IRIS Accounts Production v24.2.0.383 03986255 Board of Directors 1.1.23 31.12.23 31.12.23 the provision of storage facilities and specialist transport true false true true false false false true false Ordinary A 1.00000 Ordinary C 1.00000 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REGISTERED NUMBER: 03986255 (England and Wales)












STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2023

FOR

MTEC WAREHOUSING LIMITED

MTEC WAREHOUSING LIMITED (REGISTERED NUMBER: 03986255)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


MTEC WAREHOUSING LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST DECEMBER 2023







DIRECTORS: D R Williams
S.R.P.K. Carpenter
D G Page
J W Branch
E H T Naish
K Ward
D Williams





REGISTERED OFFICE: Manufactory House
Bell Lane
Hertford
Hertfordshire
SG14 1BP





REGISTERED NUMBER: 03986255 (England and Wales)





AUDITORS: Cook & Partners Limited
Statutory Auditor
Manufactory House
Bell Lane
Hertford
Hertfordshire
SG14 1BP

MTEC WAREHOUSING LIMITED (REGISTERED NUMBER: 03986255)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023

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

The Company has seen steady sales throughout the year despite average market conditions across the art market generally.
The art market has seen difficult conditions due to BREXIT as art collectors have struggled initially with increased costs and additional taxation associated with Customs Regimes and Importation VAT.
Due to this fact some of the market has shifted focus from London pre-Brexit to Paris post Brexit where sale conditions are more favourable for sales in the EU and the rest of the World.

Consequently, there has been a shift from international buyers purchasing artworks in London and a general reduction in the large-scale Exhibitions in the UK aimed at international clientele.

The Mtec Board have foreseen this scenario and have concentrated on increasing volumes of storage whilst reducing warehousing overhead costs, subsequently the board have planned to dispose of one of its leased warehouses in Cambridgeshire in September 2024 and start an investment program to increase volumes in its Hertfordshire warehouse by the addition of mezzanine floors to create an additional 20,000sqft.

This program of investment of circa £500,000 initiated in 2023 will see completion in January 2025 with major benefits being seen as early as Q2 2025.

Due to its niche position in the market, the Board have been able to consolidate its share of the market by signing several 5-year contracts with clients such as Phillips Auctioneers and The Royal Botanic Gardens at Kew as well as Paddington Basin Development together with its long-term contracts with The City of London Corporation

PRINCIPAL RISKS AND UNCERTAINTIES
There will be increased expenditure in 2023-2024 due to investment in warehousing mezzanine floors and additional racking, as well as costs of stock transfers involving transportation and additional personnel.

The Board will increase investment in Mtec Belgium to take advantage of the upsurge in the European art market by disposing of its Custom Bonded warehouse in the Port of Antwerp and offices in Melsele with a move to a new all-purpose Customs Bonded warehouse in Kruibeke in Q3 2024.

These investments will ultimately reduce profit levels in the short to medium term in 2023-2024 but the company will reap benefits in 2025 with reduced overheads and increase in profits.
The Board will steer the company on a more focussed approach towards securing additional term contracts for Public Art installations and higher value storage clients.

ON BEHALF OF THE BOARD:





S.R.P.K. Carpenter - Director


2nd August 2024

MTEC WAREHOUSING LIMITED (REGISTERED NUMBER: 03986255)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2023

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

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

DIRECTORS
The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report.

D R Williams
S.R.P.K. Carpenter
D G Page
J W Branch
E H T Naish
K Ward
D Williams

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.

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.

AUDITORS
The auditors, Cook & Partners Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





S.R.P.K. Carpenter - Director


2nd August 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MTEC WAREHOUSING LIMITED

Opinion
We have audited the financial statements of MTEC Warehousing Limited (the 'company') for the year ended 31st December 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 December 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
MTEC WAREHOUSING 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 three, 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
MTEC WAREHOUSING 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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including Fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Auditors approach to assessing the risks of material misstatement due to irregularities, including fraud

Our approach was as follows:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity. The following laws and regulations are considered to be significant to the entity:
> Financial reporting Standard 102
> Companies Act 2006
> UK General Data Protection Regulation

We assessed the risks of material misstatement in respect of fraud as follows:

> Discussed the risk of material misstatement due to irregularities, including fraud with management and those charged with governance at the planning stage to confirm that risks had been adequately identified and that the controls in place are sufficient for the size and nature of the business to reduce those risks to an acceptably low level.
> Undertook an initial analytical review of the financial statements to identify any potentially unusual or unexpected relationships or high risk audit areas.
> Completed a risk assessment checklist to aid in the identification of Risks for a company of this size and nature.
> We considered the risk of fraud through management override of controls, a common risk in a company of this size and nature, in response; we incorporated testing of manual journal entries into our audit approach and undertook a purely substantive approach to the audit with no reliance placed on controls.
> Accounting policies were reviewed at the planning stage to identify any subjective measurements or complex transactions where management would have the potential to show bias.
> We ensured that all in the audit team are aware of the risks identified and particular areas that were susceptible to misstatement during the audit planning meeting.
> Throughout the audit additional substantive testing was undertaken in areas where there was perceived to be a medium or high risk of misstatement.
> Audit testing was undertaken in a manner that was unpredictable in nature, selection and timing when compared to previous years work.
> The engagement Partners final review of the audit file and financial statements included a detailed review of all areas of medium or high risk identified at the planning stage of the audit.

Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above:

> Financial reporting Standard 102, Companies Act 2006 and UK General Data Protection Regulations. The audit team all have a good understanding of the requirements under these laws and regulations common to most trading businesses and were alert throughout the audit to any potential instances of non-compliance.
> Further, at both the planning and completion stage of the audit enquiries where made of management/those charged with governance/legal counsel/other group auditors regarding any known instances of fraud or non-compliance with laws and regulations
> These representations were corroborated where possible through the review of board minutes/correspondence with HMRC and companies house and correspondence with other regulatory bodies. No contradictory evidence was noted.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MTEC WAREHOUSING LIMITED

We consider that the work detailed above has ensured that the likelihood of detection of irregularities including fraud is considered to be high both at management level and during our audit approach. It is however worth noting that there is an inherent difficulty in detecting irregularities and there is no guarantee that all irregularities have been identified.

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.




Jeff Oliver (Senior Statutory Auditor)
for and on behalf of Cook & Partners Limited
Statutory Auditor
Manufactory House
Bell Lane
Hertford
Hertfordshire
SG14 1BP

2nd August 2024

MTEC WAREHOUSING LIMITED (REGISTERED NUMBER: 03986255)

INCOME STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 13,309,971 14,716,075

Cost of sales 7,619,593 8,157,105
GROSS PROFIT 5,690,378 6,558,970

Administrative expenses 5,481,923 6,022,538
208,455 536,432

Other operating income (13,852 ) 58,371
OPERATING PROFIT 4 194,603 594,803

Interest receivable and similar income 4,572 2,139
199,175 596,942

Interest payable and similar expenses 5 131,278 90,157
PROFIT BEFORE TAXATION 67,897 506,785

Tax on profit 6 14,821 81,868
PROFIT FOR THE FINANCIAL YEAR 53,076 424,917

MTEC WAREHOUSING LIMITED (REGISTERED NUMBER: 03986255)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31ST DECEMBER 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 53,076 424,917


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

53,076

424,917

MTEC WAREHOUSING LIMITED (REGISTERED NUMBER: 03986255)

BALANCE SHEET
31ST DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 62,630 24,270
Tangible assets 9 1,315,205 757,768
1,377,835 782,038

CURRENT ASSETS
Stocks 10 62,050 53,084
Debtors 11 3,079,275 2,784,794
Cash at bank and in hand 463,674 1,338,113
3,604,999 4,175,991
CREDITORS
Amounts falling due within one year 12 2,558,269 3,081,263
NET CURRENT ASSETS 1,046,730 1,094,728
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,424,565

1,876,766

CREDITORS
Amounts falling due after more than one
year

13

(695,154

)

(215,252

)

PROVISIONS FOR LIABILITIES 16 (129,934 ) (115,113 )
NET ASSETS 1,599,477 1,546,401

CAPITAL AND RESERVES
Called up share capital 17 100 100
Retained earnings 18 1,599,377 1,546,301
SHAREHOLDERS' FUNDS 1,599,477 1,546,401

