Company Registration No. 11120476 (England and Wales)
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
COMPANY INFORMATION
Director
Mr K D Haynes
Company number
11120476
Registered office
KDH House
Millfield Road
Donington
Spalding
Lincs
PE11 4UR
Auditor
TC Group
1-4 London Road
Spalding
Lincolnshire
PE11 2TA
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10 - 11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
CONTENTS
Notes to the financial statements
16 - 38
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

The director presents the strategic report for the year ended 30 June 2023.

Fair review of the business

During a challenging year for the industry with inflationary pressures on costs, the business has continued to operate efficiently and profitably during the year. The director is confident in the groups position and that the group will continue to operate profitably in the coming years.

 

The Group's key performance indicators during the year were:

Unit
2023
2022
Turnover
£
19,068,938
16,414,566
Gross Profit Margin
%
24
15
Principal risks and uncertainties

The Group has established a financial management framework whose primary objectives are to protect the Group from events that hinder the achievement of the group's performance objectives. The objectives aim to limit undue counterparty exposure, ensure sufficient working capital exists and monitor the management of risk.

The key risks affecting the Group are set out below:

Market
The industry in which the Group operates, particularly the sector supplying the multiple food manufacturers, is reliant upon their customer's needs and growth strategies. The Group operates a policy of continuously working with its customers to ensure product and service offerings continue to meet and exceed consumer expectation. The Group considers all risks in its quoted job offerings.

Customer and Supplier relationships
The Group recognises the importance of both its customer and supplier relationships in delivering both its strategy and continued growth aspirations. The Group interacts closely and regularly with its customers and suppliers to develop open and honest relationships ensuring focus on project offerings are maintained and allowing challenges to be overcome in an efficient and practical manner.

Employees and labour
The Group values its workforce and recognises the significance this key resource delivers in providing the ability of the Group to achieve its aspirations. In addition, the Group recognises there is a continued demand across the industry for the Group's skilled workforce. The Group manages these risks by ensuring its workforce is highly valued and provides opportunities for development and progression whilst offering fair and competitive remuneration packages.

Credit risk
The Group trades largely with blue chip food manufacturers with which the company considers the credit risk to be low. Nevertheless, the Group operates a policy of regular monitoring of amounts outstanding for both length of time outstanding and credit limits assigned. The group keeps abreast of developments within its customers businesses and monitors reporting for indicators of potential changes in risk levels.

CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -
Development and performance
The director aims to maintain policies which have resulted in the group's success in recent years. The director consider that the next year will show further success from continuing operations.

On behalf of the board

Mr K D Haynes
Director
17 January 2024
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -

The director presents his annual report and financial statements for the year ended 30 June 2023.

Principal activities

The principal activity of the company and group continued to be that of a holding company, holding investments in businesses operating in the construction industry.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £277,500. The director does not recommend payment of a further dividend.

Director

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

Mr K D Haynes
Going conern

Inflationary measures on materials and labour continue to have an impact on the industry, however the company continued to trade profitably. These pressures are expected to ease in 2024 and the directors have a reasonable expectation that the company have adequate facilities to continue for a period of at least 12 months following the dates of the finical statements. Given that, the financial statements have been prepared on a going concern basis.

Auditor

The auditor, TC Group, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 auditor of the company 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 auditor of the company is aware of that information.

 

The director has chosen to set out the following information in the strategic report rather than the director's report:

On behalf of the board
Mr K D Haynes
Director
17 January 2024
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023
- 4 -

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Moth Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 director with respect to going concern are described in the relevant sections of this report.

CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
- 6 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. 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. 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 course of 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:

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 strategic report and the director's report.

 

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

 

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
- 7 -
Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect of fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. however, the primary responsibility for the prevention and detection of fraud rests with those charged with governance of the entity and its management.

Our approach was as follows:

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;

We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;

We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;

We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

 

CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
- 8 -

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.

