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REGISTERED NUMBER: 03229619 (England and Wales)

















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 July 2024

for

Millgate Limited

Millgate Limited (Registered number: 03229619)






Contents of the Financial Statements
for the Year Ended 31 July 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 15


Millgate Limited

Company Information
for the Year Ended 31 July 2024







DIRECTORS: Ms J A Brown
Mr C D Calvert





SECRETARY: Ms J A Brown





REGISTERED OFFICE: 7 Vantage Drive
Tinsley
Sheffield
S9 1RG





REGISTERED NUMBER: 03229619 (England and Wales)





AUDITORS: Sutton McGrath Hartley
5 Westbrook Court
Sharrowvale Road
Sheffield
South Yorkshire
S11 8YZ

Millgate Limited (Registered number: 03229619)

Strategic Report
for the Year Ended 31 July 2024

The directors present their strategic report for the year ended 31 July 2024.

Millgate Limited are a Value added reseller of IT products and Solutions. Our goal is to provide IT Solutions to clients that actually work and increase efficiencies of organisations in the UK.

REVIEW OF BUSINESS
The war in Ukraine has had many effects, one being the increased costs of energy commodities. This has continued to have an impact on operational expenditure from our clients. To counter this, the company is working with its supply chain and vendors to enhance our offerings to clients to overcome the impact energy prices in the UK by offering services as a subscription.

PRINCIPAL RISKS AND UNCERTAINTIES
Our principal risks continue to be the health of the economy and bad debts.

Due to a broad customer base, we are not reliant on any one customer which reduces exposure to the potential impact of any bad debts. This combined with tight credit control procedures for both new and existing customers, the business does what it can to mitigate bad and doubtful debts.

Our exposure to direct currency risk is low, however we remain indirectly affected as our distribution network is affected by the impacts of currency fluctuations. This has been compounded by the ongoing uncertainty all UK businesses face.

KEY PERFORMANCE INDICATORS
Gross profit margin has remained consistent at 14.04% (2023: 14.8%), representing a concerted effort to drive both performance and increase the mix of products and services we deliver to the customer.

Shareholders funds increased 18.7% of the prior year to £1,619,772.

Our debt collection target is of paramount importance. We have managed to reduce our debt collection days from 53 days in the year to July 2023 to 45 days in the year to July 2024. The corresponding figure to July 2022 was 54 days.

FUTURE PROSPECTS
The performance realised through the year ended July 2024 reflects the continued focus on improving overall organisational health. We acknowledge this is not easy in an established organisation, however by continuing this focus, indicators show improvement in key areas.

The major infrastructure investments in previous periods are continuing to contribute to improving business performance, and it is anticipated continuing this focus will increase revenue nd profitability within 2023/24.

The organisation will continue its investment in upskilling technical capabilities as an organisation, and we expect to see the benefits of these investments in an increased service offering to our clients, along with an increasing client base.

ON BEHALF OF THE BOARD:





Mr C D Calvert - Director


23 April 2025

Millgate Limited (Registered number: 03229619)

Report of the Directors
for the Year Ended 31 July 2024

The directors present their report with the financial statements of the company for the year ended 31 July 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of IT consultancy services and repair and wholesale of computer equipment and software.

DIVIDENDS
The Directors recommend no final dividend be paid.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 August 2023 to the date of this report.

Ms J A Brown
Mr C D Calvert

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 company'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 company's auditors are aware of that information.

Millgate Limited (Registered number: 03229619)

Report of the Directors
for the Year Ended 31 July 2024


AUDITORS
The auditors, Sutton McGrath Hartley, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr C D Calvert - Director


23 April 2025

Report of the Independent Auditors to the Members of
Millgate Limited

Opinion
We have audited the financial statements of Millgate Limited (the 'company') for the year ended 31 July 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 company's affairs as at 31 July 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for qualified 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 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 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 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
Millgate Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the 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, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records 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 three, 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Millgate 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:

Our assessment of the susceptibility to material misstatement, whether by fraud or error, is made in a risk based approach.

In this approach, laws and regulations applicable to the entity, such as the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice including Financial Reporting Standard 102, the relevant tax compliance regulations within the UK, employment law, and Health and Safety law is considered, and the policies and controls the entity has in place to comply with these laws are reviewed, by discussion, reviews of correspondence and registrations monitored by external bodies. The engagement team remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Policies and controls relating to the risk of material misstatement as a result of fraud are also considered. These are
assessed by obtaining an understanding of the company's operations and control environment. The policies and
controls have been reviewed by discussion, review and sample testing of accounting entries, challenging assumptions and judgements, reviewing and evaluating related parties transactions, and wider background searches. Testing of income recognition and cut off, along with testing of inventory valuation is also completed where the documentation has been available.

