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M and R Morton Limited

Annual Report and Unaudited Financial Statements
Year Ended 30 September 2023

Registration number: 03533003

 

M and R Morton Limited

Contents

Balance Sheet

1 to 2

Notes to the Unaudited Financial Statements

3 to 11

 

M and R Morton Limited

Balance Sheet

30 September 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

5

60,236

8,037

Tangible assets

6

2,064,250

1,471,201

Other financial assets

7

15

15

 

2,124,501

1,479,253

Current assets

 

Stocks

8

554,423

546,274

Debtors

9

1,452,577

550,378

Cash at bank and in hand

 

444,050

524,502

 

2,451,050

1,621,154

Creditors: Amounts falling due within one year

10

(673,501)

(563,615)

Net current assets

 

1,777,549

1,057,539

Total assets less current liabilities

 

3,902,050

2,536,792

Creditors: Amounts falling due after more than one year

10

(1,460,443)

(396,011)

Provisions for liabilities

(217,538)

(137,760)

Net assets

 

2,224,069

2,003,021

Capital and reserves

 

Called up share capital

2

2

Profit and loss account

2,224,067

2,003,019

Shareholders' funds

 

2,224,069

2,003,021

 

M and R Morton Limited

Balance Sheet

30 September 2023

For the financial year ending 30 September 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 4 March 2024 and signed on its behalf by:
 

.........................................
M G E Morton
Director

Company Registration Number: 03533003

 

M and R Morton Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Sheep Dip
Joan's Acre Lane
Hinton Ampner
Alresford
Hampshire
SO24 0LF

These financial statements were authorised for issue by the Board on 4 March 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' including Section 1A, and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Group accounts not prepared

The company has taken advantage of the small companies regime and has not prepared group accounts.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

M and R Morton Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2023

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold Property

10% per annum reducing balance

Plant & Machinery

25% per annum reducing balance

Greenhouse

10% per annum reducing balance

Goodwill

Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Intangible assets

Separately acquired trademarks and licences are shown at historical cost.

Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.

Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Website

33% per annum reducing balance

Leases

33% per annum straight line

 

M and R Morton Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2023

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Stocks

Livestock and crops in store are valued at 75% of market value. Flower stocks are valued at cost less provision for diminution in value. All other stocks are valued at net realisable value.

Work in progress is valued on the basis of direct costs plus attributable overheads based on normal
level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

Leases

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

M and R Morton Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2023

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.


 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 26 (2022 - 30).

4

Taxation

Tax charged/(credited) in the profit and loss account

2023
 £

2022
 £

Current taxation

UK corporation tax

44,896

88,003

Deferred taxation

Arising from origination and reversal of timing differences

79,778

(9,131)

Tax expense in the income statement

124,674

78,872

 

M and R Morton Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2023

5

Intangible assets

Goodwill
 £

Website
 £

Lease
£

Total
£

Cost or valuation

At 1 October 2022

98,065

27,120

-

125,185

Additions acquired separately

-

17,318

65,000

82,318

At 30 September 2023

98,065

44,438

65,000

207,503

Amortisation

At 1 October 2022

98,064

19,084

-

117,148

Amortisation charge

-

8,452

21,667

30,119

At 30 September 2023

98,064

27,536

21,667

147,267

Carrying amount

At 30 September 2023

1

16,902

43,333

60,236

At 30 September 2022

1

8,036

-

8,037

 

M and R Morton Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2023

6

Tangible assets

Land and buildings
£

Plant and machinery
£

Total
£

Cost or valuation

At 1 October 2022

1,288,588

1,966,537

3,255,125

Additions

386,929

480,318

867,247

Disposals

-

(125,190)

(125,190)

At 30 September 2023

1,675,517

2,321,665

3,997,182

Depreciation

At 1 October 2022

314,166

1,469,757

1,783,923

Charge for the year

55,449

186,315

241,764

Eliminated on disposal

-

(92,755)

(92,755)

At 30 September 2023

369,615

1,563,317

1,932,932

Carrying amount

At 30 September 2023

1,305,902

758,348

2,064,250

At 30 September 2022

974,422

496,779

1,471,201

Included within the net book value of land and buildings above is £1,237,376 (2022 - £903,211) in respect of freehold land and buildings and £68,526 (2022 - £71,211) in respect of short leasehold land and buildings.
 

 

M and R Morton Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2023

7

Other financial assets (current and non-current)

Financial assets at cost less impairment
£

Total
£

Non-current financial assets

Cost or valuation

At 1 October 2022

15

15

At 30 September 2023

15

15

Impairment

Carrying amount

At 30 September 2023

15

15

8

Stocks

2023
£

2022
£

Crops

275,254

266,180

Livestock

111,364

117,911

Other stocks

167,805

162,183

554,423

546,274

9

Debtors

2023
£

2022
£

Trade debtors

533,175

195,456

Prepayments

870,947

256,514

Other debtors

48,455

98,408

1,452,577

550,378

 

M and R Morton Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2023

10

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

12

161,079

88,413

Trade creditors

 

288,771

226,827

Corporation tax

 

44,897

88,003

Taxation and social security

 

155,039

125,267

Other creditors

 

2,095

466

Accruals and deferred income

 

21,620

34,639

 

673,501

563,615

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

12

1,460,443

396,011

11

Related party transactions

Transactions with directors

2023

At 1 October 2022
£

Advances to director
£

Repayments by director
£

At 30 September 2023
£

M G E Morton

Interest free loan repayable on demand

46,570

136,636

(164,865)

18,341

         
       

Mrs R J Morton

Interest free loan repayable on demand

46,570

136,636

(164,865)

18,341

         
       

 

 

M and R Morton Limited

Notes to the Unaudited Financial Statements

Year Ended 30 September 2023

2022

At 1 October 2021
£

Advances to director
£

Repayments by director
£

At 30 September 2022
£

M G E Morton

Interest free loan repayable on demand

26,513

108,442

(88,385)

46,570

         
       

Mrs R J Morton

Interest free loan repayable on demand

26,513

108,442

(88,385)

46,570

         
       

 

Directors' remuneration

12

Loans and borrowings

2023
£

2022
£

Loans and borrowings due after one year

Bank borrowings

1,460,443

396,011

2023
£

2022
£

Current loans and borrowings

Bank borrowings

118,185

69,383

Bank overdrafts

20,394

-

Hire purchase contracts

22,500

19,030

161,079

88,413

Security has been given on the aggregate value of finance leases held by the company.