Registration number:
Old And Modern Masters Limited
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Brebners
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Old And Modern Masters Limited
Contents
Company Information |
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Strategic Report |
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Director's Report |
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Statement of Director's Responsibilities |
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Independent Auditor's Report |
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Income Statement |
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Statement of Financial Position |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Old And Modern Masters Limited
Company Information
Director |
M Voena |
Registered office |
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Auditor |
|
Old And Modern Masters Limited
Strategic Report for the Year Ended 30 June 2023
The director presents his strategic report for the year ended 30 June 2023.
Fair review of the business
The company was incorporated in 2002 to specialise in the acquisition and sale of works of art to and from private and institutional collectors and other dealers specialising in Old Master, Nineteenth Century, Modern and Contemporary fine art which linked to the director’s extensive expertise and heritage. It has staged important monographic exhibitions, as well as studies on Italian city landscapes and the International Caravaggesque Movement, which are a core specialism. Over time it has developed expertise in other sectors of the market, both out of demand and as a way of adapting to the ever-evolving art market, including but not limited to the Italian Modern and Post-War Art. The company also trades in antique furniture and sculptures. This multi-faceted approach helps mitigate a certain degree of risk within the art market, which can be highly volatile.
Following the lifting of travel restrictions and the cancellation of art fairs and auctions during the Covid-19 pandemic, the company has been returning to pre-pandemic levels of trade, with art fairs and auctions being held as normal. Accordingly, along with the director's reliance on personal relationships with existing clients, this has enabled the company to maintain its turnover at pre-pandemic levels in the year.
Key performance indicators
Turnover for the year was £20,139,622 (2022 - £21,286,067). The gross profit for the period was £1,763,887 (2022 - £1,735,390). Due to increased overheads the company made a loss before tax of £283,807 in the year (2022 - profit before tax of £9,831).
Net assets have decreased from £1,294,487 to £1,013,323 as a result of the loss for the year. Cash at bank increased from £727,802 to £2,210,373 offset by the decrease in stock from £15,284,715 to £14,425,361. Creditors increased from £17,855,998 to £22,238,720 while debtors increased from £3,118,892 to £6,574,184.
The company has continued to make significant changes to ensure that the financial reporting and stock management systems for the company provide the director with frequent financial reporting across key financial performance indicators including cash flow management, stock volumes, creditor and debtor reporting. The company and its advisors believe this will further help increase profitability in future years.
Principal risks and uncertainties
The company’s principal financial liabilities comprise trade creditors and a shareholder loan. The company has no other lending but is exposed to foreign exchange, liquidity and cash flow and price risk. After 30 June 2020, the company became exposed to a new EU Anti-Money Laundering Directive.
The principal risk and uncertainties are all individually monitored by the director and deemed necessary for the continuation of the business activity, whilst the external risks are closely monitored by the director.
Old And Modern Masters Limited
Strategic Report for the Year Ended 30 June 2023
Risk associated with financial instruments
• Price risk
As the company solely deals in the purchase and sale of pieces of art, the company is exposed to significant price risk. The company is largely dependent on the expert knowledge of its sole director, Mr M Voena, who has been involved in the art market since 1984 and is widely respected as an expert in his field.
Mr Voena also consults with third parties to asses market shifts in fair market value and has managed the stock book of the company to avoid too much accumulation of risk in a single market segment, as he has done successfully throughout his international career.
Stock is valued at £14,425,361 at 30 June 2023 which is deemed suitable to further protect against segment down-valuations, as the company holds sufficient stock in non-correlated alternative segments which protect against the need to consider undervalued sales to manage cash flow.
• Liquidity and cash flow risk
The company is exposed to liquidity and cash flow risk. The company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its obligations as they fall due. This is achieved by holding regular financial management meetings with the company’s outsourced finance professionals to review creditor invoices and note any expected short-term cash flow needs. At 30 June 2023 the company held £2,210,373 in cash at bank.
• Foreign exchange risk
This is linked to the company buying and selling pieces of art in multiple jurisdictions so revenue or expenses may not be in pound sterling. The company operates bank accounts in multiple currencies to help mitigate against this exposure where possible. Sterling has been volatile during the year with the current global political climate proving to have had a direct impact on sterling value.
Trade debtors
Trade debtors are managed by the director who has had a personal relationship with the associated parties for many years, while the ledgers are updated by the outsourced finance professionals. At 30 June 2023, the director reviewed the position and significant movement was made. It is the intention of the director to continuously review these positions to address the aged debtor positions. Trade debtors increased from £2,449,840 in 2022 to £5,673,994 due to a number of high-value sales being completed shortly before the year end.