The financial statements were approved by the Board of Directors and authorised for issue on 2nd August 2024 and were signed on its behalf by:





S.R.P.K. Carpenter - Director


MTEC WAREHOUSING LIMITED (REGISTERED NUMBER: 03986255)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST DECEMBER 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1st January 2022 100 1,121,384 1,121,484

Changes in equity
Total comprehensive income - 424,917 424,917
Balance at 31st December 2022 100 1,546,301 1,546,401

Changes in equity
Total comprehensive income - 53,076 53,076
Balance at 31st December 2023 100 1,599,377 1,599,477

MTEC WAREHOUSING LIMITED (REGISTERED NUMBER: 03986255)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 422,448 1,059,696
Interest paid (91,367 ) (63,729 )
Interest element of hire purchase payments
paid

(39,911

)

(26,428

)
Tax paid (79,835 ) -
Net cash from operating activities 211,335 969,539

Cash flows from investing activities
Purchase of intangible fixed assets (38,360 ) (24,270 )
Purchase of tangible fixed assets (1,003,281 ) (110,969 )
Sale of tangible fixed assets 6,500 -
Interest received 4,572 2,139
Net cash from investing activities (1,030,569 ) (133,100 )

Cash flows from financing activities
New HP agreements in year 894,543 -
Capital repayments in year (278,765 ) (208,088 )
Amount introduced by directors 990,000 1,710,000
Amount withdrawn by directors (1,660,983 ) (1,691,509 )
Net cash from financing activities (55,205 ) (189,597 )

(Decrease)/increase in cash and cash equivalents (874,439 ) 646,842
Cash and cash equivalents at beginning of
year

2

1,338,113

691,560
Effect of foreign exchange rate changes - (289 )
Cash and cash equivalents at end of year 2 463,674 1,338,113

MTEC WAREHOUSING LIMITED (REGISTERED NUMBER: 03986255)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 67,897 506,785
Depreciation charges 444,682 265,661
Profit on disposal of fixed assets (5,337 ) -
Finance costs 131,278 90,157
Finance income (4,572 ) (2,139 )
633,948 860,464
(Increase)/decrease in stocks (8,966 ) 7,840
Decrease in trade and other debtors 255,127 700,043
Decrease in trade and other creditors (457,661 ) (508,651 )
Cash generated from operations 422,448 1,059,696

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 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 463,674 1,338,113
Year ended 31st December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 1,338,113 691,560


3. ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 1,338,113 (874,439 ) 463,674
1,338,113 (874,439 ) 463,674
Debt
Finance leases (418,014 ) (615,779 ) (1,033,793 )
(418,014 ) (615,779 ) (1,033,793 )
Total 920,099 (1,490,218 ) (570,119 )

MTEC WAREHOUSING LIMITED (REGISTERED NUMBER: 03986255)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

1. STATUTORY INFORMATION

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

2. ACCOUNTING POLICIES

Accounting 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. The financial statements have been prepared under the historical cost convention.

Going Concern Justification
The directors have assessed various factors and risks affecting the company and its ability in these difficult economic times to continue to trade as a going concern. The directors have not identified any material uncertainties or risks related to events or conditions that could affect the carrying values of the company's assets and liabilities as at the balance sheet date. Therefore the financial statements for the year ended 31 December 2023 have been prepared using the going concern basis of accounting.

Revenue
Revenue - Described as turnover - is the value of goods (net of VAT) provided to customers during the year, plus the value of work (net of VAT) performed during the year with respect to services.

Revenue is recognised on the sale of goods when the goods are delivered and title has passed. Revenue is recognised on the provision of services once completed.

Intangible assets
There is no amortisation charge in the accounting period ended 31 December 2023 (2022: £nil) as the asset is in development and not yet in use. Amortisation will start once the assets have been brought into use.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - 25% on reducing balance
Fixtures and fittings - 25% on reducing balance
Motor vehicles - 25% on reducing balance

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

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.


