Company registration number 02044079 (England and Wales)
BURTONS MEDICAL EQUIPMENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
BURTONS MEDICAL EQUIPMENT LIMITED
COMPANY INFORMATION
Directors
Mr D C Burton
Mr M T Burton
(Appointed 10 November 2022)
Mrs E E Burton-Jones
(Appointed 10 November 2022)
Company number
02044079
Registered office
Guardian Industrial Estate
Pattenden Lane
Marden
Kent
TN12 9QD
Auditor
Dendy Neville Limited
3-4 Bower Terrace
Tonbridge Road
Maidstone
Kent
ME16 8RY
Business address
Unit 1, Guardian Industrial Estate
Pattenden Lane
Marden
Kent
TN12 9QD
BURTONS MEDICAL EQUIPMENT LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Statement of income and retained earnings
8
Balance sheet
9
Notes to the financial statements
10 - 19
BURTONS MEDICAL EQUIPMENT 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
During the year the company has performed well. The directors anticipate that the company will continue to maintain profit in the current year.
Gross profit continues to be the key performance indicator for the company. The gross profit in the year shows a decrease in margin to 27.5% from 28.2% in the prior year. The directors believe that the turnover is sustainable.
The company has continued with its research and development projects into new equipment to be manufactured and management remain confident that current customer needs will continue to be met by the company and any future developments will be commercially and financially viable.
The principal risks potentially affecting the company include the continued availability of bank finance and associated interest rates, market conditions generally, potential issues with the supply chain, greater competition and the formation of large customer groups within the customer base putting pressure on margins. The directors and management monitor these areas, with the company taking action to mitigate these risks which, in the current year, has included reducing dependence upon external overseas suppliers. The company has to hold high levels of stock to meet customers’ needs and this puts additional pressure on cashflow. Whilst we are noticing pressures on our supply chain, we recognise the benefits of being a UK manufacturer and the further opportunities that this creates.
The directors maintain a watching brief on the suitability of the current premises in terms of security tenure and future expansion.
Mr D C Burton
Director
30 July 2024
BURTONS MEDICAL EQUIPMENT 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 continued to be that of the sale and service of veterinary and medical equipment.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £1,000,000. 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 D C Burton
Mr M T Burton
(Appointed 10 November 2022)
Mrs E E Burton-Jones
(Appointed 10 November 2022)
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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s 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.
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.
Information referred to in the Strategic Report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the director's report. It has done so in respect of principal risks and future developments.
BURTONS MEDICAL EQUIPMENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -
On behalf of the board
Mr D C Burton
Director
30 July 2024
BURTONS MEDICAL EQUIPMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BURTONS MEDICAL EQUIPMENT LIMITED
- 4 -
Opinion
We have audited the financial statements of Burtons Medical Equipment Limited (the 'company') for the year ended 31 October 2023 which comprise the statement of income and retained earnings, the balance sheet 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:
give a true and fair view of the state of the company's affairs as at 31 October 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
BURTONS MEDICAL EQUIPMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BURTONS MEDICAL EQUIPMENT LIMITED (CONTINUED)
- 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities including fraud
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
• the nature of the industry and sector, control environment and business performance including the design of the company’s remuneration policies, key drivers for employee remuneration and bonuses;
• results of our enquiries of management about their own identification and assessment of the risks of irregularities;
• any matters we identified having obtained and reviewed the company’s documentation of their policies and procedures relating to:
identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
• the matters discussed among the audit engagement team, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
BURTONS MEDICAL EQUIPMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BURTONS MEDICAL EQUIPMENT LIMITED (CONTINUED)
- 6 -
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, tax legislation and pension legislation.
Audit response to risks identified
As a result of performing the above, we identified management override of controls as a key consideration related to the potential risk of fraud.
Our procedures to respond to risks identified included the following:
• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
• enquiring of management regarding actual and potential litigation and claims;
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
• reading any minutes of meetings of those charged with governance, and asking management whether there had been any correspondence with HMRC; and
• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business reasons behind any significant transactions that are unusual or outside the normal course of the company’s business.
We also communicated potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulations, even though we have properly planned and performed our audit in accordance with auditing standards. This risk increases the more that compliance with laws 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. In addition, as with any audit, 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 controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
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.
BURTONS MEDICAL EQUIPMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BURTONS MEDICAL EQUIPMENT LIMITED (CONTINUED)
- 7 -
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
David Hill BA FCA
Senior Statutory Auditor
For and on behalf of Dendy Neville Limited
30 July 2024
Chartered Accountants
Statutory Auditor
3-4 Bower Terrace
Tonbridge Road
Maidstone
Kent
ME16 8RY
BURTONS MEDICAL EQUIPMENT LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
19,535,694
19,922,196
Cost of sales
(14,166,595)
(14,307,971)
Gross profit
5,369,099
5,614,225
Administrative expenses
(4,070,593)
(3,981,450)
Operating profit
4
1,298,506
1,632,775
Interest payable and similar expenses
6
(32,869)
(20,405)
Profit before taxation
1,265,637
1,612,370
Tax on profit
7
(286,535)
(298,095)
Profit for the financial year
979,102
1,314,275
Retained earnings brought forward
3,595,820
3,281,545
Dividends
8
(1,000,000)
(1,000,000)
Retained earnings carried forward
3,574,922
3,595,820
The Statement of Income and Retained Earnings has been prepared on the basis that all operations are continuing operations.