5th EU Anti-Money Laundering Directive
The European art market saw further changes with the introduction of anti-money laundering regulations under the fifth anti-money laundering directive, that was adopted into UK law in January 2020. These regulations introduced a requirement for art market participants to register with HMRC by January 2021 and collect due diligence information on the individuals involved in art transactions worth in excess of €10,000 or equivalent. The company registered with HMRC as required and adopted the relevant procedures when purchasing and selling pieces of art to identify and hold due diligence information on the seller/purchaser. The company does not expect a major impact on its financial performance as a result of the regulations.
Old And Modern Masters Limited
Strategic Report for the Year Ended 30 June 2023
Future developments
The company continues to review the status of the market very carefully, taking into consideration the cost-of-living crisis and the war in Ukraine. With a full third year of normal trade post-Covid, the company is confident of further improvement in its financial performance.
Approved by the
.........................................
Director
Old And Modern Masters Limited
Director's Report for the Year Ended 30 June 2023
The director presents his report and the financial statements for the year ended 30 June 2023.
Director of the company
The director who held office during the year was as follows:
Dividends
No interim dividends were paid in the year (2022 - £Nil). No final dividend is proposed.
Information included in the Strategic Report
The company has chosen in accordance with s.414C(11) Companies Act 2006 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 risk management and exposure.
Director's liabilities
The company has made qualifying third-party indemnity provisions for the benefit of its director which were made during the year and remain in force at the date of this report.
Disclosure of information to the auditor
The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditors are unaware.
Approved by the director on
.........................................
M Voena
Director
Old And Modern Masters Limited
Statement of Director's Responsibilities
The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.
Old And Modern Masters Limited
Independent Auditor's Report to the Members of Old And Modern Masters Limited
for the Year Ended 30 June 2023
Opinion
We have audited the financial statements of Old And Modern Masters Limited (the 'company') for the year ended 30 June 2023, which comprise the Income Statement, Statement of Financial Position, 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 30 June 2023 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. |
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 director is 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.
Old And Modern Masters Limited
Independent Auditor's Report to the Members of Old And Modern Masters Limited
for the Year Ended 30 June 2023
Opinions on other matters prescribed by the Companies Act 2006
Because of the significance of the matter described in the basis for qualified opinion, we have been unable to form an opinion whether, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Director's 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 Director's 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 director's remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of the director
As explained more fully in the Statement of Director's Responsibilities, the director is 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 director 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 director is 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 director either intends 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.
Old And Modern Masters Limited
Independent Auditor's Report to the Members of Old And Modern Masters Limited
for the Year Ended 30 June 2023
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the company and the industry in which it operates, we determined that the principal risks of non-compliance with laws and regulations related to the reporting framework (FRS 102 and the Companies Act 2006), UK corporate taxation laws, data protection legislation, Proceeds of Crime Act 2002 (POCA), VAT Act 1994 and Money Laundering Regulations 2017. These risks were communicated to our audit team and we remained alert to any indications of non-compliance throughout our audit.
We understood how the company is complying with relevant legislation by making enquiries of management. We also considered the results of our audit procedures and to what extent these corroborate this understanding and assessed the susceptibility of the company’s financial statements to material misstatement. This included consideration of how fraud might occur and evaluation of management’s incentives and opportunities for fraudulent manipulation of the financial statements.
We designed our audit procedures to identify any non-compliance with laws and regulations. Such procedures included, but were not limited to, inspection of any regulatory or legal correspondence; challenging assumptions and judgements made by management; identifying and testing journal entries with a focus on large or unusual transactions as determined based on our understanding of the business; and identifying and assessing the effectiveness of controls in place to prevent and detect fraud.
Owing to the inherent limitations of an audit, there remains a risk that a material misstatement may not have been detected, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance with laws and regulations and cannot be expected to detect all instances of non-compliance.
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.
The primary responsibility for the detection and prevention of fraud rests with those responsible for governance and management. The further removed non-compliance with laws and regulations is from the events reflected in the financial statements, the less likely the auditor will become aware of it.
The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission, misrepresentation or forgery.
Old And Modern Masters Limited
Independent Auditor's Report to the Members of Old And Modern Masters Limited
for the Year Ended 30 June 2023
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
For and on behalf of
130 Shaftesbury Avenue
W1D 5AR
Old And Modern Masters Limited
Income Statement for the Year Ended 30 June 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Operating (loss)/profit |
(260,880) |
9,669 |
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
- |
|
(22,927) |
162 |
||
(Loss)/profit before tax |
( |
|
|
Tax on (loss)/profit |
|
|
|
(Loss)/profit for the financial year |
( |
|
Old And Modern Masters Limited
Statement of Financial Position as at 30 June 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
- |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
100 |
100 |
|
Retained earnings |
1,013,223 |
1,294,387 |
|
Shareholders' funds |
1,013,323 |
1,294,487 |
Approved and authorised by the
......................................................................
