Registration number:
Muller Precision Limited
for the Year Ended 31 March 2024
Muller Precision Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Statement of Comprehensive Income |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
Muller Precision Limited
Company Information
Directors |
C Walker S Lock A H Cunningham P R Bethell E R Jackson P Malik K Malik |
Company secretary |
C Walker |
Registered office |
|
Bankers |
|
Auditors |
|
Muller Precision 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 group is a holding company. The Group is principaly engaged in the manufacture and supply of precision machined components and assesmblies to a wide variety of industries.
Fair review of the business
The Directors decision to restructure the operations 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 Group to pay off the CIBIL loans, reducing the interest burden on the wider group and improve the liquidity and cashflow position.
The Group's performance has improved, showing an operating profit of £25,502 compared to a loss of £304,501 for 2023. The adjusted EBITDA generated has also improved year on year – £686,568 EBITDA is reported in the 2024 accounts, this compared to £506,782 in 2023. The gross margin generated by the Group in the year 2024 is 12.79%, showing a significant improvement from the 9.3% 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.
Muller India continutes to trade profitably and the 2024-25 results are expected to continue to generate profits.
The directors focus on the turnover, gross margin achieved, operating profit generated and EBITDA as key financial performance indicators for the Group’s performance.
The group's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2024 |
2023 |
Turnover |
£'000s |
11,070 |
13,212 |
Operating profit/(loss) |
£'000s |
26 |
(305) |
Gross margin |
% |
13 |
9 |
Adjusted EBITDA |
£'000s |
687 |
507 |
Adjusted EBITA comprises earnings before interest, tax, depreciation and amortisation, before exceptional item and defined benefit pension scheme costs expensed through profit and loss and before share of proifit from joint ventures.
Muller Precision 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 Group 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 Group 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 Precision Limited
Directors' Report for the Year Ended 31 March 2024
The directors present their report and the for the year ended 31 March 2024.
Directors of the group
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The Group 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 Group's principal financial instruments comprise bank loans and hire purchase contracts. The main purpose of these financial instruments is to raise finance for the Group's operations. The Group has various other financial instruments such as trade debtors and creditors, which arise directly from its operations.
The Group does not enter into derivative transations.
The main risks arising from the Group'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 Group's exposure to market risk for changes in interest rates relates primarily to the Group's debt obligations. The Group's policy is to manage its interest cost using a mix of fixed and variable rate debts. The Group finances some of its assets and general running of the business via hire purchase contracts, overdrafts and invoice discounting facility respectively.
Liquidity risk - the Group'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 Group seeks to manage credit risk by only selling to reputable and credit worthy customers. New customers have background, credit and references checked.
Muller Precision 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 Group 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 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 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 £4,163,016, which is a similar position to 2023 of £4,217,828. 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 £698,416 from £947,728 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 Group in line with actuarial advice. Pension contributions have been agreed through to October 2027 and only modest increased agreed during the intervening periods.
Muller Precision Limited
Directors' Report for the Year Ended 31 March 2024
Disclosure of information to the auditor
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 auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved and authorised by the
......................................... |
Muller Precision 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Muller Precision Limited
Independent Auditor's Report to the Members of Muller Precision Limited
Opinion
We have audited the financial statements of Muller Precision Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2024 and of the group's profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 group'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 Precision Limited
Independent Auditor's Report to the Members of Muller Precision 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 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 Precision Limited
