Company registration number 02363812 (England and Wales)
MOGUNTIA FOOD INGREDIENTS UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
MOGUNTIA FOOD INGREDIENTS UK LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 24
MOGUNTIA FOOD INGREDIENTS UK LIMITED
COMPANY INFORMATION
Directors
Mr P Yeates
Mr N Kent
Secretary
Mr D Ferguson
Company number
02363812
Registered office
Unit 1 Hetton Lyons Ind Est
Hetton Le Hole
Houghton Le Spring
Tyne and Wear
England
DH5 0RH
Auditor
Robson Laidler Accountants Limited
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
England
NE2 1TJ
Bankers
Natwest
250 Bishopsgate
London
EC2M 4AA
MOGUNTIA FOOD INGREDIENTS UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

2023 has been another successful year for the business. The company has experienced significant growth.

 

Our Marketing insights brought to life with our Innovative Product Development team have been instrumental in this growth, continuing to deliver 1st class service and keeping us at the forefront of our customers when new projects come on the horizon.

 

The impacts of the war in Ukraine, whilst easing is still an issue in the supply chain but the unprecedented cost increases in the previous year appear to have receded to a more manageable level.

 

The FX position also improved during the year which has given us a boost.

 

Overall, the directors are satisfied with the performance for the year and strongly believe in the strategy adopted. The directors believe the continued focus through strong marketing and innovation will allow the company to continue to grow in 2024 and beyond.

Principal risks and uncertainties

The company has an established, structured approach to risk management,

 

The company's activities expose it to a variety of financial risks, including effects of credit, liquidity and cash flows, and foreign currency risk. The company has adopted risk management policies that seek to mitigate these risks in a cost effective manner. Financial assets that expose the company to financial risk consist primarily of trade debtors and cash. Financial liabilities that expose the company to financial risk consist primarily of trade creditors, bank loans and inter company loan agreements.

 

Credit Risk

Credit risk is the loss in the value of financial assets due to counterparties failing to meet all or part of their obligations. The company performs ongoing credit evaluations of its customer's financial condition.

 

Liquidity Risk

Liquidity risk is the risk that the company does not have sufficient liquid assets to meet its obligations as they fall due. Liquidity is maintained at the prudent level and the company ensure there is adequate liquidity buffer to cover contingencies. The company maintains sufficient cash and credit lines from its bankers to meet its funding requirements.

On behalf of the board

Mr P Yeates
Director
29 February 2024
MOGUNTIA FOOD INGREDIENTS UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr P Yeates
Mr N Kent
Research and development

The company continue to invest in research and development relating to the blending of food ingredients and the impact of government policies on food standards.

Auditor

In accordance with the company's articles, a resolution proposing that Robson Laidler Accountants Limited be reappointed as auditor of the company will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

MOGUNTIA FOOD INGREDIENTS UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
On behalf of the board
Mr P Yeates
Director
29 February 2024
MOGUNTIA FOOD INGREDIENTS UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MOGUNTIA FOOD INGREDIENTS UK LIMITED
- 4 -
Opinion

We have audited the financial statements of Moguntia Food Ingredients UK Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

MOGUNTIA FOOD INGREDIENTS UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MOGUNTIA FOOD INGREDIENTS UK LIMITED
- 5 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

Auditor's 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 auditor's 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.

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

The risk of material misstatement due to error or fraud has been assessed in conjunction with how internal controls may mitigate any such risk. These controls are reviewed as part of the audit be performing systems walkthroughs to ensure they are operating effectively. Other substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's 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.