BURTONS MEDICAL EQUIPMENT LIMITED
BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
9
40,000
60,000
Tangible assets
10
1,027,153
1,023,125
1,067,153
1,083,125
Current assets
Stocks
11
2,898,034
3,014,779
Debtors
12
2,264,352
2,616,375
Cash at bank and in hand
36,792
349,585
5,199,178
5,980,739
Creditors: amounts falling due within one year
13
(2,585,498)
(3,334,369)
Net current assets
2,613,680
2,646,370
Total assets less current liabilities
3,680,833
3,729,495
Creditors: amounts falling due after more than one year
14
(35,811)
(78,575)
Provisions for liabilities
Deferred tax liability
17
70,000
55,000
(70,000)
(55,000)
Net assets
3,575,022
3,595,920
Capital and reserves
Called up share capital
19
100
100
Profit and loss reserves
3,574,922
3,595,820
Total equity
3,575,022
3,595,920
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 30 July 2024 and are signed on its behalf by:
Mr D C Burton
Director
Company registration number 02044079 (England and Wales)
BURTONS MEDICAL EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 10 -
1
Accounting policies
Company information
Burtons Medical Equipment Limited is a private company limited by shares incorporated in England and Wales. The registered office and principal place of business is Guardian Industrial Estate, Pattenden Lane, Marden, Kent, TN12 9QD.
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.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This 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:
The financial statements of the company are consolidated in the financial statements of Burtons of Maidstone Limited. These consolidated financial statements are available from its registered office, Guardian Industrial Estate, Pattenden Lane, Marden, Kent, TN12 9QD.
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. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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 delivery of the goods). Revenue from the supply of services is generally recognised at the point of carrying out the service.
1.4
Intangible fixed assets - goodwill
Purchased goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Purchased goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 4.5 years.
BURTONS MEDICAL EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 11 -
1.5
Tangible fixed assets
Tangible fixed assets are measured at cost, net of depreciation.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Plant and machinery
15-33% reducing balance and 10-33% straight line
Equipment
25-33% straight line
Motor vehicles
25% straight line
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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).
1.7
Stocks
Stocks are stated at the lower of cost and net realisable value.
In circumstances where the company orders stock and the obligation to pay does not crystallise until the stock has been delivered, the liability and stock are only recognised at the point of delivery.
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
Financial instruments
The company has elected to apply the recognition and measurement 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.
Basic financial assets
Basic financial assets, which include debtors and amounts due from fellow group companies are measured at transaction price.
Basic financial liabilities
Basic financial liabilities, including creditors, are recognised at transaction price.
1.9
Taxation
The tax expense represents the sum of the tax currently payable or receivable and deferred tax.
Current tax
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
BURTONS MEDICAL EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 12 -
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. Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the balance sheet date.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leasing and hire purchase commitments
Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, and hire purchase contracts are capitalised in the balance sheet and are depreciated over the shorter of the lease term and the asset's useful lives. A corresponding liability is recognised for the lower of the fair value of the leased asset and the present value of the minimum lease payments in the balance sheet. Lease payments are apportioned between the reduction of the lease liability and finance charges so as to achieve a constant rate of interest on the remaining balance of the liability.
Rentals payable under operating leases are charged to income on a straight line basis over the term of the relevant lease.
1.12
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
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 accounting policies set out the basis of estimates and judgements made during preparation of the financial statements. There are no material judgements which affect the financial statements.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:
Stock provision
The stock provision made in the financial statements for slow moving and obsolete items is estimated by reference to the aged stock reports and in addition where stocks are held by salesmen and engineers by reference to the stock adjustments made when stock counts are carried out.
BURTONS MEDICAL EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 13 -
3
Turnover
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
17,415,558
17,761,850
Rest of World
2,120,136
2,160,346
19,535,694
19,922,196
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
3,847
167,979
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
12,100
Depreciation of owned tangible fixed assets
324,151
233,910
Depreciation of tangible fixed assets held under finance leases
138,879
204,533
Profit on disposal of tangible fixed assets
(59,309)
(48,378)
Amortisation of intangible assets
20,000
20,000
5
Employees
The average monthly number of persons (excluding directors) employed by the company during the year was:
2023
2022
Number
Number
Service & Installation
76
62
Office management
34
42
Total
110
104
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
4,539,195
3,953,565
Social security costs
499,037
437,023
Pension costs
144,962
77,514
5,183,194
4,468,102
During the year, the directors received their emoluments from the parent undertaking, Burtons of Maidstone Limited.
