REGISTERED NUMBER: 00936960 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH JUNE 2024 |
FOR |
MIDTHERM FLUE SYSTEMS LIMITED |
REGISTERED NUMBER: 00936960 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH JUNE 2024 |
FOR |
MIDTHERM FLUE SYSTEMS LIMITED |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH JUNE 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Comprehensive Income | 10 |
Consolidated Statement of Financial Position | 11 |
Company Statement of Financial Position | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Statement of Cash Flows | 16 |
Notes to the Consolidated Financial Statements | 17 |
MIDTHERM FLUE SYSTEMS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30TH JUNE 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors and Accountants |
Mountfield House |
661 High Street |
Kingswinford |
West Midlands |
DY6 8AL |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30TH JUNE 2024 |
The directors present their strategic report of the company and the group for the year ended 30th June 2024. |
PRINCIPAL ACTIVITIES AND REVIEW OF BUSINESS |
The principal activity of the company in the year under review was that of the manufacture of stainless steel flue systems and associated products. |
The directors aim to present a balanced and comprehensive review of the development and performance of the business during the year and its position at the year end. |
The key performance indicators are as follows : |
2024 | 2023 |
£ | £ |
Turnover | 10,346,105 | 12,744,669 |
Gross profit | 2,850,240 | 4,204,807 |
Operating (loss)/profit | (1,326,006) | 52,911 |
Gross profit % | 27.55% | 32.99% |
Average number of employees | 147 | 154 |
In September 2022 the group rebranded and relaunched itself and its related non group companies as the Midtherm Group, specialists in a comprehensive array of design and manufacturing solutions including laser cutting, bending, fabrications, flue and chimney systems, coatings, assembly and design/production of innovative air purifying systems. |
Midtherm Flue Systems Limited continues to specialise in the fabrication of flue and chimney systems. During the year to 30th June 2023 the group's turnover increased significantly by 40.8% mainly as a result of increased domestic flue sales. Customer demand for log burners increased due to high domestic fuel prices caused by the Russian invasion of Ukraine in 2022, which led to oil and gas prices rising significantly due to concerns about disruption to supply. This upturn in turnover however was unsustainable and group's turnover has fallen by 18.8% back towards more "normal" expected levels. |
Commercial flue sales remained consistent with last year, whilst enamelling and fabrication sales grew as new customers and markets were developed. |
It should be noted however, that the market pressures on selling prices and continental products being sold at very low prices continue. This together with costs incurred in scaling production, rapid changes in demand, inflated raw material prices, overhead and labour costs have reduced the gross profit margin from 32.99% to 27.55%. |
In monetary terms this has resulted in a decrease in the turnover of £2,398,564 to £10,346,105 and the gross profit decreasing by £1,354,567 to £2,850,240. The operating profit has fallen by £1,378,917 to become an operating loss of £1,326,006. This was due to higher salary and overhead costs incurred as the group implemented new ERP systems and sought ways to diversify its products and services in a bid to increase turnover and profitability. |
The group has continued its program of improving systems and rationalising production, warehousing and distribution facilities to further reduce costs. |
The group is continuing its program of improvements and additional resources have been allocated to pursue new products and customers. The group has continued its investment in the enamelling furnace and other large items of plant. This has resulted in new product ranges and services being introduced during the year with some success being gained in the marketplace. |
The research and development department continues to improve the range of products and services offered, and to simplify the production process. The marketing department continues to improve the marketing of existing and new products. The percentage of orders received through online ordering and the "Midtherm Trade App" continues to increase steadily leading to improvements in efficiency. |
Continued investment in more efficient production methods, staff, machinery and new products aimed at the changing marketplace are also expected to substantially assist in the improvement of the group's performance for the year to June 2025 and beyond. |
