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Registration number: 10878120

Muller Precision Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 31 March 2024

 

Muller Precision Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 6

Statement of Directors' Responsibilities

7

Independent Auditor's Report

8 to 11

Consolidated Profit and Loss Account

12

Consolidated Statement of Comprehensive Income

13

Consolidated Balance Sheet

14 to 15

Balance Sheet

16

Consolidated Statement of Changes in Equity

17

Statement of Changes in Equity

18

Consolidated Statement of Cash Flows

19

Notes to the Financial Statements

20 to 45

 

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

High Street
Cleobury Mortimer
Kidderminster
Worcestershire
DY14 8DT

Bankers

Barclays Bank plc
66 Oxford Street
Kidderminster
DY10 1BL

Auditors

Mortimer Childe Services Limited
Chartered Certified Accountants
53 High Street
Cleobury Mortimer
Kidderminster
DY14 8DQ

 

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 Board on 20 November 2024 and signed on its behalf by:
 

.........................................
E R Jackson
Director

 

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:

C Walker - Company secretary and director

S Lock

A H Cunningham

P R Bethell

E R Jackson

P Malik

K Malik

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 Board on 20 November 2024 and signed on its behalf by:
 

.........................................
E R Jackson
Director

 

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.

......................................
Dean Jarman FCCA (Senior Statutory Auditor)
For and on behalf of Mortimer Childe Services Limited, Statutory Auditor

53 High Street
Cleobury Mortimer
Kidderminster
DY14 8DQ

25 November 2024

 

Muller Precision Limited

Consolidated Profit and Loss Account for the Year Ended 31 March 2024

Note

2024
£

2023
£

Turnover

3

11,069,767

13,212,386

Cost of sales

 

(9,653,583)

(11,980,927)

Gross profit

 

1,416,184

1,231,459

Distribution costs

 

(191,992)

(203,505)

Administrative expenses

 

(1,232,440)

(1,416,830)

Other operating income

4

33,750

84,375

Operating profit/(loss)

6

25,502

(304,501)

Interest payable and similar expenses

7

(313,003)

(283,570)

Share of profit of equity accounted investees

 

372,586

277,898

Profit/(loss) before tax

 

85,085

(310,173)

Tax on profit/(loss)

11

(80,036)

(43,635)

Profit/(loss) for the financial year

 

5,049

(353,808)

Profit/(loss) attributable to:

 

Owners of the company

 

5,049

(353,808)

 

Muller Precision Limited

Consolidated Statement of Comprehensive Income for the Year Ended 31 March 2024

2024
£

2023
£

Profit/(loss) for the year

5,049

(353,808)

Surplus on property, plant and equipment revaluation

-

145,000

Remeasurement (loss)/gain on defined benefit pension schemes

(265,500)

1,797,750

Share of associates and joint ventures other comprehensive income

11,139

38,610

(254,361)

1,981,360

Total comprehensive income for the year

(249,312)

1,627,552

Total comprehensive income attributable to:

Owners of the company

(249,312)

1,627,552

 

Muller Precision Limited

(Registration number: 10878120)
Consolidated Balance Sheet as at 31 March 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

12

759,968

972,494

Tangible assets

13

3,642,763

3,611,896

Investments

14

1,169,545

927,786

 

5,572,276

5,512,176

Current assets

 

Stocks

15

1,245,656

1,136,537

Debtors: amounts falling due within one year

16

2,409,524

2,508,955

Debtors: amounts falling due after more than one year

1,179,400

1,090,900

Cash at bank and in hand

 

40,934

9,089

16

4,875,514

4,745,481

Creditors: Amounts falling due within one year

18

(4,338,229)

(4,133,899)

Net current assets

 

537,285

611,582

Total assets less current liabilities

 

6,109,561

6,123,758

Creditors: Amounts falling due after more than one year

18

(409,652)

(469,091)

Provisions for liabilities

19

(357,493)

(343,339)

Net assets excluding pension asset/(liability)

 

5,342,416

5,311,328

Pension liability

20

(4,644,000)

(4,363,600)

Net assets

 

698,416

947,728

Capital and reserves

 

