Company registration number SC056257 (Scotland)
WILLIAM MORTON LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
WILLIAM MORTON LIMITED
COMPANY INFORMATION
Directors
Ms G Smith
S Russell
J Turnbull
Mrs C A Jagielko
H Jagielko
Secretary
E Shearer
Company number
SC056257
Registered office
7 Evanton Drive
Thornliebank Industrial Estate
Glasgow
United Kingdom
G46 8HL
Auditor
Azets Audit Services
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
WILLIAM MORTON LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 36
WILLIAM MORTON LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 September 2024.
Review of the business
The directors are pleased to report another year of strong financial performance. Turnover increased to £72.5m (2023: £69.1m), while pre-tax profits rose to £1.86m (2023: £1.54m). These results reflect the group’s continued focus on financial discipline, operational excellence, and sustainable growth.
Throughout the year, the group has maintained a robust approach to working capital management, strengthening its cash position, optimising stock levels, and making an additional £0.5m contribution towards long-term debt reduction.
The group remains focused on enhancing product quality and presentation, recognising the importance of delivering exceptional products that exceed customer expectations.
In line with our commitment to environmental sustainability, the group has implemented various initiatives to reduce its environmental impact. Further details on these efforts can be found in the Energy and Carbon Report included later in these accounts.
Principal risks and uncertainties
The directors have prepared detailed financial projections covering a period of at least 12 months from the date of approval of these financial statements. These projections have been sensitised to account for potential macroeconomic factors that may impact trading. The analysis confirms that the group is expected to operate solvently within its existing funding and working capital resources.
The external environment in which the group operates remains challenging and highly competitive. To mitigate these risks, the group is committed to delivering exceptional service levels that are beyond expectation across all areas of the business.
Global economic conditions and supply chain disruptions may affect the timely procurement of goods from international suppliers. The group actively manages these risks by forward contracting exchange rates where appropriate and maintaining strategic stock levels to ensure continuity of supply.
Despite these challenges, the group is well positioned to adapt and respond effectively. It remains committed to expanding its product range and market presence, ensuring sustainable growth and resilience in the years ahead.
Key performance indicators
The groups key financial performance indicators are turnover, margins and stockholdings.
The directors are of the opinion that using non-financial KPIs is not necessary for the understanding of the development, performance and position of the business.
WILLIAM MORTON LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
S172 Statement
The directors of the company believe they have acted in the way they consider to be both in good faith and would be most likely to promote the success of the company for the benefit of its members as a whole. The duties of the directors are detailed in section 172 of the UK Companies Act 2006 which is summarised as follows:
A director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole and, in doing so have regard (amongst other matters) to:
The likely consequences of any decisions in the long-term;
The interests of the company’s employees;
The need to foster the company’s business relationships with suppliers, customers and others;
The impact of the company’s operations on the community and environment;
The desirability of the company maintaining a reputation for high standards of business conduct; and
The need to act fairly as between shareholders of the company.
Business conduct and relationships
We understand the importance of engaging with all our stakeholders and the directors regularly discuss issues concerning employees, clients, suppliers, community and environment, health & safety and shareholders which inform our decision making process. The directors are aware that their strategic decisions can have long term implications for the business and its stakeholders, and these implications are carefully assessed.
We aim to build positive working relationships and partnerships with customers and suppliers. We work hard to develop and maintain these relationships as they are central to our sustainable business ethos. Our aim is to build strong stable long-term working relationships with them and to be fair and transparent in all our dealings.
Employees
We believe the core strength of the group is its people and we are committed to being a responsible business and employer. The group aims to recruit, develop, motivate and retain the best talent. For the business to continue to succeed, we need to enable our people to perform at their best while ensuring we operate as efficiently and productively as possible.
S Russell
Director
8 May 2025
WILLIAM MORTON LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company and group continued to be that of the wholesaling of wines, spirits, beers and soft drinks.