MOGUNTIA FOOD INGREDIENTS UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MOGUNTIA FOOD INGREDIENTS UK LIMITED
- 6 -
Michael T Moran BA FCA
Senior Statutory Auditor
For and on behalf of Robson Laidler Accountants Limited
19 March 2024
Accountants
Statutory Auditor
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
England
NE2 1TJ
MOGUNTIA FOOD INGREDIENTS UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
28,470,372
22,923,908
Cost of sales
(19,348,885)
(15,481,016)
Gross profit
9,121,487
7,442,892
Distribution costs
(2,274,585)
(2,605,371)
Administrative expenses
(2,962,439)
(2,573,933)
Other operating (expenses)/income
(3,940,806)
19,875
Operating (loss)/profit
5
(56,343)
2,283,463
Interest receivable and similar income
8
113,729
-
0
Interest payable and similar expenses
9
(437,863)
(196,797)
Amounts written off investments
10
(171,596)
(1,641,596)
(Loss)/profit before taxation
(552,073)
445,070
Tax on (loss)/profit
11
(449,283)
(434,524)
(Loss)/profit for the financial year
(1,001,356)
10,546

The profit and loss account has been prepared on the basis that all operations are continuing operations.

MOGUNTIA FOOD INGREDIENTS UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
13
-
0
188,599
Tangible assets
14
2,482,023
2,731,760
Investments
15
686,511
858,106
3,168,534
3,778,465
Current assets
Stocks
17
2,480,614
2,454,544
Debtors
18
7,443,004
4,713,442
Cash at bank and in hand
62,686
26,593
9,986,304
7,194,579
Creditors: amounts falling due within one year
19
(6,908,741)
(3,616,048)
Net current assets
3,077,563
3,578,531
Total assets less current liabilities
6,246,097
7,356,996
Creditors: amounts falling due after more than one year
20
(5,358,696)
(5,457,882)
Provisions for liabilities
Provisions
23
125,000
50,000
Deferred tax liability
24
367,573
452,930
(492,573)
(502,930)
Net assets
394,828
1,396,184
Capital and reserves
Called up share capital
26
1
1
Profit and loss reserves
394,827
1,396,183
Total equity
394,828
1,396,184

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 29 February 2024 and are signed on its behalf by:
Mr P Yeates
Director
Company registration number 02363812 (England and Wales)
MOGUNTIA FOOD INGREDIENTS UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
1
1,385,637
1,385,638
Year ended 31 December 2022:
Profit and total comprehensive income
-
10,546
10,546
Balance at 31 December 2022
1
1,396,183
1,396,184
Year ended 31 December 2023:
Loss and total comprehensive income
-
(1,001,356)
(1,001,356)
Balance at 31 December 2023
1
394,827
394,828
MOGUNTIA FOOD INGREDIENTS UK LIMITED
STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
1
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements
Estimation of useful life

The charge in respect of the periodic depreciation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. Increasing as asset's expected life or its residual value would result in a reduced depreciation charge in the profit and loss. The useful lives and residual values are determined by management at the time the asset is acquired and reviewed annual for appropriateness. The lives are based on historical experience with similar assets as well as anticipation of future events which may impact their life such as changes in technology.

 

Historically changes in useful lives and residual values have not resulted in material changes to the company's depreciation charge.

Provisions

The company exercises judgement in measuring and recognising provisions and the exposures to continent liabilities related to pending litigation or other outstanding claims subject to negotiated settlement, mediation, arbitration or government regulation, as well as other contingent liabilities. Judgement is necessary in assessing the likelihood that a pending claim will succeed, or a liability will arise, and to quantify the possible range of the financial settlement. Because of the inherent uncertainty in this evaluation process, actual losses may be different from the originally estimated provision.

MOGUNTIA FOOD INGREDIENTS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2
Accounting policies
Company information

Moguntia Food Ingredients UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 1 Hetton Lyons Ind Est, Hetton Le Hole, Houghton Le Spring, Tyne and Wear, England, DH5 0RH.

2.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

2.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

2.3
Turnover

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

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

MOGUNTIA FOOD INGREDIENTS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 12 -
2.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Customer lists
Evenly over its estimated useful life of 5 years
2.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
Between 5 and 10 years straight line
Plant and equipment
20% straight line basis
Motor vehicles
25% straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

2.6
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

2.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

MOGUNTIA FOOD INGREDIENTS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 13 -
2.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

2.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

2.10
Financial instruments
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

MOGUNTIA FOOD INGREDIENTS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 14 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

2.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

2.12
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

MOGUNTIA FOOD INGREDIENTS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Accounting policies
(Continued)
- 15 -
2.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

2.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sales of spice mixes
28,470,372
22,923,908
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
27,130,794
21,641,687
Europe
1,339,578
1,282,221
28,470,372
22,923,908
2023
2022
£
£
Other revenue
Interest income
113,729
-
MOGUNTIA FOOD INGREDIENTS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
4
Exceptional item
2023
2022
£
£
Income
Exceptional item - Other operating income
(4,100,000)
-

During the year an intercompany loan was written off totalling £4,100,000.

