Company Registration No. 02875057 (England and Wales)
MOMENTUM INSTORE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2020
MOMENTUM INSTORE LIMITED
COMPANY INFORMATION
Directors
R M Gleave
S P Gleave
Company number
02875057
Registered office
Beechwood Court
Springwood Way
Tytherington Business Park
Macclesfield
Cheshire
SK10 2XG
Auditor
Azets Audit Services
Ship Canal House
98 King Street
Manchester
M2 4WU
MOMENTUM INSTORE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 6
Statement of income and retained earnings
7
(including a profit and loss account)
Balance sheet
8
Notes to the financial statements
9 - 19
MOMENTUM INSTORE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2020
- 1 -
The directors present the strategic report for the year ended 31 May 2020.
Business review
The financial year to 31 May 2020 presented unprecedented macro-economic challenges, firstly with Brexit impacts and then more latterly with the Covid pandemic and subsequent lock downs. These impacts had an adverse effect on turnover for the year, which whilst showing a 4.8% increase, still fell well short of expectations.
During the year there were three different Brexit milestone dates, due to timeframes being extended and this had a very disruptive impact on the retail marketplace. The uncertainty this caused led clients to park store development programmes, whilst their focus shifted to supply chain challenges.
The first pandemic lock down in March to May 2020, saw almost a complete cessation of installation and merchandising projects. This not only affected our UK operation but also our European operation headquartered in Paris. Following 4 months of complete inactivity in our European operation we took the difficult decision to undertake an orderly closure of our French business. Momentum Instore SAS closure was completed in June 2020 and we now service our European work directly from the UK.
Despite these unprecedented challenges the business has confidently continued to invest in its operations and further develop its strategic plan. May 2020 saw us open our Aftermarket facility in Loughborough which marked a significant step forward for the business. This large facility allows us to offer a whole range of complimentary services to our retail customers. These include, pick, pack and collation, tester picking, secure storage, recycling, refurbishment and a full parts management and distribution service. This is a key driver in executing our strategy of offering our customers more than installation and merchandising services and being a key partner throughout the whole POS lifecycle. We are now able to offer customers a complete range of services both pre and post implementation.
At the same time, we continued to invest in “Insite” our proprietary ERP & reporting platform. Insite allows customers to manage every element of their POS journey through a single integrated platform. The business has made significant investment to improve the user interface upgrading to Insite 3.0. as well as adding a whole suite of additional functionality including a dedicated Aftermarket portal as well as new stock management and maintenance portals.
The investment in Aftermarket and Insite has completely repositioned Momentum in the marketplace allowing us the ability to deliver our customers a single integrated service managed through a single reporting system. This repositioning has already seen Momentum make significant new contract wins which will boost sales and profitability in FY21 and beyond.
The directors are satisfied with the results for the year and the financial position at the year end. Whilst the reporting of a loss for the year is clearly disappointing it should be taken with the overriding context of the unprecedented “once in a generation” impacts the business faced during the year. The main component of the loss for the year is in relation to the exceptional write off of the investment in the French subsidiary.
Principal risks and uncertainties
The market within which the company operates, remains competitive and retail clients continue to exert pressure on margins. The company continuously monitors the market and client requirements and adapts operationally to mitigate the pressures on margin.
Management aim to minimise risk by retention of key staff, focusing on higher margin generative work streams and robust overhead management.
The company has continued to control its costs well during the year and cash flow has continued to be strong and been well managed throughout the year.
MOMENTUM INSTORE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
- 2 -
Financial key performance indicators
In the opinion of the directors the key performance indicators of the company are as follows:
-
Gross profit margin of 27.5% (2019: 32.3%). Calculated as ratio of gross profit to turnover expressed as a percentage; and
-
Operating profit margin of -0.8% (2019: 1.7%). Calculated as a ratio of operating profit to turnover expressed as a percentage
.
Gross profit margin has shown a reduction in the year mainly due to some one-off low margin pass through work.
Developments and future outlook
The directors remain highly positive about the future prospects for the business. The business’s sales pipeline is very strong and the company expects to maximise this pipeline over the coming years.
FY21 will show a strong return to profitability with turnover significantly increased. The company holds a positive outlook for FY22, based on the volume of positive enquiries and new tender wins.
