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Registered number: 04832747
Midland Oil Refinery Limited
Strategic Report, Directors' Report and
Financial Statements
For The Year Ended 31 July 2024
Contents
Page
Strategic Report 1
Directors' Report 2—3
Independent Auditor's Report 4—6
Profit and Loss Account 7
Statement of Comprehensive Income 8
Balance Sheet 9
Statement of Changes in Equity 10
Statement of Cash Flows 11
Notes to the Statement of Cash Flows 12
Notes to the Financial Statements 13—20
Page 1
Strategic Report
The directors present their strategic report for the year ended 31 July 2024.
Principal Activity
The company's principal activity continues to be that of oil manufacturing new oils and lubricants, and oil reconditioning.
Review of the Business
Turnover for the year ended 31 July 2024 was at £12.45 million, showing a decrease on the previous year of 11%, due to a 14% decrease in market price per litre. 2023 was a particularly good year and the turnover for the current year shows an increase of 14.86% over 2022. Volumes are broadly in line with last year, and the decrease is solely due to the volatility of pricing in recycled oils and lubricants. The company reported satisfactory  pre-tax profits for the year ended 31 July 2024 of £315,554 compared with post-tax profits of £599,118 for the previous year.
The company acquired the freehold of its premises and refinery at Shelah Road, Halesowen in May 2024 and now owns the freehold of all property it operates from.
The directors believe that the company continues to be in a strong financial position with Net Assets of £1.39 million.
Principal Risks and Uncertainties
The company operates in a sector that is liable to a range of external variables, both economic and political. To protect against  the effect of those potential challenges, the company, together with fellow subsidiaries has a wide range of expertise in lubricant blending, brands, and re-refining capabilities, making the company a unique and powerful player in the UK market. Those qualities mitigate against any potential risk.
Financial risk management
Through its operations the company is exposed to the following financial risks:
- Volatility in the recycled lubricant market continues to be a financial risk to which the company is exposed. The wide range of products and services offered by the company protects against this risk. 
-  The company has no significant concentration of credit risk, with exposure spread over a large number of counterparts and customers. Company policy requires appropriate credit checks on potential customers before sales are made. Customers are assigned credit limits by a reputable credit insurer, and overdue debts are chased on a regular basis. 
- The company transacts primarily in sterling and therefore has minimal foreign exchange risk. 
- The company actively monitors its liquidity and cash flow position to ensure it has sufficient cash in order to fund its activities.  Bank facilities are reviewed against expected future cash flow movements to ensure that adequate facilities are in place. 
Economic environment risk management
Changes in the economic environment, such as the current high bank interest rates, changes in government policy and legislation and other external factors may all adversely affect the business; however, the Board monitors developments and advisors are retained to assist in minimising the impact of such changes
Future Developments
The company will continue to provide a complete in-house service for end users, distributors, and blenders, encompassing new oil manufacturing, toll blending, bespoke product design, and own-label offerings. 
On behalf of the board
Mr R S Parry
Director
Mr M D Hayes
Director
07/02/2025
Page 1
Page 2
Directors' Report
The directors present their report and the financial statements for the year ended 31 July 2024.
Dividends
The value of dividends paid amounted to £210,000 .
The directors recommended a final dividend of £NIL .
Directors
The directors who held office during the year were as follows:
Mr R S Parry
Mr M D Hayes
Employees
The company recognises the importance of maintaining a high quality, motivated workforce and is committed to employee involvement. Employees are encouraged to discuss with management any matters which they are concerned about or that affect the company. In addition employees are kept informed of the group's performance and objectives through informal meetings. 
The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a disabled person. Where existing employees become disabled, it is the company's policy, where practicable, to provide continuing employment under normal terms and conditions. The company provides training and career development and promotion to disabled employees where appropriate.
Matters covered in the Strategic Report
Disclosures required under s416(4) of the Companies Act 2006 are commented upon in the Strategic Report as the directors consider them to be of strategic importance to the business.
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, the Directors' 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, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', 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 the financial statements the directors are required to:
  • select suitable accounting policies and then apply them consistently;
  • make judgments and accounting estimates that are reasonable and prudent;
  • state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
  • 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 are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement of Disclosure of Information to Auditors
In the case of each director in office at the date the Directors' Report is approved:
  • so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
  • they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
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Independent Auditors
The auditors, Blackthorns, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.