5
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(50,801)
327,595
Fees payable to the company's auditor for the audit of the company's financial statements
16,000
15,979
Depreciation of owned tangible fixed assets
924,837
805,969
Profit on disposal of tangible fixed assets
(60,450)
-
Amortisation of intangible assets
188,599
327,740
Profit on disposal of intangible assets
-
(233,019)
Operating lease charges
240,545
186,039
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Production
84
83
Sales / NPD / Distribution
29
28
Administrative
2
4
Management
-
3
Total
115
118

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,693,860
3,824,744
Social security costs
350,161
422,520
Pension costs
113,776
153,413
4,157,797
4,400,677
MOGUNTIA FOOD INGREDIENTS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
-
0
25,000
Company pension contributions to defined contribution schemes
-
6,056
-
0
31,056
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest receivable from group companies
113,729
-
0
9
Interest payable and similar expenses
2023
2022
£
£
Interest on invoice finance arrangements
158,854
12,597
Interest payable to group undertakings
279,009
184,200
437,863
196,797
10
Amounts written off investments
2023
2022
£
£
Other gains and losses
(171,596)
(1,641,596)
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
903,185
308,977
Adjustments in respect of prior periods
(368,545)
-
0
Total current tax
534,640
308,977
Deferred tax
Origination and reversal of timing differences
(85,357)
125,547
Total tax charge
449,283
434,524
MOGUNTIA FOOD INGREDIENTS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Taxation
(Continued)
- 18 -

The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
(Loss)/profit before taxation
(552,073)
445,070
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
(129,848)
84,563
Tax effect of expenses that are not deductible in determining taxable profit
-
0
251,604
Tax effect of income not taxable in determining taxable profit
1,008,195
-
0
Gains not taxable
(14,218)
-
0
Permanent capital allowances in excess of depreciation
39,034
(27,190)
Under/(over) provided in prior years
(368,523)
-
0
Deferred tax
(85,357)
125,547
Taxation charge for the year
449,283
434,524
12
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Fixed asset investments
15
171,596
1,641,596
Recognised in:
Amounts written off investments
171,596
1,641,596

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

MOGUNTIA FOOD INGREDIENTS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
13
Intangible fixed assets
Customer lists
£
Cost
At 1 January 2023 and 31 December 2023
1,204,934
Amortisation and impairment
At 1 January 2023
1,016,335
Amortisation charged for the year
188,599
At 31 December 2023
1,204,934
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
188,599
14
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
1,358,627
5,271,099
382,277
7,012,003
Additions
-
0
580,534
94,566
675,100
Disposals
-
0
(29,768)
(109,084)
(138,852)
At 31 December 2023
1,358,627
5,821,865
367,759
7,548,251
Depreciation and impairment
At 1 January 2023
762,672
3,328,271
189,300
4,280,243
Depreciation charged in the year
101,503
735,052
88,282
924,837
Eliminated in respect of disposals
-
0
(29,768)
(109,084)
(138,852)
At 31 December 2023
864,175
4,033,555
168,498
5,066,228
Carrying amount
At 31 December 2023
494,452
1,788,310
199,261
2,482,023
At 31 December 2022
595,955
1,942,828
192,977
2,731,760
15
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
16
686,511
858,106
MOGUNTIA FOOD INGREDIENTS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Fixed asset investments
(Continued)
- 20 -
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 & 31 December 2023
858,106
Impairment
At 1 January 2023
-
Impairment losses
171,595
At 31 December 2023
171,595
Carrying amount
At 31 December 2023
686,511
At 31 December 2022
858,106
16
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
F K Solutions (UK) Limited
United Kingdom
Ordinary
100.00
17
Stocks
2023
2022
£
£
Finished goods and goods for resale
2,480,614
2,454,544
18
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
5,193,683
4,203,055
Corporation tax recoverable
59,568
-
0
Amounts owed by group undertakings
1,944,401
154,099
Other debtors
123,097
154,140
Prepayments and accrued income
122,255
202,148
7,443,004
4,713,442
MOGUNTIA FOOD INGREDIENTS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
19
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
22
11,260
-
0
Trade creditors
2,690,273
1,783,787
Corporation tax
-
0
308,977
Other taxation and social security
87,560
87,087
Other creditors
3,511,531
696,224
Accruals and deferred income
608,117
739,973
6,908,741
3,616,048

