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COMPANY REGISTRATION NUMBER: 01100045
M. J. Ainge & Co. Limited
Consolidated Financial Accounts
For the year ended
31 December 2023
M. J. Ainge & Co. Limited
Consolidated Financial Accounts
Year ended 31 December 2023
Contents
Page
Strategic report
1
Directors' report
3
Independent auditor's report to the members
5
Consolidated statement of comprehensive income
9
Consolidated statement of financial position
10
Company statement of financial position
12
Consolidated statement of changes in equity
13
Company statement of changes in equity
14
Consolidated statement of cash flows
15
Notes to the consolidated financial accounts
16
M. J. Ainge & Co. Limited
Strategic Report
Year ended 31 December 2023
Review of business
During the year under review the parent company's principal activity continued to be the sale of equestrian products. The group's turnover decreased by 8.6% to £27.5m (2022 - £30.1m) with a decreased profit before tax of £2,068k (2022 - £3,890k). The activity of the 90.48% subsidiary company in the People's Republic of China, Nevada Blanket Manufacturing (Xiamen) Co Ltd, continued to be the manufacture of equestrian products. The turnover decreased to £1.5m (2022 - £3.2m) resulting in a loss before tax of £218k (2022 - Profit £109k). The activity of the 100% subsidiary company in the US, Shires Equestrian Inc continued to be the sale of equestrian products. The turnover for the year amounted to £5.3m (2022 - £6.3m) resulting in an increased profit before tax of £238k (2022 - £192k). The 100% subsidiary company in the US, 36 BR Realty, Inc. rented premises to the US subsidiary Shires Equestrian Inc. The rental income for the year amounted to £59k (2022 - £59k) resulting in a profit before tax of £25k (2022 - £31k). The activity of the 100% subsidiary company in Ireland, Shires Equestrian (Ireland) Limited which commenced trading on 1 July 2022, continued to be the sale of equestrian products. The turnover for the year amounted to £1,897k (2022 - £938k) resulting in a profit before tax of £99k (2022 - £12k). The group owns 33.3% of Nantong Mario Lentini Garment Decoration Co Ltd, a company incorporated in the People's Republic of China. The activity of Nantong Mario Lentini Garment Decoration Co Ltd continued to be the manufacture of equestrian products. In addition to its main premises in the UK, the group also operated from a branch in the Republic of Ireland until 30 June 2022. This was replaced by the subsidiary Shires Equestrian (Ireland) Limited. The group continued its policy of investing funds in research and development to increase its product range and improve its existing products.
The group uses the following key performance indicators to assess performance: Operating profit £2,088,736 (2022 - £3,925,565) Stock turn 232 days (2022 - 250 days) Debtor days 37 days (2022 - 41 days) Creditor days 52 days (2022 - 54 days)
Principal risks and uncertainties
The principal risks and uncertainties faced by the group are brought by: a) foreign exchange risk since the majority of the company purchases are imports and of these the majority are designated in US dollars, and b) the continuing effect of outbreaks of the Covid pandemic. The directors have taken appropriate measures to hedge against adverse exchange rate movements, minimise the effect of Brexit and relationships with customers and suppliers within the EU remains good. The directors believe that the group is financially sound and should be able to overcome any problems. The group ensures that it complies with all regulations and legislation relating to its industry.
This report was approved by the board of directors on 20 November 2024 and signed on behalf of the board by:
F P Kane
Director
Registered office:
15 Southern Avenue
Leominster
Herefordshire
HR6 0QF
M. J. Ainge & Co. Limited
Directors' Report
Year ended 31 December 2023
The directors present their report and the consolidated financial accounts of the group for the year ended 31 December 2023 .
Directors
The directors who served the company during the year were as follows:
M J Ainge
M L Ainge
F P Kane
S M Ainge
M G Cridland
Dividends
The directors do not recommend the payment of a dividend.
Review of the year and future developments
The result for the year was very encouraging despite current economic trends, it is expected that 2024 will be another good year.
In an effort to continually keep ahead of the opposition in a very competitive market the group is currently undertaking research and development to further develop and improve products.
The introduction of a completely new ERP system, is in progress, which will include different options for lots of processes including picking. The new system is expected to be up and running on 1 January 2025.
Financial instruments
The company is exposed to foreign exchange risk since the majority of its purchases are imports and of these the majority is designated in US dollars. The company hedges against adverse exchange rate movements by forward buying the dollar.
To mitigate exposure to price risk relating to goods bought from overseas, the group employs a purchasing manager in China to enable the company to obtain competitive purchase prices.
Events after the end of the reporting period
Particulars of events after the reporting date are detailed in note 27 to the consolidated financial accounts.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the consolidated financial accounts in accordance with applicable law and regulations. Company law requires the directors to prepare consolidated financial accounts for each financial year. Under that law the directors have elected to prepare the consolidated financial accounts 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 consolidated financial accounts unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and the profit or loss of the group for that period. In preparing these consolidated financial accounts, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the consolidated financial accounts on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the consolidated financial accounts 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information. The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 20 November 2024 and signed on behalf of the board by:
F P Kane
Director
Registered office:
15 Southern Avenue
Leominster
Herefordshire
HR6 0QF
M. J. Ainge & Co. Limited
Independent Auditor's Report to the Members of M. J. Ainge & Co. Limited
Year ended 31 December 2023
Opinion
We have audited the consolidated financial accounts of M. J. Ainge & Co. Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the consolidated statement of comprehensive income, consolidated statement of financial position, company statement of financial position, consolidated statement of changes in equity, company statement of changes in equity, consolidated statement of cash flows and the related notes, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the consolidated financial accounts: - 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; - 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 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 consolidated financial accounts, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the consolidated financial accounts 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 consolidated financial accounts are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the consolidated financial accounts and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the consolidated financial accounts 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 consolidated financial accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial accounts 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 there is a material misstatement in the consolidated financial accounts or a material misstatement of the other information. 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 work undertaken in the course of the audit:
- the information given in the 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 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 our knowledge and understanding of the group and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the consolidated financial accounts 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 consolidated financial accounts that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial accounts, 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.
Auditor's responsibilities for the audit of the consolidated financial accounts
Our objectives are to obtain reasonable assurance about whether the consolidated financial accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial accounts. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - The partner ensured that the group audit team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - We identified the laws and regulations applicable to the group and parent company through discussions with directors, and from our commercial knowledge and years of experience of the equestrian manufacture and supply sector. We determined that the following laws and regulations may have a direct material effect on the financial statements or the operations of the group and parent company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation; and - We assessed the extent of compliance with the laws and regulations identified above making enquiries of directors and reviewing legal and other correspondence. The audit team remained alert to any instances of non-compliance throughout the audit. We corroborated our enquiries by reviewing minutes of directors meetings. - We assessed the susceptibility of the group and company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur. Audit procedures performed by the group engagement team included: - Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; - Making enquiries of directors as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; - Performed analytical procedures to identify any unusual or unexpected relationships; - Tested journal entries to identify unusual transactions and investigated the rationale behind significant or unusual transactions; and - Assessed whether assumptions and judgements made by directors in its accounting estimates were indicative of potential bias. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the consolidated financial accounts, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial accounts or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the consolidated financial accounts, including the disclosures, and whether the consolidated financial accounts represent the underlying transactions and events in a manner that achieves fair presentation. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated consolidated financial accounts. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
Michael Holder
(Senior Statutory Auditor)
For and on behalf of
Rigbey Harrison
Chartered accountants & statutory auditor
4 Church Green East,
Redditch,
Worcs,
B98 8BT
20 November 2024
M. J. Ainge & Co. Limited
Consolidated Statement of Comprehensive Income
Year ended 31 December 2023
2023
2022
Note
£
£
Turnover
4
27,584,485
30,169,922
Cost of sales
17,886,557
20,911,877
-------------
-------------
Gross profit
9,697,928
9,258,045
Distribution costs
2,426,466
2,041,573
Administrative expenses
5,182,726
3,290,907
------------
------------
Operating profit
5
2,088,736
3,925,565
Other interest receivable and similar income
8
34,564
12,340
Interest payable and similar expenses
9
55,173
48,103
------------
------------
Profit before taxation
2,068,127
3,889,802
Tax on profit
10
575,657
724,366
------------
------------
Profit for the financial year
1,492,470
3,165,436
------------
------------
Foreign currency retranslation
( 204,133)
275,585
------------
------------
Total comprehensive income for the year
1,288,337
3,441,021
------------
------------
Profit for the financial year attributable to:
The owners of the parent company
1,499,834
3,159,615
Non- controlling interests
( 7,364)
5,821
------------
------------
1,492,470
3,165,436
------------
------------
Total comprehensive income for the year attributable to:
The owners of the parent company
1,302,721
3,432,696
Non- controlling interests
( 14,384)
8,325
------------
------------
1,288,337
3,441,021
------------
------------
All the activities of the group are from continuing operations.
M. J. Ainge & Co. Limited
Consolidated Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
11
3,947,375
4,042,396
Investments
12
111,589
112,408
------------
------------
4,058,964
4,154,804
Current assets
Stocks
13
10,324,574
12,719,624
Debtors
14
3,701,123
4,486,657
Cash at bank and in hand
5,134,105
2,084,141
-------------
-------------
19,159,802
19,290,422
Creditors: amounts falling due within one year
15
3,478,458
5,369,628
-------------
-------------
Net current assets
15,681,344
13,920,794
-------------
-------------
Total assets less current liabilities
19,740,308
18,075,598
Creditors: amounts falling due after more than one year
16
366,016
Provisions for liabilities
18
76,280
65,923
-------------
-------------
Net assets
19,298,012
18,009,675
-------------
-------------
Capital and reserves
Called up share capital
22
5,700
5,700
Capital redemption reserve
23
300
300
Profit and loss account
23
19,228,396
17,925,675
-------------
-------------
Equity attributable to the owners of the parent company
19,234,396
17,931,675
Non- controlling interests
63,616
78,000
-------------
-------------
19,298,012
18,009,675
-------------
-------------
These consolidated financial accounts have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
M. J. Ainge & Co. Limited
Consolidated Statement of Financial Position (continued)
31 December 2023
These consolidated financial accounts were approved by the board of directors and authorised for issue on 20 November 2024 , and are signed on behalf of the board by:
F P Kane
Director
Company registration number: 01100045
M. J. Ainge & Co. Limited
Company Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
11
3,155,328
3,158,490
Investments
12
1,674,351
1,674,351
------------
------------
4,829,679
4,832,841
Current assets
Stocks
13
7,666,464
8,860,982
Debtors
14
4,977,261
6,092,529
Cash at bank and in hand
4,078,311
1,587,247
-------------
-------------
16,722,036
16,540,758
Creditors: amounts falling due within one year
15
3,410,597
4,885,037
-------------
-------------
Net current assets
13,311,439
11,655,721
-------------
-------------
Total assets less current liabilities
18,141,118
16,488,562
Creditors: amounts falling due after more than one year
16
366,016
Provisions for liabilities
18
76,280
65,923
-------------
-------------
Net assets
17,698,822
16,422,639
-------------
-------------
Capital and reserves
Called up share capital
22
5,700
5,700
Capital redemption reserve
23
300
300
Profit and loss account
23
17,692,822
16,416,639
-------------
-------------
Shareholders funds
17,698,822
16,422,639
-------------
-------------
The profit for the financial year of the parent company was £ 1,276,184 (2022: £ 3,065,363 ).
These consolidated financial accounts have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These consolidated financial accounts were approved by the board of directors and authorised for issue on 20 November 2024 , and are signed on behalf of the board by:
F P Kane
Director
Company registration number: 01100045
M. J. Ainge & Co. Limited
Consolidated Statement of Changes in Equity
Year ended 31 December 2023
Called up share capital
Capital redemption reserve
Profit and loss account
Equity attributable to the owners of the parent company
Non- controlling interests
Total
£
£
£
£
£
£
At 1 January 2022
5,700
300
14,492,979
14,498,979
69,675
14,568,654
Profit for the year
3,159,615
3,159,615
5,821
3,165,436
Other comprehensive income for the year:
Foreign currency retranslation
273,081
273,081
2,504
275,585
-------
----
-------------
-------------
--------
-------------
Total comprehensive income for the year
3,432,696
3,432,696
8,325
3,441,021
At 31 December 2022
5,700
300
17,925,675
17,931,675
78,000
18,009,675
Profit for the year
1,499,834
1,499,834
( 7,364)
1,492,470
Other comprehensive income for the year:
Foreign currency retranslation
( 197,113)
( 197,113)
( 7,020)
( 204,133)
-------
----
-------------
-------------
--------
-------------
Total comprehensive income for the year
1,302,721
1,302,721
( 14,384)
1,288,337
-------
----
-------------
-------------
--------
-------------
At 31 December 2023
5,700
300
19,228,396
19,234,396
63,616
19,298,012
-------
----
-------------
-------------
--------
-------------
M. J. Ainge & Co. Limited
Company Statement of Changes in Equity
Year ended 31 December 2023
Called up share capital
Capital redemption reserve
Profit and loss account
Total
£
£
£
£
At 1 January 2022
5,700
300
13,351,276
13,357,276
Profit for the year
3,065,363
3,065,363
-------
----
-------------
-------------
Total comprehensive income for the year
3,065,363
3,065,363
At 31 December 2022
5,700
300
16,416,638
16,422,638
Profit for the year
1,276,184
1,276,184
-------
----
-------------
-------------
Total comprehensive income for the year
1,276,184
1,276,184
-------
----
-------------
-------------
At 31 December 2023
5,700
300
17,692,822
17,698,822
-------
----
-------------
-------------
M. J. Ainge & Co. Limited
Consolidated Statement of Cash Flows
Year ended 31 December 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
1,492,470
3,165,436
Adjustments for:
Depreciation of tangible assets
196,337
200,631
Other interest receivable and similar income
( 34,564)
( 12,340)
Interest payable and similar expenses
55,173
48,103
Loss on disposal of tangible assets
12,963
3,492
Tax on profit
575,657
724,366
Effect of foreign exchange rate changes
(159,202)
192,401
Changes in:
Stocks
2,395,050
( 1,801,350)
Trade and other debtors
782,247
( 262,999)
Trade and other creditors
( 1,609,404)
( 934,139)
------------
------------
Cash generated from operations
3,706,727
1,323,601
Interest paid
( 44,921)
( 48,198)
Interest received
34,564
12,340
Tax paid
( 928,393)
( 522,944)
------------
------------
Net cash from operating activities
2,767,977
764,799
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 174,840)
( 171,509)
Proceeds from sale of tangible assets
16,449
4,623
------------
------------
Net cash used in investing activities
( 158,391)
( 166,886)
------------
------------
Cash flows from financing activities
Proceeds from borrowings
547,725
Repayments of borrowings
( 107,069)
( 650,927)
Payments of finance lease liabilities
( 278)
( 1,633)
------------
------------
Net cash from/(used in) financing activities
440,378
( 652,560)
------------
------------
Net increase/(decrease) in cash and cash equivalents
3,049,964
( 54,647)
Cash and cash equivalents at beginning of year
2,084,141
2,138,788
------------
------------
Cash and cash equivalents at end of year
5,134,105
2,084,141
------------
------------
M. J. Ainge & Co. Limited
Notes to the Consolidated Financial Accounts
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 15 Southern Avenue, Leominster, Herefordshire, HR6 0QF.
2. Statement of compliance
The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on a going concern basis under the historical cost convention, modified by the revaluation of certain financial assets and liabilities measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Disclosure exemptions
The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:
(a) Disclosures in respect of each class of share capital have not been presented.
(b) No cash flow statement has been presented for the company.
(c) Disclosures in respect of financial instruments have not been presented.
(d) No disclosure has been given for the aggregate remuneration of key management personnel.
Consolidation
The consolidated financial statements incorporate the financial statements of the company and all group undertakings. Subsidiary undertakings are accounted for under the acquisition method. As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.
Non-controlling interests
Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Group’s equity. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling interest's share of changes in equity since the date of the combination.
The proportions of profit or loss and changes in equity allocated to the owners of the parent and to the non-controlling interests are determined on the basis of existing ownership interests and do not reflect the possible exercise or conversion of options or convertible instruments.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements: Stock provision judgemental % deemed appropriate by management
Revenue recognition
Turnover represents sales of goods net of VAT and trade discounts. Turnover is recognised when goods are physically delivered to the customer.
Tax
Current tax represents the amount of tax payable or receivable in respect of the taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Company: Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit. Group: Each entity in the group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency. The assets and liabilities of overseas subsidiary undertakings are translated into the presentational currency at the rate of exchange ruling at the balance sheet date. Income and expenses for each statement of comprehensive income are translated at exchange rates at the dates of transaction. All resulting exchange differences are recognised in other comprehensive income.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible fixed assets
Tangible fixed assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold buildings
-
2% straight line
Plant & machinery
-
15% reducing balance, 9%, 18% or 30% straight line
Office equipment, fixtures & fittings
-
20% or 25% reducing balance or 12.5% straight line
Motor vehicles
-
25% reducing balance or 18% or 12.5% straight line
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Stocks
Stock is valued at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the weighted average method. Provision is made for slow moving, obsolete or damaged stock where appropriate.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in administrative expenses.
Employee benefits
When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. Contributions to defined contribution pension plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2023
2022
£
£
Sale of goods
27,584,485
30,169,922
-------------
-------------
The turnover is attributable to the one principal activity of the group. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2023
2022
£
£
United Kingdom
18,595,758
19,286,714
Overseas
8,988,727
10,883,208
-------------
-------------
27,584,485
30,169,922
-------------
-------------
5. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
196,337
200,631
Loss on disposal of tangible assets
12,963
3,492
Impairment of trade debtors
131,972
(25,103)
Operating lease rentals
182,621
186,045
Foreign exchange differences
213,496
( 1,007,798)
Fees payable for the audit of the consolidated financial accounts
65,215
55,220
---------
------------
Foreign exchange differences include a loss of £17,508 (2022 - loss £49,270) relating to changes in fair value of derivative financial instruments.
6. Staff costs
The average number of persons employed by the group during the year, including the directors, amounted to:
2023
2022
No.
No.
Production staff
67
110
Distribution staff
79
81
Administrative staff
42
50
Management staff
8
8
----
----
196
249
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
4,698,454
4,790,070
Social security costs
486,656
443,076
Other pension costs
133,095
99,226
------------
------------
5,318,205
5,332,372
------------
------------
7. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
1,366,712
930,760
Company contributions to defined contribution pension plans
61,147
21,940
------------
---------
1,427,859
952,700
------------
---------
The number of directors who accrued benefits under company pension plans was as follows:
2023
2022
No.
No.
Defined contribution plans
3
2
----
----
Remuneration of the highest paid director in respect of qualifying services:
2023
2022
£
£
Aggregate remuneration
451,166
259,500
---------
---------
8. Other interest receivable and similar income
2023
2022
£
£
Interest on loans and receivables
33,702
11,937
Interest on cash and cash equivalents
862
403
--------
--------
34,564
12,340
--------
--------
9. Interest payable and similar expenses
2023
2022
£
£
Interest on banks loans and overdrafts
32,042
14,797
Interest on obligations under finance leases and hire purchase contracts
276
Other interest payable
22,855
33,306
--------
--------
55,173
48,103
--------
--------
10. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
411,208
713,422
Adjustments in respect of prior periods
69,622
( 40,286)
---------
---------
Total UK current tax
480,830
673,136
Foreign current tax income
84,470
55,912
---------
---------
Total current tax
565,300
729,048
---------
---------
Deferred tax:
Origination and reversal of timing differences
10,357
( 4,682)
---------
---------
Tax on profit
575,657
724,366
---------
---------
The UK current tax adjustments in respect of prior periods relate to research and development tax credit claims and double taxation relief.
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2022: lower than) the standard rate of corporation tax in the UK of 25 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
2,068,127
3,889,802
------------
------------
Profit on ordinary activities by rate of tax
486,435
739,062
Adjustment to tax charge in respect of prior periods
69,622
( 40,286)
Effect of expenses not deductible for tax purposes
40
125
Effect of capital allowances and depreciation
( 2,007)
3,016
Unused tax losses
51,298
Different tax rates of foreign group undertakings
( 1,132)
( 9,602)
Non-taxable exchange rate and stock adjustments on consolidation
( 38,956)
36,733
Effect of deferred tax
10,357
( 4,682)
------------
------------
Tax on profit
575,657
724,366
------------
------------
Factors that may affect future tax expense
The UK corporation tax rate was 19% to 31 March 2023 and 25% from 1 April 2023.
The deferred tax charge at 31 December 2023 has been calculated at 25%.
11. Tangible assets
Group
Freehold Property
Plant & Machinery
Office Equipment, Fixtures & Fittings
Motor Vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
3,937,182
410,261
850,860
339,299
5,537,602
Additions
1,886
151,466
21,488
174,840
Disposals
( 76,941)
( 58,144)
( 37,816)
( 172,901)
Exchange rate adjustments
(35,380)
(20,846)
(8,805)
(7,666)
(72,697)
------------
---------
---------
---------
------------
At 31 December 2023
3,903,688
312,474
935,377
315,305
5,466,844
------------
---------
---------
---------
------------
Depreciation
At 1 January 2023
440,242
255,282
566,188
233,494
1,495,206
Charge for the year
46,606
23,404
101,583
24,744
196,337
Disposals
( 68,102)
( 48,105)
( 27,282)
( 143,489)
Exchange rate adjustments
(1,277)
(15,638)
(5,365)
(6,305)
(28,585)
------------
---------
---------
---------
------------
At 31 December 2023
485,571
194,946
614,301
224,651
1,519,469
------------
---------
---------
---------
------------
Carrying amount
At 31 December 2023
3,418,117
117,528
321,076
90,654
3,947,375
------------
---------
---------
---------
------------
At 31 December 2022
3,496,940
154,979
284,672
105,805
4,042,396
------------
---------
---------
---------
------------
Company
Freehold Property
Plant & Machinery
Office Equipment, Fixtures & Fittings
Motor Vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
3,223,228
131,336
663,970
196,209
4,214,743
Additions
1,887
149,267
21,488
172,642
Disposals
( 57,261)
( 14,599)
( 71,860)
------------
---------
---------
---------
------------
At 31 December 2023
3,225,115
131,336
755,976
203,098
4,315,525
------------
---------
---------
---------
------------
Depreciation
At 1 January 2023
417,800
49,899
460,708
127,848
1,056,255
Charge for the year
39,331
12,216
85,826
20,410
157,783
Disposals
( 47,453)
( 6,388)
( 53,841)
------------
---------
---------
---------
------------
At 31 December 2023
457,131
62,115
499,081
141,870
1,160,197
------------
---------
---------
---------
------------
Carrying amount
At 31 December 2023
2,767,984
69,221
256,895
61,228
3,155,328
------------
---------
---------
---------
------------
At 31 December 2022
2,805,428
81,437
203,262
68,361
3,158,488
------------
---------
---------
---------
------------
Freehold property includes land at cost £1,259,514 (2022 - £1,259,514) which is not depreciated. Bank loans and overdrafts are secured by charges over all parent company fixed assets.
12. Investments
Group
Other investments other than loans
£
Cost
At 1 January 2023
112,408
Exchange rate adjustments
(819)
---------
At 31 December 2023
111,589
---------
Impairment
At 1 January 2023 and 31 December 2023
---------
Carrying amount
At 31 December 2023
111,589
---------
At 31 December 2022
112,408
---------
Company
Subsidiary Undertakings
Other investments other than loans
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
1,979,697
95,881
2,075,578
------------
--------
------------
Impairment
At 1 January 2023 and 31 December 2023
401,227
401,227
------------
--------
------------
Carrying amount
At 1 January 2023 and 31 December 2023
1,578,470
95,881
1,674,351
------------
--------
------------
At 31 December 2022
1,578,470
95,881
1,674,351
------------
--------
------------
Included in the consolidation are the following subsidiaries:
Nevada Blanket Manufacturing (Xiamen) Co Ltd whose registered office is Floor 4, No. 362-1 Shangtouting Road, Guannan Industrial Zone, Jimei District, Xiamen City, China. Previously they were at 399 Shangtouting Road, Guannan Industrial Zone, Jimei District, Xiamen City, China.
Shires Equestrian Inc whose registered office is 38 Beede Road, Epping, New Hampshire, US.
36 BR Realty, Inc. whose registered office is 38 Beede Road, Epping, New Hampshire, US.
Shires Equestrian (Ireland) Limited whose registered office is Cloughbawn Bridge, Clonroche, Enniscorthy, Wexford, Ireland.
Other significant holdings consist of the following:
Nantong Mario Lentini Garment Decoration Co Ltd whose registered office is 58 Haitong Road, Pingdong Industrial Park, Tongzhou, Nantong, Jiangsu, China.
Subsidiaries and other investments
Details of the investments in which the group and the parent company have an interest of 20% or more are as follows:
Class of share
Percentage of shares held
Subsidiary undertakings
Nevada Blanket Manufacturing (Xiamen) Co Ltd
Issued capital
90.48
Shires Equestrian Inc
Issued capital
100
36 BR Realty, Inc.
Issued capital
100
Shires Equestrian (Ireland) Limited
Issued capital
100
Other significant holdings
Nantong Mario Lentini Garment Decoration Co Ltd
Issued capital
33.3
The results and capital and reserves for group undertakings not included in the consolidated consolidated financial accounts are as follows:
Capital and reserves
Profit/(loss) for the year
2023
2022
2023
2022
£
£
£
£
Other significant holdings
Nantong Mario Lentini Garment Decoration Co Ltd
746,929
807,976
20,930
22,456
---------
---------
--------
--------
13. Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
108,921
297,349
9,477
11,469
Work in progress
137,874
152,793
Finished goods and goods for resale
10,077,779
12,269,482
7,656,987
8,849,513
-------------
-------------
------------
------------
10,324,574
12,719,624
7,666,464
8,860,982
-------------
-------------
------------
------------
Bank loans and overdrafts are secured by charges over all parent company stocks.
14. Debtors
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade debtors
3,281,720
3,959,540
2,502,292
2,995,942
Amounts owed by group undertakings
2,137,461
2,692,498
Prepayments and accrued income
186,378
193,925
110,769
111,503
Corporation tax repayable
13
3,729
3,287
Other debtors
233,012
329,463
226,739
289,299
------------
------------
------------
------------
3,701,123
4,486,657
4,977,261
6,092,529
------------
------------
------------
------------
15. Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans and overdrafts
102,069
27,429
102,069
27,429
Trade creditors
1,966,556
3,000,275
1,497,217
2,248,183
Amounts owed to group undertakings
531,491
475,399
Accruals and deferred income
522,421
435,162
450,701
331,648
Corporation tax
112,742
471,748
147,688
513,821
Social security and other taxes
612,276
607,766
597,594
591,534
Obligations under finance leases and hire purchase contracts
278
278
Directors current accounts
22,408
652,824
22,408
652,824
Other creditors
139,986
174,146
61,429
43,921
------------
------------
------------
------------
3,478,458
5,369,628
3,410,597
4,885,037
------------
------------
------------
------------
The bank loans and overdrafts totalling £102,069 (2022 - £27,429) are secured by:
a charge over 15 Southern Avenue, Hereford, HR6 0QF; a charge over 2 Southern Avenue, Hereford, HR6 0QF; and a charge over all other assets of the parent company.
16. Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans and overdrafts
366,016
366,016
---------
----
---------
----
The bank loans and overdrafts totalling £366,016 (2022 - £Nil) are secured by:
a charge over 15 Southern Avenue, Hereford, HR6 0QF; a charge over 2 Southern Avenue, Hereford, HR6 0QF; and a charge over all other assets of the parent company.
A new bank loan, the balance of which is £468,085 (2022 - £Nil), matures on 1 February 2028 and is repayable by instalments. Interest on the loan is charged at 1.8% above the bank's base rate. The other bank loan, the balance of which is £Nil (2022 - £27,429) matured on 22 September 2023 and was repayable by instalments. Interest on the loan was charged at 1.5% above the bank's base rate.
17. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Not later than 1 year
278
278
----
----
----
----
18. Provisions for liabilities
Group and company
Deferred tax (note 19)
£
At 1 January 2023
65,923
Additions
10,357
--------
At 31 December 2023
76,280
--------
19. Deferred tax
The deferred tax included in the statement of financial position is as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Included in provisions for liabilities (note 18)
76,280
65,923
76,280
65,923
--------
--------
--------
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
Group
Company
2023
2022
2023
2022
£
£
£
£
Accelerated capital allowances
76,280
65,923
76,280
65,923
--------
--------
--------
--------
The amount of the reversal of deferred tax relating to accelerated capital allowances on tangible fixed assets expected to occur next year is £20,697 (2022 - £18,092). There is no expiry date on these timing differences.
20. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 133,095 (2022: £ 99,226 ).
21. Financial instruments
The carrying amount for each category of financial instrument is as follows:
Financial liabilities measured at fair value through profit or loss
Group
Company
2023
2022
2023
2022
£
£
£
£
Financial liabilities measured at fair value through profit or loss
61,429
43,921
61,429
43,921
--------
--------
--------
--------
The change in fair value recognised in the profit & loss for the year is a loss of £17,508 (2022 - £49,270). Derivative financial assets and liabilities measured at fair value through profit and loss comprises forward foreign currency contracts to hedge currency exposure on future commitments. The fair values of the assets held at fair value through profit and loss at the balance sheet date are determined using quoted prices. Where quoted prices are not available for derivatives the fair value of derivatives has been calculated by discounting the expected future cash flows at prevailing interest rates.
22. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
5,700
5,700
5,700
5,700
-------
-------
-------
-------
23. Reserves
Capital redemption reserve - this reserve records the nominal value of shares repurchased by the parent company. Profit and loss account - this reserve records retained earnings and accumulated losses. Non-controlling interests - this reserve records the parts of Nevada Blanket Manufacturing (Xiamen) Co Ltd's equity not owned within the group.
24. Analysis of changes in net debt
At 1 Jan 2023
Cash flows
At 31 Dec 2023
£
£
£
Cash at bank and in hand
2,084,141
3,049,964
5,134,105
Debt due within one year
(27,707)
(74,362)
(102,069)
Debt due after one year
(366,016)
(366,016)
------------
------------
------------
2,056,434
2,609,586
4,666,020
------------
------------
------------
M. J. Ainge & Co. Limited
Notes to the Consolidated Financial Accounts (continued)
Year ended 31 December 2023
25. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Not later than 1 year
54,984
57,850
Later than 1 year and not later than 5 years
91,639
154,267
---------
---------
----
----
146,623
212,117
---------
---------
----
----
26. Contingencies
Contingencies include a bond, guarantees and indemnities facility of £200,000 in favour of HM Revenue and Customs.
27. Events after the end of the reporting period
Economic trends continue to present a few challenges for this group and other similar groups. It is expected that the group profit before tax for the year ended 31 December 2024 will be similar to 2023.
28. Related party transactions
Group
The group is under the control of Mr M J Ainge. During the year the group bought purchases totalling £406,502 (2022 - £220,358) from a company in which it holds a participating interest. Included in creditors is £45,763 (2022 - £48,149) owed to this company. During the year the group sold goods totalling £8,893 (2022 - £13,615) to a company under the control of the wife of a director. Included in debtors is £4,481 (2022 - £1,488) owed by this company. During the year the group sold goods totalling £61,446 (2022 - £63,805) to a company under the control of the daughter and son-in-law of the controlling shareholder. Included in debtors is £14,841 (2022 - £11,328) owed by this company. During the year the group sold goods totalling £5,479 (2022 - £3,549) to, and bought purchases totalling £83,349 (2022 - £147,977) from, a company under the control of a director. Included in debtors is £4,582 (2022 - £2,302) owed by this company and included in creditors is £11,239 (2022 - £19,542) owed to this company. During the year the group sold goods totalling £4 (2022 - £Nil) to a director. Included in debtors is (£168) (2022 - £Nil) owed by this director. During the year the group paid rent totalling £59,515 (2022 - £59,057) to a company under the control of the controlling shareholder. M.J.Ainge & Co. Limited charged interest at a rate of 4% totalling £9,475 (2022 - £11,937) on the amount owed by this company. Included in debtors is £226,739 (2022 - £256,300) owed by this company. During the year the group used premises owned by the wife of a director and paid £14,885 (2022 - £14,368) in rent. During the year the group paid £16,358 (2022 - £32,856) interest to the controlling shareholder. Included in creditors is £25,200 (2022 - £506,221) owed to the controlling shareholder and his wife, both directors of the company. Included in creditors is (£2,792) (2022 - £146,603) owed to the other directors of the company.
Company
The company is under the control of Mr M J Ainge. During the year the company bought purchases totalling £1,360,328 (2022 - £2,664,510) from a subsidiary company. Included in creditors is £531,491 (2022 - £475,399) owed to this company. During the year the company sold goods totalling £60,126 (2022 - £26,211) to and received management charge income totalling £98,654 (2022 - £40,267) from, a subsidiary company. Included in debtors is £884,588 (2022 - £1,211,607) owed by this company. During the year the company bought purchases totalling £406,502 (2022 - £151,131) from a company in which it holds a participating interest. Included in creditors is £45,763 (2022 - £48,149) owed to this company. During the year the company sold goods totalling £8,893 (2022 - £13,615) to a company under the control of the wife of a director. Included in debtors is £4,481 (2022 - £1,488) owed by this company. During the year the company sold goods totalling £61,446 (2022 - £63,805) to a company under the control of the daughter and son-in-law of the controlling shareholder. Included in debtors is £14,841 (2022 - £11,328) owed by this company. During the year the company sold goods totalling £4,052 (2022 - £228) to, and bought purchases totalling £67,552 (2022 - £123,214) from, a company under the control of a director. Included in debtors is £3,961 (2022 - £2,302) owed by this company and included in creditors is £4,269 (2022 - £19,542) owed to this company. During the year the company charged interest at a rate of 4% totalling £9,475 (2022 - £11,937) on the amount owed by a company under the control of the controlling shareholder. Included in debtors is £226,739 (2022 - £256,300) owed by this company. During the year the company used premises owned by the wife of a director and paid £Nil (2022 - £6,962) in rent. During the year the company paid £16,358 (2022 - £32,856) interest to the controlling shareholder. Included in creditors is £25,200 (2022 - £506,221) owed to the controlling shareholder and his wife, both directors of the company. Included in creditors is (£2,792) (2022 - £146,603) owed to the other directors of the company. During the year the company sold goods totalling £863,825 (2022 - £517,250) , transferred assets with a NBV of £Nil (2022 - £43,877) and transferred stock totalling £Nil (2022 - £414,551) to the recently formed company and subsidiary. The company received management charge income totalling £216,731 (2022 - £149,374) from the company and included in debtors is £719,595 (2022 - £891,084) owed from this company. During the year the company received loan interest from a further subsidiary totalling £23,678 (2022 - £17,798). Included in debtors is £533,279 (2022 - £589,807) owed by this subsidiary.