Company registration number 02129321 (England and Wales)
MOUNT TRADING COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
MOUNT TRADING COMPANY LIMITED
COMPANY INFORMATION
Directors
Mr M T Cap
Mrs K M Cap
Mrs G L Bottomley
Mr J M Evans
Mr D W Roberts
Mr A D Griffiths
Mr P J Barkley
Secretary
Mrs K M Cap
Company number
02129321
Registered office
West Point, Second Floor
Mucklow Office Park
Mucklow Hill
Halesowen
West Midlands
England
B62 8DY
Auditor
Sumer Auditco Limited
The Beehive
Beehive Ring Road
London Gatwick Airport
Gatwick
United Kingdom
RH6 0PA
MOUNT TRADING COMPANY LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10 - 11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 32
MOUNT TRADING COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -

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

Review of the business

The directors consider the key performance indicator of the company to be turnover and and profit before tax. The directors report a decrease in turnover levels to £8,125,102 (2022 : £8,722,755) and net profit before tax of £127,536 (2022 : £319,720).

Principal risks and uncertainties

The group does not actively use financial instruments as part of its financial risk management and during the year the company has been exposed to risks of supplier price increases, credit risk, liquidity risk and cash flow risk. The directors do not consider any other risks attaching to the use of financial instruments to be material to an assessment of its financial position.

On behalf of the board

Mr M T Cap
Director
29 July 2024
MOUNT TRADING COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -

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

Principal activities

The principal activity of the company and group continued to be that of pressure treatment for timber fencing and retail of agricultural supplies.

Results and dividends

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

Ordinary dividends were paid amounting to £48,000. The directors do not recommend payment of a further dividend.

Directors

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

Mr M T Cap
Mrs K M Cap
Mrs G L Bottomley
Mr J M Evans
Mr D W Roberts
Mr A D Griffiths
Mr P J Barkley
Statement of directors' responsibilities

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 group and company, and of the profit or loss of the group 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 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. They are 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.

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.

MOUNT TRADING COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -
On behalf of the board
Mr M T Cap
Director
29 July 2024
MOUNT TRADING COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MOUNT TRADING COMPANY LIMITED
- 4 -
Opinion

We have audited the financial statements of Mount Trading Company Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2023 which comprise the group profit and loss account, 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 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 group and parent 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 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 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:

MOUNT TRADING COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MOUNT TRADING COMPANY LIMITED
- 5 -
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 their 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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.

Based on our understanding of the company and the industry in which it operates, we identified that principal risks of non-compliance with laws and regulations related to breaches of the Sale of Goods Act 1979 and we considered the extent to which non-compliance might have a material effect on the financial statements. Additionally, we considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks related to posting journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates and significant one-off or unusual transactions. Audit procedures performed by the engagement team included:

Whilst our audit did not identify any significant matters relating to the detection of irregularities including fraud, and despite the audit being planned and conducted in accordance with ISAs (UK), there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity would likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls.

MOUNT TRADING COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MOUNT TRADING COMPANY LIMITED
- 6 -

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.