Independent Auditor's Report to the Members of Muller Precision 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 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 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 Precision Limited
Independent Auditor's Report to the Members of Muller Precision 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
Cleobury Mortimer
DY14 8DQ
Muller Precision Limited
Consolidated 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) |
|
( |
|
Interest payable and similar expenses |
( |
( |
|
Share of profit of equity accounted investees |
|
|
|
Profit/(loss) before tax |
|
( |
|
Tax on profit/(loss) |
( |
( |
|
Profit/(loss) for the financial year |
|
( |
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
( |
Muller Precision Limited
Consolidated Statement of Comprehensive Income for the Year Ended 31 March 2024
2024 |
2023 |
|
Profit/(loss) for the year |
|
( |
Surplus on property, plant and equipment revaluation |
- |
|
Remeasurement (loss)/gain on defined benefit pension schemes |
( |
|
Share of associates and joint ventures other comprehensive income |
|
|
(254,361) |
1,981,360 |
|
Total comprehensive income for the year |
( |
|
Total comprehensive income attributable to: |
||
Owners of the company |
( |
|
Muller Precision Limited
(Registration number: 10878120)
Consolidated Balance Sheet as at 31 March 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
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) |
5,342,416 |
5,311,328 |
|
Pension liability |
(4,644,000) |
(4,363,600) |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
38,108 |
38,108 |
|
Share premium reserve |
144,502 |
144,502 |
|
Revaluation reserve |
276,593 |
276,593 |
|
Other reserves |
341,944 |
341,944 |
|
Retained earnings |
(102,731) |
146,581 |
|
Equity attributable to owners of the company |
698,416 |
947,728 |
|
Shareholders' funds |
698,416 |
947,728 |
Muller Precision Limited
(Registration number: 10878120)
Consolidated Balance Sheet as at 31 March 2024
Approved and authorised by the
......................................... |
......................................... |
Muller Precision Limited
(Registration number: 10878120)
Balance Sheet as at 31 March 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Investments |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
38,108 |
38,108 |
|
Share premium reserve |
144,502 |
144,502 |
|
Other reserves |
341,944 |
341,944 |
|
Retained earnings |
(224,539) |
(197,165) |
|
Shareholders' funds |
300,015 |
327,389 |
The company made a loss after tax for the financial year of £27,374 (2023 - loss of £35,225).
Approved and authorised by the
......................................... |
......................................... |
Muller Precision Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 March 2024
Equity attributable to the parent company
Share capital |
Share premium |
Revaluation reserve |
Other reserves |
Retained earnings |
Total |
Total equity |
|
At 1 April 2023 |
|
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
- |
|
|
|
Other comprehensive income |
- |
- |
- |
- |
( |
( |
( |
Total comprehensive income |
- |
- |
- |
- |
( |
( |
( |
At 31 March 2024 |
|
|
|
|
( |
|
|
Share capital |
Share premium |
Revaluation reserve |
Other reserves |
Retained earnings |
Total |
Total equity |
|
At 1 January 2022 |
|
|
|
|
( |
( |
( |
Loss for the year |
- |
- |
- |
- |
( |
( |
( |
Other comprehensive income |
- |
- |
|
- |
|
|
|
Total comprehensive income |
- |
- |
|
- |
|
|
|
At 31 March 2023 |
38,108 |
144,502 |
276,593 |
341,944 |
146,581 |
947,728 |
947,728 |
Muller Precision Limited
Statement of Changes in Equity for the Year Ended 31 March 2024
Share capital |
Share premium |
Other reserves |
Retained earnings |
Total |
|
At 1 April 2023 |
|
|
|
( |
|
Loss for the year |
- |
- |
- |
( |
( |
At 31 March 2024 |
|
|
|
( |
|
Share capital |
Share premium |
Other reserves |
Retained earnings |
Total |
|
At 1 January 2022 |
|
|
|
( |
|
Loss for the year |
- |
- |
- |
( |
( |
At 31 March 2023 |
38,108 |
144,502 |
341,944 |
(197,165) |
327,389 |
Muller Precision Limited
Consolidated Statement of Cash Flows for the Year Ended 31 March 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit/(loss) for the year |
|
( |
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
( |
|
Finance costs |
|
|
|
Share of profit/loss of equity accounted investees |
( |
( |
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Increase in stocks |
( |
( |
|
Decrease/(increase) in debtors |
|
( |
|
Increase in creditors |
|
|
|
Decrease in retirement benefit obligation net of actuarial changes |
( |
( |
|
Cash generated from operations |
|
( |
|
Income taxes received |
- |
|
|
Net cash flow from operating activities |
|
( |
|
Cash flows from investing activities |
|||
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Dividend income |
|
|
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Repayment of bank borrowing |
( |
( |
|
New finance leases |
|
- |
|
Repayments to finance lease creditors |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
Cash and cash equivalents at 1 April |
( |
( |
|
Cash and cash equivalents at 31 March |
(1,368,999) |
(1,487,541) |
Muller Precision 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 exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements..
