Company registration number 12481604 (England and Wales)
TUNSTEAD MILL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
TUNSTEAD MILL LIMITED
COMPANY INFORMATION
Directors
Mr J E Morten
Mrs M L Morten
Mr E Morten
Company number
12481604
Registered office
Newfield Garage
Tunstead Milton
Whaley Bridge
High Peak
Derbyshire
SK23 7ER
Auditor
PKF Smith Cooper Audit Limited
Prospect House
1 Prospect Place
Pride Park
Derby
DE24 8HG
TUNSTEAD MILL LIMITED
CONTENTS
Page
Group strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 25
TUNSTEAD MILL LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -

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

Review of the business

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

 

The group continues to run foodstuffs and the manufacture of Adblue.

 

As for many businesses of our size, the business environment in which we operate remains challenging and over recent years the consumer markets are increasingly more competitive and of course is always subject to fluctuations of consumer spending in the economy.

 

With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside our control.

 

Turnover has experienced a decline of £7.88m (33.15%) in the current year to £15.89m.The war in Ukraine has had an effect on the global availability and distribution of Adblue.

 

The balance sheet has strengthened and the group now has net current assets of £5.59m compared to the previous year of £3.10m. Net assets have also increased to £6.93m from £4.37m.

Principal risks and uncertainties

The directors have considered the principal risks and uncertainties to which the group is exposed and this is taken into account when making key strategic decisions. The main risk facing the group, being the continued impact of general economic conditions in the UK.

With these risks in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control.

Key performance indicators

We consider that our key financial performance indicators are those that communicate the financial performance and strength of the group as a whole, these being turnover, gross margin and EBITDA.

On behalf of the board

Mr J E Morten
Director
31 December 2024
TUNSTEAD MILL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
Statement of directors' responsibilities

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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. They are 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.

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

Principal activities

The principal activity of the company and group continued to be that of animal foodstuffs and AdBlue manufacture.

Results and dividends

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

Ordinary dividends were paid amounting to £21,000. The directors do not recommend payment of a further dividend.

Directors

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

Mr J E Morten
Mrs M L Morten
Mr E Morten
Financial instruments

The company's operations expose it to a variety of financial risks that include the effects of changes in credit risk, liquidity risk and interest rate risk.

 

The company has implemented policies that require appropriate credit check before a sale is made. The company maintains an invoice discounting facility, to ensure the company has sufficient funds for its operations.

Future developments

The company has continued to trade profitably after the financial year end and there have been no significant post balance sheet events noted, nor any significant changes or future developments in the business.

TUNSTEAD MILL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -
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.

Post balance sheet events

There have been no significant events affecting the company since the year end.

Auditors

Under section 487(2) of the Companies Act 2006, PKF Smith Cooper Audit Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr J E Morten
Director
31 December 2024
TUNSTEAD MILL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TUNSTEAD MILL LIMITED
- 4 -

Qualified opinion

We have audited the financial statements J E Morten Limited (the ‘company’) for the year ended 31st January 2024 which comprise the profit and loss account, 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, except for the effects of the matter described in the basis for qualified opinion section, the financial statements:

Basis for qualified opinion

As the prior year financial statements were unaudited, we did not observe the counting of physical stock as at 31 January 2023. During our audit, we have been unable to obtain sufficient appropriate audit evidence concerning the quantities or valuation of stock held as at 31 January 2023, which is valued in the balance sheet at £940,582. Consequently, we were unable to determine whether any adjustment to this amount or other related balances such as cost of sales was necessary. In addition, were any adjustment to the stock balance to be required, the strategic report would also need to be amended.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 qualified 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 year 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.

TUNSTEAD MILL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TUNSTEAD MILL LIMITED
- 5 -

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the stock figure of £940,582 held as at 31 January. We have concluded that where the other information refers to the stock balance or related balances such as cost of sales, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

Except for the matters described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors’ Report.

Arising solely from the limitation on the scope of our work referred to above:

 

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

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 2, 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.

 

TUNSTEAD MILL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TUNSTEAD MILL LIMITED
- 6 -
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 Auditors' 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Based on our understanding of the company and industry, we identified that the principal risk of fraud or non-compliance with laws and regulations related to:

We focussed on those areas that could give rise to a material misstatement in the Company financial statements. Our procedures included, but were not limited to:

It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

 

 

TUNSTEAD MILL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TUNSTEAD MILL LIMITED
- 7 -

Other matters    

The financial statements of the Company for the year ended 31 January 2023 were unaudited.