We have ensured that the engagement team have appropriate levels of competence and experience to effectively monitor these risks and carry out work relevant to our assessment of each risk, including consideration of the industry the company operates in and its size and complexity.

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.

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.




James Salim FCCA (Senior Statutory Auditor)
for and on behalf of Sutton McGrath Hartley
5 Westbrook Court
Sharrowvale Road
Sheffield
South Yorkshire
S11 8YZ

28 April 2025

Millgate Limited (Registered number: 03229619)

Income Statement
for the Year Ended 31 July 2024

2024 2023
Notes £ £ £

TURNOVER 3 35,014,088 35,420,009

Cost of sales 30,099,051 30,155,789
GROSS PROFIT 4,915,037 5,264,220

Distribution costs 2,789 -
Administrative expenses 4,442,079 4,705,418
4,444,868 4,705,418
470,169 558,802

Other operating income 144,986 132,787
OPERATING PROFIT 5 615,155 691,589

Interest receivable and similar income 8,790 -
623,945 691,589

Interest payable and similar expenses 6 101,294 209,298
PROFIT BEFORE TAXATION 522,651 482,291

Tax on profit 7 226,599 299,430
PROFIT FOR THE FINANCIAL YEAR 296,052 182,861

Millgate Limited (Registered number: 03229619)

Other Comprehensive Income
for the Year Ended 31 July 2024

2024 2023
Notes £ £

PROFIT FOR THE YEAR 296,052 182,861


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

296,052

182,861

Millgate Limited (Registered number: 03229619)

Balance Sheet
31 July 2024

2024 2023
Notes £ £ £
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 1,091,341 1,014,949
Investments 11 651,527 651,527
1,742,868 1,666,476

CURRENT ASSETS
Stocks 12 398,619 554,350
Debtors 13 5,421,517 6,697,191
Cash at bank 58,379 319,035
5,878,515 7,570,576
CREDITORS
Amounts falling due within one year 14 5,810,308 7,221,968
NET CURRENT ASSETS 68,207 348,608
TOTAL ASSETS LESS CURRENT LIABILITIES 1,811,075 2,015,084

CREDITORS
Amounts falling due after more than one year 15 - (550,000 )

PROVISIONS FOR LIABILITIES 19 (191,303 ) (148,164 )
NET ASSETS 1,619,772 1,316,920

CAPITAL AND RESERVES
Called up share capital 20 9,898 9,898
Capital redemption reserve 202 202
Retained earnings 1,609,672 1,306,820
SHAREHOLDERS' FUNDS 1,619,772 1,316,920

The financial statements were approved by the Board of Directors and authorised for issue on 23 April 2025 and were signed on its behalf by:





Mr C D Calvert - Director


Millgate Limited (Registered number: 03229619)

Statement of Changes in Equity
for the Year Ended 31 July 2024

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£ £ £ £
Balance at 1 August 2022 9,898 1,130,759 202 1,140,859

Changes in equity
Dividends - (6,800 ) - (6,800 )
Total comprehensive income - 182,861 - 182,861
Balance at 31 July 2023 9,898 1,306,820 202 1,316,920

Changes in equity
Dividends - 6,800 - 6,800
Total comprehensive income - 296,052 - 296,052
Balance at 31 July 2024 9,898 1,609,672 202 1,619,772

Millgate Limited (Registered number: 03229619)

Cash Flow Statement
for the Year Ended 31 July 2024

2024 2023
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 1,808,302 (63,583 )
Interest paid (101,294 ) (209,928 )
Interest element of hire purchase payments
paid

-

630
Tax paid (151,266 ) (130,192 )
Net cash from operating activities 1,555,742 (403,073 )

Cash flows from investing activities
Purchase of tangible fixed assets (120,995 ) -
Sale of tangible fixed assets - 14,339
Interest received 8,790 -
Net cash from investing activities (112,205 ) 14,339

Cash flows from financing activities
Loan repayments in year (850,000 ) (650,000 )
Capital repayments in year (1,823 ) (9,686 )
Amount introduced by directors - 602,596
Amount withdrawn by directors - (433,500 )
Intercompany loan taken out 1,639,406 -
Equity dividends paid 6,800 -
Net cash from financing activities 794,383 (490,590 )

Increase/(decrease) in cash and cash equivalents 2,237,920 (879,324 )
Cash and cash equivalents at beginning of
year

2

(2,227,813

)

(1,348,489

)

Cash and cash equivalents at end of year 2 10,107 (2,227,813 )

Millgate Limited (Registered number: 03229619)

