Company registration number 01090477 (England and Wales)
MASON PEARSON BROS. LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
MASON PEARSON BROS. LIMITED
COMPANY INFORMATION
Directors
M J Pearson
A J Jackson
M J Snyder
Secretary
A Kirkpatrick
Company number
01090477
Registered office
7 Easter Park
Ferry Lane South
Rainham
Essex
United Kingdom
RM13 9BP
Auditor
Grunberg & Co Limited
5 Technology Park
Colindeep Lane
Colindale
London
United Kingdom
NW9 6BX
MASON PEARSON BROS. LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
MASON PEARSON BROS. LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present their strategic report for the year ended 31 March 2023.

 

The financial year 2023 reflected few changes, with similar challenges. Our priority remains to protect the high quality of product whilst ensuring that reasonable cost efficiencies are in place.

 

Product quality and research into new materials and techniques remain of prime importance in the business.

 

As we move on from the effects of Brexit and the Pandemic our healthy balance sheet keeps the business in a positive position and enables us to maintain reasonable results for another year.

 

Review of Business

The Company monitors progress with reference to a number of key performance indicators ("KPIs"). These KPIs include the following:

 

1. The company reports sales to be at the same level as the previous year. This reflects our aim to maintain pricing levels despite market influences.

 

2. The days sales outstanding ratio, based on accounts receivable, has reduced to 18 days this year compared with 24 days for 2022.

 

Principal risks and uncertainties

The company is exposed to a number of risks which range from the changes in the general economy with the uncertainty of the continued effects of Brexit, and all that is normal to the business.

 

The board meets regularly to review all risks by the use of monthly financial information. Key risks to the company and its response are detailed below.

 

1. Financial risk management

The company's financial instruments comprise cash at the bank. The main purpose is to provide working capital and the ability to invest in fixed assets for the business.

 

As shown in the cashflow notes, liquidity continues to be sufficient to support the needs of the business.

 

2. Foreign currency risk

The company is exposed to foreign currency fluctuations as most of the company's purchases are imported. The company minimises this risk by purchasing raw materials in bulk and agreeing prices in GBP.

 

3. Competitive pressure risk

The company continues to offer a luxury product at a competitive price to its customers.

 

4. Credit risk

Credit risk is monitored by the company and where necessary more stringent credit terms are implemented. The company also has credit insurance.

 

5. The interruption of the supply of raw materials.

The company has identified key raw materials and holds enough supply of these to ensure that sufficient stock is available.

 

6. Covid-19

The effects of Covid 19 have been greatly reduced this year, however the Company remains mindful of the risks and remains prepared for a future outbreak.

 

MASON PEARSON BROS. LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Outlook

We have had positive results in our investment in brand protection resources, which have enhanced the protection of the product with continuing additions to our control measures. Plans are in place to maintain the business on a similar path to recent years with the website trading strongly.

 

The negative implications of Brexit in the EU have remained high on our agenda, with these reducing further in impact over the past year. However, we are expecting some fallout from the unfortunate continuing events in Eastern Europe. In addition, the impact of the Covid-19 pandemic has been significant on suppliers and staff. In the latter case, the measures we put in place over the last two years have enabled us to mitigate this. The attendance at work by employees using social distancing guidelines and other measures, though reduced in stringency, has been consistently good.

 

Return to work and quarantine plans were put in place over the last two years and continue to be active. These are reviewed and modified regularly in case any future restrictions come into force.

We continue to keep higher stock level of supplies of raw materials.

 

Research and development have been active, with trade fairs returning in part, but proving to be less effective than in the past.

 

We believe the results for the year to 31 March 2024 will be satisfactory.

 

 

On behalf of the board

M J Pearson
Director
28 September 2023
MASON PEARSON BROS. LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the company in the year under review was that of manufacturing hair brushes.

Results and dividends

Ordinary dividends were paid amounting to £472,640.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

M J Pearson
A J Jackson
M J Snyder

A J Jackson and M J Snyder served as non-executive directors.

Research and development

The company continues actively to look for and invest in various technological advances that will enhance, maintain and complement the current manufacturing process.