BURTONS MEDICAL EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 14 -
6
Interest payable and similar expenses
2023
2022
£
£
Interest on finance leases and hire purchase contracts
25,393
20,378
Other interest
7,476
27
32,869
20,405
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
202,000
291,500
Adjustments in respect of prior periods
895
(25,905)
Group tax relief
68,640
19,500
Total current tax
271,535
285,095
Deferred tax
Origination and reversal of timing differences
15,000
13,000
Total tax charge
286,535
298,095
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
1,265,637
1,612,370
Expected tax charge based on the standard rate of corporation tax in the UK of 22.50% (2022: 19.00%)
284,768
306,350
Tax effect of expenses that are not deductible in determining taxable profit
710
351
Amortisation on assets not qualifying for tax allowances
4,500
3,800
Under/(over) provided in prior years
895
(25,905)
Deferred tax adjustments in respect of prior years
(708)
8,412
Enchanced capital allowances
(5,353)
(15,757)
Other tax adjustments
1,723
20,844
Taxation charge for the year
286,535
298,095
BURTONS MEDICAL EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 15 -
8
Dividends
2023
2022
£
£
Ordinary dividends paid
1,000,000
1,000,000
9
Intangible fixed assets
Goodwill
£
Cost
At 1 November 2022 and 31 October 2023
90,000
Amortisation and impairment
At 1 November 2022
30,000
Amortisation charged for the year
20,000
At 31 October 2023
50,000
Carrying amount
At 31 October 2023
40,000
At 31 October 2022
60,000
10
Tangible fixed assets
Plant and machinery
Equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 November 2022
803,813
803,600
1,075,384
2,682,797
Additions
79,307
91,192
321,708
492,207
Disposals
(23,051)
(23,879)
(144,293)
(191,223)
At 31 October 2023
860,069
870,913
1,252,799
2,983,781
Depreciation and impairment
At 1 November 2022
632,380
480,130
547,162
1,659,672
Depreciation charged in the year
75,794
108,627
278,609
463,030
Eliminated in respect of disposals
(23,036)
(17,705)
(125,333)
(166,074)
At 31 October 2023
685,138
571,052
700,438
1,956,628
Carrying amount
At 31 October 2023
174,931
299,861
552,361
1,027,153
At 31 October 2022
171,433
323,470
528,222
1,023,125
BURTONS MEDICAL EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
10
Tangible fixed assets
(Continued)
- 16 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases.
2023
2022
£
£
Plant and machinery
13,494
18,891
Motor vehicles
309,380
415,736
Equipment
19,739
322,874
454,366
Depreciation charge for the year in respect of leased assets
138,879
204,533
11
Stocks
2023
2022
£
£
Finished goods and goods for resale
2,898,034
3,014,779
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,815,042
2,292,035
Amounts owed by group undertakings
253,668
206,337
Other debtors
57,737
36,080
Prepayments and accrued income
137,905
81,923
2,264,352
2,616,375
Amounts owed by group undertakings are non interest bearing and have no fixed terms for repayment.
BURTONS MEDICAL EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 17 -
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
15
152,598
Obligations under finance leases
16
155,886
277,199
Trade creditors
506,076
799,207
Amounts owed to group undertakings
98,736
305,198
Taxation and social security
540,156
659,827
Accruals and deferred income
1,132,046
1,292,938
2,585,498
3,334,369
Amounts owed to group undertakings are non interest bearing and have no fixed terms for repayment.
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
16
35,811
78,575
15
Loans and overdrafts
2023
2022
£
£
Bank overdrafts
152,598
Payable within one year
152,598
16
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
155,886
277,199
In two to five years
35,811
78,575
191,697
355,774
Finance lease payments represent amounts payable by the company for certain motor vehicles and equipment. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 2 to 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Obligations under finance leases are secured on the assets to which they relate.
BURTONS MEDICAL EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 18 -
17
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
70,000
55,000
2023
Movements in the year:
£
Liability at 1 November 2022
55,000
Charge to profit or loss
15,000
Liability at 31 October 2023
70,000
None of the deferred tax liability set out above is expected to reverse within 12 months of the balance sheet date.
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
144,962
77,514
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.
19
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
20
Financial commitments, guarantees and contingent liabilities
The company has provided unlimited cross guarantees to the bank in respect of the borrowings of the parent company, Burtons of Maidstone Limited and its subsidiaries. As at 31 October 2023, the group's net indebtedness to the bank amounted to £415,000 (2022 - £674,000).
BURTONS MEDICAL EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 19 -
21
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
27,163
32,890
22
Ultimate controlling party
The immediate and ultimate parent undertaking and controlling party is Burtons of Maidstone Limited, which prepares group financial statements. The registered office of Burtons of Maidstone Limited is Guardian Industrial Estate, Pattenden Lane, Marden, Kent, TN12 9QD.
The ultimate controlling party is Mr D C Burton, a director of Burtons Medical Equipment Limited.
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