REGISTERED NUMBER: 10811384 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
for |
Mottram Interiors Group Limited |
REGISTERED NUMBER: 10811384 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
for |
Mottram Interiors Group Limited |
Mottram Interiors Group Limited (Registered number: 10811384) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 8 |
Consolidated Profit and Loss Account | 12 |
Consolidated Other Comprehensive Income | 13 |
Consolidated Balance Sheet | 14 |
Company Balance Sheet | 15 |
Consolidated Statement of Changes in Equity | 16 |
Company Statement of Changes in Equity | 17 |
Consolidated Cash Flow Statement | 18 |
Notes to the Consolidated Financial Statements | 19 |
Mottram Interiors Group Limited |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
Ebenezer House |
Ryecroft |
Newcastle under Lyme |
Staffordshire |
ST5 2BE |
Mottram Interiors Group Limited (Registered number: 10811384) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
Financial overview |
The year 2023 has proved to be another difficult one and has seen the group continue to face a number of economic challenges with the effects of higher interest rates and inflationary pressures impacting on performance in the year. |
The difficult trading conditions are reflected in the turnover for the year being reduced, although the underlying performance of most contracts were within the expected range of returns |
The group continues to try to expand and diversify in a very difficult and competitive market. Cash management remains fundamental to the business and ensuring robust financial health gives the directors' confidence that the group retains the flexibility required in the current marketplace to ensure longer term profitable growth. |
Financial performance |
Financial performance for the year has been analysed as follows: |
Year to | Year to |
31 December | 31 December |
2023 | 2022 | Change |
Turnover | £28,538,171 | £34,954,136 | (£6,415,965 | ) |
(Loss)/Profit before tax | (£49,064 | ) | 609,783 | (£658.847 | ) |
Strategy |
Cash management remains fundamental to the business and ensuring robust financial health gives the directors confidence to make decisions which are appropriate for the development of the business for the medium to long term, without being pressured into short term targets. |
Turnover |
Given the difficult trading conditions the number of contracts won was down on the previous year and this resulted in a 18% decrease in turnover. |
Gross profit |
Despite the challenging trading conditions the group has seen its gross profit margin remains stable at 12% (2022: 12%). |
Operating costs |
The group continues to actively review its operating costs, the majority of which relate to administrative expenses, and to seek reductions where possible. |
Environmental policy |
The group's objective is to meet the Construction Industry's best practice. To achieve this, management seek to continuously develop the group's environmental policy and in assessing the performance of the group in this area, pay particular attention to lowering the carbon dioxide emissions of its vehicles and reducing the overall amount of waste generated whilst increasing the amount recycled. |
Mottram Interiors Group Limited (Registered number: 10811384) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and the execution of the group's strategy are subject to a number of risks. The key risks identified by the directors include: |
Business strategy development and implementation |
If the directors adopt the wrong business strategy or do not implement its strategies effectively, the business may suffer. The directors need to understand and properly manage strategic risk in order to deliver long term growth. |
Key personnel |
The success of the group depends in part on the continued service of its key management and workforce and on its ability to continue to attract, motivate and retain employees. The construction industry is very competitive and staff are frequently targeted by other companies for recruitment. |
Product quality and delivery |
The success of the group depends on providing a quality product and on time. Success also depends upon the ability to anticipate and respond to changing client preferences and trends, together with staying up to date with the latest building techniques. |
Suppliers and subcontractors |
The group depends on its supplier/subcontractor base to deliver products on time and to the quality which is expected. Failure to develop the supplier/subcontractor base may produce an over-reliance on particular providers and reduce the group's competitiveness when tendering for contracts. |
Health and safety |
The industry in which the group operates is subject to regulation. Failure to keep up to date with new legislation will mean that the company will be non-compliant and may result in litigation. It may also impact upon the group's ability to generate income, either through decreased sales, increased costs or a combination of both. |
Brexit |