M Voena
Director
Company registration number: 04348253
Old And Modern Masters Limited
Statement of Changes in Equity for the Year Ended 30 June 2023
Share capital |
Retained earnings |
Total |
|
At 1 July 2022 |
|
|
|
Loss for the year |
- |
( |
( |
At 30 June 2023 |
|
|
|
Share capital |
Retained earnings |
Total |
|
At 1 July 2021 |
|
|
|
Profit for the year |
- |
|
|
At 30 June 2022 |
100 |
1,294,387 |
1,294,487 |
Old And Modern Masters Limited
Statement of Cash Flows for the Year Ended 30 June 2023
Note |
2023 |
2022 |
|
Cash flows from operating activities |
|||
(Loss)/profit for the year |
( |
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Finance income |
( |
( |
|
Finance costs |
|
- |
|
Income tax expense |
( |
( |
|
( |
|
||
Working capital adjustments |
|||
Decrease in stocks |
|
|
|
(Increase)/decrease in trade and other debtors |
( |
|
|
Increase/(decrease) in trade and other creditors |
|
( |
|
Cash generated from operations |
|
|
|
Income taxes received/(paid) |
|
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
- |
|
Net cash flows from investing activities |
( |
|
|
Cash flows from financing activities |
|||
Interest paid |
( |
- |
|
Payments to finance lease creditors |
|
- |
|
Net cash flows from financing activities |
|
- |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 July |
|
|
|
Effect of exchange rate fluctuations on cash held |
- |
|
|
Cash and cash equivalents at 30 June |
2,210,373 |
727,802 |
Old And Modern Masters Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal activity of the company is that of a dealer and agent for the sale of works of art and antiques
Accounting policies |
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Significant judgements and estimates
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies.
The areas involving a higher degree of judgement or complexity, or areas where assumption and estimates are significant to the financial statements, are considered to be:
Stock
Significant estimates are involved in the determination of the net realisable value of stock held by the company. Management exercises judgement in assessing the likely realisable value of stock and appropriate provisions are made where it is considered that realisable value may be considered to be less than the original cost of the relevant items.
Trade debtors
Management exercises judgement in assessing the quantum of any provisions which may be required for potential bad or doubtful debts.
Old And Modern Masters Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Going concern
The company made a loss for the year ending 30 June 2023 but had net assets of £1,013,323 at that date, including cash at bank of £2,210,373.
The director has considered the potential impact of the current global political and economic climate and the director’s view is that there will be no significant impact. The company’s activities have remained at pre-pandemic levels and it has experienced strong turnover subsequent to 30 June 2023. Additionally, the company’s long-standing private relationships with a number of highly reputable private collectors has ensured the continued success of the company.
On the basis of the above, and after making enquiries, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the director continues to adopt the going concern basis in preparing the financial statements.
Revenue recognition
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales-related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
The company recognises revenue from the sale of art and antiques when the significant risks and rewards of ownership have passed to the buyer based upon the contractual terms of title and possession of the works, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity.
The company recognises revenue from acting as agent when the underlying transaction has been completed, the amount of revenue can be measured reliably and it is probable that economic benefit will flow to the company.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge 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 at the reporting date. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Old And Modern Masters Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Tangible assets
Tangible assets are stated in the statement of financial position 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 |
Fixtures, fittings and equipment |
3-15 years straight line |
Motor vehicles |
4 years straight line |
Investments
Investments in equity share which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
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 stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
Old And Modern Masters Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
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.
Finance leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Statement of Financial Position as a finance lease obligation.
Lease payments are apportioned between finance costs in the Income Statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Assets held under hire purchase contracts are capitalised at the lesser of fair value or present value of minimum lease payments in the statement of financial position. The present value of the minimum lease payments is calculated using the interest rate implicit in the lease. A corresponding liability is recognised at the same value in the statement of financial position. The asset is then depreciated over its useful life.
The minimum lease payments are apportioned between the finance charge recognised in the income statement and the reduction of the outstanding liability using the effective interest method. The finance charge in each period is allocated so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Old And Modern Masters Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Financial instruments
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.
Staff numbers |
The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:
2023 |
2022 |
|
Administration and support |
|
- |
|
- |
Revenue |
The analysis of the company's revenue for the year from continuing operations is as follows:
2023 |
2022 |
|
Sale of artwork |
|
|
The company operates from a gallery in London and sells to customers all over the world as well as selling at international fairs. It is not practicable to provide a geographical analysis of turnover.