Muller Precision Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2024.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Muller Precision 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 Group 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 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 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 £4,163,016, which is a similar position to 2023 of £4,217,828. 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 £698,416 from £947,728 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 Group in line with actuarial advice. Pension contributions have been agreed through to October 2027 and only modest increased agreed during the intervening periods.
Muller Precision 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.
Related party loans
The unsecured loans due to shareholders are interest free and repayable over a variable period depending upon the profitability of the Group and its cashlow availability. The term of the loan has been estimated upon projected repayment dates and amounts and the interest rate applicable to the loan has been determined by reference to the market rate of interest for loans of this nature. The loans have been discounted on this basis to present value, and the deemed interest element of the loans is amortised to the statement of comprehensive income over the term of the loan..
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 group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group 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 group's activities.
Muller Precision Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
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 group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated 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 improvements |
over the term of the lease |
Plant, equipment and motor vehicles |
5-20% per annum |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Muller Precision Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
10 years, straight line. |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
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 group will not be able to collect all amounts due according to the original terms of the receivables.
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 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.
Muller Precision Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
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 group 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 group 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.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group 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.
Muller Precision Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Turnover |
The analysis of the group's turnover for the year from continuing operations is as follows:
2024 |
2023 |
|
Sale of goods |
|
|
Other revenue |
- |
|
|
|
The analysis of the group's turnover for the year by market is as follows:
2024 |
2023 |
|
UK |
|
|
Rest of Europe |
|
|
Rest of World |
|
|
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2024 |
2023 |
|
Rent receivable |
|
|
Other gains and losses |
The analysis of the group's other gains and losses for the year is as follows:
2024 |
2023 |
|
Gain on disposal of tangible assets |
|
|
Muller Precision Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Operating profit/(loss) |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Foreign exchange losses/(gains) |
|
( |
Profit on disposal of property, plant and equipment |
( |
( |
Interest payable and similar expenses |
2024 |
2023 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Other finance costs |
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Redundancy costs |
|
- |
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Production |
|
|
Administration and support |
|
|
|
|
Muller Precision Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Directors' remuneration |
The directors' remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
318,722 |
358,168 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2024 |
2023 |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
2024 |
2023 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
Auditors' remuneration |
2024 |
2023 |
|
Audit of these financial statements |
25,000 |
42,550 |
Other fees to auditors |
||
All other non-audit services |
- |
|
Muller Precision Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2024 |
2023 |
|
Current taxation |
||
UK corporation tax |
( |
( |
UK corporation tax adjustment to prior periods |
- |
( |
(30,000) |
(32,857) |
|
Foreign tax |
|
|
Total current income tax |
65,882 |
54,419 |
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Arising from changes in tax rates and laws |
- |
( |
Total deferred taxation |
|
( |
Tax expense 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:
2024 |
2023 |
|
Profit/(loss) before tax |
|
( |
Corporation tax at standard rate |
|
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Effect of foreign tax rates |
|
|
UK deferred tax credit relating to changes in tax rates or laws |
- |
( |
Deferred tax expense from unrecognised tax loss or credit |
|
|
Deferred tax credit from unrecognised temporary difference from a prior period |
- |
( |
Decrease in UK and foreign current tax from adjustment for prior periods |
- |
( |
Tax 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 charge |
|
|
Muller Precision Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Factors affecting future tax charge
The Group 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 Group.
