MORELLE_DAVIDSON_(UK)_LIM - Accounts
MORELLE_DAVIDSON_(UK)_LIM - Accounts
Company Registration No. 03716720 (England and Wales)
FOR THE YEAR ENDED 31 MARCH 2015
COMPANY INFORMATION
Directors
Secretary
Company number
Registered office
Auditors
CONTENTS
Page
Strategic report
1
Directors' report
2
Independent auditors' report
3 - 4
Profit and loss account
5
Balance sheet
6
Cash flow statement
7
Notes to the cash flow statement
8
Notes to the financial statements
9 - 13
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2015
- 1 -
The directors present the strategic report and financial statements for the year ended 31 March 2015.
Review of the business
The results for the year and the financial position at the year end were considered satisfactory by the directors who expect continued growth in the foreseeable future.
Principal risks and uncertainties
The principal risks and uncertainties facing the company are the current economic climate and varying exchange rates.
Key Performance Indicators
The company monitors business performance based on key performance indicators focusing on increasing profitability, improving market share to yield positive economic effect.
On behalf of the board
Director
16 December 2015
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2015
- 2 -
The directors present their report and financial statements for the year ended 31 March 2015.
Results and dividends
The results for the year are set out on page 5.
Directors
The following directors have held office since 1 April 2014:
Auditors
SPW (UK) LLP were appointed auditors to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
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 then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditors
On behalf of the board
Director
INDEPENDENT AUDITORS' REPORT
TO THE MEMBERS OF MORELLE DAVIDSON (UK) LIMITED
- 3 -
We have audited the financial statements of Morelle Davidson (UK) Limited for the year ended 31 March 2015 set out on pages 5 to 13. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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.
Respective responsibilities of directors and auditors
As explained more fully in the Directors' Responsibilities Statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements
-
give a true and fair view of the state of the company's affairs as at 31 March 2015 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion 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.
INDEPENDENT AUDITORS' REPORT (CONTINUED)
TO THE MEMBERS OF MORELLE DAVIDSON (UK) LIMITED
- 4 -
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
for and on behalf of SPW (UK) LLP
Chartered Accountants
Statutory Auditor
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2015
- 5 -
2015
2014
Notes
£
£
Turnover
2
Cost of sales
(5,608,881 )
(5,770,295 )
Gross profit
Administrative expenses
(722,869 )
(778,159 )
Other operating income
Operating profit
3
Interest payable and similar charges
4
(24 )
Profit on ordinary activities before taxation
Tax on profit on ordinary activities
5
(99,209 )
(54,909 )
Profit for the year
13
The profit and loss account has been prepared on the basis that all operations are continuing operations.
There are no recognised gains and losses other than those passing through the profit and loss account.
BALANCE SHEET
AS AT
31 MARCH 2015
- 6 -
2015
2014
Notes
£
£
£
£
Fixed assets
Tangible assets
7
Current assets
Stocks
8
Debtors
9
Cash at bank and in hand
Creditors: amounts falling due within one year
10
(2,207,828 )
(2,157,472 )
Net current assets
Total assets less current liabilities
Provisions for liabilities
11
(10,266 )
(10,266 )
Capital and reserves
Called up share capital
12
Profit and loss account
13
Shareholders' funds
14
Approved by the Board and authorised for issue on 16 December 2015
Director
Director
Company Registration No. 03716720
CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
- 7 -
2015
2014
£
£
£
£
Net cash inflow/(outflow) from operating activities
482,210
(75,770)
Returns on investments and servicing of finance
Interest paid
(24)
1
Net cash (outflow)/inflow for returns on investments and servicing of finance
(24)
1
Taxation
(23,927 )
Capital expenditure
Payments to acquire tangible assets
-
(3,882)
Net cash outflow for capital expenditure
-
(3,882)
Net cash inflow/(outflow) before management of liquid resources and financing
(103,578 )
Increase/(decrease) in cash in the year
(103,578)
NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
- 8 -
1
Reconciliation of operating profit to net cash inflow/(outflow) from operating activities
2015
2014
£
£
Operating profit
Depreciation of tangible assets
7,782
9,728
Decrease/(increase) in stocks
111,769
(86,852)
Increase in debtors
(66,627)
(443,148)
(Decrease)/Increase in creditors within one year
(48,853)
194,222
Net cash inflow/(outflow) from operating activities
482,210
(75,770)
2
Analysis of net funds
1 April 2014
Cash flow
Other non-cash changes
£
£
£
£
Net cash:
Cash at bank and in hand
490,841
-
Bank deposits
-
-
-
-
Net funds
490,841
-
3
Reconciliation of net cash flow to movement in net funds
2015
2014
£
£
Increase/(decrease) in cash in the year
(103,578 )
Movement in net funds in the year
490,841
(103,578)
Opening net funds
428,211
Closing net funds
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
- 9 -
1
Accounting policies
1.1
Accounting convention
1.2
Compliance with accounting standards
The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated).
