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REGISTERED NUMBER: 01567069 (Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31st October 2023

for

Mona Tractor Company Limited

Mona Tractor Company Limited (Registered number: 01567069)






Contents of the Financial Statements
for the Year Ended 31st October 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Cash Flow Statement 15

Notes to the Financial Statements 17


Mona Tractor Company Limited

Company Information
for the Year Ended 31st October 2023







DIRECTORS: Mr J G Jones
Mrs S M Jones



SECRETARY: Mr J G Jones



REGISTERED OFFICE: Industrial Estate Road
Llangefni
Anglesey
LL77 7JA



REGISTERED NUMBER: 01567069 (Wales)



SENIOR STATUTORY AUDITOR: Susan Harris MA ACA



AUDITORS: Champion Accountants LLP
Chartered Accountants, Statutory Auditor
2nd Floor Refuge House
33-37 Watergate Row
Chester
CH1 2LE

Mona Tractor Company Limited (Registered number: 01567069)

Strategic Report
for the Year Ended 31st October 2023

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

Mona Tractor Company Limited (the company) is principally engaged in the sale, servicing and maintenance of agricultural and horticultural tractors & machinery in the north of Wales.

REVIEW OF BUSINESS
This review is written to present a balanced and comprehensive review of the development and performance of our business and its position at the year end. Our review is consistent with the size and nature if our business and it includes an assessment of the risks and uncertainties that we face.

The results of the business are set out in the Income Statement, and these show a profit on ordinary activities before tax of £312,763 (2022: Profit £635,712).

The company's continued association with John Deere, the dedication shown by members of each of our outlets, together with constant review of overheads by the directors have all contributed to the results in the year ended 31 October 2023.

The performance of the company demonstrates its commitment to quality offerings and customer service, as despite the challenging and uncertain market conditions that the agricultural industry is facing, not least due to legacy issues surrounding Brexit & Covid-19 restrictions, but also the increase in cost of most goods & services, interest rate & inflationary pressures on the company and our customers etc. Despite this the company's turnover and profit before tax remained stable. This being the case, the business will aim to continue to build upon the strong underlying platform created in this and previous years as it continues to grow.

During the current financial period, the company has continued to invest in products, people, and service offerings in order to carry on providing a high level of customer service and satisfaction, whilst at the same time attempting to mitigate any conditions, occurrences and risks that are outside of its control.

The business is well placed to continue to grow profitably, maintain reasonable margins and develop both its product and servicing offerings to new and existing customers.

The directors have also taken full consideration of the impact of the current global environment & markets. Based upon the level of support available by the stakeholders and the co-operation of its employees, the directors are confident that the ongoing impact of world events will not detrimentally inhibit the ability of the company to trade on normal terms.


Mona Tractor Company Limited (Registered number: 01567069)

Strategic Report
for the Year Ended 31st October 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The company continues to be an important part of the agricultural community in the north of Wales and sees itself as a key part of the materials handling and facilities service sectors in the region. In order that the company's position in these markets is not unduly compromised, there is a clear risk management strategy in place which enables and supports the business and helps in the identification and management of perceived risks.

The principal future risk remains the tightness of finance available to our credit customers. While uncertainty remains in the agricultural sector and subsidies continue to contract, trading may possibly see some eventual signs of contraction.

Finance risk
The company finances its activities through a combination of directors' loans, bank loans, hire purchase contracts and cash deposits. Overdrafts are used to satisfy short term cash flow requirements. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the company's operating activities. The company does not trade in financial instruments and has no form of financial derivatives. Currently the company does not generally trade outside of the United Kingdom and is not therefore exposed to foreign currency risk.

The main risk associated with the company's financial assets and liabilities are set out below, together with the policies adopted by the directors for their management.

Interest rate risk
The company pays fixed rates of interest on most of its borrowings. As a result of using fixed rates, the directors take the view that the current level of loan debt does not necessitate any hedging action to reduce the risk but this policy is kept under periodical review.

Credit Risk
The directors' objective is to actively manage the risk of financial loss due to bad debts. Standard payment terms call for regular monthly payments in full within 30 days of the month end. The credit worthiness of customers is assessed before a contract is entered into with them. The company also actively manages the collection of payments to ensure that they are received promptly and in accordance with agreed terms, thereby ensuring that the company's exposure to bad debt is minimised.

