continued) |
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Defined contribution pension obligation
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
|
Revenue |
The analysis of the company's turnover for the year from continuing operations is as follows:
|
2024 |
2023 |
|
|
UK |
19,851,601 |
20,132,885 |
|
Europe |
1,468,444 |
583,104 |
|
21,320,045 |
20,715,989 |
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
|
2024 |
2023 |
|
|
Miscellaneous other operating income |
|
|
Molan (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Operating profit |
Operating profit is stated after charging:
|
2024 |
2023 |
||
|
£ |
£ |
||
|
Amortisation of intangible assets |
59,236 |
108,854 |
|
|
Depreciation of tangible assets |
119,173 |
86,526 |
|
|
Depreciation of right of use assets |
567,209 |
- |
|
|
(Gain)/Loss on disposal of tangible assets |
(15,000) |
- |
|
|
Impairment of trade debtors |
24,002 |
7,920 |
|
|
(Gain)/Loss on foreign exchange differences |
41,182 |
1,559 |
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Audit of the financial statements |
|
|
|
Other fees to auditors |
||
|
All other non-audit services |
|
|
Molan (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the company during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
Distribution |
|
|
|
|
|
|
Other interest receivable and similar income |
|
2024 |
2023 |
|
|
Other finance income |
|
|
Molan (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
( |
- |
|
695,825 |
771,457 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
( |
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2024 |
2023 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Decrease in UK and foreign current tax from adjustment for prior periods |
( |
- |
|
Tax (decrease)/increase from effect of capital allowances and depreciation |
( |
|
|
Effect of expense not deductible in determining taxable profit |
( |
|
|
Deferred tax expense/(credit) from unrecognised temporary difference from a prior period |
|
( |
|
Total tax charge |
|
|
Molan (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Dividends |
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):
|
2024 |
2023 |
|
|
£ |
£ |
|
|
Equity dividends on ordinary shares |
2,000,000 |
- |
|
Intangible assets |
|
Goodwill |
Design and technical knowledge |
Customer List |
Total |
|
|
Cost |
||||
|
At 1 January 2024 |
|
|
|
|
|
At 31 December 2024 |
|
|
|
|
|
Amortisation |
||||
|
At 1 January 2024 |
|
|
|
|
|
Amortisation charge |
|
- |
- |
|
|
At 31 December 2024 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 December 2024 |
- |
- |
- |
- |
|
At 31 December 2023 |
|
- |
- |
|
Molan (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Tangible assets |
|
Long leasehold land and buildings |
Fixtures and fittings |
Plant and machinery |
Computer equipment |
Motor vehicles |
Total |
|
|
Cost |
||||||
|
At 1 January 2024 |
|
|
|
|
|
3,031,288 |
|
Additions |
|
|
|
|
- |
266,353 |
|
Disposals |
- |
- |
( |
- |
- |
(28,000) |
|
At 31 December 2024 |
97,685 |
841,392 |
2,214,730 |
114,334 |
1,500 |
3,269,641 |
|
Depreciation |
||||||
|
At 1 January 2024 |
|
|
|
|
|
2,791,637 |
|
Charge for the year |
|
|
|
|
|
119,172 |
|
Eliminated on disposal |
- |
- |
( |
- |
- |
(28,000) |
|
At 31 December 2024 |
|
|
|
|
|
|
|
Carrying amount |
||||||
|
At 31 December 2024 |
|
|
|
|
|
386,832 |
|
At 31 December 2023 |
|
|
|
|
|
|
Molan (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Right of use assets |
|
Right of use assets |
Total |
|
|
Cost |
||
|
At 1 January 2024 |
- |
- |
|
Recognition on initial application of IFRS16 |
|
|
|
Additions |
|
|
|
Disposals |
( |
( |
|
At 31 December 2024 |
|
|
|
Depreciation |
||
|
At 1 January 2024 |
- |
- |
|
Recognition on initial application of IFRS16 |
|
|
|
Charge for the year |
|
|
|
Eliminated on disposal |
( |
( |
|
At 31 December 2024 |
782,210 |
782,210 |
|
Carrying amount |
||
|