1.3
Turnover
1.4
Tangible fixed assets and depreciation
Land and buildings Leasehold
Fixtures, fittings & equipment
1.5
Leasing
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
1.6
Stock
Stock is valued at the lower of cost and net realisable value.
1.7
Deferred taxation
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
1.8
Foreign currency translation
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
Turnover
The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the United Kingdom.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2015
- 10 -
3
Operating profit
2015
2014
£
£
Operating profit is stated after charging:
Depreciation of tangible assets
Loss on foreign exchange transactions
-
Operating lease rentals
136,177
98,227
and after crediting:
Profit on foreign exchange transactions
(69,125 )
-
4
Interest payable
2015
2014
£
£
On bank loans and overdrafts
(1 )
5
Taxation
2015
2014
£
£
Domestic current year tax
U.K. corporation tax
Adjustment for prior years
-
Total current tax
Factors affecting the tax charge for the year
Profit on ordinary activities before taxation
Profit on ordinary activities before taxation multiplied by standard rate of UK corporation tax of 21.00% (2014 - 20.00%)
Effects of:
Non deductible expenses
Depreciation add back
1,635
1,946
Capital allowances
(462)
(537)
Other tax adjustments
(2,540)
2,382
(1,195)
4,853
Current tax charge for the year
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2015
- 11 -
6
Dividends
The interim dividend of £150,000 paid to director's relates to a dividend declared on 31 March 2011 which should have been included in the accounts for the year ended 31 March 2011.
7
Tangible fixed assets
Land and buildings Leasehold
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 April 2014 & at 31 March 2015
Depreciation
At 1 April 2014
-
Charge for the year
-
At 31 March 2015
-
Net book value
At 31 March 2015
At 31 March 2014
8
Stocks
2015
2014
£
£
Finished goods and goods for resale
9
Debtors
2015
2014
£
£
Trade debtors
Corporation tax
-
Other debtors
Prepayments and accrued income
-
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2015
- 12 -
10
Creditors: amounts falling due within one year
2015
2014
£
£
Trade creditors
Corporation tax
Other taxes and social security costs
Directors' current accounts
Other creditors
Accruals and deferred income
11
Provisions for liabilities
Deferred tax liability
£
Balance at 1 April 2014 & at 31 March 2015
10,266
The deferred tax liability is made up as follows:
2015
2014
£
£
Accelerated capital allowances
12
Share capital
2015
2014
£
£
Allotted, called up and fully paid
13
Statement of movements on profit and loss account
Profit
and loss
account
and loss
account
£
Balance at 1 April 2014
Profit for the year
Balance at 31 March 2015
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2015
- 13 -
14
Reconciliation of movements in Shareholders' funds
2015
2014
£
£
Profit for the financial year
Opening Shareholders' funds
Closing Shareholders' funds
15
Financial commitments
At 31 March 2015 the company was committed to making the following payments under non-cancellable operating leases in the year to 31 March 2016:
Operating leases which expire:
16
Directors' remuneration
2015
2014
£
£
Remuneration for qualifying services
17
Employees
Number of employees
There were no employees during the year apart from the directors.
Employment costs
2015
2014
£
£
Wages and salaries
Social security costs
18
Control
The ultimate controlling parties are E Abramov and M Abramov as shareholders and directors of the company.