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Registered number: 1138730









METTEX ELECTRIC COMPANY LIMITED








ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

 
METTEX ELECTRIC COMPANY LIMITED
 
 
COMPANY INFORMATION


Directors
Mrs T S Tipper 
K Ridley 
S Tipper 




Company secretary
Mrs T S Tipper



Registered number
1138730



Registered office
Thorpe Way

Banbury

Oxfordshire

OX16 4SP




Independent auditors
KBDR Ltd

The Old Tannery

Hensington Road

Woodstock

Oxfordshire

OX20 1JL





 
METTEX ELECTRIC COMPANY LIMITED
 

CONTENTS



Page
Strategic report
1
Directors' report
2 - 3
Independent auditors' report
4 - 7
Statement of income and retained earnings
8
Balance sheet
9 - 10
Statement of changes in equity
11 - 12
Notes to the financial statements
13 - 25


 
METTEX ELECTRIC COMPANY LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024



Introduction
 
The results for the year and financial position of the company are shown in the attached financial statements. The directors are satisfied with the results for the year with the company continuing to trade profitably.

Business review
 
Mettex Electric Company Ltd is a manufacturer of flexible wire braid, strand and related value added products and services.

The directors and senior management play an important part in day to day operations and bring their extensive experience to each project.

The company benefits from high levels of repeat business and puts emphasis on developing relationships with its valued client base. As the company progresses and evolves, it continues to expand its customer base. As a result of a planned ongoing strategy of delivering high quality and effective solutions, continued investment in staff and delivering high quality products, the directors are optimistic for the company's future prospects and its ability to generate excellent levels of repeat and referral business.

Principal risks and uncertainties
 
The business faces no specific risks over the coming year but its marketplace is competitive and the company is exposed to general business risks and broader economic trends. Cash flow has been identified as a general risk that might affect the business, however, there are sufficient cash reserves and credit facilities available. Where risks are identified, actions are taken, wherever possible, to control them.

Financial key performance indicators
 
The key performance indicators defined by the company are turnover, trading profit and cash.

Other key performance indicators
 
There are no other key performance indicators defined.


This report was approved by the board on 8 August 2024 and signed on its behalf.



................................................
K Ridley
Director

Page 1

 
METTEX ELECTRIC COMPANY LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their report and the financial statements for the year ended 31 March 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 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 for the Company'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 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 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 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 £410,970 (2023 - £217,210).

Dividends of £63,800 were paid during the year (2023: £63,800)

Directors

The directors who served during the year were:

Mrs T S Tipper 
K Ridley 
S Tipper 

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'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's auditors are aware of that information.

Page 2

 
METTEX ELECTRIC COMPANY LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Post balance sheet events

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

Auditors

The auditorsKBDR Ltdwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 8 August 2024 and signed on its behalf.
 





................................................
K Ridley
Director

Page 3

 
METTEX ELECTRIC COMPANY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF METTEX ELECTRIC COMPANY LIMITED
 

Opinion


We have audited the financial statements of Mettex Electric Company Limited (the 'Company') for the year ended 31 March 2024, which comprise the Statement of income and retained earnings, the Balance sheet, the 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 Company's affairs as at 31 March 2024 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 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 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

 
METTEX ELECTRIC COMPANY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF METTEX ELECTRIC COMPANY 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 Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 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 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.


Page 5

 
METTEX ELECTRIC COMPANY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF METTEX ELECTRIC COMPANY LIMITED (CONTINUED)


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 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:

Discussions with and enquires of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements.  During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
- Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.
- Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include health and safety and factories legislation.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with law regulations) comprised of: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquires with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified.  However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed.  Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error.  As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).


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.


Page 6

 
METTEX ELECTRIC COMPANY LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF METTEX ELECTRIC COMPANY LIMITED (CONTINUED)





Lorraine Butler FCA (Senior statutory auditor)
  
for and on behalf of
KBDR Ltd
 
Statutory Registered Auditors
  
The Old Tannery
Hensington Road
Woodstock
Oxfordshire
OX20 1JL

8 August 2024
Page 7

 
METTEX ELECTRIC COMPANY LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£
£

  

Turnover
 3 
9,383,374
7,821,783

Cost of sales
  
(6,673,937)
(5,625,556)

Gross profit
  
2,709,437
2,196,227

Administrative expenses
  
(2,154,657)
(1,926,726)

Operating profit
  
554,780
269,501

Interest receivable and similar income
 7 
5,301
-

Profit before tax
  
560,081
269,501

Tax on profit
 8 
(149,111)
(52,291)

Profit after tax
  
410,970
217,210

  

  

Retained earnings at the beginning of the year
  
5,118,645
4,965,235

  
5,118,645
4,965,235

Profit for the year
  
410,970
217,210

Dividends declared and paid
  
(63,800)
(63,800)

Retained earnings at the end of the year
  
5,465,815
5,118,645
There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of income and retained earnings.