The directors are confident that the ongoing investments and cost cutting review will continue to make the group more competitive, increasing their future market share and profitability. |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30TH JUNE 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The majority of the group's sales are in the commercial and domestic construction industry. The profitability of the group would be affected by a downturn in the construction industry. The group would also be affected by any changes to legislation in respect of the burning of fuels both commercially and domestically.The directors believe that the group has sufficient financial strength to survive any downturns or changes and is continuing to diversify its product range to minimise this risk. |
The downturn in turnover and operating loss has exposed the group to cashflow issues. However, the bank is currently satisfied with the group's financial forecasts and post year end has offered the group a confidential invoice discounting facility to assist with the cashflow issues. The directors do not think there is any risk of the bank's facilities being withdrawn. |
The group is exposed to interest rate risk on all borrowings with the bank. The directors are aware of the risk associated with this borrowing but feel that it has been and will continue to be easily manageable. |
Credit risk is managed by strict credit control and through credit checks on new customers. |
Most sales are to UK customers and most suppliers are UK based. Risks relating to exchange rate movements and Brexit are not considered significant. |
ENVIRONMENT |
The group continually seeks to minimise the environmental impact of its operations by complying with all relevant legislation and being aware of its environmental responsibilities. |
HEALTH AND SAFETY |
The group is committed to providing a safe environment for its employees and customers. |
EMPLOYEES |
The directors recognise the importance of investing in the training and development of employees. Retention of key staff is also an important factor in the ongoing success of the group. |
ON BEHALF OF THE BOARD: |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30TH JUNE 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30th June 2024. |
DIVIDENDS |
No dividends will be distributed for the year ended 30th June 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st July 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
DISCLOSURE IN THE STRATEGIC REPORT |
The group has chosen in accordance with Section 414C (11) to set out in the group's strategic report information required to be disclosed by Schedule 7 of the Companies Act 2006. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30TH JUNE 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MIDTHERM FLUE SYSTEMS LIMITED |
Opinion |
We have audited the financial statements of Midtherm Flue Systems Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30th June 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, 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, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30th June 2024 and of the group's 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 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MIDTHERM FLUE SYSTEMS LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and 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 Statement of Directors' Responsibilities set out on page four, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MIDTHERM FLUE SYSTEMS LIMITED |
Auditors' 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 a Report of the Auditors 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: |
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. |
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: |
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. |
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the group to cease to continue as a going concern. |
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation (ie. gives a true and fair view). |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MIDTHERM FLUE SYSTEMS LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditors and Accountants |
Mountfield House |
661 High Street |
Kingswinford |
West Midlands |
DY6 8AL |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 30TH JUNE 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 | 10,346,105 | 12,744,669 |
Cost of sales | 7,495,866 | 8,539,862 |
GROSS PROFIT | 2,850,239 | 4,204,807 |
Distribution costs | 708,173 | 1,012,224 |
Administrative expenses | 3,391,075 | 3,182,177 |
4,099,248 | 4,194,401 |
(1,249,009 | ) | 10,406 |
Other operating income | 39,927 | 42,505 |
OPERATING (LOSS)/PROFIT | 5 | (1,209,082 | ) | 52,911 |
Interest receivable and similar income | 956 | - |
(1,208,126 | ) | 52,911 |
Interest payable and similar expenses | 6 | 36,358 | 22,727 |
(LOSS)/PROFIT BEFORE TAXATION | (1,244,484 | ) | 30,184 |
