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COMPANY REGISTRATION NUMBER: 02515670
MIDDLEGATE (EUROPE) LIMITED
FILLETED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 December 2023
MIDDLEGATE (EUROPE) LIMITED
STATEMENT OF FINANCIAL POSITION
31 December 2023
2023
2022
Note
£
£
£
Fixed Assets
Intangible assets
6
96,232
Tangible assets
7
1,833,833
1,834,139
--------------
--------------
1,930,065
1,834,139
Current Assets
Stocks
15,000
15,000
Debtors
8
1,220,056
1,596,559
Cash at bank and in hand
147,992
306,227
--------------
--------------
1,383,048
1,917,786
Creditors: amounts falling due within one year
9
( 1,761,089)
( 2,330,966)
--------------
--------------
Net Current Liabilities
( 378,041)
( 413,180)
--------------
--------------
Total Assets Less Current Liabilities
1,552,024
1,420,959
Creditors: amounts falling due after more than one year
10
( 1,077,418)
( 617,548)
Provisions
( 89,600)
( 72,200)
--------------
--------------
Net Assets
385,006
731,211
--------------
--------------
MIDDLEGATE (EUROPE) LIMITED
STATEMENT OF FINANCIAL POSITION (continued)
31 December 2023
2023
2022
Note
£
£
£
Capital and Reserves
Called up share capital
1,000
1,000
Profit and loss account
384,006
730,211
-----------
-----------
Shareholder Funds
385,006
731,211
-----------
-----------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements were approved by the board of directors and authorised for issue on 9 May 2024 , and are signed on behalf of the board by:
Mr K Notman Director
Company registration number: 02515670
MIDDLEGATE (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2023
1. General Information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Marfleet Environmental Technology Park, Westgate Way, Hedon Road, Hull, East Yorkshire, HU9 5LW.
2. Statement of Compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting Policies
Basis of Preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.
Foreign Currency Policy
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Going Concern
At the year end, the balance sheet shows net current liabilities of £405,022. The directors have reviewed and concluded that there continues to be a sufficient level of financing in the company. The directors therefore consider that it is appropriate to prepare the accounts on the going concern basis.
Disclosure Exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Notman Enterprise Limited which can be obtained from the registered office. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company. (b) Disclosures in respect of financial instruments have not been presented. (c) No disclosure has been given for the aggregate remuneration of key management personnel.
Judgements and Key Sources of Estimation Uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Tangible fixed assets are stated at cost less depreciation and any impairments. Depreciation takes place over the estimated useful life down to the assessed residual value. The carrying amount of the fixed assets is tested as soon as changed conditions indicate that a need for impairment has arisen.
Revenue Recognition
The turnover shown in the profit and loss account represents the amount due (excluding VAT) for services provided during the period. Haulage and forwarding turnover is recognised at the time of shipping. Income from warehousing is recognised in the period to which it relates.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all material timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating Leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Intangible Assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Amortisation of intangible assets will commence when the asset is available for use. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Tangible Assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property
-
2-3% straight line
Short leasehold property
-
20% straight line
Machinery and equipment
-
15-25% straight line
Furniture and plant
-
15-33% straight line
Impairment of Fixed Assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Financial Instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Defined Contribution Plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Employee Numbers
The average number of persons employed by the company during the year amounted to 65 (2022: 60 ).
5. Tax on Profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
80,183
Adjustments in respect of prior periods
7,461
--------
---------
Total current tax
7,461
80,183
--------
---------
Deferred tax:
Origination and reversal of timing differences
17,400
35,380
---------
-----------
Tax on profit
24,861
115,563
---------
-----------
6. Intangible Assets
Bespoke software
£
Cost
Additions
96,232
---------
At 31 December 2023
96,232
---------
Amortisation
At 1 January 2023 and 31 December 2023
---------
Carrying amount
At 31 December 2023
96,232
---------
At 31 December 2022
---------
7. Tangible Assets
Freehold property
Short leasehold property
Machinery and equipment
Furniture and plant
Total
£
£
£
£
£
Cost
At 1 January 2023
1,847,877
33,196
399,823
693,626
2,974,522
Additions
116,633
116,633
--------------
---------
-----------
-----------
--------------
At 31 December 2023
1,847,877
33,196
516,456
693,626
3,091,155
--------------
---------
-----------
-----------
--------------
Depreciation
At 1 January 2023
241,471
29,186
265,237
604,489
1,140,383
Charge for the year
17,343
3,004
89,510
7,082
116,939
--------------
---------
-----------
-----------
--------------
At 31 December 2023
258,814
32,190
354,747
611,571
1,257,322
--------------
---------
-----------
-----------
--------------
Carrying amount
At 31 December 2023
1,589,063
1,006
161,709
82,055
1,833,833
--------------
---------
-----------
-----------
--------------
At 31 December 2022
1,606,406
4,010
134,586
89,137
1,834,139
--------------
---------
-----------
-----------
--------------
Included within freehold property cost is £9,020 for capitalised finance costs.
8. Debtors
2023
2022
£
£
Trade debtors
1,007,221
1,338,679
Amounts owed by group undertakings
16,367
17,344
Other debtors
196,468
240,536
--------------
--------------
1,220,056
1,596,559
--------------
--------------
Trade debtors have been given as security under a debtor finance agreement.
9. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
206,425
30,000
Trade creditors
494,548
728,196
Amounts owed to group undertakings
399,849
716,008
Corporation tax
72,242
Social security and other taxes
58,581
48,883
Other creditors
601,686
735,637
--------------
--------------
1,761,089
2,330,966
--------------
--------------
Bank borrowing is secured against fixed assets and a guarantee given by the parent company.
Included in creditors is an amount of £581,900 (2022-£687,363) due under a debtor finance arrangement. This amount is secured against the trade debtors.
10. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
42,500
72,500
Amounts owed to group undertakings
1,034,918
545,048
--------------
-----------
1,077,418
617,548
--------------
-----------
The bank loan is secured against fixed assets and a guarantee given by the parent company.
11. Operating Leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Not later than 1 year
660,580
296,674
Later than 1 year and not later than 5 years
8,542
176,156
-----------
-----------
669,122
472,830
-----------
-----------
12. Summary Audit Opinion
The auditor's report dated 1 August 2024 was unqualified .
The senior statutory auditor was Robert Anderson , for and on behalf of Streets Audit LLP .
13. Directors' Advances, Credits and Guarantees
There are no director advances or credits owed at the year end (2022: £Nil).
14. Controlling Party
The company is controlled by the director Mr K Notman by virtue of his controlling interest in the ultimate parent company. The immediate parent company is Middlegate Europe NV, a company registered in Belgium. The ultimate parent company is Notman Enterprise Limited, a company registered in England at Marfleet Environmental Technology Park, Westgate Way, Hedon Road, Hull. That company prepares consolidated group accounts.