Company registration number 08806450 (England and Wales)
MBC SUMMIT HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
MBC SUMMIT HOLDINGS LIMITED
COMPANY INFORMATION
Director
Mr SD Roberts
Secretary
S J McBride
Company number
08806450
Registered office
Unit 5
New York Way
New York Industrial Estate
Wallsend
Tyne and Wear
NE27 0QF
Auditor
Robson Laidler Accountants Limited
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
NE2 1TJ
Bankers
HSBC UK Bank Plc
Floor 3
Central Square South
Orchard Street
Newcastle upon Tyne
NE1 3AZ
Solicitors
Muckle LLP
Time Central
32 Gallowgate
Newcatle upon Tyne
Tyne and Wear
England
NE1 4BF
MBC SUMMIT HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Company statement of cash flows
13
Notes to the financial statements
14 - 27
MBC SUMMIT HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The director presents the strategic report for the year ended 30 June 2024.

Review of business

Turnover was £19.9m, down from £23.5m in the previous year.

Principal risks and uncertainties

The company has an established, structured approach to risk management.

 

The company's activities expose it to a variety of financial risks, including effects of credit, liquidity and cash flows, and foreign currency risk. The company has adopted risk management policies that seek to mitigate these risks in a cost effective manner. Financial assets that expose the company to financial risk consist primarily of trade debtors and cash. Financial liabilities that expose the company to financial risk consist primarily of trade creditors, bank loans and inter company loan agreements.

 

CREDIT RISK

Credit risk is the loss in the value of financial assets due to counterparties failing to meet all or part of their obligations. The company performs ongoing credit evaluations of its customer's financial condition.

 

LIQUIDITY RISK

Liquidity risk is the risk that the company does not have sufficient liquid assets to meet its obligations as they fall due. Liquidity is maintained at the prudent level and the company ensures there is an adequate liquidity buffer to cover contingencies. The company maintains sufficient cash and credit lines from its bankers to meet its funding requirements.

 

FOREIGN CURRENCY RISK

The company endeavours to mitigate these risks by constantly reviewing product lines and by daily foreign currency management including forward buying foreign currency at best possible market rates.

By order of the board

Mr SJ McBride
Secretary
23 December 2024
MBC SUMMIT HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

The director presents his annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activity of the company continued to be that of importing and distributing footwear, climbing and outdoor equipment, accessories and apparel.

Results and dividends

Ordinary dividends were paid amounting to £276,000. The director does not recommend payment of a further dividend.

Director

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

Mr SD Roberts
Auditor

In accordance with the company's articles, a resolution proposing that Robson Laidler Accountants Limited be reappointed as auditor of the group will be put at a General Meeting.

Statement of director's responsibilities

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

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

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 auditor of the company 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 auditor of the company is aware of that information.

MBC SUMMIT HOLDINGS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
By order of the board
Mr SJ McBride
Mr SD Roberts
Secretary
Director
23 December 2024
MBC SUMMIT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MBC SUMMIT HOLDINGS LIMITED
- 4 -
Opinion

We have audited the financial statements of MBC Summit Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows 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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 director 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 director is 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:

MBC SUMMIT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MBC SUMMIT HOLDINGS LIMITED
- 5 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing 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 director either intends to liquidate the parent company or to cease operations, or has 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The risk of material misstatement due to error or fraud has been assessed in conjunction with how internal controls may mitigate any such risk. These controls are reviewed as part of the audit by performing systems walkthroughs to ensure they are operating effectively. Other substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant.

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.

MBC SUMMIT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MBC SUMMIT HOLDINGS LIMITED
- 6 -

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.

Michael T Moran (FCA) (Senior Statutory Auditor)
For and on behalf of Robson Laidler Accountants Limited
7 January 2025
Statutory Auditor
Fernwood House
Fernwood Road
Jesmond
Newcastle Upon Tyne
Tyne and Wear
England
NE2 1TJ
MBC SUMMIT HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
2024
2023
Notes
£
£
Turnover
2
19,907,480
23,549,795
Cost of sales
(15,777,113)
(18,699,141)
Gross profit
4,130,367
4,850,654
Distribution costs
(949,112)
(1,184,766)
Administrative expenses
(2,622,017)
(2,572,582)
Other operating income
157,766
83,419
Operating profit
3
717,004
1,176,725
Interest payable and similar expenses
5
(333,056)
(205,616)
Amounts written off investments
6
(78,942)
-
Profit before taxation
305,006
971,109
Tax on profit
7
(100,527)
(200,126)
Profit for the financial year
24
204,479
770,983
Other comprehensive income
Cash flow hedges loss arising in the year
(96,379)
(130,013)
Tax relating to other comprehensive income
24,095
32,503
Total comprehensive income for the year
132,195
673,473
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
MBC SUMMIT HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
680,470
741,602
Current assets
Stocks
14
5,562,378
7,291,312
Debtors
15
2,377,919
2,914,032
Cash at bank and in hand
1,173,352
521,764
9,113,649
10,727,108
Creditors: amounts falling due within one year
16
(6,095,570)
(7,589,211)
Net current assets
3,018,079
3,137,897
Total assets less current liabilities
3,698,549
3,879,499
Creditors: amounts falling due after more than one year
17
(474,189)
(561,204)
Provisions for liabilities
Deferred tax liability
19
(39,862)
(10,791)
39,862
10,791
Net assets
3,264,222
3,329,086
Capital and reserves
Called up share capital
21
27,000
27,000
Share premium account
22
522,000
522,000
Hedging reserve
23
(198,050)
(125,766)
Profit and loss reserves
24
2,913,272
2,905,852
Total equity
3,264,222
3,329,086