Results and dividends
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Ms G Smith
S Russell
J Turnbull
Mrs C A Jagielko
H Jagielko
Auditor
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
The total energy consumption across William Morton Ltd from 1 October 2023 to 30 September 2024 is as follows:
Energy consumption
Consumption
CO2e (tonnes)
Electricity
197,382 kWh
41
Natural Gas
219,212 kWh
40
Diesel (Fuel Cards)
163,456 Ltr
411
Petrol (Fuel Cards)
23,023 Ltr
48
WILLIAM MORTON LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
As part of our commitment to environmental responsibility, we developed an Environmental, Social, and Governance (ESG) Strategic Framework during the year. This framework outlines key priorities for the short, medium, and long term, with the ultimate goal of achieving Net Zero by 2045, in alignment with the Scottish Government’s target for net-zero emissions.
Progress on Decarbonisation
1. Vehicles
Transitioned to a fully hybrid sales fleet.
Ensured all delivery vehicles are Low Emission Zone (LEZ) compliant, with an additional £400k investment in the latest financial year for five new Iveco trucks and two 18-tonne trucks.
Integrated a fully electric van into daily operations.
2. Buildings
3. Resource and Waste Management
Implemented comprehensive waste segregation across office and warehouse operations, including glass, cardboard, and plastics, to minimise landfill waste.
Transitioned to fully digital sales brochures to reduce paper use.
Introduced staff uniforms made from recycled materials.
Reduced packaged water usage by installing a premium point-of-use water dispensing system across our offices.
Future Sustainability Initiatives
During the financial year, we partnered with the University of Strathclyde to develop a Carbon Baseline Report, which provides further recommendations for reducing greenhouse gas emissions. These insights will be integrated into our ESG Framework as we continue advancing our sustainability goals.
At William Morton Ltd, sustainability is at the core of our operations. Through targeted investments, strategic initiatives, and a clear commitment to environmental responsibility, we have successfully reduced our carbon footprint while enhancing operational efficiency. Our ESG Strategic Framework provides a structured pathway to achieving Net Zero by 2045, ensuring that we not only comply with regulatory requirements but also drive meaningful change within our industry.
By integrating sustainable practices across our fleet, buildings, and resource management, we continue to lead by example, demonstrating that business growth and environmental stewardship can go hand in hand. With the insights from our Carbon Baseline Report and ongoing innovation, we are well-positioned to accelerate our journey towards a more sustainable future.
The methodology used by the group to calculate UK energy CO2 emissions was taken from the UK Government GHG Conversion Factors for Company Reporting advisory.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
Strategic Report
The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
WILLIAM MORTON LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
On behalf of the board
S Russell
Director
8 May 2025
WILLIAM MORTON LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 6 -
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards 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 group and company, 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
WILLIAM MORTON LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WILLIAM MORTON LIMITED
- 7 -
Opinion
We have audited the financial statements of William Morton Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 30 September 2024 and of the group's 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
WILLIAM MORTON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WILLIAM MORTON LIMITED
- 8 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
WILLIAM MORTON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WILLIAM MORTON LIMITED
- 9 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we 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. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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 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.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Jennifer Alexander (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
9 May 2025
Chartered Accountants
Statutory Auditor
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
WILLIAM MORTON LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
72,514,073
69,077,222
Cost of sales
(60,396,482)
(57,260,417)
Gross profit
12,117,591
11,816,805
Distribution costs
(3,809,126)
(3,773,016)
Administrative expenses
(6,311,972)
(6,298,857)
Operating profit
4
1,996,493
1,744,932
Interest receivable and similar income
8
109,939
59,022
Interest payable and similar expenses
9
(248,213)
(264,574)
Profit before taxation
1,858,219
1,539,380
Tax on profit
10
(445,553)
(472,543)
Profit for the financial year
27
1,412,666
1,066,837
Profit for the financial year is all attributable to the owners of the parent company.
WILLIAM MORTON LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
2024
2023
£
£
Profit for the year
1,412,666
1,066,837
Other comprehensive income
-
-
Total comprehensive income for the year
1,412,666
1,066,837
Total comprehensive income for the year is all attributable to the owners of the parent company.