Tax on (loss)/profit | 7 | (320,102 | ) | 15,765 |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
OTHER COMPREHENSIVE INCOME/(LOSS) |
- | (7,916 | ) |
Revaluation of freehold property | 134,807 | - |
Income tax relating to components of other comprehensive income/(loss) |
- |
- |
OTHER COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR, NET OF INCOME TAX |
134,807 |
(7,916 |
) |
TOTAL COMPREHENSIVE (LOSS)/INCOME FOR THE YEAR |
(789,575 |
) |
6,503 |
(Loss)/profit attributable to: |
Owners of the parent | (924,382 | ) | 14,419 |
Total comprehensive (loss)/income attributable to: |
Owners of the parent | (789,575 | ) | 6,503 |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
30TH JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 141,293 | 27,226 |
Tangible assets | 10 | 3,510,338 | 3,556,191 |
Investments | 11 | - | - |
3,651,631 | 3,583,417 |
CURRENT ASSETS |
Stocks | 12 | 1,925,288 | 2,877,975 |
Debtors | 13 | 1,034,405 | 1,648,634 |
Cash at bank and in hand | 127,525 | 194,320 |
3,087,218 | 4,720,929 |
CREDITORS |
Amounts falling due within one year | 14 | (1,702,876 | ) | (2,075,057 | ) |
NET CURRENT ASSETS | 1,384,342 | 2,645,872 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
5,035,973 |
6,229,289 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(160,617 |
) |
(289,192 |
) |
PROVISIONS FOR LIABILITIES | 19 | (256,184 | ) | (531,350 | ) |
NET ASSETS | 4,619,172 | 5,408,747 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 1,177 | 1,177 |
Revaluation reserve | 21 | 229,263 | 96,705 |
Retained earnings | 21 | 4,388,732 | 5,310,865 |
SHAREHOLDERS' FUNDS | 4,619,172 | 5,408,747 |
The financial statements were approved by the Board of Directors and authorised for issue on 27th March 2025 and were signed on its behalf by: |
R Andrews - Director |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
COMPANY STATEMENT OF FINANCIAL POSITION |
30TH JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Revaluation reserve | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's (loss)/profit for the financial year | (738,984 | ) | 842 |
The financial statements were approved by the Board of Directors and authorised for issue on |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30TH JUNE 2024 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1st July 2022 | 1,177 | 5,294,197 | 106,870 | 5,402,244 |
Changes in equity |
Transfer | - | 2,249 | (2,249 | ) | - |
Total comprehensive income | - | 14,419 | (7,916 | ) | 6,503 |
Balance at 30th June 2023 | 1,177 | 5,310,865 | 96,705 | 5,408,747 |
Changes in equity |
Transfer | - | 2,249 | (2,249 | ) | - |
Total comprehensive loss | - | (924,382 | ) | 134,807 | (789,575 | ) |
Balance at 30th June 2024 | 1,177 | 4,388,732 | 229,263 | 4,619,172 |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30TH JUNE 2024 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1st July 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 30th June 2023 |
Changes in equity |
Total comprehensive loss | - | ( |
) | ( |
) |
Balance at 30th June 2024 |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30TH JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 131,744 | 61,499 |
Interest paid | (15,968 | ) | (3,203 | ) |
Interest element of hire purchase payments paid |
(19,078 |
) |
(21,319 |
) |
Tax paid | 21,692 | (49,885 | ) |
Net cash from operating activities | 118,390 | (12,908 | ) |
Cash flows from investing activities |
Purchase of intangible fixed assets | (152,123 | ) | (26,673 | ) |
Purchase of tangible fixed assets | (157,607 | ) | (426,404 | ) |
Sale of tangible fixed assets | 8,250 | 111,213 |
Interest received | 956 | - |
Net cash from investing activities | (300,524 | ) | (341,864 | ) |
Cash flows from financing activities |
New loans in year | 250,000 | - |
Loan repayments in year | (108,599 | ) | (98,723 | ) |
Capital repayments in year | (176,062 | ) | (175,786 | ) |
Amount introduced by directors | 150,000 | - |
Net cash from financing activities | 115,339 | (274,509 | ) |
Decrease in cash and cash equivalents | (66,795 | ) | (629,281 | ) |
Cash and cash equivalents at beginning of year |
2 |
194,320 |
823,601 |
Cash and cash equivalents at end of year | 2 | 127,525 | 194,320 |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30TH JUNE 2024 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
(Loss)/profit before taxation | (1,244,484 | ) | 30,184 |
Depreciation charges | 530,906 | 518,838 |
(Profit)/loss on disposal of fixed assets | (974 | ) | 31,810 |
Capital grants released | (3,520 | ) | (2,755 | ) |
Reversal of freehold property impairment | (116,924 | ) | - |
Finance costs | 36,358 | 22,727 |
Finance income | (956 | ) | - |
(799,594 | ) | 600,804 |
Decrease/(increase) in stocks | 952,687 | (895,784 | ) |
Decrease/(increase) in trade and other debtors | 592,537 | (7,643 | ) |