Called up share capital

21

38,108

38,108

Share premium reserve

22

144,502

144,502

Revaluation reserve

22

276,593

276,593

Other reserves

22

341,944

341,944

Retained earnings

22

(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 Board on 20 November 2024 and signed on its behalf by:
 

.........................................
S Lock
Director

.........................................
E R Jackson
Director

 

Muller Precision Limited

(Registration number: 10878120)
Balance Sheet as at 31 March 2024

Note

2024
£

2023
£

Fixed assets

 

Investments

14

2,125,258

2,125,258

Current assets

 

Debtors

16

53,000

53,001

Cash at bank and in hand

 

54

1,089

 

53,054

54,090

Creditors: Amounts falling due within one year

18

(1,595,110)

(1,435,162)

Net current liabilities

 

(1,542,056)

(1,381,072)

Total assets less current liabilities

 

583,202

744,186

Creditors: Amounts falling due after more than one year

18

(283,187)

(416,797)

Net assets

 

300,015

327,389

Capital and reserves

 

Called up share capital

21

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 Board on 20 November 2024 and signed on its behalf by:
 

.........................................
S Lock
Director

.........................................
E R Jackson
Director

 

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

38,108

144,502

276,593

341,944

146,581

947,728

947,728

Profit for the year

-

-

-

-

5,049

5,049

5,049

Other comprehensive income

-

-

-

-

(254,361)

(254,361)

(254,361)

Total comprehensive income

-

-

-

-

(249,312)

(249,312)

(249,312)

At 31 March 2024

38,108

144,502

276,593

341,944

(102,731)

698,416

698,416

Share capital
£

Share premium
£

Revaluation reserve
£

Other reserves
£

Retained earnings
£

Total
£

Total equity
£

At 1 January 2022

38,108

144,502

131,593

341,944

(1,335,971)

(679,824)

(679,824)

Loss for the year

-

-

-

-

(353,808)

(353,808)

(353,808)

Other comprehensive income

-

-

145,000

-

1,836,360

1,981,360

1,981,360

Total comprehensive income

-

-

145,000

-

1,482,552

1,627,552

1,627,552

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

38,108

144,502

341,944

(197,165)

327,389

Loss for the year

-

-

-

(27,374)

(27,374)

At 31 March 2024

38,108

144,502

341,944

(224,539)

300,015

Share capital
£

Share premium
£

Other reserves
£

Retained earnings
£

Total
£

At 1 January 2022

38,108

144,502

341,944

(161,940)

362,614

Loss for the year

-

-

-

(35,225)

(35,225)

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

 

5,049

(353,808)

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

548,096

672,283

Profit on disposal of tangible assets

5

(611)

(6,233)

Finance costs

313,003

286,046

Share of profit/loss of equity accounted investees

 

(372,586)

(277,898)

Income tax expense

11

80,036

43,635

 

572,987

364,025

Working capital adjustments

 

Increase in stocks

15

(109,119)

(45,657)

Decrease/(increase) in debtors

16

130,685

(625,813)

Increase in creditors

18

270,225

461,720

Decrease in retirement benefit obligation net of actuarial changes

20

(272,600)

(336,000)

Cash generated from operations

 

592,178

(181,725)

Income taxes received

11

-

126,607

Net cash flow from operating activities

 

592,178

(55,118)

Cash flows from investing activities

 

Acquisitions of tangible assets

(415,419)

(255,710)

Proceeds from sale of tangible assets

 

49,593

79,400

Dividend income

46,084

169,106

Net cash flows from investing activities

 

(319,742)

(7,204)

Cash flows from financing activities

 

Interest paid

(114,003)

(126,046)

Repayment of bank borrowing

 

(109,762)

(232,535)

New finance leases

 

154,756

-

Repayments to finance lease creditors

 

(84,885)

(232,644)

Net cash flows from financing activities

 

(153,894)

(591,225)

Net increase/(decrease) in cash and cash equivalents

 

118,542

(653,547)

Cash and cash equivalents at 1 April

 

(1,487,541)

(833,994)

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

1

General information

The company is a private company limited by share capital, incorporated in United Kingdom.

The address of its registered office is:
High Street
Cleobury Mortimer
Kidderminster
Worcestershire
DY14 8DT

These financial statements were authorised for issue by the Board on 20 November 2024.

