Company registration number 03233275 (England and Wales)
PHILIP J MILTON & COMPANY PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
PHILIP J MILTON & COMPANY PLC
COMPANY INFORMATION
Directors
Mr P J Milton
Mrs H L Milton
Mr S W J Pickard
Mrs S J Bright
Ms N Baker
Mr Felix Milton
(Appointed 1 March 2023)
Mr Adam Cooke
(Appointed 17 April 2023)
Mr Dominic Myers
(Appointed 21 August 2023)
Secretary
Mr P J Milton
Company number
03233275
Registered office
Choweree House
21 Boutport Street
Barnstaple
Devon
United Kingdom
EX31 1RP
Auditor
Azets Audit Services
Lime Court
Pathfields Business Park
South Molton
Devon
United Kingdom
EX36 3LH
PHILIP J MILTON & COMPANY PLC
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
PHILIP J MILTON & COMPANY PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 1 -

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

Review of the business

The company's performance is as detailed in the profit and loss account. The profit for the year before tax was reported as £741,546 (2022 - £689,292). Turnover increased by 12.5% on the previous year. Overall gross profit decreased from £2,529,544 to £2,389,684.

 

The directors are satisfied with the performance of the company during the year. The net assets of the company at 31 August 2023 show a net position of £5,014,827 compared to a net position of £4,530,642 as at 31 August 2022.

Principal risks and uncertainties

The principal external risk facing the business relates to the underlying performance of stock markets and the investments which it manages. This is impacted by the worldwide political situations and economic performances, changes in legislation and foreign exchange matters. Appropriate portfolio investment strategies are followed to minimise the impact of these factors as far as possible. In accordance with the Capital Requirements Directive, the Company has in place an ICAAP in which all risks posed to the Company are identified and appropriate financial provisions are in place as a consequence.

 

The continued global economic crises experienced since the accounts year ending 31 August 2008 has tested the above policy and it was found to be robust. Although the economy is now showing recovery, expansion requirements of the business have been halted temporarily and natural opportunities to reduce overheads have been taken, without the need to implement a specific rationalisation plan.

 

The directors consider that further analysis using key performance indicators is not necessary to gain an understanding of the development, performance or position of the company.

 

The company assess its opportunities and risk in the market place including areas such as competition, market trends and health and safety policies in order to maintain and extend its business activities.

On behalf of the board

Mrs S J Bright
Director
20 December 2023
PHILIP J MILTON & COMPANY PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 2 -

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

Principal activities

The principal activity of the company is the transaction and management of ISAs, managed portfolios, pension funds and related financial services. Smaller revenue streams are also generated from taxation and accountancy services, will writing and executorship services.

Directors

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

Mr P J Milton
Mrs H L Milton
Mr S W J Pickard
Mrs S J Bright
Ms N Baker
Mr Felix Milton
(Appointed 1 March 2023)
Mr Adam Cooke
(Appointed 17 April 2023)
Mr Dominic Myers
(Appointed 21 August 2023)
Mr Peter Elston
(Appointed 27 March 2023 and resigned 27 July 2023)
Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Charitable donations

During the year the company made donations to The Philip J Milton and Company PLC Charitable Foundation totalling £50,000. In addition, the company provided bookkeeping services to the Foundation without charge.

Auditor
Azets Audit Services are deemed to be reappointed as auditor to the company 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 company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mrs S J Bright
Director
20 December 2023
PHILIP J MILTON & COMPANY PLC
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2023
- 3 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

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

PHILIP J MILTON & COMPANY PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PHILIP J MILTON & COMPANY PLC
- 4 -
Opinion

We have audited the financial statements of Philip J Milton & Company PLC (the 'company') for the year ended 31 August 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are 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:

PHILIP J MILTON & COMPANY PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PHILIP J MILTON & COMPANY PLC
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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.

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.

PHILIP J MILTON & COMPANY PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PHILIP J MILTON & COMPANY PLC
- 6 -

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Robin Haslam (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
20 December 2023
Chartered Accountants
Statutory Auditor
Lime Court
Pathfields Business Park
South Molton
Devon
United Kingdom
EX36 3LH
PHILIP J MILTON & COMPANY PLC
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
4,308,689
4,610,098
Cost of sales
(1,919,005)
(2,080,554)
Gross profit
2,389,684
2,529,544
Administrative expenses
(1,666,647)
(1,352,141)
Operating profit
5
723,037
1,177,403
Interest receivable and similar income
6
224,701
129,519
Interest payable and similar expenses
8
(23,488)
(11,852)
Amounts written off investments
9
(182,704)
(605,778)
Profit before taxation
741,546
689,292
Tax on profit
10
(257,361)
(251,903)
Profit for the financial year
484,185
437,389

The profit and loss account has been prepared on the basis that all operations are continuing operations.

