AMDA Trading Limited - Period Ending 2021-12-31

AMDA TRADING LIMITED - Company Information

AMDA Trading Limited 07988374 false 2021-01-01 2021-12-31 2021-12-31 The principal activity of the company is sale, both retail and wholesale, of frabrics and accessories Digita Accounts Production Advanced 6.30.9574.0 true true true true 07988374 2021-01-01 2021-12-31 07988374 2021-12-31 07988374 bus:OrdinaryShareClass1 2021-12-31 07988374 bus:OrdinaryShareClass2 2021-12-31 07988374 core:AcceleratedTaxDepreciationDeferredTax 2021-12-31 07988374 core:RetainedEarningsAccumulatedLosses 2021-12-31 07988374 core:ShareCapital 2021-12-31 07988374 core:CurrentFinancialInstruments 2021-12-31 07988374 core:CurrentFinancialInstruments core:WithinOneYear 2021-12-31 07988374 core:BetweenOneFiveYears 2021-12-31 07988374 core:BetweenTwoFiveYears 2021-12-31 07988374 core:WithinOneYear 2021-12-31 07988374 core:OtherPropertyPlantEquipment 2021-12-31 07988374 core:DeferredTaxation 2021-12-31 07988374 bus:FRS102 2021-01-01 2021-12-31 07988374 bus:Audited 2021-01-01 2021-12-31 07988374 bus:FullAccounts 2021-01-01 2021-12-31 07988374 bus:RegisteredOffice 2021-01-01 2021-12-31 07988374 bus:Director1 2021-01-01 2021-12-31 07988374 bus:Director2 2021-01-01 2021-12-31 07988374 bus:OrdinaryShareClass1 2021-01-01 2021-12-31 07988374 bus:OrdinaryShareClass2 2021-01-01 2021-12-31 07988374 bus:PrivateLimitedCompanyLtd 2021-01-01 2021-12-31 07988374 1 2021-01-01 2021-12-31 07988374 core:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 07988374 core:ShareCapital 2021-01-01 2021-12-31 07988374 core:Buildings 2021-01-01 2021-12-31 07988374 core:ComputerEquipment 2021-01-01 2021-12-31 07988374 core:FurnitureFittings 2021-01-01 2021-12-31 07988374 core:LeaseholdImprovements 2021-01-01 2021-12-31 07988374 core:OtherPropertyPlantEquipment 2021-01-01 2021-12-31 07988374 core:PlantMachinery 2021-01-01 2021-12-31 07988374 core:DeferredTaxation 2021-01-01 2021-12-31 07988374 core:UKTax 2021-01-01 2021-12-31 07988374 1 2021-01-01 2021-12-31 07988374 1 2021-01-01 2021-12-31 07988374 countries:EnglandWales 2021-01-01 2021-12-31 07988374 2020-12-31 07988374 core:RetainedEarningsAccumulatedLosses 2020-12-31 07988374 core:ShareCapital 2020-12-31 07988374 core:OtherPropertyPlantEquipment 2020-12-31 07988374 core:DeferredTaxation 2020-12-31 07988374 2019-07-01 2020-12-31 07988374 2020-12-31 07988374 bus:OrdinaryShareClass1 2020-12-31 07988374 bus:OrdinaryShareClass2 2020-12-31 07988374 core:AcceleratedTaxDepreciationDeferredTax 2020-12-31 07988374 core:RetainedEarningsAccumulatedLosses 2020-12-31 07988374 core:ShareCapital 2020-12-31 07988374 core:CurrentFinancialInstruments 2020-12-31 07988374 core:CurrentFinancialInstruments core:WithinOneYear 2020-12-31 07988374 core:BetweenOneFiveYears 2020-12-31 07988374 core:BetweenTwoFiveYears 2020-12-31 07988374 core:WithinOneYear 2020-12-31 07988374 core:OtherPropertyPlantEquipment 2020-12-31 07988374 bus:OrdinaryShareClass1 2019-07-01 2020-12-31 07988374 bus:OrdinaryShareClass2 2019-07-01 2020-12-31 07988374 1 2019-07-01 2020-12-31 07988374 core:RetainedEarningsAccumulatedLosses 2019-07-01 2020-12-31 07988374 core:ShareCapital 2019-07-01 2020-12-31 07988374 core:UKTax 2019-07-01 2020-12-31 07988374 2019-06-30 07988374 core:RetainedEarningsAccumulatedLosses 2019-06-30 07988374 core:ShareCapital 2019-06-30 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 07988374

