INTERNATIONAL_CARGO_LOGIS - Accounts

The directors present the strategic report for the year ended 31 December 2021.

Mentfield UK Limited ended the financial year with a profit before tax of £412,236, an increase from the previous year’s profit of £305,034. Growth in 2021 predominately came from our Ecommerce fulfilment product line and additional opportunities due to Brexit. Mentfield continue to delivering goods through multi-modal transportation (sea, air and road), value-added services and effective customs brokerage services to ensure the fastest delivery at destination. Turnover increased from £31,434,400 to £46,799,102 and the gross profit increased from £3,933,561 to £7,708,978.

Mentfield UK Limited continues to focus on general freight forwarding services in addition to e-commerce and fulfilment, servicing the retail and wellbeing sector customers. The company recognises that it needs to diversify in order to be competitive in the foreseeable future, especially in light of COVID-19.

Adequate finance has been obtained to take advantage of business opportunities, and the directors consider the state of affairs to be satisfactory.

The company faces a number of business risks and uncertainties due to current trading conditions, with continued pricing pressure from customers and vendors alike. In view of     this the directors are looking carefully at both existing and potential new markets, looking at the political and economic factors effecting business today.

Turnover for the year amounted to £46,799,102 (2020: £31,434,400) mainly due to increased turnover from e-commerce fulfilment and business opportunities due to Brexit.

The profit before tax for the year amounted to £412,236 (2020: £305,034) mainly due to lower employee cost incidental to return on investment and there was a strategic movement by the company to outsource its vehicle fleet which consequently lead to a marginal increase in operating costs, coupled with greater costs control within all areas of the business. Cost of sales amounted to £39,090,124, (2020: £27,500,839). General administrative expenses amounted to £7,412,914 (2020: £3,768,015). The company's working capital and capital expenditure has been financed through bank overdraft amounting to £3,754 (2020: £153,921), a CBILS loan amounting to £433,336 (2020: £500,000), invoice factoring finance amounting to £5,766,313 (2020: £4,053,097) and finance leases amounting to £Nil (2020: £97,026). The company had net assets of £664,820 (2020: £472,922).

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2021.

The principal activity of the company is freight forwarding services.

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £227,000. The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

The company seeks to operate within its agreed overdraft facility with the bank. The company has not entered

into any hedging arrangements in respect of risks relating to trade debtors or trade creditors.

The company is exposed to interest rate risk on its borrowings with the bank. The company is currently reliant on trade debtor factoring and overdraft facilities from the bank and therefore has a cash flow and liquidity risk. The bank is currently satisfied with the company's financial performance and the directors do not think that there is any risk of the facilities being withdrawn.

In January 2022 a significant shareholding in the company was purchased by ICL Holdings, a company incorporated in England and Wales. The ultimate controlling party remained as Yoav Izhari.

The company is consolidating its existing business and has recently commenced offering additional facilities to customers.  The company remains optimistic of expanding its global footprint , considering all political and economic factors as a result of Brexit.

The impact of Brexit on the business is being closely monitored by the board and plans are in place and undergoing execution.

In accordance with the company's articles, a resolution proposing that Jeffreys Henry Audit Limited be reappointed as auditor of the company will be put at a General Meeting.

The directors are responsible 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 then 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;

•     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.

Each Director has taken steps that 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 auditors are aware of that information. The Directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

We have audited the financial statements of International Cargo Logistics Limited (formerly Mentfield UK Limited (the 'company') for the year ended 31 December 2021 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 2021 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's 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.

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the 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 remuneration specified by law are not made; or

•     we have not received all the information and explanations we require for our audit.

As explained more fully in the directors' responsibilities statement, 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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the senior statutory auditor ensured the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the freight forwarding sector;

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions;

• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;

• investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• reading the minutes of meetings of those charged with governance;

• enquiring of management as to actual and potential litigation and claims;

• reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

The income statement has been prepared on the basis that all operations are continuing operations.

International Cargo Logistics Limited (formerly Mentfield UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit B2 Parkway, Cranford Lane, Heston, Middlesex TW5 9QA.

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.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts 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.

These financial statements are consolidated in the financial statements of Myone Limited. The financial statements of Myone Limited may be obtained from Companies House or from the company's registered office.

The financial statements have been prepared on a going concern basis. The company meets its day to day working capital requirements through overdraft facilities, factoring of trade debtors with bank and support from Yoav Izhari. The continuation of the company's trade is dependent upon this continued support. On this basis, the directors have considered that the company will continue to operate for the foreseeable future, and therefore it is appropriate to prepare the accounts on a going concern basis. The financial statements do not include any adjustments that would result from a withdrawal of this support.

Turnover is recognised at the fair value of the consideration received or receivable for 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.

The Company recognises revenue when:

The amount of revenue can be reliably measured;

it is probable that future economic benefits will flow to the entity;

and specific criteria have been met for each of the Company's activities. The revenue recognition point is normally at the expected time of arrival of imports and the expected time of departure of exports.

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:

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.

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

Work in progress is stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined as incurred for the completion of relevant sale.

The cost of work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, work in progress is assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

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.

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.

Basic financial assets, which include debtors and cash and bank balances, 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.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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, 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 payments 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. Amounts 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.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

The tax expense represents the sum of the tax currently payable and deferred 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.

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. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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.

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Government grants shown are in relation to funds received in the year for covid related support schemes initiated by the government to assist with affects of the covid pandemic.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the income statement for the period.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtors, the ageing profile of debtors and historical experience. See note 16 for the net carrying amount of the debtors and associated impairment provision.