WILLIAM MORTON LIMITED
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
45,154
Other intangible assets
12
98,720
183,338
Total intangible assets
98,720
228,492
Tangible assets
11
2,228,353
2,269,121
2,327,073
2,497,613
Current assets
Stocks
15
7,818,239
8,916,810
Debtors
16
9,208,604
9,193,961
Cash at bank and in hand
2,918,488
1,659,354
19,945,331
19,770,125
Creditors: amounts falling due within one year
17
(8,060,573)
(8,786,325)
Net current assets
11,884,758
10,983,800
Total assets less current liabilities
14,211,831
13,481,413
Creditors: amounts falling due after more than one year
18
(8,971,426)
(9,562,049)
Provisions for liabilities
Deferred tax liability
21
260,240
351,865
(260,240)
(351,865)
Net assets
4,980,165
3,567,499
Capital and reserves
Called up share capital
23
6,248
6,248
Revaluation reserve
24
29,159
29,159
Capital redemption reserve
26
25,000
25,000
Other reserves
25
1,300,000
1,300,000
Profit and loss reserves
27
3,619,758
2,207,092
Total equity
4,980,165
3,567,499
The financial statements were approved by the board of directors and authorised for issue on 8 May 2025 and are signed on its behalf by:
08 May 2025
S Russell
Director
Company registration number SC056257 (Scotland)
WILLIAM MORTON LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
198,513
Other intangible assets
12
98,720
183,338
Total intangible assets
98,720
381,851
Tangible assets
11
2,228,353
2,269,121
2,327,073
2,650,972
Current assets
Stocks
15
7,818,239
8,916,810
Debtors
16
9,208,604
9,193,961
Cash at bank and in hand
2,918,488
1,659,354
19,945,331
19,770,125
Creditors: amounts falling due within one year
17
(8,114,237)
(8,839,989)
Net current assets
11,831,094
10,930,136
Total assets less current liabilities
14,158,167
13,581,108
Creditors: amounts falling due after more than one year
18
(8,971,426)
(9,562,049)
Provisions for liabilities
21
(260,240)
(351,865)
Net assets
4,926,501
3,667,194
Capital and reserves
Called up share capital
23
6,248
6,248
Revaluation reserve
24
29,159
29,159
Capital redemption reserve
26
25,000
25,000
Other reserves
25
1,300,000
1,300,000
Profit and loss reserves
27
3,566,094
2,306,787
Total equity
4,926,501
3,667,194
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,259,307 (2023 - £1,132,972 profit).
The financial statements were approved by the board of directors and authorised for issue on 8 May 2025 and are signed on its behalf by:
08 May 2025
S Russell
Director
Company Registration No. SC056257
WILLIAM MORTON LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
Share capital
Revaluation reserve
Capital redemption reserve
Other Reserves
Profit and loss reserves
Total
£
£
£
£
£
£
Balance at 1 October 2022
6,248
29,159
25,000
1,300,000
1,140,255
2,500,662
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
-
-
1,066,837
1,066,837
Balance at 30 September 2023
6,248
29,159
25,000
1,300,000
2,207,092
3,567,499
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
-
-
1,412,666
1,412,666
Balance at 30 September 2024
6,248
29,159
25,000
1,300,000
3,619,758
4,980,165
WILLIAM MORTON LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
Share capital
Revaluation reserve
Capital redemption reserve
Other Reserves
Profit and loss reserves
Total
£
£
£
£
£
£
Balance at 1 October 2022
6,248
29,159
25,000
1,300,000
1,173,815
2,534,222
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
-
-
-
1,132,972
1,132,972
Balance at 30 September 2023
6,248
29,159
25,000
1,300,000
2,306,787
3,667,194
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
-
-
1,259,307
1,259,307
Balance at 30 September 2024
6,248
29,159
25,000
1,300,000
3,566,094
4,926,501
WILLIAM MORTON LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
32
2,702,376
(1,244,146)
Interest paid
(248,213)
(264,574)
Income taxes paid
(215,358)
(340,624)
Net cash inflow/(outflow) from operating activities
2,238,805
(1,849,344)
Investing activities
Purchase of tangible fixed assets
(635,997)
(337,922)
Proceeds from disposal of tangible fixed assets
59,750
71,467
Interest received
109,939
59,022
Net cash used in investing activities
(466,308)
(207,433)
Financing activities
Repayment of borrowings
(500,000)
(4,000,000)
Payment of finance leases obligations
(13,363)
(146,536)
Net cash used in financing activities
(513,363)
(4,146,536)
Net increase/(decrease) in cash and cash equivalents
1,259,134
(6,203,313)
Cash and cash equivalents at beginning of year
1,659,354
7,862,667
Cash and cash equivalents at end of year
2,918,488
1,659,354
WILLIAM MORTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
1
Accounting policies
Company information
William Morton Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is 7 Evanton Drive, Thornliebank Industrial Estate, Glasgow, United Kingdom, G46 8HL.