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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
M J Pearson
Director
28 September 2023
MASON PEARSON BROS. LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -

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:

 

 

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.

MASON PEARSON BROS. LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MASON PEARSON BROS. LIMITED
- 5 -
Opinion

We have audited the financial statements of Mason Pearson Bros. Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. 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:

MASON PEARSON BROS. LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MASON PEARSON BROS. 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 identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 a 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 a Report of the Auditors 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.

 

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

 

- the nature of the industry and sector and whether the financial results of our client differed from the industry trends;

- the legal and regulatory framework that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements;

- the matters discussed among the audit engagement team during the planning process regarding how and where fraud might occur in the financial statement and any potential indicators of fraud.

 

Audit procedures performed included reviewing the financial statement disclosures and testing the supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; discussions with the directors' on their own assessment of the risks that irregularities may occur either as a result of fraud or error, their assessment of compliance with laws and regulations and whether they were aware of any instances of non-compliance, including any potential litigation or claims; performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; inspection of relevant legal correspondence and board minutes; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

MASON PEARSON BROS. LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MASON PEARSON BROS. LIMITED
- 7 -

As a result of our assessment, it is considered that there are no laws and regulations for which non-compliance may be fundamental to the operating aspects of the business. However, laws and regulations considered to have a direct effect on the financial statements included the UK Companies Act, Employment Laws, Tax and Pensions legislation and Health & Safety legislation.

 

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. There is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

Gedalia Waldman BA FCA
Senior Statutory Auditor
For and on behalf of Grunberg & Co Limited
2 October 2023
Chartered Accountants
Statutory Auditor
5 Technology Park
Colindeep Lane
Colindale
London
United Kingdom
NW9 6BX
MASON PEARSON BROS. LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
5
6,015,866
6,035,802
Cost of sales
(3,142,709)
(2,870,818)
Gross profit
2,873,157
3,164,984
Administrative expenses
(1,964,533)
(1,737,791)
Other operating income
113,474
1,138,821
Operating profit
6
1,022,098
2,566,014
Interest receivable and similar income
9
81,900
17,522
Profit before taxation
1,103,998
2,583,536
Tax on profit
10
(180,168)
(526,967)
Profit for the financial year
923,830
2,056,569
MASON PEARSON BROS. LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2023
31 March 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,547,035
2,147,381
Investments
13
3
3
2,547,038
2,147,384
Current assets
Stocks
15
1,183,998
795,958
Debtors
16
525,654
604,046
Cash at bank and in hand
7,383,772
7,560,786
9,093,424
8,960,790
Creditors: amounts falling due within one year
17
(834,287)
(868,803)
Net current assets
8,259,137
8,091,987
Total assets less current liabilities
10,806,175
10,239,371
Provisions for liabilities
Deferred tax liability
18
482,805
367,191
(482,805)
(367,191)
Net assets
10,323,370
9,872,180
Capital and reserves
Called up share capital
20
23,632
23,632
Profit and loss reserves
10,299,738
9,848,548
Total equity
10,323,370
9,872,180

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 28 September 2023 and are signed on its behalf by:
M J Pearson
Director
Company registration number 01090477 (England and Wales)
MASON PEARSON BROS. LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2021
23,632
7,791,979
7,815,611
Year ended 31 March 2022:
Profit and total comprehensive income
-
2,056,569
2,056,569
Balance at 31 March 2022
23,632
9,848,548
9,872,180
Year ended 31 March 2023:
Profit and total comprehensive income
-
923,830
923,830
Dividends
11
-
(472,640)
(472,640)
Balance at 31 March 2023
23,632
10,299,738
10,323,370
MASON PEARSON BROS. LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
1
1,302,797
2,332,797
Income taxes paid
(387,224)
(133,962)
Net cash inflow from operating activities
915,573
2,198,835
Investing activities
Purchase of tangible fixed assets
(701,847)
(455,575)
Purchase of subsidiaries
-
0
(1)
Interest received
81,900
17,522
Net cash used in investing activities
(619,947)
(438,054)
Financing activities
Dividends paid
(472,640)
-
0
Net cash used in financing activities
(472,640)
-
Net (decrease)/increase in cash and cash equivalents
(177,014)
1,760,781
Cash and cash equivalents at beginning of year
7,560,786
5,800,005
Cash and cash equivalents at end of year
7,383,772
7,560,786
MASON PEARSON BROS. LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
1
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
923,830
2,056,569
Adjustments for:
Taxation charged
180,168
526,967
Investment income
(81,900)
(17,522)
Depreciation and impairment of tangible fixed assets
302,193
252,955
Movements in working capital:
Increase in stocks
(388,040)
(162,076)
Decrease/(increase) in debtors
78,392
(271,331)
Increase/(decrease) in creditors
288,154
(52,765)
Cash generated from operations
1,302,797
2,332,797
2
Analysis of changes in net funds
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
7,560,786
(177,014)
7,383,772
3
Accounting policies
Company information