AMDA Trading Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2021

AMDA Trading Limited

Contents

Company Information	1
Strategic Report	2 to 3
Directors' Report	4
Statement of Directors' Responsibilities	5
Independent Auditor's Report	6 to 9
Profit and Loss Account	10
Balance Sheet	11
Statement of Changes in Equity	12
Statement of Cash Flows	13
Notes to the Financial Statements	14 to 26

AMDA Trading Limited

Company Information

Directors

Mr D Ahronee

Mr A Mahalla

Registered office

82 Middlesex Street
London
E1 7EZ

Auditors

MG Audit Services Limited
166 College Road
Harrow
Middlesex
HA1 1BH

AMDA Trading Limited

Strategic Report for the Year Ended 31 December 2021

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

Fair review of the business

Full results for the period are set out on page 10.

The Directors consider the profit achieved on ordinary activities before taxation of £4,542,829 to be satisfactory given the existing trading conditions, risk to the company's market share from new competition in the area and stricter import/export controls imposed by countries with whom the company trades.

Turnover has increased over the previous twelve months, due to mainly to increased exports as a result of new product lines introduced which proved successful. The corresponding figures are over an 18month period.

No significant changes in the nature of the company's principal activities occurred during the period.

The corresponding KPIs are over an 18month period. The company has developed a major customer in Nigeria, but this achieves lower margins.

Principal risks and uncertainties

The company faces a number of business risks and uncertainities due to exposure to foreign currency fluctuations, new competition, stricter trading conditions and product obsolescence. In view of this, the directors look carefully at both existing and potential new markets. Foreign exchange risks are mitigated by careful use of currency contracts. Adequate finance exists to take advantage of business opportunities and the directors consider the state of affairs to be satisfactory, given the existing trading conditions.

The company has face difficulty in receiving funds from its trade with customers from Nigeria. Since March 2019 restrictions had been imposed over the purchase of US dollars to import foreign goods, such as textile fabrics.

Like all businesses, the company continues to face an entirely unprecedented risk in Covid-19. This is expected to have an impact both on achieved sales and the supply chain. The company has reserves to ensure that it is able to meet all needs for the foreseeable future.

The Directors will endeavor to increase the company's market share by remaining competitive in the market place, sourcing new products and suitable investment opportunities.

Future developments

The directors anticipate the business environment will remain competitive. they believe that the company is in a good financial position and that the risks that have been identified are being well managed. With careful focus on diversifications of new product lines, as well as continuing review of the state of the market and the activities of competitors. the directors are confident in the company's ability to maintain and build on this position, albeit with cautious growth expectations.

AMDA Trading Limited

Strategic Report for the Year Ended 31 December 2021 (continued)

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs	Unit	2021	2020
Turnover	£	29,684,232	33,265,677
Gross Profit	%	19	18

Financial instruments

The company has exposure to price, credit, liquidity and cash flow risks arising from trading activities. The company manages these risks by a combination of limiting exposure to foreign exchange balances, by invoicing customers in Sterling and ensuring all suppliers are paid within agreed trading terms. In addition, the company maintains healthy cash reserves.

Approved and authorised by the Board on 20 December 2022 and signed on its behalf by:

.........................................
Mr D Ahronee
Director

AMDA Trading Limited

Directors' Report for the Year Ended 31 December 2021

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

Principal activity

The principal activity of the company is sale, both retail and wholesale, of frabrics and accessories

Results and dividends

The results for the year and state of affairs of the company for the year set out in the financial statements on pages 10 to 26.