2

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

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

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

3

Turnover

The analysis of the group's turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

11,069,767

13,170,386

Other revenue

-

42,000

11,069,767

13,212,386

The analysis of the group's turnover for the year by market is as follows:

2024
£

2023
£

UK

9,141,352

10,689,697

Rest of Europe

1,108,432

1,635,338

Rest of World

819,983

887,351

11,069,767

13,212,386

4

Other operating income

The analysis of the group's other operating income for the year is as follows:

2024
£

2023
£

Rent receivable

33,750

84,375

5

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

611

6,233

 

Muller Precision Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

6

Operating profit/(loss)

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

335,570

407,058

Amortisation expense

212,526

265,225

Foreign exchange losses/(gains)

16,511

(34)

Profit on disposal of property, plant and equipment

(611)

(6,233)

7

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

110,479

100,307

Interest on obligations under finance leases and hire purchase contracts

3,524

23,263

Other finance costs

199,000

160,000

313,003

283,570

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

2,035,916

2,781,271

Social security costs

187,275

261,766

Pension costs, defined contribution scheme

68,285

81,571

Redundancy costs

54,448

-

2,345,924

3,124,608

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Production

67

69

Administration and support

10

11

77

80

 

Muller Precision Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

293,753

330,409

Contributions paid to money purchase schemes

24,969

27,759

318,722

358,168

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

3

3

In respect of the highest paid director:

2024
£

2023
£

Remuneration

103,753

114,000

Company contributions to money purchase pension schemes

8,819

9,690

10

Auditors' remuneration

2024
£

2023
£

Audit of these financial statements

25,000

42,550

Other fees to auditors

All other non-audit services

-

13,750


 

 

Muller Precision Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

11

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

(30,000)

(30,000)

UK corporation tax adjustment to prior periods

-

(2,857)

(30,000)

(32,857)

Foreign tax

95,882

87,276

Total current income tax

65,882

54,419

Deferred taxation

Arising from origination and reversal of timing differences

14,154

20,664

Arising from changes in tax rates and laws

-

(31,448)

Total deferred taxation

14,154

(10,784)

Tax expense in the income statement

80,036

43,635

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 25% (2023 - 19%).

The differences are reconciled below:

2024
£

2023
£

Profit/(loss) before tax

85,085

(310,173)

Corporation tax at standard rate

21,271

(58,933)

Effect of expense not deductible in determining taxable profit (tax loss)

78,000

51,025

Effect of foreign tax rates

2,736

34,475

UK deferred tax credit relating to changes in tax rates or laws

-

(17,644)

Deferred tax expense from unrecognised tax loss or credit

12,773

29,149

Deferred tax credit from unrecognised temporary difference from a prior period

-

(13,804)

Decrease in UK and foreign current tax from adjustment for prior periods

-

(2,857)

Tax decrease from effect of adjustment in research and development tax credit

(30,000)

(24,700)

Other tax effects for reconciliation between accounting profit and tax expense (income)

(4,744)

46,924

Total tax charge

80,036

43,635

 

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.

12

Intangible assets

Group

Goodwill
 £

Total
£

Cost or valuation

At 1 April 2023

2,121,803

2,121,803

At 31 March 2024

2,121,803

2,121,803

Amortisation

At 1 April 2023

1,149,309

1,149,309

Amortisation charge

212,526

212,526

At 31 March 2024

1,361,835

1,361,835

Carrying amount

At 31 March 2024

759,968

759,968

At 31 March 2023

972,494

972,494

 

Muller Precision Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

13

Tangible assets

Group

Land and buildings
£

Other tangible assets
£

Total
£

Cost or valuation

At 1 April 2023

1,431,478

6,651,060

8,082,538

Additions

-

415,419

415,419

Disposals

-

(363,508)

(363,508)

At 31 March 2024

1,431,478

6,702,971

8,134,449

Depreciation

At 1 April 2023

276,928

4,193,714

4,470,642

Charge for the year

30,401

305,169

335,570

Eliminated on disposal

-

(314,526)

(314,526)

At 31 March 2024

307,329

4,184,357

4,491,686

Carrying amount

At 31 March 2024

1,124,149

2,518,614

3,642,763

At 31 March 2023

1,154,550

2,457,346

3,611,896

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 31 March 2023 by an independent valuer.
The revaluation was based on directors valuation following receipt of a third-party offer for the asset.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £828,119 (2023 - £848,263).
 

