The Martlet Group Ltd - Limited company accounts 20.1

REGISTERED NUMBER: 03004608 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE PERIOD 31 MAY 2018 TO 29 MAY 2019

FOR

THE MARTLET GROUP LTD

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

6

Balance Sheet

7

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

P J Butler

I G F Wilson

SECRETARY:

Ion Management Limited

REGISTERED OFFICE:

Units 7-8B Mid Sussex Business Park

Folders Lane East

Ditchling

Hassocks

West Sussex

BN6 8SE

REGISTERED NUMBER:

03004608 (England and Wales)

AUDITORS:

Watson Associates (Audit Services) Ltd

30 - 34 North Street

Hailsham

East Sussex

BN27 1DW

The directors present their strategic report for the period 31 May 2018 to 29 May 2019.

REVIEW OF BUSINESS

It has been a challenging year in the market, which has seen a drop in the gross profit % on the previous

year, as well as a drop in revenue and a net loss.

The directors are confident for the future and feel that the company will see an increase in its revenue and

profits.

In March 2020 its operations in the UK were reduced due to the imposed lockdown as a result of the

COVID-19 pandemic.

This continues to be an unprecedented situation that has caused a significant amount of uncertainty for the

company and the wider economy. The principle risks and uncertainties the company continues to have as a

result of COVID-19 are liquidity risk, credit risk and strategic risk.

The directors have considered the potential implications of COVID-19 and have taken the following actions to

mitigate the principle risks and uncertainties. All measures taken by the company have taken into account the

effect of the extent and duration of social distancing measures announced by the government in March 2020,

as well as the impact on the economy and asset prices generally:

-Utilised the government's job retention scheme

-Deferral of PAYE payments in accordance with government guidelines

-Utilised the CBILS loan facility

Further measures are reviewed on an ongoing basis.

PRINCIPAL RISKS AND UNCERTAINTIES

Despite the current recovery in world activity, further fluctuations in the world economy remain the principal

risk and uncertainty that the company faces in the future.

ON BEHALF OF THE BOARD:

I G F Wilson - Director

23 July 2020

The directors present their report with the financial statements of the company for the period 31 May 2018 to 29 May 2019.

DIVIDENDS

Interim dividends were paid during the period of £nil

The directors recommend that no final dividend be paid.

The total distribution of dividends for the period ended 29 May 2019 was £nil.

DIRECTORS

The directors shown below have held office during the whole of the period from 31 May 2018 to the date of

this report.

P J Butler

I G F Wilson

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including

Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of

Ireland'. 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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the

Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps

that he ought to have taken as a director in order to make himself aware of any relevant audit information and

to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Watson Associates (Audit Services) Ltd, will be proposed for re-appointment at the forthcoming

Annual General Meeting.

ON BEHALF OF THE BOARD:

I G F Wilson - Director

23 July 2020

Opinion

We have audited the financial statements of The Martlet Group Ltd (the 'company') for the period ended

29 May 2019 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of

Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 29 May 2019 and of its loss for the period then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and

applicable law. Our responsibilities under those standards are further described in the Auditors'

responsibilities for the audit of the financial statements section of our report. We are independent of the

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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to

report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the

Strategic Report and the Report of the Directors, but does not include the financial statements and our Report

of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such

material inconsistencies or apparent material misstatements, we are required to determine whether there is a

material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of

the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free

from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

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

Report of the Auditors.

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 a Report of the Auditors 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.

Stephen James Moore (Senior Statutory Auditor)

for and on behalf of Watson Associates (Audit Services) Ltd

30 - 34 North Street

Hailsham

East Sussex

BN27 1DW

23 July 2020

TURNOVER

12,323,506

22,235,470

Cost of sales

(9,376,905

)

(16,865,919

)

GROSS PROFIT

2,946,601

5,369,551

Distribution costs

(1,679,707

)

(2,783,347

)

Administrative expenses

(1,245,767

)

(2,057,048

)

OPERATING PROFIT

4

21,127

529,156

Provision for amounts recovera

ble

5

(30,000

)

