Company Registration No. 08357087 (England and Wales)
Morgan Clare (UK) Ltd
Unaudited financial statements
for the year ended 31 January 2022
Pages for filing with the Registrar
Morgan Clare (UK) Ltd
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 11
Morgan Clare (UK) Ltd
Statement of financial position
As at 31 January 2022
Page 1
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
3
64,262
123,579
Tangible assets
4
17,070
18,074
Current assets
Stocks
294,980
360,452
Debtors
5
149,122
66,416
Cash at bank and in hand
366,672
225,234
810,774
652,102
Creditors: amounts falling due within one year
6
(143,284)
(93,900)
Net current assets
667,490
558,202
Total assets less current liabilities
748,822
699,855
Creditors: amounts falling due after more than one year
7
(935,742)
(935,630)
Net liabilities
(186,920)
(235,775)
Capital and reserves
Called up share capital
10
10
Profit and loss reserves
(186,930)
(235,785)
Total equity
(186,920)
(235,775)
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
For the financial year ended 31 January 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
Morgan Clare (UK) Ltd
Statement of financial position (continued)
As at 31 January 2022
Page 2
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 6 June 2022 and are signed on its behalf by:
Paula Scott
Director
Company Registration No. 08357087
Morgan Clare (UK) Ltd
Notes to the financial statements
For the year ended 31 January 2022
Page 3
1
Accounting policies
Company information
Morgan Clare (UK) Ltd is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
3 Montpellier Gardens, Harrogate, North Yorkshire, HG1 2TF.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The directors have assessed that the company is a going concern and the financial statements have therefore been prepared on this basis. In making this assessment the directors have considered a period of at least 12 months from the signing of the financial statements.
At the date of signing the financial statements, the company has a strong cash balance. Online sales decreased in the year but with the easing of the Coronavirus restrictions allowing retail shops to open up to the public has lead to sales in this area increasing by 35%. The company has also taken advantage of any available coronavirus grants and the furlough scheme and has implemented a series of cost cutting measures to mitigate any cash flow risks.
At 31 January 2022, the company is in a net liability position of £250,879. This includes amounts payable to the directors and shareholders of £935,742. The directors have committed to supporting the company and have agreed to not request repayment of amounts owed to them to the extent that it would cause the company to be in a position that it is unable to meet its other liabilities as they fall due for a period of 12 months from the date of signing the financial statements.
Based on the forecasts of the company and the commitment of support from the directors and shareholders, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least 12 months from the date of signing the financial statements.
Morgan Clare (UK) Ltd
Notes to the financial statements (continued)
For the year ended 31 January 2022
1
Accounting policies (continued)
Page 4
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Intangible fixed assets - goodwill
Acquired goodwill is being written off in equal annual installments over its estimated useful economic life of
10
years, subject to an annual review for impairment.
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
25% to 33% straight line
Fixtures, fittings & equipment
25% to 33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Morgan Clare (UK) Ltd
Notes to the financial statements (continued)
For the year ended 31 January 2022
1
Accounting policies (continued)
Page 5
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Morgan Clare (UK) Ltd
Notes to the financial statements (continued)
For the year ended 31 January 2022
1
Accounting policies (continued)
Page 6
Basic financial assets
Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Classification of 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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
income statement
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Morgan Clare (UK) Ltd
Notes to the financial statements (continued)
For the year ended 31 January 2022
1
Accounting policies (continued)
Page 7
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Morgan Clare (UK) Ltd
Notes to the financial statements (continued)
For the year ended 31 January 2022
1
Accounting policies (continued)
Page 8
1.13
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.14
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
12
10
Morgan Clare (UK) Ltd
Notes to the financial statements (continued)
For the year ended 31 January 2022
Page 9
3
Intangible fixed assets
Goodwill
£
Cost
At 1 February 2021 and 31 January 2022
593,173
Amortisation and impairment
At 1 February 2021
469,594
Amortisation charged for the year
59,317
At 31 January 2022
528,911
Carrying amount
At 31 January 2022
64,262
At 31 January 2021
123,579
4
Tangible fixed assets
Fixtures, fittings & equipment
£
Cost
At 1 February 2021
209,657
Additions
17,716
At 31 January 2022
227,373
Depreciation and impairment
At 1 February 2021
191,583
Depreciation charged in the year
18,720
At 31 January 2022
210,303
Carrying amount
At 31 January 2022
17,070
At 31 January 2021
18,074
Morgan Clare (UK) Ltd
Notes to the financial statements (continued)
For the year ended 31 January 2022
Page 10
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
186
Other debtors
75,360
56,799
75,546
56,799
2022
2021
Amounts falling due after more than one year:
£
£
Deferred tax asset
73,576
9,617
Total debtors
149,122
66,416
6
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
580
111
Trade creditors
69,799
52,400
Taxation and social security
42,183
26,364
Other creditors
30,722
15,025
143,284
93,900
7
Creditors: amounts falling due after more than one year
2022
2021
£
£
Other creditors
935,742
935,630
Morgan Clare (UK) Ltd
Notes to the financial statements (continued)
For the year ended 31 January 2022
Page 11
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2022
2021
£
£
330,000
396,000
9
Directors' transactions
Included in creditors falling due after one year are amounts due to Paula Scott of £747,841 (2021: £747,841) and to Philip Scott of £187,900 (2021: £187,789). Both Paula and Philip are directors of the company. Both loans are interest free.
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Philip Scott
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