The company continues to invest in its infrastructure, systems and employees, to position itself for future growth opportunities identified in the market. In addition, it expects its strategic repositioning and rebranding to be very well received by customers, both existing and new, and this is expected to drive sales growth.
The positive changes and investments made during the year reinforce the directors’ positive view of the future prospects of the business.
This report was approved by the board and signed on its behalf.
R M Gleave
Director
27 May 2021
MOMENTUM INSTORE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2020
- 3 -
The directors present their annual report and financial statements for the year ended 31 May 2020.
Principal activities
The principal activity of the company continued to be that of the provision of retail marketing services.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £
326,000 (2019: £340,000)
. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
R M Gleave
S P Gleave
Auditor
The auditor, Azets Audit Services (formerly trading as Baldwins Audit Services), is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
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;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
MOMENTUM INSTORE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
- 4 -
On behalf of the board
R M Gleave
Director
27 May 2021
MOMENTUM INSTORE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MOMENTUM INSTORE LIMITED
- 5 -
Opinion
We have audited the financial statements of Momentum Instore Limited (the 'company') for the year ended 31 May 2020 which comprise the statement of income and retained earnings, the balance sheet 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 FRS 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 May 2020 and of its loss 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.
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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors' r
eport 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.
MOMENTUM INSTORE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MOMENTUM INSTORE LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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 directors'
r
esponsibilities
s
tatement, 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's 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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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.
Lee Van Houplines (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
27 May 2021
Chartered Accountants
Statutory Auditor
Ship Canal House
98 King Street
Manchester
M2 4WU
MOMENTUM INSTORE LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS (INCLUDING A PROFIT AND LOSS ACCOUNT)
FOR THE YEAR ENDED 31 MAY 2020
- 7 -
2020
2019
Notes
£'000
£'000
Turnover
3
14,526
13,865
Cost of sales
4
(10,534)
(9,393)
Gross profit
3,992
4,472
Administrative expenses
(4,294)
(4,235)
Other operating income
188
Operating (loss)/profit
5
(114)
237
Interest receivable and similar income
2
Interest payable and similar expenses
8
(29)
(26)
Write off of amounts due from group undertakings
9
(323)
(Loss)/profit before taxation
(464)
211
Tax on (loss)/profit
10
92
16
(Loss)/profit for the financial year
(372)
227
Retained earnings brought forward
1,004
1,117
Dividends
(326)
(340)
Retained earnings carried forward
306
1,004
There are no recognised gains and losses other than those passing through the profit and loss account.
MOMENTUM INSTORE LIMITED
BALANCE SHEET
- 8 -
2020
2019
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
11
448
486
Investments
12
59
68
507
554
Current assets
Stocks
380
50
Debtors
14
4,634
5,479
Cash at bank and in hand
33
4
5,047
5,533
Creditors: amounts falling due within one year
15
(2,915)
(3,278)
Net current assets
2,132
2,255
Total assets less current liabilities
2,639
2,809
Creditors: amounts falling due after more than one year
16
(59)
(59)
Provisions for liabilities
Accruals and deferred income
1,053
522
Deferred tax liability
17
45
48
(1,098)
(570)
Net assets
1,482
2,180
Capital and reserves
Called up share capital
19
1,176
1,176
Profit and loss reserves
306
1,004
Total equity
1,482
2,180
The financial statements were approved by the board of directors and authorised for issue on 27 May 2021 and are signed on its behalf by:
R M Gleave
Director
Company Registration No. 02875057
MOMENTUM INSTORE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2020
- 9 -
1
Accounting policies
Company information
Momentum Instore Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Beechwood Court, Springwood Way, Tytherington Business Park, Macclesfield, Cheshire, SK10 2XG.
1.1
Accounting convention
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 a
mounts
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
the Reduced Financial Reporting Regime, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" regarding the disclosure requirements of Sections 3, 4, 7, 11, 12 and 33 of the standard.
The financial statements of the company are consolidated in the financial statements of
Gleaventures Limited
. The
consolidated financial statements
of Gleaventures Limited as at 31 May 2020 may be obtained from the Registrar of Companies, Companies House, Crown Way, Maindy, Cardiff, CF4 3UZ.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
In forming this assessment, the directors have fully considered the potential impact of Covid-19 on the company, its operations and its ability to continue to meet its obligations as they fall due.
