MIDAC UK LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
MIDAC UK LTD
COMPANY INFORMATION
Director
Mr F Girardi
Company number
07914089 (England and Wales)
Registered office
15 Radfords Field
Maesbury Road
Oswestry
Shropshire
SY10 8RA
Auditor
Ashworth Moulds
11 Nicholas Street
Burnley
Lancashire
BB11 2AL
Business address
15 Radfords Field
Maesbury Road
Oswestry
Shropshire
SY10 8RA
MIDAC UK LTD
CONTENTS
Page
Strategic report
1
Director's report
2
Independent auditor's report
3 - 6
Statement of income and retained earnings
7
Balance sheet
8
Notes to the financial statements
9 - 19
The following pages do not form part of the statutory financial statements:
Detailed trading and profit and loss account
Appendix
MIDAC UK LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The director presents the strategic report for the year ended 31 December 2023.

Review of the Business

The company is engaged in the sale and servicing of commercial batteries and chargers.

 

The director is of the view that the key performance indicators required for an understanding of the development, performance and position of the business are included within the audited financial statements.

 

The turnover for the year ended 31 December 2023 is higher than the turnover for the year ended 31 December 2022.

 

The company made a profit of £178,567 for the year ended 31 December 2023 compared with a loss of £2,068,047 reported for the year ended 31 December 2022.

 

Strategy and future outlook

 

Following the financial review carried out in the previous year, a comprehensive assessment of the company's strategic direction, activities, operating structures and processes has been undertaken and a number of actions and initiatives have been implemented in order to increase the company's activity, resource utilisation and efficiency.

 

Having returned to profitability for the year ending 31 December 2023, the director believes that the company will maintain profitability for the year ending 31 December 2024.

Principal risks and uncertainties

The management of the business and the execution of the company strategy are subject to a number of risks.

 

The principal risks and uncertainties facing the company are considered to be:

 

 

The director and senior management team monitors customer demand and activities closely, in order to match resources with demand and significant focus is placed on minimising bad debts. The company has put in place a system to ensure that cost increases passed on by their own suppliers are immediately passed on to their own customers. A comprehensive recruitment and training programme has been implemented to ensure it has sufficient staff resources to meet operational requirements and that all of its staff are trained to the highest health and safety standards at all times. The company does not use hedge accounting. An amount of liquid funds is held in both US dollars and Euros.

On behalf of the board

Mr F Girardi
Director
18 September 2024
MIDAC UK LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The director presents his annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of the sale and servicing of commercial batteries and chargers.

Results and dividends

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

No ordinary dividends were paid. The director does 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 was as follows:

Mr F Girardi
Mr I W Brazier
(Resigned 9 June 2023)
Auditor

Ashworth Moulds were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

On behalf of the board
Mr F Girardi
Director
18 September 2024
MIDAC UK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MIDAC UK LTD
- 3 -

Qualified opinion

We have audited the financial statements of Midac UK Ltd (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, the balance sheet 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, except for the possible effects on the corresponding figures of the matters described in the Basis for Qualified Opinion section of our report, the financial statements:

Basis for qualified opinion

We were appointed auditors of the company on 30 November 2022 and thus did not observe the counting of physical stocks at 31 December 2021. We were unable to satisfy ourselves by alternative means or other audit procedures concerning stock quantities held at 31 December 2021, which were included in the Balance Sheet at £2,316,203. Consequently, we were unable to determine whether there was any consequential effect on the reported loss for the year ended 31 December 2022. Our audit opinion on the financial statements for the year ended 31 December 2022 was modified accordingly.

 

Our opinion on the current period's financial statements is also modified because of the possible effect of this matter on the comparability of the current period's figures and the corresponding period's figures.

 

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 director's 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 director with respect to going concern are described in the relevant sections of this report.

MIDAC UK LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MIDAC UK LTD
- 4 -

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 director is 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.

 

As described in the Basis of Qualified Opinion section of our report, we were unable to satisfy ourselves concerning stock quantities held at 31 December 2021. We have concluded that where other information refers to stock balances or related amounts, such as cost of sales, for the corresponding period figures, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

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

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 director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

MIDAC UK LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MIDAC UK LTD
- 5 -

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

We addressed detecting material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, as follows:

Risks identified
Audit response
Risk of fraud through management bias and override of controls

 

 

 

 

Risk of irregularities and non-compliance with laws and regulations

 

 

MIDAC UK LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MIDAC UK LTD
- 6 -

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

 

A further description of our responsibilities for the audit of the financial statements is located 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.

