Company registration number 01292228 (England and Wales)
J E MORTEN LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
J E MORTEN LIMITED
COMPANY INFORMATION
Directors
Mr J E Morten
Mr E Morten
Secretary
Mrs M L Morten
Company number
01292228
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
J E MORTEN LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 22
J E MORTEN LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -
The directors present the 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 Company 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 (33.14%) 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 company now has net current assets of £5.60m 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 company is exposed and this is taken into account when making key strategic decisions. The main risk facing the company, 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 company as a whole, these being turnover, gross margin and EBITDA.
Mr J E Morten
Director
31 December 2024
J E MORTEN 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. The directors are also responsible for preparing the strategic and Directors' report.
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.
The directors present their annual report and financial statements for the year ended 31 January 2024.
Principal activities
The principal activity of the company 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
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.
J E MORTEN 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 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.
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
J E MORTEN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF J E MORTEN LIMITED
- 4 -
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:
give a true and fair view of the state of the Company’s affairs as at 31 January 2024 and of the profit/loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for 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.
J E MORTEN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF J E MORTEN LIMITED (CONTINUED)
- 5 -
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:
the information given in the Strategic Report and the report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the report of the Director has been prepared in accordance with applicable legal requirements.
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:
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 directors' remuneration specified by law are not made;
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.
J E MORTEN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF J E MORTEN LIMITED (CONTINUED)
- 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:
management bias in respect of accounting estimates and judgements made;
management override of control;
posting of unusual journals or transactions.
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:
Enquiry of management and those charged with governance around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud;
Reviewing minutes of meetings of those charged with governance where available;
Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud/and enquiries with third party advisors about potential claims;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Performing audit work over the risk of management 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 bias.
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 for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
The financial statements of the Company for the year ended 31 January 2023 were unaudited.
J E MORTEN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF J E MORTEN LIMITED (CONTINUED)
- 7 -
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
J E MORTEN LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2024
- 8 -
2024
2023
as restated
£
£
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
(873,017)
(745,360)
Interest receivable and similar income
8
80,772
Interest payable and similar expenses
9
(2,954)
(80)
Profit before taxation
3,417,113
1,893,020
Tax on profit
10
(835,236)
(392,464)
Profit for the financial year
2,581,877
1,500,556
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)
J E MORTEN LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 9 -
2024
2023
as restated
£
£
Profit for the year
2,581,877
1,500,556
Other comprehensive income
-
-
Total comprehensive income for the year
2,581,877
1,500,556
J E MORTEN LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 10 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,600,445
1,508,367
Current assets
Stocks
13
680,732
940,582
Debtors
14
1,997,549
2,999,578
Cash at bank and in hand
15
4,360,063
1,322,986
7,038,344
5,263,146
Creditors: amounts falling due within one year
16
(1,441,862)
(2,164,709)
Net current assets
5,596,482
3,098,437
Total assets less current liabilities
7,196,927
4,606,804
Provisions for liabilities
Deferred tax liability
17
268,372
239,126
(268,372)
(239,126)
Net assets
6,928,555
4,367,678
Capital and reserves
Called up share capital
19
150,100
150,100
Other reserves
20
319,419
319,419
Profit and loss reserves
20
6,459,036
3,898,159
Total equity
6,928,555
4,367,678
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
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:
Mr J E Morten
Director
Company registration number 01292228 (England and Wales)
J E MORTEN LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 11 -
Share capital
Other reserves
Profit and loss reserves
Total
Note
£
£
£
£
Balance at 1 February 2022
150,100
319,419
2,418,603
2,888,122
Year ended 31 January 2023:
Profit and total comprehensive income
-
-
1,533,998
1,533,998
Dividends
11
-
-
(21,000)
(21,000)
Balance at 31 January 2023 (as previously stated)
150,100
319,419
3,931,601
4,401,120
Prior year adjustment
23
-
-
(33,442)
(33,442)
Balance at 31 January 2023 (as restated)
150,100
319,419
3,898,159
4,367,678
Year ended 31 January 2024:
Profit and total comprehensive income
-
-
2,581,877
2,581,877
Dividends
11
-
-
(21,000)
(21,000)
Balance at 31 January 2024
150,100
319,419
6,459,036
6,928,555
J E MORTEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 12 -
1
Accounting policies
Company information
J E Morten Limited is a private company limited by shares incorporated in England and Wales. The registered office is Newfield Garage, Tunstead Milton, Whaley Bridge, High Peak, Derbyshire, SK23 7ER. The company registration number is 01292228.
