MACINTYRE CHOCOLATE SYSTEMS LIMITED
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
MHA
12 CARDEN PLACE
ABERDEEN
AB10 1UR
MACINTYRE CHOCOLATE SYSTEMS LIMITED
COMPANY INFORMATION
Directors
Joseph John Gorman
Armin Hardt
Secretary
Marc Couttie
Company number
SC055262
Registered office
Sir William Smith Road
Kirkton Industrial Estate
Arbroath
Angus
DD11 3RD
Auditor
MHA
12 Carden Place
Aberdeen
AB10 1UR
Bankers
Royal Bank of Scotland plc
Arbroath
Brothock Bridge
Arbroath
Solicitors
BTO Solicitors LLP
48 St Vincent Street
Glasgow
G2 5HS
MACINTYRE CHOCOLATE SYSTEMS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 32
MACINTYRE CHOCOLATE SYSTEMS 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

The directors are focused on designing and providing customers worldwide with specialised & innovative machinery, components and service of the highest standard and quality. We are pleased with the overall growth of 10% to £8.2M sales compared to £7.5M in 2022. Our pre-tax profits also increased to £472k compared to £415k in 2022.

Principal risks and uncertainties

The principal risks and uncertainties affecting the company relate to ongoing price inflation in the key inputs of labour, commodity materials and energy, combined with global market trends and competition from lower quality competitors. The key risks are managed through procurement contracts, frequent pricing reviews and an unfailing focus on the quality of our machinery and service.

Development and performance

We have developed a new product which will be known as the Fusion 6000 which has a combination of an RC6000Di & HC6000 (horizontal conche) and Particle Track Analyser. The Fusion 6000 will increase the company's ability to grow sales within a new customer base. The Fusion 6000 will offfer customers a compact design, highly flexible, extremely energy efficient, semi-continuous production and a lights out factory capability.

 

R&D is vital to our evolution. MacIntyre have an opportunity to excel with finding new application fields by entering a Knowledge Transfer Partnership with Abertay University in Dundee. As part of our 2025 strategy, MacIntyre have identified possible new application fields and market opportunities by upcycling waste products which will be explored through this partnership.

 

We go into 2024 with a record order book supported by existing and new customers.

Key performance indicators

The directors rely upon a number of financial and non-financial KPIs such as order book value, revenue, margin and several other QHSE metrics , for the period under review and forecast. These are all considered to be in line with expectations.

Other information and explanations

The business is also on a journey to become net zero by 2026 which has been enhanced with the significant addition of solar panels in 2023.

On behalf of the board

Armin Hardt
Director
18 September 2024
MACINTYRE CHOCOLATE SYSTEMS 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.

Principal activities

The principal activity of the company and group continued to be the design and manufacture of specialised machinery.

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 further dividend.

Directors

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

Joseph John Gorman
Armin Hardt
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 auditor of the company 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 auditor of the company 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
Armin Hardt
Director
18 September 2024
MACINTYRE CHOCOLATE SYSTEMS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

MACINTYRE CHOCOLATE SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MACINTYRE CHOCOLATE SYSTEMS LIMITED
- 4 -
Opinion

We have audited the financial statements of MacIntyre Chocolate Systems Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows 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 group and parent 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 group's and parent 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:

MACINTYRE CHOCOLATE SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MACINTYRE CHOCOLATE SYSTEMS LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 parent 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 parent 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.

We assessed the susceptibility of the company's financial statements to material misstatements and how fraud might occur, including through discussions with the directors, discussions with our audit team planning meeting updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements.

 

We identified laws and regulations that are of significant in the context of the company by discussions with directors, corresponding with external legal advisors and by updating our understanding of the sector in which the company operates. Laws and regulations of direct significance in the context of the company include UK GAAP, Companies Act 2006, export and import legislation and health and safety legislation as they relate to manufacturing premises. to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

MACINTYRE CHOCOLATE SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MACINTYRE CHOCOLATE SYSTEMS LIMITED
- 6 -

The procedures we designed and executed included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

 

A further description of our responsibilities for the financial statements is located on the FRC’s website at: 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.

