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REGISTERED NUMBER: SC053963 (Scotland)















Strategic Report, Report of the Directors and

Audited Financial Statements For The Year Ended 31 March 2023

for

John Mitchell (Grangemouth) Limited

John Mitchell (Grangemouth) Limited (Registered number: SC053963)






Contents of the Financial Statements
For The Year Ended 31 March 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Income Statement 8

Statement of Financial Position 9

Statement of Changes in Equity 10

Statement of Cash Flows 11

Notes to the Statement of Cash Flows 12

Notes to the Financial Statements 13


John Mitchell (Grangemouth) Limited

Company Information
For The Year Ended 31 March 2023







DIRECTORS: Mr J Mitchell
Mrs J Mitchell
Mr A McGiven
Mr R J Mitchell



SECRETARY: S Mitchell



REGISTERED OFFICE: Earls Road
Grangemouth
FK3 8XA



REGISTERED NUMBER: SC053963 (Scotland)



INDEPENDENT AUDITORS: Robb Ferguson
Chartered Accountants & Statutory Auditors
Regent Court
70 West Regent Street
Glasgow
G2 2QZ



BANKERS: Barclays Bank Plc
10-15 Princes Street
Edinburgh
EH2 2AN



SOLICITORS: Macroberts LLP
60 York Street
Glasgow
G2 8JX

John Mitchell (Grangemouth) Limited (Registered number: SC053963)

Strategic Report
For The Year Ended 31 March 2023

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

REVIEW OF BUSINESS
The directors are content with the performance and progress being made with the business. Considerable investment has been made in equipment and senior staff to help take the business forward in its current shape and to prepare the company for the next generation. Some of these costs will be recurring over the next year or two but the directors know they are required in order to protect the long term success of the business.

Areas of strategic focus remain road haulage and storage.

PRINCIPAL RISKS AND UNCERTAINTIES
Finance risk management objectives and policies
The company's operations expose it to a variety of financial risks that include the effects of changes in credit risk, liquidity risk and interest rate risk. The company seeks to limit the adverse effects on the financial performance by monitoring levels of debt finance and related finance costs.

Credit risk
The company has implemented a policy that requires credit checks on potential customers, where sales will be made on credit, before the transaction takes place. The amount of exposure to any individual counterparty is subject to limit which is regularly assessed by the directors.

Liquidity risk
The company aims to mitigate risk by managing cash generated by its operations.

Interest rate cash flow risk
While the company utilises external debt, its exposure to interest rate risk is kept to a minimum. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature.

Foreign currency risk
The company is exposed to transaction foreign exchange risk. Most sales are conducted in sterling but occasions occur when some customers are billed in Euros.

GOING CONCERN
The directors have assessed that the company has adequate resources to meet the ongoing costs of the business for a minimum of twelve months from the date of signing the financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

KEY PERFORMANCE INDICATORS
The directors have identified the following key financial performance indicators :

2023 2022
Turnover £21,884,747 £18,552,583
Gross profit 23% 22%
Net assets £9,077,381 £7,853,253

The company also monitors haulage days, haulage turnover per day and mileage analysis per truck.

BY ORDER OF THE BOARD:





Mr J Mitchell - Director


3 November 2023

John Mitchell (Grangemouth) Limited (Registered number: SC053963)

Report of the Directors
For The Year Ended 31 March 2023

The directors present their report with the financial statements of the company for the year ended 31 March 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of road haulage and storage.

DIVIDENDS
An interim dividend of £7.58 per share was paid on 31 March 2023. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2023 will be £ 500,000 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

Mr J Mitchell
Mrs J Mitchell
Mr A McGiven
Mr R J Mitchell

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

BY ORDER OF THE BOARD:





Mr J Mitchell - Director


3 November 2023

Report of the Independent Auditors to the Members of
John Mitchell (Grangemouth) Limited

Opinion
We have audited the financial statements of John Mitchell (Grangemouth) Limited (the 'company') for the year ended 31 March 2023 which comprise the Income Statement, 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:
-give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its profit 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.