Brexit
The UK left the EU on 31 January 2020 and despite the amended protocols etc now being in place, there are still some issues arising as a result of this. As the market relating to agricultural machinery etc. is international, the directors are constantly monitoring and adjusting forecasts and projections in line with development of the new cross border regimes.

Global Events
Global events invariably have an impact on costs, which will eventually need to be passed on to the customers. The company will always hold out as long as possible so as to ensure that the customer receives the best deal.

The increase in the cost of goods & services will also undoubtedly affect our customers buying power, and so competitiveness will be key to maintaining the current level of profitability.

FINANCIAL KEY PERFORMANCE INDICATORS (KPI'S)
The board monitors the progress of the company with regard to a number of KPI's,

2023 2022
Turnover £16,008,318 £16,886,491
Earnings before interest & tax £463,313 £676,984
Profit before tax £312,763 £635,712
Headcount 45 45


Mona Tractor Company Limited (Registered number: 01567069)

Strategic Report
for the Year Ended 31st October 2023

NON-FINANCIAL KEY PERFORMANCE INDICATORS
The directors consider it crucial that the company maintains a reputation for the highest standards of business conduct and are responsible for setting, reviewing and upholding the culture, values and standards of this family business. As such the directors seek to sustain and develop its strong & stable partnership with all of the company's customers, employees & suppliers, and provide outstanding service & products.

The key non-financial performance indicators are therefore deemed to be:

Our People:
The success of the business relies on attracting, retaining and motivating our team, and so seek to ensure that the company is an inspiring place to work.

Our Customers:
The company continually assesses the priorities related to customers so as to enhance and maintain relationships over the long-term and so we regularly engage with all our customers base to keep abreast of their requirements.

Our Suppliers:
The company maintains a high level of engagement with all of its suppliers, but particularly our key brand partners, John Deere, with whom a constant dialogue is maintained. This being so as to ensure the brands are represented to the best of the company's ability and that all of their high standards are not only met, but surpassed.

In addition to the above, environmental matters are monitored, reviewed and where possible improvement actions implemented by the directors in order to improve the company's environmental credentials.

ON BEHALF OF THE BOARD:





Mr J G Jones - Secretary


31st July 2024

Mona Tractor Company Limited (Registered number: 01567069)

Report of the Directors
for the Year Ended 31st October 2023

The directors present their report with the financial statements of the company for the year ended 31st October 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the sale, servicing, and maintenance of agricultural and horticultural tractors & machinery in the north of Wales.

DIVIDENDS
No dividends will be distributed for the year ended 31st October 2023.

FUTURE DEVELOPMENTS
The company will continue to focus on its brand development, customer service and product offering.

DIRECTORS
The directors shown below have held office during the whole of the period from 1st November 2022 to the date of this report.

Mr J G Jones
Mrs S M Jones

DISCLOSURE IN THE STRATEGIC REPORT
The company has chosen to set out in the strategic report some information required by medium sized companies to be contained in the report of the directors. It has done so in respect of the business review and principal risks and uncertainties.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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.

The directors are also responsible for assessing the position of the company with regard its going concern status for a period of at least 12 months from the date they approve the financial statements.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Mona Tractor Company Limited (Registered number: 01567069)

Report of the Directors
for the Year Ended 31st October 2023


AUDITORS
The auditors, Champion Accountants LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:



Mr J G Jones - Secretary


31st July 2024

Report of the Independent Auditors to the Members of
Mona Tractor Company Limited

Opinion
We have audited the financial statements of Mona Tractor Company Limited (the 'company') for the year ended 31st October 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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 31st 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.

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

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Mona Tractor Company Limited


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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- 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 directors' 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 Statement of Directors' Responsibilities set out on page five, 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 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.

Report of the Independent Auditors to the Members of
Mona Tractor Company Limited


Auditors' 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 a Report of the Auditors 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:

Audit procedures

We determine significant applicable laws and regulations through discussion with those charged with governance and our own knowledge of the industry and design audit procedures to help identify instances of non-compliance with those laws and regulations that may have a material effect on the financial statements.

Our approach is to consider the legal and regulatory frameworks directly applicable to the financial statements reporting framework ((FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK; the nature of the industry; the business performance and the key drivers for management remuneration; the control environment and the procedures in place to address identified risks, including management override, non-compliance with laws and regulations and to prevent and detect fraud or irregularity. We communicate identified laws and regulations throughout our team and remain alert to any indications of non-compliance throughout the audit.