At 31 December 2024 |
|
1,810,396 |
|
At 31 December 2023 |
- |
- |
|
Investments |
|
2024 |
2023 |
|
|
Investments in subsidiaries |
1 |
1 |
|
Subsidiaries |
£ |
|
Cost |
|
|
At 1 January 2024 |
|
|
At 31 December 2024 |
|
|
Carrying amount |
|
|
At 31 December 2024 |
1 |
|
At 31 December 2023 |
|
Molan (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
13 |
Investments (continued) |
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
||||
|
2024 |
2023 |
||||||
|
Subsidiary undertakings |
|||||||
|
|
5.2 Central House 1 Ballards Lane, London, N3 1LQ |
|
|
|
|||
|
Subsidiary undertakings |
|
Roofing Bars Limited The principal activity of Roofing Bars Limited is |
|
Stocks |
|
2024 |
2023 |
|
|
Finished goods and goods for resale |
|
|
Molan (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Debtors |
|
Current |
2024 |
2023 |
|
Trade debtors |
|
|
|
Amounts owed by related parties |
|
|
|
Other debtors |
- |
|
|
Prepayments |
|
|
|
|
|
The debtors above include the following amounts falling due after more than one year:
|
2024 |
2023 |
||
|
£ |
£ |
||
|
Amounts owed by group undertakings |
4,639,563 |
2,639,564 |
|
Cash and cash equivalents |
|
2024 |
2023 |
|
|
Cash at bank |
|
|
|
Creditors |
|
2024 |
2023 |
|
|
Due within one year |
||
|
Lease liabilities |
|
- |
|
Trade creditors |
|
|
|
Amounts due to related parties |
|
|
|
Social security and other taxes |
|
|
|
Other payables |
|
|
|
Accruals |
|
|
|
Income tax liability |
181,676 |
370,738 |
|
|
|
|
|
Due after one year |
||
|
Lease liabilities |
|
- |
Molan (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Deferred tax and other provisions |
|
Deferred tax |
Total |
|
|
At 1 January 2024 |
|
|
|
Increase (decrease) in existing provisions |
|
|
|
At 31 December 2024 |
|
|
|
|
||
The deferred tax account consists of the tax effect of timing differences in respect of:
|
2024 |
2023 |
||
|
£ |
£ |
||
|
Accelerated capital allowances |
56,483 |
26,014 |
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £13,244 (2023 - £10,891) were payable to the scheme at the end of the year and are included in creditors.
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
Ordinary shares of £1 each of £1 each |
300,000 |
300,000 |
300,000 |
300,000 |
|
Reserves |
The company's reserves are as follows:
Profit and loss reserve
This reserve represents cumulative profits or losses, net of any dividends paid and other adjustments.
Molan (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Related party transactions |
Transactions:
The company is exempt from disclosing transactions with related parties that are wholly owned within the same group in accordance with FRS 102 Section 33(1)A.
|
2024 |
2023 |
|
|
Amounts owed to: |
£ |
£ |
|
Palram Polycarb Limited |
275,580 |
2,265 |
|
275,580 |
2,265 |
|
|
2024 |
2023 |
|
|
Amounts owed by: |
£ |
£ |
|
Palram Polycarb Limited |
- |
20,995 |
|
- |
20,995 |
|
Outstanding trading balances with entities are unsecured, interest free and cash settlement is expected within normal trading terms. During the year ended 31 December 2024, the company has not made any provision for doubtful debts relating to amounts owed by related parties. (2023 - £nil)
|
2024 |
Sales |
Purchases |
|
£ |
£ |
|
|
Palram Polycarb Limited |
79,601 |
- |
|
79,601 |
- |
|
|
2023 |
Sales |
Purchases |
|
£ |
£ |
|
|
Palram Polycarb Limited |
67,994 |
2,265 |
|
67,994 |
2,265 |
|
27 Parent and ultimate parent undertaking
The company’s immediate parent is Molan (UK) Holdings Limited, a company incorporated in England and Wales.
The most senior parent entity producing publicly available financial statements is Palram Industries (1990) Limited. These financial statements are available upon request from Palram Industries (1990) Limited, Ramat- Yohanan 30035, Israel.
Palram Industries (1990) Limited is a public company incorporated and registered in Israel, and listed on the Tel Aviv Stock Exchange.