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REGISTERED NUMBER: SC688583 (Scotland)















Group Strategic Report, Report of the Directors and

Consolidated Financial Statements For The Year Ended 31 March 2023

for

John Mitchell Group Limited

John Mitchell Group Limited (Registered number: SC688583)






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




Page

Group Strategic Report 1

Report of the Directors 2

Report of the Independent Auditors 4

Consolidated Statement of Comprehensive Income 8

Consolidated Statement of Financial Position 9

Company Statement of Financial Position 10

Consolidated Statement of Changes in Equity 11

Company Statement of Changes in Equity 12

Consolidated Statement of Cash Flows 13

Notes to the Consolidated Statement of Cash Flows 14

Notes to the Consolidated Financial Statements 16


John Mitchell Group Limited (Registered number: SC688583)

Group Strategic Report
For The Year Ended 31 March 2023

The directors present their strategic report of the company and the group 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 group 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 group and 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 group and 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 group and 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 group and 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 £21,162,581
Gross profit 23% 21%
Net assets £9,945,379 £8,340,753

ON BEHALF OF THE BOARD:





J Mitchell - Director


3 November 2023

John Mitchell Group Limited (Registered number: SC688583)

Report of the Directors
For The Year Ended 31 March 2023

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

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

DIVIDENDS
Interim dividends per share were paid as follows:
Ordinary A £1 shares £0.52 -
Ordinary B £1 shares £4.17 -
Ordinary C £1 shares £9.77 -


The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 31 March 2023 will be £ 119,500 .

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

J Mitchell
Miss L J Mitchell
R J Mitchell

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group 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). 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

John Mitchell Group Limited (Registered number: SC688583)

Report of the Directors
For The Year Ended 31 March 2023


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 group'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 group's auditors are aware of that information.

ON BEHALF OF THE BOARD:



J Mitchell - Director


3 November 2023

Report of the Independent Auditors to the Members of
John Mitchell Group Limited

Opinion
We have audited the financial statements of John Mitchell Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 March 2023 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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 Group Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company 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 two, 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 group's and the parent 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 group or the parent 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 Group 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 and group, 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 and group'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 Group 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 Group Limited (Registered number: SC688583)

Consolidated
Statement of Comprehensive
Income
For The Year Ended 31 March 2023

Year Ended Period
31.3.23 9.2.21 to 31.3.22
Notes £    £    £    £   

TURNOVER 3 21,884,747 21,162,581

Cost of sales 16,935,936 16,703,549
GROSS PROFIT 4,948,811 4,459,032

Distribution costs 1,116,816 1,093,152
Administrative expenses 1,618,206 3,067,989
2,735,022 4,161,141
2,213,789 297,891

Other operating income 16,757 254,367
OPERATING PROFIT 5 2,230,546 552,258

Interest receivable and similar income 14,713 6,881
2,245,259 559,139

Interest payable and similar expenses 6 293,977 164,235
PROFIT BEFORE TAXATION 1,951,282 394,904

Tax on profit 7 227,156 317,031
PROFIT FOR THE FINANCIAL YEAR 1,724,126 77,873

OTHER COMPREHENSIVE INCOME
Acquisition adjustment - 7,287,658
Release of revaluation reserve - 1,121,722
Income tax relating to components of other
comprehensive income

-

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

-

8,409,380
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,724,126

8,487,253

Profit attributable to:
Owners of the parent 1,724,126 77,873

Total comprehensive income attributable to:
Owners of the parent 1,724,126 8,487,253

John Mitchell Group Limited (Registered number: SC688583)

Consolidated Statement of Financial Position
31 March 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 14,085,434 11,371,497
Investments 11 - -
14,085,434 11,371,497

CURRENT ASSETS
Stocks 12 50,736 110,708
Debtors 13 3,471,453 3,776,795
Cash at bank and in hand 2,214,388 571,568
5,736,577 4,459,071
CREDITORS
Amounts falling due within one year 14 3,043,266 2,994,329
NET CURRENT ASSETS 2,693,311 1,464,742
TOTAL ASSETS LESS CURRENT
LIABILITIES