On behalf of the board
Mr T S McGrann
Company Secretary
07/02/2025
Page 3
Page 4
Independent Auditor's Report
Opinion
We have audited the financial statements of Midland Oil Refinery Limited for the year ended 31 July 2024 which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes of Equity, Cash Flow Statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
In our opinion the financial statements:
  • give a true and fair view of the state of the company's affairs as at 31 July 2024 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.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 entity's ability to continue as a going concern for a period of at least 12 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.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The 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. In connection with our audit of the financial statements, 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 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 the audit:
  • the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
  • the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.
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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 Strategic Report or 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 or returns; or
  • certain disclosures of directors' remuneration specified by law are not made; or
  • we have not received all the information and explanations we require for our audit.
Responsibilities of Directors
As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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.
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 a risk that non-compliance with laws and regulations in respect of the storage, transport and disposal of oils and lubricants could impact the company’s ability to trade. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as The Companies Act 2006 and UK tax legislation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risk was regarding completeness of income. There is also a risk regarding the accuracy of opening balances as the prior year was unaudited. With regard to the above, audit procedures performed include:
• review of the reports from the monitoring visits undertaken for any non-compliance with laws and regulations,
• targeted testing of opening balances,
• identifying and testing journal entries both at the year end and during the year,
• challenging assumptions and judgements made by management in their significant accounting estimates and judgements.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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 that 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.
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Victoria Brassington BA FCA (Senior Statutory Auditor)
for and on behalf of Blackthorns Chartered Accountants and Registered Auditor , Statutory Auditor
07/02/2025
Blackthorns Chartered Accountants and Registered Auditor
Admiral House
Waterfront East
Brierley Hill
DY5 1XG
Page 6
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Profit and Loss Account
2024 2023
Notes £ £
TURNOVER 3 12,451,827 13,979,865
Cost of sales (9,468,296 ) (10,880,625 )
GROSS PROFIT 2,983,531 3,099,240
Administrative expenses (2,423,806 ) (2,417,424 )
Other operating income 11,529 28,058
OPERATING PROFIT 5 571,254 709,874
Exceptional items - -
Profit on disposal of fixed assets 18,437 16,500
Interest payable and similar charges 10 (274,137 ) (127,256 )
PROFIT BEFORE TAXATION 315,554 599,118
Tax on Profit 11 (84,243 ) (121,686 )
PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR 231,311 477,432
The notes on pages 12 to 20 form part of these financial statements.
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Statement of Comprehensive Income
2024 2023
£ £
PROFIT FOR THE FINANCIAL YEAR 231,311 477,432
OTHER COMPREHENSIVE INCOME FOR THE YEAR - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 231,311 477,432
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Page 9
Balance Sheet
Registered number: 04832747
2024 2023
Notes £ £ £ £
FIXED ASSETS
Intangible Assets 12 18,187 19,348
Tangible Assets 13 2,356,317 1,188,354
2,374,504 1,207,702
CURRENT ASSETS
Stocks 14 1,449,314 1,571,746
Debtors 15 4,029,413 4,298,712
Cash at bank and in hand 26,295 351
5,505,022 5,870,809
Creditors: Amounts Falling Due Within One Year 16 (4,588,238 ) (4,741,769 )
NET CURRENT ASSETS (LIABILITIES) 916,784 1,129,040
TOTAL ASSETS LESS CURRENT LIABILITIES 3,291,288 2,336,742
Creditors: Amounts Falling Due After More Than One Year 17 (1,753,410 ) (903,743 )
PROVISIONS FOR LIABILITIES
Deferred Taxation 20 (149,910 ) (66,342 )
NET ASSETS 1,387,968 1,366,657
CAPITAL AND RESERVES
Called up share capital 22 50,000 50,000
Profit and Loss Account 1,337,968 1,316,657
SHAREHOLDERS' FUNDS 1,387,968 1,366,657
On behalf of the board
Mr R S Parry
Director
Mr M D Hayes
Director
07/02/2025
The notes on pages 12 to 20 form part of these financial statements.