As none of the group's operations were conducted within the EU it is considered that Brexit is not a significant risk to the business. |
Ukraine |
The directors continue to monitor the conflict in Ukraine but the group has no operations there nor does it source goods or services from it so it is not considered to pose a significant risk to the business s. |
CORPORATE RESTRUCTURE |
In November 2023 we successfully transitioned to an Employee Ownership Trust, which further recognises our greatest asset, our people, and the strategic direction we wanted to take the business. This will give the group substantial practical benefits long into the future with increased levels of employee engagement and commitment to improved business performance. This was a significant development to continue to build a successful future. |
Mottram Interiors Group Limited (Registered number: 10811384) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
Financial Instruments |
The company's principal financial instruments comprise bank balances, trade creditors and trade debtors. The main purpose of these instruments is to raise funds for the company's operations and to finance the company's operations. Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below: |
Liquidity risk |
This is the risk that the company will not be able to meet its financial obligations as they fall due. The company aims to manage liquidity by ensuring that it will always have sufficient resources to meet its liabilities when they fall due, under both normal and stress conditions, without incurring unacceptable losses or risking damage to the company's reputation. Liquidity is provided through cash balances. |
Credit risk |
The company's principal assets are trade debtors. Trade debtors are managed in respect of credit and cash flow risk by policies concerning credit offered to customers and the regular monitoring of amounts outstanding. All customers are monitored on an ongoing basis and any variance from agreed terms is immediately highlighted and reported to the board. |
Interest rate risk |
In respect of interest rate risk, the Company currently has no debt but does have interest-bearing assets. Interest-bearing assets include cash balances, all of which have interest rates applied at floating market rates. |
Inflation risk |
Inflation risk comes from entering into long term, fixed price contracts and reliance on the performance of the supply chain. This is mitigated through early and regular engagement with supply chain partners, completing financial due diligence ahead of orders been placed, regular monitoring and making cost provisions where necessary |
SUMMARY OF KEY PERFORMANCE INDICATORS |
The directors have monitored the progress of the overall group strategy and individual strategic elements by reference to certain financial and non-financial key performance indicators. |
2023 | 2022 |
Growth in sales | (18% | ) | 13% |
Return on capital employed | 0% | 28% |
Capital expenditure | £119,572 | £301,168 |
DEVELOPMENT AND PERFORMANCE |
The balance sheet on page 14 of the financial statements shows that the group's financial position at the year end, in both net assets and liquidity terms, has declined over the previous year. This has been partly due to the loss in the year but is mainly because of the current year's payment to the employee ownership trust of £605,500. |
Mottram Interiors Group Limited (Registered number: 10811384) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
FUTURE DEVELOPMENTS |
In 2024 we have seen an end to electoral uncertainty with a new government elected with a substantial majority and interest rates starting to reduce from their peak, both of which will hopefully benefit the group with customers giving the go ahead to new projects previously placed on hold or delayed and this is reflected in the turnover expectations for the latter part of 2024 and 2025. |
The group is in a good position financially to take advantage of any up turn in the demand for its services whilst at the same time it is committed to staying true to its declared intent to prioritise quality rather than quantity of workload. |
The board of directors therefore expect that the group will continue in operational existence for the foreseeable future (see note 2). |
ON BEHALF OF THE BOARD: |
Mottram Interiors Group Limited (Registered number: 10811384) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of a holding company and contractors to industry but specialising in the leisure industry and the financial sector. |
DIVIDENDS |
Dividends of £60,500 were paid during the year (2022: £66,000). The director does not recommend payment of a final dividend. |
FUTURE DEVELOPMENTS |
Future developments are as detailed in the strategic report on page 5. |
DIRECTORS |
Other changes in directors holding office are as follows: |
The directors shown below held office in subsidiary undertakings during the whole of the period from 1 January 2022 to the date of this report. |
Mr S T Holding |
Mr J T Barton |
Mr L M McKeever |
