REGISTERED NUMBER: 10164478 (England and Wales) |
MINI GEARS GROUP HOLDINGS LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
REGISTERED NUMBER: 10164478 (England and Wales) |
MINI GEARS GROUP HOLDINGS LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
MINI GEARS GROUP HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 APRIL 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and |
Statutory Auditors |
Clarke Nicklin House |
Brooks Drive |
Cheadle Royal Business Park |
Cheadle |
Cheshire |
SK8 3TD |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 APRIL 2024 |
The directors present their strategic report of the company and the group for the year ended 30 April 2024. |
Mini Gears is a specialised UK subcontracting group that manufactures a wide range of precision machined components and gear transmission products. |
REVIEW OF BUSINESS |
As forecast, the 2023/2024 trading period saw turnover reach £10.2 million. We have seen customer demand increase with a steady order intake over the year. Our Aerospace customer demand has increased more than expected in the last quarter. We are seeing the Aerospace sectors increase by a further 100% on forecasts. |
We have exhibited in two major events, domestic and international, which has resulted in 15 new customers. The team are working with these customers to increase their accounts. |
We have also continued with our investment program. In the year Mini Gears invested over £1.1 million in innovative technology. Over the next 12 months we intend to invest a further £1 million. |
We are also investing in apprenticeships throughout the business, we have five at present with an additional two adults training to increase the skill set. |
For 2024/2025, we see sales growing with our new customers and expect to finish the year with a turnover of £11.7 million. The company remains in an extraordinarily strong position and continues to look at investment in machinery and people to remain a major supplier in our business sector. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and sectors served are subject to a number of risks but the directors are confident that the current quality management system that the company adopts is adequate to identify and manage any arising issues. |
FINANCIAL RISK MANAGEMENT |
The group is exposed to a number of financial risks including the effect of interest rate changes, exchange rate movements and credit risk. |
The group is exposed to currency exchange movement, particularly in its international sourcing division and, to a lesser degree, on multiple currency sales. This is managed by the way of derivative instruments. |
The group's credit risk is primarily attributable to its trade debtors, credit risk is managed by way of credit insurance on all debtors and a regular review of credit limits. |
LIQUIDITY RISK |
The group regularly forecast cash flow to ensure that sufficient funds are available for operational requirements. This is supplemented with appropriate banking facilities. |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 APRIL 2024 |
FINANCIAL KEY PERFORMANCE INDICATORS |
2024 | 2023 |
£ | £ |
Revenue | 10,179 | 9,396 |
Gross Profit | 2,875 | 2,690 |
Administrative expenses | 2,524 | 2,344 |
Profit before tax | 293 | 291 |
Stock | 1,292 | 1,269 |
Gross profit margin | 28.2% | 28.1% |
DEVELOPMENT AND PERFORMANCE |
For 2024/2025, we see sales growing with our new customers and expect to finish the year with a turnover of £11.7 million. The company remains in an extraordinarily strong position and continues to look at investment in machinery and people to remain a major supplier in our business sector. |
ON BEHALF OF THE BOARD: |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 APRIL 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 April 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the subcontract manufacture of machined parts and gear transmission products including gear racks. |
DIVIDENDS |
The directors recommend that no final dividend be paid. |
The total distribution of dividends for the period ended 30 April 2024 was £211,710 (2023: £186,007). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 May 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group 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 then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 APRIL 2024 |
AUDITORS |
The auditors, Clarke Nicklin LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MINI GEARS GROUP HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of Mini Gears Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement 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 of the parent company affairs as at 30 April 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 Auditors' 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 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 group's and the parent 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MINI GEARS GROUP HOLDINGS LIMITED |
Opinions on other matters 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
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 four, 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 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MINI GEARS GROUP HOLDINGS LIMITED |