William D Anderson BA CA
For and on behalf of MHA
Statutory Auditor
12 Carden Place
Aberdeen
AB10 1UR
18 September 2024
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership based in England and Wales (registered number OC312313).
MACINTYRE CHOCOLATE SYSTEMS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
8,202,620
7,455,203
Cost of sales
(4,825,570)
(4,623,452)
Gross profit
3,377,050
2,831,751
Distribution costs
(562,272)
(328,018)
Administrative expenses
(2,280,840)
(2,058,833)
Other operating income
31,401
35,425
Operating profit
4
565,339
480,325
Interest payable and similar expenses
8
(92,762)
(65,561)
Profit before taxation
472,577
414,764
Tax on profit
9
(116,550)
(65,606)
Profit for the financial year
356,027
349,158
Profit for the financial year is all attributable to the owners of the parent company.
MACINTYRE CHOCOLATE SYSTEMS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
£
£
Profit for the year
356,027
349,158
Other comprehensive income
-
-
Total comprehensive income for the year
356,027
349,158
Total comprehensive income for the year is all attributable to the owners of the parent company.
MACINTYRE CHOCOLATE SYSTEMS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
10
60,030
95,373
Tangible assets
11
2,785,875
2,643,428
2,845,905
2,738,801
Current assets
Stocks
14
2,220,248
1,828,516
Debtors
15
1,299,319
1,146,795
Cash at bank and in hand
37,956
5,321
3,557,523
2,980,632
Creditors: amounts falling due within one year
16
(3,599,969)
(3,330,085)
Net current liabilities
(42,446)
(349,453)
Total assets less current liabilities
2,803,459
2,389,348
Creditors: amounts falling due after more than one year
17
(36,275)
(36,619)
Provisions for liabilities
Deferred tax liability
19
379,966
321,538
(379,966)
(321,538)
Net assets
2,387,218
2,031,191
Capital and reserves
Called up share capital
22
500,000
500,000
Profit and loss reserves
1,887,218
1,531,191
Total equity
2,387,218
2,031,191

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

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:
18 September 2024
Armin  Hardt
Director
Company registration number SC055262 (Scotland)
MACINTYRE CHOCOLATE SYSTEMS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
10
60,030
95,373
Tangible assets
11
2,785,875
2,643,428
Investments
12
202,005
202,005
3,047,910
2,940,806
Current assets
Stocks
14
2,220,248
1,828,516
Debtors
15
1,207,346
1,146,795
Cash at bank and in hand
34,024
1,089
3,461,618
2,976,400
Creditors: amounts falling due within one year
16
(3,599,969)
(3,422,058)
Net current liabilities
(138,351)
(445,658)
Total assets less current liabilities
2,909,559
2,495,148
Creditors: amounts falling due after more than one year
17
(36,275)
(36,619)
Provisions for liabilities
Deferred tax liability
19
379,966
321,538
(379,966)
(321,538)
Net assets
2,493,318
2,136,991
Capital and reserves
Called up share capital
22
500,000
500,000
Profit and loss reserves
1,993,318
1,636,991
Total equity
2,493,318
2,136,991

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £356,327 (2022 - £343,323 profit).