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.

Mr James Delve (Senior Statutory Auditor)
For and on behalf of PKF Smith Cooper Audit Limited
10 January 2025
Accountants
Statutory Auditor
Prospect House
1 Prospect Place
Pride Park
Derby
DE24 8HG
TUNSTEAD MILL LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
15,892,316
23,770,507
Cost of sales
(11,680,004)
(21,132,047)
Gross profit
4,212,312
2,638,460
Administrative expenses
(873,567)
(745,880)
Operating profit
4
3,338,745
1,892,580
Interest receivable and similar income
8
80,772
-
0
Interest payable and similar expenses
9
(2,954)
(80)
Profit before taxation
3,416,563
1,892,500
Tax on profit
10
(835,236)
(392,464)
Profit for the financial year
2,581,327
1,500,036
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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

 

There was no other comprehensive income for 2024 (2023: £nil)

TUNSTEAD MILL LIMITED
GROUP BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,602,481
1,508,367
Current assets
Stocks
15
680,732
940,582
Debtors
16
1,994,503
2,999,578
Cash at bank and in hand
17
4,360,063
1,322,986
7,035,298
5,263,146
Creditors: amounts falling due within one year
18
(1,442,412)
(2,165,719)
Net current assets
5,592,886
3,097,427
Total assets less current liabilities
7,195,367
4,605,794
Provisions for liabilities
Deferred tax liability
19
268,372
239,126
(268,372)
(239,126)
Net assets
6,926,995
4,366,668
Capital and reserves
Called up share capital
21
150,100
150,100
Other reserves
22
319,419
319,419
Profit and loss reserves
22
6,457,476
3,897,149
Total equity
6,926,995
4,366,668

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

The financial statements were approved by the board of directors and authorised for issue on 31 December 2024 and are signed on its behalf by:
31 December 2024
Mr J E Morten
Director
Company registration number 12481604 (England and Wales)
TUNSTEAD MILL LIMITED
COMPANY BALANCE SHEET
AS AT 31 JANUARY 2024
31 January 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,036
-
0
Investments
13
150,100
150,100
152,136
150,100
Debtors
16
21,000
-
0
Creditors: amounts falling due within one year
18
(24,596)
(1,010)
Net current liabilities
(3,596)
(1,010)
Net assets
148,540
149,090
Capital and reserves
Called up share capital
21
150,100
150,100
Profit and loss reserves
22
(1,560)
(1,010)
Total equity
148,540
149,090

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 £20,450 (2023 - £20,480 profit).

The financial statements were approved by the board of directors and authorised for issue on 31 December 2024 and are signed on its behalf by:
31 December 2024
Mr J E Morten
Director
Company registration number 12481604 (England and Wales)
TUNSTEAD MILL LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 11 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 February 2022
150,100
319,419
2,418,113
2,887,632
Year ended 31 January 2023:
Profit and total comprehensive income
-
-
1,500,036
1,500,036
Dividends
11
-
-
(21,000)
(21,000)
Balance at 31 January 2023
150,100
319,419
3,897,149
4,366,668
Year ended 31 January 2024:
Profit and total comprehensive income
-
-
2,581,327
2,581,327
Dividends
11
-
-
(21,000)
(21,000)
Balance at 31 January 2024
150,100
319,419
6,457,476
6,926,995
TUNSTEAD MILL LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 February 2022
150,100
(490)
149,610
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
20,480
20,480
Dividends
11
-
(21,000)
(21,000)
Balance at 31 January 2023
150,100
(1,010)
149,090
Year ended 31 January 2024:
Profit and total comprehensive income
-
20,450
20,450
Dividends
11
-
(21,000)
(21,000)
Balance at 31 January 2024
150,100
(1,560)
148,540
TUNSTEAD MILL LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
4,245,729
393,525
Income taxes paid
(842,164)
(15,191)
Net cash inflow from operating activities
3,403,565
378,334
Investing activities
Purchase of tangible fixed assets
(428,806)
(505,611)
Proceeds from disposal of tangible fixed assets
5,500
-
Interest received
80,772
-
0
Net cash used in investing activities
(342,534)
(505,611)
Financing activities
Interest paid
(2,954)
(80)
Dividends paid to equity shareholders
(21,000)
(21,000)
Net cash used in financing activities
(23,954)
(21,080)
Net increase/(decrease) in cash and cash equivalents
3,037,077
(148,357)
Cash and cash equivalents at beginning of year
1,322,986
1,471,343
Cash and cash equivalents at end of year
4,360,063
1,322,986
TUNSTEAD MILL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 14 -
1
Accounting policies
Company information

Tunstead Mill Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of Tunstead Mill Limited and all of its subsidiaries.

