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Registered number: 06479864










MASTEROAST HOLDINGS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
MASTEROAST HOLDINGS LIMITED
 
 
COMPANY INFORMATION


Directors
Mr L G Mills - Chairman 
Mrs Y E V Mills 
Mr A G Fawkes 
Mr M C Mills 




Company secretary
Mrs Y E V Mills



Registered number
06479864



Registered office
Plantation House
Newark Road

Peterborough

PE1 5UA




Independent auditors
MHA
Chartered Accountants & Statutory Auditors

1 The Forum

Minerva Business Park

Lynch Wood

Peterborough

PE2 6FT





 
MASTEROAST HOLDINGS LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 2
Directors' Report
 
3 - 5
Independent Auditors' Report
 
6 - 9
Consolidated Statement of Comprehensive Income
 
10
Consolidated Balance Sheet
 
11 - 12
Company Balance Sheet
 
13 - 14
Consolidated Statement of Changes in Equity
 
15
Company Statement of Changes in Equity
 
16
Consolidated Statement of Cash Flows
 
17 - 18
Consolidated Analysis of Net Debt
 
19
Notes to the Financial Statements
 
20 - 48


 
MASTEROAST HOLDINGS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report for the year ended 31 December 2023.
The principal activities of Masteroast Holdings Limited and its subsidaires ("the Group") during the year were those of coffee roasters, tea blenders. distribution and wholesalers.

Principal activities and business review
 
The principal activities of the Group during the year were those of coffee roasters, tea blenders and wholesalers.
A business review is provided in the Chairman's statement within the Directors' report.

Principal risks and uncertainties
 
The directors generate an annual budget which is monitored on a monthly basis. However the key risks to the Group remain that of the fluctuations in coffee bean prices and the US dollar exchange rate. Both of these can have a major impact on the margins made as well as giving rise to exchange rate variances. 
The Group constantly monitors the coffee price and exchange rates, and changes prices when it is considered commercial to do so.
The Group has various financial instruments including but not limited to the bank overdraft and loans, the main purpose of which is to raise finance for the Group's operations. In addition, the Group has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations. 
The Group's specific risks in connection with financial instruments are set out below;
i) Liquidity risk and cashflow risk
The Group manages its cash and borrowing requirements to optimise interest income and minimise expense, whilst ensuring that the Group has sufficient liquid resources to meet the operating needs of its business.
ii) Interest rate risk
The Group is exposed to cash flow interest rate risk on floating rate deposits, bank overdrafts and loans.
iii) Foreign currency risk
The Group is exposed to foreign currency risk and manages it by continual monitoring of the US dollar exchange rate.
iv) Credit risk
Investments of cash surpluses are made through banks and companies which must fulfil credit rating criteria approved by a director.
Receivable balances are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
v) Price risk
Wherever possible we look to pass on any increases in costs. Where suppliers give any advance notice of increases, we often bulk buy to secure lower prices. 

Page 1

 
MASTEROAST HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Financial key performance indicators
 
The directors consider the key performance indicators applicable to the Group to be production quantities, customer feedback and cash resources which are all measured on a regular basis. Furthermore the directors consider gross profit to be a financial key performance indicator which can be seen in the Group Statement of Comprehensive Income.

Future developments

Future developments are provided in the Chairman's statement within the Directors' report.


This report was approved by the board and signed on its behalf.



................................................
Mr L G Mills - Chairman
Director

Date: 4 October 2024

Page 2

 
MASTEROAST HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 3

 
MASTEROAST HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Chairman's statement

Examination of these figures reveals a satisfactory 10%  growth in revenue during the year. This increase was achieved despite a 5% price reduction in May, which the company decided upon as a measure of support for our customers still facing sluggish trading conditions post Covid. A noteworthy component within these figures was the growth of our logistics and distribution subsidiary Isurus Fulfilment Limited, with an increased contribution to revenue of £2.2m, up from £1.4m the previous year. All in all, these figures reflect real volume growth.
Gross profit remained as a percentage of turnover at 21%, after materials and direct labour costs, a reflection of our commitment to competitive customer pricing.
Operational profit was up by 66%  at 6.2% of sales, while it should be noted that there were some exceptional costs reflected in the 2022 accounts.
EBITDA improved by almost 41% to £2.7m, the same comments apply to his as the operational profit changes.
Trading during 2023 was affected by ever-more volatility in the coffee market. Nonetheless, as a private label coffee roasting and packing business without a brand or direct sales, our success is dependant on that of our customers and as such we are always conscious of the need to help maintain customers’ competitiveness, hence the decision to implement a price reduction in May.
A stagnant economy does not make for easy trading conditions nor rising cost of living, particularly for service industries, therefore I feel that the increase in the company’s revenue and volumes, along with modest profit growth is to be applauded.
During the year Masteroast has successfully focussed on operational efficiencies and fine-tuning productivity. As the pressures on economies, not only of the UK but internationally, seem unlikely to diminish any time soon, we shall continue the drive for greater efficiencies for the benefit of Masteroast and customers.
Diverse investments continue to be made within the group, both in terms of trade and plant, including a mid-range capacity roaster from Neuhaus Neotec, ordered in 2023, to come on stream in 2024. The new roaster will provide even greater flexibility within small to medium batch ranges and furthers our goal of emission  control.
Our decision to add another roaster from Neuhaus Neotec to the exclusive stable of machines already in service from that company, is testament to our continuing confidence in the exceptional engineering, versatility and unrivalled roast quality that we and our customers demand. We see this as further investment and confidence in our company’s clean, energy efficient growth going forward.
During the year, the Masteroast Group of companies made contributions to some eleven charities and good causes, preferring to spread our support in these challenging times. 
Finally, once again I cannot fail to mention the dedicated and unique Masteroast team. A diverse collection of people working together, supporting each other and the company with the joint goal of providing the best possible product and service. It is a privilege to be part of such a team.

Results and dividends

The profit for the year, after taxation and minority interests, amounted to £1,743,455 (2022: £634,574).

Dividends paid in the year amounted to £190,640 (2022: £187,473) as seen in note 13 to these financial statements.

Page 4

 
MASTEROAST HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


Directors

The directors who served during the year were:

Mr L G Mills - Chairman 
Mrs Y E V Mills 
Mr A G Fawkes 
Mr M C Mills 

Matters covered in the Group Strategic Report

Details covering principal activities, business review, principal risks and uncertainties (including financial
instruments), financial key performance indicators (KPIs) and future developments are included in the group strategic report. 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Auditors

Under section 487(2) of the Companies Act 2006, MHA will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





................................................
Mrs Y E V Mills
Director

Date: 4 October 2024

Plantation House
Newark Road
Peterborough
PE1 5UA

Page 5

 
MASTEROAST HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MASTEROAST HOLDINGS LIMITED
 

Opinion


We have audited the financial statements of Masteroast Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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's affairs as at 31 December 2023 and of the Group's profit 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 United Kingdom, including the Financial Reporting Council'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 or 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.


Page 6

 
MASTEROAST HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MASTEROAST HOLDINGS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


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 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:


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.


Page 7

 
MASTEROAST HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MASTEROAST HOLDINGS LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group 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 specific procedures for this engagement the extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 
•  Enquiry of management and those charged with governance around actual and potential litigation and    claims;  
•  Enquiry of staff to identify any instances of non-compliance with laws and regulations;  
• Performing audit work over the risk of management override of controls, including testing of journal    entries and other adjustments for appropriateness and reviewing accounting estimates for bias;  
• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance   with applicable laws and regulations.  



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


A further description of our responsibilities for the 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 Auditors' Report.


Page 8

 
MASTEROAST HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MASTEROAST HOLDINGS LIMITED (CONTINUED)


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 2006Our 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 Auditors' 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.





Ian Jacobs BA FCA (Senior Statutory Auditor)
  
For and on behalf of MHA, Statutory Auditor
Peterborough, United Kingdom
 
 
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
Date:
  

9 October 2024
Page 9

 
MASTEROAST HOLDINGS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
32,960,281
29,992,620

Cost of sales
  
(26,169,320)
(23,792,469)

Gross profit
  
6,790,961
6,200,151

Distribution costs
  
(165,046)
(211,746)

Administrative expenses
  
(4,698,021)
(4,953,896)

Other operating income
 5 
112,546
197,896

Operating profit
 6 
2,040,440
1,232,405

Income from associate interests
 16 
(340)
20,759

Interest receivable and similar income
 10 
47,174
8,687

Interest payable and similar expenses
 11 
(216,158)
(172,238)

Profit before taxation
  
1,871,116
1,089,613

Tax on profit
 12 
(145,038)
(451,696)

Profit for the financial year
  
1,726,078
637,917

Profit for the year attributable to:
  

Non-controlling interests
  
(17,377)
3,343

Owners of the parent Company
  
1,743,455
634,574

  
1,726,078
637,917

All amounts relate to continuing operations.
There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 20 to 48 form part of these financial statements.

Page 10

 
MASTEROAST HOLDINGS LIMITED
REGISTERED NUMBER: 06479864

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 15 
6,187,038
6,202,884

Investments
 16 
190,159
399,916

Investment property
 17 
2,978,418
2,974,718

  
9,355,615
9,577,518

Current assets
  

Stocks
 18 
4,771,023
5,585,162

Debtors: amounts falling due within one year
 19 
5,478,853
5,445,470

Cash at bank and in hand
 20 
274,370
318,789

  
10,524,246
11,349,421

Creditors: amounts falling due within one year
 21 
(6,814,672)
(9,013,280)

Net current assets
  
 
 
3,709,574
 
 
2,336,141

Total assets less current liabilities
  
13,065,189
11,913,659

Creditors: amounts falling due after more than one year
 22 
(1,392,648)
(1,824,956)

Provisions for liabilities
  

Deferred taxation
 25 
(499,173)
(450,773)

Net assets
  
11,173,368
9,637,930


Capital and reserves
  

Called up share capital 
 26 
1,000
1,000

Revaluation reserve
 27 
259,525
259,525

Profit and loss account
 27 
10,908,934
9,356,119

Equity attributable to owners of the parent Company
  
11,169,459
9,616,644

Non-controlling interests
  
3,909
21,286

  
11,173,368
9,637,930


Page 11

 
MASTEROAST HOLDINGS LIMITED
REGISTERED NUMBER: 06479864
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
Mr L G Mills - Chairman
................................................
Mrs Y E V Mills
Director
Director


Date: 4 October 2024
Date: 4 October 2024

The notes on pages 20 to 48 form part of these financial statements.

Page 12

 
MASTEROAST HOLDINGS LIMITED
REGISTERED NUMBER: 06479864

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 15 
2,854,933
2,780,994

Investments
 16 
191,434
331,275

Investment property
 17 
2,978,418
2,974,718

  
6,024,785
6,086,987

Current assets
  

Stocks
 18 
3
3

Debtors: amounts falling due within one year
 19 
151,848
550,847

Cash at bank and in hand
 20 
7,195
998

  
159,046
551,848

Creditors: amounts falling due within one year
 21 
(4,536,609)
(4,774,162)

Net current liabilities
  
 
 
(4,377,563)
 
 
(4,222,314)

Total assets less current liabilities
  
1,647,222
1,864,673

  

Creditors: amounts falling due after more than one year
 22 
(1,385,164)
(1,694,219)

Provisions for liabilities
  

Deferred tax
 25 
(63,049)
-

Net assets
  
199,009
170,454


Capital and reserves
  

Called up share capital 
 26 
1,000
1,000

Revaluation reserve
 27 
259,525
259,525

Profit and loss account brought forward
  
(90,071)
342,834

Profit/(loss) for the year
  
219,195
(245,432)

Dividends declared

  

(190,640)
(187,473)

Profit and loss account carried forward
  
(61,516)
(90,071)

  
199,009
170,454


Page 13

 
MASTEROAST HOLDINGS LIMITED
REGISTERED NUMBER: 06479864
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
Mr L G Mills - Chairman
................................................
Mrs Y E V Mills
Director
Director


Date: 4 October 2024
Date: 4 October 2024

The notes on pages 20 to 48 form part of these financial statements.

Page 14

 

 
MASTEROAST HOLDINGS LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023



Called up share capital
Revaluation reserve
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity


£
£
£
£
£
£



At 1 January 2022
1,000
259,525
8,909,018
9,169,543
17,943
9,187,486



Comprehensive income for the year


Profit for the year
-
-
634,574
634,574
3,343
637,917


Dividends declared
-
-
(187,473)
(187,473)
-
(187,473)





At 1 January 2023
1,000
259,525
9,356,119
9,616,644
21,286
9,637,930



Comprehensive income for the year


Profit/(loss) for the year
-
-
1,743,455
1,743,455
(17,377)
1,726,078


Dividends declared
-
-
(190,640)
(190,640)
-
(190,640)



At 31 December 2023
1,000
259,525
10,908,934
11,169,459
3,909
11,173,368



The notes on pages 20 to 48 form part of these financial statements.

Page 15

 
MASTEROAST HOLDINGS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
1,000
259,525
342,834
603,359


Comprehensive income for the year

Loss for the year
-
-
(245,432)
(245,432)

Dividends declared
-
-
(187,473)
(187,473)



At 1 January 2023
1,000
259,525
(90,071)
170,454


Comprehensive income for the year

Profit for the year
-
-
219,195
219,195

Dividends declared
-
-
(190,640)
(190,640)


At 31 December 2023
1,000
259,525
(61,516)
199,009


The notes on pages 20 to 48 form part of these financial statements.

Page 16

 
MASTEROAST HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
1,726,078
637,917

Adjustments for:

Depreciation of tangible assets
678,131
671,534

Profit on disposal of tangible assets
(170)
(4,166)

Interest paid
216,158
172,238

Interest received
(47,174)
(29,446)

Taxation charge
145,038
451,696

Decrease/(increase) in stocks
814,139
(1,394,676)

(Increase)/decrease in debtors
(33,383)
254,090

(Decrease)/increase in creditors
(1,248,919)
1,287,544

Corporation tax paid
(568,396)
(6,562)

Net cash generated from operating activities

1,681,502
2,040,169


Cash flows from investing activities

Purchase of tangible fixed assets
(662,315)
(313,429)

Sale of tangible fixed assets
200
9,750

Purchase of investment properties
(3,700)
(51,101)

New loans to associates
-
(200,000)

Associates loans repaid
209,417
-

Interest received
47,174
8,687

Loss/(profit) share from associates
340
(8,004)

Income from investments in related companies
-
20,759

Net cash from investing activities

(408,884)
(533,338)
Page 17

 
MASTEROAST HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£



Cash flows from financing activities

Repayment of other loans
(294,357)
(329,787)

Repayment of finance leases
(294,759)
(407,095)

Dividends paid
(190,640)
(187,473)

Bank interest paid
(186,058)
(140,604)

HP interest paid
(30,100)
(31,634)

Net cash used in financing activities
(995,914)
(1,096,593)

Net increase in cash and cash equivalents
276,704
410,238

Cash and cash equivalents at beginning of year
(1,112,538)
(1,522,776)

Cash and cash equivalents at the end of year
(835,834)
(1,112,538)


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
274,370
318,789

Bank overdrafts
(1,110,204)
(1,431,327)

(835,834)
(1,112,538)


The notes on pages 20 to 48 form part of these financial statements.

Page 18

 
MASTEROAST HOLDINGS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

318,789

(44,419)

274,370

Bank overdrafts

(1,431,327)

321,123

(1,110,204)

Debt due after 1 year

(1,694,219)

309,055

(1,385,164)

Debt due within 1 year

(329,232)

(14,698)

(343,930)

Finance leases

(412,836)

294,759

(118,077)


(3,548,825)
865,820
(2,683,005)

The notes on pages 20 to 48 form part of these financial statements.

Page 19

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Masteroast Holdings Limited ("the Company") and its subsidiaries ("the Group") are private companies limited by shares, incorporated in England and Wales under the Companies Act.
The registration number and the address of the registered office is given in the Company information.
The nature of the Group's operations and its principal activities are set out in the Strategic report on page 1.
The functional and presentational currency of the Group and Company is pounds sterling (£) and rounded to the nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Therefore, the Group continues to recognise a merger reserve which arose on a past business combination that was accounted for as a merger in accordance with UK GAAP as applied at that time.

  
2.3

Subsidiary guarantee

The Company Masteroast Holdings Limited with registered office Plantation House, Newark Road, Peterborough, PE1 5UA, United Kingdom shall fully guarantee for all the liabilities of subsidiary Isurus Fulfilment Limited with registered office Plantation House, Newark Road, Peterborough, PE1 5UA, United Kingdom, company number 10357412. The subsidiary Isurus Fulfilment Limited is therefore exempt from audit obligations in accordance with section 479A of the Companies Act.

Page 20

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Going concern

The financial statements have been prepared on a going concern basis. The Directors have
considered relevant information, including the annual budget, forecast future cash flows and the
impact of subsequent events in making their assessment. 
Based on these assessments and having regard to the resources available to the entity, the Directors
have concluded that there is no material uncertainity and that they can continue to adopt the going
concern basis in preparing the annual report and accounts. 

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 21

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 
2.7

Operating leases: the Group as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight-line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

 
2.8

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.9

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.10

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 22

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. 

 
2.12

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

  
2.13

Pensions

Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.14

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 23

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.15

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method and on a reducing balance basis.

Depreciation is provided on the following basis:

Freehold property
-
5% and 3.33% on straight line method
Long-term leasehold property
-
20% on straight line method
Plant and machinery
-
15% reducing balance basis
Motor vehicles
-
25% reducing balance basis
Fixtures and fittings
-
15% reducing balance basis
Other fixed assets
-
20% and 4.76% on straight line method

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.16

Investment property

Investment property is carried at fair value determined regularly by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.17

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 24

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.18

Associates and joint ventures

An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the Group to undertake an economic activity that is subject to joint control.

An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Statement of Comprehensive Income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Balance Sheet, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition.

 
2.19

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. 

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

 
2.20

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.21

Cash and cash equivalents

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

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.22

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 25

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.23

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Page 26

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.23
Financial instruments (continued)


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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

 
2.24

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 27

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The following are the critical estimations that the directors have made in the process of applying the
Group's accounting policies and that have the most significant effect on the amounts recognised in the
financial statements. 
Key source of estimation uncertainty - Determining residual values and useful economic lives of
property, plant and equipment 
The Group depreciates tangible assets over their estimates useful lives. The estimation of the useful
lives of assets is based on historic performance as well as expectations about future use and therefore
requires estimates and assumptions to be applied by management. The actual lives of these assets can
vary depending on a variety of factors, including technological innovation, product life cycles and
maintenance programmes. 
Judgment is applied by management when determining the residual values for plant, machinery and
equipment. When determining the residual value, management aim to assess the amount that the
Group would currently obtain for the disposal of the asset, if it were already of the condition expected
at the end of its useful economic life. Where possible this is done with reference to external market prices.
Key source of estimation uncertainty - Recoverability of receivables 
The Group establishes a provision for receivables that are not estimated to be recoverable. When
assessing recoverability, the directors consider factorssuch as the aging of the receivables, past
experience of recoverability, and the credit profile of individual or groups of customers. 
Key source of estimation uncertainty – Determining the valuation of investment properties
The Group’s policy regarding investment property valuation is to initially value these at cost, with subsequent measurement being done through property valuations by an independent expert every 3 years. Management considers at each reporting date whether the value of investment properties will have materially changed since the previous valuation has taken place. 

Page 28

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

An analysis of turnover by class of business as follows; Sale of goods £32,616,861 (2022: £29,780,547), rendering of services £343,420 (2022: £212,073).

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
31,243,877
28,650,347

Rest of Europe
1,716,404
1,342,273

32,960,281
29,992,620



5.


Other operating income

2023
2022
£
£

Rents receivable
97,406
187,896

Profit on disposal of tangible assets
-
10,000

Other fees receivable
15,140
-

112,546
197,896



6.


Operating profit

The operating profit is stated after charging/(crediting):

2023
2022
£
£

Exchange differences
(67,707)
(80,824)

Other operating lease rentals
300,000
275,333

Profit on sale of tangible fixed assets
(170)
(4,166)

Page 29

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
36,250
30,725


Fees payable ot the Group's auditor in respect of:

2023
2022
£
£



Taxation compliance services
6,800
3,250

All other services
35,000
17,545

41,800
20,795


8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Company
2023
2023
£
£


Wages and salaries
3,799,389
368,241

Social security costs
335,918
36,966

Cost of defined contribution scheme
214,660
95,687

4,349,967
500,894


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Production staff
114
119



Sales and administration staff
22
22



Management staff
13
9

149
150

Page 30

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
342,839
1,138,115

Group contributions to defined contribution pension schemes
94,830
232,440

437,669
1,370,555


During the year retirement benefits were accruing to 2 directors (2022 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £171,999 (2022 - £931,733).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £75,850 (2022 - £116,860).


10.


Interest receivable

2023
2022
£
£


Other interest receivable
47,174
8,687


11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
186,058
140,604

Finance leases and hire purchase contracts
30,100
31,634

216,158
172,238

Page 31

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
96,638
475,000

Adjustments in respect of previous periods
-
6,562


96,638
481,562


Total current tax
96,638
481,562

Deferred tax


Origination and reversal of timing differences
48,400
(29,866)

Total deferred tax
48,400
(29,866)


Taxation on profit on ordinary activities
145,038
451,696
Page 32

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,871,116
1,089,613


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
467,864
207,026

Effects of:


Expenses not deductible for tax purposes
-
14,652

Capital allowances for year in excess of depreciation
12,620
26,888

Adjustments to tax charge in respect of prior periods
-
6,562

Profit on disposal of assets
(1,802)
-

Non-taxable income less expenses not deductible for tax purposes, other than goodwill and impairment
(168,951)
-

Change in the tax rate
(6,678)
-

Origination and reversal of timing differences
48,400
-

Changes in provisions leading to an decrease in the tax charge
-
(29,866)

Unrelieved tax losses carried forward
-
227,226

Other differences leading to an decrease in the tax charge
-
(792)

Group relief
(206,415)
-

Total tax charge for the year
145,038
451,696


Factors that may affect future tax charges

In the Spring Budget 2021, the UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25% (rather than remaining at 19%, as previously enacted). This new law was substantively enacted on 24 May 2021. For the financial year ended 31 December 2023, the current weighted averaged tax rate was 23.5%.  
Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements.  

Page 33

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Dividends

2023
2022
£
£


Dividends declared
190,640
187,473


14.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the parent Company for the year was £219,195 (2022 - loss £245,432).

Page 34

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Tangible fixed assets

Group






Freehold property
Long-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings

£
£
£
£
£



Cost or valuation


At 1 January 2023
4,846,139
104,130
6,848,531
69,924
722,702


Additions
-
200,951
200,085
216,383
44,896


Disposals
-
-
(3,000)
-
-



At 31 December 2023

4,846,139
305,081
7,045,616
286,307
767,598



Depreciation


At 1 January 2023
1,606,838
8,256
4,388,316
29,731
514,178


Charge for the year on owned assets
190,368
20,826
233,230
25,557
34,285


Charge for the year on financed assets
-
-
154,670
-
-


Disposals
-
-
(2,970)
-
-



At 31 December 2023

1,797,206
29,082
4,773,246
55,288
548,463



Net book value



At 31 December 2023
3,048,933
275,999
2,272,370
231,019
219,135



At 31 December 2022
3,239,301
95,874
2,460,215
40,193
208,524
Page 35

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           15.Tangible fixed assets (continued)


Other fixed assets
Total

£
£



Cost or valuation


At 1 January 2023
255,975
12,847,401


Additions
-
662,315


Disposals
-
(3,000)



At 31 December 2023

255,975
13,506,716



Depreciation


At 1 January 2023
97,198
6,644,517


Charge for the year on owned assets
19,195
523,461


Charge for the year on financed assets
-
154,670


Disposals
-
(2,970)



At 31 December 2023

116,393
7,319,678



Net book value



At 31 December 2023
139,582
6,187,038



At 31 December 2022
158,777
6,202,884

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
876,466
1,027,042

Other fixed assets
-
158,777

876,466
1,185,819

Page 36

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           15.Tangible fixed assets (continued)


Company






Freehold property
Long-term leasehold property
Plant and machinery
Fixtures and fittings
Other fixed assets

£
£
£
£
£

Cost or valuation


At 1 January 2023
3,140,379
104,130
24,514
21,385
255,975


Additions
-
200,951
-
26,520
-



At 31 December 2023

3,140,379
305,081
24,514
47,905
255,975



Depreciation


At 1 January 2023
632,920
8,256
14,087
12,926
97,200


Charge for the year on owned assets
109,047
20,826
1,564
2,900
19,195



At 31 December 2023

741,967
29,082
15,651
15,826
116,395



Net book value



At 31 December 2023
2,398,412
275,999
8,863
32,079
139,580



At 31 December 2022
2,507,459
95,874
10,427
8,459
158,775
Page 37

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           15.Tangible fixed assets (continued)


Total

£

Cost or valuation


At 1 January 2023
3,546,383


Additions
227,471



At 31 December 2023

3,773,854



Depreciation


At 1 January 2023
765,389


Charge for the year on owned assets
153,532



At 31 December 2023

918,921



Net book value



At 31 December 2023
2,854,933



At 31 December 2022
2,780,994






The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Other fixed assets
-
158,775

Page 38

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Fixed asset investments

Group





Investments in associates
Loans to associates
Total

£
£
£



Cost


At 1 January 2023
94,916
305,000
399,916


Repayments
-
(209,417)
(209,417)


Share of loss
(340)
-
(340)



At 31 December 2023
94,576
95,583
190,159




Company





Investments in subsidiary companies
Investments in associates
Loans to associates
Total

£
£
£
£



Cost


At 1 January 2023
1,275
25,000
305,000
331,275


Repayments
-
-
(209,417)
(209,417)


Share of profits
-
69,576
-
69,576



At 31 December 2023
1,275
94,576
95,583
191,434




In the 2020 financial year, the company acquired 100% shareholding of Mastertec Engineering Limited at nominal value.
During the 2019 financial year, the company acquired a 25% shareholding in Colombian entity BBKM Servicos SAS. The share of its post-acquisition profit and losses have been brought into the financial statements using the equity method of accounting. The loss for the year totalled £340 (2022: profit £20,759) and can be seen in the Consolidated Statement of Comprehensive Income. 
In June 2020, a £100,000 loan was made to BBKM Servicos SAS for additional working capital to secure coffees on behalf of the Masteroast Group. This attracted interest due to Masteroast Holdings Limited of £Nil (2022: £Nil) and is included in the total value of loans to associates. 

Page 39

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Masteroast Coffee Co. Limited
Plantation House, Newark Road, Peterborough, PE1 5UA
Ordinary
100%
MCEU Limited
Plantation House, Newark Road, Peterborough, PE1 5UA
Ordinary
75%
Isurus Fulfilment Limited
Plantation House, Newark Road, Peterborough, PE1 5UA
Ordinary
100%
Mastertec Engineering Limited
Plantation House, Newark Road, Peterborough, PE1 5UA
Ordinary
100%


17.


Investment property

Group and Company


Freehold investment property

£



Valuation


At 1 January 2023
2,974,718


Additions at cost
3,700



At 31 December 2023
2,978,418

During the 2023 financial year, the directors have reconsidered both investment properties held and concluded that their likely market values have not moved significantly from their recent valuation and purchase prices.
This investment property has been fair valued in the year ended 2021 by the independent external valuer Hurford a local firm of whom hold local knowledge and relevant professional qualifications. For the current year the Directors believe no material change in value has occurred. 

The 2021 valuations were made by Hurfords Estate Agents, on an open market value for existing use basis.



Page 40

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


Stocks

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Raw materials and consumables
4,512,351
5,389,935
-
-

Finished goods and goods for resale
258,672
195,227
3
3

4,771,023
5,585,162
3
3


The difference between purchase price or production cost of stocks and their replacement cost is not material.


19.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
4,844,349
4,605,241
-
-

Amounts owed by group undertakings
-
99,777
-
-

Other debtors
258,451
657,872
140,820
549,268

Prepayments and accrued income
376,053
82,580
11,028
1,579

5,478,853
5,445,470
151,848
550,847


Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.


20.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
274,370
318,789
7,195
998

Less: bank overdrafts
(1,110,204)
(1,431,327)
-
-

(835,834)
(1,112,538)
7,195
998


Page 41

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank overdrafts
1,110,204
1,431,327
-
-

Bank loans
343,930
329,232
343,930
329,232

Trade creditors
4,478,334
4,833,952
-
-

Amounts owed to group undertakings
-
99,777
3,960,190
3,400,148

Corporation tax
3,242
475,000
874
-

Other taxation and social security
74,905
84,669
9,896
29,319

Obligations under finance lease and hire purchase contracts
110,593
282,099
-
39,583

Other creditors
208,873
121,607
183,623
96,457

Accruals and deferred income
484,591
1,355,617
38,096
879,423

6,814,672
9,013,280
4,536,609
4,774,162


Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
Bank overdrafts are secured by a debenture over the subsidiary Masteroast Coffee Co. Limited assets and an intercompany guarantee.
Bank loans are secured by a debenture over all Company freehold property including first legal charge together with all Company assets and an intercompany guarantee.
Obligations under finance lease and hire purchase contracts are secured against the assets to which they relate. 

Page 42

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

22.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
1,385,164
1,694,219
1,385,164
1,694,219

Obligations under finance leases and hire purchase contracts
7,484
130,737
-
-

1,392,648
1,824,956
1,385,164
1,694,219


Bank loans are secured by a debenture over all Company freehold property including first legal charge together with all Company assets and an intercompany guarantee.
Obligations under finance lease and hire purchase contracts are secured against the assets to which they relate. 




23.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts falling due within 1 year

Bank loans
343,930
329,232
343,930
329,232

Amounts falling due 1-2 years

Bank loans
306,937
381,149
306,937
381,149

Amounts falling due 2-5 years

Bank loans
397,741
521,703
397,741
521,703

Amounts falling due after more than 5 years

Bank loans
680,486
791,367
680,486
791,367

1,729,094
2,023,451
1,729,094
2,023,451


Page 43

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

24.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Within 1 year
110,593
315,500
-
39,583

Between 1-5 years
7,484
94,126
-
-

118,077
409,626
-
39,583


25.


Deferred taxation


Group



2023
2022


£

£






At beginning of year
450,773
480,639


Charged/(credited) to profit or loss
48,400
(29,866)



At end of year
499,173
450,773

Company


2023
2022


£

£






Charged to profit or loss
63,049
-



At end of year
63,049
-

The provision for deferred taxation is made up as follows:

Group
Group
Company
2023
2022
2023
£
£
£

Accelerated capital allowances
499,173
450,773
63,049

Page 44

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

26.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,000 (2022 - 1,000) Ordinary shares of £1.00 each
1,000
1,000



27.


Reserves

Revaluation reserve

The revaluation reserve represents the cumulative effect of revaluations of investment properties held. 

Profit and loss account

The profit and loss account represents cumulative profits or losses, net of dividends paid and other
adjustments.


28.


Capital commitments




At 31 December 2023 the Group and Company had capital commitments as follows:


Group
Group
2023
2022
£
£

Plant and machinery
476,644
-

476,644
-


29.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held
separately of those of the Company in an independently administered fund. The pension cost charge
represents contributions payable by the Company to the fund and amounted to £309,490 (2023: £328,127).

Page 45

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

30.


Commitments under operating leases

At 31 December 2023 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Property leases

Not later than 1 year
300,000
300,000

Later than 1 year and not later than 5 years
1,200,000
1,200,000

Later than 5 years
1,200,000
1,500,000

2,700,000
3,000,000
Group
Group
2023
2022
£
£

Other operating leases

Not later than 1 year
19,914
5,059

Later than 1 year and not later than 5 years
23,275
7,167

43,189
12,226


31.


Transactions with directors

During the year, advances of £39,137 (2022: £13,983) were made to the director Mr M Mills, of which £453,496 (2022: £21,873) was repaid. At the year end £6,811 (2022: £412,905) was owed by Mr M Mills to the Company. Interest has been charged on this loan at a commercial rate totalling £8,265 (2022: £10,341). This balance is shown within other debtors. 
During the year, advances of £86,044 (2022: £33,576) were made to the director Mr L G Mills, of which £1461,188 (2022: £116,165) was repaid. At the year end £93,156 (2022: £18,012) was owed to Mr L G Mills. Interest has been charged on this loan at a commercial rate totalling £NIL (2022: £NIL). This balance is shown within other creditors. 
During the year, advances of £79,394 (2022: £35,953) were made to the director Mrs Y E V Mills, of which £97,326 (2022: £96,914) was repaid. At the year end £78,627 (2022: £60,695) was owed to Mrs Y E V Mills. This balance is shown within other creditors.
During the year, advances of £17,920 (2022: £21,163) were made to the director Mr A G Fawkes, of which £21,147 (2022: £15,215) was repaid. At the year end £2,589 (2022: £5,816) was owed to Mr A G Fawkes by the Company. Interest has been charged on this loan at a commercial rate totalling £NIL (2022: £NIL). This balance is shown within other debtors.. 

Page 46

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

32.


Related party transactions

The total remuneration for key management personnel for the year, including directors totalled £492,571 (2022: £1,414,134).
During the year subsidiary Masteroast Coffee Co. Limited sold goods totalling £447,276 (2022: £414,215) and purchased goods totalling £11,371 (2022: £11,106) from MCEU Limited, a wholly owned subsidiary of the Group. At the Balance sheet date Masteroast Coffee Co. Limited was owed £175,074 (2022: £99,777) from MCEU Limited and owed MCEU £Nil (2022: £2,191).
During the year sales totalling £23,713 (2022: £12,953) and purchases totalling £89,755 (2022: £Nil) were made to Plantation Management LLP by the Group, of which directors Mr L G Mills, Mrs Y E V Mills and Mr A G Fawkes are sole members. At the balance sheet date the Group was owed £Nil (2022: £42,801) from Plantation Management LLP, £Nil (2022: £38,241) of this balance is included within other debtors and £Nil (2022: £4,560) is included within trade debtors. Furthermore, the company owed £Nil (2022: £15,000) to Plantation Management LLP which is included within accruals and deferred income.
During the year, rent of £19,200 (2022: £17,761) was charged by the Group to Casewick Stud Equestrian Limited, a company in which Miss N L Mills, daughter of the majority shareholder of the Group Mr L G Mills, is a director and sole shareholder. 
During the year, there were dividends of £190,640 (2022: £187,473) paid to the shareholders of the Group. 
In the prior year a sale of a fixed asset took place to Casewick Stud Equestrian Limited, a company of which the Mills directors are closely connected. Proceeds of £10,000 where received for the asset, the directors were unable to confirm this transaction was at arm’s length.

Page 47

 
MASTEROAST HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

33.


Controlling party

The Company is controlled by its majority shareholder, Mr L G Mills. 

 
Page 48