Montroyal Ltd - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 03064900 (England and Wales)

MONTROYAL LIMITED

TRADING AS

SIGNS EXPRESS SWANSEA

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 MAY 2023

Page

Company Information

1

Chartered Accountants' Report

2

Balance Sheet

3

Notes to the Financial Statements

5

DIRECTORS:

P D Perkins

Mrs S Perkins

SECRETARIES:

Mrs S Perkins

P D Perkins

REGISTERED OFFICE:

Unit 1 Christopher Court

Mona Close

Swansea Enterprise Park

Swansea

SA6 8RR

REGISTERED NUMBER:

03064900 (England and Wales)

ACCOUNTANTS:

Bevan Buckland LLP

Ground Floor Cardigan House

Castle Court

Swansea Enterprise Park

Swansea

SA7 9LA

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Montroyal Limited for the year ended 31 May 2023 which comprise the Income Statement, Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Montroyal Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Montroyal Limited and state those matters that we have agreed to state to the Board of Directors of Montroyal Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Montroyal Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Montroyal Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Montroyal Limited. You consider that Montroyal Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Montroyal Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Bevan Buckland LLP

Ground Floor Cardigan House

Castle Court

Swansea Enterprise Park

Swansea

SA7 9LA

22 January 2024

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

58,573

68,262

58,573

68,262

CURRENT ASSETS

Stocks

43,500

39,000

Debtors

6

52,394

81,024

Cash at bank and in hand

13,831

16,003

109,725

136,027

CREDITORS

Amounts falling due within one year

7

120,364

141,496

NET CURRENT LIABILITIES

(10,639

)

(5,469

)

TOTAL ASSETS LESS CURRENT LIABILITIES

47,934

62,793

CREDITORS

Amounts falling due after more than one year

8

(36,532

)

(49,680

)

PROVISIONS FOR LIABILITIES

(6,129

)

(8,158

)

NET ASSETS

5,273

4,955

CAPITAL AND RESERVES

Called up share capital

2

2

Retained earnings

5,271

4,953

SHAREHOLDERS' FUNDS

5,273

4,955

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 22 January 2024 and were signed on its behalf by:

P D Perkins - Director

1.	STATUTORY INFORMATION

Montroyal Limited 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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 fixed assets

Amortisation is provided straight line over 19 years in order to write off the patents & licences over their estimated useful life. The accounting policy have been revised in 2013 due to the franchise license having 5 years left to run from May 2012.

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.

Leasehold property improvements

-

5% on cost

Plant and Machinery

-

10% on cost

Fixtures and fittings

-

10% on cost

Motor vehicles

-

33% straight line

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 year 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.

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.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial I 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

Basic financial assets, which include trade and other 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.

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Impairment of financial assets

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.

Derecognition of financial assets

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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies, 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 receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables 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 payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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.

Derecognition of financial liabilities

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

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Cash at bank and cash in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Going Concern

The accounts have been prepared on the going concern basis, on the understanding that the director and shareholder will continue to financially support the company for a period of 12 months from the date of these financial statements. This support will be reviewed at that time.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Creditors and provisions

Creditors and provisions are recognised where the company has a present obligation (legal and constructive) resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 8 (2022 - 7 ) .

4.	INTANGIBLE FIXED ASSETS

Patents

and

licences

£

COST

At 1 June 2022

and 31 May 2023

16,400

AMORTISATION

At 1 June 2022

and 31 May 2023

16,400

NET BOOK VALUE

At 31 May 2023

-

At 31 May 2022

-

5.	TANGIBLE FIXED ASSETS

Leasehold

Fixtures

property

Plant and

and

improvements

Machinery

fittings

£

£

£

COST

At 1 June 2022

44,740

53,030

8,454

Additions

-

311

-

Disposals

-

(296

)

-

At 31 May 2023

44,740

53,045

8,454

DEPRECIATION

At 1 June 2022

15,611

30,759

5,924

Charge for year

2,237

3,699

726

Eliminated on disposal

-

(135

)

-

At 31 May 2023

17,848

34,323

6,650

NET BOOK VALUE

At 31 May 2023

26,892

18,722

1,804

At 31 May 2022

29,129

22,271

2,530

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 June 2022

18,758

6,374

131,356

Additions

-

2,117

2,428

Disposals

-

(673

)

(969

)

At 31 May 2023

18,758

7,818

132,815

DEPRECIATION

At 1 June 2022

6,253

4,547

63,094

Charge for year

3,751

1,566

11,979

Eliminated on disposal

-

(696

)

(831

)

At 31 May 2023

10,004

5,417

74,242

NET BOOK VALUE

At 31 May 2023

8,754

2,401

58,573

At 31 May 2022

12,505

1,827

68,262

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

Motor

Machinery

vehicles

Totals

£

£

£

COST

At 1 June 2022

-

18,758

18,758

Reclassification/transfer

12,995

-

12,995

At 31 May 2023

12,995

18,758

31,753

DEPRECIATION

At 1 June 2022

-

6,253

6,253

Charge for year

1,300

3,751

5,051

At 31 May 2023

1,300

10,004

11,304

NET BOOK VALUE

At 31 May 2023

11,695

8,754

20,449

At 31 May 2022

-

12,505

12,505

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade debtors

42,483

34,334

Other debtors

9,911

46,690

52,394

81,024

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Bank loans and overdrafts

16,000

16,000

Hire purchase contracts

6,012

3,938

Trade creditors

35,647

55,854

Taxation and social security

31,478

16,681

Other creditors

31,227

49,023

120,364

141,496

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2023

2022

£

£

Bank loans

32,000

48,000

Hire purchase contracts

4,532

1,680

36,532

49,680

9.	SECURED DEBTS

The following secured debts are included within creditors:

2023

2022

£

£

Bank loans

48,000

64,000

Hire purchase contracts

10,544

5,618

58,544

69,618

There is a fixed & floating charge over the assets & liabilities of the company.

The finance lease is secured upon the asset to which it relates.

10.	RELATED PARTY DISCLOSURES

The amount owed to the directors at the year end is £23 (2022: £19,008 owed from the directors). This amount is interest free and repayable on demand.

11.	ULTIMATE CONTROL

Mr P D Perkins & Mrs S Perkins, the directors, each own 50% of the issued share capital and therefore have ultimate control of the company.