1.3
Turnover
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.
Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
-
the amount of turnover can be measured reliably;
-
it is probable that the company will receive the consideration due under the contract;
-
the stage of completion at the end of the reporting period can be measured reliably; and
-
the costs incurred and the costs to complete the contract can be measured reliably.
MOMENTUM INSTORE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
1
Accounting policies
(Continued)
- 10 -
1.4
Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
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:
Leasehold improvements
straight line over term of the lease
Equipment, fixtures and fittings
straight line between 3-7 years
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
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
.
1.5
Fixed asset investments
Investments in subsidiaries are measured at cost less accumulated impairment.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.6
Stocks
Stocks are stated at the lower of cost and
net realisable value after making due allowance for obsolete and slow moving stocks.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
represent
cash in hand
and
deposits held at call with banks
.
1.8
Financial instruments
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 balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic financial assets
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.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
I
nvestments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
MOMENTUM INSTORE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
1
Accounting policies
(Continued)
- 11 -
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 creditors and hire purchase agreements
, are
initially recognised at transaction price.
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. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.9
Equity instruments
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.
1.10
Current and deferred taxation
The tax expense for the year comprises current and deferred tax. Tax is recognised in the statement of income and retained earnings, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences are recognised that have originated but not reversed by the balance sheet date, except that:
-
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
-
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the difference s between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
1.11
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.
MOMENTUM INSTORE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
1
Accounting policies
(Continued)
- 12 -
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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 lease
s
asset are consumed.
1.14
Government grants
Government grants are recognised at the fair value of the asset receive
d
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.
1.15
Foreign exchange
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
in the period
are included in profit or loss.
1.16
Finance costs are charged to the statement of income and retained earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
1.17
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
MOMENTUM INSTORE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
- 13 -
2
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 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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Job cost accrual
Ongoing projects at the year end are evaluated using costs incurred to date, turnover to date and expected job margins to calculate whether extra costs need to be accrued or whether some costs need to be deferred. Deferred costs are all shown within work in progress and accrued costs are shown within accruals.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2020
2019
£'000
£'000
Turnover analysed by geographical market
United Kingdom
14,526
13,722
Rest of Europe
-
143
14,526
13,865
4
Cost of sales
Included within cost of sales is government grant income receivable of £621,000 (2019: £nil) relating to the Coronavrius Job Retention Scheme.
5
Operating (loss)/profit
2020
2019
Operating (loss)/profit for the year is stated after charging/(crediting):
£'000
£'000
Exchange gains
(1)
(5)
Government grants
(809)
Fees payable to the company's auditor for the audit of the company's financial statements
29
27
Depreciation of owned tangible fixed assets
145
124
Operating lease charges
264
243
MOMENTUM INSTORE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
- 14 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Directors
2
2
Management staff
12
13
Field staff
32
30
Office staff
47
44
Total
93
89
In addition to the note above, the company hired intermittent workers through out the year. The average number of such workers for the year was 213 (2019: 203).
Staff costs, including directors' remuneration, were as follows:
2020
2019
£'000
£'000
Wages and salaries
6,650
6,271
Social security costs
502
466
Pension costs
160
158
7,312
6,895
Included within wages and salaries, social security costs and other pension costs are £4,081,000 (2019: £3,754,000), £279,000 (2019: £229,000) and £54,000 (2019: £35,000) that relate to staff costs in connection to intermittent workers.