Auditors' 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 a Report of the Auditors 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: |
Procedures to identify risks: |
- | enquiring of management concerning the group's procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- | discussing among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas: timing of recognition of sales and purchases and their related stock movements, posting of unusual journals; and |
- | obtaining an understanding of the legal and regulatory frameworks that the group operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the group. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety, pensions legislation and tax legislation. |
The procedures to respond to risks identified included: |
- | reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations discussed above; |
- | enquiring of management, concerning actual and potential litigation and claims; |
- | performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- | reviewing correspondence with HMRC; |
- | testing the timing and matching of income and expense transactions relating to stock movements either side of the year end; and |
- | in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MINI GEARS GROUP HOLDINGS 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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants and |
Statutory Auditors |
Clarke Nicklin House |
Brooks Drive |
Cheadle Royal Business Park |
Cheadle |
Cheshire |
SK8 3TD |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 | 10,179,178 | 9,396,071 |
Cost of sales | 7,304,600 | 6,705,842 |
GROSS PROFIT | 2,874,578 | 2,690,229 |
Administrative expenses | 2,524,308 | 2,343,741 |
350,270 | 346,488 |
Other operating income | 42,456 | 34,054 |
OPERATING PROFIT | 5 | 392,726 | 380,542 |
Interest payable and similar expenses | 6 | 99,538 | 88,930 |
PROFIT BEFORE TAXATION | 293,188 | 291,612 |
Tax on profit | 7 | 147,695 | 146,717 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 145,493 | 144,895 |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 145,493 | 144,895 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
145,493 |
144,895 |
Total comprehensive income attributable to: |
Owners of the parent | 145,493 | 144,895 |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
CONSOLIDATED BALANCE SHEET |
30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 961,132 | 1,403,271 |
Tangible assets | 11 | 1,803,265 | 1,549,920 |
Investments | 12 | - | - |
Investment property | 13 | 1,084,049 | 1,208,868 |
3,848,446 | 4,162,059 |
CURRENT ASSETS |
Stocks | 14 | 1,291,840 | 1,268,532 |
Debtors | 15 | 1,771,959 | 1,600,700 |
Cash at bank and in hand | 92,775 | 54,899 |
3,156,574 | 2,924,131 |
CREDITORS |
Amounts falling due within one year | 16 | 2,386,018 | 2,502,553 |
NET CURRENT ASSETS | 770,556 | 421,578 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,619,002 |
4,583,637 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(850,234 |
) |
(887,533 |
) |
PROVISIONS FOR LIABILITIES | 21 | (517,232 | ) | (378,351 | ) |
NET ASSETS | 3,251,536 | 3,317,753 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 950 | 950 |
Share premium | 23 | 3,489,326 | 3,489,326 |
Capital redemption reserve | 23 | 50 | 50 |
Retained earnings | 23 | (238,790 | ) | (172,573 | ) |
SHAREHOLDERS' FUNDS | 3,251,536 | 3,317,753 |
The financial statements were approved by the Board of Directors and authorised for issue on 7 January 2025 and were signed on its behalf by: |
P S Durkin - Director |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
COMPANY BALANCE SHEET |
30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
Investment property | 13 |
CURRENT ASSETS |
Debtors | 15 |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Share premium | 23 |
Capital redemption reserve | 23 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 560,094 | 366,007 |
The financial statements were approved by the Board of Directors and authorised for issue on |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 APRIL 2024 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 May 2022 | 950 | (131,461 | ) | 3,489,326 | 50 | 3,358,865 |
Changes in equity |
Dividends | - | (186,007 | ) | - | - | (186,007 | ) |
Total comprehensive income | - | 144,895 | - | - | 144,895 |
Balance at 30 April 2023 | 950 | (172,573 | ) | 3,489,326 | 50 | 3,317,753 |
Changes in equity |
Dividends | - | (211,710 | ) | - | - | (211,710 | ) |
Total comprehensive income | - | 145,493 | - | - | 145,493 |
Balance at 30 April 2024 | 950 | (238,790 | ) | 3,489,326 | 50 | 3,251,536 |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 APRIL 2024 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 May 2022 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30 April 2023 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30 April 2024 |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 27 | 356,922 | 692,403 |
Interest paid | (58,522 | ) | (50,319 | ) |
Interest element of hire purchase payments paid |
(41,016 |
) |
(38,611 |
) |
Tax paid | - | (9,162 | ) |
Net cash from operating activities | 257,384 | 594,311 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (213,743 | ) | (787,786 | ) |
Sale of tangible fixed assets | 5,000 | 6,237 |