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:
18 September 2024
Armin  Hardt
Director
Company registration number SC055262 (Scotland)
MACINTYRE CHOCOLATE SYSTEMS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
500,000
1,182,033
1,682,033
Year ended 31 December 2022:
Profit and total comprehensive income
-
349,158
349,158
Balance at 31 December 2022
500,000
1,531,191
2,031,191
Year ended 31 December 2023:
Profit and total comprehensive income
-
356,027
356,027
Balance at 31 December 2023
500,000
1,887,218
2,387,218
MACINTYRE CHOCOLATE SYSTEMS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
500,000
1,293,668
1,793,668
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
343,323
343,323
Balance at 31 December 2022
500,000
1,636,991
2,136,991
Year ended 31 December 2023:
Profit and total comprehensive income
-
356,327
356,327
Balance at 31 December 2023
500,000
1,993,318
2,493,318
MACINTYRE CHOCOLATE SYSTEMS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
232,026
1,583,378
Interest paid
(92,762)
(65,561)
Income taxes refunded/(paid)
129,753
(138,229)
Net cash inflow from operating activities
269,017
1,379,588
Investing activities
Purchase of intangible assets
-
(3,676)
Purchase of tangible fixed assets
(309,382)
(1,159,772)
Proceeds from disposal of tangible fixed assets
-
32,322
Net cash used in investing activities
(309,382)
(1,131,126)
Financing activities
Payment of finance leases obligations
(1,034)
23,232
Net cash (used in)/generated from financing activities
(1,034)
23,232
Net (decrease)/increase in cash and cash equivalents
(41,399)
271,694
Cash and cash equivalents at beginning of year
(951,271)
(1,222,965)
Cash and cash equivalents at end of year
(992,670)
(951,271)
Relating to:
Cash at bank and in hand
37,956
5,321
Bank overdrafts included in creditors payable within one year
(1,030,626)
(956,592)
MACINTYRE CHOCOLATE SYSTEMS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
202,326
1,546,858
Interest paid
(92,762)
(65,561)
Income taxes refunded/(paid)
129,753
(131,544)
Net cash inflow from operating activities
239,317
1,349,753
Investing activities
Purchase of intangible assets
-
0
(3,676)
Purchase of tangible fixed assets
(309,382)
(1,159,772)
Proceeds from disposal of tangible fixed assets
-
0
32,322
Dividends received
30,000
30,000
Net cash used in investing activities
(279,382)
(1,101,126)
Financing activities
Payment of finance leases obligations
(1,034)
23,232
Net cash (used in)/generated from financing activities
(1,034)
23,232
Net (decrease)/increase in cash and cash equivalents
(41,099)
271,859
Cash and cash equivalents at beginning of year
(955,503)
(1,227,362)
Cash and cash equivalents at end of year
(996,602)
(955,503)
Relating to:
Cash at bank and in hand
34,024
1,089
Bank overdrafts included in creditors payable within one year
(1,030,626)
(956,592)
MACINTYRE CHOCOLATE SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

MacIntyre Chocolate Systems Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office and place of business is Sir William Smith Road, Kirkton Industrial Estate, Arbroath, Angus, DD11 3RD .

 

The UK group consists of MacIntyre Chocolate Systems Limited and its subsidiary MacIntyre Systems Limited.

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.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company MacIntyre Chocolate Systems Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

MACINTYRE CHOCOLATE SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At 31 December 2023 the company had net assets of £2,493,318 (2022 - £2,136,991), net current liabilities of £138,351 (2022 - £445,658) and made a profit after tax of £356,327 (2022 - £343,323) for the year.

 

The company designs and manufactures specialised machinery primarily for use by the chocolate industry. Forecasts have been prepared for the period until December 2024, including a cash flow forecast, which demonstrate the company has sufficient liquidity for the required period of assessment. Additionally, the directors of the parent company have confirmed their support in writing for a period no less than 12 months from the date of approval of the financial statements.

 

Accordingly, the directors do not consider there to be a material uncertainty arising over the going concern basis of preparation of the financial statements.

1.5
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.

1.6
Research and development expenditure

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years.

 

If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

MACINTYRE CHOCOLATE SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
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:

Designs and drawings
50 years useful life
Software
5 years useful life
1.9
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:

Freehold property
2% straight line
Plant and machinery
2% straight line or 15% reducing balance
Motor vehicles
25% reducing balance

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 recognised in the profit and loss account.

1.10
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities 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.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

MACINTYRE CHOCOLATE SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.11
Impairment of fixed assets

At each reporting period end date, the group 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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.12
Stocks

Stocks are stated at the lower of cost and NRV 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 and work in progress to their present location and condition.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the statement of income and retained earnings.