Notes to the Cash Flow Statement
for the Year Ended 31 July 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£ £
Profit before taxation 522,651 482,291
Depreciation charges 44,603 153,366
Profit on disposal of fixed assets - (14,339 )
Finance costs 101,294 209,298
Finance income (8,790 ) -
659,758 830,616
Decrease/(increase) in stocks 155,731 (309,546 )
Decrease/(increase) in trade and other debtors 901,563 (411,442 )
Increase/(decrease) in trade and other creditors 91,250 (173,211 )
Cash generated from operations 1,808,302 (63,583 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 July 2024
31/7/24 1/8/23
£ £
Cash and cash equivalents 58,379 319,035
Bank overdrafts (48,272 ) (2,546,848 )
10,107 (2,227,813 )
Year ended 31 July 2023
31/7/23 1/8/22
£ £
Cash and cash equivalents 319,035 57,805
Bank overdrafts (2,546,848 ) (1,406,294 )
(2,227,813 ) (1,348,489 )


Millgate Limited (Registered number: 03229619)

Notes to the Cash Flow Statement
for the Year Ended 31 July 2024

3. ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1/8/23 Cash flow At 31/7/24
£ £ £
Net cash
Cash at bank and in hand 319,035 (260,656 ) 58,379
Bank overdrafts (2,546,848 ) 2,498,576 (48,272 )
(2,227,813 ) 2,237,920 10,107
Debt
Finance leases (1,823 ) 1,823 -
Debts falling due within 1 year (300,000 ) 300,000 -
Debts falling due after 1 year (550,000 ) 550,000 -
(851,823 ) 851,823 -
Total (3,079,636 ) 3,089,743 10,107

Millgate Limited (Registered number: 03229619)

Notes to the Financial Statements
for the Year Ended 31 July 2024

1. STATUTORY INFORMATION

Millgate 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 Company Information page.

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.

Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods and services provided, taking into account trade and settlement discounts, volume rebates and value added tax and other sales taxes. Revenue from sale of goods is recognised when significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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.
Long leasehold - 4% on cost
Improvements to property - 4% on cost
Fixtures and fittings - 20% on cost
Motor vehicles - 25% on cost
Computer equipment - 33% on cost

Investments in associates
Investments in associate undertakings are recognised at cost less any provision for impairment.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Millgate Limited (Registered number: 03229619)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Millgate Limited (Registered number: 03229619)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

2. ACCOUNTING POLICIES - continued

Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 balance sheet date.


Millgate Limited (Registered number: 03229619)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

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.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024 2023
£ £
Sales of goods 33,648,700 34,040,758
Rendering of services 1,365,388 1,379,251
35,014,088 35,420,009

An analysis of turnover by geographical market is given below:

2024 2023
£ £
United Kingdom 34,780,117 34,902,566
Europe 172,424 254,373
Rest of World 61,547 263,070
35,014,088 35,420,009

Millgate Limited (Registered number: 03229619)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

4. EMPLOYEES AND DIRECTORS
2024 2023
£ £
Wages and salaries 3,550,652 3,860,153
Social security costs 391,274 402,633
Other pension costs 179,422 197,214
4,121,348 4,460,000

The average number of employees during the year was as follows:
2024 2023

Directors 2 2
Sales 45 51
Engineering 30 30
Accounts and administration 11 10
88 93

2024 2023
£ £
Directors' remuneration 27,559 19,083
Directors' pension contributions to money purchase schemes 70,000 33,333

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£ £
Depreciation - owned assets 44,603 131,415
Depreciation - assets on hire purchase contracts - 9,168
Profit on disposal of fixed assets - (14,339 )
Development costs amortisation - 12,783
Auditors' remuneration 20,000 16,000
Foreign exchange differences 357 2,198

Millgate Limited (Registered number: 03229619)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£ £
Bank loan interest 51,922 91,978
Factoring interest 49,372 117,950
Hire purchase - (630 )
101,294 209,298

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£ £
Current tax:
UK corporation tax 183,460 151,266

Deferred tax 43,139 148,164
Tax on profit 226,599 299,430

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£ £
Profit before tax 522,651 482,291
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 19%)

130,663

91,635

Effects of:
Expenses not deductible for tax purposes 53,420 23,653
Depreciation in excess of capital allowances 42,516 169,701
assets

Change in tax rate - 14,441
recognised
Total tax charge 226,599 299,430

8. DIVIDENDS
2024 2023
£ £
Ordinary shares of £1 each
Interim (6,800 ) 6,800

Millgate Limited (Registered number: 03229619)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

9. INTANGIBLE FIXED ASSETS
Development
costs
£
COST
At 1 August 2023
and 31 July 2024 62,705
AMORTISATION
At 1 August 2023
and 31 July 2024 62,705
NET BOOK VALUE
At 31 July 2024 -
At 31 July 2023 -

