Company registration number 04453452 (England and Wales)
MIXING SOLUTIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
MIXING SOLUTIONS LIMITED
COMPANY INFORMATION
Directors
J M Easley
P J Ryan
M E Shanahan
Company number
04453452
Registered office
C/O SPX Flow Europe Limited, Part Ground Floor
Alexander House
4 Station Road
Cheadle Hulme
United Kingdom
SK8 5AE
Auditor
Azets Audit Services
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS
MIXING SOLUTIONS LIMITED
CONTENTS
Page
Directors' report
1 - 2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Income statement
7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 19
MIXING SOLUTIONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company is solely dedicated to the design and manufacture of agitation equipment.
Fair review of the business
During the year ended 31 December 2021, the company's immediate parent, Philadelphia Mixing Solutions LLC, was acquired by SPX Flow Inc which resulted in a change in Mixing Solutions Limited's ultimate parent company. As part of the acquisition the office and factory occupied by the company was vacated, with the majority of tangible assets transferred to another SPX Flow group company or scrapped.
The company is continuing to make sales and trade, with the support of the SPX Flow group.
Results and dividends
The results for the year are set out on page 7.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J M Easley
P J Ryan
M E Shanahan
Auditor
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Going Concern
The financial statements for the year ended 31 December 2023 show a profit before tax of £1,783,910 (2022 - £617,731). The company has net current assets of £2,830,685 (2022 - £1,052,544) and net assets of £2,839,747 (2022 - net assets of £1,054,630) including cash of £305,898. The financial statements have been prepared on a going concern basis which assumes the company will continue in operational existence for the foreseeable future.
The company meets its day to day working capital requirements through cash generated from operations and with working capital support from other group companies. The directors of the company have prepared forecasts and have used these as part of their overall assessment of the company's prospects over the period of twelve months from the approval of these financial statements. The directors have also made enquiries of the parent company SPX Flow, Inc. about its intentions for the company for the foreseeable future.
After making these enquiries, the directors are satisfied that operations will continue and support will be given if required, for the foreseeable future. The company's forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance.
On the basis of the above information the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and so they continue to adopt the going concern basis of accounting in preparing the financial statements.
MIXING SOLUTIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
On behalf of the board
M E Shanahan
Director
17 January 2025
MIXING SOLUTIONS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
MIXING SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MIXING SOLUTIONS LIMITED
- 4 -
Opinion
We have audited the financial statements of Mixing Solutions Limited (the 'company') for the year ended 31 December 2023 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
MIXING SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MIXING SOLUTIONS LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
MIXING SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MIXING SOLUTIONS LIMITED
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
We identified the following applicable laws and regulations as those most likely to have a material impact on the financial statements: Health and Safety; and compliance with the UK Companies Act.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; and
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Claire Hinshaw ACCA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
19 January 2025
Chartered Accountants
Statutory Auditor
Bulman House
Regent Centre
Gosforth
Newcastle upon Tyne
NE3 3LS
MIXING SOLUTIONS LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
4,748,031
3,765,811
Cost of sales
(2,181,639)
(2,238,116)
Gross profit
2,566,392
1,527,695
Administrative expenses
(793,820)
(890,835)
Operating profit
4
1,772,572
636,860
Interest receivable and similar income
8
18,801
963
Interest payable and similar expenses
9
(7,463)
(20,092)
Profit before taxation
1,783,910
617,731
Tax on profit
10
1,207
714
Profit for the financial year
1,785,117
618,445
The income statement has been prepared on the basis that all operations are continuing operations.
MIXING SOLUTIONS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
£
£
Profit for the year
1,785,117
618,445
Other comprehensive income
-
-
Total comprehensive income for the year
1,785,117
618,445
MIXING SOLUTIONS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
10,009
19,725
Current assets
Stocks
12
142,214
149,686
Debtors
13
2,556,641
1,145,903
Cash at bank and in hand
305,898
172,593
3,004,753
1,468,182
Creditors: amounts falling due within one year
14
(174,068)
(415,638)
Net current assets
2,830,685
1,052,544
Total assets less current liabilities
2,840,694
1,072,269
Provisions for liabilities
Provisions
15
947
17,639
(947)
(17,639)
Net assets
2,839,747
1,054,630
Capital and reserves
Called up share capital
18
120
120
Share premium account
1,424,664
1,424,664
Profit and loss reserves
1,414,963
(370,154)
Total equity
2,839,747
1,054,630
The financial statements were approved by the board of directors and authorised for issue on 17 January 2025 and are signed on its behalf by:
M E Shanahan
Director
Company Registration No. 04453452
MIXING SOLUTIONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
120
1,424,664
(988,599)
436,185
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
618,445
618,445
Balance at 31 December 2022
120
1,424,664
(370,154)
1,054,630
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
1,785,117
1,785,117
Balance at 31 December 2023
120
1,424,664
1,414,963
2,839,747
MIXING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information
Mixing Solutions Limited is a private company limited by shares incorporated in England and Wales. The registered office is C/o SPX Flow Europe Limited, Part Ground Floor, Alexander House, 4 Station Road, Cheadle Hulme, United Kingdom, SK8 5AE.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of SPX Flow, Inc. These consolidated financial statements are available upon request from 13320 Ballantyne Corporate Place, Charlotte, Noth Carolina, United States, 28277.
Parent and ultimate parent undertaking
The company's immediate parent is Philadelphia Mixing Solutions LLC, incorporated in United States of America.