Our procedures are designed to provide reasonable assurance that the financial statements are free from material misstatement or error and include: enquiries of management and of staff in key compliance functions; review of minutes of meetings of those charged with governance; review and testing of manual journals and significant transactions outside the normal course of business; review of financial statement disclosures and testing to supporting documentation; performance of analytical procedures.

We are not responsible for preventing non-compliance and due to the inherent limitations of an audit, as described above, the audit cannot be relied upon to detect all instances of non-compliance with laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.




Susan Harris MA ACA (Senior Statutory Auditor)
for and on behalf of Champion Accountants LLP
Chartered Accountants, Statutory Auditor
2nd Floor Refuge House
33-37 Watergate Row
Chester
CH1 2LE

31st July 2024

Mona Tractor Company Limited (Registered number: 01567069)

Income Statement
for the Year Ended 31st October 2023

31.10.23 31.10.22
Notes £    £   

TURNOVER 16,008,318 16,886,491

Cost of sales 14,313,099 14,981,615
GROSS PROFIT 1,695,219 1,904,876

Administrative expenses 1,245,406 1,241,392
449,813 663,484

Other operating income 13,500 13,500
OPERATING PROFIT 6 463,313 676,984


Interest payable and similar expenses 7 150,550 41,272
PROFIT BEFORE TAXATION 312,763 635,712

Tax on profit 8 58,704 138,183
PROFIT FOR THE FINANCIAL YEAR 254,059 497,529

Mona Tractor Company Limited (Registered number: 01567069)

Other Comprehensive Income
for the Year Ended 31st October 2023

31.10.23 31.10.22
Notes £    £   

PROFIT FOR THE YEAR 254,059 497,529


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

254,059

497,529

Mona Tractor Company Limited (Registered number: 01567069)

Balance Sheet
31st October 2023

31.10.23 31.10.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 646,648 576,129

CURRENT ASSETS
Stocks 10 8,112,358 4,684,699
Debtors 11 1,468,890 2,264,205
Cash at bank and in hand 21 271,695
9,581,269 7,220,599
CREDITORS
Amounts falling due within one year 12 6,507,369 4,502,288
NET CURRENT ASSETS 3,073,900 2,718,311
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,720,548

3,294,440

CREDITORS
Amounts falling due after more than one year 13 (806,915 ) (650,310 )

PROVISIONS FOR LIABILITIES 17 (52,047 ) (36,603 )
NET ASSETS 2,861,586 2,607,527

CAPITAL AND RESERVES
Called up share capital 18 42,012 42,012
Retained earnings 19 2,819,574 2,565,515
SHAREHOLDERS' FUNDS 2,861,586 2,607,527

The financial statements were approved by the Board of Directors and authorised for issue on 31st July 2024 and were signed on its behalf by:




Mr J G Jones - Director



Mrs S M Jones - Director


Mona Tractor Company Limited (Registered number: 01567069)

Statement of Changes in Equity
for the Year Ended 31st October 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1st November 2021 42,012 2,067,986 2,109,998

Changes in equity
Total comprehensive income - 497,529 497,529
Balance at 31st October 2022 42,012 2,565,515 2,607,527

Changes in equity
Total comprehensive income - 254,059 254,059
Balance at 31st October 2023 42,012 2,819,574 2,861,586

Mona Tractor Company Limited (Registered number: 01567069)

Cash Flow Statement
for the Year Ended 31st October 2023

31.10.23 31.10.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (992,232 ) 410,593
Interest paid (142,722 ) (40,803 )
Interest element of hire purchase payments
paid

(7,828

)

(469

)
Tax paid (124,999 ) (89,944 )
Net cash from operating activities (1,267,781 ) 279,377

Cash flows from investing activities
Purchase of tangible fixed assets (177,003 ) (90,358 )
Sale of tangible fixed assets 2,500 31,500
Net cash from investing activities (174,503 ) (58,858 )

Cash flows from financing activities
New loans in year 500,000 300,000
Loan repayments in year (148,305 ) (114,972 )
New Hire purchases in year 140,132 14,450
Capital repayments in year (10,985 ) (9,471 )
Amount introduced by directors 700,000 -
Amount withdrawn by directors (49,000 ) (82,000 )
Net cash from financing activities 1,131,842 108,007