(Decrease)/increase in trade and other creditors | (613,886 | ) | 364,122 |
Cash generated from operations | 131,744 | 61,499 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 30th June 2024 |
30.6.24 | 1.7.23 |
£ | £ |
Cash and cash equivalents | 127,525 | 194,320 |
Year ended 30th June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 194,320 | 823,601 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.7.23 | Cash flow | At 30.6.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 194,320 | (66,795 | ) | 127,525 |
194,320 | (66,795 | ) | 127,525 |
Debt |
Finance leases | (420,275 | ) | 176,062 | (244,213 | ) |
Debts falling due within 1 year | (10,000 | ) | (140,044 | ) | (150,044 | ) |
Debts falling due after 1 year | (19,167 | ) | (1,357 | ) | (20,524 | ) |
(449,442 | ) | 34,661 | (414,781 | ) |
Total | (255,122 | ) | (32,134 | ) | (287,256 | ) |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH JUNE 2024 |
1. | STATUTORY INFORMATION |
Midtherm Flue Systems Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The group meets its day-to-day working capital requirements through it's bank facilities.The group's forecasts and projections, taking account of reasonable possible changes in trading performance, show that the group should be able to operate within the level of its current facilities, together with an invoice discounting facility offered by the bank post year end. After making enquiries, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The group therefore continues to adopt the going concern basis in preparing its financial statements. |
Basis of consolidation |
The consolidated financial statements include the financial statements of the company and its subsidiary undertakings made up to 30th June 2024. The acquisition method of accounting has been adopted. Under this method, the results of subsidiary undertakings acquired or disposed of during the year are included in the consolidated profit and loss account from the date of acquisition or up to the date of disposal. |
Under section 408 of the Companies Act 2006 the company is exempt from the requirement to present its own profit and loss account. |
In the company's separate financial statements, investments in subsidiary undertakings are stated at cost, less any provision for impairment. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Significant judgements and estimates |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events, that are believed to be reasonable under the circumstances. |
The directors make estimates and assumptions concerning the future based on historical experience and other factors that are considered to be relevant. The resulting accounting estimates will, by definition, seldom equal the related actual results. In the opinion of the directors there are no estimates or assumptions that have a significant risk of causing a material adjustment to the carrying value of assets and liabilities within the next financial year. |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Revenue recognition |
Revenue from the sale of goods is recognised when the company has transferred the significant risks and rewards of ownership to the buyer and it is probable that the company will receive the previously agreed upon payment. Revenue is shown net of returns, discounts and rebates allowed by the company and value added taxes. |
Revenue is recognised at the point that the goods are delivered to or collected by the customer. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Short leasehold | - |
Long leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
No depreciation is provided on freehold land. |
Impairment of assets |
At each reporting date assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is immediately recognised in the Statement of Comprehensive Income. |
If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal in any impairment loss is recognised immediately in the Statement of Comprehensive Income. |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carry amount is reduced to its selling price less costs to sell. The impairment loss is immediately recognised in the Statement of Comprehensive Income. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest rate method. |
Holiday pay accrual |
A liability is recognised to the extent any unused holiday pay entitlement has accrued at the balance sheet date and has been carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement. |
Provisions for liabilities |
Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
When payments are eventually made, they are charged to the provision carried in the Balance Sheet. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Current and deferred taxation |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Operating lease rentals are charged to profit and loss account on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Goodwill |