Peter Wright (Senior Statutory Auditor)
For and on behalf of TC Group
22 January 2024
Chartered Accountants
Statutory Auditor
1-4 London Road
Spalding
Lincolnshire
PE11 2TA
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
19,068,937
16,414,565
Cost of sales
(14,923,113)
(13,952,218)
Gross profit
4,145,824
2,462,347
Administrative expenses
(2,430,090)
(2,078,399)
Other operating income
79,616
47,761
Operating profit
4
1,795,350
431,709
Interest receivable and similar income
8
24,525
409
Interest payable and similar expenses
9
(123,778)
(65,505)
Profit before taxation
1,696,097
366,613
Tax on profit
10
(350,005)
(75,436)
Profit for the financial year
25
1,346,092
291,177
Profit for the financial year is attributable to:
- Owners of the parent company
1,255,753
247,951
- Non-controlling interests
90,339
43,226
1,346,092
291,177
Total comprehensive income for the year is attributable to:
- Owners of the parent company
1,255,753
247,951
- Non-controlling interests
90,339
43,226
1,346,092
291,177
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
30 JUNE 2023
30 June 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,099,835
913,453
Investment properties
14
1,809,192
1,104,094
Investments
15
500,000
-
0
3,409,027
2,017,547
Current assets
Stocks
17
308,520
357,661
Debtors
18
3,333,164
5,342,687
Cash at bank and in hand
5,921,578
4,658,560
9,563,262
10,358,908
Creditors: amounts falling due within one year
19
(4,100,805)
(4,595,767)
Net current assets
5,462,457
5,763,141
Total assets less current liabilities
8,871,484
7,780,688
Creditors: amounts falling due after more than one year
20
(2,177,365)
(2,069,412)
Provisions for liabilities
Deferred tax liability
23
119,067
119,016
(119,067)
(119,016)
Net assets
6,575,052
5,592,260
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
25
6,556,726
5,578,473
Equity attributable to owners of the parent company
6,556,826
5,578,573
Non-controlling interests
18,226
13,687
6,575,052
5,592,260
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
30 JUNE 2023
30 June 2023
- 11 -
The financial statements were approved and signed by the director and authorised for issue on 17 January 2024
17 January 2024
Mr K D Haynes
Director
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
15
500,420
420
Current assets
Debtors
18
3,139,500
3,875,242
Cash at bank and in hand
1,224,065
158,611
4,363,565
4,033,853
Creditors: amounts falling due within one year
19
(7,316)
(352)
Net current assets
4,356,249
4,033,501
Net assets
4,856,669
4,033,921
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
25
4,856,569
4,033,821
Total equity
4,856,669
4,033,921

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,100,248 (2022 - £67,686 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and signed by the director and authorised for issue on 17 January 2024
17 January 2024
Mr K D Haynes
Director
Company Registration No. 11120476
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 13 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 July 2021
100
5,396,522
5,396,622
27,961
5,424,583
Year ended 30 June 2022:
Profit and total comprehensive income for the year
-
247,951
247,951
43,226
291,177
Dividends
11
-
(66,000)
(66,000)
(57,500)
(123,500)
Balance at 30 June 2022
100
5,578,473
5,578,573
13,687
5,592,260
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
1,255,753
1,255,753
90,339
1,346,092
Dividends
11
-
(277,500)
(277,500)
(85,800)
(363,300)
Balance at 30 June 2023
100
6,556,726
6,556,826
18,226
6,575,052
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2021
100
4,032,135
4,032,235
Year ended 30 June 2022:
Profit and total comprehensive income for the year
-
67,686
67,686
Dividends
11
-
(66,000)
(66,000)
Balance at 30 June 2022
100
4,033,821
4,033,921
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
1,100,248
1,100,248
Dividends
11
-
(277,500)
(277,500)
Balance at 30 June 2023
100
4,856,569
4,856,669
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
28
3,196,894
(452,870)
Interest paid
(123,778)
(65,505)
Income taxes paid
(4,438)
(208,516)
Net cash inflow/(outflow) from operating activities
3,068,678
(726,891)
Investing activities
Purchase of tangible fixed assets
(419,050)
(172,787)
Proceeds on disposal of tangible fixed assets
41,456
73,242
Purchase of investment property
(705,098)
(1,104,094)
Purchase of subsidiaries
(500,000)
-
Interest received
24,525
409
Net cash used in investing activities
(1,558,167)
(1,203,230)
Financing activities
Proceeds of new bank loans
-
711,250
Repayment of bank loans
140,224
(311,419)
Payment of finance leases obligations
(22,777)
(75,824)
Dividends paid to equity shareholders
(277,500)
(66,000)
Dividends paid to non-controlling interests
(85,800)
(57,500)
Net cash (used in)/generated from financing activities
(245,853)
200,507
Net increase/(decrease) in cash and cash equivalents
1,264,658
(1,729,614)
Cash and cash equivalents at beginning of year
4,656,920
6,386,534
Cash and cash equivalents at end of year
5,921,578
4,656,920
Relating to:
Cash at bank and in hand
5,921,578
4,658,560
Bank overdrafts included in creditors payable within one year
-
(1,640)
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 16 -
1
Accounting policies
Company information

