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Registered number: 14495788









TOWER MINT HOLDINGS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
TOWER MINT HOLDINGS LIMITED
 
 
COMPANY INFORMATION


Directors
A G Barnes (appointed 21 November 2022)
E C Dawson (appointed 21 November 2022)
D P M Lewis (appointed 21 November 2022)
E R Lewis-Maklouf (appointed 21 November 2022)
L A Lewis-Maklouf (appointed 21 November 2022)
D A Mahony (appointed 21 November 2022)
M C Maklouf (appointed 21 November 2022)
R D Maklouf (appointed 21 November 2022)




Registered number
14495788



Registered office
Tower Mint Limited
1-21 Carew Street

London

SE5 9DF




Independent auditors
Barnes Roffe LLP
Chartered Accountants

Charles Lake House

Claire Causeway

Crossways Business Park

Dartford

Kent

DA2 6QA





 
TOWER MINT HOLDINGS LIMITED
 

CONTENTS



Page
Group strategic report
 
1
Directors' report
 
2 - 3
Independent auditors' report
 
4 - 7
Consolidated statement of comprehensive income
 
8
Consolidated balance sheet
 
9
Company balance sheet
 
10
Consolidated statement of changes in equity
 
11
Company statement of changes in equity
 
12
Consolidated statement of cash flows
 
13 - 14
Notes to the financial statements
 
15 - 30


 
TOWER MINT HOLDINGS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Business review
 
The Tower Mint group continued to wholesale commemorative and currency coins to a range of UK and overseas based customers through the trading subsidiary Tower Mint Ltd (TML). The business also runs a chocolate coin, and a stamps division.
Group turnover was £18,196,463 
(2022: £21,131,346) representing growth of -13.9% vs 2022. Profit before tax for the year was £1,318,187 (2022: £2,325,643, 11.01% of sales) being 7.24% of sales which was in line with expectations.

Principal risks and uncertainties
 
1. The commemorative coin industry is inextricably linked with both FX rates and precious metal price fluctuations.
2. The groups' key customers' business models are based on offering long term credit sales to its B2C customers whilst also holding significant volumes of stock which when combined results in a scarcity of cash availability. 
3. The price of alloys including precious metal is steadily increasing year-on-year, coupled with lengthening supplier lead times, means increasing demands on working capital resources.

Financial key performance indicators
 
The group primarily uses sales and profit before tax (net of unusual items) as a % of sales to measure business performance. GP Margin % is also used as an indicator of production efficiency from one period to another.
Royalty payments to country of Issue is also used as a performance measure year on year.


This report was approved by the board and signed on its behalf.



R D Maklouf
Director

Date: 18 July 2024

Page 1

 
TOWER MINT HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the group and of the profit or loss of the group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the group's financial statements and then apply them consistently;

make judgments 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 group 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 the group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £988,336 (2022 - £1,787,662).

Directors

The directors who served during the year were:

A G Barnes (appointed 21 November 2022)
E C Dawson (appointed 21 November 2022)
D P M Lewis (appointed 21 November 2022)
E R Lewis-Maklouf (appointed 21 November 2022)
L A Lewis-Maklouf (appointed 21 November 2022)
D A Mahony (appointed 21 November 2022)
M C Maklouf (appointed 21 November 2022)
R D Maklouf (appointed 21 November 2022)

Future developments

The group will continue to develop and grow with its existing customers whilst looking also to widen both its UK and non-UK customer base. The group is also looking to develop and expand its New Product Development (NPD) opportunities worldwide.

Page 2

 
TOWER MINT HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company and the group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the group since the year end.

Auditors

The auditorsBarnes Roffe LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





R D Maklouf
Director

Date: 18 July 2024

Page 3

 
TOWER MINT HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TOWER MINT HOLDINGS LIMITED
 

Opinion


We have audited the financial statements of Tower Mint Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 group's and of the parent company's affairs as at 31 December 2023 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Page 4

 
TOWER MINT HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TOWER MINT HOLDINGS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 Group 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 Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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.


Page 5

 
TOWER MINT HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TOWER MINT HOLDINGS LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 2, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.


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 an Auditors' 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 Group financial statements.