Purchased goodwill (representing the excess of fair value of the consideration given over the fair value of the separable net assets acquired) arising on consolidation is capitalised. It is amortised on a straight line basis over an estimated useful life of 5 or 10 years. |
Government grants and similar arrangements |
Grants and similar arrangements are accountable under the accruals model as permitted by FRS102. Grants received towards the cost of new plant and machinery are treated as deferred income and are credited to the Statement of Comprehensive Income in line with the depreciation policy of the assets. |
Grants of a revenue nature are recognised within other operating income in the Statement of Comprehensive Income, in the same period as the related expenditure. |
Covid Bounce Back Loan Scheme |
Loans received under the Bounce Back Loan Scheme (BBLS) are recorded at the transaction price ie the cash received, unless there is a material difference between the actual rate of interest on the loan and a market rate for a similar debt. Under the scheme, the loan carries a government-backed guarantee and the government makes a business interruption payment (BIP), ie the government pays any fees and interest payments for the first twelve months. Accordingly the BIP is grossed up and shown as government grants received and the fees and interest payments included in the Statement of Comprehensive Income in the period they relate to. |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2024 |
3. | TURNOVER |
The turnover and loss (2023 - profit) before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 10,294,465 | 12,668,513 |
Europe | 51,640 | 76,156 |
10,346,105 | 12,744,669 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 3,944,152 | 3,763,701 |
Social security costs | 347,813 | 343,447 |
Other pension costs | 77,014 | 73,951 |
4,368,979 | 4,181,099 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Production | 97 | 102 |
Sales | 14 | 17 |
Administration | 36 | 35 |
Total redundancy costs for 2024 was £52,374 (2023 £nil). |
Termination payments are comprised of voluntary and compulsory redundancy. Payments are recognised in staff costs once they are quantifiable and upon communication of intention to pay. |
There was no unpaid redundancy at 30th June 2024 (2023 £nil). |
2024 | 2023 |
£ | £ |
Directors' remuneration | 244,996 | 262,089 |
Directors' pension contributions to money purchase schemes | 3,418 | 3,845 |
Compensation to director for loss of office | 30,000 | - |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 3 | 3 |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 79,361 | 79,874 |
Pension contributions to money purchase schemes | 1,321 | 1,321 |
5. | OPERATING (LOSS)/PROFIT |
The operating loss (2023 - operating profit) is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets | 406,302 | 406,614 |
Depreciation - assets on hire purchase contracts | 86,548 | 101,050 |
(Profit)/loss on disposal of fixed assets | (974 | ) | 31,810 |
Goodwill amortisation | 2,000 | 2,000 |
Development costs amortisation | 36,056 | 9,172 |
Auditors' remuneration | 23,331 | 19,716 |
Taxation compliance services | 3,000 | 3,000 |
Foreign exchange differences | 454 | 22,040 |
Research and development expenditure | - | 54,864 |
Amounts paid under operating leases - other | 175,606 | 166,621 |
Defined pension contributions | 77,014 | 73,951 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank interest | 15,967 | 1,408 |
Directors loan interest | 1,313 | - |
Hire purchase | 19,078 | 21,319 |
36,358 | 22,727 |
7. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | - | (21,692 | ) |
Deferred tax | (320,102 | ) | 37,457 |
Tax on (loss)/profit | (320,102 | ) | 15,765 |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2024 |
7. | TAXATION - continued |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
(Loss)/profit before tax | (1,244,484 | ) | 30,184 |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 25 %) |
(311,121 |
) |
7,546 |
Effects of: |
Expenses not deductible for tax purposes | 3,334 | 2,980 |
Capital allowances in excess of depreciation | - | (1,454 | ) |
Depreciation in excess of capital allowances | 17,666 | - |
Diminution of property reversal | (29,231 | ) | - |
Capital allowances less than depreciation | (750 | ) | (750 | ) |
tax purposes |
credit |
Rate change | - | 7,443 |
Total tax (credit)/charge | (320,102 | ) | 15,765 |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of freehold property | 134,807 | - | 134,807 |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Increase in deferred tax on revaluation | (7,916 | ) | - | (7,916 | ) |
The group has corporation tax losses of £1,296,479 available to carry forward for future tax relief. |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2024 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Development |