MTEC WAREHOUSING LIMITED (REGISTERED NUMBER: 03986255)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

2. ACCOUNTING POLICIES - continued
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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Where assets are financed by leasing agreements that give rights approximately to ownership ("finance leases") the assets are treated as if they had been purchased outright. The amount capitalised is the fair value of the asset concerned. The corresponding liability to the leasing company is included as an obligation under finance leases. Depreciation of leased assets is charged to the profit and loss account over the short of the lease terms and their useful lives. Leasing payments are treated as consisting of capital and interest elements, and interest is charged to the profit and loss account on a straight line basis which is considered to be a reasonable approximation to a constant rate of charge on the outstanding balance.

All other leases are treated as "operating leases" and the relevant annual rentals are charged to the profit and loss account on a straight line basis over the lease term; unless they relate to vacant leasehold properties in which case provision is made on a discounted basis for the net obligation under the lease. The unwinding of the discount is disclosed within interest payable and similar charges.

Pension costs
The company operates a defined contribution scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension costs charge represents contributions payable for the period by the company to the fund.

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 3,774,431 3,694,191
Social security costs 410,121 428,631
Other pension costs 183,584 192,030
4,368,136 4,314,852

The average number of employees during the year was as follows:
2023 2022

Average number of employees 87 68

2023 2022
£    £   
Directors' remuneration 284,891 356,670
Directors' pension contributions to money purchase schemes 84,213 93,631

MTEC WAREHOUSING LIMITED (REGISTERED NUMBER: 03986255)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

3. EMPLOYEES AND DIRECTORS - continued

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 89,631 91,713
Pension contributions to money purchase schemes 1,321 1,321

4. OPERATING PROFIT

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

2023 2022
£    £   
Hire of plant and machinery 297,677 441,959
Depreciation - owned assets 63,217 87,461
Depreciation - assets on hire purchase contracts 381,464 177,911
Profit on disposal of fixed assets (5,337 ) -
Foreign exchange differences 13,852 (58,371 )

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank charges 15,538 14,057
Invoice discounting charges and interest 75,829 49,551
Interest on taxation - 121
Hire purchase 39,911 26,428
131,278 90,157

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax - 79,835
Corp. tax refund adjustment - 24,824
Total current tax - 104,659

Deferred tax 14,821 (22,791 )
Tax on profit 14,821 81,868

UK corporation tax has been charged at 19% (2022 - 19%).

MTEC WAREHOUSING LIMITED (REGISTERED NUMBER: 03986255)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

6. TAXATION - continued

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

2023 2022
£    £   
Profit before tax 67,897 506,785
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

12,900

96,289

Effects of:
Adjustments to tax charge in respect of previous periods 4,582 (6,712 )
Super Deduction claimed (2,661 ) (7,709 )
Total tax charge 14,821 81,868

7. REMUNERATION TRUST

The Company made a contribution in the accounting period to a Remuneration Trust in the amount of £1,100,000 (2022 £1,900,000)

The terms of the trust are set out in a trust deed executed by the company and the original trustees

8. INTANGIBLE FIXED ASSETS
Computer
software
£   
COST
At 1st January 2023 24,270
Additions 38,360
At 31st December 2023 62,630
NET BOOK VALUE
At 31st December 2023 62,630
At 31st December 2022 24,270

MTEC WAREHOUSING LIMITED (REGISTERED NUMBER: 03986255)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

9. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor
machinery fittings vehicles Totals
£    £    £    £   
COST
At 1st January 2023 1,097,718 318,485 1,968,482 3,384,685
Additions 4,332 14,517 984,432 1,003,281
Disposals (6,900 ) - (15,500 ) (22,400 )
At 31st December 2023 1,095,150 333,002 2,937,414 4,365,566
DEPRECIATION
At 1st January 2023 915,379 231,268 1,480,270 2,626,917
Charge for year 48,597 27,916 368,168 444,681
Eliminated on disposal (6,900 ) - (14,337 ) (21,237 )
At 31st December 2023 957,076 259,184 1,834,101 3,050,361
NET BOOK VALUE
At 31st December 2023 138,074 73,818 1,103,313 1,315,205
At 31st December 2022 182,339 87,217 488,212 757,768