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.

1.13
Cash and cash equivalents

Cash is presented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

MACINTYRE CHOCOLATE SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.14
Financial instruments

The group 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.

 

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

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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 group 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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

MACINTYRE CHOCOLATE SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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 group's contractual obligations expire or are discharged or cancelled.

1.15
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.16
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

MACINTYRE CHOCOLATE SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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 if, and only if, there is 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.

1.17
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.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.18
Retirement benefits

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense in the statement of income and retained earnings when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

1.19
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 leased 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.

MACINTYRE CHOCOLATE SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.20
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.21
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.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Intangible fixed assets

Determining whether there are indicators of impairment of the company's intangible assets. Factors taken into consideration in reaching such a decision include the expected future financial performance of the asset.

Tangible fixed assets

Determining whether there are indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the condition and expected future financial performance of the asset.

Stock and work in progress valuation

Stock and work in progress are carried out at the lower of cost and net realisable value. A provision is made for slow moving and older items which may not be fully recoverable.

Warranty claims

A provision is made in the financial statements which represents the directors' best estimate at the balance sheet date, of the financial impact on the company of potential warranty or performance claims.

3
Turnover and other revenue
MACINTYRE CHOCOLATE SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 23 -
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
87,982
159,272
Rest of Europe
3,283,527
2,448,110
Rest of the World
4,831,111
4,847,821
8,202,620
7,455,203
2023
2022
£
£
Other revenue
Grants received
1,401
-
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(33,905)
36,868
Government grants
(1,401)
-
Depreciation of owned tangible fixed assets
152,999
120,114
Loss/(profit) on disposal of tangible fixed assets
8,596
(13,662)
Amortisation of intangible assets
40,683
35,632
Operating lease charges
40,310
43,182
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
29,865
31,452
For other services
Taxation compliance services
17,530
4,500
MACINTYRE CHOCOLATE SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Administration
23
23
22
22
Manufacturing
30
29
30
29
Total
53
52
52
51

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,840,693
1,507,890
1,840,693
1,507,890
Social security costs
176,195
166,132
176,195
166,132
Pension costs
71,122
73,230
71,122
73,230
2,088,010
1,747,252
2,088,010
1,747,252
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
97,154
92,305
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
33,920
18,229
Other interest on financial liabilities
58,842
47,332
92,762
65,561
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
58,122
(132,621)
MACINTYRE CHOCOLATE SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
2023
2022
£
£
(Continued)
- 25 -
Deferred tax
Origination and reversal of timing differences
58,428
198,227
Total tax charge
116,550
65,606