10. TANGIBLE FIXED ASSETS
Fixtures
Long Improvements and
leasehold to property fittings
£ £ £
COST
At 1 August 2023 1,605,216 29,783 355,660
Additions - - 3,970
At 31 July 2024 1,605,216 29,783 359,630
DEPRECIATION
At 1 August 2023 634,245 7,933 355,660
Charge for year 25,683 477 199
At 31 July 2024 659,928 8,410 355,859
NET BOOK VALUE
At 31 July 2024 945,288 21,373 3,771
At 31 July 2023 970,971 21,850 -

Millgate Limited (Registered number: 03229619)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

10. TANGIBLE FIXED ASSETS - continued

Motor Computer
vehicles equipment Totals
£ £ £
COST
At 1 August 2023 58,538 571,102 2,620,299
Additions 99,175 17,850 120,995
At 31 July 2024 157,713 588,952 2,741,294
DEPRECIATION
At 1 August 2023 36,410 571,102 1,605,350
Charge for year 14,542 3,702 44,603
At 31 July 2024 50,952 574,804 1,649,953
NET BOOK VALUE
At 31 July 2024 106,761 14,148 1,091,341
At 31 July 2023 22,128 - 1,014,949

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£
COST
At 1 August 2023 38,788
Transfer to ownership (38,788 )
At 31 July 2024 -
DEPRECIATION
At 1 August 2023 36,131
Transfer to ownership (36,131 )
At 31 July 2024 -
NET BOOK VALUE
At 31 July 2024 -
At 31 July 2023 2,657

Millgate Limited (Registered number: 03229619)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

11. FIXED ASSET INVESTMENTS
Interest in
associate
£
COST
At 1 August 2023
and 31 July 2024 651,685
PROVISIONS
At 1 August 2023
and 31 July 2024 158
NET BOOK VALUE
At 31 July 2024 651,527
At 31 July 2023 651,527

Associated companies

Vantage Drive Management Limited
Registered office: 1 Vantage Drive, Sheffield, United Kingdom, S9 1RG
Nature of business: Property

Class of shares: % holding
Ordinary 50.00


Millgate Connect Limited
Registered office: The registered office of Millgate Connect Limited is the same as that of Millgate Limited.
Nature of business: Wireless Communication

Class of shares: % holding
Ordinary 49.00

12. STOCKS
2024 2023
£ £
Stocks 398,619 554,350

Millgate Limited (Registered number: 03229619)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£ £
Trade debtors 5,000,817 5,992,436
Amounts owed by associates - 374,111
Other debtors 53,263 2,379
Wages Debtor 992 -
Tax 215,735 215,735
Prepayments and accrued income 150,710 112,530
5,421,517 6,697,191

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£ £
Bank loans and overdrafts (see note 16) 48,272 2,846,848
Hire purchase contracts (see note 17) - 1,823
Trade creditors 3,136,703 3,260,840
Amounts owed to associates 1,265,296 -
Tax 183,459 151,266
Social security and other taxes 107,903 94,033
VAT 135,085 176,488
Other creditors 347,527 210,930
Accruals and deferred income 586,063 479,740
5,810,308 7,221,968

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£ £
Bank loans (see note 16) - 550,000

16. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£ £
Amounts falling due within one year or on demand:
Bank overdrafts 48,272 2,546,848
Bank loans - 300,000
48,272 2,846,848

Amounts falling due between one and two years:
Bank loans - 1-2 years - 300,000

Millgate Limited (Registered number: 03229619)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

16. LOANS - continued
2024 2023
£ £
Amounts falling due between two and five years:
Bank loans - 2-5 years - 250,000

17. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2024 2023
£ £
Net obligations repayable:
Within one year - 1,823

18. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£ £
Bank overdrafts 48,272 2,546,848
Bank loans - 850,000
Hire purchase contracts - 1,823
48,272 3,398,671

Bank loans and overdrafts comprise an invoice discounting facility and are secured by a debenture over all company assets, including the properties and a charge over book debts.

19. PROVISIONS FOR LIABILITIES
2024 2023
£ £
Deferred tax 191,303 148,164

Deferred tax
£
Balance at 1 August 2023 148,164
Provided during year 43,139
Balance at 31 July 2024 191,303

Millgate Limited (Registered number: 03229619)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £ £
9,898 Ordinary £1 9,898 9,898

21. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 July 2024 and 31 July 2023:

2024 2023
£ £
Mr C D Calvert
Balance outstanding at start of year - 602,589
Amounts repaid - (602,589 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - -

22. RELATED PARTY DISCLOSURES

Millgate Connect Limited is a company under common control of the directors. At the year end, Millgate Limited owed £1,265,296 (2023 : -£374,111) to Millgate Connect Limited.

23. ULTIMATE CONTROLLING PARTY

The controlling party is Mr C D Calvert.