On April 5, 2022, SPX Flow Inc. completed the transactions in Agreement and Plan of Merger, dated as of December 12, 2021 with LSF11 Redwood Acquisitions, LLc, a Delaware limited liability company ("Parent"), and Redwood Star Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of Parent ("Merger Sub"). All shares of SPX Flow, Inc. were acquired in the transaction.
MIXING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.2
Going concern
The financial statements for the year ended 31 December 2023 show a profit before tax of £1,783,910 (2022 - £617,731). The company has net current assets of £2,830,685 (2022 - £1,052,544) and net assets of £2,839,747 (2022 - net assets of £1,054,630) including cash of £305,898. The financial statements have been prepared on a going concern basis which assumes the company will continue in operational existence for the foreseeable future.true
The company meets its day to day working capital requirements through cash generated from operations and with working capital support from other group companies.
The directors of the company have prepared forecasts and have used these as part of their overall assessment of the company's prospects over the period of twelve months from the approval of these financial statements. The directors have also made enquiries of the parent company SPX Flow, Inc. about its intentions for the company for the foreseeable future. After making these enquiries, the directors are satisfied that operations will continue and support will be given if required, for the foreseeable future.
1.3
Turnover
Turnover, which all relates to continuing activities, is stated net of value added tax and trade discounts and represents amounts invoiced to third parties excluding freight. The turnover is attributable to the design, assembly and distribution of mixing equipment and process solutions to process industries. Turnover is recognised as soon as the contract sales terms have been met.
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
10 years straight line
Office Equipment
3-10 years 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.
1.5
Stocks
Stock is stated at the lower of cost and net realisable value. Net realisable value is the estimated selling price less all costs to be incurred. Stock valuation is based on standard cost which includes 12% overhead burden in alignment with a group policy. Standard costs are reviewed regularly to ensure they are an accurate reflection of actual costs with variances capitalised or expensed as required.
Provision is made for obsolete, slow moving or defective items where appropriate.
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.
MIXING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
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.
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.
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.
1.7
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.
MIXING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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.
1.8
Provisions
Provisions are recognised when the company has a present obligation as a result of a past event, it is probable that a transfer of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. A provision is made for the estimated liability on all products still under warranty, including claims already received.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.11
Foreign exchange
Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
There are no key assumption and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
3
Turnover and other revenue
MIXING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 15 -
2023
2022
£
£
Turnover analysed by geographical market
UK
27,704
181,055
Europe
992,732
1,236,418
Rest of World
3,727,595
2,348,338
4,748,031
3,765,811
2023
2022
£
£
Other revenue
Interest income
18,801
963
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
6,095
6,668
Loss on disposal of tangible fixed assets
3,621
3,463
Operating lease charges
-
129
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
17,250
16,750
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Management staff
2
MIXING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 16 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
34,313
Social security costs
-
7,008
Pension costs
5,508
46,829
7
Directors' remuneration
No remuneration was paid to the directors.
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
18,801
963
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
-
6,695
Interest payable to group undertakings
18,255
8,861
Exchange differences on financing transactions
(10,792)
4,536
7,463
20,092
10
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
(1)
Deferred tax
Origination and reversal of timing differences
(1,134)
41,536
Changes in tax rates
(72)
13,116
Adjustment in respect of prior periods
(55,366)
Total deferred tax
(1,206)
(714)
Total tax credit
(1,207)
(714)
MIXING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 17 -
The actual credit 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:
2023
2022
£
£
Profit before taxation
1,783,910
617,731
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
419,576
117,369
Effect of change in corporation tax rate
(72)
13,116
Group relief
(420,711)
(75,833)
Deferred tax adjustments in respect of prior years
(55,366)
Taxation credit for the year
(1,207)
(714)
11
Tangible fixed assets
Plant and machinery
Office Equipment
Total
£
£
£
Cost
At 1 January 2023
175,513
21,937
197,450
Disposals
(20,590)
(6,970)
(27,560)
At 31 December 2023
154,923
14,967
169,890
Depreciation and impairment
At 1 January 2023
172,150
5,575
177,725
Depreciation charged in the year
1,111
4,984
6,095
Eliminated in respect of disposals
(19,877)
(4,062)
(23,939)
At 31 December 2023
153,384
6,497
159,881
Carrying amount
At 31 December 2023
1,539
8,470
10,009
At 31 December 2022
3,363
16,362
19,725
12
Stocks
2023
2022
£
£
Work in progress
-
1,825
Finished goods and goods for resale
142,214
147,861
142,214
149,686
MIXING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
422,413
925,338
Corporation tax recoverable
64,200
Amounts owed by group undertakings
1,788,790
92,010
Other debtors
10,411
50,920
Prepayments and accrued income
331,956
11,570
2,553,570
1,144,038
Deferred tax asset (note 16)
3,071
1,865
2,556,641
1,145,903
14
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
168,308
109,145
Amounts owed to group undertakings
189,327
Accruals and deferred income
5,760
117,166
174,068
415,638
15
Provisions for liabilities
2023
2022
£
£
947
17,639
The provision relates to warranty on equipment. The warranty accrual is calculated as a percentage of sales and includes claims already received but not yet completed. The provision for general warranty claims will be utilised as needed and will remain on the balance sheet for the duration of the warranty period.
Movements on provisions:
£
At 1 January 2023
17,639
Reversal of provision
(16,692)
At 31 December 2023
947
MIXING SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2023
2022
Balances:
£
£
Accelerated capital allowances
3,071
1,865
2023
Movements in the year:
£
Asset at 1 January 2023
(1,865)
Credit to profit or loss
(1,206)
Asset at 31 December 2023
(3,071)
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
-
5,508
The company operated a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share capital of £1 each
120
120
120
120
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