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.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' 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 financial statements are 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
John Mitchell (Grangemouth) Limited


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 Report of the Directors.

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 Statement of Directors' Responsibilities set out on page three, 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 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.

Report of the Independent Auditors to the Members of
John Mitchell (Grangemouth) Limited


Auditors' 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our wider knowledge and experience;
- We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and FRS 102.
- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations

Audit response to risks identified
To address the risk of fraud through management bias and override of controls, we:
- Performed analytical procedures to identify any unusual or unexpected relationships;
- Tested journal entries to identify unusual transactions;
- Assessed whether judgements and assumptions made in determining the accounting estimates set out were indicative of potential bias; and
- Investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- Agreeing financial statement disclosures to underlying supporting documentation;
- Reading the minutes of meetings of those charged with governance;
- Enquiring of management as to actual and potential litigation and claims; and
- Requesting correspondence with HMRC, Companies House and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
John Mitchell (Grangemouth) Limited


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 a Report of the Auditors 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.




Janice Alexander (Senior Statutory Auditor)
for and on behalf of Robb Ferguson
Chartered Accountants & Statutory Auditors
Regent Court
70 West Regent Street
Glasgow
G2 2QZ

3 November 2023

John Mitchell (Grangemouth) Limited (Registered number: SC053963)

Income Statement
For The Year Ended 31 March 2023

2023 2022
Notes £    £    £    £   

TURNOVER 3 21,884,747 18,552,583

Cost of sales 16,935,936 14,473,110
GROSS PROFIT 4,948,811 4,079,473

Distribution costs 1,116,816 991,710
Administrative expenses 1,618,204 2,757,483
2,735,020 3,749,193
2,213,791 330,280

Other operating income 16,757 235,754
OPERATING PROFIT 5 2,230,548 566,034

Interest receivable and similar income 14,713 6,881
2,245,261 572,915

Interest payable and similar expenses 6 293,977 144,439
PROFIT BEFORE TAXATION 1,951,284 428,476

Tax on profit 7 227,156 308,031
PROFIT FOR THE FINANCIAL YEAR 1,724,128 120,445

OTHER COMPREHENSIVE LOSS
Release of revaluation reserve - (1,121,722 )
Income tax relating to other comprehensive
loss

-

-
OTHER COMPREHENSIVE LOSS FOR
THE YEAR, NET OF INCOME TAX

-

(1,121,722

)
TOTAL COMPREHENSIVE
INCOME/(LOSS) FOR THE YEAR

1,724,128

(1,001,277

)

John Mitchell (Grangemouth) Limited (Registered number: SC053963)

Statement of Financial Position
31 March 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 14,085,436 11,371,499

CURRENT ASSETS
Stocks 10 50,736 110,708
Debtors 11 3,471,453 3,776,793
Cash at bank and in hand 2,214,388 571,568
5,736,577 4,459,069
CREDITORS
Amounts falling due within one year 12 3,911,266 3,481,829
NET CURRENT ASSETS 1,825,311 977,240
TOTAL ASSETS LESS CURRENT
LIABILITIES

15,910,747

12,348,739

CREDITORS
Amounts falling due after more than one
year

13

(5,490,147

)

(3,379,423

)

PROVISIONS FOR LIABILITIES 17 (1,343,219 ) (1,116,063 )
NET ASSETS 9,077,381 7,853,253

CAPITAL AND RESERVES
Called up share capital 18 66,000 66,000
Capital redemption reserve 34,000 34,000
Retained earnings 8,977,381 7,753,253
SHAREHOLDERS' FUNDS 9,077,381 7,853,253

The financial statements were approved by the Board of Directors and authorised for issue on 3 November 2023 and were signed on its behalf by:





Mr J Mitchell - Director


John Mitchell (Grangemouth) Limited (Registered number: SC053963)