Sale of investment property | 130,000 | - |
Net cash from investing activities | (78,743 | ) | (781,549 | ) |
Cash flows from financing activities |
Loan repayments in year | (174,961 | ) | (176,068 | ) |
Hire purchase capital repayments in year | (94,367 | ) | 489,044 |
Equity dividends paid | (211,710 | ) | (186,007 | ) |
Net cash from financing activities | (481,038 | ) | 126,969 |
Decrease in cash and cash equivalents | (302,397 | ) | (60,269 | ) |
Cash and cash equivalents at beginning of year |
28 |
54,899 |
115,168 |
Cash and cash equivalents at end of year |
28 |
(247,498 |
) |
54,899 |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
1. | STATUTORY INFORMATION |
Mini Gears Group Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements are presented in Sterling (£). |
Going concern |
The directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The directors have reached this conclusion giving due consideration to the projected future performance of the group, any potential risk that might impact the group's ability to meet its required solvency levels, and the position with regard to bank borrowing. For this reason, they continue to adopt the going concern basis in preparing the financial statements. |
Basis of consolidation |
The consolidated profit and loss account and balance sheet include the financial statements of the company and its subsidiary undertakings. The results of subsidiaries acquired or sold during the period are included in the consolidated profit and loss account from, or up to, the date control passes. Intra-group transactions are eliminated fully on consolidation. |
On acquisition of a subsidiary, the subsidiary's assets and liabilities that exist at the date of acquisition are recorded at their fair values reflecting their condition at that date. All changes to those assets and liabilities, and the resulting gains and losses that arise after the group has gained control of the subsidiary are charged to the post acquisition profit and loss account. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Significant judgements and estimates |
In the application of the Group's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future period. |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover represents amounts recognised by the group in respect of goods and services supplied, exclusive of Value Added Tax and trade discounts. Turnover principally consists of the sale of manufactured or machined parts and gear transmission products, including gear racks. Turnover is recognised as goods are dispatched. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Investment property |
Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties are initially measured at cost, including transaction costs. Subsequently investment properties are measured at fair value. Gains and losses arising from changes in the fair value of investment properties are included in income statement in the period in which they arise. |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Financial instruments |
Where facilities are available, the group uses derivative instruments to reduce exposure to foreign exchange risk. The group does not hold or issue derivative financial instruments for speculative purposes. |
Derivative financial instruments are initially recognised at cost when contracts are entered in to. At the end of each reporting period they are measured at fair value, with changes in fair value transferred to the profit and loss account. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets that are held by the group under leases which transfer to the group substantially all the risks and rewards of ownership are classified as being held under finance leases. Leases which do not transfer substantially all the risks and rewards of ownership to the group are classified as operating leases. |
Assets held under finance leases are initially recognised as assets of the group at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statements of financial position as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability, finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the group's policy on borrowing costs. Contingent rentals are recognised as expenses in the periods in which they are incurred. |
Operating lease payments are recognised as an expense on straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred. |
In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
The obligations for contributions to defined contribution scheme are recognised as an expense as incurred. The assets of the scheme are held separately from those of the group in an independent administered fund. |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
2. | ACCOUNTING POLICIES - continued |
Trade and other debtors |
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the trade debtors and other debtors are stated at cost less impairment losses for bad and doubtful debts. |
Trade and other creditors |
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
Manufactured Products | 10,179,178 | 9,396,071 |
10,179,178 | 9,396,071 |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 7,101,412 | 6,658,222 |
Europe | 2,089,896 | 1,880,661 |
United States of America | 895,484 | 797,623 |