The notes on pages 13 to 25 form part of these financial statements.

Page 8

 
METTEX ELECTRIC COMPANY LIMITED
REGISTERED NUMBER: 1138730

BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 10 
2,447,406
2,473,551

  
2,447,406
2,473,551

Current assets
  

Stocks
 11 
870,348
1,085,206

Debtors: amounts falling due within one year
 12 
1,825,739
1,237,781

Cash at bank and in hand
 13 
1,617,437
1,604,050

  
4,313,524
3,927,037

Creditors: amounts falling due within one year
 14 
(1,118,137)
(1,115,747)

Net current assets
  
 
 
3,195,387
 
 
2,811,290

Total assets less current liabilities
  
5,642,793
5,284,841

Provisions for liabilities
  

Deferred tax
 16 
(157,398)
(146,616)

  
 
 
(157,398)
 
 
(146,616)

Net assets
  
5,485,395
5,138,225


Capital and reserves
  

Called up share capital 
  
6,380
6,380

Share premium account
  
13,200
13,200

Profit and loss account
  
5,465,815
5,118,645

  
5,485,395
5,138,225


Page 9

 
METTEX ELECTRIC COMPANY LIMITED
REGISTERED NUMBER: 1138730
    
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 8 August 2024.




................................................
K Ridley
Director

The notes on pages 13 to 25 form part of these financial statements.

Page 10

 
METTEX ELECTRIC COMPANY LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


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

£
£
£
£

At 1 April 2023
6,380
13,200
5,118,645
5,138,225


Comprehensive income for the year

Profit for the year

-
-
410,970
410,970


Other comprehensive income for the year
-
-
-
-


Total comprehensive income for the year
-
-
410,970
410,970


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(63,800)
(63,800)


Total transactions with owners
-
-
(63,800)
(63,800)


At 31 March 2024
6,380
13,200
5,465,815
5,485,395


The notes on pages 13 to 25 form part of these financial statements.

Page 11

 
METTEX ELECTRIC COMPANY LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


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

£
£
£
£

At 1 April 2022
6,380
13,200
4,965,235
4,984,815


Comprehensive income for the year

Profit for the year

-
-
217,210
217,210


Other comprehensive income for the year
-
-
-
-


Total comprehensive income for the year
-
-
217,210
217,210


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(63,800)
(63,800)


Total transactions with owners
-
-
(63,800)
(63,800)


At 31 March 2023
6,380
13,200
5,118,645
5,138,225


The notes on pages 13 to 25 form part of these financial statements.

Page 12

 
METTEX ELECTRIC COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

Mettex Electric Company Limited, Company Registration 1138730 incorporated in England and Wales
Registered office address and principal place of business Thorpe Way, Banbury, Oxfordshire, OX16 4SP
The principal activity of the company continued to be that of the manufacture of flexible wire braid, strand and related value added products and services.

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 FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The following principal accounting policies have been applied:

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Page 13

 
METTEX ELECTRIC COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company 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 Company has transferred the significant risks and rewards of ownership to the buyer;
the Company 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 Company 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.

 
2.4

Interest income

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

 
2.5

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Company in independently administered funds.

Page 14

 
METTEX ELECTRIC COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.6

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 operates and generates 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; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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.

 
2.7

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 charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Freehold property
-
2%
straight line
Plant and equipment
-
15%
reducing balance
Motor vehicles
-
25%
straight line
Fixtures and fittings
-
15%
reducing balance

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 15

 
METTEX ELECTRIC COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.8

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.

 
2.9

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.

 
2.10

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.

 
2.11

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.

 
2.12

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.

 
2.13

Financial instruments

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

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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

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
Page 16

 
METTEX ELECTRIC COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.13
Financial instruments (continued)

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 Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

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 any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans 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 payments 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.
Page 17

 
METTEX ELECTRIC COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)


2.13
Financial instruments (continued)


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.

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.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

 
2.14

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.