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:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with law and regulations, was as follows: 
• The engagement partner ensured that the engagement team collectively had the appropriate
  competence, capabilities and skills to identify or recognise non-compliance with applicable laws
  and regulations;
• We identified the laws and regulations applicable to the group through discussion with directors and    other management, and from our commercial knowledge and experience of the relevant sector;
• The specific laws and regulations which we considered may have a direct material effect on the financial   statements or the operations of the company, are as follows;
 o Companies Act 2006
 o FRS102
 o ISO standards
 o Health and Safety legislation
 o The Food Standards Agency
 o Employment legislation
 o Tax legislation 
• We assessed the extent of compliance with the laws and regulations identified above through making    enquiries of management and reviewing board minutes; 
• Laws and regulations were communicated within the audit team at the planning meeting, and during the    audit as any further laws and regulation were identified. The audit team remained alert to instances of    non-compliance throughout the audit; and 
We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur by: 
• Making enquires of management as to where they consider there was susceptibility to fraud and their    knowledge of actual suspected and alleged fraud; 
 
Page 6

 
TOWER MINT HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TOWER MINT HOLDINGS LIMITED (CONTINUED)


• Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and    regulations;
• Reviewing the financial statements and testing the disclosures against supporting documentation;
• Performing analytical procedures to identify any unusual or unexpected trends or anomalies;
• Inspecting and testing journal entries to identify unusual or unexpected transactions;
• Assessing whether judgement and assumptions made in determining significant accounting estimates,    including stock provisions, the useful economic life of tangible fixed assets and the recognition of forward
  contracts, were indicative of management bias; and
• Investigating the rationale behind significant transactions, or transactions that are unusual or outside the    company’s usual course of business.
The areas that we identified as being susceptible to misstatement through fraud were:
• Management bias in the estimates and judgements made;
• Management override of controls; and 
• Posting of unusual journals or transactions.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law 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. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditors' report.


Use of our report
 

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.






Mario Cientanni (Senior statutory auditor)
for and on behalf of
Barnes Roffe LLP
Chartered Accountants
Charles Lake House
Claire Causeway
Crossways Business Park
Dartford
Kent
DA2 6QA
 

12 August 2024
Page 7

 
TOWER MINT HOLDINGS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
18,196,463
21,131,346

Cost of sales
  
(14,100,721)
(16,172,384)

Gross profit
  
4,095,742
4,958,962

Administrative expenses
  
(2,745,602)
(2,609,717)

Operating profit
 5 
1,350,140
2,349,245

Income from fixed assets investments
  
15
14

Interest receivable and similar income
 9 
14,254
1,394

Interest payable and similar expenses
 10 
(46,222)
(25,010)

Profit before taxation
  
1,318,187
2,325,643

Tax on profit
 11 
(329,851)
(537,981)

Profit for the financial year
  
988,336
1,787,662

Profit for the year attributable to:
  

Owners of the parent company
  
988,336
1,787,662

  
988,336
1,787,662

There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 15 to 30 form part of these financial statements.

Page 8

 
TOWER MINT HOLDINGS LIMITED
REGISTERED NUMBER: 14495788

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
1,501,595
1,583,794

  
1,501,595
1,583,794

Current assets
  

Stocks
 15 
5,488,336
3,854,814

Debtors: amounts falling due within one year
 16 
2,830,771
5,008,780

Cash at bank and in hand
 17 
1,014,590
785,566

  
9,333,697
9,649,160

Creditors: amounts falling due within one year
 18 
(2,074,055)
(3,316,991)

Net current assets
  
 
 
7,259,642
 
 
6,332,169

Total assets less current liabilities
  
8,761,237
7,915,963

Creditors: amounts falling due after more than one year
 19 
(261,019)
(187,552)

Provisions for liabilities
  

Deferred taxation
 21 
(357,083)
(373,612)

Net assets
  
8,143,135
7,354,799


Capital and reserves
  

Called up share capital 
 22 
53,126
53,126

Share premium account
  
101,667
101,667

Capital redemption reserve
  
4,307
4,307

Profit and loss account
  
7,984,035
7,195,699

  
8,143,135
7,354,799


The financial statements were approved and authorised for issue by the board and were signed on its behalf
 by: 




R D Maklouf
Director

Date: 18 July 2024

The notes on pages 15 to 30 form part of these financial statements.