Statement of Changes in Equity
For The Year Ended 31 March 2023

Called up Capital
share Retained Revaluation redemption Total
capital earnings reserve reserve equity
£    £    £    £    £   

Balance at 1 April 2021 66,000 7,821,446 1,133,084 34,000 9,054,530

Changes in equity
Dividends - (200,000 ) - - (200,000 )
Total comprehensive loss - 131,807 (1,133,084 ) - (1,001,277 )
Balance at 31 March 2022 66,000 7,753,253 - 34,000 7,853,253

Changes in equity
Dividends - (500,000 ) - - (500,000 )
Total comprehensive income - 1,724,128 - - 1,724,128
Balance at 31 March 2023 66,000 8,977,381 - 34,000 9,077,381

John Mitchell (Grangemouth) Limited (Registered number: SC053963)

Statement of Cash Flows
For The Year Ended 31 March 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 3,746,739 2,400,675
Interest paid (43,318 ) (27,103 )
Interest element of hire purchase payments
paid

(250,659

)

(117,336

)
Tax (paid) / refunded 407,172 (134,322 )
Net cash from operating activities 3,859,934 2,121,914

Cash flows from investing activities
Purchase of tangible fixed assets (423,981 ) (3,569,322 )
Sale of tangible fixed assets 31,773 100,580
Interest received 14,713 6,881
Net cash from investing activities (377,495 ) (3,461,861 )

Cash flows from financing activities
Loan repayments (133,463 ) (135,476 )
Capital repayments in year (1,206,156 ) (753,973 )
Equity dividends paid (500,000 ) (200,000 )
Net cash from financing activities (1,839,619 ) (1,089,449 )

Increase/(decrease) in cash and cash equivalents 1,642,820 (2,429,396 )
Cash and cash equivalents at beginning of
year

2

571,568

3,000,964

Cash and cash equivalents at end of year 2 2,214,388 571,568

John Mitchell (Grangemouth) Limited (Registered number: SC053963)

Notes to the Statement of Cash Flows
For The Year Ended 31 March 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 1,951,284 428,476
Depreciation charges 1,594,588 1,242,698
Profit on disposal of fixed assets (12,622 ) (39,678 )
Impairment - 859,541
Finance costs 293,977 144,439
Finance income (14,713 ) (6,881 )
3,812,514 2,628,595
Decrease/(increase) in stocks 59,972 (95,285 )
Increase in trade and other debtors (101,830 ) (543,356 )
(Decrease)/increase in trade and other creditors (23,917 ) 410,721
Cash generated from operations 3,746,739 2,400,675

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 2,214,388 571,568
Year ended 31 March 2022
31.3.22 1.4.21
£    £   
Cash and cash equivalents 571,568 3,000,964


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.4.22 Cash flow At 31.3.23
£    £    £   
Net cash
Cash at bank and in hand 571,568 1,642,820 2,214,388
571,568 1,642,820 2,214,388
Debt
Finance leases (3,476,213 ) (2,697,541 ) (6,173,754 )
Debts falling due within 1 year (135,971 ) (2,014 ) (137,985 )
Debts falling due after 1 year (826,771 ) 135,477 (691,294 )
(4,438,955 ) (2,564,078 ) (7,003,033 )
Total (3,867,387 ) (921,258 ) (4,788,645 )

John Mitchell (Grangemouth) Limited (Registered number: SC053963)

Notes to the Financial Statements
For The Year Ended 31 March 2023

1. STATUTORY INFORMATION

John Mitchell (Grangemouth) Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

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


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The significant accounting policies applied in the preparation of the financial statements are set out below. The policies have been consistently applied to all years presented unless otherwise stated.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Critical accounting judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities reported at the balance sheet date and the amounts reported for revenue and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements and estimates have had the most significant effects on amounts recognised in the financial statements.

Depreciation

The estimates and assumptions used to determine the depreciation charge requires judgements to be made as regards asset useful lives and residual values. The useful lives and residual values of the company's fixed assets are determined by management at the time time the asset is acquired and reviewed annually for appropriateness. The lives are based on historical experience with similar assets. Historically, changes in useful lives have not resulted in material changes to the company's depreciation charge.