7
Directors' remuneration
2020
2019
£'000
£'000
Remuneration for qualifying services
19
34
Company pension contributions to defined contribution schemes
34
55
53
89
8
Interest payable and similar expenses
2020
2019
£'000
£'000
Interest charged on invoice discounting and overdrafts
29
26
MOMENTUM INSTORE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
- 15 -
9
Exceptional write off
2020
2019
£'000
£'000
Exceptional write off of amounts due from group and impairment of investment
(323)
-
10
Taxation
2020
2019
£'000
£'000
Current tax
UK corporation tax on profits for the current period
1
48
Adjustments in respect of prior periods
(48)
(73)
Benefit arising from a previously unrecognised tax loss or credit
(42)
Total current tax
(89)
(25)
Deferred tax
Origination and reversal of timing differences
(10)
9
Adjustment in respect of prior periods
7
Total deferred tax
(3)
9
Total tax credit
(92)
(16)
The actual credit for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2020
2019
£'000
£'000
(Loss)/profit before taxation
(464)
211
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2019: 19.00%)
(88)
40
Expenses not deductible for tax purposes
75
2
Adjustments in respect of prior years
(48)
(73)
Depreciation on assets not qualifying for tax allowances
4
Under/(over) provided in prior years
7
Other timing differences
15
Effect of losses carried back
(42)
Taxation credit for the year
(92)
(16)
MOMENTUM INSTORE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
- 16 -
11
Tangible fixed assets
Leasehold improvements
Equipment, fixtures and fittings
Total
£'000
£'000
£'000
Cost
At 1 June 2019
523
736
1,259
Additions
66
43
109
Disposals
(2)
(2)
At 31 May 2020
589
777
1,366
Depreciation and impairment
At 1 June 2019
258
515
773
Depreciation charged in the year
55
90
145
At 31 May 2020
313
605
918
Carrying amount
At 31 May 2020
276
172
448
At 31 May 2019
265
221
486
12
Fixed asset investments
2020
2019
Notes
£'000
£'000
Investments in subsidiaries
13
59
68
Movements in fixed asset investments
Shares in group undertakings
£'000
Cost or valuation
At 1 June 2019 & 31 May 2020
68
Impairment
At 1 June 2019
-
Impairment losses
9
At 31 May 2020
9
Carrying amount
At 31 May 2020
59
At 31 May 2019
68
MOMENTUM INSTORE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
- 17 -
13
Subsidiaries
Details of the company's subsidiaries at 31 May 2020 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
NDI Momentum Limited
United Kingdom
Ordinary
100.00
Momentum Instore SAS
France
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£'000
£'000
NDI Momentum Limited
59
Momentum Instore SAS
(414)
(235)
14
Debtors
2020
2019
Amounts falling due within one year:
£'000
£'000
Trade debtors
2,429
3,014
Corporation tax recoverable
90
Amounts owed by group undertakings
1,762
1,982
Other debtors
165
175
Prepayments and accrued income
188
308
4,634
5,479
Amounts owed by group undertakings are repayable on demand, however the directors do not anticipate the balance to be fully repayable within 12 months of the balance sheet date.
15
Creditors: amounts falling due within one year
2020
2019
£'000
£'000
Overdrafts
68
Invoice discounting
1,714
Trade creditors
1,287
578
Corporation tax
48
Other taxation and social security
1,112
813
Other creditors
512
57
Accruals and deferred income
4
2,915
3,278
Invoice discounting balances are secured by a fixed and floating charge against all assets of Momentum Instore Limited.
MOMENTUM INSTORE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
- 18 -
16
Creditors: amounts falling due after more than one year
2020
2019
£'000
£'000
Amounts owed to group undertakings
59
59
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2020
2019
Balances:
£'000
£'000
Accelerated capital allowances
49
53
Short term timing differences
(4)
(5)
45
48
2020
Movements in the year:
£'000
Liability at 1 June 2019
48
Credit to profit or loss
(3)
Liability at 31 May 2020
45
18
Retirement benefit schemes
2020
2019
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
160
158
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. Included within other creditors is £31,000 (2019: £16,000) in respect of contributions to the company's defined contribution pension scheme, paid monthly in arrears.
MOMENTUM INSTORE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2020
- 19 -
19
Share capital
2020
2019
2020
2019
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary shares of £1 each
1,176,286
1,176,286
1,176
1,176
20
Operating lease commitments
Lessee
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:
2020
2019
£'000
£'000
Within one year
458
264
Between two and five years
981
346
1,439
610
21
Related party transactions
The company has taken full advantage of the exemption under section 33 of FRS 102 from disclosing transactions with other members of the group headed by Gleaventures Limited provided that consolidated financial statements in which the company is included, are publicly available.
At the balance sheet date the net amount owed from
Gleaventures Limited
was £1,762,000 (2019: £1,762,000). In addition the company owed £59,000
(2019: £59,000) to
NDI Momentum Limited
, a subsidiary of the company.