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

2023
2022
£
£
Profit before taxation
472,577
414,764
Expected tax charge based on the standard rate of corporation tax in the UK of 23.40% (2022: 19.00%)
110,583
78,805
Tax effect of expenses that are not deductible in determining taxable profit
10,861
-
0
Tax effect of income not taxable in determining taxable profit
(7,020)
-
0
Gains not taxable
-
0
(6,808)
Adjustments in respect of prior years
-
0
5,722
Effect of change in corporation tax rate
845
-
Permanent capital allowances in excess of depreciation
1,281
-
0
Deferred tax adjustments in respect of prior years
-
0
(1,078)
Remeasurement of deferred tax for changes in tax rates
-
0
48,439
Fixed asset differences
-
0
(59,474)
Taxation charge
116,550
65,606
10
Intangible fixed assets
Group
Negative goodwill
Designs and drawings
Software
Total
£
£
£
£
Cost
At 1 January 2023
97,494
125,826
176,577
399,897
Transfers
-
0
-
0
31,902
31,902
At 31 December 2023
97,494
125,826
208,479
431,799
Amortisation and impairment
At 1 January 2023
97,494
89,614
117,416
304,524
Amortisation charged for the year
-
0
278
40,405
40,683
Transfers
-
0
-
0
26,562
26,562
At 31 December 2023
97,494
89,892
184,383
371,769
MACINTYRE CHOCOLATE SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Intangible fixed assets
(Continued)
- 26 -
Carrying amount
At 31 December 2023
-
0
35,934
24,096
60,030
At 31 December 2022
-
0
36,212
59,161
95,373
Company
Designs and drawings
Software
Total
£
£
£
Cost
At 1 January 2023
44,426
176,577
221,003
Transfers
-
0
31,902
31,902
At 31 December 2023
44,426
208,479
252,905
Amortisation and impairment
At 1 January 2023
8,214
117,416
125,630
Amortisation charged for the year
278
40,405
40,683
Transfers
-
0
26,562
26,562
At 31 December 2023
8,492
184,383
192,875
Carrying amount
At 31 December 2023
35,934
24,096
60,030
At 31 December 2022
36,212
59,161
95,373
MACINTYRE CHOCOLATE SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
11
Tangible fixed assets
Group
Freehold property
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
1,309,222
4,443,353
4,174
5,756,749
Additions
206,260
103,122
-
0
309,382
Disposals
-
0
(436,320)
-
0
(436,320)
Transfers
-
0
(31,902)
-
0
(31,902)
At 31 December 2023
1,515,482
4,078,253
4,174
5,597,909
Depreciation and impairment
At 1 January 2023
235,695
2,873,452
4,174
3,113,321
Depreciation charged in the year
29,099
123,900
-
0
152,999
Eliminated in respect of disposals
-
0
(427,724)
-
0
(427,724)
Transfers
-
0
(26,562)
-
0
(26,562)
At 31 December 2023
264,794
2,543,066
4,174
2,812,034
Carrying amount
At 31 December 2023
1,250,688
1,535,187
-
0
2,785,875
At 31 December 2022
1,073,527
1,569,901
-
0
2,643,428
Company
Freehold property
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
1,309,222
4,443,353
4,174
5,756,749
Additions
206,260
103,122
-
0
309,382
Disposals
-
0
(436,320)
-
0
(436,320)
Transfers
-
0
(31,902)
-
0
(31,902)
At 31 December 2023
1,515,482
4,078,253
4,174
5,597,909
Depreciation and impairment
At 1 January 2023
235,695
2,873,452
4,174
3,113,321
Depreciation charged in the year
29,099
123,900
-
0
152,999
Eliminated in respect of disposals
-
0
(427,724)
-
0
(427,724)
Transfers
-
0
(26,562)
-
0
(26,562)
At 31 December 2023
264,794
2,543,066
4,174
2,812,034
Carrying amount
At 31 December 2023
1,250,688
1,535,187
-
0
2,785,875
At 31 December 2022
1,073,527
1,569,901
-
0
2,643,428
MACINTYRE CHOCOLATE SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
202,005
202,005
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
202,005
Carrying amount
At 31 December 2023
202,005
At 31 December 2022
202,005
13
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
MacIntyre Systems Limited
Sir William Smith Road, Kirkton Industrial Estate, Arbroath, Angus, DD11 3RD
Ordinary
100.00

The subsidiary company is exempt from audit under section 479A of the Companies Act 2006

14
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
1,997,653
1,759,289
1,997,653
1,759,289
Work in progress
222,595
69,227
222,595
69,227
2,220,248
1,828,516
2,220,248
1,828,516
MACINTYRE CHOCOLATE SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
826,008
807,526
826,009
807,526
Corporation tax recoverable
-
0
132,055
-
0
132,055
Other debtors
440,835
124,886
348,861
124,886
Prepayments and accrued income
32,476
82,328
32,476
82,328
1,299,319
1,146,795
1,207,346
1,146,795
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
1,030,626
956,592
1,030,626
956,592
Obligations under finance leases
31,563
32,253
31,563
32,253
Trade creditors
639,645
985,723
639,645
985,723
Amounts owed to group undertakings
260,240
532,339
260,240
624,312
Corporation tax payable
55,820
-
0
55,820
-
0
Other taxation and social security
42,456
38,475
42,456
38,475
Government grants
20
166,301
154,818
166,301
154,818
Other creditors
5,411
-
0
5,411
-
0
Accruals and deferred income
1,367,907
629,885
1,367,907
629,885
3,599,969
3,330,085
3,599,969
3,422,058

The Royal Bank of Scotland plc holds a standard security over the premises at Sir William Road, Kirkton Industrial Estate, Arbroath together with a bond and floating charge over the whole assets of the company.