Intangible assets |
Group
Goodwill |
Total |
|
Cost or valuation |
||
At 1 April 2023 |
|
|
At 31 March 2024 |
|
|
Amortisation |
||
At 1 April 2023 |
|
|
Amortisation charge |
|
|
At 31 March 2024 |
|
|
Carrying amount |
||
At 31 March 2024 |
|
|
At 31 March 2023 |
|
|
Muller Precision Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Tangible assets |
Group
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 group's Freehold Property was revalued on
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £
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, equipment and motor vehicles |
564,286 |
735,527 |
Muller Precision Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Investments |
Group
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2024 |
2023 |
|||
Joint ventures |
||||
|
C-198 Defence Colony, New Delhi, South Delhi, Dehli |
|
|
|
India |
Aggregate financial information of joint ventures
2024 |
2023 |
|
Group's share of profit or loss in joint ventures |
|
|
Group's share of joint ventures net assets |
|
|
Company
2024 |
2023 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 April 2023 |
|
Provision |
|
Carrying amount |
|
At 31 March 2024 |
|
At 31 March 2023 |
|
Muller Precision Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2024 |
2023 |
|||
Subsidiary undertakings |
||||
|
High Street, Cleobury Mortimer, Kidderminster, Worcestershire, DY14 8DT |
|
|
|
|
High Street, Cleobury Mortimer, Kidderminster, Worcestershire, DY14 8DT |
|
|
|
|
Barleet Road, Washford Industrial Estate, Redditch, Worcestershire, B98 0DG |
|
|
|
|
High Street, Cleobury Mortimer, Kidderminster, Worcestershire, DY14 8DT |
|
|
|
|
High Street, Cleobury Mortimer, Kidderminster, Worcestershire, DY14 8DT |
|
|
|
|
High Street, Cleobury Mortimer, Kidderminster, Worcestershire, DY14 8DT |
|
|
|
|
High Street, Cleobury Mortimer, Kidderminster, Worcestershire, DY14 8DT |
|
|
|
Subsidiary undertakings |
Muller Holdings Limited The principal activity of Muller Holdings Limited is |
Muller England Limited The principal activity of Muller England Limited is |
Muller Precision Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Muller Redditch Limited The principal activity of Muller Redditch Limited is |
Muller Birmingham Limited The principal activity of Muller Birmingham Limited is |
Muller Cleobury Mortimer Limited The principal activity of Muller Cleobury Mortimer Limited is |
Muller & Company (England) Limited The principal activity of Muller & Company (England) Limited is |
Muller South Wales Limited The principal activity of Muller South Wales Limited is |
Stocks |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Raw materials and consumables |
|
|
- |
- |
Work in progress |
|
|
- |
- |
Finished goods and goods for resale |
|
|
- |
- |
|
|
- |
- |
Group
Impairment of inventories
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 Precision Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Debtors |
Group |
Company |
||||
Current |
Note |
2024 |
2023 |
2024 |
2023 |
Trade debtors |
|
|
- |
- |
|
Amounts owed by related parties |
|
|
- |
- |
|
Other debtors |
|
|
|
|
|
Prepayments |
|
|
|
|
|
Income tax asset |
|
|
- |
- |
|
|
|
|
|
Group |
Company |
||||
Non-current |
Note |
2024 |
2023 |
2024 |
2023 |
Deferred tax assets |
|
|
- |
- |
|
|
|
- |
- |
Non-current 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 Parties
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 |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Cash at bank |
|
|
|
|
Invoice finance facility |
( |
( |
- |
- |
Cash and cash equivalents in statement of cash flows |
(2,778,932) |
(2,984,171) |
54 |
1,089 |
Muller Precision Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Creditors |
Group |
Company |
||||
Note |
2024 |
2023 |
2024 |
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 |
|
|
- |
- |
|
Accruals |
|
|
|
|
|
Income tax liability |
1,254 |
1,254 |
- |
- |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
|
|
The Directors consider the undiscounted balance of amounts owed to/from group undertakings to not be materially different to their fair value
Loans and borrowings include CBILS loans and an invoice financing facility.
The CBILS loans and invoice financing facility are secured by fixed and floating charge over all the Group's freehold property, certain plan and equipment, book debts and other assets and a cross-guarentee from other group entities.
Provisions for liabilities |
Group
Deferred tax |
Total |
|
At 1 April 2023 |
|
|
Charged to profit and loss account |
|
|
At 31 March 2024 |
|
|
|
Muller Precision Limited
Notes to the Financial Statements for the Year Ended 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 Group 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.
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group 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 |
( |
( |
Muller Precision Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
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 |
|
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 |
( |
Adminstration 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 |
|
|
Property |
- |
|
Diversified growth funds |
371,000 |
771,000 |
Gilts |
1,482,000 |
1,549,000 |
|
|
Muller Precision Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Return on scheme assets
2024 |
2023 |
|
Return on scheme assets |
|
|
The pension scheme has not invested in any of the group's own financial instruments or in properties or other assets used by the group.
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 salary 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. |
£ |
|
|
|
38,108 |
|
38,108 |
Muller Precision Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Reserves |
Company
Share premium account
Share premium comprises the amount paid in excess for a share above its nominal value.