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

14

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

Muller India Private Limited

C-198 Defence Colony, New Delhi, South Delhi, Dehli

50%

50%

 

India

     

Aggregate financial information of joint ventures

2024
£

2023
£

Group's share of profit or loss in joint ventures

372,586

277,898

Group's share of joint ventures net assets

1,169,545

927,786

Company

2024
£

2023
£

Investments in subsidiaries

2,125,258

2,125,258

Subsidiaries

£

Cost or valuation

At 1 April 2023

2,125,258

Provision

Carrying amount

At 31 March 2024

2,125,258

At 31 March 2023

2,125,258

 

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

Muller Holdings Limited

High Street, Cleobury Mortimer, Kidderminster, Worcestershire, DY14 8DT

Ordinary

100%

100%

Muller England Limited

High Street, Cleobury Mortimer, Kidderminster, Worcestershire, DY14 8DT

Ordinary

100%

100%

Muller Redditch Limited

Barleet Road, Washford Industrial Estate, Redditch, Worcestershire, B98 0DG

Ordinary

100%

100%

Muller Birmingham Limited

High Street, Cleobury Mortimer, Kidderminster, Worcestershire, DY14 8DT

Ordinary

100%

100%

Muller Cleobury Mortimer Limited

High Street, Cleobury Mortimer, Kidderminster, Worcestershire, DY14 8DT

Ordinary

100%

100%

Muller & Company (England) Limited

High Street, Cleobury Mortimer, Kidderminster, Worcestershire, DY14 8DT

Ordinary

100%

100%

Muller South Wales Limited

High Street, Cleobury Mortimer, Kidderminster, Worcestershire, DY14 8DT

Ordinary

100%

100%

Subsidiary undertakings

Muller Holdings Limited

The principal activity of Muller Holdings Limited is that of a Holding Company.

Muller England Limited

The principal activity of Muller England Limited is the manufacture and supply of precision machined components and assenblies to a wide variety of industries.

 

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 Dormant.

Muller Birmingham Limited

The principal activity of Muller Birmingham Limited is Dormant.

Muller Cleobury Mortimer Limited

The principal activity of Muller Cleobury Mortimer Limited is Dormant.

Muller & Company (England) Limited

The principal activity of Muller & Company (England) Limited is Dormant.

Muller South Wales Limited

The principal activity of Muller South Wales Limited is Dormant.

15

Stocks

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Raw materials and consumables

380,448

383,112

-

-

Work in progress

535,496

420,980

-

-

Finished goods and goods for resale

329,712

332,445

-

-

1,245,656

1,136,537

-

-

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

16

Debtors

   

Group

Company

Current

Note

2024
£

2023
£

2024
£

2023
£

Trade debtors

 

2,077,936

2,186,408

-

-

Amounts owed by related parties

27

57,443

41,843

-

-

Other debtors

 

101,254

70,062

40,000

40,001

Prepayments

 

161,355

199,106

13,000

13,000

Income tax asset

11

11,536

11,536

-

-

   

2,409,524

2,508,955

53,000

53,001

   

Group

Company

Non-current

Note

2024
£

2023
£

2024
£

2023
£

Deferred tax assets

11

1,179,400

1,090,900

-

-

   

1,179,400

1,090,900

-

-

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.

 

17

Cash and cash equivalents

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Cash at bank

40,934

9,089

54

1,089

Invoice finance facility

(2,819,866)

(2,993,260)

-

-

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

18

Creditors

   

Group

Company

Note

2024
£

2023
£

2024
£

2023
£

Due within one year

 

Loans and borrowings

23

1,768,214

1,855,363

285,286

281,438

Trade creditors

 

1,667,534

1,823,371

-

-

Amounts due to related parties

27

440,345

115,150

1,300,768

1,149,224

Social security and other taxes

 

134,798

108,381

56

-

Outstanding defined contribution pension costs

 

15,258

19,906

-

-

Other payables

 

15,870

10,615

-

-

Accruals

 

294,956

199,859

9,000

4,500

Income tax liability

11

1,254

1,254

-

-

 

4,338,229

4,133,899

1,595,110

1,435,162

Due after one year

 

Loans and borrowings

23

409,652

469,091

283,187

416,797

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.