Page 9

 
TOWER MINT HOLDINGS LIMITED
REGISTERED NUMBER: 14495788

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 14 
53,126
53,126

  
53,126
53,126

  

Total assets less current liabilities
  
 
53,126
 
53,126

  

  

Net assets
  
53,126
53,126


Capital and reserves
  

Called up share capital 
 22 
53,126
53,126

Profit and loss account
  
-
-

  
53,126
53,126


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


R D Maklouf
Director

Date: 18 July 2024

The notes on pages 15 to 30 form part of these financial statements.

Page 10

 
TOWER MINT HOLDINGS LIMITED
 

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


Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£
£

At 1 January 2023
53,126
101,667
4,307
7,195,699
7,354,799



Profit for the year
-
-
-
988,336
988,336

Dividends
-
-
-
(200,000)
(200,000)


At 31 December 2023
53,126
101,667
4,307
7,984,035
8,143,135



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Share premium account
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£
£

At 1 January 2022
53,126
101,667
4,307
5,660,302
5,819,402



Profit for the year
-
-
-
1,787,662
1,787,662

Dividends
-
-
-
(252,265)
(252,265)


At 31 December 2022
53,126
101,667
4,307
7,195,699
7,354,799


The notes on pages 15 to 30 form part of these financial statements.

Page 11

 
TOWER MINT HOLDINGS LIMITED
 

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


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2023
53,126
-
53,126



Profit for the year
-
200,000
200,000

Dividends
-
(200,000)
(200,000)


At 31 December 2023
53,126
-
53,126



COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2022
53,126
-
53,126



Profit for the year
-
252,265
252,265

Dividends
-
(252,265)
(252,265)


At 31 December 2022
53,126
-
53,126


The notes on pages 15 to 30 form part of these financial statements.

Page 12

 
TOWER MINT HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
988,336
1,787,662

Adjustments for:

Depreciation of tangible assets
310,670
235,555

Loss on disposal of tangible assets
4,959
-

Interest paid
46,222
25,010

Interest received
(14,269)
(1,408)

Taxation charge
329,851
537,981

(Increase)/decrease in stocks
(1,633,522)
1,037,797

Decrease/(increase) in debtors
2,178,009
(1,072,016)

(Decrease) in creditors
(247,092)
(2,370,318)

Corporation tax (paid)
(405,000)
(453,165)

Net cash generated from operating activities

1,558,164
(272,902)


Cash flows from investing activities

Purchase of tangible fixed assets
(233,432)
(647,578)

Sale of tangible fixed assets
2
-

Interest received
12,344
1,394

HP interest paid
(25,166)
(10,234)

Dividends received
15
14

Net cash from investing activities

(246,237)
(656,404)
Page 13

 
TOWER MINT HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£



Cash flows from financing activities

New secured loans
-
907,096

Repayment of loans
(907,096)
-

(Repayment of)/new finance leases
45,249
(112,903)

Dividends paid
(200,000)
(252,265)

Interest paid
(21,056)
(14,776)

Net cash used in financing activities
(1,082,903)
527,152

Net increase/(decrease) in cash and cash equivalents
229,024
(402,154)

Cash and cash equivalents at beginning of year
785,566
1,187,720

Cash and cash equivalents at the end of year
1,014,590
785,566


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,014,590
785,566

1,014,590
785,566


The notes on pages 15 to 30 form part of these financial statements.

Page 14

 
TOWER MINT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Tower Mint Holdings Limited is a private company limited by shares and incorporated in England and Wales. The registered office of the company is Tower Mint Limited, 1-21 Carew street, London, England, SE5 9DF. The company's principal activity is that of a holding company.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires group management to exercise judgment in applying the group's accounting policies (see note 3).

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

  
2.2

Basis of consolidation

The consolidated financial statements present the results of the company and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the merger method as permitted under FRS102 following a group reconstruction. The use of merger accounting means book values, as opposed to fair values, are used. Furthermore there is no recognition of goodwill because there is no purchaser and no acquisition is deemed to have taken place as a result of the group restructuring.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the group has transferred the significant risks and rewards of ownership to the buyer;
the group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Page 15

 
TOWER MINT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Operating leases: the group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Borrowing costs

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

 
2.8

Pensions

Defined contribution pension plan

The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the group in independently administered funds.

Page 16

 
TOWER MINT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company and the group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.10

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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following bases:


Long-term leasehold property
-
over the life of the lease
Plant and machinery
-
15%
reducing balance
Other fixed assets
-
25%
straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant 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 profit or loss.