Mark Holmes BA FCA
Senior Statutory Auditor
For and on behalf of Ashworth Moulds
18 September 2024
Chartered Accountants
Statutory Auditor
11 Nicholas Street
Burnley
Lancashire
BB11 2AL
MIDAC UK LTD
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
13,997,044
12,262,833
Cost of sales
(10,598,450)
(11,000,900)
Gross profit
3,398,594
1,261,933
Administrative expenses
(3,087,200)
(3,229,296)
Operating profit/(loss)
4
311,394
(1,967,363)
Interest payable and similar expenses
7
(132,827)
(100,684)
Profit/(loss) before taxation
178,567
(2,068,047)
Taxation
8
-
0
375,000
Profit/(loss) for the financial year
178,567
(1,693,047)
Retained earnings brought forward
(3,107,703)
(1,414,656)
Retained earnings carried forward
(2,929,136)
(3,107,703)
The notes on pages 9 - 19 form an integral part of these financial statements.

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

MIDAC UK LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
9
221,134
294,845
Tangible assets
10
426,123
651,493
647,257
946,338
Current assets
Stocks
11
3,642,823
2,388,755
Debtors falling due after more than one year
12
375,000
375,000
Debtors falling due within one year
12
6,068,390
5,640,210
Cash at bank and in hand
391,414
35,116
10,477,627
8,439,081
Creditors: amounts falling due within one year
13
(9,263,487)
(7,451,673)
Net current assets
1,214,140
987,408
Total assets less current liabilities
1,861,397
1,933,746
Creditors: amounts falling due after more than one year
14
(4,608,326)
(4,886,900)
Provisions for liabilities
Provisions
16
142,207
114,549
(142,207)
(114,549)
Net liabilities
(2,889,136)
(3,067,703)
Capital and reserves
Called up share capital
19
38,000
38,000
Capital redemption reserve
2,000
2,000
Profit and loss reserves
(2,929,136)
(3,107,703)
Total equity
(2,889,136)
(3,067,703)
The notes on pages 9 - 19 form an integral part of these financial statements.

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 18 September 2024 and are signed on its behalf by:
Mr F Girardi
Director
Company registration number 07914089 (England and Wales)
MIDAC UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
1
Accounting policies
Company information

Midac UK Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 15 Radfords Field, Maesbury Road, Oswestry, Shropshire, SY10 8RA.

1.1
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:

 

1.2
Going concern

The truedirector has reviewed his expectations of future trading performance and is satisfied that the company will be able to operate within the level of its facilities and those provided by the parent undertaking for the foreseeable future. After reviewing all areas of the business, together with the principal risks and uncertainties, and taking into account the provision of financial support from the parent company, the director is satisfied that the financial statements can continue to be prepared on a going concern basis.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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.

Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly labour rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

MIDAC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 10 -
1.4
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:

Software
20% straight line basis
1.5
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:

Plant and equipment
20% straight line basis
Fixtures and fittings
10% straight line basis
Computer equipment
20% straight line basis
Motor vehicles
20% 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.

1.6
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.

1.7
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.

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.

MIDAC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

A financial instrument is a contract giving rise to a financial asset (such as trade and other debtors, cash and bank balances) or a financial liability (such as trade and other creditors, bank and other loans, hire purchase and lease creditors) or an equity instrument (such as ordinary or preference shares).

 

Financial instruments are recognised in the company's balance sheet when the company becomes a party to the contractual provisions of the instrument.

 

All the company's financial instruments are basic financial instruments and are recognised at amortised cost using the effective interest method.

 

Amortised cost: the original transaction value, less amounts settled, less any adjustment for impairment.

 

Effective interest method: where a financial instrument falls due more than 12 months after the balance sheet date and is subject to a rate of interest which is below a market rate, the original transaction value is discounted using a market rate of interest to give the net present value of future cash flows.

Derecognition of financial assets

Financial assets cease to be recognised only when the contractual rights to the cash flows expire, or when substantially all the risks and rewards of ownership are transferred to another entity.

 

Financial liabilities cease to be recognised when and only when the company's obligations are discharged, cancelled, or they expire.

1.9
Taxation

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

Current tax

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.

 

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 reserves, in which case the deferred tax is also dealt with in reserves.

MIDAC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.10
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.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.12
Retirement benefits

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

1.13
Leases

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.

1.14
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.

MIDAC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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
Provisions

Stocks are valued at the lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment and inventory loss trends.

 

The company generally offers warranties for its products. Management estimates the related provision for future warranty claims based on historical warranty claim information, as well as evaluating recent trends that might suggest that past cost information may differ from future claims. The warranty provision included at the balance sheet date was £142,207 (2022: £114,549).

 

A deferred tax asset of £375,000 (2022: £375,000) has been recognised based upon the estimated utilisation of unrelieved tax losses being recovered against future taxable profits.

3
Turnover
2023
2022
£
£
Turnover analysed by geographical market
UK
11,803,548
9,498,715
Europe
2,188,566
2,669,471
Rest of the world
4,930
94,647
13,997,044
12,262,833
4
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(24,293)
35,734
Fees payable to the company's auditor for the audit of the company's financial statements
25,000
25,000
Depreciation of owned tangible fixed assets
201,053
156,569
Loss/(profit) on disposal of tangible fixed assets
4,510
(1,682)
Amortisation of intangible assets
73,711
73,711
Operating lease charges
303,525
307,783
MIDAC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
5
Employees

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

2023
2022
Number
Number
55
57

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,353,549
1,005,972
Social security costs
126,691
260,712
Pension costs
62,525
55,783
1,542,765
1,322,467

There is 1 (2022: 1) appointed director, not directly employed.