Rest of the World | 92,386 | 59,565 |
10,179,178 | 9,396,071 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 2,405,573 | 2,247,056 |
Social security costs | 240,402 | 218,491 |
Other pension costs | 89,885 | 78,297 |
2,735,860 | 2,543,844 |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2024 | 2023 |
Office and management | 16 | 16 |
Production | 62 | 60 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 130,939 | 124,821 |
Directors' pension contributions to money purchase schemes | 29,435 | 26,503 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 4 | 4 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 13,658 | 15,376 |
Other operating leases | 138,022 | 138,000 |
Depreciation - owned assets | 145,788 | 202,164 |
Depreciation - assets on hire purchase contracts | 88,085 | 27,113 |
Profit on disposal of fixed assets | (8,738 | ) | (4,229 | ) |
Goodwill amortisation | 442,139 | 443,139 |
Auditors' remuneration | 19,774 | 14,095 |
Foreign exchange differences | (28,148 | ) | (72,694 | ) |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank interest | 58,522 | 50,319 |
Hire purchase interest | 41,016 | 38,611 |
99,538 | 88,930 |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 8,814 | - |
Corporation tax prior years | - | 409 |
Total current tax | 8,814 | 409 |
Deferred tax | 138,881 | 146,308 |
Tax on profit | 147,695 | 146,717 |
UK corporation tax has been charged at 19 % (2023 - 25 %). |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 293,188 | 291,612 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2023 - 25 %) |
55,706 |
72,903 |
Effects of: |
Expenses not deductible for tax purposes | - | 115 |
Income not taxable for tax purposes | (1,585 | ) | - |
Capital allowances in excess of depreciation | - | (55,145 | ) |
Adjustments to tax charge in respect of previous periods | - | 409 |
Research and development enhancement | (24,510 | ) | (67,975 | ) |
Amortisation on goodwill | 84,006 | 110,873 |
Effect of rate change | 33,331 | 5,820 |
Assessed loss carried forward | - | 79,717 |
Gain on investment property | 747 | - |
Total tax charge | 147,695 | 146,717 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
9. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each |
Interim | 211,710 | 186,007 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 May 2023 |
and 30 April 2024 | 4,431,387 |
AMORTISATION |
At 1 May 2023 | 3,028,116 |
Amortisation for year | 442,139 |
At 30 April 2024 | 3,470,255 |
NET BOOK VALUE |
At 30 April 2024 | 961,132 |
At 30 April 2023 | 1,403,271 |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 May 2023 | 5,706,558 | 470,783 | 25,649 | 6,202,990 |
Additions | 484,684 | 3,976 | - | 488,660 |
Disposals | (200,978 | ) | - | - | (200,978 | ) |
At 30 April 2024 | 5,990,264 | 474,759 | 25,649 | 6,490,672 |
DEPRECIATION |
At 1 May 2023 | 4,310,303 | 339,945 | 2,821 | 4,653,069 |
Charge for year | 201,705 | 23,703 | 8,465 | 233,873 |
Eliminated on disposal | (199,535 | ) | - | - | (199,535 | ) |
At 30 April 2024 | 4,312,473 | 363,648 | 11,286 | 4,687,407 |
NET BOOK VALUE |
At 30 April 2024 | 1,677,791 | 111,111 | 14,363 | 1,803,265 |
At 30 April 2023 | 1,396,255 | 130,838 | 22,828 | 1,549,921 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST |
At 1 May 2023 | 316,682 |
Additions | 274,917 |
Transfer to ownership | (142,560 | ) |
At 30 April 2024 | 449,039 |
DEPRECIATION |
At 1 May 2023 | 187,965 |
Charge for year | 88,085 |
Transfer to ownership | (78,890 | ) |
At 30 April 2024 | 197,160 |
NET BOOK VALUE |
At 30 April 2024 | 251,879 |
At 30 April 2023 | 128,717 |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertaking |
£ |
COST |
At 1 May 2023 |
and 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Top Gear House Bletchley Road, Heaton Mersey Industrial Estate, Stockport, United Kingdom, SK4 3ED |
Nature of business: |
% |
Class of shares: | holding |
This company is a subsidiary of Mini-Gears Holdings Limited. |
Registered office: Top Gear House Bletchley Road, Heaton Mersey Industrial Estate, Stockport, United Kingdom, SK4 3ED |
Nature of business: |
% |
Class of shares: | holding |
This company is a subsidiary of Mini-Gears(Stockport)Limited. |
Registered office: Top Gear House Bletchley Road, Heaton Mersey Industrial Estate, Stockport, United Kingdom, SK4 3ED |
Nature of business: |
% |
Class of shares: | holding |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
13. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 May 2023 | 1,208,868 |
Disposals | (124,819 | ) |
At 30 April 2024 | 1,084,049 |
NET BOOK VALUE |
At 30 April 2024 | 1,084,049 |
At 30 April 2023 | 1,208,868 |
Fair value at 30 April 2024 is represented by: |
£ |
Valuation in 2024 | 1,084,049 |
If investment property had not been revalued it would have been included at the following historical cost: |
2024 | 2023 |
£ | £ |
Cost | 729,358 | 854,175 |
Investment property was valued on an open market basis on 30 April 2024 by Roberts and Roberts, and also Cluttons . |
14. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Raw materials | 718,988 | 800,572 |
Work-in-progress | 445,224 | 334,420 |
Finished goods | 127,628 | 133,540 |
1,291,840 | 1,268,532 |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 1,546,307 | 1,427,653 |