16,778,745

12,836,239

CREDITORS
Amounts falling due after more than one
year

15

(5,490,147

)

(3,379,423

)

PROVISIONS FOR LIABILITIES 19 (1,343,219 ) (1,116,063 )
NET ASSETS 9,945,379 8,340,753

CAPITAL AND RESERVES
Called up share capital 20 66,000 66,000
Capital redemption reserve 21 34,000 34,000
Retained earnings 21 9,845,379 8,240,753
SHAREHOLDERS' FUNDS 9,945,379 8,340,753

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:





J Mitchell - Director


John Mitchell Group Limited (Registered number: SC688583)

Company Statement of Financial Position
31 March 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 - -
Investments 11 66,000 66,000
66,000 66,000

CURRENT ASSETS
Debtors 13 868,000 487,500
NET CURRENT ASSETS 868,000 487,500
TOTAL ASSETS LESS CURRENT
LIABILITIES

934,000

553,500

CAPITAL AND RESERVES
Called up share capital 20 66,000 66,000
Retained earnings 21 868,000 487,500
SHAREHOLDERS' FUNDS 934,000 553,500

Company's profit for the financial year 500,000 700,000

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:





J Mitchell - Director


John Mitchell Group Limited (Registered number: SC688583)

Consolidated 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
£    £    £    £    £   

Changes in equity
Profit for the period - 77,873 - - 77,873
Other comprehensive income - 8,375,380 - 34,000 8,409,380
Total comprehensive income - 8,453,253 - 34,000 8,487,253
Issue of share capital 66,000 - - - 66,000
Dividends - (212,500 ) - - (212,500 )
Balance at 31 March 2022 66,000 8,240,753 - 34,000 8,340,753

Changes in equity
Profit for the year - 1,724,126 - - 1,724,126
Total comprehensive income - 1,724,126 - - 1,724,126
Dividends - (119,500 ) - - (119,500 )
Balance at 31 March 2023 66,000 9,845,379 - 34,000 9,945,379

John Mitchell Group Limited (Registered number: SC688583)

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

Called up
share Retained Total
capital earnings equity
£    £    £   

Changes in equity
Issue of share capital 66,000 - 66,000
Dividends - (212,500 ) (212,500 )
Total comprehensive income - 700,000 700,000
Balance at 31 March 2022 66,000 487,500 553,500

Changes in equity
Dividends - (119,500 ) (119,500 )
Total comprehensive income - 500,000 500,000
Balance at 31 March 2023 66,000 868,000 934,000

John Mitchell Group Limited (Registered number: SC688583)

Consolidated Statement of Cash Flows
For The Year Ended 31 March 2023

Period
9.2.21
Year Ended to
31.3.23 31.3.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 3,366,239 2,965,340
Interest paid (43,318 ) (30,457 )
Interest element of hire purchase payments
paid

(250,659

)

(133,778

)
Tax (paid) / refunded 407,171 (143,322 )
Net cash from operating activities 3,479,433 2,657,783

Cash flows from investing activities
Purchase of tangible fixed assets (423,981 ) (3,722,779 )
Sale of tangible fixed assets 31,773 107,287
Cash on acquisition - 2,790,004
Interest received 14,713 6,881
Net cash from investing activities (377,495 ) (818,607 )

Cash flows from financing activities
Loan repayments in year (133,463 ) (159,195 )
Capital repayments in year (1,206,155 ) (895,913 )
Equity dividends paid (119,500 ) (212,500 )
Net cash from financing activities (1,459,118 ) (1,267,608 )

Increase in cash and cash equivalents 1,642,820 571,568
Cash and cash equivalents at beginning of
year

2

571,568

-

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

John Mitchell Group Limited (Registered number: SC688583)