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Statement of Changes in Equity
Share Capital Profit and Loss Account Total
£ £ £
As at 1 August 2022 50,000 839,225 889,225
Profit for the year and total comprehensive income - 477,432 477,432
As at 31 July 2023 and 1 August 2023 50,000 1,316,657 1,366,657
Profit for the year and total comprehensive income - 231,311 231,311
Dividends paid - (210,000) (210,000)
As at 31 July 2024 50,000 1,337,968 1,387,968
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Statement of Cash Flows
2024 2023
Notes £ £
Cash flows from operating activities
Net cash generated from/(used in) operations 1 730,515 (639,274 )
Interest paid (274,137 ) (127,256 )
Tax paid (55,338 ) -
Net cash generated from/(used in) operating activities 401,040 (766,530 )
Cash flows from investing activities
Purchase of intangible assets (1,067 ) (3,392 )
Purchase of tangible assets (1,244,483 ) (137,204 )
Proceeds from disposal of tangible assets 22,727 16,500
Net cash used in investing activities (1,222,823 ) (124,096 )
Cash flows from financing activities
Equity dividends paid (210,000 ) -
Proceeds from new bank borrowings 1,593,569 -
Repayment of bank borrowings - (9,250 )
Proceeds from new debenture loans - 797,500
Repayment of debenture loans (797,500) -
Proceeds from new other loans 303,963 -
Repayment of finance leases (40,784 ) 33,811
Amount withdrawn by directors (1,521) -
Net cash generated from financing activities 847,727 822,061
Increase/(decrease) in cash and cash equivalents 25,944 (68,565 )
Cash and cash equivalents at beginning of year 2 351 68,916
Cash and cash equivalents at end of year 2 26,295 351
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Notes to the Statement of Cash Flows
1. Reconciliation of profit for the financial year to cash generated from/(used in) operations
2024 2023
£ £
Profit for the financial year 231,311 477,432
Adjustments for:
Tax on profit 84,243 121,686
Interest expense 274,137 127,256
Amortisation of intangible assets 2,228 1,894
Depreciation of tangible assets 72,230 78,572
Profit on disposal of tangible assets (18,437) (16,500)
Movements in working capital:
Decrease/(increase) in stocks 122,432 (257,440 )
Decrease/(increase) in trade and other debtors 270,820 (1,732,684 )
(Decrease)/increase in trade and other creditors (308,449 ) 560,510
Net cash generated from/(used in) operations 730,515 (639,274 )
2. Cash and cash equivalents
Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:
2024 2023
£ £
Cash at bank and in hand 26,295 351
3. Analysis of changes in net debt
As at 1 August 2023 Cash flows As at 31 July 2024
£ £ £
Cash at bank and in hand 351 25,944 26,295
Finance leases (46,327) (263,179) (309,506)
Debts falling due within one year (10,000 ) (123,209) (133,209 )
Debts falling due after more than one year (817,417) (672,860) (1,490,277)
(873,393) (1,033,304) (1,906,697)
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Notes to the Financial Statements
1. General Information
Midland Oil Refinery Limited is a private company, limited by shares, incorporated in England & Wales, registered number 04832747 . The registered office is Shelah Road, Halesowen, West Midlands, B63 3PN.
The presentation currency of the financial statements is the Pound Sterling (£).
The significant accounting policies applied in the presentation of these financial statements are set out below.These policies have been consistently applied to all years presented unless otherwise stated.
2. Accounting Policies
2.1. Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.
2.2. Significant judgements and estimations
Estimates and judgements are continually evaluated and are based on historical experience and other relevant factors, including expectation of future events that are believed to be reasonable under the circumstances.
The preparation of the financial statements requires management to make estimates and assumption regarding the future. The resulting accounting estimates will, by definition, be likely to differ from the realted actual results. No estimates or assumptions are deemed to have significant risk of causing material adjustments to the carrying amount of assets and liabilities within the next financial year.
2.3. Turnover
Turnover comprised the invoiced value of goods and services supplied by the company, net of Value Added Tax
and trade discounts. Revenue is recognised when the goods are delivered.
2.4. Intangible Fixed Assets and Amortisation - Other Intangible
Other intangible assets are software development costs. It is amortised to profit and loss account over its estimated economic life of 15 years.
2.5. Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Freehold Straight line over 50 years
Plant & Machinery Straight line over 3-10 years
Motor Vehicles Straight line over 8 years
Fixtures & Fittings Straight line over 1-10 years
The company is currently not depreciating its freehold property as depreciation had been overprovided in previous years. Depreciation is anticpated to be charged from the next accounting period.
