Company registration number 03150165 (England and Wales)
MRT CASTINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
MRT CASTINGS LIMITED
COMPANY INFORMATION
Directors
Mr C N Rawnson
Mr K J Rawnson
Mrs V A Rawnson
Mr P J Rawnson
Mr J R Bonas
Secretary
Ms N C Rawnson
Company number
03150165
Registered office
South Way
Walworth Industrial Estate
Andover
Hampshire
SP10 5JT
Auditor
Azets Audit Services
Athenia House
10-14 Andover Road
Winchester
Hampshire
United Kingdom
SO23 7BS
MRT CASTINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 20
MRT CASTINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Review of the business

The past year has presented new challenges to our customers, which have led to a reduction in demand. This has fallen at a time when global inflation, particularly in wages and energy, have adversely impacted margins. During the same period, MRT have been going through strategic transitions, in the completion of the move of our foundry into a new purpose-built world-class facility, and in changes in our management team in response to planned retirements, both of which have added to overhead costs in the short term. The trio of these factors, reduced sales, inflationary pressure on costs, and high overheads, means this year’s financial results have been particularly poor.

 

Following the exceptional growth and success which the business earned during the Covid pandemic when the Company responded to the urgent global requirement for medical device components, the business has been gradually scaling back over the past three years to return to normal levels of demand. Unfortunately, the legacy of that eventful pandemic year has been that returning to normal has not been possible for some customers. In particular, our major medical customer has seen the market landscape change to such an extent that they have recently announced an end to the product range which MRT supplied. Gestation periods for new projects are also slow at the moment, so there is not an immediate volume of new business to compensate for such significant declines in demand from existing customers. This has led to a reduction in turnover over the past trading year, and has similarly subdued our expectations for the next two to three years ahead.

 

There are a number of reasons to remain positive about future prospects, despite recent performance. The company operates a modern, well-equipped facility with industry leading machine tools, and further opportunities to introduce additional automation in the years ahead to maximise productivity. Some older machine tools which are now surplus to capacity requirements can be disposed of. Some of the additional space which MRT leased during the growth phase can now be withdrawn from to reduce overheads. Despite disappointing sales over the past year, MRT continues to maintain strong relationships with a broad portfolio of high quality customers in diverse markets, so opportunities for steady organic growth from these customers remains strong. Our management systems for quality, health and safety and environmental management are robust, positioning us well for the increasing compliance requirements expected in the years ahead.

 

Whilst headcount has reduced over the past year, the business has retained all key skills and capabilities within the consolidated team. The business remains committed to restoring productivity and profitability through a comprehensive programme of reducing overhead costs, maximising productivity and returning sales to growth.

 

We are satisfied that there are sufficient resources available to continue trading for the foreseeable future.

 

As ever, we are grateful for the continued support of our employees, clients, suppliers and business partners.

Financial instruments, risk management, objectives and policies

The company had no financial instruments at the balance sheet date other than cash and financial instruments such as debtors, creditors and hire purchase contracts that arise from its operations.

 

The company is exposed to a variety of financial risks which result from its operating activities. The board is responsible for coordinating the company's risk management and focuses on securing the company's short to medium term cash flows.

 

The company does not actively engage in the trading of financial assets and has no financial derivatives. The company seeks to manage risks to ensure sufficient liquidity is available to meet its foreseeable needs. Regular contact is maintained with the company's bankers to ensure that sufficient funding is available for the company's needs if required.

 

MRT CASTINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Key performance indicators

The key performance indicators by which the business monitors itself are turnover levels, gross profit, pross profit margin, and profit/ (loss) before tax.

 

 

2024

2023

Turnover

£6,364,375

£8,505,402

Gross profit

£2,072,752

£2,748,833

Gross profit margin

32.6%

32.3%

Profit/ (Loss) before tax

(£960,475)

(£435,079)

 

By order of the board

Ms N C Rawnson
Secretary
19 August 2024
MRT CASTINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The company is engaged in the manufacture, machining and finishing of non ferrous castings and assembly of associated products.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr C N Rawnson
Mr K J Rawnson
Mrs V A Rawnson
Mr P J Rawnson
Mr J R Bonas
Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

By order of the board
Ms N C Rawnson
Secretary
19 August 2024
MRT CASTINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

 

 

 

 

 

MRT CASTINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MRT CASTINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of MRT Castings Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

MRT CASTINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MRT CASTINGS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the 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 or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

Auditor's 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

MRT CASTINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MRT CASTINGS LIMITED
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Jon Noble
Senior Statutory Auditor
For and on behalf of Azets Audit Services
5 September 2024
Chartered Accountants
Statutory Auditor
Athenia House
10-14 Andover Road
Winchester
Hampshire
United Kingdom
SO23 7BS
MRT CASTINGS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
6,364,375
8,505,402
Cost of sales
(4,291,623)
(5,756,569)
Gross profit
2,072,752
2,748,833
Distribution costs
(58,084)
(96,998)
Administrative expenses
(2,978,755)
(3,090,879)
Operating loss
4
(964,087)
(439,044)
Interest receivable and similar income
7
3,612
4,041
Interest payable and similar expenses
8
-
0
(76)
Loss before taxation
(960,475)
(435,079)
Tax on loss
9
188,043
92,857
Loss for the financial year
(772,432)
(342,222)
MRT CASTINGS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
3,217,442
3,732,302
Current assets
Stocks
12
644,948
856,769
Debtors
13
917,985
1,389,862
Cash at bank and in hand
424,072
407,558
1,987,005
2,654,189
Creditors: amounts falling due within one year
14
(601,513)
(823,082)
Net current assets
1,385,492
1,831,107
Total assets less current liabilities
4,602,934
5,563,409
Provisions for liabilities
Deferred tax liability
15
416,776
604,819
(416,776)
(604,819)
Net assets
4,186,158
4,958,590
Capital and reserves
Called up share capital
17
400
400
Share premium account
671,746
671,746
Capital redemption reserve
80
80
Profit and loss reserves
3,513,932
4,286,364
Total equity
4,186,158
4,958,590
The financial statements were approved by the board of directors and authorised for issue on 19 August 2024 and are signed on its behalf by:
Mr P J Rawnson
Director
Company Registration No. 03150165
MRT CASTINGS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2022
400
671,746
80
4,715,586
5,387,812
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
-
-
(342,222)
(342,222)
Dividends
10
-
-
-
(87,000)
(87,000)
Balance at 31 March 2023
400
671,746
80
4,286,364
4,958,590
Year ended 31 March 2024:
Loss and total comprehensive income for the year
-
-
-
(772,432)
(772,432)
Balance at 31 March 2024
400
671,746
80
3,513,932
4,186,158
MRT CASTINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
1
Accounting policies
Company information