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1st January 2023 491,115 1,327,212 1,818,327
Additions - 984,432 984,432
Transfer to ownership (265,003 ) (577,522 ) (842,525 )
At 31st December 2023 226,112 1,734,122 1,960,234
DEPRECIATION
At 1st January 2023 389,576 965,065 1,354,641
Charge for year 22,701 358,763 381,464
Transfer to ownership (227,552 ) (517,491 ) (745,043 )
At 31st December 2023 184,725 806,337 991,062
NET BOOK VALUE
At 31st December 2023 41,387 927,785 969,172
At 31st December 2022 101,539 362,147 463,686

10. STOCKS
2023 2022
£    £   
Stocks 20,895 22,672
Work-in-progress 41,155 30,412
62,050 53,084

MTEC WAREHOUSING LIMITED (REGISTERED NUMBER: 03986255)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,478,133 1,908,927
Other debtors 1,051,534 875,867
Directors' current accounts 549,608 -
3,079,275 2,784,794

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 14) 338,639 202,762
Trade creditors 1,141,566 1,045,713
Tax - 79,835
Social security and other taxes 201,967 239,730
Other creditors 876,097 1,364,013
Directors' current accounts - 121,375
Deferred income - 27,835
2,558,269 3,081,263

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Hire purchase contracts (see note 14) 695,154 215,252

14. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 338,639 202,762
Between one and five years 695,154 215,252
1,033,793 418,014

Non-cancellable operating leases
2023 2022
£    £   
Within one year 327,688 280,711
Between one and five years 338,333 501,755
666,021 782,466

15. SECURED DEBTS

Included within Other creditors is £613,000 (2022: £942,000) of monies due to RBS Finance and is secured on certain trade debtors due to the company.

MTEC WAREHOUSING LIMITED (REGISTERED NUMBER: 03986255)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

16. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 129,934 115,113

Deferred
tax
£   
Balance at 1st January 2023 115,113
Provided during year 14,821
Balance at 31st December 2023 129,934

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
80 Ordinary A £1 80 80
10 Ordinary C £1 10 10
5 Ordinary D £1 5 5
5 Ordinary E £1 5 5
100 100

18. RESERVES
Retained
earnings
£   

At 1st January 2023 1,546,301
Profit for the year 53,076
At 31st December 2023 1,599,377

19. PENSION COMMITMENTS

The company operates a defined contribution pension scheme on behalf of five of its directors and certain employees.

The assets of the scheme are held in an independently administered fund.

The total contributions paid in the year amount to £153,583 (2022: £162,029) and contributions of £31,201 (2022: £31,748) were outstanding at the year end.

The company is not committed to pay contributions as these are paid at the discretion of the company.

20. GUARANTEES AND OTHER FINANCIAL COMMITMENTS

The company had total guarantees and commitments at the year end of £666,021 (2022: £790,836) for property lease payments, see note 14 for detail.

MTEC WAREHOUSING LIMITED (REGISTERED NUMBER: 03986255)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

21. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31st December 2023 and 31st December 2022:

2023 2022
£    £   
D R Williams
Balance outstanding at start of year (121,375 ) (102,884 )
Amounts advanced 885,403 812,929
Amounts repaid (214,420 ) (831,420 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 549,608 (121,375 )

22. RELATED PARTY DISCLOSURES

MTEC BVBA
Common Director and Shareholder

During the year the company was charged £48,864 (2022: £36,682) by MTEC BVBA for storage.
An intercompany balance exists at the year end whereby £544,419 (2022: £541,824) is owed to the company by MTEC BVBA
Included in Trade Creditors is £3,065 (2022: £40,711) owed by the company to MTEC BVBA.

MTEC Italia SRL
Common Director and Shareholder

During the year the company was charged £97,558 (2022: £24,916) by MTEC Italia SRL for storage
An intercompany balance exists at the year end whereby £nil (2022: £nil) is owed to the company by MTEC Italia SRL
Included in Trade creditors is £22,056 (2022: £36,682) owed by the company to MTEC Italia SRL

Royston 2013 Limited
Common Director and Shareholder

During the year the company was charged £200,000 (2022; £199,200) by Royston 2013 Limited for rent.
Included in Trade Creditors is £40,000 (2022: £20,000) owed by the company to Royston 2013 Limited.

Beningfield Limited
Included within administration expenses is the intercompany credit balance of £37,900 which has been written off in the 2023 accounts since Beningfield Ltd was dissolved in 2022 and the amount is not expected to be recovered..