Other changes in directors holding office in subsidiary undertakings are as follows: |
Mr J R Dodds - appointed 3 November 2023 |
Mr M P Leyden - appointed 3 November 2023 |
Mr N A Poole - appointed 3 November 2023 |
FINANCIAL INSTRUMENTS |
Please see notes on financial risk management on page 4 as part of the Strategic report. |
POLITICAL DONATIONS AND EXPENDITURE |
The group made charitable donations during the year totalling £2,765 (2022: £4,836) all of which were in line with its corporate social responsibility policy. |
GOING CONCERN |
On reviewing the going concern basis for the group the directors looked at projected workload and in particular the level of secured turnover for the next 12 months adjusting for the effects of price increases and inflationary pressure. Cash flow projections demonstrate the ability to meet working capital requirements from reserves with a reasonable level of head room therefore allowing the financial statements to be prepared on a going concern basis. |
Mottram Interiors Group Limited (Registered number: 10811384) |
Report of the Directors |
for the Year Ended 31 December 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
Thompson Wright Limited, offer themselves for re-appointment as auditors in accordance with Section 487 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Mottram Interiors Group Limited |
Opinion |
We have audited the financial statements of Mottram Interiors Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Profit and Loss Account, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Financial Statements, including a summary of 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: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Mottram Interiors Group Limited |
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page seven, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' 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 a Report of the Auditors 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. 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: |
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: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the group and parent company through discussions with directors and other management, and from our commercial knowledge and experience of the construction industry; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group and parent company, including the Companies Act 2006, taxation legislation, data protection regulations, anti-bribery and corruption legislation, anti-slavery and employment legislation together with The Health and Safety at Work Act 1974 together with various other legislation designed to provide a safe working environment within the construction industry. |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
Report of the Independent Auditors to the Members of |
Mottram Interiors Group Limited |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We assessed the susceptibility of the group's and parent company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- reading the minutes of meetings of those charged with governance; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the group's and parent company's legal advisors. |
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 www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Mottram Interiors Group Limited |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
Ebenezer House |
Ryecroft |
Newcastle under Lyme |
Staffordshire |
ST5 2BE |
Mottram Interiors Group Limited (Registered number: 10811384) |
Consolidated Profit and Loss Account |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 28,538,171 | 34,954,136 |
Cost of sales | 25,247,528 | 30,880,077 |
GROSS PROFIT | 3,290,643 | 4,074,059 |
Administrative expenses | 3,372,334 | 3,477,458 |
OPERATING (LOSS)/PROFIT | 5 | (81,691 | ) | 596,601 |
Interest receivable and similar income | 32,710 | 16,778 |
(48,981 | ) | 613,379 |
Interest payable and similar expenses | 6 | 83 | 3,596 |
(LOSS)/PROFIT BEFORE TAXATION | (49,064 | ) | 609,783 |
Tax on (loss)/profit | 7 | 5,014 | 33,673 |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
(Loss)/profit attributable to: |
Owners of the parent | (54,078 | ) | 576,110 |
Mottram Interiors Group Limited (Registered number: 10811384) |
Consolidated Other Comprehensive Income |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | (54,078 | ) | 576,110 |
OTHER COMPREHENSIVE INCOME |
Employment ownership trust contribution | (605,500 | ) | - |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(605,500 |
) |
- |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(659,578 |
) |
576,110 |
Total comprehensive income attributable to: |
Owners of the parent | (659,578 | ) | 576,110 |
Mottram Interiors Group Limited (Registered number: 10811384) |
Consolidated Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 295,126 | 337,080 |
Investments | 11 | - | - |
295,126 | 337,080 |
CURRENT ASSETS |
Stocks | 12 | 395,684 | 1,202,023 |
Debtors | 13 | 3,670,417 | 5,822,334 |