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved and signed by the director and authorised for issue on 23 December 2024
23 December 2024
Mr SD Roberts
Director
Company registration number 08806450 (England and Wales)
MBC SUMMIT HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
11
1,529,013
1,607,955
Current assets
Debtors
15
-
0
28,199
Creditors: amounts falling due within one year
16
(978,647)
(1,085,788)
Net current liabilities
(978,647)
(1,057,589)
Net assets
550,366
550,366
Capital and reserves
Called up share capital
21
27,000
27,000
Share premium account
22
522,000
522,000
Profit and loss reserves
24
1,366
1,366
Total equity
550,366
550,366

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £275,999 (2023 - £276,000 profit).

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and signed by the director and authorised for issue on 23 December 2024
23 December 2024
Mr SD Roberts
Director
Company registration number 08806450 (England and Wales)
MBC SUMMIT HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Share capital
Share premium account
Hedging reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2022
27,000
522,000
(28,256)
2,410,869
2,931,613
Year ended 30 June 2023:
Profit for the year
-
-
-
770,983
770,983
Other comprehensive income:
Cash flow hedges gains arising in the year
-
-
(130,013)
-
(130,013)
Tax relating to other comprehensive income
-
-
32,503
-
0
32,503
Total comprehensive income for the year
-
-
(97,510)
770,983
673,473
Dividends
8
-
-
-
(276,000)
(276,000)
Balance at 30 June 2023
27,000
522,000
(125,766)
2,905,852
3,329,086
Year ended 30 June 2024:
Profit for the year
-
-
-
204,479
204,479
Other comprehensive income:
Cash flow hedges gains arising in the year
-
-
(96,379)
-
(96,379)
Tax relating to other comprehensive income
-
-
24,095
-
0
24,095
Total comprehensive income for the year
-
-
(72,284)
204,479
132,195
Dividends
8
-
-
-
(197,059)
(197,059)
Balance at 30 June 2024
27,000
522,000
(198,050)
2,913,272
3,264,222
MBC SUMMIT HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2022
27,000
522,000
1,366
550,366
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
-
276,000
276,000
Dividends
8
-
-
(276,000)
(276,000)
Balance at 30 June 2023
27,000
522,000
1,366
550,366
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
276,000
276,000
Dividends
8
-
-
(276,000)
(276,000)
Balance at 30 June 2024
27,000
522,000
1,366
550,366
MBC SUMMIT HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
27
2,732,141
(2,284,557)
Interest paid
(333,056)
(205,616)
Income taxes paid
(49,985)
(482,201)
Net cash inflow/(outflow) from operating activities
2,349,100
(2,972,374)
Investing activities
Purchase of tangible fixed assets
(37,931)
(42,387)
Proceeds on disposal of tangible fixed assets
20,750
-
Proceeds on disposal of investments
(78,942)
-
Receipts arising from loans made
77,644
(77,644)
Net cash used in investing activities
(18,479)
(120,031)
Financing activities
Repayment of bank loans
(487,726)
1,076,176
Dividends paid to equity shareholders
(197,059)
(276,000)
Net cash (used in)/generated from financing activities
(684,785)
800,176
Net increase/(decrease) in cash and cash equivalents
1,645,836
(2,292,229)
Cash and cash equivalents at beginning of year
(2,610,537)
(188,296)
Effect of foreign exchange rates
(96,378)
(130,012)
Cash and cash equivalents at end of year
(1,061,079)
(2,610,537)
Relating to:
Cash at bank and in hand
1,173,352
521,764
Bank overdrafts included in creditors payable within one year
(2,234,431)
(3,132,301)
MBC SUMMIT HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
28
(78,942)
-
0
Investing activities
Dividends received
354,942
276,000
Net cash generated from investing activities
354,942
276,000
Financing activities
Dividends paid to equity shareholders
(276,000)
(276,000)
Net cash used in financing activities
(276,000)
(276,000)
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
-
0
-
0
MBC SUMMIT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
1
Accounting policies
Company information

MBC Summit Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 5, New York Way, New York Industrial Estate, Wallsend, Tyne and Wear, NE27 0QF.