Goodwill | costs | Totals |
£ | £ | £ |
COST |
At 1st July 2023 | 246,261 | 36,973 | 283,234 |
Additions | - | 152,123 | 152,123 |
At 30th June 2024 | 246,261 | 189,096 | 435,357 |
AMORTISATION |
At 1st July 2023 | 244,261 | 11,747 | 256,008 |
Amortisation for year | 2,000 | 36,056 | 38,056 |
At 30th June 2024 | 246,261 | 47,803 | 294,064 |
NET BOOK VALUE |
At 30th June 2024 | - | 141,293 | 141,293 |
At 30th June 2023 | 2,000 | 25,226 | 27,226 |
Company |
Development |
Goodwill | costs | Totals |
£ | £ | £ |
COST |
At 1st July 2023 |
Additions |
At 30th June 2024 |
AMORTISATION |
At 1st July 2023 |
Amortisation for year |
At 30th June 2024 |
NET BOOK VALUE |
At 30th June 2024 |
At 30th June 2023 |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2024 |
10. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Short | Long |
property | leasehold | leasehold |
£ | £ | £ |
COST OR VALUATION |
At 1st July 2023 | 380,101 | 1,571,307 | 270,000 |
Additions | - | 7,077 | - |
Disposals | - | - | - |
Revaluations | 122,975 | - | - |
Reversal of impairments | 116,924 | - | - |
At 30th June 2024 | 620,000 | 1,578,384 | 270,000 |
DEPRECIATION |
At 1st July 2023 | 49,269 | 1,315,810 | 28,125 |
Charge for year | 7,499 | 129,409 | 5,625 |
Eliminated on disposal | - | - | - |
Revaluation adjustments | (56,768 | ) | - | - |
At 30th June 2024 | - | 1,445,219 | 33,750 |
NET BOOK VALUE |
At 30th June 2024 | 620,000 | 133,165 | 236,250 |
At 30th June 2023 | 330,832 | 255,497 | 241,875 |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1st July 2023 | 4,474,417 | 476,505 | 830,762 | 8,003,092 |
Additions | 144,411 | 6,119 | - | 157,607 |
Disposals | - | - | (22,995 | ) | (22,995 | ) |
Revaluations | - | - | - | 122,975 |
Reversal of impairments | - | - | - | 116,924 |
At 30th June 2024 | 4,618,828 | 482,624 | 807,767 | 8,377,603 |
DEPRECIATION |
At 1st July 2023 | 2,413,479 | 303,513 | 336,706 | 4,446,902 |
Charge for year | 221,543 | 53,266 | 75,508 | 492,850 |
Eliminated on disposal | - | - | (15,719 | ) | (15,719 | ) |
Revaluation adjustments | - | - | - | (56,768 | ) |
At 30th June 2024 | 2,635,022 | 356,779 | 396,495 | 4,867,265 |
NET BOOK VALUE |
At 30th June 2024 | 1,983,806 | 125,845 | 411,272 | 3,510,338 |
At 30th June 2023 | 2,060,938 | 172,992 | 494,056 | 3,556,190 |
Included in cost or valuation of land and buildings is freehold land of £150,000 (2023 - £160,000) which is not depreciated. |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Cost or valuation at 30th June 2024 is represented by: |
Freehold | Short | Long |
property | leasehold | leasehold |
£ | £ | £ |
Valuation in 2016 | (154,857 | ) | - | - |
Valuation in 2018 | - | - | 28,098 |
Valuation in 2024 | 239,899 | - | - |
Cost | 534,958 | 1,578,384 | 241,902 |
620,000 | 1,578,384 | 270,000 |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
Valuation in 2016 | - | - | - | (154,857 | ) |
Valuation in 2018 | - | - | - | 28,098 |
Valuation in 2024 | - | - | - | 239,899 |
Cost | 4,618,828 | 482,624 | 807,767 | 8,264,463 |
4,618,828 | 482,624 | 807,767 | 8,377,603 |
Freehold land and buildings were valued on an open market basis on 22nd March 2023 by Chivers Commercial . |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1st July 2023 | 467,407 | 506,566 | 973,973 |
Transfer to ownership | (409,407 | ) | (68,324 | ) | (477,731 | ) |
At 30th June 2024 | 58,000 | 438,242 | 496,242 |
DEPRECIATION |
At 1st July 2023 | 174,930 | 91,197 | 266,127 |
Charge for year | 30,710 | 55,838 | 86,548 |
Transfer to ownership | (194,620 | ) | (38,889 | ) | (233,509 | ) |
At 30th June 2024 | 11,020 | 108,146 | 119,166 |
NET BOOK VALUE |
At 30th June 2024 | 46,980 | 330,096 | 377,076 |
At 30th June 2023 | 292,477 | 415,369 | 707,846 |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Freehold | Short | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST OR VALUATION |
At 1st July 2023 |
Additions |
Disposals |
Revaluations |
Reversal of impairments | 116,924 | - | - |
At 30th June 2024 |
DEPRECIATION |
At 1st July 2023 |
Charge for year |
Eliminated on disposal |
Revaluation adjustments | ( |
) |
At 30th June 2024 |
NET BOOK VALUE |
At 30th June 2024 |
At 30th June 2023 |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1st July 2023 |
Additions |
Disposals | ( |
) | ( |
) |
Revaluations |
Reversal of impairments | - | - | 116,924 |
At 30th June 2024 |
DEPRECIATION |
At 1st July 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
Revaluation adjustments | ( |
) |
At 30th June 2024 |
NET BOOK VALUE |
At 30th June 2024 |
At 30th June 2023 |
Included in cost or valuation of land and buildings is freehold land of £ 150,000 (2023 - £ 160,000 ) which is not depreciated. |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Cost or valuation at 30th June 2024 is represented by: |