Turnover
Turnover is stated net of VAT and trade discounts. Turnover from the sale of goods is recognised when the goods are physically delivered to the customer. Turnover from the supply of services represents the value of services provided to the extent that there is a right to consideration and is recorded at the value of the consideration due.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Heritable land & buildings - 10% on cost, 5% on cost, 3% on cost and 2% on cost
Fixed plant and equipment - 100% on cost and Between 10% and 50%
Motor vehicles - Between 10% and 50%

Tangible fixed assets are stated at cost (or deemed cost for land and buildings held at valuation at the date of transition to FRS102) less accumulated depreciation.

Within Heritable land & buildings the heritable land is not depreciated.

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

John Mitchell (Grangemouth) Limited (Registered number: SC053963)

Notes to the Financial Statements - continued
For The Year Ended 31 March 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
Basic financial instruments are recognised at amortised cost, except for investments in non-convertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the statement of financial position. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Operating lease agreements
Rental applicable to operating leases where substantially all of the benefits and risk of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. TURNOVER

The turnover and profit before taxation are attributable to the principal activity of the company as detailed in the directors' report.

During the year the company derived 38.8% (2022 - 41.6%) of its turnover from outwith the United Kingdom.

John Mitchell (Grangemouth) Limited (Registered number: SC053963)

Notes to the Financial Statements - continued
For The Year Ended 31 March 2023

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 7,485,798 6,278,019
Social security costs 769,814 596,404
Other pension costs 256,358 230,088
8,511,970 7,104,511

The average number of employees during the year was as follows:
2023 2022

Operating staff 191 164
Administration staff 30 29
221 193

2023 2022
£    £   
Directors' remuneration 269,592 250,939
Directors' pension contributions to money purchase schemes 37,063 35,559

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 4 4

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 77,680 72,390
Pension contributions to money purchase schemes 10,671 9,920

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets 593,993 698,664
Depreciation - assets on hire purchase contracts 1,000,596 544,033
Profit on disposal of fixed assets (12,622 ) (39,678 )
Auditors' remuneration 7,950 7,450
Operating lease rentals 1,363,542 1,706,174

John Mitchell (Grangemouth) Limited (Registered number: SC053963)

Notes to the Financial Statements - continued
For The Year Ended 31 March 2023

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 5,316 5,395
Bank loan interest 38,002 21,708
Hire purchase 250,659 117,336
293,977 144,439

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax - (300,430 )

Deferred tax 227,156 608,461
Tax on profit 227,156 308,031

UK corporation tax has been charged at 19% (2022 - 19%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 1,951,284 428,476
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

370,744

81,410

Effects of:
Permanent differences 7,386 3,887
Timing differences (737,405 ) (349,000 )
Deferred tax movement 227,156 608,461
Overprovision - (36,727 )
Losses carried forward 359,275 -
Total tax charge 227,156 308,031

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 March 2023.

2022
Gross Tax Net
£    £    £   
Release of revaluation reserve (1,121,722 ) - (1,121,722 )

John Mitchell (Grangemouth) Limited (Registered number: SC053963)

Notes to the Financial Statements - continued
For The Year Ended 31 March 2023

8. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Final - 200,000
Interim 500,000 -
500,000 200,000

9. TANGIBLE FIXED ASSETS
Heritable Fixed
land & plant and Motor
buildings equipment vehicles Totals
£    £    £    £   
COST
At 1 April 2022 6,300,000 1,375,894 7,780,671 15,456,565
Additions 252,971 107,110 3,967,596 4,327,677
Disposals - (10,470 ) (116,050 ) (126,520 )
At 31 March 2023 6,552,971 1,472,534 11,632,217 19,657,722
DEPRECIATION
At 1 April 2022 - 878,543 3,206,523 4,085,066
Charge for year 198,705 139,877 1,256,007 1,594,589
Eliminated on disposal - (10,470 ) (96,899 ) (107,369 )
At 31 March 2023 198,705 1,007,950 4,365,631 5,572,286
NET BOOK VALUE
At 31 March 2023 6,354,266 464,584 7,266,586 14,085,436
At 31 March 2022 6,300,000 497,351 4,574,148 11,371,499

Included within heritable land & buildings is land of £2,520,000 (2022 - £2,520,000) which is not depreciated.