Interim ordinary dividends were paid amounting to £6,000. The directors do not recommend payment of a final dividend.

Directors of the company

The directors who held office during the year were as follows:

Mr D Ahronee

Mr A Mahalla

Post reporting date events

There are no matters to report as post balance sheet events.

Auditor

Following Alan Cooper Saunders Angel's merger with MG Group in May 2022, MG Audit Services Ltd have been appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be appointed will be put at a General Meeting.

Disclosure of information to the auditors

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.

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Information included in the Strategic Report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of future developments and financial instruments.

Approved and authorised by the Board on 20 December 2022 and signed on its behalf by:

.........................................
Mr D Ahronee
Director

AMDA Trading Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

•	select suitable accounting policies and apply them consistently;

•	make judgements and accounting estimates that are reasonable and prudent;

•	state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

•	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

AMDA Trading Limited

Independent Auditor's Report to the Members of AMDA Trading Limited

Opinion

We have audited the financial statements of AMDA Trading Limited (the 'company') for the year ended 31 December 2021, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

•	give a true and fair view of the state of the company's affairs as at 31 December 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 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 director's 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 original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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.

AMDA Trading Limited

Independent Auditor's Report to the Members of AMDA Trading Limited (continued)

Opinion on other matter prescribed by the Companies Act 2006

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

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

•	the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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 5], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

AMDA Trading Limited

Independent Auditor's Report to the Members of AMDA Trading Limited (continued)

The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and accessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that 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 retail sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental (including Waste Electrical and Electronic Equipment recycling (WEEE) Regulations 2013) and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
-identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance thorughout 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; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud thorugh 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 set out in note 2 were indicative of potential bias; and
- 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; and
- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, 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: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

AMDA Trading Limited

Independent Auditor's Report to the Members of AMDA Trading Limited (continued)

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.

......................................
Gavin Fernandes FCA (Senior Statutory Auditor)
For and on behalf of MG Audit Services Limited, Statutory Auditor

166 College Road
Harrow
Middlesex
HA1 1BH

21 December 2022

AMDA Trading Limited

Profit and Loss Account for the Year Ended 31 December 2021

	Note	2021 £	2020 £
Turnover	3	29,684,232	33,265,677
Cost of sales		(24,142,860)	(27,336,758)
Gross profit		5,541,372	5,928,919
Administrative expenses		(1,114,459)	(1,342,378)
Other operating income	4	115,359	199,378
Operating profit	5	4,542,272	4,785,919
Other interest receivable and similar income		1,112	19,028
Amounts written off investments		-	(124,599)
Interest payable and similar expenses		(555)	(2,949)
		557	(108,520)
Profit before tax		4,542,829	4,677,399
Tax on profit	10	(863,333)	(912,288)
Profit for the financial year		3,679,496	3,765,111

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

AMDA Trading Limited

(Registration number: 07988374)
Balance Sheet as at 31 December 2021

	Note	2021 £	2020 £
Fixed assets
Tangible assets	11	13,950	25,746
Investment property	12	1,650,000	1,650,000
		1,663,950	1,675,746
Current assets
Stocks	13	849,697	987,745
Debtors	14	396,516	528,749
Cash at bank and in hand		7,402,109	5,344,981
		8,648,322	6,861,475
Creditors: Amounts falling due within one year	15	(224,385)	(2,121,083)
Net current assets		8,423,937	4,740,392
Total assets less current liabilities		10,087,887	6,416,138
Provisions for liabilities	16	(1,053)	(2,800)
Net assets		10,086,834	6,413,338
Capital and reserves
Called up share capital		3,334	3,334
Retained earnings		10,083,500	6,410,004
Shareholders' funds		10,086,834	6,413,338

Approved and authorised by the Board on 20 December 2022 and signed on its behalf by:

.........................................
Mr D Ahronee
Director

.........................................
Mr A Mahalla
Director

AMDA Trading Limited

Statement of Changes in Equity for the Year Ended 31 December 2021

	Share capital £	Retained earnings £	Total £
At 1 January 2021	3,334	6,410,004	6,413,338
Profit for the year	-	3,679,496	3,679,496
Dividends	-	(6,000)	(6,000)
At 31 December 2021	3,334	10,083,500	10,086,834

	Share capital £	Retained earnings £	Total £
At 1 July 2019	2,000	6,650,893	6,652,893
Profit for the year	-	3,765,111	3,765,111
Dividends	-	(4,006,000)	(4,006,000)
New share capital subscribed	1,334	-	1,334
At 31 December 2020	3,334	6,410,004	6,413,338

AMDA Trading Limited

Statement of Cash Flows for the Year Ended 31 December 2021

	Note	2021 £	2020 £
Cash flows from operating activities
Profit for the year		3,679,496	3,765,111
Adjustments to cash flows from non-cash items
Depreciation and amortisation	5	11,796	19,211
Finance income		(1,112)	(19,028)
Finance costs		555	127,548
Income tax expense	10	863,333	912,288
Foreign exchange gains/losses		(185)	302
		4,553,883	4,805,432
Working capital adjustments
Decrease in stocks	13	138,048	85,603
Decrease in trade debtors	14	132,233	228,727
(Decrease)/increase in trade creditors	15	(1,896,698)	752,864
Cash generated from operations		2,927,466	5,872,626
Income taxes paid	10	(865,080)	(915,417)
Net cash flow from operating activities		2,062,386	4,957,209
Cash flows from investing activities
Interest received		1,112	19,028
Cash flows from financing activities
Interest paid		(555)	(2,949)
Proceeds from issue of ordinary shares, net of issue costs		-	1,334
Dividends paid	20	(6,000)	(4,006,000)
Net cash flows from financing activities		(6,555)	(4,007,615)
Net increase in cash and cash equivalents		2,056,943	968,622
Cash and cash equivalents at 1 January		5,344,981	4,376,661
Effect of exchange rate fluctuations on cash held		185	(302)
Cash and cash equivalents at 31 December		7,402,109	5,344,981

AMDA Trading Limited

Notes to the Financial Statements for the Year Ended 31 December 2021

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
82 Middlesex Street
London
E1 7EZ

These financial statements were authorised for issue by the Board on 20 December 2022.

2	Accounting policies

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Disclosure of long or short period

The corresponding figures cover an 18 month period from 1st July 2019 to 31st December 2020 and will not be entirely comparable.

Going concern

The Directors anticipate that the activities of the company will be impacted by Covid-19. However they are confident that resources are and will continue to be adequate and therefore consider that the going concern basis is appropriate.

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

AMDA Trading Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

2	Accounting policies (continued)

Judgements and key sources of estimation uncertainty

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

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Under the company's standard terms this is normally at the point of dispatch.

Government grants

Government grants are recognised at the fair value of the asset received 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.

Foreign currency transactions and balances

Transactions in currencies other than pounds sterling are recorded at the rates of exchanges 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 lsoses arising on translation in the period are included in profit and loss.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

AMDA Trading Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

2	Accounting policies (continued)

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Plant, machinery and equipment	Over 10 years
Office furniture	Over 5 years
Computer equipment	Over 3 years
Shopfittings	Over 10 years
Leasehold fixtures	Over the life of the lease

Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is intially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

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.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.

AMDA Trading Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

2	Accounting policies (continued)

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

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 leases asset are consumed.

Rental income from operating leases is reocgnised 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.

Defined contribution pension obligation

Payments to defined contribution reitrement benefit schemes are charged as an expense as they fall due.

Related parties

For the purposes of these financial statements, a party is considered to be related to the company if:
(i) the party has the ability, directly or indirectly, through one or more intermediaries, to control the Company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the Company;
(ii) the Company and the party are subject to common control;
(iii) the party is an associate of the Company or a joint venture in whoch the Company is a venturer;
(iv) the party is a member of key management personnel of the Company or the Company's parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals;
(v) the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals; or
(vi) the party is a post-employment benefit plan which is for the benefit of employees of the Company or of any entity that is a related party of the Company.
(vii) the party, or any member of a group of which it is part, provides key management personnel services to the company or its parent.

Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity.

AMDA Trading Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

2	Accounting policies (continued)

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.

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

	Year ended 31 December 2021 £	1 July 2019 to 31 December 2020 £
Sale of goods	29,684,232	33,265,677

The analysis of the company's turnover for the year by market is as follows:

	Year ended 31 December 2021 £	1 July 2019 to 31 December 2020 £
Sale of goods, UK	246,456	506,614
Sales of goods, Worldwide	29,437,776	32,759,063
	29,684,232	33,265,677

4	Other operating income

The analysis of the company's other operating income for the year is as follows:

	Year ended 31 December 2021 £	1 July 2019 to 31 December 2020 £
Government grants	53,438	75,875
Rental Income arising from Investment properties	61,921	123,503
	115,359	199,378

5	Operating profit

Arrived at after charging/(crediting)

AMDA Trading Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

5	Operating profit (continued)

	Year ended 31 December 2021 £	1 July 2019 to 31 December 2020 £
Depreciation expense	11,796	19,211
Foreign exchange (gains)/losses	(185)	302
Rent, rates, service charges and insurance	180,034	207,123
Auditor's remuneration - The audit of the company's annual accounts	11,500	8,500
Government grants receivable	(53,438)	(75,875)

6	Government grants

Other income amounting to £53,438 represents government grants and assistance received (2020: £75,875) to combat the threat on the company's business posed by the Covid-19 pandemic.
The amount of grants recognised in the financial statements was £53,438 (2020 - £75,875).

7	Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

	Year ended 31 December 2021 £	1 July 2019 to 31 December 2020 £
Wages and salaries	552,023	730,832
Social security costs	53,811	74,091
Pension costs, defined contribution scheme	4,911	104,852
	610,745	909,775

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

	2021 No.	2020 No.
Management	4	4
Sales	3	3
Designers	2	2
Packaging	6	4
	15	13

AMDA Trading Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

8	Directors' remuneration

The directors' remuneration for the year was as follows:

	Year ended 31 December 2021 £	1 July 2019 to 31 December 2020 £
Remuneration	180,000	249,838
Directors pensions (Defined contribution)	-	80,000
	180,000	329,838

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2020 - 2).

9	Auditors' remuneration

	Year ended 31 December 2021 £	1 July 2019 to 31 December 2020 £
Audit of the financial statements	11,500	8,500

Taxation

Tax charged/(credited) in the profit and loss account

	2021 £	2020 £
Current taxation
UK corporation tax	865,080	915,417
Deferred taxation
Arising from origination and reversal of timing differences	(1,747)	(3,129)
Tax expense in the income statement	863,333	912,288

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2020 - the same as the standard rate of corporation tax in the UK) of 19% (2020 - 19%).

The differences are reconciled below:

AMDA Trading Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

10	Taxation (continued)

	2021 £	2020 £
Profit before tax	4,542,829	4,677,399
Corporation tax at standard rate	863,137	888,706
Effect of expense not deductible in determining taxable profit (tax loss)	52	52
Deferred tax credit from unrecognised tax loss or credit	(207)	(3,129)
Tax increase from effect of capital allowances and depreciation	351	2,985
Other tax effects for reconciliation between accounting profit and tax expense (income)	-	23,674
Total tax charge	863,333	912,288

Deferred tax

Deferred tax assets and liabilities

2021	Asset £	Liability £
	-	1,053
	-	1,053

2020	Asset £	Liability £
	-	2,800
	-	2,800

The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £1,053 (2020 - £2,800). The deferred tax liability relating to accelerated capital allowances is expected to reverse in future years as accelerated capital allowances reduce.