(Decrease)/increase in cash and cash equivalents (310,442 ) 328,526
Cash and cash equivalents at beginning of
year

2

271,695

(56,831

)

Cash and cash equivalents at end of year 2 (38,747 ) 271,695

Mona Tractor Company Limited (Registered number: 01567069)

Notes to the Cash Flow Statement
for the Year Ended 31st October 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
31.10.23 31.10.22
£    £   
Profit before taxation 312,763 635,712
Depreciation charges 106,484 101,407
(Profit)/loss on disposal of fixed assets (2,500 ) 12,818
Government grants (13,500 ) (13,500 )
Finance costs 150,550 41,272
553,797 777,709
Increase in stocks (3,427,659 ) (1,257,474 )
Decrease/(increase) in trade and other debtors 795,315 (433,529 )
Increase in trade and other creditors 1,086,315 1,323,887
Cash generated from operations (992,232 ) 410,593

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st October 2023
31.10.23 1.11.22
£    £   
Cash and cash equivalents 21 271,695
Bank overdrafts (38,768 ) -
(38,747 ) 271,695
Year ended 31st October 2022
31.10.22 1.11.21
£    £   
Cash and cash equivalents 271,695 21
Bank overdrafts - (56,852 )
271,695 (56,831 )


Mona Tractor Company Limited (Registered number: 01567069)

Notes to the Cash Flow Statement
for the Year Ended 31st October 2023

3. ANALYSIS OF CHANGES IN NET DEBT

At 1.11.22 Cash flow At 31.10.23
£    £    £   
Net cash
Cash at bank and in hand 271,695 (271,674 ) 21
Bank overdrafts - (38,768 ) (38,768 )
271,695 (310,442 ) (38,747 )
Debt
Finance leases (11,102 ) (129,148 ) (140,250 )
Debts falling due within 1 year (148,305 ) (250,000 ) (398,305 )
Debts falling due after 1 year (495,480 ) (101,694 ) (597,174 )
(654,887 ) (480,842 ) (1,135,729 )
Total (383,192 ) (791,284 ) (1,174,476 )

Mona Tractor Company Limited (Registered number: 01567069)

Notes to the Financial Statements
for the Year Ended 31st October 2023

1. STATUTORY INFORMATION

Mona Tractor Company Limited is a private company, limited by shares , registered in Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. GOING CONCERN

At the time of approving the financial statements, the directors have 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.

The financial statements have also been prepared in accordance with the Companies Act 2006 and applicable accounting standards in the United Kingdom.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

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 are shown net of value added tax and other sales related taxes. 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 risk and reward of ownership is passed to the buyer (usually on hand over or 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.

Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses, Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Land is not depreciated. Depreciation on other assets is provided at the following annual rates in order to allocate the cost of the assets, less their residual value, over their estimated useful lives:

- Leasehold improvements - 5% on cost, which represents a 20 year write down period.
- Plant and machinery - 25% on cost
- Motor vehicles - 25% on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively as appropriate, or if there is an indication of a significance change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the profit & loss.

Mona Tractor Company Limited (Registered number: 01567069)

Notes to the Financial Statements - continued
for the Year Ended 31st October 2023

3. ACCOUNTING POLICIES - continued

Stocks
Stocks are stated at the lower of cost & net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.

Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised in the profit & loss immediately.

Finance & borrowing costs
Finance costs
Finance costs are charged to the profit & loss over the term of the debt using the effective interest method. Issue costs are recognised as they are incurred.

Borrowing costs
All borrowing costs are recognised in the profit & loss in the year in which they are incurred.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Cash & cash equivalents
Cash represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Mona Tractor Company Limited (Registered number: 01567069)

Notes to the Financial Statements - continued
for the Year Ended 31st October 2023

3. ACCOUNTING POLICIES - continued

Provision for liabilities
Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the profit & loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the balance sheet.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Debtors & creditors
Debtors
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less impairments.

Creditors
Short term creditors are measured at transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Mona Tractor Company Limited (Registered number: 01567069)

Notes to the Financial Statements - continued
for the Year Ended 31st October 2023

3. ACCOUNTING POLICIES - continued

Judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, the directors are required to make judgments, estimates and assumptions about 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 as well as future periods, where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Stock valuation
Stocks are valued at the lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made regarding consumer demand and expected selling prices.

