IRIS Accounts Production v24.3.2.46 00936960 Board of Directors 30.6.24 1.7.23 30.6.24 30.6.24 Medium entities These accounts have been prepared in accordance with the provisions applicable to companies subject to the medium-sized companies regime. the manufacture of stainless steel flue systems and associated products. true true true false true true false false false false false false false false true false Ordinary A 1.00000 Ordinary B 1.00000 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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: R W J Andrews
Mrs M J Andrews
R Andrews
Mrs C E Birt
K Woodbine
P A Ferris





SECRETARY: K Woodbine





REGISTERED OFFICE: Midtherm House
Midtherm Business Park
New Road
Netherton, Dudley
West Midlands
DY2 8SY





REGISTERED NUMBER: 00936960 (England and Wales)





AUDITORS: French Ludlam & Co Limited
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:





R Andrews - Director


27th March 2025

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.

R W J Andrews
Mrs M J Andrews
R Andrews
Mrs C E Birt
K Woodbine

Other changes in directors holding office are as follows:

Mrs E K Morley - resigned 30th April 2024

P A Ferris was appointed as a director after 30th June 2024 but prior to the date of this report.

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:





R Andrews - Director


27th March 2025

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.




S B Ludlam (Senior Statutory Auditor)
for and on behalf of French Ludlam & Co Limited
Statutory Auditors and Accountants
Mountfield House
661 High Street
Kingswinford
West Midlands
DY6 8AL

27th March 2025

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

(924,382

)

14,419

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 9 141,293 27,226
Tangible assets 10 3,258,539 3,294,259
Investments 11 813,076 813,076
4,212,908 4,134,561

CURRENT ASSETS
Stocks 12 1,847,241 2,789,802
Debtors 13 976,029 1,540,861
Cash at bank and in hand 109,903 113,203
2,933,173 4,443,866
CREDITORS
Amounts falling due within one year 14 (1,821,729 ) (2,247,776 )
NET CURRENT ASSETS 1,111,444 2,196,090
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,324,352

6,330,651

CREDITORS
Amounts falling due after more than one
year

15

(160,617

)

(289,192

)

PROVISIONS FOR LIABILITIES 19 (224,261 ) (497,808 )
NET ASSETS 4,939,474 5,543,651

CAPITAL AND RESERVES
Called up share capital 20 1,177 1,177
Revaluation reserve 21 134,807 -
Retained earnings 21 4,803,490 5,542,474
SHAREHOLDERS' FUNDS 4,939,474 5,543,651

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 27th March 2025 and were signed on its behalf by:





R Andrews - Director


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 1,177 5,541,632 - 5,542,809

Changes in equity
Total comprehensive income - 842 - 842
Balance at 30th June 2023 1,177 5,542,474 - 5,543,651

Changes in equity
Total comprehensive loss - (738,984 ) 134,807 (604,177 )
Balance at 30th June 2024 1,177 4,803,490 134,807 4,939,474

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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

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.

Development costs are being amortised evenly over their estimated useful life of four years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - 2% on cost
Short leasehold - over the period of the lease
Long leasehold - over the period of the lease
Plant and machinery - 33% on cost, 20% on reducing balance and 10% on reducing balance
Fixtures and fittings - at varying rates on cost
Motor vehicles - 25% on reducing balance and 10% on cost

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
147 154

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 10,000 36,973 46,973
Additions - 152,123 152,123
At 30th June 2024 10,000 189,096 199,096
AMORTISATION
At 1st July 2023 8,000 11,747 19,747
Amortisation for year 2,000 36,056 38,056
At 30th June 2024 10,000 47,803 57,803
NET BOOK VALUE
At 30th June 2024 - 141,293 141,293
At 30th June 2023 2,000 25,226 27,226

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 380,101 1,571,308 4,431,538
Additions - 7,077 144,041
Disposals - - -
Revaluations 122,975 - -
Reversal of impairments 116,924 - -
At 30th June 2024 620,000 1,578,385 4,575,579
DEPRECIATION
At 1st July 2023 49,269 1,315,809 2,378,464
Charge for year 7,499 129,409 219,712
Eliminated on disposal - - -
Revaluation adjustments (56,768 ) - -
At 30th June 2024 - 1,445,218 2,598,176
NET BOOK VALUE
At 30th June 2024 620,000 133,167 1,977,403
At 30th June 2023 330,832 255,499 2,053,074

Fixtures
and Motor
fittings vehicles Totals
£    £    £   
COST OR VALUATION
At 1st July 2023 476,505 797,945 7,657,397
Additions 6,119 - 157,237
Disposals - (22,995 ) (22,995 )
Revaluations - - 122,975
Reversal of impairments - - 116,924
At 30th June 2024 482,624 774,950 8,031,538
DEPRECIATION
At 1st July 2023 303,514 316,082 4,363,138
Charge for year 53,266 72,462 482,348
Eliminated on disposal - (15,719 ) (15,719 )
Revaluation adjustments - - (56,768 )
At 30th June 2024 356,780 372,825 4,772,999
NET BOOK VALUE
At 30th June 2024 125,844 402,125 3,258,539
At 30th June 2023 172,991 481,863 3,294,259