-

(8,873

)

529,156

Interest payable and similar expenses

6

(112,120

)

(143,540

)

(LOSS)/PROFIT BEFORE TAXATION

(120,993

)

385,616

Tax on (loss)/profit

7

7,007

114,500

(LOSS)/PROFIT FOR THE FINANCIAL PERIOD

(113,986

)

500,116

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE PERIOD

(113,986

)

500,116

FIXED ASSETS

Intangible assets

9

580,957

420,654

Tangible assets

10

307,906

502,525

888,863

923,179

CURRENT ASSETS

Stocks

11

1,973,749

2,774,443

Debtors

12

5,770,672

5,518,244

Cash at bank and in hand

34,704

17,755

7,779,125

8,310,442

CREDITORS

Amounts falling due within one year

13

(5,572,493

)

(5,853,843

)

NET CURRENT ASSETS

2,206,632

2,456,599

TOTAL ASSETS LESS CURRENT LIABILITIES

3,095,495

3,379,778

CREDITORS

Amounts falling due after more than one year

14

(160,211

)

(323,501

)

PROVISIONS FOR LIABILITIES

17

(27,980

)

(34,987

)

NET ASSETS

2,907,304

3,021,290

CAPITAL AND RESERVES

Called up share capital

18

5,271

5,271

Share premium

19

247,588

247,588

Retained earnings

19

2,654,445

2,768,431

SHAREHOLDERS' FUNDS

2,907,304

3,021,290

The financial statements were approved by the Board of Directors and authorised for issue on 23 July 2020 and were signed on its behalf by:

I G F Wilson - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 December 2016

5,271

2,563,315

247,588

2,816,174

Changes in equity

Dividends

-

(295,000

)

-

(295,000

)

Total comprehensive income

-

500,116

-

500,116

Balance at 30 May 2018

5,271

2,768,431

247,588

3,021,290

Changes in equity

Total comprehensive loss

-

(113,986

)

-

(113,986

)

Balance at 29 May 2019

5,271

2,654,445

247,588

2,907,304

Cash flows from operating activities

Cash generated from operations

1

1,389,172

(525,216

)

Interest paid

(102,488

)

(128,139

)

Interest element of hire purchase payments paid

(9,632

)

(15,401

)

Tax paid

42,458

(1,640

)

Taxation refund

-

21,993

Net cash from operating activities

1,319,510

(648,403

)

Cash flows from investing activities

Purchase of intangible fixed assets

(110,889

)

(20,165

)

Purchase of tangible fixed assets

(50,043

)

(136,595

)

Sale of tangible fixed assets

25,600

117,999

Net cash from investing activities

(135,332

)

(38,761

)

Cash flows from financing activities

New loans in year

500,000

250,000

Loan repayments in year

(123,921

)

(44,630

)

Movement in intercompany balances

(781,370

)

-

Capital repayments in year

(46,764

)

(150,596

)

Amount introduced by directors

-

340,486

Amount withdrawn by directors

-

(340,486

)

Equity dividends paid

-

(295,000

)

Net cash from financing activities

(452,055

)

(240,226

)

Increase/(decrease) in cash and cash equivalents

732,123

(927,390

)

Cash and cash equivalents at beginning of period

2

(3,929,979

)

(3,002,589

)

Cash and cash equivalents at end of period

2

(3,197,856

)

(3,929,979

)

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period

Period

31.5.18

1.12.16

to

to

29.5.19

30.5.18

£

£

(Loss)/profit before taxation

(120,993

)

385,616

Depreciation charges

160,218

208,562

Loss on disposal of fixed assets

9,431

11,070

Finance costs

112,120

143,540

160,776

748,788

Decrease in stocks

800,694

188,702

Decrease/(increase) in trade and other debtors

538,577

(447,987

)

Decrease in trade and other creditors

(110,875

)

(1,014,719

)

Cash generated from operations

1,389,172

(525,216

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in

respect of these Balance Sheet amounts:

Period ended 29 May 2019

29.5.19

31.5.18

£

£

Cash and cash equivalents

34,704

17,755

Bank overdrafts

(3,232,560

)

(3,947,734

)

(3,197,856

)

(3,929,979

)

Period ended 30 May 2018

30.5.18

1.12.16

£

£

Cash and cash equivalents

17,755

3,036

Bank overdrafts

(3,947,734

)

(3,005,625

)

(3,929,979

)

(3,002,589

)

1.	STATUTORY INFORMATION

The Martlet Group Ltd is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information

page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Critical accounting judgements and key sources of estimation uncertainty

No significant judgements have had to be made by management in preparing these financial

statements.