PHILIP J MILTON & COMPANY PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2023
- 8 -
2023
2022
£
£
Profit for the year
484,185
437,389
Other comprehensive income
-
-
Total comprehensive income for the year
484,185
437,389
PHILIP J MILTON & COMPANY PLC
BALANCE SHEET
AS AT
31 AUGUST 2023
31 August 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
590,334
599,618
Current assets
Work in progress
13
55,796
20,050
Debtors
14
574,039
417,311
Investments
15
4,096,057
3,513,525
Cash at bank and in hand
557,870
940,934
5,283,762
4,891,820
Creditors: amounts falling due within one year
16
(650,619)
(759,320)
Net current assets
4,633,143
4,132,500
Total assets less current liabilities
5,223,477
4,732,118
Creditors: amounts falling due after more than one year
17
(200,674)
(200,384)
Provisions for liabilities
Deferred tax liability
19
7,976
1,092
(7,976)
(1,092)
Net assets
5,014,827
4,530,642
Capital and reserves
Called up share capital
21
100,000
100,000
Profit and loss reserves
4,914,827
4,430,642
Total equity
5,014,827
4,530,642
The financial statements were approved by the board of directors and authorised for issue on 20 December 2023 and are signed on its behalf by:
Mrs S J Bright
Director
Company Registration No. 03233275
PHILIP J MILTON & COMPANY PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2023
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 September 2021
100,000
3,993,253
4,093,253
Year ended 31 August 2022:
Profit and total comprehensive income for the year
-
437,389
437,389
Balance at 31 August 2022
100,000
4,430,642
4,530,642
Year ended 31 August 2023:
Profit and total comprehensive income for the year
-
484,185
484,185
Balance at 31 August 2023
100,000
4,914,827
5,014,827
PHILIP J MILTON & COMPANY PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
497,475
88,948
Interest paid
(23,488)
(11,852)
Income taxes paid
(311,606)
(249,218)
Net cash inflow/(outflow) from operating activities
162,381
(172,122)
Investing activities
Proceeds from other investments and loans
(765,236)
(1,014,418)
Interest received
13,850
2,733
Dividends received
210,851
126,786
Net cash used in investing activities
(540,535)
(884,899)
Financing activities
Repayment of bank loans
(4,910)
(9,228)
Net cash used in financing activities
(4,910)
(9,228)
Net decrease in cash and cash equivalents
(383,064)
(1,066,249)
Cash and cash equivalents at beginning of year
940,934
2,007,183
Cash and cash equivalents at end of year
557,870
940,934
PHILIP J MILTON & COMPANY PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
- 12 -
1
Accounting policies
Company information

Philip J Milton & Company PLC is a private company limited by shares incorporated in England and Wales. The registered office is Choweree House, 21 Boutport Street, Barnstaple, Devon, United Kingdom, EX31 1RP.

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.

1.2
Going concern

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

1.3
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.

Revenue from contracts for the provision of professional services is recognised as the services are performed.

Interest income is recognised using the effective interest rate method. Dividend income is recognised when the right to receive payment is established.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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 was 20 years. All Goodwill is now fully amortised.

 

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.

1.5
Tangible fixed assets

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

PHILIP J MILTON & COMPANY PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 13 -

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Land and buildings Freehold
50 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company 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.

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.

1.7
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.

1.8
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.

PHILIP J MILTON & COMPANY PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 14 -
1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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 company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

PHILIP J MILTON & COMPANY PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 15 -
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 company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company 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 company.

1.11
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.12
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

PHILIP J MILTON & COMPANY PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 16 -
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 when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
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.

1.14
Retirement benefits

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

1.15
Leases

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 leases asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. The only material estimate applied by the directors is the Fair Value of Investments as at the balance sheet date. The basis for this estimate is the actual listed stock price as at the balance sheet date. There are no other material estimates or significant judgements applied.

PHILIP J MILTON & COMPANY PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 17 -
3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover
Services
4,308,688
4,610,098
2023
2022
£
£
Other significant revenue
Interest income
13,850
2,733
Dividends received
210,851
126,786
4
Employees

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

2023
2022
Number
Number
Directors
5
5
Administration and support
27
27
Total
32
32

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
907,557
841,821
Social security costs
87,941
79,394
Pension costs
195,879
103,836
1,191,377
1,025,051
5
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
19,000
12,000
Depreciation of owned tangible fixed assets
9,284
9,284
Operating lease charges
8,246
1,093
PHILIP J MILTON & COMPANY PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 18 -
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
13,850
2,733
Other income from investments
Dividends received
210,851
126,786
Total income
224,701
129,519
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
13,850
2,733
Dividends from financial assets measured at fair value through profit or loss
210,851
126,786
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
482,701
348,551
Company pension contributions to defined contribution schemes
131,535
54,373
614,236
402,924
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
23,488
11,852
9
Amounts written off investments
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Loss on financial assets held at fair value through profit or loss
(322,317)
(1,070,575)
Other gains/(losses)
Gain on disposal of financial assets held at fair value through profit or loss
139,613
464,797
(182,704)
(605,778)
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
250,477
311,606
PHILIP J MILTON & COMPANY PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
10
Taxation
(Continued)
- 19 -
Deferred tax
Origination and reversal of timing differences
6,884
(59,703)
Total tax charge
257,361
251,903