Moth Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is KDH House, Millfield Road, Donington, Spalding, Lincs, PE11 4UR.

 

The group consists of Moth Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

 

In these financial statements, the company is considered to be a qualifying entity (for the purposes of this FRS) and has applied the exemptions available under FRS 102 in respect of the following disclosures:

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Moth Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 June 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

Inflationary measures on materials and labour continue to have an impact on the industry, however the company continued to trade profitably. These pressures are expected to ease in 2024 and the directors have a reasonable expectation that the company have adequate facilities to continue for a period of at least 12 months following the dates of the finical statements. Given that, the financial statements have been prepared on a going concern basis.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 18 -

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 3 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
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:

Freehold land and buildings
2% straight line and 40% reducing balance
Plant and equipment
40% reducing balance
Fixtures and fittings
3 years straight line
Computers
33.33% reducing balance
Motor vehicles
40% and 15% reducing balance
Garage equipment
25% reducing balance

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 recognised in the profit and loss account.

1.8
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 19 -
1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 20 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
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.

1.13
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 21 -
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 unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. 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.

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 group 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 group after deducting all of its liabilities.

CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 22 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.15
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 profit and loss account 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 23 -
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 profit and loss account, 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 if, and only if, there is 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.

1.16
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.

1.17
Retirement benefits

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

1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 24 -
1.19
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.20
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.

2
Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual

results. These include an estimate over the work in progress and amounts due under construction contracts. It has been deemed that no other judgements have a significant effect on the financial statements other than those discussed.

 

Income and expenditure on construction contracts are recognised based on the project managers assessment of the stage of completion. Project managers are deemed to have the required knowledge and expertise to measure this reliably.

 

The fair value of investment property is assessed by the directors based on market conditions each year and is periodically assessed by third party valuers with appropriate skills and expertise to carry out such review.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Construction contracts
18,264,438
15,514,984
Rendering of services
804,499
899,581
19,068,937
16,414,565
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
3
Turnover and other revenue
(Continued)
- 25 -
2023
2022
£
£
Other significant revenue
Interest income
24,525
409
Grants received
-
7,333
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
68
(1,291)
Government grants
-
(7,333)
Depreciation of owned tangible fixed assets
209,637
191,680
Profit on disposal of tangible fixed assets
(18,425)
(45,970)
Operating lease charges
303,683
257,698
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
1,000
1,000
Audit of the financial statements of the company's subsidiaries
16,600
12,645
17,600
13,645
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 26 -
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Production
84
84
-
-
Administration and support
23
22
-
-
Total
107
106
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,545,904
2,421,427
-
0
-
0
Social security costs
283,960
278,925
-
-
Pension costs
297,311
85,342
-
0
-
0
3,127,175
2,785,694
-
0
-
0
7
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
7,464
7,464
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
12,061
143
Other interest income
12,464
266
Total income
24,525
409
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
8
Interest receivable and similar income
(Continued)
- 27 -

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
12,061
143
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
115,141
52,029
Other interest on financial liabilities
943
921
116,084
52,950
Other finance costs:
Interest on finance leases and hire purchase contracts
7,681
13,310
Other interest
13
(755)
Total finance costs
123,778
65,505
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
349,954
49,570
Deferred tax
Origination and reversal of timing differences
51
25,866
Total tax charge
350,005
75,436
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
10
Taxation
(Continued)
- 28 -