Freehold | Short | Plant and |
property | leasehold | machinery |
£ | £ | £ |
Valuation in 2016 | (154,857 | ) | - | - |
Valuation in 2024 | 239,899 | - | - |
Cost | 534,958 | 1,578,385 | 4,575,579 |
620,000 | 1,578,385 | 4,575,579 |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
Valuation in 2016 | - | - | (154,857 | ) |
Valuation in 2024 | - | - | 239,899 |
Cost | 482,624 | 774,950 | 7,946,496 |
482,624 | 774,950 | 8,031,538 |
If the freehold land and building had not been revalued they would have been included at the following historical cost: |
2024 | 2023 |
£ | £ |
Cost | 534,957 | 534,957 |
Aggregate depreciation | 94,702 | 87,202 |
Value of land in freehold land and buildings | 160,000 | 160,000 |
Freehold land and buildings were valued on an open market basis basis on 22nd March 2023 by Chivers Commercial . |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1st July 2023 |
Transfer to ownership | (409,407 | ) | (68,324 | ) | (477,731 | ) |
At 30th June 2024 |
DEPRECIATION |
At 1st July 2023 |
Charge for year |
Transfer to ownership | (194,620 | ) | (38,889 | ) | (233,509 | ) |
At 30th June 2024 |
NET BOOK VALUE |
At 30th June 2024 |
At 30th June 2023 |
11. | FIXED ASSET INVESTMENTS |
Company |
Unlisted |
investments |
£ |
COST |
At 1st July 2023 |
and 30th June 2024 |
PROVISIONS |
At 1st July 2023 |
and 30th June 2024 | 702,669 |
NET BOOK VALUE |
At 30th June 2024 |
At 30th June 2023 |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2024 |
11. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Midtherm House, Midtherm Business Park, New Road, Netherton Dudley DY2 8SY |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Registered office: Midtherm House, Midtherm Business Park, New Road, Netherton Dudley DY2 8SY |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Flues and Flashings Limited ceased to trade on 30 June 2018. This subsidiary has claimed exemption from audit of its individual accounts under section 479A of the Companies Act |
Registered office: Midtherm House, Midtherm Business Park, New Road, Netherton Dudley DY2 8SY |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Midtherm Stainless Limited ceased to trade on 30 June 2021. This subsidiary has claimed exemption from audit of its individual accounts under section 479A of the Companies Act |
Registered office: Midtherm House, Midtherm Business Park, New Road, Netherton Dudley DY2 8SY |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2024 |
11. | FIXED ASSET INVESTMENTS - continued |
Registered office: Midtherm House, Midtherm Business Park, New Road, Netherton Dudley DY2 8SY |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
12. | STOCKS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Raw materials and consumables | 607,804 | 911,303 |
Work-in-progress | 66,711 | 285,109 |
Finished goods | 1,250,773 | 1,681,563 |
1,925,288 | 2,877,975 |
13. | DEBTORS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 893,976 | 1,386,760 |
Other debtors | 14,518 | 8,889 |
Tax | - | 21,692 |
Prepayments | 125,449 | 227,144 |
1,033,943 | 1,644,485 |
Amounts falling due after more than one | year: |
Prepayments and accrued income | 462 | 4,149 |
Aggregate amounts | 1,034,405 | 1,648,634 |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2024 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 150,044 | 10,000 |
Hire purchase contracts (see note 17) | 132,630 | 181,928 |
Trade creditors | 828,387 | 1,430,750 |
Amounts owed to group undertakings | - | - |
Social security and other taxes | 65,970 | 82,463 |
VAT | 199,264 | 144,700 | 189,829 | 133,942 |
Other creditors | 41,385 | 53,228 |
Directors' current accounts | 150,000 | - | 150,000 | - |
Accrued expenses | 132,028 | 168,468 |
Deferred government grants | 3,168 | 3,520 |
1,702,876 | 2,075,057 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 16) | 20,524 | 19,167 |
Hire purchase contracts (see note 17) | 111,583 | 238,347 |
Deferred government grants | 28,510 | 31,678 |
160,617 | 289,192 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 150,044 | 10,000 |
Amounts falling due between two and five | years: |
Bank loans | 20,524 | 19,167 |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2024 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Gross obligations repayable: |
Within one year | 147,946 | 200,837 |
Between one and five years | 124,761 | 266,183 |
272,707 | 467,020 |
Finance charges repayable: |
Within one year | 15,316 | 18,909 |
Between one and five years | 13,178 | 27,836 |
28,494 | 46,745 |
Net obligations repayable: |
Within one year | 132,630 | 181,928 |
Between one and five years | 111,583 | 238,347 |
244,213 | 420,275 |
Company |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2024 |
17. | LEASING AGREEMENTS - continued |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 54,061 | 164,393 |