 

Details of the company registered address are included on the company's information page.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. 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 Tunstead Mill 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 31 January 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 the control commences until the date that control ceases.

 

When the Group has acquired subsidiary entities by the issue of the shares in itself it has taken advantage of the mergers relief provisions of the Companies Act and has accounted for the difference between the nominal value of the shares issued and the fair value of the assets acquired via the merger relief reserve rather than creating a share premium account.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.4
Turnover

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

TUNSTEAD MILL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 15 -

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of turnover 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.

1.5
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:

Land and buildings
2% reducing balance
Office equipment
15% reducing balance
Plant and equipment
15% reducing balance
Motor vehicles
25% reducing balance

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

A full years depreciation is included in the year of acquisition. If an asset is disposed of in the year, no depreciation charge is provided for.

 

Land and buildings include freehold buildings and land. Freehold Property is stated at cost (or deemed cost for freehold property held at valuation at the date of transition to FRS 102) less accumulated depreciation.

The group previously adopted a policy of revaluing land and buildings and they were stated at their revalued amount less any subsequent depreciation. The group has adopted the transition exemption under FRS 102 paragraph 35.10(d) and has elected to use the previous revaluation as deemed cost.

1.6
Fixed asset investments

Equity investments are measured at fair value through profit and 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
Stocks

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

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

TUNSTEAD MILL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 16 -
1.8
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.

1.9
Financial instruments
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 group 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.

1.10
Equity instruments

Equity instruments issued by the group 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 group.

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.

TUNSTEAD MILL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 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
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.

1.13

Pensions

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

 

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

TUNSTEAD MILL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 18 -
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Feed & Urea sales
15,549,407
22,830,708
Farm sales
8,496
6,554
Haulage and workshop sales
334,413
933,245
15,892,316
23,770,507

All turnover was generated in the United Kingdom.

4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(2,129)
-
Depreciation of owned tangible fixed assets
334,566
297,304
Profit on disposal of tangible fixed assets
(5,374)
-
5
Auditor's remuneration
2024
2023
During the period, the Group obtained the following services from the Company's auditors:
£
£
Audit of the financial statements of the group and company
5,000
-
Audit of the financial statements of the companys subsidiaries
10,000
-
15,000
-
6
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
28
25
3
3
TUNSTEAD MILL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
6
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,107,423
1,058,497
-
0
-
0
Social security costs
112,612
109,212
-
-
Pension costs
22,257
17,808
-
0
-
0
1,242,292
1,185,517
-
0
-
0

During the period retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution pension schemes.

7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
20,800
20,950
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
80,772
-
0
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
2,954
80
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
805,990
293,642
Deferred tax
Origination and reversal of timing differences
29,246
98,822
Total tax charge
835,236
392,464
TUNSTEAD MILL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
10
Taxation
(Continued)
- 20 -

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
3,416,563
1,892,500
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
854,141
359,575
Tax effect of expenses that are not deductible in determining taxable profit
93,736
56,320
Effect of change in corporation tax rate
(32,530)
-
Group relief
(1)
-
0
Pension movement
(622)
360
Capital allowances
(108,734)
(122,613)
Deferred tax movement
29,246
98,822
Taxation charge
835,236
392,464

Factors that may affect future tax charges

 

There were no factors that may affect future tax charges.

11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
21,000
21,000
TUNSTEAD MILL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 21 -
12
Tangible fixed assets
Group
Land and buildings
Office equipment
Plant and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 February 2023
617,893
57,918
1,829,659
1,703,685
4,209,155
Additions
11,410
1,530
35,106
380,760
428,806
Disposals
-
0
-
0
-
0
(61,334)
(61,334)
At 31 January 2024
629,303
59,448
1,864,765
2,023,111
4,576,627
Depreciation and impairment
At 1 February 2023
212,299
31,211
1,355,453
1,101,825
2,700,788
Depreciation charged in the year
8,302
4,234
76,398
245,632
334,566
Eliminated in respect of disposals
-
0
-
0
-
0
(61,208)
(61,208)
At 31 January 2024
220,601
35,445
1,431,851
1,286,249
2,974,146
Carrying amount
At 31 January 2024
408,702
24,003
432,914
736,862
1,602,481
At 31 January 2023
405,594
26,707
474,206
601,860
1,508,367
Company
Land and buildings
£
Cost
At 1 February 2023
-
0
Additions
2,036
At 31 January 2024
2,036
Depreciation and impairment
At 1 February 2023 and 31 January 2024
-
0
Carrying amount
At 31 January 2024
2,036