2.6. Leasing and Hire Purchase Contracts
Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.
2.7. Stocks and Work in Progress
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
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2.8. Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.9. Financial Instruments
Non derivate financial instruments comprise trade and other debtors, cash and cash equivalents, trade and other creditors and interest free loans.
Unless otherwise stated, the carrying value of the company's financial assets and liabilities are a reasonable approximation of their fair value.
2.10. Foreign Currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.
2.11. Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
3. Turnover
Turnover is attributable to the principal activities of the company. An analysis of turnover by class of business is as follows:
2024 2023
£ £
Sale of goods 12,451,827 13,979,865
4. Other Operating Income
2024 2023
£ £
Rental income 11,529 23,058
Other operating income - 5,000
11,529 28,058
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5. Operating Profit
The operating profit is stated after charging:
2024 2023
£ £
Bad debts - 4,632
Depreciation of tangible fixed assets 72,230 78,572
Amortisation of intangible fixed assets 2,228 1,894
6. Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
2024 2023
£ £
Audit Services
Audit of the company's financial statements 7,750 -
7. Staff Costs
Staff costs, including directors' remuneration, were as follows:
2024 2023
£ £
Wages and salaries 996,941 1,198,342
Social security costs 99,492 115,620
Other pension costs 66,538 76,433
1,162,971 1,390,395
8. Average Number of Employees
Average number of employees, including directors, during the year was as follows:
2024 2023
Office and administration 11 10
Sales, marketing and distribution 8 7
Manufacturing 9 8
Research and Development 3 3
31 28
9. Directors' remuneration
2024 2023
£ £
Emoluments 96,388 137,464
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10. Interest Payable and Similar Charges
2024 2023
£ £
Bank loans and overdrafts 133,402 31,750
Factoring charges 135,136 77,123
Finance charges payable under finance leases and hire purchase contracts (526) 7,329
Foreign exchange 6,125 11,054
274,137 127,256
11. Tax on Profit
The tax charge on the profit for the year was as follows:
Tax Rate 2024 2023
2024 2023 £ £
Current tax
UK Corporation Tax 19.0% 21.0% 675 55,344
Deferred Tax
Deferred taxation 83,568 66,342
Total tax charge for the period 84,243 121,686
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
2024 2023
£ £
Profit before tax 315,554 599,118
Tax on profit at 19% (UK standard rate) 59,955 125,875
Goodwill/depreciation not allowed for tax 424 398
Expenses not deductible for tax purposes 305 740
Tax losses utilised - (57,696 )
Capital allowances (60,009 ) (13,973 )
Short term timing differences 83,568 66,342
Total tax charge for the period 84,243 121,686
12. Intangible Assets
Other
£
Cost
As at 1 August 2023 21,392
Additions 1,067
As at 31 July 2024 22,459
...CONTINUED
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Amortisation
As at 1 August 2023 2,044
Provided during the period 2,228
As at 31 July 2024 4,272
Net Book Value
As at 31 July 2024 18,187
As at 1 August 2023 19,348
13. Tangible Assets
Land & Property
Freehold Plant & Machinery Motor Vehicles Fixtures & Fittings Total
£ £ £ £ £
Cost
As at 1 August 2023 930,200 1,027,683 199,980 182,931 2,340,794
Additions 856,884 44,163 323,887 19,549 1,244,483
Disposals - - - (4,290 ) (4,290 )
As at 31 July 2024 1,787,084 1,071,846 523,867 198,190 3,580,987
Depreciation
As at 1 August 2023 74,416 853,945 99,305 124,774 1,152,440
Provided during the period - 40,876 18,239 13,115 72,230
As at 31 July 2024 74,416 894,821 117,544 137,889 1,224,670
Net Book Value
As at 31 July 2024 1,712,668 177,025 406,323 60,301 2,356,317
As at 1 August 2023 855,784 173,738 100,675 58,157 1,188,354
Freehold property and all other assets have been pledged as security in respect of the bank borrowings.
Included above are assets held under finance leases or hire purchase contracts with a net book value as follows:
2024 2023
£ £
Motor Vehicles 308,783 73,730
14. Stocks
2024 2023
£ £
Oils, chemicals and additive 1,449,314 1,571,746
Replacement cost is not materially different to the carrying value above.