Debt recoverability
Provisions are made at the year end for bad debts. Calculation of these provisions require judgements to be made by the directors, which include historic trends and other elements of judgement.

Financial instruments
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

4. EMPLOYEES AND DIRECTORS
31.10.23 31.10.22
£    £   
Wages and salaries 1,318,551 1,257,034
Social security costs 114,637 117,794
Other pension costs 86,322 89,049
1,519,510 1,463,877

The average number of employees during the year was as follows:
31.10.23 31.10.22

Directors 2 2
Employees 43 43
45 45

5. DIRECTORS' EMOLUMENTS
31.10.23 31.10.22
£    £   
Directors' remuneration 68,651 55,700

Mona Tractor Company Limited (Registered number: 01567069)

Notes to the Financial Statements - continued
for the Year Ended 31st October 2023

5. DIRECTORS' EMOLUMENTS - continued

Directors' pension contributions for the year amounted to £49,713 (2022: £48,914)

The number of directors to whom retirement benefits are accruing is 2 (2022: 2).

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.10.23 31.10.22
£    £   
Depreciation - owned assets 92,996 98,073
Depreciation - assets on hire purchase contracts 13,488 3,333
(Profit)/loss on disposal of fixed assets (2,500 ) 12,818
Auditors' remuneration 5,345 5,345
Accountancy and taxation compliance services 7,505 7,505

7. INTEREST PAYABLE AND SIMILAR EXPENSES
31.10.23 31.10.22
£    £   
Bank loan interest 52,844 30,383
Other loan interest 89,501 10,420
Late payment interest 377 -
Hire purchase 7,828 469
150,550 41,272

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.10.23 31.10.22
£    £   
Current tax:
UK corporation tax 43,260 126,813

Deferred tax 15,444 11,370
Tax on profit 58,704 138,183

Mona Tractor Company Limited (Registered number: 01567069)

Notes to the Financial Statements - continued
for the Year Ended 31st October 2023

8. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31.10.23 31.10.22
£    £   
Profit before tax 312,763 635,712
Profit multiplied by the standard rate of corporation tax in the UK of
22.430% (2022 - 19%)

70,153

120,785

Effects of:
Income not taxable for tax purposes (3,028 ) (2,565 )
Capital allowances in excess of depreciation (16,417 ) -
Depreciation in excess of capital allowances - 1,169
Adjustments to tax charge in respect of previous periods (7,448 ) -
Deferred tax movement 15,444 11,370

s455 - 7,424
Total tax charge 58,704 138,183

9. TANGIBLE FIXED ASSETS
Leasehold Plant and Motor
improvements machinery vehicles Totals
£    £    £    £   
COST
At 1st November 2022 727,120 187,187 433,058 1,347,365
Additions - 5,091 171,912 177,003
Disposals - (53,333 ) (25,969 ) (79,302 )
At 31st October 2023 727,120 138,945 579,001 1,445,066
DEPRECIATION
At 1st November 2022 290,847 154,015 326,374 771,236
Charge for year 36,356 11,798 58,330 106,484
Eliminated on disposal - (53,333 ) (25,969 ) (79,302 )
At 31st October 2023 327,203 112,480 358,735 798,418
NET BOOK VALUE
At 31st October 2023 399,917 26,465 220,266 646,648
At 31st October 2022 436,273 33,172 106,684 576,129

Mona Tractor Company Limited (Registered number: 01567069)

Notes to the Financial Statements - continued
for the Year Ended 31st October 2023

9. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1st November 2022 16,000
Additions 153,467
At 31st October 2023 169,467
DEPRECIATION
At 1st November 2022 3,333
Charge for year 13,488
At 31st October 2023 16,821
NET BOOK VALUE
At 31st October 2023 152,646
At 31st October 2022 12,667

10. STOCKS
31.10.23 31.10.22
£    £   
Parts held in stock 498,957 434,594
Wholegood stock 7,613,401 4,250,105
8,112,358 4,684,699

Included in the stock valuations are contra provisions for slow moving, obsolete and discounted stock. In the year the total provision included amounted to £183,785 (2022 £168,237).