The Directors have reviewed the asset lives and associated residual values of all fixed asset classes, and in particular, the useful economic life and residual values of fixtures and fittings, and buildings and have concluded that asset lives and residual values are appropriate.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

An analysis of the company's turnover is as follows:

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate payroll costs (including directors' remuneration) comprised:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

During the year, the company paid dividends to Myone Limited, wholly owned parent company.

The directors are proposing no final dividend payment be made on ordinary shares and did not propose any such payment in the previous year.

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

More information on impairment movements in the year is given in note 11.

The company has a 24% (2020: 24%) shareholding in Mentfield Logistics Vietnam Company Limited, a company incorporated in Vietnam.

The trade debtors as noted above are subject to factoring with RBS Invoice Finance Limited with a facility limit of £7,150,000 (2020: £5,000,000). The creditor due to the factoring company in respect of the trade debtors is included within 'creditors: amounts falling due within one year' and amounted to £5,768,437 (2020 - £4,053,098).

Amounts owed by group undertakings and related parties are unsecured, interest free and are recoverable on demand.

Bank borrowings

There is a bank guarantee in the sum of £20,000 to which the National Westminster Bank plc has placed on deposit in favour of HM Revenue & Customs for Duty and VAT.UK Government CBILS loan scheme. It has a fixed annual interest rate of 2.95% over the base interest rate and both principal and interest accruing are repayable on a monthly basis with the final instalment due to be repaid by 29 April 2026. The loan is secured against cash held.

Other borrowings

There is a facility with the RBS Invoice Finance Limited in respect of factoring facility. The facility is denominated in a mixture of Pounds Sterling, US Dollars, and the Euro and has a discount rate of 1.95% (2020: 2.00%) on both UK and exports debt plus service charges. This factoring facility for the trade debtors is secured by fixed and floating charges over various assets of the company. The carrying amount as at year end is £5,768,437 (2020 - £4,053,098) in respect of factoring creditors.

Bank overdrafts

There is a facility with the National Westminster Bank plc in respect of overdrawn balances. This overdraft facility is secured by fixed charges and negative pledge over all assets of the company. The carrying amount as at year end is £3,754 (2020: £153,921) in respect of overdrafts.

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

The above provisions represent the dilapidations provison on the future expected repair and removal costs required to restore the company´s leased buildings to their fair and original condition at the end of the lease term.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

The class 'A', 'B' and 'C' Ordinary shares rank pari passu except for entitlements to dividends which may vary.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The ultimate parent company is Ideyl Ltd, a company incorporated in England and Wales.

The ultimate parent company prepared the consolidated financial statements which include the results of this company which can be found at the company's registered office.

The ultimate controlling party is Yoav Izhari.

There is no other key management personnel other than the directors of the company. See note 9 for disclosure of the directors' remuneration and compensation.

The company is exempt from disclosing other related party transactions as they are with other companies that are wholly owned within the group.

Other than the transactions disclosed below, the Company’s other related party transactions were with wholly owned subsidiaries and so have not been disclosed.

Sales made by the reporting entity during the accounting period include £108,000 (2020 - £1,238,968) invoiced to a company by the name of Mentfield (1983) Limited. Purchases include charges of £188,187 (2020 - £474,469) invoiced by the same company to the reporting entity. The company is incorporated in Israel and is related by family connections. The company does not control or have any influence over the reporting entity. As at 31 December 2020 the amount owing from Mentfield (1983) Limited to the reporting entity was £447,756 (2020 - £339,754), and this is disclosed within 'Trade debtors'. As at 31 December 2021 the reporting entity was also owed £Nil (2020 - £1,849,989) and this is disclosed within 'other loans' within 'Investment'. In addition, as at 31 December 2020, Mentfield (1983) Limited owed the reporting entity £Nil (2020 - £63,750 creditor) and this is disclosed within 'Trade debtors'.

Purchases include charges of £672 (2020 - £80,362) invoiced to the reporting entity by a company by the name of Mentfield Logistics Vietnam Co. Limited and sales include £Nil (2020 - £75,879) charged to the same company. The company is incorporated in Vietnam and is an associate of the reporting entity. As at 31 December 2021 the amount owing from Mentfield Logistics Co. Limited to the reporting entity was £10,486 (2020 - £11,159), and this is disclosed within 'Trade debtors'.

Sales made by the reporting entity during the accounting period include £21,689 (2020 - £24,388) invoiced to a company by the name of Prolog SAS. Purchases include charges of £21,080 (2020 - £23,948) invoiced by the same company to the reporting entity. The company is incorporated in France and is an associated company of Myone Limited, the parent company. As at 31 December 2021 the reporting entity was owed £1,688 (2020 - £4,040) by Prolog SAS and this is included within 'Trade debtors'.

Sales made by the reporting entity during the accounting period include £928 (2020 - £2,195) invoiced to a company by the name of Alison Transport Inc. Purchases include charges of £15 (2020 - £23,948) invoiced by the same company to the reporting entity. The company is incorporated in the United States and is an associated company of Myone Limited, the parent company. As at 31 December 2021 the reporting entity was owed £45,586 (2020 - £45,586) by Alison Transport Inc.

During the year the company had net borrowings of £880,000 (2020: £Nil) from Yoav Izhari, a director of the company. At 31 December 2021 the amount of £880,000 (2020: £Nil) was payable to Yoav Izhari. The loan is interest free and repayable on demand.

In January 2022 a significant shareholding in the company was purchased by ICL Holdings Limited, a company incorporated in England and Wales. Ideyl Limited remains the ultimate parent undertaking. Yoav Izhari remains the ultimate controlling party.

A balance of £102,000 (2020: £102,000) held in bank reserve accounts may not be available for use by the company because of bank guarantees provided by bank,