Company registration number 06981200 (England and Wales)
MTE Heat Treatment Limited
Unaudited financial statements
For the year ended 31 December 2023
MTE Heat Treatment Limited
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 8
MTE Heat Treatment Limited
Statement of financial position
As at 31 December 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
1,812,265
1,842,219
Current assets
Stocks
169,170
164,483
Debtors
4
1,547,090
1,442,060
Cash at bank and in hand
33,496
484,722
1,749,756
2,091,265
Creditors: amounts falling due within one year
5
(1,035,557)
(1,038,167)
Net current assets
714,199
1,053,098
Total assets less current liabilities
2,526,464
2,895,317
Creditors: amounts falling due after more than one year
6
(36,587)
Provisions for liabilities
(416,000)
(328,000)
Net assets
2,073,877
2,567,317
Capital and reserves
Called up share capital
7
1,000
1,000
Revaluation reserve
8
142,593
228,992
Profit and loss reserves
1,930,284
2,337,325
Total equity
2,073,877
2,567,317
MTE Heat Treatment Limited
Statement of financial position (continued)
As at 31 December 2023
31 December 2023
- 2 -
For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 16 January 2025 and are signed on its behalf by:
Mr B D Redfearn
Director
Company registration number 06981200 (England and Wales)
MTE Heat Treatment Limited
Notes to the financial statements
For the year ended 31 December 2023
- 3 -
1
Accounting policies
Company information
MTE Heat Treatment Limited is a private company limited by shares incorporated in England and Wales. The registered office is Spa Fields Industrial Estate, New Street, Slaithwaite, Huddersfield, HD7 5BB.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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, modified to include the revaluation of certain assets. The principal accounting policies adopted are set out below.
1.2
Going concern
The company has made a loss in the year mainly due to a number of one off events detailed in the exceptional items note. Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents amounts receivable for the provision of heat treatment and general engineering net of VAT and trade discounts recognised on invoice.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on despatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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:
Plant and machinery
7-10% straight line
Fixtures, fittings and equipment
15% straight line
Computer equipment
20-25% straight line
Motor vehicles
20% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
MTE Heat Treatment Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 4 -
1.5
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.
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
MTE Heat Treatment Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 5 -
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
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 income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.9
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.10
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.
MTE Heat Treatment Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 6 -
1.11
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
39
30
3
Tangible fixed assets
Plant and machinery etc
£
Cost or valuation
At 1 January 2023
3,130,983
Additions
418,784
Disposals
(451,663)
At 31 December 2023
3,098,104
Depreciation and impairment
At 1 January 2023
1,288,764
Depreciation charged in the year
177,025
Eliminated in respect of disposals
(179,950)
At 31 December 2023
1,285,839
Carrying amount
At 31 December 2023
1,812,265
At 31 December 2022
1,842,219
At 31 December 2013, a number of classes of plant and machinery were revalued on an open market basis at the balance sheet date, based on a report produced by Eddisons Chartered Surveyors.
If the revalued assets had not been revalued, they would have been carried at a historical cost value of £52,342 (2022 - £73,787) less accumulated depreciation of £48,520 (2022 - £68,364). Their current value in the accounts is £395,110 (2022 - £546,260) less accumulated depreciation of £248,694 (2022 - £311,843).
The directors believe the current net book value is a true reflection of the valuation of the assets held.
MTE Heat Treatment Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
3
Tangible fixed assets
(Continued)
- 7 -
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
651,667
564,434
Amounts owed by group undertakings
772,795
773,295
Other debtors
122,628
104,331
1,547,090
1,442,060
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
198
Trade creditors
537,256
531,612
Amounts owed to group undertakings
164,931
270
Taxation and social security
48,286
335,592
Other creditors
285,084
170,495
1,035,557
1,038,167
Amounts due under finance leases and hire purchase contracts of £7,900 (2022 - £14,650) included within other creditors are secured against the assets which they relate to,
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Obligations under finance leases
36,587
Amounts due under finance leases and hire purchase contracts are secured against the assets which they relate to.
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
500
500
500
500
Ordianry B shares of £1 each
500
500
500
500
1,000
1,000
1,000
1,000
MTE Heat Treatment Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 8 -
8
Revaluation reserve
2023
2022
£
£
At the beginning of the year
228,992
262,761
Transfer to retained earnings
(86,399)
(33,769)
At the end of the year
142,593
228,992
9
Financial commitments, guarantees and contingent liabilities
There are fixed and floating charges in place on the assets of the company as security against bank loans and overdrafts and other creditors for the benefit of group undertakings.
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
2,340,000
2,520,000
11
Contingent assets
An insurance claim in respect of a fire in November 2023 was settled for £656,293 during the year ended 31 December 2024.
12
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
Loan to director
-
-
20,000
20,000
-
20,000
20,000