17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
36,275
36,619
36,275
36,619
18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank overdrafts
1,030,626
956,592
1,030,626
956,592
Payable within one year
1,030,626
956,592
1,030,626
956,592
MACINTYRE CHOCOLATE SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
19
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
379,966
383,961
Tax losses
-
(62,423)
379,966
321,538
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
379,966
383,961
Tax losses
-
(62,423)
379,966
321,538
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
321,538
321,538
Charge to profit or loss
58,428
58,428
Liability at 31 December 2023
379,966
379,966
20
Government grants
Group
Company
2023
2022
2023
2022
£
£
£
£
Arising from government grants
166,301
154,818
166,301
154,818

Deferred grant income represents funding received in respect of grant contribution towards capital expenditure. The grant income is deferred and subsequently amortised in line with the depreciation of the related tangible fixed assets.

MACINTYRE CHOCOLATE SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
71,122
73,230

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
500,000
500,000
500,000
500,000
23
Related party transactions

As a wholly owned subsidiary of PROBAT Werke Gimborn GmbH, the company has taken advantage of the exemption in section 33.1 of FRS 102 not to disclose transactions with wholly owned group companies.

24
Ultimate controlling party

The company's immediate parent is Hamburg-Dresdner Maschienfabrik GmbH. The ultimate controlling party is PROBAT Werke von Gimborn GmbH, a company registered in Germany.

 

The smallest and largest group in which the results of the company are consolidated is that headed by PROBAT Werke von Gimborn GmbH. Financial statements are available from Resser Str. 94, 46446 Emmerich am Rhein, Germany.

25
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
356,027
349,158
Adjustments for:
Taxation charged
116,550
65,606
Finance costs
92,762
65,561
Loss/(gain) on disposal of tangible fixed assets
8,596
(13,662)
Amortisation and impairment of intangible assets
40,683
35,632
Depreciation and impairment of tangible fixed assets
152,999
120,114
Movements in working capital:
Increase in stocks
(391,732)
(50,706)
(Increase)/decrease in debtors
(284,579)
242,435
Increase in creditors
129,237
615,162
Increase in deferred income
11,483
154,078
Cash generated from operations
232,026
1,583,378
MACINTYRE CHOCOLATE SYSTEMS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
26
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
356,327
343,323
Adjustments for:
Taxation charged
116,550
65,606
Finance costs
92,762
65,561
Investment income
(30,000)
(30,000)
Loss/(gain) on disposal of tangible fixed assets
8,596
(13,662)
Amortisation and impairment of intangible assets
40,683
35,632
Depreciation and impairment of tangible fixed assets
152,999
120,114
Movements in working capital:
Increase in stocks
(391,732)
(50,706)
(Increase)/decrease in debtors
(192,606)
149,777
Increase in creditors
37,264
707,135
Increase in deferred income
11,483
154,078
Cash generated from operations
202,326
1,546,858
27
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
5,321
32,635
37,956
Bank overdrafts
(956,592)
(74,034)
(1,030,626)
(951,271)
(41,399)
(992,670)
Obligations under finance leases
(68,872)
1,034
(67,838)
(1,020,143)
(40,365)
(1,060,508)
28
Analysis of changes in net debt - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,089
32,935
34,024
Bank overdrafts
(956,592)
(74,034)
(1,030,626)
(955,503)
(41,099)
(996,602)
Obligations under finance leases
(68,872)
1,034
(67,838)
(1,024,375)
(40,065)
(1,064,440)
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