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REGISTERED NUMBER: SC244434 (Scotland)












UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

MERCHANT CITY DISTRIBUTORS LIMITED

MERCHANT CITY DISTRIBUTORS LIMITED (REGISTERED NUMBER: SC244434)

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










Page

Company Information 1

Balance Sheet 2

Statement of Changes in Equity 3

Notes to the Financial Statements 4


MERCHANT CITY DISTRIBUTORS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTOR: D Towill





REGISTERED OFFICE: 8 Glenfield Road
Kelvin Industrial Estate
East Kilbride
Glasgow
G75 0RA





REGISTERED NUMBER: SC244434 (Scotland)





ACCOUNTANTS: Donachie Chartered Accountants
2nd Floor
Templeton House
62 Templeton Street
Glasgow
G40 1DA

MERCHANT CITY DISTRIBUTORS LIMITED (REGISTERED NUMBER: SC244434)

BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 1,103,098 1,013,260

CURRENT ASSETS
Stocks 5 498,094 533,953
Debtors 6 1,011,056 930,403
Cash at bank and in hand 37,863 99,349
1,547,013 1,563,705
CREDITORS
Amounts falling due within one year 7 1,756,471 1,460,604
NET CURRENT (LIABILITIES)/ASSETS (209,458 ) 103,101
TOTAL ASSETS LESS CURRENT LIABILITIES 893,640 1,116,361

CREDITORS
Amounts falling due after more than one year 8 (431,729 ) (718,516 )

PROVISIONS FOR LIABILITIES 12 (8,020 ) -
NET ASSETS 453,891 397,845

CAPITAL AND RESERVES
Called up share capital 13 50,010 50,010
Fair value reserve 14 158,685 158,685
Retained earnings 14 245,196 189,150
SHAREHOLDERS' FUNDS 453,891 397,845

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2023 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 30 August 2024 and were signed by:



D Towill - Director


MERCHANT CITY DISTRIBUTORS LIMITED (REGISTERED NUMBER: SC244434)

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

Called up Fair
share Retained value Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 January 2022 50,010 380,756 - 430,766

Changes in equity
Profit for the year - 104,915 - 104,915
Other comprehensive income - (60,685 ) 158,685 98,000
Total comprehensive income - 44,230 158,685 202,915
Dividends - (235,836 ) - (235,836 )
Balance at 31 December 2022 50,010 189,150 158,685 397,845

Changes in equity
Profit for the year - 57,046 - 57,046
Total comprehensive income - 57,046 - 57,046
Dividends - (1,000 ) - (1,000 )
Balance at 31 December 2023 50,010 245,196 158,685 453,891

MERCHANT CITY DISTRIBUTORS LIMITED (REGISTERED NUMBER: SC244434)

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


1. STATUTORY INFORMATION

Merchant City Distributors Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill
Goodwill relates to the amount paid in connection with the acquisition of a business in 2003. Over the years goodwill was amortised at varying rates. Goodwill was revalued in 2018 with an amortisation period of a further 10 years.

In the prior year, the director has made an assessment of Goodwill and valued it at £nil.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - 2% Straight line
Plant and machinery - 33% on reducing balance
Fixtures and fittings - 25% Straight line
Motor vehicles - 25% reducing balance
Computer equipment - Straight line over 3 years

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

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

Current or deferred taxation assets and liabilities are not discounted.

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

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

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

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

MERCHANT CITY DISTRIBUTORS LIMITED (REGISTERED NUMBER: SC244434)

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


2. ACCOUNTING POLICIES - continued

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

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

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

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

Financial instruments
Financial instruments are classified and accounted for as financial assets, financial liabilities or equity instruments, according to the substance of the contractual arrangement.

Financial instruments which are assets are stated at cost less any provision for impairment. Financial liabilities are stated at principal capital amounts outstanding at the period end. Issue costs relating to financial liabilities are deducted from the outstanding balance and are amortised over the period to the due date for repayment of the financial liability.

An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. A financial liability is any contractual arrangement for an entity to deliver cash to the holder of the associated financial instrument.

Debtors and creditors that fall due within one year
Debtors and creditors that fall due within one year are recorded in the financial statements at undiscounted transaction (invoice) price. Debtors are reviewed for impairment at each reporting date and any impairments are recorded within the profit and loss and shown within administrative expenses.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 35 (2022 - 38 ) .

4. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and
property machinery fittings
£    £    £   
COST OR VALUATION
At 1 January 2023 1,000,000 33,450 135,645
Additions - 7,500 -
Disposals - (33,450 ) (57,832 )
At 31 December 2023 1,000,000 7,500 77,813
DEPRECIATION
At 1 January 2023 - 30,221 130,577
Charge for year 20,000 1,667 1,673
Eliminated on disposal - (30,221 ) (57,833 )
At 31 December 2023 20,000 1,667 74,417
NET BOOK VALUE
At 31 December 2023 980,000 5,833 3,396
At 31 December 2022 1,000,000 3,229 5,068

MERCHANT CITY DISTRIBUTORS LIMITED (REGISTERED NUMBER: SC244434)

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


4. TANGIBLE FIXED ASSETS - continued

Motor Computer
vehicles equipment Totals
£    £    £   
COST OR VALUATION
At 1 January 2023 - 163,294 1,332,389
Additions 124,292 551 132,343
Disposals - (150,463 ) (241,745 )
At 31 December 2023 124,292 13,382 1,222,987
DEPRECIATION
At 1 January 2023 - 158,331 319,129
Charge for year 11,583 4,354 39,277
Eliminated on disposal - (150,463 ) (238,517 )
At 31 December 2023 11,583 12,222 119,889
NET BOOK VALUE
At 31 December 2023 112,709 1,160 1,103,098
At 31 December 2022 - 4,963 1,013,260

Cost or valuation at 31 December 2023 is represented by:

Fixtures
Freehold Plant and and
property machinery fittings
£    £    £   
Valuation in 2018 (41,315 ) - 20,000
Valuation in 2022 200,000 - -
Cost 841,315 7,500 57,813
1,000,000 7,500 77,813

Motor Computer
vehicles equipment Totals
£    £    £   
Valuation in 2018 - - (21,315 )
Valuation in 2022 - - 200,000
Cost 124,292 13,382 1,044,302
124,292 13,382 1,222,987

If freehold land and buildings had not been revalued it would have been included at the following historical cost:

2023 2022
£    £   
Cost 841,315 841,315

Freehold land and buildings were valued on an open market basis by the director at the year end. An independent valuation was carried out by Shepherd Commercial on 17th March 2023.

MERCHANT CITY DISTRIBUTORS LIMITED (REGISTERED NUMBER: SC244434)

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


4. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST OR VALUATION
Additions 124,292
At 31 December 2023 124,292
DEPRECIATION
Charge for year 11,583
At 31 December 2023 11,583
NET BOOK VALUE
At 31 December 2023 112,709

5. STOCKS
2023 2022
£    £   
Stocks 498,094 533,953

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 749,293 623,821
Amounts owed by group undertakings 223,209 223,209
Prepayments 38,554 83,373
1,011,056 930,403

Trade debtors subject to invoice discounting at 31 December 2023 was £552,610 (2022 - £558,531).

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 9) 458,061 457,436
Hire purchase contracts (see note 10) 21,408 -
Trade creditors 1,128,171 872,709
Corporation tax 6,489 16,803
Social security and other taxes 39,239 16,473
VAT 86,795 51,075
Accruals and deferred income 16,308 46,108
1,756,471 1,460,604

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans (see note 9) 14,167 24,167
Hire purchase contracts (see note 10) 89,371 -
Trade creditors 328,191 694,349
431,729 718,516

MERCHANT CITY DISTRIBUTORS LIMITED (REGISTERED NUMBER: SC244434)

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


9. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 448,061 447,436
Bank loans 10,000 10,000
458,061 457,436

Amounts falling due between one and two years:
Bank loans - 1-2 years 14,167 20,000

Amounts falling due between two and five years:
Bank loans - 2-5 years - 4,167

10. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 21,408 -
Between one and five years 89,371 -
110,779 -

Non-cancellable operating leases
2023 2022
£    £   
Within one year 18,479 135,178
Between one and five years - 12,456
18,479 147,634

11. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Hire purchase contracts 110,779 -

12. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 8,020 -

MERCHANT CITY DISTRIBUTORS LIMITED (REGISTERED NUMBER: SC244434)

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


12. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Provided during year 8,020
Balance at 31 December 2023 8,020

13. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
500,100 Ordinary 10p 50,010 50,010

14. RESERVES
Fair
Retained value
earnings reserve Totals
£    £    £   

At 1 January 2023 189,150 158,685 347,835
Profit for the year 57,046 57,046
Dividends (1,000 ) (1,000 )
At 31 December 2023 245,196 158,685 403,881

15. ULTIMATE CONTROLLING PARTY

D Towill Is the ultimate controlling party by virtue of his 100% interest in the Parent Company, Merchant City Global Holdings Limited.