AMDA Trading Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

11	Tangible assets

	Other tangible assets £	Total £
Cost or valuation
At 1 January 2021	129,642	129,642
At 31 December 2021	129,642	129,642
Depreciation
At 1 January 2021	103,896	103,896
Charge for the year	11,796	11,796
At 31 December 2021	115,692	115,692
Carrying amount
At 31 December 2021	13,950	13,950
At 31 December 2020	25,746	25,746

12	Investment properties

	2021 £
At 1 January	1,650,000
At 31 December	1,650,000

Investment property comprises of one commercial unit and five residential flats. The property was independently valued between £1,650,000 and £1,700,000 by Golden Key Estates Agents in December 2022, who are experienced in valuing similar residential and commercial properties on the basis of achievable rents. The valuations was carried out on the instructions of Directors. The Directors have reconsidered the valuation based upon currently achieved rents and have concluded that a lower value is appropriate.

Stocks

	31 December 2021 £	31 December 2020 £
Other inventories	849,697	987,745

The cost of stocks recognised as an expense in the year amounted to £24,142,860 (2020: £27,336,758).

AMDA Trading Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

Debtors

Current	2021 £	2020 £
Other debtors	60,578	61,294
Prepayments	3,073	5,497
Accrued income	332,865	461,958

Included in other debtors is a rent deposit of £60,000, which is secured by a fixed charge in favour of the landlord.

Creditors

	Note	31 December 2021 £	31 December 2020 £
Due within one year
trade creditors		9,064	108,614
Social security and other taxes		152,729	338,046
Outstanding defined contribution pension costs		1,008	955
Other payables		40,731	1,655,335
Accrued expenses		20,853	18,133
		224,385	2,121,083

16	Provisions for liabilities

	Deferred tax £	Total £
At 1 January 2021	2,800	2,800
Increase (decrease) in existing provisions	(1,747)	(1,747)
At 31 December 2021	1,053	1,053

17	Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £4,911 (2020 - £104,852).

Contributions totalling £1,008 (2020 - £955) were payable to the scheme at the end of the year and are included in creditors.

AMDA Trading Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

18	Share capital

Allotted, called up and fully paid shares

	2021		2020
	No.	£	No.	£
Ordinary share of £1 each	2,000	2,000	2,000	2,000
Ordinary A share of £1 each	1,334	1,334	1,334	1,334
	3,334	3,334	3,334	3,334

19	Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

	2021 £	2020 £
Not later than one year	86,250	115,000
Later than one year and not later than five years	-	86,250
	86,250	201,250

As a direct result of the Covid-19 pandemic, the lease payments recognised in the Profit and Loss Account reduced by £Nil (2020 - £28,750).

The company's lease of its premise is due to expire in September 2022..

Operating leases - lessor

The total of future minimum lease payments is as follows:

	2021 £	2020 £
Not later than one year	92,079	92,500
Later than one year and not later than five years	68,522	18,750
	160,601	111,250

The operating lease represents a lease relating to the commercial unit which expires in June 2027. The leases relating to the five residential flats are assured shorthold tenancies of twelve month duration. The lessee does not have an option to purchase the property at the expiry of the lease period.

Dividends

Interim dividends paid

AMDA Trading Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

20	Dividends (continued)

	2021 £	2020 £
Interim dividend of £3.00 per each Ordinary share	6,000	6,000
Interim dividend of £Nil (2020 - £2,998.50) per each Ordinary A share	-	4,000,000
	6,000	4,006,000

21	Related party transactions

Key management compensation

	2021 £	2020 £
Salaries and other short term employee benefits	180,000	269,838

AMDA Trading Limited

Notes to the Financial Statements for the Year Ended 31 December 2021 (continued)

21	Related party transactions (continued)

Other transactions with directors

Dividends totalling £4,002 (2020 - £4,004,002) were paid in the year in respect of shares held by the company's directors.

At the balance sheet date, the company owed its directors £3,614 (2020 - £1,608,614). These loans are unsecured, interest free and repayable on demand.

22	Non adjusting events after the financial period

There are no matters to report as post balance sheet events.