Between one and five years | 67,885 | 61,581 |
In more than five years | 23,543 | 16,909 |
145,489 | 242,883 |
Company |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans | 170,568 | 29,167 |
Hire purchase contracts | 244,213 | 420,275 | 244,213 | 420,275 |
414,781 | 449,442 |
Bank borrowings of £151,401 (2023 £nil) were secured by legal charges on book debts, the freehold property at 6 Shaw Road, Dudley and the leasehold property at New Road, Dudley. The properties have carrying values of £323,333 and £133,167 respectively.The loan carries an interest rate of 9.21% pa and is repayable over 2 years. |
The bank loan received under the Bounce Back Loan Scheme carries a government-backed guarantee. The loan is repayable over 6 years, including a one year initial capital repayment holiday, at an interest rate of 2.5% pa. Any business loan payments made by the government in respect of fees and bank interest are grossed up and treated as government grant income. The balance outstanding at 30 June 2024 £19,167 (2023 £29,167). |
Loans under hire purchase contracts and finance leases are secured on the assets that they relate to. |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2024 |
19. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 503,885 | 550,454 |
Tax losses carried forward | (324,120 | ) | (51,338 | ) | ( |
) | ( |
) |
Other timing differences | 76,419 | 32,234 | 44,936 | - |
256,184 | 531,350 | 224,261 | 497,808 |
Group |
Deferred |
tax |
£ |
Balance at 1st July 2023 | 531,350 |
Provided during year | 44,936 |
Credit to Statement of Comprehensive Income during year | (320,102 | ) |
Balance at 30th June 2024 | 256,184 |
Company |
Deferred |
tax |
£ |
Balance at 1st July 2023 |
Provided during year |
Credit to Statement of Comprehensive Income during year | ( |
) |
Balance at 30th June 2024 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary A | £1 | 1,000 | 1,000 |
Ordinary B | £1 | 177 | 177 |
1,177 | 1,177 |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2024 |
20. | CALLED UP SHARE CAPITAL - continued |
The shares carry the following rights: |
Ordinary shares |
- a right to one vote per share, to receive dividends and to a share of capital on winding up. |
"A" Ordinary shares |
- to attend, vote and speak at any general meeting of the company and to receive notice thereof; |
- to receive dividends and other distributions resolved to be distributed out of the profits of the company available for distribution to the "A" ordinary shares , in proportion to the amount paid up thereon. |
The "A" shares are not redeemable. |
"B" Ordinary shares |
- no right to attend, vote or speak at any general meeting, nor to receive notice unless the general meeting is to consider variation of any of the rights attached to the "B" share;. |
- no right to participate in any dividend or other distribution of the company. |
The "B" shares are not redeemable. |
On a return of assets on a winding-up, capital reduction or other return of capital, the assets of the company available for distribution amongst the members will be applied as follows: |
(a) Firstly in paying to each member, an amount equal to the par value of shares registered in their name; |
(b) Secondly, by paying the next £3.3m to the holders of "A" Ordinary shares, in proportion to their share holdings; and |
(c) Thirdly, by paying the remaining assets to the holders of "A" Ordinary shares and "B" Ordinary shares, in proportion to their share holdings. |
21. | RESERVES |
Group |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1st July 2023 | 5,310,865 | 96,705 | 5,407,570 |
Deficit for the year | (924,382 | ) | (924,382 | ) |
Revaluation reserve | - | 134,807 | 134,807 |
Transfer | 2,249 | (2,249 | ) | - |
At 30th June 2024 | 4,388,732 | 229,263 | 4,617,995 |
Company |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1st July 2023 | 5,542,474 |
Deficit for the year | ( |
) | ( |
) |
Revaluation reserve | - | 134,807 | 134,807 |
At 30th June 2024 | 4,938,297 |
MIDTHERM FLUE SYSTEMS LIMITED (REGISTERED NUMBER: 00936960) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH JUNE 2024 |
21. | RESERVES - continued |
The retained earnings reserve represents cumulative profits and losses net of dividends and any other adjustments. |
The revaluation reserve represents the increase in the value of long leasehold property and is being released to retained earnings over the length remaining on the lease. |
22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
At 30th June 2024 Mr RWJ Andrews and Mrs MJ Andrews were owed £150,000 by the group (2023 £nil). Interest of £1,312 was accrued on this outstanding balance at a rate equivalent to the Bank of England's base rate. The loan is repayable on demand. |
23. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is R W J Andrews. |