Mr Alan Edward Jones FCCA (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited
29 July 2024
Chartered Accountants
Statutory Auditor
The Beehive
Beehive Ring Road
London Gatwick Airport
Gatwick
United Kingdom
RH6 0PA
MOUNT TRADING COMPANY LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
8,125,102
8,722,755
Cost of sales
(5,225,838)
(5,672,128)
Gross profit
2,899,264
3,050,627
Administrative expenses
(2,718,722)
(2,694,835)
Other operating income
7,899
-
Operating profit
4
188,441
355,792
Interest payable and similar expenses
8
(60,905)
(36,072)
Profit before taxation
127,536
319,720
Tax on profit
9
(59,471)
(76,894)
Profit for the financial year
68,065
242,826
Profit for the financial year is all attributable to the owners of the parent company.
MOUNT TRADING COMPANY LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
- 8 -
2023
2022
£
£
Profit for the year
68,065
242,826
Other comprehensive income
Revaluation of tangible fixed assets
482,315
140,000
Tax relating to other comprehensive income
(120,579)
(46,595)
Other comprehensive income for the year
361,736
93,405
Total comprehensive income for the year
429,801
336,231
Total comprehensive income for the year is all attributable to the owners of the parent company.
MOUNT TRADING COMPANY LIMITED
GROUP BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
1,420,262
1,575,592
Tangible assets
12
2,762,372
2,224,762
4,182,634
3,800,354
Current assets
Stocks
15
1,924,825
2,078,305
Debtors
16
1,711,517
1,706,631
Cash at bank and in hand
21,377
7,252
3,657,719
3,792,188
Creditors: amounts falling due within one year
17
(2,090,590)
(2,278,684)
Net current assets
1,567,129
1,513,504
Total assets less current liabilities
5,749,763
5,313,858
Creditors: amounts falling due after more than one year
18
(518,442)
(584,396)
Provisions for liabilities
Deferred tax liability
21
279,407
159,349
(279,407)
(159,349)
Net assets
4,951,914
4,570,113
Capital and reserves
Called up share capital
23
206
206
Share premium account
214,994
214,994
Revaluation reserve
611,676
249,940
Profit and loss reserves
4,125,038
4,104,973
Total equity
4,951,914
4,570,113

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 29 July 2024 and are signed on its behalf by:
29 July 2024
Mr M T Cap
Director
Company registration number 02129321 (England and Wales)
MOUNT TRADING COMPANY LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
1,195,362
1,338,425
Tangible assets
12
2,751,863
2,212,549
Investments
13
300,000
300,000
4,247,225
3,850,974
Current assets
Stocks
15
1,793,733
1,953,472
Debtors
16
1,690,973
1,693,294
Cash at bank and in hand
8,185
7,252
3,492,891
3,654,018
Creditors: amounts falling due within one year
17
(2,004,693)
(2,221,804)
Net current assets
1,488,198
1,432,214
Total assets less current liabilities
5,735,423
5,283,188
Creditors: amounts falling due after more than one year
18
(494,275)
(550,229)
Provisions for liabilities
Deferred tax liability
21
276,780
157,029
(276,780)
(157,029)
Net assets
4,964,368
4,575,930
Capital and reserves
Called up share capital
23
206
206
Share premium account
214,994
214,994
Revaluation reserve
611,676
249,940
Profit and loss reserves
4,137,492
4,110,790
Total equity
4,964,368
4,575,930

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 £74,702 (2022 - £248,644).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