Page 17

 
TOWER MINT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.12

Stocks

Stocks are stated at the lower of cost and 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 stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.13

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 any impairment.

 
2.14

Cash and cash equivalents

Cash is 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.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the group's cash management.

 
2.15

Creditors

Short-term creditors are measured at the 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.

 
2.16

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.17

Financial instruments

The group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's Balance sheet when the group becomes party to the contractual provisions of the instrument.
Page 18

 
TOWER MINT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.17
Financial instruments (continued)


Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments is any contract that evidences a residual interest in the assets of the group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Page 19

 
TOWER MINT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.17
Financial instruments (continued)


Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

 
2.18

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the group's accounting policies, which are described in Note 2, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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.
The areas in the financial statements where these judgements and estimates have been made include the following:
1. The group utilises forward rate foreign currency contracts. The directors believe that any gains or losses arising when fulfilling these obligations cannot be measured reliably at the year end due to the volatile nature of the foreign exchange market and therefore this has not been recognised in the Statement of comprehensive income. The underlying assets and liabilities in respect of these contracts have not been separately recognised in these financial statements as the directors believe that they will be settled simultaneously.
2. The group makes key assumptions regarding the useful economic life of tangible fixed assets and this is further described in note 2.10 of accounting policies.
3. Stock valuation at the year end; the basis of this estimate is outlined and discussed within note 2.12.
There were no other key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements.

Page 20

 
TOWER MINT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

The whole of the turnover is attributable to the group's principal activity, being the wholesale of commemorative and currency coins.
A geographical analysis of turnover has not been provided as permitted by the Companies Act 2006.


5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Pension contributions
29,653
26,670

Exchange differences
26,451
60,010

Other operating lease rentals
120,000
75,000

Depreciation
310,670
235,555


6.


Auditors' remuneration

During the year, the group obtained the following services from the company's auditors:


2023
2022
£
£

Fees payable to the company's auditors for the audit of the consolidated and parent company's financial statements
15,450
14,700

Page 21

 
TOWER MINT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
2,288,604
2,286,562
-
-

Social security costs
238,119
241,316
-
-

Cost of defined contribution scheme
29,653
26,670
-
-

2,556,376
2,554,548
-
-


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Directors and key management
8
6
8
8



Mint Production
22
21
-
-



Dies
3
4
-
-



Chocolate
4
4
-
-



Sales and marketing
8
8
-
-



Administration
4
4
-
-

49
47
8
8


8.


Income from investments

2023
2022
£
£





Dividends received from unlisted investments
(15)
(14)

(15)
(14)


Page 22

 
TOWER MINT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Interest receivable

2023
2022
£
£


Other interest receivable
14,254
1,394

14,254
1,394


10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
21,056
14,776

Finance leases and hire purchase contracts
25,166
10,234

46,222
25,010


11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
346,380
339,622


Total current tax
346,380
339,622

Deferred tax


Origination and reversal of timing differences
(16,529)
198,359

Total deferred tax
(16,529)
198,359


Tax on profit
329,851
537,981
Page 23

 
TOWER MINT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,318,187
2,325,643


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
329,547
441,872

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
12,924
10,554

Capital allowances for year lower than/(in excess of) depreciation
25,697
(112,801)

Change in tax rates
(21,784)
-

Non-taxable income
(4)
(3)

Deferred tax movement
(16,529)
198,359

Total tax charge for the year
329,851
537,981


Factors that may affect future tax charges

There are no factors affecting future tax charges.


12.


Dividends

2023
2022
£
£


Dividends paid
200,000
252,265

200,000
252,265

Page 24

 
TOWER MINT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Tangible fixed assets

Group






Long-term leasehold property
Plant and machinery
Total

£
£
£



Cost or valuation


At 1 January 2023
569,794
3,299,688
3,869,482


Additions
67,532
165,900
233,432


Disposals
(258,810)
(658,417)
(917,227)



At 31 December 2023

378,516
2,807,171
3,185,687



Depreciation


At 1 January 2023
308,234
1,977,454
2,285,688


Charge for the year on owned assets
39,255
271,415
310,670


Disposals
(258,810)
(653,456)
(912,266)



At 31 December 2023

88,679
1,595,413
1,684,092



Net book value



At 31 December 2023
289,837
1,211,758
1,501,595



At 31 December 2022
261,560
1,322,234
1,583,794

The net book value of assets held under finance leases or hire purchase contracts, included above, is as follows:


2023
2022
£
£



Plant and machinery
798,914
431,370

798,914
431,370

Page 25

 
TOWER MINT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
53,126



At 31 December 2023
53,126





Subsidiary undertaking


The following was a subsidiary undertaking of the company:

Name

Registered office

Holding

Tower Mint Limited
Tower Heritage Estate, 1-21 Carew Street, London, SE5 9DF
100%


15.