John Mitchell (Grangemouth) Limited (Registered number: SC053963)

Notes to the Financial Statements - continued
For The Year Ended 31 March 2023

9. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Fixed
plant and Motor
equipment vehicles Totals
£    £    £   
COST
At 1 April 2022 254,310 4,583,128 4,837,438
Additions - 3,903,696 3,903,696
Transfer to ownership (70,349 ) (407,831 ) (478,180 )
At 31 March 2023 183,961 8,078,993 8,262,954
DEPRECIATION
At 1 April 2022 63,146 831,329 894,475
Charge for year 25,431 975,165 1,000,596
Transfer to ownership (39,389 ) (271,097 ) (310,486 )
At 31 March 2023 49,188 1,535,397 1,584,585
NET BOOK VALUE
At 31 March 2023 134,773 6,543,596 6,678,369
At 31 March 2022 191,164 3,751,799 3,942,963

10. STOCKS
2023 2022
£    £   
Fuel stock 50,736 110,708

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 3,362,183 3,123,595
Corporation tax - 407,170
VAT - 26,148
Prepayments and accrued income 109,270 219,880
3,471,453 3,776,793

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 14) 137,985 135,971
Hire purchase contracts (see note 15) 1,374,901 923,561
Trade creditors 958,183 1,161,377
Social security and other taxes 161,729 124,822
VAT 86,516 -
Other creditors 879,493 487,361
Accruals and deferred income 312,459 648,737
3,911,266 3,481,829

John Mitchell (Grangemouth) Limited (Registered number: SC053963)

Notes to the Financial Statements - continued
For The Year Ended 31 March 2023

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 14) 691,294 826,771
Hire purchase contracts (see note 15) 4,798,853 2,552,652
5,490,147 3,379,423

14. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 137,985 135,971

Amounts falling due between one and two years:
Bank loans - 1-2 years 530,062 138,624

Amounts falling due between two and five years:
Bank loans - 2-5 years 161,232 688,147

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 1,374,901 923,561
Between one and five years 4,798,853 2,552,652
6,173,754 3,476,213

Non-cancellable operating leases
2023 2022
£    £   
Within one year 914,077 930,979
Between one and five years 1,269,687 1,120,580
In more than five years 28,210 88,126
2,211,974 2,139,685

John Mitchell (Grangemouth) Limited (Registered number: SC053963)

Notes to the Financial Statements - continued
For The Year Ended 31 March 2023

16. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 829,279 962,742
Hire purchase contracts 6,173,754 3,476,213
7,003,033 4,438,955

Barclays Bank Plc hold fixed and floating charges over the assets of the company (with the exception of Heritable land & buildings) in relation to the invoice finance facility provided.

Barclays Bank Plc holds a standard security over Earls Road Industrial Estate Stirlingshire and the Evans Business Centre in relation to the two term loan facility's provided.

17. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 1,343,219 1,116,063

Deferred
tax
£   
Balance at 1 April 2022 1,116,063
Provided during year 227,156
Balance at 31 March 2023 1,343,219

18. CALLED UP SHARE CAPITAL


Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
66,000 Ordinary £1 66,000 66,000

19. ULTIMATE PARENT COMPANY

John Mitchell Group Limited is regarded by the directors as being the company's ultimate parent company.

20. CAPITAL COMMITMENTS
2023 2022
£    £   
Contracted but not provided for in the
financial statements - 86,350

21. ULTIMATE CONTROLLING PARTY

The company is controlled by the director, Mr J Mitchell.