Operating (loss)/profit |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Foreign exchange losses |
|
|
Other interest receivable and similar income |
Old And Modern Masters Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
2023 |
2022 |
|
Interest income |
|
|
Other finance income |
|
- |
|
|
Director's remuneration |
The director's remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
- |
Contributions paid to money purchase schemes |
|
- |
15,110 |
- |
Auditor's remuneration |
2023 |
2022 |
|
Audit of the financial statements |
|
|
Other fees to auditors |
||
Taxation compliance services |
|
|
Taxation |
Tax charged/(credited) in the income statement
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
- |
|
Adjustment in respect of prior periods |
( |
( |
(482) |
(29,968) |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
|
Tax receipt in the income statement |
( |
( |
Old And Modern Masters Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
The tax on profit before tax / (loss before tax) for the year is lower than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
2022 |
|
(Loss)/profit before tax |
( |
|
Corporation tax at standard rate |
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
- |
|
Effect of tax losses |
|
- |
Deferred tax (credit)/expense from unrecognised tax loss or credit |
( |
|
Decrease in UK and foreign current tax from adjustment for prior periods |
( |
( |
Tax increase/(decrease) from effect of capital allowances and depreciation |
|
( |
Tax increase from other short-term timing differences |
|
- |
Total tax credit |
( |
( |
Tangible assets |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
Cost |
|||
At 1 July 2022 |
|
- |
|
Additions |
- |
|
|
At 30 June 2023 |
|
|
|
Depreciation |
|||
At 1 July 2022 |
|
- |
|
Charge for the year |
|
|
|
At 30 June 2023 |
|
|
|
Carrying amount |
|||
At 30 June 2023 |
|
|
|
At 30 June 2022 |
|
- |
|
Assets held under finance leases and hire purchase contracts
The carrying value of tangible assets held under finance leases and hire purchase contracts is as follows:
2023 |
2022 |
|
Motor vehicles |
157,368 |
- |
Old And Modern Masters Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Investments |
2022 |
2021 |
|
Investments in joint ventures |
|
|
Joint ventures |
£ |
Cost |
|
At 1 July 2022 and 30 June 2023 |
|
Carrying amount |
|
At 30 June 2023 |
|
At 30 June 2022 |
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2023 |
2022 |
|||
|
3000 Marcus Avenue, #3E6 Lake Success, New York 11042 |
Ordinary |
|
|
USA |
Robilant and Voena USA Limited The principal activity of Robilant and Voena USA Limited is that of a dealer and agent for the sale of works of art and antiques. |
Stocks |
2023 |
2022 |
|
Other inventories |
|
|
Old And Modern Masters Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Debtors |
2023 |
2022 |
|
Trade debtors |
|
|
Other debtors |
|
|
Prepayments |
|
|
Accrued income |
|
- |
Corporation tax recoverable |
- |
|
|
|
Creditors |
Note |
2023 |
2022 |
|
Due within one year |
|||
Loans and borrowings |
|
- |
|
Trade creditors |
|
|
|
Amounts due to group undertakings |
|
|
|
Social security and other taxes |
|
- |
|
Other creditors |
|
|
|
Accruals |
|
|
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
- |
Provisions for liabilities |
Deferred tax |
Total |
|
At 1 July 2022 |
|
|
Increase (decrease) in existing provisions |
( |
( |
At 30 June 2023 |
|
|
|
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 £
Old And Modern Masters Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
100 |
|
100 |
There are no restrictions on the repayment of capital or the distribution of dividends.
Loans and borrowings |
Current loans and borrowings
2023 |
2022 |
|
Hire purchase contracts |
|
- |
Non-current loans and borrowings
2023 |
2022 |
|
Hire purchase contracts |
|
- |
Amounts due under hire purchase contracts are secured on the assets involved.
Analysis of changes in net debt |
At 1 July 2022 |
Cash flows |
At 30 June 2023 |
|
Cash and cash equivalents |
|||
Cash |
727,802 |
1,482,571 |
2,210,373 |
|
|
|
|
|
Old And Modern Masters Limited
Notes to the Financial Statements for the Year Ended 30 June 2023
Related party transactions |
Exemption is taken in accordance with FRS 102 paragraph 33.1A not to disclose transactions or amounts falling due between undertakings wholly owned within the group.
At 30 June 2023 an amount of £510,072 (2022 - £397,681) was due from a company over which the director is able to exert significant influence. During the year there was a management recharge of £116,750 (2022 - £225,000) from this company.
At 30 June 2023 an amount of £97,863 (2022 - £130,481) was due from a joint venture undertaking.
The company operates from a property leased from various parties including the director. Rent paid during the year amounted to £33,625 (2022 - £33,625).
TRANSACTIONS WITH DIRECTORS |
During the year advances of £116,641 and repayments of £116,721 were made to the director. Interest of £80 (2022 - £Nil) has been charged at 2.00% p.a. There were no set terms in place.
Parent and ultimate parent undertaking |
The company's immediate parent and ultimate parent undertaking is
The ultimate controlling party is