6
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
31,552
77,877
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
-
7
Other interest on financial liabilities
132,827
100,677
132,827
100,684
8
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
-
0
(375,000)
MIDAC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 15 -

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

2023
2022
£
£
Profit/(loss) before taxation
178,567
(2,068,047)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
33,928
(392,929)
Tax effect of expenses that are not deductible in determining taxable profit
11,788
6,183
Tax effect of utilisation of tax losses not previously recognised
(105,205)
-
0
Unutilised tax losses carried forward
-
0
108,290
Permanent capital allowances in excess of depreciation
59,489
-
0
Other permanent differences
-
0
(6,544)
Change in deferred tax rate
-
0
(90,000)
Taxation charge/(credit) for the year
-
(375,000)
9
Intangible fixed assets
Software
£
Cost
At 1 January 2023 and 31 December 2023
368,556
Amortisation and impairment
At 1 January 2023
73,711
Amortisation charged for the year
73,711
At 31 December 2023
147,422
Carrying amount
At 31 December 2023
221,134
At 31 December 2022
294,845
MIDAC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
10
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
962,187
260,735
29,821
24,040
1,276,783
Additions
50,776
-
0
-
0
14,950
65,726
Disposals
(421,152)
-
0
-
0
(9,790)
(430,942)
At 31 December 2023
591,811
260,735
29,821
29,200
911,567
Depreciation and impairment
At 1 January 2023
508,491
93,521
15,520
7,758
625,290
Depreciation charged in the year
164,220
26,073
5,328
5,432
201,053
Eliminated in respect of disposals
(337,769)
-
0
-
0
(3,130)
(340,899)
At 31 December 2023
334,942
119,594
20,848
10,060
485,444
Carrying amount
At 31 December 2023
256,869
141,141
8,973
19,140
426,123
At 31 December 2022
453,696
167,214
14,301
16,282
651,493
11
Stocks
2023
2022
£
£
Finished goods and goods for resale
3,642,823
2,388,755
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
5,981,300
5,461,360
Amounts owed by group undertakings
-
0
44,605
Other debtors
37,653
3,000
Prepayments and accrued income
49,437
131,245
6,068,390
5,640,210
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 17)
375,000
375,000
Total debtors
6,443,390
6,015,210
MIDAC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
13
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
512,514
441,443
Amounts owed to group undertakings
6,353,660
4,627,920
Taxation and social security
1,623,010
1,412,392
Accruals and deferred income
774,303
969,918
9,263,487
7,451,673
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Other borrowings
15
4,608,326
4,886,900
15
Loans and overdrafts
2023
2022
£
£
Loans from group undertakings
4,608,326
4,886,900
Payable after one year
4,608,326
4,886,900
16
Provisions for liabilities
2023
2022
£
£
Warranty provision
142,207
114,549
Movements on provisions:
£
At 1 January 2023
114,549
Additional provisions in the year
27,658
At 31 December 2023
142,207
MIDAC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
17
Deferred taxation

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

Assets
Assets
2023
2022
Balances:
£
£
Tax losses
375,000
375,000
There were no deferred tax movements in the year.

The deferred tax asset not provided relating to utilisation of tax losses against future expected profits and other timing differences amounts to £377,986 (2022: £431,156).

18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
62,525
55,783

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.

19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
38,000
38,000
38,000
38,000
20
Financial commitments, guarantees and contingent liabilities

The company is dealing with the UK Revenue authorities regarding an under / over declaration of taxation. The amount cannot be accurately quantified.

21
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
197,408
228,526
Between two and five years
463,835
575,509
In over five years
-
0
91,250
661,243
895,285
MIDAC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
22
Related party transactions
Transactions with related parties

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

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Midac S.p.A.
44,926
44,864
8,739,865
7,261,154
Midac Netherlands
-
-
121,310
103,089
Midac France
-
-
-
10,482
Midac Sweden
-
-
-
2,008

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
Midac S.p.A.
6,346,843
4,620,367
Midac Netherlands
6,817
7,553
6,353,660
4,627,920
2023
2022
Amounts due from related parties
£
£
Midac S.p.A.
-
44,864
Midac Netherlands
-
(259)
-
44,605
23
Ultimate controlling party

The company's immediate parent undertaking is Midac S.p.A., a company incorporated in Italy.

 

SAMA Srl is the ultimate parent undertaking and is also the parent of the largest and smallest group of which Midac UK Limited is a member and for which group financial statements are drawn up. Copies of these group financial statements are available from via Quarta Strada n. 7, 36071 Arzignano (Vicenza), Italy.

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