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 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

11. FIXED ASSET INVESTMENTS

Company
Unlisted
investments
£   
COST
At 1st July 2023
and 30th June 2024 1,515,745
PROVISIONS
At 1st July 2023
and 30th June 2024 702,669
NET BOOK VALUE
At 30th June 2024 813,076
At 30th June 2023 813,076

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

Midtherm Heating Limited
Registered office: Midtherm House, Midtherm Business Park, New Road, Netherton Dudley DY2 8SY
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00
2024 2023
£    £   
Aggregate capital and reserves 300 300

Flues & Flashings Limited
Registered office: Midtherm House, Midtherm Business Park, New Road, Netherton Dudley DY2 8SY
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00
2024 2023
£    £   
Aggregate capital and reserves 2 2

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

Midtherm Stainless Limited
Registered office: Midtherm House, Midtherm Business Park, New Road, Netherton Dudley DY2 8SY
Nature of business: Manufacture of catering equipment.
%
Class of shares: holding
Ordinary 100.00
2024 2023
£    £   
Aggregate capital and reserves 100 100

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

Canberra Wells Limited
Registered office: Midtherm House, Midtherm Business Park, New Road, Netherton Dudley DY2 8SY
Nature of business: Wholesale of stainless steel chimneys and flues.
%
Class of shares: holding
Ordinary 100.00
2024 2023
£    £   
Aggregate capital and reserves 494,653 680,050
Profit for the year 64,603 163,577

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

Flue Stox (North West) Limited
Registered office: Midtherm House, Midtherm Business Park, New Road, Netherton Dudley DY2 8SY
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00
2024 2023
£    £   
Aggregate capital and reserves 100 100


12. STOCKS

Group Company
2024 2023 2024 2023
£    £    £    £   
Raw materials and consumables 607,804 911,303 607,804 911,303
Work-in-progress 66,711 285,109 66,711 285,109
Finished goods 1,250,773 1,681,563 1,172,726 1,593,390
1,925,288 2,877,975 1,847,241 2,789,802

13. DEBTORS

Group Company
2024 2023 2024 2023
£    £    £    £   
Amounts falling due within one year:
Trade debtors 893,976 1,386,760 848,334 1,288,786
Other debtors 14,518 8,889 14,518 8,889
Tax - 21,692 - 21,692
Prepayments 125,449 227,144 112,715 217,345
1,033,943 1,644,485 975,567 1,536,712

Amounts falling due after more than one year:
Prepayments and accrued income 462 4,149 462 4,149

Aggregate amounts 1,034,405 1,648,634 976,029 1,540,861

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 10,000 150,044 10,000
Hire purchase contracts (see note 17) 132,630 181,928 132,630 181,928
Trade creditors 828,387 1,430,750 822,192 1,421,176
Amounts owed to group undertakings - - 146,900 205,468
Social security and other taxes 65,970 82,463 63,617 80,209
VAT 199,264 144,700 189,829 133,942
Other creditors 41,385 53,228 39,824 51,781
Directors' current accounts 150,000 - 150,000 -
Accrued expenses 132,028 168,468 123,525 159,752
Deferred government grants 3,168 3,520 3,168 3,520
1,702,876 2,075,057 1,821,729 2,247,776

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 20,524 19,167
Hire purchase contracts (see note 17) 111,583 238,347 111,583 238,347
Deferred government grants 28,510 31,678 28,510 31,678
160,617 289,192 160,617 289,192

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 10,000 150,044 10,000
Amounts falling due between two and five years:
Bank loans 20,524 19,167 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 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

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 45,952 157,622
Between one and five years 42,775 43,661
In more than five years - 3,324
88,727 204,607

18. SECURED DEBTS

The following secured debts are included within creditors:

Group Company
2024 2023 2024 2023
£    £    £    £   
Bank loans 170,568 29,167 170,568 29,167
Hire purchase contracts 244,213 420,275 244,213 420,275
414,781 449,442 414,781 449,442

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 503,885 550,454 503,445 549,146
Tax losses carried forward (324,120 ) (51,338 ) (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 497,808
Provided during year 44,936
Credit to Statement of Comprehensive Income during year (318,483 )
Balance at 30th June 2024 224,261

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
1,000 Ordinary A £1 1,000 1,000
177 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 - 5,542,474
Deficit for the year (738,984 ) (738,984 )
Revaluation reserve - 134,807 134,807
At 30th June 2024 4,803,490 134,807 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.