 

The group consists of MBC Summit Holdings Limited and all of its subsidiaries.

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.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company MBC Summit Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 June 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.3
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover represents net invoiced sales of goods, excluding value added tax recognised when goods are dispatched to a customer.

1.5
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.

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 land and buildings
3- 50 years on a straight line basis
Fixtures and fittings
20% on a straight line basis
Motor vehicles
25% on a straight line basis
MBC SUMMIT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -

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 recognised in the profit and loss account.

1.6
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
Impairment of fixed assets

Property, plant and equipment are reviewed for impairment if events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared against its carrying amount. Where the estimated recoverable amount is lower, an impairment loss is recognised immediately in profit and loss.

1.8
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.9
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.

1.10
Financial instruments
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

MBC SUMMIT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
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 group 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
Taxation

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

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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

MBC SUMMIT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
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 if, and only if, there is 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.

1.12
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 leased 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.

1.15

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.

1.16

Hedge accounting

The company designates derivatives which qualify as hedges for accounting purposes as a hedge of the cash flow risk resulting from changes in interest rate or foreign exchange rates. The effectiveness of the hedge is 100% as all amounts are hedged. Accounting treatment is in line with IAS 39 whereby any change in the effective proportion is recognised directly in equity. Amounts accumulated in equity are recycled to the income statement in the period when the hedged item affects profit or loss.

2
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
19,696,379
23,356,966
Europe
211,101
192,829
19,907,480
23,549,795
MBC SUMMIT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
2
Turnover and other revenue
(Continued)
- 18 -
2024
2023
£
£
Other revenue
Commissions received
35,256
2,866
3
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Fees payable to the group's auditor for the audit of the group's financial statements
-
550
Depreciation of owned tangible fixed assets
88,563
100,710
Profit on disposal of tangible fixed assets
(10,250)
-
Operating lease charges
97,228
98,656
4
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
2
2
-
-
Office staff
18
18
-
-
Sales representatives
7
7
-
-
Warehouse staff
15
16
-
-
Total
42
43
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,364,088
1,390,355
-
0
-
0
Social security costs
140,481
139,342
-
-
Pension costs
184,848
120,955
-
0
-
0
1,689,417
1,650,652
-
0
-
0
MBC SUMMIT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
5
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
333,056
205,616
6
Amounts written off investments
2024
2023
£
£
Other gains and losses
(78,942)
-
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
105,503
209,219
Deferred tax
Origination and reversal of timing differences
(4,976)
(9,093)
Total tax charge
100,527
200,126

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

2024
2023
£
£
Profit before taxation
305,006
971,109
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
76,252
242,777
Tax effect of expenses that are not deductible in determining taxable profit
19,735
-
0
Effect of change in corporation tax rate
-
(43,740)
Permanent capital allowances in excess of depreciation
9,516
10,182
Deferred tax
(4,976)
(9,093)
Taxation charge
100,527
200,126
MBC SUMMIT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
7
Taxation
(Continued)
- 20 -

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Revaluation of financial instruments treated as cash flow hedges
(24,095)
(32,503)
8
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
276,000
276,000
9
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2024
2023
Notes
£
£
In respect of:
Fixed asset investments
11
78,942
-
Recognised in:
Amounts written off investments
78,942
-

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

MBC SUMMIT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
10
Tangible fixed assets
Group
Leasehold land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2023
925,410
800,222
80,336
1,805,968
Additions
-
0
37,931
-
0
37,931
Disposals
-
0
(32,632)
(36,000)
(68,632)
At 30 June 2024
925,410
805,521
44,336
1,775,267
Depreciation and impairment
At 1 July 2023
357,139
640,310
66,917
1,064,366
Depreciation charged in the year
18,468
68,106
1,989
88,563
Eliminated in respect of disposals
-
0
(32,632)
(25,500)
(58,132)
At 30 June 2024
375,607
675,784
43,406
1,094,797
Carrying amount
At 30 June 2024
549,803
129,737
930
680,470
At 30 June 2023
568,271
159,912
13,419
741,602
The company had no tangible fixed assets at 30 June 2024 or 30 June 2023.
11
Fixed asset investments
Group
Company
2024
2023
2024
2023
£
£
£
£
Unlisted investments
-
0
-
0
1,529,013
1,607,955
Movements in fixed asset investments
Company
Investments
£
Cost or valuation
At 1 July 2023
1,607,955
Disposals
(78,942)
At 30 June 2024
1,529,013
Carrying amount
At 30 June 2024
1,529,013
At 30 June 2023
1,607,955
MBC SUMMIT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
12
Subsidiaries