19

Provisions for liabilities

Group

Deferred tax
£

Total
£

At 1 April 2023

343,339

343,339

Charged to profit and loss account

14,154

14,154

At 31 March 2024

357,493

357,493

 

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.

20

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 £68,285 (2023 - £81,571).

Contributions totalling £15,258 (2023 - £19,906) were payable to the scheme at the end of the year and are included in creditors.

Defined benefit pension schemes

Muller Retirement and Death Benefits Scheme (1978)

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

2,874,000

3,302,600

Present value of defined benefit obligation

(7,518,000)

(7,666,200)

Defined benefit pension scheme deficit

(4,644,000)

(4,363,600)

 

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

7,666,200

Interest cost

347,000

Actuarial gains and losses

64,000

Benefits paid

(559,200)

Present value at end of year

7,518,000

Fair value of scheme assets

Changes in the fair value of scheme assets are as follows:

2024
£

Fair value at start of year

3,302,600

Interest income

148,000

Actuarial gains and losses

(290,000)

Employer contributions

385,600

Benefits paid

(559,200)

Adminstration costs

(113,000)

Fair value at end of year

2,874,000

Analysis of assets

The major categories of scheme assets are as follows:

2024
£

2023
£

Cash and cash equivalents

119,000

100,000

Equity instruments

466,000

505,000

Corporate bonds

436,000

316,000

Property

-

61,600

Diversified growth funds

371,000

771,000

Gilts

1,482,000

1,549,000

2,874,000

3,302,600

 

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

142,000

512,000

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

3.00

2.70

Discount rate

4.70

4.70

Future salary increases

2.90

2.70

Inflation

3.60

3.40

Post retirement mortality assumptions

2024
Years

2023
Years

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

21

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Ordinary Shares of £1 each

38,108

38,108

38,108

38,108

         
 

Muller Precision Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

22

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

23

Loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Non-current loans and borrowings

Bank borrowings

144,722

254,484

144,722

254,484

Hire purchase contracts

126,465

52,294

-

-

Other borrowings

138,465

162,313

138,465

162,313

409,652

469,091

283,187

416,797

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Current loans and borrowings

Bank borrowings

122,973

122,973

122,973

122,973

Invoice financing facility

1,409,933

1,496,630

-

-

Hire purchase contracts

72,995

77,295

-

-

Other borrowings

162,313

158,465

162,313

158,465

1,768,214

1,855,363

285,286

281,438

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

24

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

72,994

77,295

Later than one year and not later than five years

126,465

52,294

199,459

129,589

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

237,040

205,720

Later than one year and not later than five years

756,000

658,040

Later than five years

549,750

795,000

1,542,790

1,658,760

The amount of non-cancellable operating lease payments recognised as an expense during the year was £218,570 (2023 - £247,987).

25

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

26

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)

 

(2,315,365)

333,189

(154,756)

-

(2,136,932)

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

27

Related party transactions

Key management compensation

2024
£

2023
£

Salaries and other short term employee benefits

354,775

403,063

Summary of transactions with other related parties


 Muller India Private Limited is a 50% owned joint venture of Muller Holdings Limited. Muller India Private Limited provided subcontract services to Muller England Limited. During the year, this trading resulted in costs of £676,225 (2023: £785,425) and sales of £69,180 (2023: £3,134). At the year end Muller England Limited had a related party creditor owed to Muller India Private Limited of £440,345 (2023: £115,150) - these are included within amounts owed to related parties within creditors. There was a related party debtor of £15,600 owed to Muller England Limited from Muller India Private Limited at the 31 March 2024 (2023: £nil) - this is included within amounts owed from related parties within debtors.

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.

 

28

Parent and ultimate parent undertaking

The ultimate parent is Preci Turn Private Limited, incorporated in India.
Preci Turn Private Limited is considered to be the ultimate controlling party.