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.
The company has taken advantage of the following disclosure exemptions in preparing these financial statements as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Tunstead Mill Ltd as at 31 January 2024 and these financial statements may be obtained from Companies House.
1.2
Going concern
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 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.
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 dispatch 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.
J E MORTEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 13 -
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:
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 credited or charged to profit or loss.
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 Company previously adopted a policy of revaluing land and buildings and they were stated at their revalued amount less any subsequent depreciation. The Company has adopted the transition exemption under FRS 102 paragraph 35.10(d) and has elected to use the previous revaluation as deemed cost.
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.
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
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.
1.7
Financial instruments
Basic financial assets
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account.
1.8
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.
J E MORTEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 14 -
1.9
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 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 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 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.
1.10
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.
1.11
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.
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.
J E MORTEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 15 -
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Feed and 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)
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
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
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
15,000
The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
25
22
J E MORTEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
6
Employees
(Continued)
- 16 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,107,423
1,058,497
Social security costs
112,612
109,212
Pension costs
22,257
17,808
1,242,292
1,185,517
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
9
Interest payable and similar expenses
2024
2023
£
£
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
J E MORTEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
10
Taxation
(Continued)
- 17 -
Factors affecting tax charge for the year
The tax assessed for the year is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:
2024
2023
£
£
Profit before taxation
3,417,113
1,893,020
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
854,278
359,674
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
(138)
(99)
Pension movement
(622)
360
Capital allowances
(108,734)
(122,613)
Deferred tax movement
29,246
98,822
Taxation charge for the year
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
£
£
Final paid
21,000
21,000
J E MORTEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 18 -
12
Tangible fixed assets
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
9,374
1,530
35,106
380,760
426,770
Disposals
(61,334)
(61,334)
At 31 January 2024
627,267
59,448
1,864,765
2,023,111
4,574,591
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
(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
406,666
24,003
432,914
736,862
1,600,445
At 31 January 2023
405,594
26,707
474,206
601,860
1,508,367
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.
13
Stocks
2024
2023
£
£
Raw materials and consumables
680,732
940,582
No impairment or provision (2023: £Nil) has been recognised during the period against stock.
J E MORTEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 19 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,580,466
2,974,446
Amounts owed by group undertakings
3,046
490
Other debtors
373,195
Prepayments and accrued income
40,842
24,642
1,997,549
2,999,578
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.
15
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
16
Creditors: amounts falling due within one year
2024
2023
as restated
£
£
Trade creditors
309,274
642,068
Amounts owed to group undertakings
21,000
Corporation tax
257,468
293,642
Other taxation and social security
114,011
511,325
Other creditors
89,847
81,828
Accruals and deferred income
650,262
635,846
1,441,862
2,164,709
Included within other creditors is £60,779 (2023: £64,308) of directors loan account.
J E MORTEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 20 -
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
268,372
239,126
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.
18
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.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
150,100
150,100
150,100
150,100
J E MORTEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 21 -
20
Reserves
Other reserves
This represents the non-distributable reserves of the company.
Profit and loss reserves
This reserve records all current and prior period retained profit and losses.
21
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.
22
Ultimate controlling party
At the 31 January 2024, the ultimate parent undertaking was Tunstead Mill Limited due to their 100% interest in the equity share capital of the company. Consolidated financial statements are available from Companies House, Crown Way, Cardiff, CF14 3UZ.
The ultimate controlling party is J E Morten by virtue of his 99.97% interest in the equity of the holding company.
J E MORTEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 22 -
23
Prior period adjustment
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Jan 2023
£
£
£
Creditors due within one year
Taxation
(812,811)
7,844
(804,967)
Other creditors
(1,318,456)
(41,286)
(1,359,742)
Net assets
4,401,120
(33,442)
4,367,678
Capital and reserves
Profit and loss reserves
3,931,601
(33,442)
3,898,159
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 31 January 2023
£
£
£
Cost of sales
(21,090,761)
(41,286)
(21,132,047)
Taxation
(400,308)
7,844
(392,464)
Profit for the financial period
1,533,998
(33,442)
1,500,556
Notes to reconciliation
Prior year adjustment
In preparing the financial statements for the year ended 31 January 2024, a prior period adjustment of £41,286 has been recorded, as a holiday pay accrual had not been recognised. This adjustment has resulted in a decrease of £33,442 in the previously reported 2023 reserves.
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