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
1,696,097
366,613
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
424,024
69,656
Tax effect of expenses that are not deductible in determining taxable profit
-
0
152
Effect of change in corporation tax rate
(78,290)
22,291
Depreciation on assets not qualifying for tax allowances
3,217
2,330
Deferred tax adjustments in respect of prior years
-
0
(6,787)
Tax relief on assets qualifying for 130% superdeduction
(5,250)
(12,206)
Effect of change in deferred tax rate
7,413
-
0
Marginal relief
(68)
-
0
Tax relief on losses carried back
(1,041)
-
0
Taxation charge
350,005
75,436
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
277,500
66,000
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 29 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 July 2022 and 30 June 2023
309,271
Amortisation and impairment
At 1 July 2022 and 30 June 2023
309,271
Carrying amount
At 30 June 2023
-
0
At 30 June 2022
-
0
The company had no intangible fixed assets at 30 June 2023 or 30 June 2022.
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 30 -
13
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Garage equipment
Total
£
£
£
£
£
£
£
Cost
At 1 July 2022
449,797
320,746
215,714
871
1,100,483
15,931
2,103,542
Additions
235,452
2,493
1,521
-
0
179,584
-
0
419,050
Disposals
(10,100)
-
0
-
0
-
0
(67,656)
-
0
(77,756)
Transfers
-
0
-
0
-
0
-
0
(20,490)
-
0
(20,490)
At 30 June 2023
675,149
323,239
217,235
871
1,191,921
15,931
2,424,346
Depreciation and impairment
At 1 July 2022
77,860
241,545
193,943
737
661,180
14,824
1,190,089
Depreciation charged in the year
10,687
31,296
10,488
44
156,844
278
209,637
Eliminated in respect of disposals
(7,918)
-
0
-
0
-
0
(59,425)
-
0
(67,343)
Transfers
-
0
-
0
-
0
-
0
(7,872)
-
0
(7,872)
At 30 June 2023
80,629
272,841
204,431
781
750,727
15,102
1,324,511
Carrying amount
At 30 June 2023
594,520
50,398
12,804
90
441,194
829
1,099,835
At 30 June 2022
371,937
79,201
21,771
134
439,303
1,107
913,453
The company had no tangible fixed assets at 30 June 2023 or 30 June 2022.
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 31 -
14
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 July 2022 and 30 June 2023
1,104,094
-
Additions through external acquisition
705,098
-
At 30 June 2023
1,809,192
-

Investment property comprises of rental properties totalling £1,104,094. The properties were purchased during the year and as market rents are being received, it was concluded by the directors that the fair value at the period end was equivalent to the purchase price.

15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
500,000
-
0
500,420
420
Movements in fixed asset investments
Group
Shares in subsidiaries
£
Cost or valuation
At 1 July 2022
-
Additions
500,000
At 30 June 2023
500,000
Carrying amount
At 30 June 2023
500,000
At 30 June 2022
-
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 33 -
18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,390,331
4,388,962
-
0
-
0
Gross amounts owed by contract customers
857,767
667,772
-
0
-
0
Corporation tax recoverable
-
0
133,559
-
0
-
0
Amounts owed by group undertakings
-
-
3,139,500
3,875,242
Other debtors
12,154
23,730
-
0
-
0
Prepayments and accrued income
72,912
25,288
-
0
-
0
3,333,164
5,239,311
3,139,500
3,875,242
Amounts falling due after more than one year:
Other debtors
-
0
103,376
-
0
-
0
Total debtors
3,333,164
5,342,687
3,139,500
3,875,242
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
339,527
338,143
-
0
-
0
Obligations under finance leases
22
72,785
66,315
-
0
-
0
Trade creditors
1,178,208
1,974,284
-
0
-
0
Corporation tax payable
229,741
17,784
978
51
Other taxation and social security
468,674
933,849
-
-
Other creditors
115,392
54,167
6,338
301
Accruals and deferred income
1,696,478
1,211,225
-
0
-
0
4,100,805
4,595,767
7,316
352
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 34 -
20
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
2,046,731
1,909,531
-
0
-
0
Obligations under finance leases
22
130,634
159,881
-
0
-
0
2,177,365
2,069,412
-
-
21
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
2,386,258
2,246,034
-
0
-
0
Bank overdrafts
-
0
1,640
-
0
-
0
2,386,258
2,247,674
-
-
Payable within one year
339,527
338,143
-
0
-
0
Payable after one year
2,046,731
1,909,531
-
0
-
0
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
21
Loans and overdrafts
(Continued)
- 35 -

Lloyds Fixed Rate Loan is denominated in £ with a nominal interest rate of 4.75%, and the final instalment is due on 1 December 2031. The carrying amount at year end is £105,449 (2022 - £115,337).