Details of the company's subsidiaries at 30 June 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
The Mountain Boot Company Limited
United Kingdom
Import and distribute outdoor equipment
Ordinary
100.00
13
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
-
-
1,529,013
1,607,955
14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
5,562,378
7,291,312
-
0
-
0
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,201,389
2,583,035
-
0
-
0
Amounts owed by group undertakings
-
-
-
28,199
Other debtors
1,280
78,605
-
0
-
0
Prepayments and accrued income
175,250
252,392
-
0
-
0
2,377,919
2,914,032
-
28,199
MBC SUMMIT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
3,902,454
5,201,034
-
0
-
0
Trade creditors
1,120,344
1,299,064
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
978,647
1,085,788
Corporation tax payable
105,503
49,985
-
0
-
0
Other taxation and social security
500,858
636,464
-
-
Other creditors
275,855
178,444
-
0
-
0
Accruals and deferred income
190,556
224,220
-
0
-
0
6,095,570
7,589,211
978,647
1,085,788
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
474,189
561,204
-
0
-
0
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
2,142,212
2,629,937
-
0
-
0
Bank overdrafts
2,234,431
3,132,301
-
0
-
0
4,376,643
5,762,238
-
-
Payable within one year
3,902,454
5,201,034
-
0
-
0
Payable after one year
474,189
561,204
-
0
-
0

The company's bank borrowing are secured by a legal charge over the company's properties and a fixed and floating charge over the company's assets.

 

The mortgage, which is with HSBC Bank plc, is repayable over ten years and interest is being charged at 3.25% plus base rate.

 

Other loans, including hire purchase, are secured on the assets to which the loan relates.

                        

MBC SUMMIT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
26,155
31,131
Hedging
(66,017)
(41,922)
(39,862)
(10,791)
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Asset at 1 July 2023
(10,791)
-
Credit to profit or loss
(4,976)
-
Credit to other comprehensive income
(24,095)
-
Asset at 30 June 2024
(39,862)
-
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
184,848
120,955

The group operates two defined contribution schemes. The assets of the scheme are held separately from those of the group in independently administered funds.

21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
27,000
27,000
27,000
27,000
MBC SUMMIT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
22
Share premium account
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning and end of the year
522,000
522,000
522,000
522,000

The purpose of this reserve is to record the amount above the nominal value received for shares sold, less transaction costs.

23
Hedging reserve
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
(125,766)
(28,256)
-
-
0
Gains and losses on cash flow hedges
(96,379)
(130,013)
-
0
-
0
Tax on gains and losses on cash flow hedges
24,095
32,503
-
-
At the end of the year
(198,050)
(125,766)
-
0
-

This reserve represents movement on options to reduce forex risk.

24
Profit and loss reserves
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
2,905,852
2,410,869
1,366
1,366
Profit for the year
204,479
770,983
276,000
276,000
Dividends
(197,059)
(276,000)
(276,000)
(276,000)
At the end of the year
2,913,272
2,905,852
1,366
1,366
25
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
81,156
81,156
-
-
Between two and five years
99,178
175,078
-
-
180,334
256,234
-
-
MBC SUMMIT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 26 -
26
Controlling party

MBC Summit Holidings Limited is under the control of S D Roberts.

27
Cash generated from/(absorbed by) group operations
2024
2023
£
£
Profit for the year after tax
204,479
770,982
Adjustments for:
Taxation charged
100,527
200,126
Finance costs
333,056
205,616
Gain on disposal of tangible fixed assets
(10,250)
-
Depreciation and impairment of tangible fixed assets
88,563
100,710
Other gains and losses
78,942
-
Movements in working capital:
Decrease/(increase) in stocks
1,728,934
(3,284,838)
Decrease in debtors
458,469
157,036
Decrease in creditors
(250,579)
(434,189)
Cash generated from/(absorbed by) operations
2,732,141
(2,284,557)
28
Cash absorbed by operations - company
2024
2023
£
£
Profit for the year after tax
276,000
276,000
Adjustments for:
Investment income
(354,942)
(276,000)
Other gains and losses
78,942
-
Movements in working capital:
Decrease in debtors
28,199
-
Decrease in creditors
(107,141)
-
Cash absorbed by operations
(78,942)
-
MBC SUMMIT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
29
Analysis of changes in net debt - group
1 July 2023
Cash flows
Exchange rate movements
30 June 2024
£
£
£
£
Cash at bank and in hand
521,764
747,966
(96,378)
1,173,352
Bank overdrafts
(3,132,301)
897,870
-
(2,234,431)
(2,610,537)
1,645,836
(96,378)
(1,061,079)
Borrowings excluding overdrafts
(2,629,937)
487,725
-
(2,142,212)
(5,240,474)
2,133,561
(96,378)
(3,203,291)
30
Analysis of changes in net funds - company
1 July 2023
30 June 2024
£
£
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