Stocks

Group
Group
2023
2022
£
£

Raw material, finished goods and goods for resale
5,488,336
3,854,814

5,488,336
3,854,814


Page 26

 
TOWER MINT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Debtors

Group
Group
2023
2022
£
£


Trade debtors
2,535,081
4,564,009

Other debtors
95,576
220,494

Prepayments and accrued income
200,114
224,277

2,830,771
5,008,780



17.


Cash and cash equivalents

Group
Group
2023
2022
£
£

Cash at bank and in hand
1,014,590
785,566

1,014,590
785,566



18.


Creditors: Amounts falling due within one year

Group
Group
2023
2022
£
£

Bank loans
-
907,096

Trade creditors
286,467
347,494

Corporation tax
128,111
188,641

Other taxation and social security
120,070
608,911

Obligations under finance lease and hire purchase contracts
91,594
119,812

Other creditors
633,283
-

Accruals and deferred income
814,530
1,145,037

2,074,055
3,316,991


Page 27

 
TOWER MINT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Creditors: Amounts falling due after more than one year

Group
Group
2023
2022
£
£

Net obligations under finance leases and hire purchase contracts
261,019
187,552

261,019
187,552


Amounts due in relation to finance leases and hire purchase contracts amounting to £353,267 (2022: £307,363) are secured against the assets to which they relate.
Bank loans due within one year relate to trade finance loans outstanding at the year end amounting to nil 
(2022: £907,096) which are secured against the assets to which they relate.


20.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2023
2022
£
£

Within one year
91,594
119,812

Between 1-5 years
261,673
187,551

353,267
307,363


21.


Deferred taxation


Group



2023
2022


£

£






At beginning of year
373,612
175,253


Charged to profit or loss
(16,529)
198,359



At end of year
357,083
373,612

Page 28

 
TOWER MINT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
21.Deferred taxation (continued)







The provision for deferred taxation is made up as follows:

Group
Group
2023
2022
£
£

Accelerated capital allowances
357,083
373,612

357,083
373,612


22.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



77,328 A Ordinary shares of £0.05 each
3,866
3,866
638,540 B Ordinary shares of £0.05 each
31,927
31,927
77,327 C Ordinary shares of £0.05 each
3,866
3,866
41,999 D Ordinary shares of £0.05 each
2,100
2,100
149,990 E Ordinary shares of £0.05 each
7,500
7,500
77,327 F Ordinary shares of £0.05 each
3,867
3,867

53,126

53,126



23.


Contingent liabilities

The group enters into forward rate foreign currency contracts. At the year end the group had the obligation under four contracts to draw down €1,528,588 (2022: €1,024,452) by various dates in 2024. At 31 December 2023 there was a potential unrealised loss of £985 (2022: profit of £14,618).
The directors believe that any gains or losses arising when fulfilling these obligations cannot be measured reliably at the year end due to the volatile nature of the foreign exchange market and therefore this has not been recognised in the Statement of comprehensive income. Any loss or gain will be realised within the Statement of comprehensive income upon completion of the contract.
The underlying assets and liabilities have not been recognised in these financial statements on the basis that they will be settled simultaneously.

Page 29

 
TOWER MINT HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

24.


Pension commitments

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £29,653 (2022 - £26,670). Contributions totalling £Nil (2022 - £Nil) were payable to the fund at the balance sheet date and are included in creditors.


25.


Commitments under operating leases

At 31 December 2023 the group and the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Not later than 1 year
120,000
120,000

Later than 1 year and not later than 5 years
330,000
450,000

450,000
570,000

26.


Related party transactions

The group rents its property from M Maklouf a shareholder and close family member of two directors.
The annual rent paid during the year was £120,000
 (2022: £75,000).


27.


Controlling party

The ultimate controlling party is the Maklouf family.

 
Page 30