MOUNT TRADING COMPANY LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 OCTOBER 2023
31 October 2023
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 29 July 2024 and are signed on its behalf by:
29 July 2024
Mr M T Cap
Director
Company registration number 02129321 (England and Wales)
MOUNT TRADING COMPANY LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 12 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 November 2021
206
214,994
156,535
3,917,647
4,289,382
Year ended 31 October 2022:
Profit for the year
-
-
-
242,826
242,826
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
140,000
-
140,000
Tax relating to other comprehensive income
-
-
(46,595)
-
0
(46,595)
Total comprehensive income
-
-
93,405
242,826
336,231
Dividends
10
-
-
-
(55,500)
(55,500)
Balance at 31 October 2022
206
214,994
249,940
4,104,973
4,570,113
Year ended 31 October 2023:
Profit for the year
-
-
-
68,065
68,065
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
482,315
-
482,315
Tax relating to other comprehensive income
-
-
(120,579)
-
0
(120,579)
Total comprehensive income
-
-
361,736
68,065
429,801
Dividends
10
-
-
-
(48,000)
(48,000)
Balance at 31 October 2023
206
214,994
611,676
4,125,038
4,951,914
MOUNT TRADING COMPANY LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 13 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 November 2021
206
214,994
156,535
3,917,646
4,289,381
Year ended 31 October 2022:
Profit for the year
-
-
-
248,644
248,644
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
140,000
-
140,000
Tax relating to other comprehensive income
-
-
(46,595)
-
0
(46,595)
Total comprehensive income
-
-
93,405
248,644
342,049
Dividends
10
-
-
-
(55,500)
(55,500)
Balance at 31 October 2022
206
214,994
249,940
4,110,790
4,575,930
Year ended 31 October 2023:
Profit for the year
-
-
-
74,702
74,702
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
482,315
-
482,315
Tax relating to other comprehensive income
-
-
(120,579)
-
0
(120,579)
Total comprehensive income
-
-
361,736
74,702
436,438
Dividends
10
-
-
-
(48,000)
(48,000)
Balance at 31 October 2023
206
214,994
611,676
4,137,492
4,964,368
MOUNT TRADING COMPANY LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
234,210
517,897
Interest paid
(60,905)
(36,072)
Income taxes paid
(107,959)
(87,308)
Net cash inflow from operating activities
65,346
394,517
Investing activities
Purchase of intangible assets
-
25,257
Purchase of tangible fixed assets
(30,170)
(41,100)
Proceeds from disposal of tangible fixed assets
18,301
29,741
Purchase of subsidiaries, net of cash acquired
-
(209,717)
Net cash used in investing activities
(11,869)
(195,819)
Financing activities
Cash introduced/(withdrawn) by directors
(146,793)
154,979
Repayment of bank loans
(99,785)
(99,264)
Payment of finance leases obligations
(44,702)
(48,171)
Dividends paid to equity shareholders
(48,000)
(55,500)
Net cash used in financing activities
(339,280)
(47,956)
Net (decrease)/increase in cash and cash equivalents
(285,803)
150,742
Cash and cash equivalents at beginning of year
(782,201)
(932,943)
Cash and cash equivalents at end of year
(1,068,004)
(782,201)
Relating to:
Cash at bank and in hand
21,377
7,252
Bank overdrafts included in creditors payable within one year
(1,089,381)
(789,453)
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 15 -
1
Accounting policies
Company information

Mount Trading Company Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is West Point, Second Floor, Mucklow Office Park, Mucklow Hill, Halesowen, West Midlands, England, B62 8DY.

 

The group consists of Mount Trading Company 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.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

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.

MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Mount Trading Company 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 31 October 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

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
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.

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.

MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 17 -
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 20 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
0%
Plant and equipment
15% reducing balance
Fixtures and fittings
10% reducing balance
Computers
10% reducing balance
Motor vehicles
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
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.

MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 18 -

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.

1.9
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.

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.

MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 19 -
1.10
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.

1.11
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.

1.12
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.

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.

MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 20 -
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.

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.

MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
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.

1.14
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.

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.

1.15
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.

1.16
Retirement benefits

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

MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 22 -
1.17
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.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

3
Turnover

Turnover is wholly derived from the company's principal activity based in the United Kingdom.

4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
56,812
61,188
Profit on disposal of tangible fixed assets
(9,019)
(459)
Amortisation of intangible assets
155,330
151,241
Operating lease charges
(141,234)
(133,000)
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
3,150
3,000
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 23 -
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
Sales and Distribution
46
50
41
45
Administration
6
6
6
6
Management
9
10
9
10
Total
61
66
56
61

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,451,649
1,426,212
1,354,612
1,361,687
Social security costs
127,295
130,710
123,424
128,877
Pension costs
33,163
31,266
30,334
29,502
1,612,107
1,588,188
1,508,370
1,520,066
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
148,777
158,754
Company pension contributions to defined contribution schemes
3,675
4,956
152,452
163,710
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
28,651
22,514
Interest on finance leases and hire purchase contracts
5,698
4,157
Other interest
26,556
9,401
Total finance costs
60,905
36,072
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 24 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
59,693
83,612
Adjustments in respect of prior periods
299
(1,402)
Total current tax
59,992
82,210
Deferred tax
Origination and reversal of timing differences
(521)
(5,316)
Total tax charge
59,471
76,894

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
127,536
319,720
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
31,884
60,747
Tax effect of expenses that are not deductible in determining taxable profit
-
0
388
Effect of change in corporation tax rate
(3,779)
-
Permanent capital allowances in excess of depreciation
31,265
33,902
Depreciation on assets not qualifying for tax allowances
323
-
Research and development tax credit
-
0
(11,425)
Under/(over) provided in prior years
299
(1,402)
Deferred tax movement
(521)
(5,316)
Taxation charge
59,471
76,894