The Company applied the transitional arrangements of Section 35 of FRS 102 and used a previous valuation as the deemed cost for its freehold property. The properties are being depreciated from the valuation date. Prior to the transition date the freehold properties were last revalued in 1996 by an independent valuer, based upon active market values.

TUNSTEAD MILL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 22 -
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
150,100
150,100
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 February 2023 and 31 January 2024
150,100
Carrying amount
At 31 January 2024
150,100
At 31 January 2023
150,100
14
Subsidiaries

Details of the company's subsidiaries at 31 January 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
J E Morten Limited
Newfield Garage, Tunstead Milton, Whaley Bridge, High Peak, Derbyshire, United Kingdomw, SK23 7ER
Ordinary
100.00
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
680,732
940,582
-
-

No impairment or provision (2023: £Nil) has been recognised during the period against stock.

TUNSTEAD MILL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 23 -
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,580,466
2,974,446
-
0
-
0
Amounts owed by group undertakings
-
490
21,000
-
Other debtors
373,195
-
-
0
-
0
Prepayments and accrued income
40,842
24,642
-
0
-
0
1,994,503
2,999,578
21,000
-

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

 

A provision of £8,058 (2023: £Nil) has been made against trade debtors at the year end. An impairment loss of £42,138 (2023:£1,759) has been recognised during the year.

17
Cash at Bank and in hand
2024
2023
£
£
Cash at bank and in hand
4,360,063
1,322,986
4,360,063
1,322,986
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
309,274
642,068
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
3,046
-
0
Corporation tax payable
257,468
293,642
-
0
-
0
Other taxation and social security
114,011
511,325
-
-
Other creditors
111,397
82,838
21,550
1,010
Accruals and deferred income
650,262
635,846
-
0
-
0
1,442,412
2,165,719
24,596
1,010

Included within other creditors is £60,779 (2023: £64,308) owed to the directors.

 

Amounts owed to Group undertakings are unsecured, interest free and repayable on demand.

TUNSTEAD MILL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 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
268,372
239,126
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 February 2023
239,126
-
Charge to profit or loss
29,246
-
Liability at 31 January 2024
268,372
-

The deferred tax movement is expected to be immaterial.

20
Pensions
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
22,257
17,808

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £22,257 (2023: £17,808). Contributions totalling £6,537 (2023: £5,583) were payable to the fund at the balance sheet date and are include in the creditors.

 

21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
150,100
150,100
150,100
150,100
TUNSTEAD MILL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 25 -
22
Reserves
Profit and loss reserves

This reserve records all the current and prior period retained profit and losses.

23
Related party transactions

Included in other creditors is £60,779 (2023: £64,308) owing to the directors.

 

Total remuneration paid to key management personnel for the year was £26,000.

 

The directors consider there to be no further key management personnel other than themselves.

 

Tunstead Mill Limited owns 100% of the share capital of J E Morten Limited and is owned and controlled by the directors of Tunstead Mill Limited. The company has relied on the exemption available under FRS 102 from reporting transactions with group companies which are wholly owned.

24
Ultimate controlling party

The ultimate controlling party is J E Morten by virtue of his 99.97% interest in the equity of the holding company.

25
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
2,581,327
1,500,036
Adjustments for:
Taxation charged
835,236
392,464
Finance costs
2,954
80
Investment income
(80,772)
-
0
Gain on disposal of tangible fixed assets
(5,374)
-
Depreciation and impairment of tangible fixed assets
334,566
297,304
Movements in working capital:
Decrease/(increase) in stocks
259,850
(410,637)
Decrease/(increase) in debtors
1,005,075
(1,417,533)
(Decrease)/increase in creditors
(687,133)
31,811
Cash generated from operations
4,245,729
393,525
26
Analysis of changes in net funds - group
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
1,322,986
3,037,077
4,360,063
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