There were no key assumptions made concerning the future, and other key sources of estimation

uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the

carrying amounts of assets and liabilities within the next financial year.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts,

rebates, value added tax and other sales taxes.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured

at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful life of ten years.

Website development is being amortised evenly over its estimated useful life of ten years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

33% on cost and 25% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due

allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling

costs in bringing stocks to their present location and condition.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of

financial assets and liabilities like trade and other accounts receivable and payable, loans from banks

and other third parties, and loans to related parties.

Debt instruments that are payable or receivable within one year, are measured, initially and

subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or

received; other debt instruments are initially measured at present value of the future payments and

subsequently at amortised cost using the effective interest method.

Financial assets that are measured at cost and amortised cost are assessed at the end of each

reporting period for objective evidence of impairment. If objective evidence of impairment is found, an

impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the balance sheet only when

there is an 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.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Statement of

Comprehensive Income, except to the extent that it relates to items recognised in other

comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been

enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at

the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods

different from those in which they are recognised in financial statements. Deferred tax is measured

using tax rates and laws that have been enacted or substantively enacted by the period end and that

are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable

that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at

the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of

exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at

the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet.

Those held under hire purchase contracts are depreciated over their estimated useful lives. Those

held under finance leases are depreciated over their estimated useful lives or the lease term,

whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The

capital element of the future payments is treated as a liability.

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

period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the

company's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

Period

Period

31.5.18

1.12.16

to

to

29.5.19

30.5.18

£

£

Wages and salaries

1,289,645

2,179,012

Social security costs

141,606

225,431

Other pension costs

22,477

33,366

1,453,728

2,437,809

The average number of employees during the period was as follows:

Period

Period

31.5.18

1.12.16

to

to

29.5.19

30.5.18

Sales

6

6

Warehouse and distribution

12

18

Office and management

20

23

38

47

Period

Period

31.5.18

1.12.16

to

to

29.5.19

30.5.18

£

£

Directors' remuneration

457,393

615,873

Information regarding the highest paid director is as follows:

Period

Period

31.5.18

1.12.16

to

to

29.5.19

30.5.18

£

£

Emoluments etc

299,000

398,206

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

Period

Period

31.5.18

1.12.16

to

to

29.5.19

30.5.18

£

£

Other operating leases

201,644

308,446

Depreciation - owned assets

80,792

140,012

Depreciation - assets on hire purchase contracts

37,360

68,552

Loss on disposal of fixed assets

9,431

11,070

Development costs amortisation

30,983

-

Website development amortisation

11,082

-

Auditors' remuneration

35,000

38,880

Foreign exchange differences

(109,375

)

(96,924

)

5.	EXCEPTIONAL ITEMS

Period

Period

31.5.18

1.12.16

to

to

29.5.19

30.5.18

£

£

Provision for amounts recovera

ble

(30,000

)

-

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

Period

Period

31.5.18

1.12.16

to

to

29.5.19

30.5.18

£

£

Bank interest

91,907

125,035

Bank loan interest

10,581

2,002

Interest on late tax

-

1,102

Hire purchase

9,632

15,401

112,120

143,540

7.

TAXATION

Analysis of the tax credit

The tax credit on the loss for the period was as follows:

Period

Period

31.5.18

1.12.16

to

to

29.5.19

30.5.18

£

£

Current tax:

Previous year adjustment

-

(149,487

)

Deferred tax

(7,007

)

34,987

Tax on (loss)/profit

(7,007

)

(114,500

)