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2023
2022
£
£
Deferred tax arising on:
Revaluation of property
120,579
46,595

The main rate of Corporation Tax in force at the Statement of Financial Position date was 25%, having been enacted from 1 April 2023. Prior to this date, the main rate of Corporation Tax was 19%. This means the effective rate of Corporation Tax for the year was 22.50%

MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 25 -
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
48,000
55,500
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 November 2022 and 31 October 2023
3,121,607
Amortisation and impairment
At 1 November 2022
1,546,015
Amortisation charged for the year
155,330
At 31 October 2023
1,701,345
Carrying amount
At 31 October 2023
1,420,262
At 31 October 2022
1,575,592
Company
Goodwill
£
Cost
At 1 November 2022 and 31 October 2023
2,876,262
Amortisation and impairment
At 1 November 2022
1,537,837
Amortisation charged for the year
143,063
At 31 October 2023
1,680,900
Carrying amount
At 31 October 2023
1,195,362
At 31 October 2022
1,338,425
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 26 -
12
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 November 2022
1,917,685
464,251
143,869
56,193
298,564
2,880,562
Additions
-
0
26,480
-
0
-
0
94,909
121,389
Disposals
-
0
(3,197)
-
0
-
0
(33,976)
(37,173)
Revaluation
482,315
-
0
-
0
-
0
-
0
482,315
At 31 October 2023
2,400,000
487,534
143,869
56,193
359,497
3,447,093
Depreciation and impairment
At 1 November 2022
-
0
358,350
69,674
31,218
196,558
655,800
Depreciation charged in the year
-
0
18,250
7,419
2,498
28,645
56,812
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(27,891)
(27,891)
At 31 October 2023
-
0
376,600
77,093
33,716
197,312
684,721
Carrying amount
At 31 October 2023
2,400,000
110,934
66,776
22,477
162,185
2,762,372
At 31 October 2022
1,917,685
105,901
74,195
24,975
102,006
2,224,762
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
12
Tangible fixed assets
(Continued)
- 27 -
Company
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 November 2022
1,917,685
439,360
120,254
56,193
270,984
2,804,476
Additions
-
0
26,480
-
0
-
0
94,909
121,389
Disposals
-
0
(3,197)
-
0
-
0
(33,976)
(37,173)
Revaluation
482,315
-
0
-
0
-
0
-
0
482,315
At 31 October 2023
2,400,000
462,643
120,254
56,193
331,917
3,371,007
Depreciation and impairment
At 1 November 2022
-
0
338,357
50,153
31,218
172,199
591,927
Depreciation charged in the year
-
0
17,760
7,010
2,498
27,840
55,108
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(27,891)
(27,891)
At 31 October 2023
-
0
356,117
57,163
33,716
172,148
619,144
Carrying amount
At 31 October 2023
2,400,000
106,526
63,091
22,477
159,769
2,751,863
At 31 October 2022
1,917,685
101,003
70,101
24,975
98,785
2,212,549

The carrying value of land and buildings comprises:

Group
Company
2023
2022
2023
2022
£
£
£
£
Freehold
2,400,000
1,917,685
2,400,000
1,917,685

Land and Buildings with a carrying value of £2,400,000 were revalued on 31 October 2023 by the director.

This figure was derived with consultation to the report undertaken by Mason Owen in April 2021 which valued the properties at £1,740,000 taking into account the additional site works undertaken at the Newtown site and the growth of the trading estate in Aberystwyth, together with the increase in current market values for similar trading sites which are for sale.

 

 

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
12
Tangible fixed assets
(Continued)
- 28 -
Freehold Property
2023
2022
£
£
Group
Cost
1,584,432
1,584,432
Company
Cost
1,584,432
1,584,432
Carrying value
1,584,432
1,584,432
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
300,000
300,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 November 2022 and 31 October 2023
300,000
Carrying amount
At 31 October 2023
300,000
At 31 October 2022
300,000
14
Subsidiaries

Details of the company's subsidiaries at 31 October 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Morgans Machinery Limited
West Point, Mucklow Hill, Halesowen, United Kingdom, B62 8DY
Ordinary
100.00

Mount Trading Company Limited has agreed to guarantee the liabilities of its subsidiary, Morgans Machinery Limited (Company number: 02629112), thereby allowing them to take exemption from audit under Section 479A of the Companies Act 2006.

MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 29 -
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
1,924,825
2,078,305
1,793,733
1,953,472
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
585,875
699,173
569,081
678,743
Amounts owed by undertakings in which the company has a participating interest
992,888
976,440
990,631
984,777
Other debtors
99,028
500
99,028
500
Prepayments and accrued income
33,726
30,518
32,233
29,274
1,711,517
1,706,631
1,690,973
1,693,294
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
1,199,245
899,316
1,189,245
881,576
Obligations under finance leases
20
37,899
25,214
37,899
25,214
Trade creditors
501,435
911,324
435,708
880,551
Amounts owed to group undertakings
-
0
-
0
12,877
-
0
Amounts owed to undertakings in which the group has a participating interest
70,825
45,057
70,825
45,057
Corporation tax payable
59,693
107,660
57,901
105,866
Other taxation and social security
152,470
178,439
149,924
175,845
Other creditors
21,818
54,803
6,359
54,124
Accruals and deferred income
47,205
56,871
43,955
53,571
2,090,590
2,278,684
2,004,693
2,221,804
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
469,509
569,295
445,342
535,128
Obligations under finance leases
20
48,933
15,101
48,933
15,101
518,442
584,396
494,275
550,229
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 30 -
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
579,373
679,158
545,206
634,992
Bank overdrafts
1,089,381
789,453
1,089,381
781,712
1,668,754
1,468,611
1,634,587
1,416,704
Payable within one year
1,199,245
899,316
1,189,245
881,576
Payable after one year
469,509
569,295
445,342
535,128

The overdraft facility and bank loans are secured by a first legal charge over the properties known as Glanyrafon Industrial Estate, Aberystwyth and Land at Mochdre Industrial Estate, Newtown, Powys, an unlimited debenture dated 26 May 2004, and by way of a fixed and floating charge over all assets of the company, dated 1 November 2004.

20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
37,899
25,214
37,899
25,214
In two to five years
48,933
15,101
48,933
15,101
86,832
40,315
86,832
40,315

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. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
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
75,515
76,036
Revaluations
203,892
83,313
279,407
159,349
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
21
Deferred taxation
(Continued)
- 31 -
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
72,888
73,716
Revaluations
203,892
83,313
276,780
157,029
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 November 2022
159,349
157,029
Credit to profit or loss
(521)
(828)
Charge to other comprehensive income
120,579
120,579
Liability at 31 October 2023
279,407
276,780
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
33,163
31,266

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.

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
106
106
106
106
Ordinary A shares of £1 each
100
100
100
100
206
206
206
206
24
Controlling party

There is no ultimate controlling party.

MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 32 -
25
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
68,065
242,826
Adjustments for:
Taxation charged
59,471
76,894
Finance costs
60,905
36,072
Gain on disposal of tangible fixed assets
(9,019)
(459)
Amortisation and impairment of intangible assets
155,330
151,241
Depreciation and impairment of tangible fixed assets
56,812
60,068
Movements in working capital:
Decrease/(increase) in stocks
153,480
(107,776)
Decrease/(increase) in debtors
94,144
(87,864)
(Decrease)/increase in creditors
(404,978)
146,895
Cash generated from operations
234,210
517,897
26
Analysis of changes in net debt - group
1 November 2022
Cash flows
New finance leases
31 October 2023
£
£
£
£
Cash at bank and in hand
7,252
14,125
-
21,377
Bank overdrafts
(789,453)
(299,928)
-
(1,089,381)
(782,201)
(285,803)
-
(1,068,004)
Borrowings excluding overdrafts
(679,158)
99,785
-
(579,373)
Obligations under finance leases
(40,315)
44,702
(91,219)
(86,832)
(1,501,674)
(141,316)
(91,219)
(1,734,209)
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