Company registration number 01090477 (England and Wales)
MASON PEARSON BROS. LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
MASON PEARSON BROS. LIMITED
COMPANY INFORMATION
Directors
M J Pearson
A J Jackson
M J Snyder
Secretary
A Kirkpatrick
Company number
01090477
Registered office
7 Easter Park
Ferry Lane South
Rainham
Essex
United Kingdom
RM13 9BP
Auditor
Grunberg & Co Limited
5 Technology Park
Colindeep Lane
Colindale
London
United Kingdom
NW9 6BX
MASON PEARSON BROS. LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
MASON PEARSON BROS. LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present their strategic report for the year ended 31 March 2024.

 

The financial year 2024 reflected some changes, with similar challenges. Our priority remains to protect the high quality of the product whilst maintaining relevant cost efficiencies.

 

Product quality and research into new materials and techniques remain of prime importance to the business.

 

Our healthy balance sheet keeps us in a positive position and enables us to take necessary steps to protect the profile of the business.

Review of Business

The company monitors progress with reference to a number of key performance indicators ("KPIs"). These KPIs include the following:

 

1. The company reports sales to be less than the previous year. This reflects our intention to streamline our customer profile.

 

2. Consequently, the gross profit margin shows a reduction. This is due to our decision to maintain staff levels despite a reduced production and sales target for the year.

Principal risks and uncertainties

The Board meets regularly and carefully monitors all aspects of the company’s position. This is enabled by timely and accurate management reports.

Key risks are currently identified as follows:

1. Financial risk management

The company’s financial instruments comprise cash at the bank. The main purpose is to provide working capital and the ability to invest in fixed assets for the business.

 

2. Foreign currency risk

The company is exposed to foreign currency fluctuations as most of the company's purchases are imported. This risk is minimized by purchasing raw materials in bulk and agreeing prices in GBP.

 

3. Competitive pressure risk

The company continues to offer luxury products, with an excellent reputation, at a competitive price to its customers.

 

4. Credit risk

Credit risk is monitored by the company. Default by customers remains a risk which is reduced by credit insurance cover and tight financial controls.

 

5. The interruption of the supply of raw materials

The company has identified key raw materials and holds enough supply of these to ensure that sufficient stock is available.

 

6. Covid-19

Whilst the effects of Covid 19 continues to decrease, the company remains mindful of the risks and remains prepared for a future outbreak.

MASON PEARSON BROS. LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Outlook

Brand protection resources, which have enhanced the protection of the product, are beginning to show the anticipated results. This will strengthen and hold our position in the market. Plans are in place to remain on this path.

 

We will continue to increase sales through our website.

 

Investment in fixed assets continues to be a priority and we expect to see the benefits of significant investment over the last two years bearing fruit in the near future.

 

We continue to keep a higher level of stock, which leaves us in a good position for the fulfillment of orders.

 

We believe the results for the year to 31 March 2025 will be satisfactory.

 

On behalf of the board

M J Pearson
Director
25 September 2024
MASON PEARSON BROS. LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company in the year under review was that of manufacturing hair brushes.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid.

Directors

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

M J Pearson
A J Jackson
M J Snyder

A J Jackson and M J Snyder served as non-executive directors.

Research and development

The company continues actively to look for and invest in various technological advances that will enhance, maintain and complement the current manufacturing process.

Statement of disclosure to auditor

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

Medium-sized companies exemption

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

On behalf of the board
M J Pearson
Director
25 September 2024
MASON PEARSON BROS. LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

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

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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

MASON PEARSON BROS. LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MASON PEARSON BROS. LIMITED
- 5 -
Opinion

We have audited the financial statements of Mason Pearson Bros. Limited (the 'company') for the year ended 31 March 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The directors are responsible for the other information. The other information comprises the information in the 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 our audit:

MASON PEARSON BROS. LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MASON PEARSON BROS. LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to a going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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.

 

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

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

 

- the nature of the industry and sector and whether the financial results of our client differed from the industry trends;

- the legal and regulatory framework that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements;

- the matters discussed among the audit engagement team during the planning process regarding how and where fraud might occur in the financial statement and any potential indicators of fraud.

 

Audit procedures performed included reviewing the financial statement disclosures and testing the supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; discussions with the directors' on their own assessment of the risks that irregularities may occur either as a result of fraud or error, their assessment of compliance with laws and regulations and whether they were aware of any instances of non-compliance, including any potential litigation or claims; performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; inspection of relevant legal correspondence and board minutes; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

MASON PEARSON BROS. LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MASON PEARSON BROS. LIMITED (CONTINUED)
- 7 -

As a result of our assessment, it is considered that there are no laws and regulations for which non-compliance may be fundamental to the operating aspects of the business. However, laws and regulations considered to have a direct effect on the financial statements included the UK Companies Act, Employment Laws, Tax and Pensions legislation and Health & Safety legislation.

 

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. There is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Herman Hang ACCA
Senior Statutory Auditor
For and on behalf of Grunberg & Co Limited
30 September 2024
Chartered Accountants
Statutory Auditor
5 Technology Park
Colindeep Lane
Colindale
London
United Kingdom
NW9 6BX
MASON PEARSON BROS. LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
5,181,312
6,015,866
Cost of sales
(2,857,805)
(3,142,709)
Gross profit
2,323,507
2,873,157
Administrative expenses
(2,219,061)
(1,964,533)
Other operating income
9,683
113,474
Operating profit
4
114,129
1,022,098
Interest receivable and similar income
7
213,929
81,900
Profit before taxation
328,058
1,103,998
Tax on profit
8
(94,922)
(180,168)
Profit for the financial year
233,136
923,830
MASON PEARSON BROS. LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,865,792
2,547,035
Investments
11
3
3
2,865,795
2,547,038
Current assets
Stocks
13
2,202,757
1,183,998
Debtors
14
695,381
525,654
Cash at bank and in hand
5,993,293
7,383,772
8,891,431
9,093,424
Creditors: amounts falling due within one year
15
(625,266)
(834,287)
Net current assets
8,266,165
8,259,137
Total assets less current liabilities
11,131,960
10,806,175
Provisions for liabilities
Deferred tax liability
16
575,454
482,805
(575,454)
(482,805)
Net assets
10,556,506
10,323,370
Capital and reserves
Called up share capital
18
23,632
23,632
Profit and loss reserves
10,532,874
10,299,738
Total equity
10,556,506
10,323,370

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 25 September 2024 and are signed on its behalf by:
M J Pearson
Director
Company registration number 01090477 (England and Wales)
MASON PEARSON BROS. LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
23,632
9,848,548
9,872,180
Year ended 31 March 2023:
Profit and total comprehensive income
-
923,830
923,830
Dividends
9
-
(472,640)
(472,640)
Balance at 31 March 2023
23,632
10,299,738
10,323,370
Year ended 31 March 2024:
Profit and total comprehensive income
-
233,136
233,136
Balance at 31 March 2024
23,632
10,532,874
10,556,506
MASON PEARSON BROS. LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
22
(903,148)
1,302,797
Income taxes paid
(65,315)
(387,224)
Net cash (outflow)/inflow from operating activities
(968,463)
915,573
Investing activities
Purchase of tangible fixed assets
(635,945)
(701,847)
Interest received
213,929
81,900
Net cash used in investing activities
(422,016)
(619,947)
Financing activities
Dividends paid
-
0
(472,640)
Net cash used in financing activities
-
(472,640)
Net decrease in cash and cash equivalents
(1,390,479)
(177,014)
Cash and cash equivalents at beginning of year
7,383,772
7,560,786
Cash and cash equivalents at end of year
5,993,293
7,383,772
MASON PEARSON BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information

Mason Pearson Bros. Limited is a private company limited by shares incorporated in England and Wales. The registered office is 7 Easter Park, Ferry Lane South, Rainham, Essex, United Kingdom, RM13 9BP.

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
Going concern

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

1.3
Turnover

Turnover represents net invoiced sales of goods, after deduction of value added tax and trade discounts. Turnover is recognised when the goods are dispatched to the customer. Ownership and rewards of goods transfers to the customer when payment is made in full.

1.4
Research and development expenditure

Expenditure on research and development is written off in the year in which it is incurred.

1.5
Tangible fixed assets

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

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

Leasehold land and buildings
4% on cost
Leasehold improvements
20% on cost
Plant and equipment
10% on reducing balance
Fixtures and fittings
20% on cost
Computers
33.33% on cost

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

1.6
Fixed asset investments

Interests in subsidiary undertakings 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.

MASON PEARSON BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -

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

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

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.

1.8
Stocks

Stocks are stated at the lower of cost, using the first in first out method, and selling price less costs to complete and sell. Specific valuation methods of the cost of the different classes of stock are as follows:

 

1. Raw materials

Cost of raw materials is calculated at the lower of cost less provision for obsolete stock.

 

2. Work in progress

Cost of work in progress is calculated at stage of completion per unit based on an appropriate proportion of fixed production overheads and the normal capacity of the production facilities,

 

3. Finished goods

Cost of finished goods is calculated on the lower of production costs less provision for obsolete stock. The cost of a unit of production is based on an appropriate proportion of fixed production overheads and the normal capacity of the production facilities.

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.

1.9
Cash and cash equivalents

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

MASON PEARSON BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.10
Financial instruments

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

 

Financial instruments are recognised in the company's statement of financial position when the company 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

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. 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 company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 company after deducting all of its liabilities.

MASON PEARSON BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities

Basic financial liabilities, including creditors and bank loans 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 company’s contractual obligations expire or are discharged or cancelled.

1.11
Taxation

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

Current tax

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

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

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

 

MASON PEARSON BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.12
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.

1.13
Retirement benefits

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

1.14
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

Other than valuation of stock which has been separately disclosed above, there are no material items in the financial

statements where these judgement and estimates have been made.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
5,181,312
6,015,866
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
1,067,464
1,736,470
Rest of World
4,113,848
4,279,396
5,181,312
6,015,866
MASON PEARSON BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Turnover and other revenue
(Continued)
- 17 -
2024
2023
£
£
Other revenue
Interest income
213,929
81,900
Business interruption claim
-
102,000
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(306)
-
0
Research and development costs
28,880
20,147
Fees payable to the company's auditor for the audit of the company's financial statements
39,700
30,000
Depreciation of owned tangible fixed assets
317,188
302,193
Operating lease charges
-
50,000

The prior year financial statements include an extraordinary item in other operating income. In 2023, £102,000 was received by the company for a business interruption claim made during the period. The claim was made for the loss of profit incurred by the company due to the impact of Covid-19.

5
Employees

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

2024
2023
Number
Number
Directors
3
3
Factory
74
68
Administration
7
7
Total
84
78

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,158,650
2,894,051
Social security costs
310,899
275,319
Pension costs
143,110
108,546
3,612,659
3,277,916
MASON PEARSON BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
347,520
337,777
Company pension contributions to defined contribution schemes
10,000
4,000
357,520
341,777

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023: 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
237,098
220,535

Other than the directors, there are 3 key management personnel.

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
213,929
81,900
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
213,929
81,900
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,604
64,554
Tax relating to prior year adjustments recognised in profit or loss
669
-
0
Total current tax
2,273
64,554
MASON PEARSON BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
8
Taxation
2024
2023
£
£
(Continued)
- 19 -
Deferred tax
Origination and reversal of timing differences
92,649
115,614
Total tax charge
94,922
180,168

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:

2024
2023
£
£
Profit before taxation
328,058
1,103,998
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2023: 19.00%)
62,331
209,760
Tax effect of expenses that are not deductible in determining taxable profit
1,395
(193)
Tax relating to prior year underprovision
669
-
0
Permanent capital allowances in excess of depreciation
(62,122)
(117,840)
Research and development enhanced deduction
-
0
(27,173)
Deferred tax on accelerated capital allowances
92,649
115,614
Taxation charge for the year
94,922
180,168

The Finance Bill 2021 enacted provisions to increase the main rate of corporation tax to 25% from the current rate of 19% from 1 April 2023. The current corporation tax rate of 25% has been considered for potential deferred tax purposes.

9
Dividends
2024
2023
£
£
Interim paid
-
0
472,640
MASON PEARSON BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
10
Tangible fixed assets
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
£
Cost
At 1 April 2023
1,296,020
112,869
3,517,443
135,394
166,536
5,228,262
Additions
-
0
-
0
635,514
-
0
431
635,945
At 31 March 2024
1,296,020
112,869
4,152,957
135,394
166,967
5,864,207
Depreciation and impairment
At 1 April 2023
725,760
112,589
1,552,688
126,410
163,780
2,681,227
Depreciation charged in the year
51,840
280
260,027
3,989
1,052
317,188
At 31 March 2024
777,600
112,869
1,812,715
130,399
164,832
2,998,415
Carrying amount
At 31 March 2024
518,420
-
0
2,340,242
4,995
2,135
2,865,792
At 31 March 2023
570,260
280
1,964,755
8,984
2,756
2,547,035
11
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
12
3
3
12
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Mason Pearson Brothers Limited
7 Easter Park, Ferry Lane South, Rainham, Essex, RM13 9BP
Dormant
Ordinary
100.00
Mason Pearson Limited
7 Easter Park, Ferry Lane South, Rainham, Essex, RM13 9BP
Dormant
Ordinary
100.00
MPHP Limited
7 Easter Park, Ferry Lane South, Rainham, Essex, RM13 9BP
Dormant
Ordinary
100.00
MASON PEARSON BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
13
Stocks
2024
2023
£
£
Raw materials and consumables
800,300
687,800
Work in progress
169,264
27,525
Finished goods and goods for resale
1,233,193
468,673
2,202,757
1,183,998

Stock recognised in cost of sales during the period as an expense was £2,276,240 (2023: £2,690,788).

An impairment loss of £82,350 (2023: £56,414) was recognised during the year in respect of slow-moving and obsolete stock.

14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
394,463
258,378
Other debtors
98,078
74,432
Prepayments and accrued income
202,840
192,844
695,381
525,654

During the year, no material impairment provisions have been made against any class of debtor.

15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
285,015
438,188
Corporation tax
1,604
64,646
Other taxation and social security
82,950
57,929
Other creditors
180,518
133,081
Accruals and deferred income
75,179
140,443
625,266
834,287
MASON PEARSON BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
16
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
575,454
482,805
2024
Movements in the year:
£
Liability at 1 April 2023
482,805
Charge to profit or loss
92,649
Liability at 31 March 2024
575,454
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
143,110
108,546

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

18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
21,268
21,268
21,268
21,268
Ordinary 'B' of £1 each
2,364
2,364
2,364
2,364
23,632
23,632
23,632
23,632

Called up share capital represents the nominal value of shares issued.

 

For each class of issued share capital, the shares rank equally in all respects. The directors may pay different dividends on each class of share.

MASON PEARSON BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
19
Operating lease commitments

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

2024
2023
£
£
Within one year
50,000
50,000
Between two and five years
200,000
200,000
In over five years
125,000
175,000
375,000
425,000
20
Ultimate controlling party

The ultimate controlling party is M J Pearson.

21
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
683,038
612,977
Other information

During the year, on normal commercial terms, rental costs of £50,000 (2023: £50,000) were charged to the company in respect of a property in which the executive director of the company has an interest.

MASON PEARSON BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
22
Cash (absorbed by)/generated from operations
2024
2023
£
£
Profit for the year after tax
233,136
923,830
Adjustments for:
Taxation charged
94,922
180,168
Investment income
(213,929)
(81,900)
Depreciation and impairment of tangible fixed assets
317,188
302,193
Movements in working capital:
Increase in stocks
(1,018,759)
(388,040)
(Increase)/decrease in debtors
(169,727)
78,392
(Decrease)/increase in creditors
(145,979)
288,154
Cash (absorbed by)/generated from operations
(903,148)
1,302,797
23
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
7,383,772
(1,390,479)
5,993,293
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