Cash at bank and in hand | 2,036,266 | 3,668,057 |
6,102,367 | 10,692,414 |
CREDITORS |
Amounts falling due within one year | 14 | 4,727,168 | 8,639,048 |
NET CURRENT ASSETS | 1,375,199 | 2,053,366 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
1,670,325 |
2,390,446 |
PROVISIONS FOR LIABILITIES | 16 | 43,665 | 58,348 |
NET ASSETS | 1,626,660 | 2,332,098 |
CAPITAL AND RESERVES |
Called up share capital | 17 | 132 | 120 |
Share premium | 18 | 15,120 | 492 |
Retained earnings | 18 | 1,611,408 | 2,331,486 |
SHAREHOLDERS' FUNDS | 1,626,660 | 2,332,098 |
The financial statements were approved by the Board of Directors and authorised for issue on 23 September 2024 and were signed on its behalf by: |
Mr S T Holding - Director |
Mottram Interiors Group Limited (Registered number: 10811384) |
Company Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Share premium |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit/(loss) for the financial year |
274,416 |
(3,468 |
) |
The financial statements were approved by the Board of Directors and authorised for issue on |
Mottram Interiors Group Limited (Registered number: 10811384) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | 120 | 1,821,376 | 492 | 1,821,988 |
Changes in equity |
Dividends | - | (66,000 | ) | - | (66,000 | ) |
Total comprehensive income | - | 576,110 | - | 576,110 |
Balance at 31 December 2022 | 120 | 2,331,486 | 492 | 2,332,098 |
Changes in equity |
Issue of share capital | 12 | - | 14,628 | 14,640 |
Dividends | - | (60,500 | ) | - | (60,500 | ) |
Total comprehensive income | - | (659,578 | ) | - | (659,578 | ) |
Balance at 31 December 2023 | 132 | 1,611,408 | 15,120 | 1,626,660 |
Mottram Interiors Group Limited (Registered number: 10811384) |
Company Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 December 2022 |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 December 2023 |
Mottram Interiors Group Limited (Registered number: 10811384) |
Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 23 | (1,077,874 | ) | (309,026 | ) |
Interest paid | (83 | ) | (3,596 | ) |
Tax paid | 85,340 | 24,507 |
Net cash from operating activities | (992,617 | ) | (288,115 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (119,572 | ) | (301,168 | ) |
Sale of tangible fixed assets | 32,590 | 32,000 |
Interest received | 32,710 | 16,778 |
Net cash from investing activities | (54,272 | ) | (252,390 | ) |
Cash flows from financing activities |
Loan repayments in year | - | (180,555 | ) |
Amount introduced by directors | - | 22,370 |
Amount withdrawn by directors | (3,475 | ) | - |
Share issue | 12 | - |
Share premium | 14,628 | - |
Related parties | 69,933 | 20,607 |
Employee ownership trust contribution | (605,500 | ) | - |
Equity dividends paid | (60,500 | ) | (66,000 | ) |
Net cash from financing activities | (584,902 | ) | (203,578 | ) |
Decrease in cash and cash equivalents | (1,631,791 | ) | (744,083 | ) |
Cash and cash equivalents at beginning of year |
24 |
3,668,057 |
4,412,140 |
Cash and cash equivalents at end of year |
24 |
2,036,266 |
3,668,057 |
Mottram Interiors Group Limited (Registered number: 10811384) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Mottram Interiors Group Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements are prepared in sterling which is the functional currency of the group. |
Basis of consolidation |
The consolidated financial statements incorporate the financial statements of the company and its subsidiary undertakings. All intra-group transactions, balances, income and expenses are eliminated on consolidation. |
The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate. |
Acquisitions of subsidiaries are dealt with by the acquisition method of accounting. |
Group restructures are accounted for on the merger basis. |
Significant judgements and estimates |
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. |
Mottram Interiors Group Limited (Registered number: 10811384) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed below. |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
The group makes judgements and estimates concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. These judgements and estimates that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below: |
Critical judgements |
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements. |
Contract accounting |
The values recognised in relation to long term contracts that are in progress at the balance sheet date are based upon the proportion of work carried out on a contract by contract basis generally determined by a review of progress on site by a quantity surveyor which is reviewed periodically. Profit on these contracts is calculated on a prudent basis and reflects turnover and related costs as contract progresses. Profit is only recognised when the final outcome of each project can be assessed with reasonable certainty. Where a contract is likely to make a loss, full provision is made in the period in which the loss is foreseen. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover represents amounts receivable for goods and services provided in the normal course of business, net of trade discounts, VAT and other sales related taxes. |