Page 18

 
METTEX ELECTRIC COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

3.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Class 1
9,383,374
7,821,783

9,383,374
7,821,783


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
4,764,263
4,265,413

Rest of Europe
3,467,082
2,722,205

Rest of the World
1,152,029
834,165

9,383,374
7,821,783



4.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
3,500
3,200

5.


Employees

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


2024
2023
£
£

Wages and salaries
2,751,324
2,569,634

Social security costs
111,571
105,188

Cost of defined contribution scheme
70,526
69,333

2,933,421
2,744,155


The average monthly number of employees, including directors, during the year was 63 (2023 - 65).

Page 19

 
METTEX ELECTRIC COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

6.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
662,567
614,650

Company contributions to defined contribution pension schemes
34,393
34,943

696,960
649,593


During the year retirement benefits were accruing to no directors (2023 - NIL) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £331,580 (2023 - £346,483).


7.


Interest receivable

2024
2023
£
£


Other interest receivable
5,301
-

5,301
-


8.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
138,331
48,427


138,331
48,427


Total current tax
138,331
48,427

Deferred tax


Origination and reversal of timing differences
10,780
3,864

10,780
3,864


Taxation on profit on ordinary activities
149,111
52,291
Page 20

 
METTEX ELECTRIC COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
8.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%. The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
560,081
269,501


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 19 %)
138,181
51,205

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
52
3,018

Capital allowances for year less than/(in excess of) depreciation
98
(5,796)

Short term timing difference leading to an increase (decrease) in taxation
10,780
3,864

Total tax charge for the year
149,111
52,291


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


9.


Dividends

2024
2023
£
£


Ordinary Dividends paid
63,800
63,800

63,800
63,800

Page 21

 
METTEX ELECTRIC COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

10.


Other fixed assets





Freehold property
Plant & Machinery
Motor Vehicles
Fixtures & Fittings
Total

£
£
£
£
£



Cost or valuation


At 1 April 2023
2,105,424
1,895,068
142,752
292,645
4,435,889


Additions
-
58,177
133,714
20,594
212,485


Disposals
-
(287,103)
(90,154)
(156,510)
(533,767)



At 31 March 2024

2,105,424
1,666,142
186,312
156,729
4,114,607



Depreciation


At 1 April 2023
288,724
1,354,316
112,559
206,740
1,962,339


Charge for the year on owned assets
36,109
86,016
44,178
12,012
178,315


Disposals
-
(261,585)
(81,711)
(130,157)
(473,453)



At 31 March 2024

324,833
1,178,747
75,026
88,595
1,667,201



Net book value



At 31 March 2024
1,780,591
487,395
111,286
68,134
2,447,406




The net book value of land and buildings may be further analysed as follows:


2024
£

Freehold
1,780,591

1,780,591


Page 22

 
METTEX ELECTRIC COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

11.


Stocks

2024
2023
£
£

Raw materials and consumables
802,956
928,376

Work in progress (goods to be sold)
67,392
156,830

870,348
1,085,206



12.


Debtors

2024
2023
£
£


Trade debtors
1,674,182
1,220,345

Other debtors
85,747
-

Prepayments and accrued income
65,810
17,436

1,825,739
1,237,781



13.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
1,617,437
1,604,050

1,617,437
1,604,050



14.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
686,736
810,612

Corporation tax
138,331
48,427

Other taxation and social security
137,657
130,815

Other creditors
99,495
91,939

Accruals and deferred income
55,918
33,954

1,118,137
1,115,747


Page 23

 
METTEX ELECTRIC COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

15.


Financial instruments

2024
2023
£
£

Financial assets


Financial assets measured at fair value through profit or loss
1,617,437
1,604,052




Financial assets measured at fair value through profit or loss comprise; Cash at bank and in hand


16.


Deferred taxation




2024


£






At beginning of year
(146,618)


Charged to profit or loss
(10,780)



At end of year
(157,398)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(157,398)
(146,618)

(157,398)
(146,618)


17.


Pension commitments

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

Page 24

 
METTEX ELECTRIC COMPANY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

18.


Related party transactions

 At the year end, the company owed a balance on loan account due to the director. Details of the balance are disclosed below and included within:
Creditors: amounts falling due within one year. The amount is unsecured, interest free and carries no fixed date for repayment.
Dividends of £59,800  (2023: £59,800) were paid to the directors.


2024
2023
£
£

Mrs T S Tipper
72,359
83,024
72,359
83,024

 
Page 25