At the balance sheet date, £314,000
(201
9
: £
220,000
) was owed to the company by
Momentum Instore SAS, a subsidiary of the company,
against which
a
full provision for doubtful debt
s
has been made, shown on the face of the statement of income and retained earnings
within write off of amounts due from group undertakings.
22
Ultimate controlling party
The immediate and ultimate parent undertaking is Gleaventures Limited, a company incorporated in England and Wales. Gleaventures Limited, was under the control of R M Gleave due to his majority shareholding throughout the current and preceding year.
2020-05-31
2019-06-01
false
CCH Software
CCH Accounts Production 2021.100
R M Gleave
S P Gleave
02875057
2019-06-01
2020-05-31
02875057
bus:Director1
2019-06-01
2020-05-31
02875057
bus:Director2
2019-06-01
2020-05-31
02875057
bus:RegisteredOffice
2019-06-01
2020-05-31
02875057
2020-05-31
02875057
2018-06-01
2019-05-31
02875057
core:RetainedEarningsAccumulatedLosses
2018-06-01
2019-05-31
02875057
core:RetainedEarningsAccumulatedLosses
2020-05-31
02875057
core:RetainedEarningsAccumulatedLosses
2019-05-31
02875057
core:ShareCapital
2020-05-31
02875057
core:ShareCapital
2019-05-31
02875057
2019-05-31
02875057
core:LeaseholdImprovements
2020-05-31
02875057
core:FurnitureFittings
2020-05-31
02875057
core:LeaseholdImprovements
2019-05-31
02875057
core:FurnitureFittings
2019-05-31
02875057
core:CurrentFinancialInstruments
2020-05-31
02875057
core:CurrentFinancialInstruments
2019-05-31
02875057
core:Non-currentFinancialInstruments
2020-05-31
02875057
core:Non-currentFinancialInstruments
2019-05-31
02875057
core:LeaseholdImprovements
core:LeasedAssetsHeldAsLessee
2019-06-01
2020-05-31
02875057
core:FurnitureFittings
2019-06-01
2020-05-31
02875057
core:OwnedAssets
2019-06-01
2020-05-31
02875057
core:OwnedAssets
2018-06-01
2019-05-31
02875057
core:UKTax
2019-06-01
2020-05-31
02875057
core:UKTax
2018-06-01
2019-05-31
02875057
1
2019-06-01
2020-05-31
02875057
1
2018-06-01
2019-05-31
02875057
2
2019-06-01
2020-05-31
02875057
2
2018-06-01
2019-05-31
02875057
3
2019-06-01
2020-05-31
02875057
3
2018-06-01
2019-05-31
02875057
4
2019-06-01
2020-05-31
02875057
4
2018-06-01
2019-05-31
02875057
core:LeaseholdImprovements
2019-05-31
02875057
core:FurnitureFittings
2019-05-31
02875057
2019-05-31
02875057
core:LeaseholdImprovements
2019-06-01
2020-05-31
02875057
core:Subsidiary1
2019-06-01
2020-05-31
02875057
core:Subsidiary2
2019-06-01
2020-05-31
02875057
core:Subsidiary1
1
2019-06-01
2020-05-31
02875057
core:Subsidiary2
2
2019-06-01
2020-05-31
02875057
core:Subsidiary1
2020-05-31
02875057
core:Subsidiary2
2020-05-31
02875057
core:WithinOneYear
2020-05-31
02875057
core:WithinOneYear
2019-05-31
02875057
core:BetweenTwoFiveYears
2020-05-31
02875057
core:BetweenTwoFiveYears
2019-05-31
02875057
core:ImmediateParent
2019-06-01
2020-05-31
02875057
core:Subsidiary1
2019-06-01
2020-05-31
02875057
core:ImmediateParent
2020-05-31
02875057
core:Subsidiary2
2020-05-31
02875057
core:Subsidiary1
2020-05-31
02875057
bus:PrivateLimitedCompanyLtd
2019-06-01
2020-05-31
02875057
bus:FRS102
2019-06-01
2020-05-31
02875057
bus:Audited
2019-06-01
2020-05-31
02875057
bus:FullAccounts
2019-06-01
2020-05-31
xbrli:pure
xbrli:shares
iso4217:GBP