A 1st legal charge over commercial freehold held by KDH Projects Limited.

Lloyds Variable Rate Loan is denominated in £ with a nominal interest rate of LIBOR + 3%, and the final instalment is due on 1 December 2031. The carrying amount at year end is £102,767 (2022 - £111,947).

A 1st legal charge over commercial freehold held by KDH Projects Limited.

CBILS Loan is denominated in £ with a nominal interest rate of 1.8%, and the final instalment is due on . The carrying amount at year end is £925,000 (2022 - £1,225,000).

A debenture is held over KDH relating to this loan.

Finance leases are secured against the assets to which they relate.

 

There are also three mortgages with Paragon in relation properties held within Blue Morpho Limited as outlined below.

Paragon mortgage denominated in £ with a nominal interest rate of 2.75%, with the final instalment due in 2046. The carrying amount at the year end is £291,687. A legal charge is held over Apartment 60, The Waterside Apartments.

 

Paragon mortgage denominated in £ with a nominal interest rate of 2.99%, with the final instalment due in 2046. The carrying amount at the year end is £431,000. A legal charge is held over 14 Flotilla House, 12 Cable Street.

 

Paragon mortgage denominated in £ with a nominal interest rate of 4.18%, with the final instalment due in 2046. The carrying amount at the year end is £471,290. A legal charge is held over 122 Fairwater House, 3 Bonnet Street

 

 

22
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
186,758
66,315
-
0
-
0
In two to five years
16,661
159,881
-
0
-
0
203,419
226,196
-
-
CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
22
Finance lease obligations
(Continued)
- 36 -

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

23
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
119,067
119,016
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 July 2022
119,016
-
Charge to profit or loss
51
-
Liability at 30 June 2023
119,067
-
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
297,311
85,342

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 37 -
25
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
5,578,473
5,396,522
4,033,821
4,032,135
Profit for the year
1,255,753
247,951
1,100,248
67,686
Dividends
(277,500)
(66,000)
(277,500)
(66,000)
At the end of the year
6,556,726
5,578,473
4,856,569
4,033,821

Share capital

The issue of share capital at par

Profit or loss reserve

Includes all current and prior period retained profits and losses inclusive of cumulative unrealised gains and losses for assets at fair value at the balance sheet date.

26
Related party transactions
Remuneration of key management personnel

There are not deemed to be any other key management personnel other than the directors.

Other information

Summary of transactions with parent

Parent company and subsidiaries

At the balance sheet date the amount owed to Moth Holdings Limited by UK Kold Limited was £8,563 (2022 - £1,563).
At the balance sheet date the amount owed to Moth Holdings Limited by Hireforce Rentals Limited was £102,882 (2022 - £102,882).
At the balance sheet date the amount owed to Moth Holdings Limited by KDH Projects Limited was £1,988,611 (2022 - £3,749,552).
At the balance sheet date the amount owed to Moth Holdings Limited by Blue Morpho Limited was £26,344 (2022 - £21,344).

During the year subsidiaries made sales and purchases totalling £563,209 these have been eliminated upon consolidation.
Rent of £18,500 (2022 - £18,500) was paid to the directors pension scheme.

27
Controlling party

The ultimate controlling party is Mr K D Haynes who is the managing director and sole shareholder.

The ultimate controlling party is Mr K D Haynes who is the managing director and sole shareholder.

CONSOLIDATED RECORD FOR MOTH HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 38 -
28
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Profit for the year after tax
1,346,092
291,177
Adjustments for:
Taxation charged
350,005
75,436
Finance costs
123,778
65,505
Investment income
(24,525)
(409)
Gain on disposal of tangible fixed assets
(18,425)
(45,970)
Depreciation and impairment of tangible fixed assets
209,637
191,680
Movements in working capital:
Decrease/(increase) in stocks
49,141
(158,222)
Decrease/(increase) in debtors
1,875,964
(1,443,431)
(Decrease)/increase in creditors
(714,773)
571,364
Cash generated from/(absorbed by) operations
3,196,894
(452,870)
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