Revaluation reserve
The revaluation reserve contains amounts relating to the uplift revaluation of individual freehold properties less the depreciation charge on the uplift charged to the profit and loss reserve.
Profit and loss reserve
Profit and loss account includes all current and prior period retained profit and losses and recognised gains and losses less dividends paid.
Merger relief reserve
Merger relief exemption has not been taken in respext of the shares issued in acquiring 100% owned subsidiaries resulting in shares issued being recognised in the Company's balance sheet at fair value. The difference between the fair value of shares issued amd their par value has been treated as merger relief reserve in accordance with the Companies Act provisions.
Muller Precision Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Loans and borrowings |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Non-current loans and borrowings |
||||
Bank borrowings |
|
|
|
|
Hire purchase contracts |
|
|
- |
- |
Other borrowings |
|
|
|
|
|
|
|
|
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Current loans and borrowings |
||||
Bank borrowings |
|
|
|
|
Invoice financing facility |
|
|
- |
- |
Hire purchase contracts |
|
|
- |
- |
Other borrowings |
|
|
|
|
|
|
|
|
Interest free, unsecured loan notes, included in other borrowings, were issued to certain shareholders of Muller Holdings Limited amounting to a face value of £624,287 upon acquistion by the Company and are repayable by installment on 30 June each calender year based on profitability achieved during the previous calendar year subject to the Company having sufficient cash reserves after allowing for the working capital needs of the Company to make the payment.
At 31 March 2024 the loan notes had a face value of £359,089 (2023: £379,089) and a book value of £300,778 (2023: £320,778) as a result of being recognised at their discounted cash flow amount on acquisition based on a market rate of interest of 7.5%. An interest charge of £nil (2023: £nil) has been charged to the profit and loss account in respect of the recalculation of this discount due to a change in the expected timing of repayments.
The Directors expect these loans to be repaid by October 2027 and hence repayble in less than 4 years and the repayment of the debt is dependent on the performance of the Group as detailed above.
Muller Precision Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Obligations under leases and hire purchase contracts |
Group
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 £
Contingent liabilities |
Company
The Company is party to a cross-guarentee arrangement serving the bank facilities of Muller England Limited. At the year end the Company's maximum exposure for these debts was £1,409,934 (2023: £1,538,205).
Muller Precision Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Analysis of changes in net debt |
Group
At 1 April 2023 |
Financing cash flows |
New finance leases |
Other non-cash changes |
At 31 March 2024 |
|
Cash and cash equivalents |
|||||
Cash |
9,089 |
31,845 |
- |
- |
40,934 |
Invoice financing facility |
(1,496,630) |
86,697 |
- |
- |
(1,409,933) |
(1,487,541) |
118,542 |
- |
- |
(1,368,999) |
|
Borrowings |
|||||
Long term borrowings |
(416,797) |
- |
- |
145,610 |
(271,187) |
Short term borrowings |
(281,438) |
129,762 |
- |
(145,610) |
(297,286) |
Lease liabilities |
(129,589) |
84,885 |
(154,756) |
- |
(199,460) |
(827,824) |
214,647 |
(154,756) |
- |
(767,933) |
|
|
|||||
( |
|
( |
- |
( |
Short and long term borrowings include CBILS loans. £380,000 was drawn down in June 2020 with an interest rate of 2.5% above base rate and £250,000 was drawn down in August 2020 with an interest rate of 3% above base rate. Both loans are repayble over 6 years and are guarenteed by the UK Government and secured by a fixed and floating charge over the assets of the group.
Muller Precision Limited
Notes to the Financial Statements for the Year Ended 31 March 2024
Related party transactions |
Key management compensation
2024 |
2023 |
|
Salaries and other short term employee benefits |
|
|
Summary of transactions with other related parties
Included within debtors due within one year in the consolidated balance sheet are amounts owed from directors of the company amounting to £75,000 (2023: £75,000), these are in respect of loans to purchase shares in the group.
Included within creditors in the consolidated balance sheet are non-interest bearing loan notes totalling £359,089 (2023: £379,089). Of this £118,666 (2023: £125,274) is due to the directors of the group and £240,423 (2023: £253,815) is due to former directors.
Parent and ultimate parent undertaking |
The ultimate parent is
Preci Turn Private Limited is considered to be the ultimate controlling party.