MRT Castings Limited is a private company limited by shares incorporated in England and Wales. The registered office is South Way, Walworth Industrial Estate, Andover, Hampshire, SP10 5JT.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Morris Rawnson & Taylor Group Limited. These consolidated financial statements are available from its registered office, MRT Castings Ltd, South Way, Walworth Industrial Estate, Andover, SP10 5JT, United Kingdom.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

MRT CASTINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
5% straight line
Plant and machinery
20% straight line, and 15% - 20% reducing balance
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

MRT CASTINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

MRT CASTINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

MRT CASTINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock Provision

A stock provision is applied to the value of stock at the following rates;

Stock Valuation

The valuation of stock includes an estimated element on overhead costs which is calculated as follows: The machine hours used to produce the stock line are multiplied by an estimated overhead cost per hour associated with utilising the machine.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Supply of metal castings, machined components, and associated tooling
6,364,375
8,505,402
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
4,797,795
5,570,539
Europe
1,510,247
2,856,674
Rest of the world
56,333
78,189
6,364,375
8,505,402
2024
2023
£
£
Other revenue
Interest income
3,612
4,041
MRT CASTINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
4
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
12,750
12,750
Depreciation of owned tangible fixed assets
534,608
581,918
Loss/(profit) on disposal of tangible fixed assets
6,475
(25,929)
Operating lease charges
163,429
155,805
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Directors
5
5
Production
45
58
Admin
13
13
Total
63
76

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,660,109
3,026,873
Social security costs
286,946
342,888
Pension costs
125,303
120,602
3,072,358
3,490,363
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
278,217
462,790
Company pension contributions to defined contribution schemes
14,920
14,475
293,137
477,265

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

MRT CASTINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Directors' remuneration
(Continued)
- 17 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
144,077
199,799
Company pension contributions to defined contribution schemes
4,000
4,000
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
3,612
913
Other interest income
-
0
3,128
Total income
3,612
4,041
8
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
-
76
9
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
(188,043)
(92,857)

The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Loss before taxation
(960,475)
(435,079)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(240,119)
(82,665)
Tax effect of expenses that are not deductible in determining taxable profit
64
981
Depreciation on assets not qualifying for tax allowances
1,025
1,063
Losses surrended to group company
50,987
28,454
Super deduction element of capital allowances
-
0
(18,404)
Difference between deferred tax rate and corporation tax rate
-
0
(22,286)
Taxation credit for the year
(188,043)
(92,857)
MRT CASTINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
10
Dividends
2024
2023
£
£
Interim paid
-
0
87,000
11
Tangible fixed assets
Leasehold improvements
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023
684,790
7,645,333
270,196
8,600,319
Additions
-
0
39,322
36,500
75,822
Disposals
-
0
(443,650)
(34,749)
(478,399)
At 31 March 2024
684,790
7,241,005
271,947
8,197,742
Depreciation and impairment
At 1 April 2023
105,752
4,720,748
41,517
4,868,017
Depreciation charged in the year
34,702
446,890
53,016
534,608
Eliminated in respect of disposals
-
0
(422,325)
-
0
(422,325)
At 31 March 2024
140,454
4,745,313
94,533
4,980,300
Carrying amount
At 31 March 2024
544,336
2,495,692
177,414
3,217,442
At 31 March 2023
579,038
2,924,585
228,679
3,732,302
12
Stocks
2024
2023
£
£
Raw materials and consumables
43,377
49,543
Work in progress
72,908
116,537
Finished goods and goods for resale
528,663
690,689
644,948
856,769
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
828,476
1,307,444
Prepayments and accrued income
89,509
82,418
917,985
1,389,862
MRT CASTINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
14
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
323,702
476,267
Taxation and social security
169,355
207,952
Other creditors
41,377
31,251
Accruals
67,079
107,612
601,513
823,082
15
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
628,572
710,535
Tax losses
(207,953)
(100,711)
Unpaid pension creditor
(3,843)
(5,005)
416,776
604,819
2024
Movements in the year:
£
Liability at 1 April 2023
604,819
Credit to profit or loss
(188,043)
Liability at 31 March 2024
416,776

The deferred tax liability set out above is expected to reverse in future years and relates to accelerated capital allowances that are expected to mature over time, unutilised tax losses, and an unpaid pension creditor.

16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
125,303
120,602

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

MRT CASTINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
400
400
400
400
18
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
61,224
128,458
Between two and five years
28,058
56,243
89,282
184,701
19
Ultimate controlling party

The smallest and largest group into which these financial statements are consolidated is that of the parent company, Morris Rawnson & Taylor Group Limited, a company incorporated in England and Wales. The consolidated group accounts are publicly available from Companies House.

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