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15. Debtors
2024 2023
£ £
Due within one year
Trade debtors 2,011,948 2,362,285
Amounts owed by group undertakings 1,832,463 1,824,247
Other debtors 185,002 112,180
4,029,413 4,298,712
16. Creditors: Amounts Falling Due Within One Year
2024 2023
£ £
Net obligations under finance lease and hire purchase contracts 46,373 40,192
Trade creditors 2,339,078 2,024,951
Bank loans and overdrafts 133,209 10,000
Amounts owed to group undertakings - 247,022
Other creditors 1,769,991 1,751,884
Corporation tax 675 55,338
Taxation and social security 24,553 138,732
Accruals and deferred income 274,359 473,650
4,588,238 4,741,769
Financing of trade debtors of £1,682,218 (2023 - £1,695,184)  relates to amounts received for invoice discounting. The specific debtors are included within trade debtors in note 7 of £2,011,948 (2023 - 2,362,285).
17. Creditors: Amounts Falling Due After More Than One Year
2024 2023
£ £
Net obligations under finance lease and hire purchase contracts 263,133 6,135
Bank loans 1,490,277 19,917
Bridging loan - 797,500
Other creditors - 80,191
1,753,410 903,743
Of the creditors falling due after more than one year the following amounts are due after more than five years.
2024 2023
£ £
Bank loans 924,215 -
The following secured debts are included within creditors:
Other creditors represents 'Financing of trade debtors' which is secured on the associated trade debtors.
The net obligations under finance leases is secured over the associated fixed assets.
The bank loan is secured by a legal charge over Varol House, Shelah Road, Halesowen, West Midlands, B63 3PG.
2024 2023
£ £
Net obligations under finance lease and hire purchase contracts 309,506 46,327
Bank loans and overdrafts 1,623,486 797,500
Other Creditors 1,682,218 1,695,184
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18. Loans
An analysis of the maturity of loans is given below:
2024 2023
£ £
Amounts falling due within one year or on demand:
Bank loans 133,209 10,000
2024 2023
£ £
Amounts falling due between one and five years:
Bank loans 566,062 19,917
Debentures - 797,500
566,062 817,417
2024 2023
£ £
Amounts falling due after more than five years:
Bank loans 924,215 -
19. Obligations Under Finance Leases and Hire Purchase
2024 2023
£ £
The future minimum finance lease payments are as follows:
Not later than one year 46,373 40,192
Later than one year and not later than five years 263,133 6,135
309,506 46,327
309,506 46,327
20. Deferred Taxation
The provision for deferred tax is made up as follows:
2024 2023
£ £
Accelerated capital allowances 159,910 76,342
Other timing differences (10,000) (10,000)
149,910 66,342
21. Provisions for Liabilities
Deferred Tax Total
£ £
As at 1 August 2023 66,342 66,342
Deferred taxation 83,568 83,568
Balance at 31 July 2024 149,910 149,910
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22. Share Capital
2024 2023
Allotted, called up and fully paid £ £
50,000 Ordinary Shares of £ 1.000 each 50,000 50,000
23. Pension Commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
During the year the charge to profit or loss in respect of defined contribution schemes was £66,538 (2023: 76,433).
At the balance sheet date contributions of £8,144 (2023: £11,196) were due to the fund and are included in creditors.
24. Directors Advances, Credits and Guarantees
Included within Debtors are the following loans to directors:
As at 1 August 2023 Amounts advanced Amounts repaid Amounts written off As at 31 July 2024
£ £ £ £ £
Mr Richard Parry - 1,520 - - 1,520
The above loan is unsecured, interest free and repayable on demand. No amounts have been waived during the year.
25. Dividends
2024 2023
£ £
On equity shares:
Interim dividend paid 210,000 -
26. Related Party Disclosures
The company has taken advantage of exemption, under 33.1A of the Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", not to disclose transactions with wholly owned subsidiaries within the group.
27. Controlling Parties
The company's immediate parent undertaking is Midland Oil Group Limited .
The ultimate parent undertaking and that of the smallest and largest group for which group accounts are drawn up of which the company is a member is Midland Oil Group Limited (incorporated in England & Wales). Its registered office is Shelah Road, Halesowen, B63 3PN .
Copies of the group accounts may be obtained from the company's registered office.
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