Mason Pearson Bros. Limited is a private company limited by shares incorporated in England and Wales. The registered office is 7 Easter Park, Ferry Lane South, Rainham, Essex, United Kingdom, RM13 9BP.

3.1
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 amounts 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.

3.2
Going concern

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

MASON PEARSON BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
3
Accounting policies
(Continued)
- 13 -
3.3
Turnover

Turnover represents net invoiced sales of goods, after deduction of value added tax and trade discounts. Turnover is recognised when the goods are dispatched to the customer. Ownership and rewards of goods transfers to the customer when payment is made in full.

Other income includes amounts received for a business interruption claim made for loss of profit due to the effects of Covid-19. The income is recognised on a receipt basis.

3.4
Research and development expenditure

Expenditure on research and development is written off in the year in which it is incurred.

3.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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 land and buildings
4% on cost
Leasehold improvements
20% on cost
Plant and equipment
10% on reducing balance
Fixtures and fittings
20% on cost
Computers
33.33% on cost

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.

3.6
Fixed asset investments

Interests in subsidiary undertakings are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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.

3.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

MASON PEARSON BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
3
Accounting policies
(Continued)
- 14 -
3.8
Stocks

Stocks are stated at the lower of cost, using the first in first out method, and selling price less costs to complete and sell. Specific valuation methods of the cost of the different classes of stock are as follows:

 

1. Raw materials

Cost of raw materials is calculated at the lower of cost less provision for obsolete stock.

 

2. Work in progress

Cost of work in progress is calculated based on a three day turnaround from raw material to finished goods, which includes all direct expenditure and an appropriate proportion of fixed and variable overheads associated with the production.

 

3. Finished goods

Cost of finished goods is calculated on the lower of production costs less provision for obsolete stock. The cost of a unit of production is based on an appropriate proportion of fixed production overheads and the normal capacity of the production facilities.

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.

3.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

3.10
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 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 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

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

MASON PEARSON BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
3
Accounting policies
(Continued)
- 15 -
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 creditors and bank loans 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 payments discounted at a market rate of interest. 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. Amounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

MASON PEARSON BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
3
Accounting policies
(Continued)
- 16 -
3.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

 

3.12
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.

3.13
Retirement benefits

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

3.14
Government grants

The company recognises government grants received relating to the Coronavirus Job Retention Scheme on an accruals basis. The grants are recognised in the Income Statement over the period in which the company recognises the related costs for which the grant is intended to compensate.

3.15
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.

MASON PEARSON BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
4
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.

 

Other than valuation of stock which has been separately disclosed above, there are no material items in the financial

statements where these judgement and estimates have been made.

5
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
1,736,470
1,510,720
Rest of World
4,279,396
4,525,082
6,015,866
6,035,802
2023
2022
£
£
Other revenue
Interest income
81,900
17,522
Grants received
-
4,340
Business interruption claim
102,000
1,130,000
6
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Research and development costs
20,147
39,064
Government grants
-
(4,340)
Fees payable to the company's auditor for the audit of the company's financial statements
30,000
29,900
Depreciation of owned tangible fixed assets
302,193
252,955
Operating lease charges
50,000
50,000

The financial statements include an extraordinary item in other operating income. £102,000 (2022: £1,1300,000) was received by the company for a business interruption claim made during the period. The claim was made for the loss of profit incurred by the company due to the impact of Covid-19.

