Matthiesen Limited - Abbreviated accounts 16.3

REGISTERED NUMBER: 01356180 (England and Wales)

ABBREVIATED UNAUDITED ACCOUNTS

FOR THE YEAR ENDED 31 MAY 2016

FOR

MATTHIESEN LIMITED

Page

Company Information

1

Abbreviated Balance Sheet

2

Notes to the Abbreviated Accounts

3

DIRECTOR:

P Matthiesen

SECRETARY:

Ms J J Teston

REGISTERED OFFICE:

7-8 Mason's Yard

Duke Street

London

SW1Y 6BU

REGISTERED NUMBER:

01356180 (England and Wales)

ACCOUNTANTS:

Melinek Fine LLP

Chartered Accountants

Foframe House

35-37 Brent Street

London

NW4 2EF

CURRENT ASSETS

Stocks

2,115,626

1,953,477

Debtors

231,446

534,941

Investments

2,000

Cash at bank and in hand

2,980,583

3,391,178

5,329,655

5,881,596

CREDITORS

Amounts falling due within one year

562,529

1,868,450

NET CURRENT ASSETS

4,767,126

4,013,146

TOTAL ASSETS LESS CURRENT
LIABILITIES

4,767,126

4,013,146

CAPITAL AND RESERVES

Called up share capital

3

750

Capital redemption reserve

250

Profit and loss account

4,766,126

4,012,146

SHAREHOLDERS' FUNDS

4,767,126

4,013,146

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2016.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2016 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his 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 abbreviated accounts have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the director on 24 February 2017 and were signed by:

P Matthiesen - Director

1.	ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared under the historical cost convention and in accordance with the

Financial Reporting Standard for Smaller Entities (effective January 2015).

Turnover

Turnover represents net invoiced sales of goods, excluding value added tax.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Stocks

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

moving items.

Deferred tax

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

sheet date.

Hire purchase and leasing commitments

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

period of the lease.

2.	TANGIBLE FIXED ASSETS

Total

£

COST

At 1 June 2015

and 31 May 2016

3,701

DEPRECIATION

At 1 June 2015

and 31 May 2016

3,701

NET BOOK VALUE

At 31 May 2016

-

At 31 May 2015

-

3.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2016

2015

value:

£

750

Ordinary

£1

750

4.	TRADING OUTLOOK

The last ten to fifteen years have seen fundamental structural changes in the Art Market which has become ever

less a level playing field. The market is tilted towards the large auction houses on account of their commission

structure which, incorporating a 'buyer's premium' which continues to rise, disadvantages retail galleries that are

compelled to charge sellers a commission. Thus the tilt towards the auctioneers can in some cases amount to a

significant proportion of the sale proceeds. In addition the growing use of the internet and the recording of

auction data by on line databases has resulted in much more information being available to buyers than was the

case in the past further degrading dealer's profit margins.

Adding to the difficult trading conditions since the recent financial crises experienced by the small and ever

diminishing band of Old Master Galleries, a very specialised sub sector, there has been a concentration of interest

in contemporary art and modernism and a consequent decline in the breadth of market for classic Old Masters. In

consequence the 'middle market' for such pictures has been severely impacted. The net effect of this has been to

radically reduce the opportunities for profitable sales of Old Masters and restrict them to the very finest items or

those by the most prestigious names. Whereas in the not so distant past major paintings could be obtained for

more modest sums it is now necessary to budget substantially more.

In consequence since significant profit in an increasingly difficult market can only be generated through the sale

of the very finest Old Masters, it is necessary to retain within the balance sheet large quantities of liquidity to be

ready for the right opportunity, if and when it should present itself. Such paintings are becoming ever rarer,

particularly when sourced privately. The Board, therefore, continues to hold cash until the right opportunity

presents itself.