Profit is recognised on long-term contracts, if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs to date bear to total expected costs for that contract. |
Mottram Interiors Group Limited (Registered number: 10811384) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Tangible fixed assets are stated at cost, net of depreciation and any provision for impairment. |
Impairment of fixed assets |
At each reporting 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 group 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) prior years. A reversal of an impairment loss is recognised immediately in profit or loss unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. |
Investments |
Fixed asset investments are shown at cost less provision for impairment. Current asset investments are stated at the lower of cost and net realisable value. |
Stocks and long term contracts |
Stocks and work in progress are stated at the lower of cost and net realisable value. Net realisable value is based on estimated selling price, less further costs expected to be incurred to completion and disposal. |
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 the profit or loss. Reversals of impairment losses are also recognised in the profit or loss. |
Amounts recoverable on long-term contracts, which are included in debtors, are stated at the net sales value of the work done less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account. Cumulative costs incurred net of amounts transferred to cost of sales, less provision for contingencies and anticipated future losses on contracts, are included as long-term contract balances in stock. |
Mottram Interiors Group Limited (Registered number: 10811384) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
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 statement of financial position when the group becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with 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, which include trade and other receivables 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 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 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. |
Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest. |
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 the suppliers. Accounts 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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Mottram Interiors Group Limited (Registered number: 10811384) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Leased assets |
Leases where substantially all of the risks and rewards of ownership are not transferred to the group are treated as operating leases. Leases are regarded as operating leases and the payments made under them are charged to the profit and loss account on a straight line basis over the term of the lease. |
Employee ownership trust |
Investments in the company's own shares which are held for the benefit of the beneficiaries of the Mottram Employee Ownership Trust are shown as a deduction from shareholder's funds. |
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 group is demonstrably committed to terminate the employment of an employee or to provide termination benefits. |
Going concern |
The group's business activities, together with the factors likely to affect its future development, performance and position, are set out in the Business Review on pages 2 to 5. |
The group meets its day-to-day working capital requirements from cash at bank. The level of cash held by the company is sufficient to fund expected requirements based on forecast and projections taking account of reasonable possible changes in trading performance. |
After making enquiries, the directors have reasonable expectation that the group has adequate resources to continue in operational existence for a period of at least twelve months and for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report. |
3. | TURNOVER |
The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 28,538,171 | 34,954,136 |
28,538,171 | 34,954,136 |
Mottram Interiors Group Limited (Registered number: 10811384) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,235,903 | 2,552,135 |
Social security costs | 259,221 | 311,663 |
Other pension costs | 229,286 | 243,660 |
2,724,410 | 3,107,458 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Office and management | 31 | 31 |
Site labour | 12 | 13 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 283,302 | 408,608 |
Directors' pension contributions to money purchase schemes | 62,441 | 48,716 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 6 | 3 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 98,919 | 148,480 |
Pension contributions to money purchase schemes | 13,542 | 13,570 |