A factoring facility is in place for all trade debtor balances up to a maximum of £3.5m.

 

Included in creditors is a balance of £3,485,215 due to the factoring facility. The factoring facility is secured against the debts that it relates to.

20
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
22
50,779
-
0
Other borrowings
21
5,307,917
5,457,882
5,358,696
5,457,882
21
Loans and overdrafts
2023
2022
£
£
Loans from group undertakings
5,307,917
5,457,882
Payable after one year
5,307,917
5,457,882
22
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
11,260
-
0
In two to five years
50,779
-
0
62,039
-
0

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4.5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

MOGUNTIA FOOD INGREDIENTS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
23
Provisions for liabilities
2023
2022
£
£
Stock & other cost provisions
125,000
50,000
Movements on provisions:
Stock & other cost provisions
£
At 1 January 2023 and 31 December 2023
125,000

Stock and other cost provisions represent management's best estimate of charges yet to be incurred for stocks ordered on behalf of an associated company which have yet to be billed, and other uninvoiced costs. Provisions are also made for perishable stock due to shelf life.

24
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
367,573
452,930
2023
Movements in the year:
£
Liability at 1 January 2023
452,930
Credit to profit or loss
(85,357)
Liability at 31 December 2023
367,573

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

25
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
113,776
153,413

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

MOGUNTIA FOOD INGREDIENTS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
26
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
1
1
1
1
27
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
225,295
118,500

This company is named on a property lease with a fellow group company Moguntia Food Limited, although this company does not occupy the premises covered by the lease. If Moguntia Food Limited were unable to pay the lease commitments then this company would be required to pay an annual rent of £367,000 until 2031. The directors consider the likelihood of this occurring to be remote.

28
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
220,125
216,217
29
Related party transactions
Transactions with related parties

The company has taken advantage of the exemption contained within FRS 102 and has not disclosed transactions with wholly owned group companies. There are however, some transactions with non 100% subsidiaries within the group and other related companies. The companies concerned are LEU Leigenschaften GmbH & Co KG, HAYA International Trading OG, Londinium A & C LLP, Moguntia Food GmbH, Moguntia Werke Gewurzindustrie GmbH (Austria), and Moguntia Werke Gewurzindustrie GmbH (Germany). These transactions are aggregated below.

 

In addition to this included in the figures below are transactions and balances with Belle Baulk Associates Limited and MJY Security Systems Limited companies in which P Yeates is a common director.

 

During the year the company entered into the following transactions with related parties:

MOGUNTIA FOOD INGREDIENTS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
29
Related party transactions
(Continued)
- 24 -
Description of
Income
Payments
transaction
2023
2022
2023
2022
£
£
£
£
Other related parties
Loan interest
-
0
-
0
279,009
70,220
Other related parties
Management charges
-
0
-
0
1,081,501
945,832
Other related parties
Rent
-
0
-
0
225,298
118,500
Other related parties
Sales and purchases
127,676
179,913
1,153,005
1,840,652
Balances with related parties
Amounts owed by
Amounts owed to
related parties
related parties
2023
2022
2023
2022
£
£
£
£
Other related parties
7,458
153,860
5,298,916
5,446,229
30
Ultimate controlling party

The controlling party is Moguntia Schweiz AG.

 

The ultimate controlling party is Londinium A & C LLP.

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