MASON PEARSON BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
7
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Directors
3
3
Factory
68
67
Administration
7
7
Total
78
77

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,894,051
2,577,859
Social security costs
275,319
228,487
Pension costs
108,546
119,032
3,277,916
2,925,378
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
337,777
321,168
Company pension contributions to defined contribution schemes
4,000
4,066
341,777
325,234

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022: 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
220,535
199,471

Other than the directors, there are 3 key management personnel.

MASON PEARSON BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
9
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
81,900
17,522
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
81,900
17,522
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
64,554
387,265
Deferred tax
Origination and reversal of timing differences
115,614
139,702
Total tax charge
180,168
526,967

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,103,998
2,583,536
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
209,760
490,872
Tax effect of expenses that are not deductible in determining taxable profit
(193)
288
Permanent capital allowances in excess of depreciation
(117,840)
(66,783)
Research and development enhanced deduction
(27,173)
(37,112)
Deferred tax on accelerated capital allowances
115,614
139,702
Taxation charge for the year
180,168
526,967

The Finance Bill 2021 enacted provisions to increase the main rate of corporation tax to 25% from the current rate of 19% from 1 April 2023. The current corporation tax rate of 25% has been considered for potential deferred tax purposes.

MASON PEARSON BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
11
Dividends
2023
2022
£
£
Interim paid
472,640
-
0
12
Tangible fixed assets
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
£
Cost
At 1 April 2022
1,296,020
112,869
2,823,597
129,421
164,508
4,526,415
Additions
-
0
-
0
693,846
5,973
2,028
701,847
At 31 March 2023
1,296,020
112,869
3,517,443
135,394
166,536
5,228,262
Depreciation and impairment
At 1 April 2022
673,920
112,107
1,329,306
121,866
141,835
2,379,034
Depreciation charged in the year
51,840
482
223,382
4,544
21,945
302,193
At 31 March 2023
725,760
112,589
1,552,688
126,410
163,780
2,681,227
Carrying amount
At 31 March 2023
570,260
280
1,964,755
8,984
2,756
2,547,035
At 31 March 2022
622,100
762
1,494,291
7,555
22,673
2,147,381
13
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
14
3
3
14
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Mason Pearson Brothers Limited
7 Easter Park, Ferry Lane South, Rainham, Essex, RM13 9BP
Dormant
Ordinary
100.00
Mason Pearson Limited
7 Easter Park, Ferry Lane South, Rainham, Essex, RM13 9BP
Dormant
Ordinary
100.00
MPHP Limited
7 Easter Park, Ferry Lane South, Rainham, Essex, RM13 9BP
Dormant
Ordinary
100.00
MASON PEARSON BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
15
Stocks
2023
2022
£
£
Raw materials and consumables
687,800
526,583
Work in progress
27,525
23,173
Finished goods and goods for resale
468,673
246,202
1,183,998
795,958

Stock recognised in cost of sales during the period as an expense was £2,690,788 (2022: £2,777,212).

An impairment loss of £56,414 (2022: £98,589) was recognised during the year in respect of slow-moving and obsolete stock.

16
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
258,378
393,352
Other debtors
74,432
38,778
Prepayments and accrued income
192,844
171,916
525,654
604,046

During the year, no material impairment provisions have been made against any class of debtor.

17
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
438,188
259,798
Corporation tax
64,646
387,316
Other taxation and social security
57,929
4,750
Other creditors
133,081
127,939
Accruals and deferred income
140,443
89,000
834,287
868,803
MASON PEARSON BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
482,805
367,191
2023
Movements in the year:
£
Liability at 1 April 2022
367,191
Charge to profit or loss
115,614
Liability at 31 March 2023
482,805
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
108,546
119,032

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.

20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
21,268
21,268
21,268
21,268
Ordinary 'B' of £1 each
2,364
2,364
2,364
2,364
23,632
23,632
23,632
23,632

Called up share capital represents the nominal value of shares issued.