On 3 November 2023 the Board decided that an option given to the highest paid director over 12 B ordinary shares of £1 each in the Company, granted pursuant to the rules of Mottram Interiors Group Limited EMI Share Option Plan 2019 could be exercised. The exercise price payable for the shares was £14,640. |
5. | OPERATING (LOSS)/PROFIT |
The operating loss (2022 - operating profit) is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 47,005 | 27,149 |
Other operating leases | 113,297 | 109,501 |
Depreciation - owned assets | 140,617 | 79,899 |
Profit on disposal of fixed assets | (11,681 | ) | (5,391 | ) |
Auditors' remuneration | 13,173 | 11,500 |
Foreign exchange differences | - | 1,526 |
Mottram Interiors Group Limited (Registered number: 10811384) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | - | 2,664 |
Other interest | 83 | 932 |
83 | 3,596 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 20,299 | 72,866 |
Adjustment prior year tax | (602 | ) | 2,488 |
Group loss relief | - | (2,489 | ) |
Research and development claim | - | (88,520 | ) |
Total current tax | 19,697 | (15,655 | ) |
Deferred tax | (14,683 | ) | 49,328 |
Tax on (loss)/profit | 5,014 | 33,673 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
(Loss)/profit before tax | (49,064 | ) | 609,783 |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 23.300 % (2022 - 19 %) |
(11,432 |
) |
115,859 |
Effects of: |
Expenses not deductible for tax purposes | 22,954 | 9,092 |
Capital allowances in excess of depreciation | - | (53,065 | ) |
Depreciation in excess of capital allowances | 8,412 | - |
Utilisation of tax losses | - | (2,185 | ) |
Adjustments to tax charge in respect of previous periods | (602 | ) | 2,488 |
Deferred tax movement | (14,683 | ) | 49,328 |
Research and development claim | - | (88,520 | ) |
Pension timing difference | 365 | 676 |
Total tax charge | 5,014 | 33,673 |
Mottram Interiors Group Limited (Registered number: 10811384) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
7. | TAXATION - continued |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Employment ownership trust contribution | (605,500 | ) | - | (605,500 | ) |
8. | INDIVIDUAL PROFIT AND LOSS ACCOUNT |
As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary A shares of £1 each |
Interim dividends paid |
during the year | 60,500 | 66,000 |
60,500 | 66,000 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2023 | 106,385 | 26,155 | 622,318 | 270,698 | 1,025,556 |
Additions | - | - | 102,899 | 16,673 | 119,572 |
Disposals | (62,865 | ) | (6,248 | ) | (255,073 | ) | (50,151 | ) | (374,337 | ) |
At 31 December 2023 | 43,520 | 19,907 | 470,144 | 237,220 | 770,791 |
DEPRECIATION |
At 1 January 2023 | 100,145 | 25,856 | 337,501 | 224,974 | 688,476 |
Charge for year | 1,559 | 73 | 121,468 | 17,517 | 140,617 |
Eliminated on disposal | (62,119 | ) | (6,207 | ) | (236,743 | ) | (48,359 | ) | (353,428 | ) |
At 31 December 2023 | 39,585 | 19,722 | 222,226 | 194,132 | 475,665 |
NET BOOK VALUE |
At 31 December 2023 | 3,935 | 185 | 247,918 | 43,088 | 295,126 |
At 31 December 2022 | 6,240 | 299 | 284,817 | 45,724 | 337,080 |
Mottram Interiors Group Limited (Registered number: 10811384) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
G.F. Holding (Contractors) Limited |
Registered office: St Andrew's Court, Lees Lane, Macclesfield, Cheshire SK10 4LJ |
Nature of business: Contractors to the building industry |
% |
Class of shares: | holding |
Ordinary | 100.00 |
G F Holding (Fit-Out) Ltd |
Registered office: St Andrew's Court, Lees Lane, Macclesfield, Cheshire SK10 4LJ |
Nature of business: Commercial fit-out contractors |
% |
Class of shares: | holding |
Ordinary | 100.00 |
12. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Raw materials | 5,325 | 5,325 |
Work-in-progress | 390,359 | 1,196,698 |
395,684 | 1,202,023 |
Mottram Interiors Group Limited (Registered number: 10811384) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 3,211,396 | 5,273,523 |
Amounts owed by group undertakings | - | - |
Amounts owed by related parties | 139,174 | 147,662 | - | - |
Other debtors | 16,488 | 4,956 |
Net pay control | 2,493 | - | - | - |
Other loans | 4,039 | 10,759 | - | - |
Directors' current accounts | 7,141 | 3,666 | - | - |
Corporation tax | 17,738 | 175,342 |
VAT | - | - |
Prepayments and accrued income | 271,948 | 206,426 |
3,670,417 | 5,822,334 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Payments on account | 413,389 | 204,634 |
Trade creditors | 2,819,053 | 6,138,658 |
Amounts owed to group undertakings | - | - |
Amounts owed to related parties | 140,538 | 79,093 | 138,298 | 75,233 |
Corporation tax | 20,299 | 72,866 |
Social security and other taxes | 188,230 | 163,675 |
VAT | 732,047 | 1,389,065 | - | - |
Pension costs | 37,127 | 35,558 | - | - |
Net pay control | 107,675 | 107,399 | - | - |
Accruals and deferred income | 268,810 | 448,100 |
4,727,168 | 8,639,048 |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year | 56,490 | - |
Between one and five years | 224,372 | 151,256 |
280,862 | 151,256 |
Mottram Interiors Group Limited (Registered number: 10811384) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
16. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 50,719 | 51,592 |
Other timing differences | (7,054 | ) | 6,756 |
43,665 | 58,348 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 58,348 |
Credit to Profit and Loss Account during year | (14,683 | ) |
Balance at 31 December 2023 | 43,665 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary A | £1 | - | 110 |
Ordinary B | £1 | - | 10 |
A Ordinary | £0.01 | 132 | - |
132 | 120 |
On 3 November 2023 the Board decided that an option over 12 B ordinary shares of £1 each in the company, granted pursuant to the rules of Mottram Interiors Group Limited EMI Share Option Plan 2019, could be exercised. The exercise price payable for the shares was £14,640. |
Subsequently on 3 November 2023 the 22 B ordinary shares of £1 each comprised in the issued share capital of the company was redesignated into 22 A ordinary shares of £1 each. Following the redesignation the 132 A ordinary shares of £1 each, comprising the entire issued share capital of the company, was subdivided into 13,200 A ordinary shares of £0.01 each. |
18. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2023 | 2,331,486 | 492 | 2,331,978 |
Deficit for the year | (54,078 | ) | - | (54,078 | ) |
Dividends | (60,500 | ) | - | (60,500 | ) |
Cash share issue | - | 14,628 | 14,628 |
Consideration paid in year | (605,500 | ) | - | (605,500 | ) |
At 31 December 2023 | 1,611,408 | 15,120 | 1,626,528 |
Mottram Interiors Group Limited (Registered number: 10811384) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
18. | RESERVES - continued |
19. | PENSION COMMITMENTS |
The group operates a defined contribution scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost represents contributions payable by the group to the fund and amounted to £229,286 (2022: £243,660). Contributions totalling £37,127 (2022: £35,558) were payable to the fund at 31 December 2023 and are included in creditors. |
20. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 December 2023 and 31 December 2022: |
2023 | 2022 |
£ | £ |
S T Holding |
Balance outstanding at start of year | 3,666 | 26,036 |
Amounts advanced | 3,068 | 4,037 |
Amounts repaid | - | (26,407 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 6,734 | 3,666 |
J T Barton |
Balance outstanding at start of year | - | - |
Amounts advanced | 407 | - |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 407 | - |
No interest has been charged on the above amounts outstanding and the amounts were repaid in the following year. |
21. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
In 2021 the company and group entered into a cross guarantee in relation to the borrowings of other group companies. |
Entities under control or significant influence of persons with significant control of the entity |
2023 | 2022 |
£ | £ |
Sales | 28,605 | 47,390 |
Purchases | 87,059 | 109,500 |
Amount due from related party | 137,276 | 146,483 |
Amount due to related party | 85,000 | 3,860 |
Mottram Interiors Group Limited (Registered number: 10811384) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
21. | RELATED PARTY DISCLOSURES - continued |
Key management personnel of the entity or its parent (in the aggregate) |
2023 | 2022 |
£ | £ |
Sales | 1,615 | 1,148 |
Amount due from related party | 7,141 | 3,666 |
Entities that provide key management personnel services to the entity |
2023 | 2022 |
£ | £ |
Sales | 4,724 | 2,315 |
Purchases | 53,280 | 55,580 |
Amount due from related party | 1,898 | 1,179 |
Amount due to related party | 55,538 | 75,233 |
During the year, a total of key management personnel compensation of £ 345,743 (2022 - £ 457,324 ) was paid. |
22. | ULTIMATE CONTROLLING PARTY |
On 3 November 2023 the company became employee owned when the entire share capital of the company was acquired by the Mottram Employee Ownership Trust. |
23. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
(Loss)/profit before taxation | (49,064 | ) | 609,783 |
Depreciation charges | 140,616 | 79,899 |
Profit on disposal of fixed assets | (11,681 | ) | (5,391 | ) |
Finance costs | 83 | 3,596 |
Finance income | (32,710 | ) | (16,778 | ) |
47,244 | 671,109 |
Decrease in stocks | 806,339 | 270,031 |
Decrease/(increase) in trade and other debtors | 1,982,934 | (2,752,558 | ) |
(Decrease)/increase in trade and other creditors | (3,914,391 | ) | 1,502,392 |
Cash generated from operations | (1,077,874 | ) | (309,026 | ) |
Mottram Interiors Group Limited (Registered number: 10811384) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
24. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31/12/23 | 1/1/23 |
£ | £ |
Cash and cash equivalents | 2,036,266 | 3,668,057 |
Year ended 31 December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 3,668,057 | 4,412,140 |
25. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/1/23 | Cash flow | At 31/12/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 3,668,057 | (1,631,791 | ) | 2,036,266 |
3,668,057 | (1,631,791 | ) | 2,036,266 |
Total | 3,668,057 | (1,631,791 | ) | 2,036,266 |