Amounts owed by group undertakings | - | - |
Other debtors | 1,629 | 279 |
Prepayments | 224,023 | 172,768 |
1,771,959 | 1,600,700 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 515,396 | 175,814 |
Hire purchase contracts (see note 19) | 165,615 | 122,036 |
Trade creditors | 1,276,931 | 1,380,236 |
Amounts owed to group undertakings | - | - |
Corporation tax | 8,814 | - |
Social security and other taxes | 58,755 | 52,926 |
VAT | 82,918 | 137,534 | - | - |
Other creditors | 154,934 | 497,142 |
Accrued expenses | 122,655 | 136,865 |
2,386,018 | 2,502,553 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Bank loans (see note 18) | 207,265 | 381,535 |
Hire purchase contracts (see note 19) | 642,969 | 505,998 |
850,234 | 887,533 |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 340,273 | - |
Bank loans | 175,123 | 175,814 |
515,396 | 175,814 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 175,123 | 175,814 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 32,142 | 205,721 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 165,615 | 122,036 |
Between one and five years | 540,602 | 505,998 |
In more than five years | 102,367 | - |
808,584 | 628,034 |
Group |
Non-cancellable | operating leases |
2024 | 2023 |
£ | £ |
Within one year | 151,746 | 150,363 |
Between one and five years | 586,900 | 557,785 |
In more than five years | 310,500 | 448,500 |
1,049,146 | 1,156,648 |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Bank loans | 382,388 | 557,349 |
Hire purchase contracts | 808,584 | 628,034 |
1,190,972 | 1,185,383 |
National Westminster Bank PLC holds a mortgage debenture, dated 8 January 1992, creating a fixed and floating charge over the group's property and assets, and fixed charges, dated 11 July 2016 and 27 October 2017, over 2 of the 6 investment properties. |
Assets purchased under finance lease or hire purchase are secured on the assets to which they relate. |
21. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 440,255 | 373,458 |
Tax losses carried forward | (6,461 | ) | (79,805 | ) |
Other timing differences | 83,438 | 84,698 |
517,232 | 378,351 |
Group |
Deferred |
tax |
£ |
Balance at 1 May 2023 | 378,351 |
Charge to Income Statement during year | 138,881 |
Balance at 30 April 2024 | 517,232 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 950 | 950 |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
23. | RESERVES |
Group |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 May 2023 | (172,573 | ) | 3,489,326 | 50 | 3,316,803 |
Profit for the year | 145,493 | 145,493 |
Dividends | (211,710 | ) | (211,710 | ) |
At 30 April 2024 | (238,790 | ) | 3,489,326 | 50 | 3,250,586 |
Company |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 May 2023 | 7,961,254 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 30 April 2024 | 8,309,638 |
24. | PENSION COMMITMENTS |
The group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. |
The pension cost charge represents contributions payable by the company to the fund and amounted to £89,599 (2023: £75,590). Contributions outstanding to the fund at the balance sheet date totalled £17,809 (2023: £15,895). |
25. | OTHER FINANCIAL COMMITMENTS |
At the year end the company was committed to purchasing 7,525,374 CNY (2023: 1,420,000 CNY), selling 471,466 USD (2023: 378,194 USD) and purchasing 1,762,918 Euros (2023: 588,342 Euros) by way of foreign currency commitments. |
26. | RELATED PARTY DISCLOSURES |
During the year the group paid rent of £138,022 to Mr P Darwent, a director (2023: £138,000). Additionally, an investment property was sold to Mr. P Darwent for £130,000, resulting in a profit on sale of £5,181. |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
27. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 293,188 | 291,612 |
Depreciation charges | 676,011 | 669,593 |
Profit on disposal of fixed assets | (8,738 | ) | (4,229 | ) |
Gain on revaluation of fixed assets | - | (39,050 | ) |
Finance costs | 99,538 | 88,930 |
1,059,999 | 1,006,856 |
Increase in stocks | (23,308 | ) | (193,030 | ) |
Increase in trade and other debtors | (171,259 | ) | (163,447 | ) |
(Decrease)/increase in trade and other creditors | (508,510 | ) | 42,024 |
Cash generated from operations | 356,922 | 692,403 |
28. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 April 2024 |
30.4.24 | 1.5.23 |
£ | £ |
Cash and cash equivalents | 92,775 | 54,899 |
Bank overdrafts | (340,273 | ) | - |
(247,498 | ) | 54,899 |
Year ended 30 April 2023 |
30.4.23 | 1.5.22 |
£ | £ |
Cash and cash equivalents | 54,899 | 115,168 |
MINI GEARS GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 10164478) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
29. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1.5.23 | Cash flow | changes | At 30.4.24 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 54,899 | 37,876 | 92,775 |
Bank overdrafts | - | (340,273 | ) | (340,273 | ) |
54,899 | (302,397 | ) | (247,498 | ) |
Debt |
Finance leases | (628,034 | ) | 94,367 | - | (808,584 | ) |
Debts falling due |
within 1 year | (175,814 | ) | 691 | - | (175,123 | ) |
Debts falling due |
after 1 year | (381,535 | ) | 174,270 | - | (207,265 | ) |
(1,185,383 | ) | 269,328 | - | (1,190,972 | ) |
Total | (1,130,484 | ) | (33,069 | ) | - | (1,438,470 | ) |