 

For each class of issued share capital, the shares rank equally in all respects. The directors may pay different dividends on each class of share.

MASON PEARSON BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
21
Operating lease commitments

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:

2023
2022
£
£
Within one year
50,000
50,000
Between two and five years
200,000
200,000
In over five years
175,000
225,000
425,000
475,000
22
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
281,974
254,842
Other information

During the year, on normal commercial terms, rental costs of £50,000 (2022: £50,000) were charged to the company in respect of a property in which the executive director of the company has an interest.

 

As at the year end, the company owed £Nil (2022: £20,878) to one of the directors.

23
Ultimate controlling party

The ultimate controlling party is M J Pearson.

2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.300M J PearsonA J JacksonM J SnyderA Kirkpatrickfalse010904772022-04-012023-03-3101090477bus:Director12022-04-012023-03-3101090477bus:Director22022-04-012023-03-3101090477bus:Director32022-04-012023-03-3101090477bus:CompanySecretary12022-04-012023-03-3101090477bus:RegisteredOffice2022-04-012023-03-31010904772023-03-31010904772021-04-012022-03-3101090477core:RetainedEarningsAccumulatedLosses2021-04-012022-03-3101090477core:RetainedEarningsAccumulatedLosses2022-04-012023-03-31010904772022-03-3101090477core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-03-3101090477core:LeaseholdImprovements2023-03-3101090477core:PlantMachinery2023-03-3101090477core:FurnitureFittings2023-03-3101090477core:ComputerEquipment2023-03-3101090477core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-03-3101090477core:LeaseholdImprovements2022-03-3101090477core:PlantMachinery2022-03-3101090477core:FurnitureFittings2022-03-3101090477core:ComputerEquipment2022-03-3101090477core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3101090477core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3101090477core:CurrentFinancialInstruments2023-03-3101090477core:CurrentFinancialInstruments2022-03-3101090477core:ShareCapital2023-03-3101090477core:ShareCapital2022-03-3101090477core:RetainedEarningsAccumulatedLosses2023-03-3101090477core:RetainedEarningsAccumulatedLosses2022-03-3101090477core:ShareCapital2021-03-3101090477core:RetainedEarningsAccumulatedLosses2021-03-3101090477core:ShareCapitalOrdinaryShares2023-03-3101090477core:ShareCapitalOrdinaryShares2022-03-31010904772022-03-31010904772021-03-3101090477core:LandBuildingscore:LongLeaseholdAssets2022-04-012023-03-3101090477core:LeaseholdImprovements2022-04-012023-03-3101090477core:PlantMachinery2022-04-012023-03-3101090477core:FurnitureFittings2022-04-012023-03-3101090477core:ComputerEquipment2022-04-012023-03-3101090477core:UKTax2022-04-012023-03-3101090477core:UKTax2021-04-012022-03-310109047712022-04-012023-03-310109047712021-04-012022-03-310109047722022-04-012023-03-310109047722021-04-012022-03-3101090477core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-03-3101090477core:LeaseholdImprovements2022-03-3101090477core:PlantMachinery2022-03-3101090477core:FurnitureFittings2022-03-3101090477core:ComputerEquipment2022-03-3101090477core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-04-012023-03-3101090477core:Non-currentFinancialInstruments2023-03-3101090477core:Non-currentFinancialInstruments2022-03-3101090477core:Subsidiary12022-04-012023-03-3101090477core:Subsidiary22022-04-012023-03-3101090477core:Subsidiary32022-04-012023-03-3101090477core:WithinOneYear2023-03-3101090477core:WithinOneYear2022-03-3101090477core:BetweenTwoFiveYears2023-03-3101090477core:BetweenTwoFiveYears2022-03-3101090477core:MoreThanFiveYears2023-03-3101090477core:MoreThanFiveYears2022-03-3101090477bus:PrivateLimitedCompanyLtd2022-04-012023-03-3101090477bus:FRS1022022-04-012023-03-3101090477bus:Audited2022-04-012023-03-3101090477bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP