Registration number:
Muller England Limited
for the Year Ended 31 March 2024
Muller England Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Statement of Comprehensive Income |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Notes to the Financial Statements |
Muller England Limited
Company Information
Directors |
C Walker S Lock E R Jackson A H Cunningham |
Company secretary |
C Walker |
Registered office |
|
Bankers |
|
Auditors |
|
Muller England Limited
Strategic Report for the Year Ended 31 March 2024
The directors present their strategic report for the year ended 31 March 2024.
Principal activity
The principal activity of the company is principally engaged in the manufacture and supply of precision machined components and assemblies to a wide variety of industries.
Fair review of the business
The Directors decision to restructure the company in 2021 has been finalised in 2024, with the final redundancy cost incurred of £56k. The sale of the factory site at Cleobury Mortimer was finalised in June 2024 and the proceeds received from this have enabled the company to pay off the CIBIL loans of the group, reducing the interest burden on the wider group and improve the liquidity and cashflow position.
The Company’s performance has improved, showing an operating profit of £239,144 compared to a loss of £46,425 for 2023. The EBITDA generated has also improved year on year – £688,000 EBITDA is reported in the 2024 accounts, this compared to £500,000 in 2023. The gross margin generated by the Company in the year 2024 is 12.79%, showing a significant improvement from the 9.03% reported in 2023, this reflects the efforts to restructure and streamline the operations of the company, making a more efficient and profitable business.
Going forward the Directors are looking to continue to monitor and cut costs wherever possible and continue to concentrate the efforts of the business on higher margin work to aid further profitability growth in the coming financial years, the sale of the Cleobury Mortimer site as referred to above will aid this process.
The directors focus on the turnover, gross margin achieved, operating profit generated and EBITDA as key financial performance indicators for the Company’s performance.
The company's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2024 |
2023 |
Turnover |
£'000s |
11,070 |
13,170 |
Operating profit/(loss) |
£'000s |
239 |
(46) |
Adjusted EBITDA |
£'000s |
688 |
500 |
Gross margin |
% |
13 |
9 |
Adjusted EBITA comprises earnings before interest, tax, depreciation and amortisation, before exceptional item and defined benefit pension scheme costs expensed through profit and loss.
Muller England Limited
Strategic Report for the Year Ended 31 March 2024
Principal risks and uncertainties
The principal risks and uncertainties relating to financial instruments are discussed and detailed in the directors report.
Defined Benefit Pension Scheme Risk - the Company is funding the past service benefit of a Defined Benefit Pension Scheme for employees with service prior to 2001. The deficit is a long term liability and the Company seeks to manage the risk by engaging professional and independant personnel to manage and administer the Sceme and by maintaining a close working relationship with the Trustees of the Scheme. Contribution levels to the Scheme have been agreed with the Scheme actuaries to October 2027, at which time these will be reassesed based on an updated valuation to be carries out at that time.
Approved and authorised by the
......................................... |
Muller England Limited
Directors' Report for the Year Ended 31 March 2024
The directors present their report and the financial statements for the year ended 31 March 2024.
Directors of the company
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The Company exports a proportion of its turnover and manages the associated foreign exchange risk on a commercial basis with its customers and offsetting against purchases where possible.
The Company's principal financial instruments comprise bank loans and hire purchase contracts. The main purpose of these financial instruments is to raise finance for the Company's operations. The Company has various other financial instruments such as trade debtors and creditors, which arise directly from its operations.
The Company does not enter into derivative transations.
The main risks arising from the Company's financial instruments are interest rate risk, liquidity risk and credit risk. The board reviews and agrees policies for managing each oif these risks and these are summarised below.
Price risk, credit risk, liquidity risk and cash flow risk
Interest rate risk - the Company's exposure to market risk for changes in interest rates relates primarily to the Company's debt obligations. The Company's policy is to manage its interest cost using a mix of fixed and variable rate debts. The Company finances some of its assets and general running of the business via hire purchase contracts, overdrafts and invoice discounting facility respectively.
Liquidity risk - the Company's objective is to maintain a balance between continuity of funding and flexibility through use of overdrafts, invoice discounting facilities and hire purchase contracts.
Credit risk - the Company seeks to manage credit risk by only selling to reputable and credit worthy customers. New customers have background, credit and references checked.
Muller England Limited
Directors' Report for the Year Ended 31 March 2024
Going concern
The Directors have reviewed the forecast for 31 March 2025 and beyond and based on the current order book and sales expectations, have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future.
The draft management accounts produced during the year to date show a further improvement in gross margin generated, together with a pleasing level of profitability.
Throughout the period post year end the Company and wider group have continued to trade within short term funding facilities and paying creditors when they fall due, this is expected to continue. The cashflow and debt position of the Company and wider group have also been improved significantly following the sale of the Cleobury Mortimer property in June 2024.
The net asset position, excluding the pension liability, and its net deferred tax asset, shows a figure of £2,706,898, which is a similar position to 2023 of £2,815,744. The pension liability was increased by an actuarial loss of £265,500 (net of deferred tax asset increase), whereas in 2023 there was a gain of £1,797,750.
The net asset position including the above had decreased to a deficit of £757,702 from £456,956 reported in 2023. However, this is due mainly to the actuarial losses on the pension scheme, together with an increase in the level of interest payable on the liabilities of the scheme.
The pension liability is a long-term liability that does not affect the day-to-day operation of the business and is funded by the company in line with actuarial advice. Pension contributions have been agreed through to October 2027 and only modest increased agreed during the intervening periods.
Muller England Limited
Directors' Report for the Year Ended 31 March 2024
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved and authorised by the
......................................... |
Muller England Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Muller England Limited
Independent Auditor's Report to the Members of Muller England Limited
Opinion
We have audited the financial statements of Muller England Limited (the 'company') for the year ended 31 March 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its loss for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements 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.
Muller England Limited
Independent Auditor's Report to the Members of Muller England Limited
Opinion on other matter 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and 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 company 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 Statement of Directors' Responsibilities [set out on page 7], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Muller England Limited
Independent Auditor's Report to the Members of Muller England Limited
Auditor Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The engagement partner ensured that the 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 Company through discussions with Directors and other management and from our commercial knowledge and experience of this business sector.
We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence.
We assessed the susceptibility of the Company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud.
Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls we:
Performed analytical procedures to identify any unusual or unexpected relationships.
Assessed whether judgments and assumptions made in determining accounting estimates included in the Accounts 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 enquiring of the Directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error, as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Muller England Limited
Independent Auditor's Report to the Members of Muller England Limited
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.
......................................
For and on behalf of
53 High Street
Worcestershire
DY14 8DQ
Muller England Limited
Profit and Loss Account for the Year Ended 31 March 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Distribution costs |
( |
( |
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit/(loss) |
239,144 |
(46,425) |
|
Interest payable and similar expenses |
( |
( |
|
Loss before tax |
( |
( |
|
Tax on loss |
|
|
|
Loss for the financial year |
( |
( |
The above results were derived from continuing operations.
Muller England Limited
Statement of Comprehensive Income for the Year Ended 31 March 2024
2024 |
2023 |
|
Loss for the year |
( |
( |
Surplus on property, plant and equipment revaluation |
- |
|
Remeasurement (loss)/gain on defined benefit pension schemes |
( |
|
(265,500) |
1,942,750 |
|
Total comprehensive income for the year |
( |
|
Muller England Limited
(Registration number: 01687555)
Balance Sheet as at 31 March 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Stocks |
|
|
|
Debtors: amounts falling due within one year |
|
|
|
Debtors: amounts falling due after more than one year |
1,179,400 |
1,090,900 |
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets excluding pension asset/(liability) |
3,886,298 |
3,906,644 |
|
Pension liability |
(4,644,000) |
(4,363,600) |
|
Net liabilities |
( |
( |
|
Capital and reserves |
|||
Called up share capital |
600,000 |
600,000 |
|
Revaluation reserve |
276,593 |
276,593 |
|
Retained earnings |
(1,634,295) |
(1,333,549) |
|
Shareholders' deficit |
(757,702) |
(456,956) |
Approved and authorised by the
......................................... |
......................................... |
Muller England Limited
Statement of Changes in Equity for the Year Ended 31 March 2024
Share capital |
Revaluation reserve |
Retained earnings |
Total |
|
At 1 April 2023 |
|
|
( |
( |
Loss for the year |
- |
- |
( |
( |
Other comprehensive income |
- |
- |
( |
( |
Total comprehensive income |
- |
- |
( |
( |
At 31 March 2024 |
|
|
( |
( |
Share capital |
Revaluation reserve |
Retained earnings |
Total |
|
At 1 January 2022 |
|
|
( |
( |
Loss for the year |
- |
- |
( |
( |
Other comprehensive income |
- |
|
|
|
Total comprehensive income |
- |
|
|
|
At 31 March 2023 |
600,000 |
276,593 |
(1,333,549) |
(456,956) |
Muller England Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
General information |
The company is a private company limited by share capital, incorporated in United Kingdom.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Summary of disclosure exemptions
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
- the requirements of Section 7 Statement of Cash Flows;
- the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
- the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv) 11.48(b) and 11.48(c);
- the requriements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A; and
- the requirements of Section 33 Related Party Disclosures paragraph 33.7..
Name of parent of group
These financial statements are consolidated in the financial statements of Muller Precision Limited and Muller Holdings Limited.
The financial statements of Muller Precision Limited and Muller Holdings Limited may be obtained from High Street, Cleobury Mortimer, Kidderminster, Worcestershire, DY14 8DT..
Muller England Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Going concern
The financial statements have been prepared on a going concern basis.
The Directors have reviewed the forecast for 31 March 2025 and beyond and based on the current order book and sales expectations, have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future.
The draft management accounts produced during the year to date show a further improvement in gross margin generated, together with a pleasing level of profitability.
Throughout the period post year end the Company and wider group have continued to trade within short term funding facilities and paying creditors when they fall due, this is expected to continue. The cashflow and debt position of the Company and wider group have also been improved significantly following the sale of the Cleobury Mortimer property in June 2024.
The net asset position, excluding the pension liability, and its net deferred tax asset, shows a figure of £2,706,898, which is a similar position to 2023 of £2,815,744. The pension liability was increased by an actuarial loss of £265,500 (net of deferred tax asset increase), whereas in 2023 there was a gain of £1,797,750.
The net asset position including the above had decreased to a deficit of £757,702 from £456,956 reported in 2023. However, this is due mainly to the actuarial losses on the pension scheme, together with an increase in the level of interest payable on the liabilities of the scheme.
The pension liability is a long-term liability that does not affect the day-to-day operation of the business and is funded by the company in line with actuarial advice. Pension contributions have been agreed through to October 2027 and only modest increased agreed during the intervening periods.
Muller England Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Key sources of estimation uncertainty
Trade Debtors
Trade debtors consist of amounts arising from customers. An allowance for doubtful debts is maintained for estimated losses resulting from the inability of the Company's customers to make required payments. The allowance is based on the Company's regular assessment of the credit worthiness and financial conditions of customers.
Tangible fixed assets
Tangible fixed assets are depreciated over their useful lives, taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors.
Defined benefit pension scheme
The Directors have appointed actuaries to provide advice relating to the Muller Retirements and Death Benefits Scheme (1978) ("the scheme") in respect of the accounting disclosures required under 28 of FRS102. Assumptions applied to the valuation of the defined benefit scheme have been detailed within the notes to the financial statements. These are subjective and the directors have based these on advice from the scheme appointed actuaries and advisers.
Stock
Certain factors could affect the net realisable value of the Company's stocks, including customer demand and market conditions. The Company considers usage, anticipated sales price, effect of new product introductions, product obsolescence and other factors when evaluation the value.
Impairment of assets
The directors have assessed the fixed assets for potential impairment, taking intoi account factors such as the condition and value in use of the assets, the Company's planned future use of the assets, and the potential value were the asset to be sold. Following consideration of the future forecasts, the directors have concluded there to be adequate evidence to support the carrying value of the fixed assets, and no impairment is required.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Muller England Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Freehold Property |
2% per annum |
Leasehold Property |
Over the term of the lease |
Plant, equipment and motor |
5-20% per annum |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Muller England Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the weighted average basis method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Muller England Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Turnover |
The analysis of the company's revenue for the year from continuing operations is as follows:
Year ended 31 March 2024 |
1 January 2022 to 31 March 2023 |
|
Sale of goods |
|
|
The analysis of the company's turnover for the year by market is as follows:
Year ended 31 March 2024 |
1 January 2022 to 31 March 2023 |
|
UK |
|
|
Rest of Europe |
1,108,432 |
1,635,338 |
Rest of World |
|
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
Year ended 31 March 2024 |
1 January 2022 to 31 March 2023 |
|
Rent receivable |
|
|
Other gains and losses |
The analysis of the company's other gains and losses for the year is as follows:
Year ended 31 March 2024 |
1 January 2022 to 31 March 2023 |
|
Gain/loss on disposal of property, plant and equipment |
|
|
Muller England Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Operating profit/(loss) |
Arrived at after charging/(crediting)
Year ended 31 March 2024 |
1 January 2022 to 31 March 2023 |
|
Depreciation expense |
|
|
Foreign exchange losses/(gains) |
|
( |
Profit on disposal of property, plant and equipment |
( |
( |
Interest payable and similar expenses |
Year ended 31 March 2024 |
1 January 2022 to 31 March 2023 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Net financing costs on pension scheme |
|
|
|
|
Muller England Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
Year ended 31 March 2024 |
1 January 2022 to 31 March 2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Redundancy costs |
|
- |
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Production |
|
|
Administration and support |
|
|
|
|
Muller England Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Directors' remuneration |
The directors' remuneration for the year was as follows:
Year ended 31 March 2024 |
1 January 2022 to 31 March 2023 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
318,724 |
358,168 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
Year ended 31 March 2024 |
1 January 2022 to 31 March 2023 |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
Year ended 31 March 2024 |
1 January 2022 to 31 March 2023 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
Auditors' remuneration |
Year ended 31 March 2024 |
1 January 2022 to 31 March 2023 |
|
Audit of the financial statements |
|
|
Muller England Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Taxation |
Tax charged/(credited) in the income statement
Year ended 31 March 2024 |
1 January 2022 to 31 March 2023 |
|
Current taxation |
||
UK corporation tax |
( |
( |
UK corporation tax adjustment to prior periods |
- |
( |
(30,000) |
(32,857) |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Arising from changes in tax rates and laws |
- |
( |
Total deferred taxation |
|
( |
Tax receipt in the income statement |
( |
( |
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
Year ended 31 March 2024 |
1 January 2022 to 31 March 2023 |
|
Loss before tax |
( |
( |
Corporation tax at standard rate |
( |
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
- |
|
Deferred tax expense (credit) relating to changes in tax rates or laws |
- |
( |
Deferred tax expense (credit) from unrecognised tax loss or credit |
|
|
Increase (decrease) in UK and foreign current tax from adjustment for prior periods |
- |
( |
Tax increase (decrease) from effect of capital allowances and depreciation |
|
|
Tax increase (decrease) from effect of adjustment in research and development tax credit |
( |
( |
Other tax effects for reconciliation between accounting profit and tax expense (income) |
- |
|
Total tax credit |
( |
( |
Muller England Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Factors affecting future tax charge
The company has carried forward losses to offset against future trading profits. A deferred tax asset of £100,000 (2023: £100,000) has been recognised on a proportion of these losses after taking into account the future projected performance of the Company.
Tangible assets |
Land and buildings |
Other tangible assets |
Total |
|
Cost or valuation |
|||
At 1 April 2023 |
|
|
|
Additions |
- |
|
|
Disposals |
- |
( |
( |
At 31 March 2024 |
|
|
|
Depreciation |
|||
At 1 April 2023 |
|
|
|
Charge for the year |
|
|
|
Eliminated on disposal |
- |
( |
( |
At 31 March 2024 |
|
|
|
Carrying amount |
|||
At 31 March 2024 |
|
|
|
At 31 March 2023 |
|
|
|
Included within the net book value of land and buildings above is £1,102,500 (2023 - £1,125,000) in respect of freehold land and buildings and £21,649 (2023 - £29,550) in respect of long leasehold land and buildings.
Revaluation
The fair value of the company's Freehold Property was revalued on
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £
Muller England Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2024 |
2023 |
|
Plant and machinery |
564,286 |
735,527 |
Investments |
The Company has the following subsidiaries:
Muller & Company (England) Limited
Muller South Wales Limited.
Muller & Company (England) Limited is a 100% owned subsidiary of Muller England Limited. The registered office is High Street, Cleobury Mortimer, Kidderminster, Worcestershire, DY14 8DT. The company was dormant in the year. The value of the investment as at 31 March 2024 is £nil (2023: £nil).
Muller South Wales Limited is an indirect 100% owned subsidiary of Muller England Limited. The registered office is High Street, Cleobury Mortimer, Kidderminster, Worcestershire, DY14 8DT. The company was dormant in the year. The value of the investment as at 31 March 2024 is £nil (2023: £nil).
Stocks |
31 March 2024 |
31 March 2023 |
|
Raw materials and consumables |
|
|
Work in progress |
|
|
Finished goods and goods for resale |
|
|
|
|
Impairment of stocks
The amount of impairment loss included in profit or loss is £36,319 (2023 - £23,577). Impairment loss was recognised in cost of sales against stock during the period due to slow-moving and obsolete stock.
There is no significant difference between the replacement cost of inventory and it's carrying amount.
Muller England Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Debtors |
Current |
Note |
2024 |
2023 |
Trade debtors |
|
|
|
Amounts owed by related parties |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
|
|
An impairment loss of £nil (2023: credit of £28,465) was recognised against trade debtors.
Non-current |
Note |
2024 |
2023 |
Deferred tax assets |
|
|
|
|
|
Details of non-current trade and other debtors
The deferred tax asset has been recognised in respect of the defined benefit pension scheme operated by the company. This will reverse over the life of the scheme and is subject to changes in valuation of the defined benefit obligation.
Related party debtors
The amounts owed by related parties includes amounts owed to the company from group undertakings and joint ventures. These are unsecured, non-interest bearing and are repayable on demand..
Cash and cash equivalents |
31 March 2024 |
31 March 2023 |
|
Cash at bank |
|
|
Invoice finance facility |
( |
( |
( |
( |
Muller England Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Creditors |
Note |
31 March 2024 |
31 March 2023 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Amounts due to related parties |
|
|
|
Social security and other taxes |
|
|
|
Outstanding defined contribution pension costs |
|
|
|
Other payables |
|
|
|
Accrued expenses |
|
|
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
|
|
Amounts due to related parties |
|
|
|
286,466 |
212,295 |
The Directors consider the undiscounted balance of amounts owed to/from group undertakings to not be materially different to their fair value.
Provisions for liabilities |
Deferred tax |
Total |
|
At 1 April 2023 |
|
|
Charged to profit and loss account |
|
|
At 31 March 2024 |
|
|
|
The deferred tax liability comprises of accelerated capital allowances claimed of £461,308 (2023: £458,439), less timing differences on provisions of £3,815 (2023: £15,100), less tax losses carried forward to be recovered against future taxable profits of £100,000 (2023: £100,000).
The Company has a unrecognised deferred tax asset carried forward of approximately £181,000 (2023: £192,000) due to losses carried forward to offset against future taxable profits.
Muller England Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
Defined benefit pension schemes
The scheme provides defined benefits for employees with pensionable service before April 2001. The scheme is closed to new entrants. Benefits earned after that date are on a defined contribution basis and these benefits have been excluded,
The total cost relating to defined benefit schemes for the year recognised in profit or loss as an expense was £312,000 (2023 - £299,000).
The total cost relating to defined benefit schemes for the year included in the cost of an asset was £Nil (2023 - £-).
Reconciliation of scheme assets and liabilities to assets and liabilities recognised
The amounts recognised in the balance sheet are as follows:
2024 |
2023 |
|
Fair value of scheme assets |
|
|
Present value of defined benefit obligation |
( |
( |
Defined benefit pension scheme deficit |
( |
( |
Defined benefit obligation
Changes in the defined benefit obligation are as follows:
2024 |
|
Present value at start of year |
|
Interest cost |
|
Actuarial gains and losses |
|
Benefits paid |
( |
Present value at end of year |
|
Muller England Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Fair value of scheme assets
Changes in the fair value of scheme assets are as follows:
2024 |
|
Fair value at start of year |
|
Interest income |
|
Actuarial gains and losses |
( |
Employer contributions |
|
Benefits paid |
( |
Administration costs |
( |
Fair value at end of year |
|
Analysis of assets
The major categories of scheme assets are as follows:
2024 |
2023 |
|
Cash and cash equivalents |
|
|
Equity instruments |
|
|
Corporate Bonds |
|
|
Diversified Growth Funds |
|
|
Gilts |
1,482,000 |
1,549,000 |
Property |
- |
61,600 |
|
|
Return on scheme assets
2024 |
2023 |
|
Return on scheme assets |
( |
( |
The pension scheme has not invested in any of the company's own financial instruments or in properties or other assets used by the company.
Muller England Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Principal actuarial assumptions
The principal actuarial assumptions at the balance sheet date are as follows:
2024 |
2023 |
|
Proportion of employees opting for early retirement |
|
|
Discount rate |
|
|
Future pension increases |
|
|
Inflation |
|
|
Post retirement mortality assumptions
2024 |
2023 |
|
Current UK pensioners at retirement age - male |
20.00 |
20.00 |
Current UK pensioners at retirement age - female |
22.00 |
23.00 |
Future UK pensioners at retirement age - male |
21.00 |
21.00 |
Future UK pensioners at retirement age - female |
23.00 |
24.00 |
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
600,000 |
|
600,000 |
Muller England Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Reserves |
Revaluation reserve
The revaluation reserve contains amounts relating to the uplift revaluation of individual freehold properties less the depreciation charge on the uplift transferred to the profit and loss account.
Profit and loss account
Profit and loss account includes all current and prior period retained profits and losses and recognised gains and losses.
Loans and borrowings |
31 March 2024 |
31 March 2023 |
|
Non-current loans and borrowings |
||
HP and finance lease liabilities |
|
|
31 March 2024 |
31 March 2023 |
|
Current loans and borrowings |
||
HP and finance lease liabilities |
|
|
Invoice finance facility |
|
|
|
|
The invoice facility is secured by a fixed and floating charge over the Company's freehold premises, certain plant and equipment, the book debts and any other assets and a cross guarentee for other Group companies.
Muller England Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Obligations under leases and hire purchase contracts |
Finance leases
Liabilities relating to finance lease agreements are secured against the asset to which the finance relates.
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Financial guarantee contracts |
The Company is party to a cross guarentee arrangement for the bank loans of the Group. At the year end the Company's maximum exposure for these debts was £267,695 (2023 - £377,457).
Muller England Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Related party transactions |
Key management compensation paid during the period amounted to £354,775 (2023: £403,063).
Amounts owed to related parties includes amounts owed to group undertakings and joint ventures. These amounts are unsecured, non-interest bearing and are repayable on demand.
Parent and ultimate parent undertaking |
The company's immediate parent is
The ultimate parent is
The ultimate controlling party is
The parent of the largest group in which these financial statements are consolidated is
The parent of the smallest group in which these financial statements are consolidated is