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

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
Period
9.2.21
Year Ended to
31.3.23 31.3.22
£    £   
Profit before taxation 1,951,282 394,904
Depreciation charges 1,594,588 1,419,905
Profit on disposal of fixed assets (12,622 ) (46,385 )
Impairment - 939,096
Finance costs 293,977 164,235
Finance income (14,713 ) (6,881 )
3,812,512 2,864,874
Decrease/(increase) in stocks 59,972 (82,911 )
Increase in trade and other debtors (101,828 ) (685,773 )
(Decrease)/increase in trade and other creditors (404,417 ) 869,150
Cash generated from operations 3,366,239 2,965,340

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
Period ended 31 March 2022
31.3.22 9.2.21
£    £   
Cash and cash equivalents 571,568 -


John Mitchell Group Limited (Registered number: SC688583)

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

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 Group Limited (Registered number: SC688583)

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

1. STATUTORY INFORMATION

John Mitchell Group Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address are as below:

Registered number: SC688583

Registered office: Earls Road
Grangemouth
United Kingdom
FK3 8XA

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.

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%

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 Group Limited (Registered number: SC688583)

Notes to the Consolidated 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 Consolidated Statement of Comprehensive Income, 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
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 group operates a defined contribution pension scheme. Contributions payable to the group'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 period the group derived 38.8% (2022: 41.6%) of its turnover from outwith the United Kingdom.

John Mitchell Group Limited (Registered number: SC688583)

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

4. EMPLOYEES AND DIRECTORS
Period
9.2.21
Year Ended to
31.3.23 31.3.22
£    £   
Wages and salaries 7,485,798 7,090,503
Social security costs 769,814 724,557
Other pension costs 256,358 278,161
8,511,970 8,093,221

The average number of employees during the year was as follows:
Period
9.2.21
Year Ended to
31.3.23 31.3.22

Operating staff 191 164
Administration staff 30 29
221 193

The average number of employees by undertakings that were proportionately consolidated during the year was 221 (2022 - 193 ) .

Period
9.2.21
Year Ended to
31.3.23 31.3.22
£    £   
Directors' remuneration 269,592 285,445
Directors' pension contributions to money purchase schemes 37,063 35,559

Information regarding the highest paid director is as follows:
Period
9.2.21
Year Ended to
31.3.23 31.3.22
£    £   
Emoluments etc 77,680 85,340
Pension contributions to money purchase schemes 10,671 12,599

John Mitchell Group Limited (Registered number: SC688583)

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

5. OPERATING PROFIT

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

Period
9.2.21
Year Ended to
31.3.23 31.3.22
£    £   
Depreciation - owned assets 593,993 811,891
Depreciation - assets on hire purchase contracts 1,000,596 608,014
Profit on disposal of fixed assets (12,622 ) (46,385 )
Auditors' remuneration 7,950 7,450
Operating lease rentals 1,363,542 2,016,761

6. INTEREST PAYABLE AND SIMILAR EXPENSES
Period
9.2.21
Year Ended to
31.3.23 31.3.22
£    £   
Bank interest 5,316 5,080
Bank loan interest 38,002 25,377
Hire purchase 250,659 133,778
293,977 164,235

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
Period
9.2.21
Year Ended to
31.3.23 31.3.22
£    £   
Current tax:
UK corporation tax - (291,430 )

Deferred tax 227,156 608,461
Tax on profit 227,156 317,031

John Mitchell Group Limited (Registered number: SC688583)

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

7. TAXATION - continued

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:

Period
9.2.21
Year Ended to
31.3.23 31.3.22
£    £   
Profit before tax 1,951,282 394,904
Profit multiplied by the standard rate of corporation tax in the UK of 19 %
(2022 - 19 %)

370,744

75,032

Effects of:
Permanent differences 7,386 (29,269 )
Timing differences (737,405 ) (300,466 )
Deferred tax movement 227,156 608,461
Overprovision - (36,727 )
Losses carried forward 359,275 -
Total tax charge 227,156 317,031

Tax effects relating to effects of other comprehensive income

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

9.2.21 to 31.3.22
Gross Tax Net
£    £    £   
Acquisition adjustment 7,287,658 - 7,287,658
Release of revaluation reserve 1,121,722 - 1,121,722
8,409,380 - 8,409,380

8. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


John Mitchell Group Limited (Registered number: SC688583)

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

9. DIVIDENDS
Period
9.2.21
Year Ended to
31.3.23 31.3.22
£    £   
Ordinary A shares of £1 each
Interim 27,500 100,000
Ordinary B shares of £1 each
Interim 27,500 75,000
Ordinary C shares of £1 each
Interim 64,500 37,500
119,500 212,500

10. TANGIBLE FIXED ASSETS

Group
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 - 878,544 3,206,524 4,085,068
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 1,007,951 4,365,632 5,572,288
NET BOOK VALUE
At 31 March 2023 6,354,266 464,583 7,266,585 14,085,434
At 31 March 2022 6,300,000 497,350 4,574,147 11,371,497

Included in cost of land and buildings is freehold land of £2,520,000 (2022 - £2,520,000) which is not depreciated.

John Mitchell Group Limited (Registered number: SC688583)

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

10. TANGIBLE FIXED ASSETS - continued

Group

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 63,147 831,329 894,476
Charge for year 25,431 975,165 1,000,596
Transfer to ownership (39,389 ) (271,097 ) (310,486 )
At 31 March 2023 49,189 1,535,397 1,584,586
NET BOOK VALUE
At 31 March 2023 134,772 6,543,596 6,678,368
At 31 March 2022 191,163 3,751,799 3,942,962

11. FIXED ASSET INVESTMENTS

Company
Unlisted
investments
£   
COST
At 1 April 2022
and 31 March 2023 66,000
NET BOOK VALUE
At 31 March 2023 66,000
At 31 March 2022 66,000


12. STOCKS

Group
2023 2022
£    £   
Fuel stock 50,736 110,708

John Mitchell Group Limited (Registered number: SC688583)

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

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade debtors 3,362,183 3,123,595 - -
Other debtors - - 868,000 487,500
Corporation tax - 407,170 - -
VAT - 26,148 - -
Prepayments and accrued income 109,270 219,882 - -
3,471,453 3,776,795 868,000 487,500

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
2023 2022
£    £   
Bank loans and overdrafts (see note 16) 137,985 135,971
Hire purchase contracts (see note 17) 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 11,493 -
Accruals and deferred income 312,459 648,598
3,043,266 2,994,329

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group
2023 2022
£    £   
Bank loans (see note 16) 691,294 826,771
Hire purchase contracts (see note 17) 4,798,853 2,552,652
5,490,147 3,379,423

John Mitchell Group Limited (Registered number: SC688583)

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

16. LOANS

An analysis of the maturity of loans is given below:

Group
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

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
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

Group
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 Group Limited (Registered number: SC688583)

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

18. SECURED DEBTS

The following secured debts are included within creditors:

Group
2023 2022
£    £   
Bank loans 829,278 962,742
Hire purchase contracts 6,173,754 3,476,213
7,003,032 4,438,955

Barclays Bank Plc hold fixed and floating charges over the assets of John Mitchell (Grangemouth) Limited (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.

19. PROVISIONS FOR LIABILITIES

Group
2023 2022
£    £   
Deferred tax 1,343,219 1,116,063

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

20. CALLED UP SHARE CAPITAL




Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
52,800 Ordinary A £1 52,800 52,800
6,600 Ordinary B £1 6,600 6,600
6,600 Ordinary C £1 6,600 6,600
66,000 66,000

John Mitchell Group Limited (Registered number: SC688583)

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

21. RESERVES

Group
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 April 2022 8,240,753 34,000 8,274,753
Profit for the year 1,724,126 1,724,126
Dividends (119,500 ) (119,500 )
At 31 March 2023 9,845,379 34,000 9,879,379

Company
Retained
earnings
£   

At 1 April 2022 487,500
Profit for the year 500,000
Dividends (119,500 )
At 31 March 2023 868,000


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

23. ULTIMATE CONTROLLING PARTY

The controlling party is J Mitchell.