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.10.23 31.10.22
£    £   
Trade debtors 1,375,926 2,017,324
Other debtors 92,464 244,298
Prepayments 500 2,583
1,468,890 2,264,205

Included within the trade debtor figure is a contra provisions for possible bad debts. In the year the total provision included amounted to £95,982 (2022 £131,111).

Mona Tractor Company Limited (Registered number: 01567069)

Notes to the Financial Statements - continued
for the Year Ended 31st October 2023

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.10.23 31.10.22
£    £   
Bank loans and overdrafts (see note 14) 437,073 148,305
Hire purchase contracts (see note 15) 65,509 4,772
Trade creditors 4,113,361 2,730,285
Tax 45,075 126,814
VAT 134,503 211,225
Other creditors 230,644 463,539
Directors' current accounts 1,442,000 791,000
Accrued expenses 25,704 12,848
Deferred government grants 13,500 13,500
6,507,369 4,502,288

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.10.23 31.10.22
£    £   
Bank loans (see note 14) 597,174 495,480
Hire purchase contracts (see note 15) 74,741 6,330
Deferred government grants 135,000 148,500
806,915 650,310

14. LOANS

An analysis of the maturity of loans is given below:

31.10.23 31.10.22
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 38,768 -
Bank loans 398,305 148,305
437,073 148,305

Amounts falling due between one and two years:
Bank loans - 1-2 years 398,305 148,305

Amounts falling due between two and five years:
Bank loans - 2-5 years 198,869 313,842

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more 5 yr by instal - 33,333

Mona Tractor Company Limited (Registered number: 01567069)

Notes to the Financial Statements - continued
for the Year Ended 31st October 2023

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
31.10.23 31.10.22
£    £   
Net obligations repayable:
Within one year 65,509 4,772
Between one and five years 74,741 6,330
140,250 11,102

Net obligations under finance leases and hire purchase contracts are secured against the assets to which the lease relates.

The finance lease payments, including hire purchase contracts, represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 31 months (2022: 36 months). All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Non-cancellable operating leases
31.10.23 31.10.22
£    £   
Within one year 40,000 40,000
Between one and five years 160,000 160,000
In more than five years 10,000 50,000
210,000 250,000

Being payable to Xafinity Pension Trustees Limited for the lease of property over a 10 year period commencing from February 2019.

Mona Tractor Company Limited (Registered number: 01567069)

Notes to the Financial Statements - continued
for the Year Ended 31st October 2023

16. SECURED DEBTS

The following secured debts are included within creditors:

31.10.23 31.10.22
£    £   
Bank overdraft 38,768 -
Bank loans 995,479 643,785
Hire purchase contracts 140,250 11,102
1,174,497 654,887

The following charge is lodged as 'active' on the company's record at Companies House:

Type: Debenture

Date created: 25 January 2013

Entitled: HSBC Bank Plc

Detail: Fixed and floating charge over the undertaking and all property and assets present and future, including goodwill, book debts, uncalled capital, buildings, fixtures, fixed plant & machinery.

17. PROVISIONS FOR LIABILITIES
31.10.23 31.10.22
£    £   
Deferred tax 52,047 36,603

Deferred
tax
£   
Balance at 1st November 2022 36,603
Charge to Income Statement during year 15,444
Prior year adjustment
Balance at 31st October 2023 52,047

The deferred tax liability set out above relates to accelerated capital allowances that are expected to mature within the same period.

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.10.23 31.10.22
value: £    £   
42,012 Ordinary £1 42,012 42,012

The ordinary shares have full voting rights, dividend and capital distribution (including winding up) rights.

Mona Tractor Company Limited (Registered number: 01567069)

Notes to the Financial Statements - continued
for the Year Ended 31st October 2023

19. RESERVES
Retained
earnings
£   

At 1st November 2022 2,565,515
Profit for the year 254,059
At 31st October 2023 2,819,574

20. RETIREMENT BENEFITS

The company operates defined contributions pension schemes. The assets of the schemes are held separately from those of the company in independently administered funds. The pension cost charge represents contributions payable by the company to the funds and amounted to £46,322 (2022: £49,049).

21. RELATED PARTY DISCLOSURES

Included in "creditors due within one year" are loans from the directors of £1,442,000 (2022: £791,000).

The controlling party is Mr J G Jones.