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
741,546
689,292
Expected tax charge based on the standard rate of corporation tax in the UK of 21.52% (2022: 19.00%)
159,581
130,965
Tax effect of expenses that are not deductible in determining taxable profit
78,581
144,584
Tax effect of income not taxable in determining taxable profit
(30,038)
(88,311)
Effect of change in corporation tax rate
923
-
0
Dividend income
(44,506)
(24,089)
Chargeable gains
92,820
88,754
Taxation charge for the year
257,361
251,903
11
Intangible fixed assets
Goodwill
£
Cost
At 1 September 2022 and 31 August 2023
300,384
Amortisation and impairment
At 1 September 2022 and 31 August 2023
300,384
Carrying amount
At 31 August 2023
-
0
At 31 August 2022
-
0
PHILIP J MILTON & COMPANY PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 20 -
12
Tangible fixed assets
Land and buildings Freehold
£
Cost
At 1 September 2022 and 31 August 2023
696,115
Depreciation and impairment
At 1 September 2022
96,497
Depreciation charged in the year
9,284
At 31 August 2023
105,781
Carrying amount
At 31 August 2023
590,334
At 31 August 2022
599,618
13
Stocks
2023
2022
£
£
Work in progress
55,796
20,050
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
271,880
254,034
Other debtors
24,695
54,160
Prepayments and accrued income
77,464
109,117
374,039
417,311
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
200,000
-
0
Total debtors
574,039
417,311
PHILIP J MILTON & COMPANY PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 21 -
15
Current asset investments
2023
2022
£
£
Listed investments
4,096,057
3,513,525
16
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
18
273,788
278,988
Trade creditors
82,654
141,430
Corporation tax
250,477
311,606
Other taxation and social security
422
422
Other creditors
-
0
12,474
Accruals and deferred income
43,278
14,400
650,619
759,320
17
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
18
200,674
200,384
18
Loans and overdrafts
2023
2022
£
£
Bank loans
474,462
479,372
Payable within one year
273,788
278,988
Payable after one year
200,674
200,384

The bank loans are secured by legal charges over the company's freehold property.

The RBS loan has an interest rate of 2.26% above base rate, and the Barclays loan has an interest rate of 1.5% above base rate.

PHILIP J MILTON & COMPANY PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 22 -
19
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
494
-
Revaluations
12,517
1,092
Other short term timing differences
(5,035)
-
7,976
1,092
2023
Movements in the year:
£
Liability at 1 September 2022
1,092
Charge to profit or loss
6,884
Liability at 31 August 2023
7,976
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
195,879
103,836

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100,000
100,000
100,000
100,000
PHILIP J MILTON & COMPANY PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 23 -
22
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Purchase of services
2023
2022
£
£
Entities with control, joint control or significant influence over the company
1,019,839
1,069,810

During the year the partnership paid for advertising, utilities, cleaning, stationery and postage on behalf of the company totaling £185,000 (2022: £164,070). These transactions have not been reflected in the financial statements as no recharge has been made by the partnership. During the year the company provided bookkeeping services to the partnership valued at £95,000 (2022: £85,000), no charge was made to the partnership in the year. If these transactions were fully reflected in the financial statements the company's profit before tax would be reduced by £90,000 (2022: £79,070).

 

During the year, a loan of £200,000 was provided to Philip J Milton Maintenance and Construction Services Ltd, a company under common control. The balance of £200,000 was still outstanding at the year end.

23
Ultimate controlling party

The company is under the control of P J and H L Milton.

PHILIP J MILTON & COMPANY PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 24 -
24
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
484,185
437,389
Adjustments for:
Taxation charged
257,361
251,903
Finance costs
23,488
11,852
Investment income
(224,701)
(129,519)
Depreciation and impairment of tangible fixed assets
9,284
9,284
Other gains and losses
182,704
605,778
Movements in working capital:
(Increase)/decrease in stocks
(35,746)
34,107
Increase in debtors
(156,728)
(264,620)
Decrease in creditors
(42,372)
(867,226)
Cash generated from operations
497,475
88,948
25
Analysis of changes in net funds
1 September 2022
Cash flows
31 August 2023
£
£
£
Cash at bank and in hand
940,934
(383,064)
557,870
Borrowings excluding overdrafts
(479,372)
4,910
(474,462)
461,562
(378,154)
83,408
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