The group consists of William Morton Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Basis of consolidation
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
The consolidated group financial statements consist of the financial statements of the parent company William Morton Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 September 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
WILLIAM MORTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.3
Going concern
The directors are required to prepare the statutory financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
In satisfaction of their responsibility, the directors have considered the company's ability to meet its liabilities as they fall due. This assessment considers the company's principal risks and uncertainties and is dependent on a number of factors including financial performance and available financial resources.
The current and future financial position of the company, its cash flows and liquidity position have been reviewed by the directors.
Following this review, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. As such, the directors consider that it is appropriate to prepare the financial statements on the going concern basis.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is ten years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
WILLIAM MORTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 19 -
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
17% straight line
Software in the course of construction is not amortised until the asset is brought into use.
1.7
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
10% straight line
Computers
10 - 50% straight line
Motor Fleet
20% - 33% straight line
Freehold land is not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.8
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.9
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
WILLIAM MORTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 20 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.11
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.12
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
WILLIAM MORTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 21 -
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 group 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.
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 group after deducting all of its 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 group's contractual obligations expire or are discharged or cancelled.
WILLIAM MORTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 22 -
1.13
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.15
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
WILLIAM MORTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 23 -
1.18
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Stock and bad debt provisions
Stocks are valued at the lower of cost and selling price less costs to sell. This includes, where necessary, provisions for slow moving stocks. Calculations of these provisions requires judgements to be made, including the competitive and economic environment and market trends.
Calculations made in respect of provisions for doubtful debts requires judgement. This judgement is based on customer base and the economic environment.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Wholesale
72,396,182
68,812,483
Retail
117,891
264,739
72,514,073
69,077,222
2024
2023
£
£
Other revenue
Interest income
109,939
59,022
The directors consider there to be one geographical market of turnover, the United Kingdom.
WILLIAM MORTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(92,853)
(12,352)
Depreciation of owned tangible fixed assets
423,641
364,234
Depreciation of tangible fixed assets held under finance leases
213,913
73,764
Profit on disposal of tangible fixed assets
(20,539)
(32,800)
Amortisation of intangible assets
129,772
355,023
Operating lease charges
10,519
14,766
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
44,350
44,000
For other services
Taxation compliance services
5,750
5,400
Other taxation services
570
450
6,320
5,850
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Warehouse & distribution
82
85
82
85
Selling
25
25
25
25
Administration
34
37
34
37
Total
141
147
141
147
WILLIAM MORTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
6
Employees
(Continued)
- 25 -
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
5,435,690
5,246,090
5,435,690
5,246,090
Social security costs
444,992
448,510
444,992
448,510
Pension costs
179,474
155,302
179,474
155,302
6,060,156
5,849,902
6,060,156
5,849,902
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
267,337
277,854
Company pension contributions to defined contribution schemes
41,768
40,241
309,105
318,095
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
150,935
153,954
Company pension contributions to defined contribution schemes
35,000
35,000
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
109,939
59,022
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
109,939
59,022
WILLIAM MORTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 26 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
219,792
258,333
Other finance costs:
Interest on finance leases and hire purchase contracts
28,421
6,241
Total finance costs
248,213
264,574
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
536,603
214,784
Adjustments in respect of prior periods
575
149
Total current tax
537,178
214,933
Deferred tax
Origination and reversal of timing differences
(94,255)
257,610
Adjustment in respect of prior periods
2,630
Total deferred tax
(91,625)
257,610
Total tax charge
445,553
472,543
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,858,219
1,539,380
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.00%)
464,555
338,664
Tax effect of expenses that are not deductible in determining taxable profit
(1,811)
38,260
Adjustments in respect of prior years
575
149
Deferred tax adjustments in respect of prior years
(94,255)
Fixed asset differences
(20,738)
64,642
Remeasurement of deferred tax for changes in tax rates
30,828
Movement in deferred tax not recognised
97,227
Taxation charge
445,553
472,543
WILLIAM MORTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 27 -
11
Tangible fixed assets
Group
Freehold land and buildings
Fixtures and fittings
Motor Fleet
Total
£
£
£
£
Cost
At 1 October 2023
525,850
2,214,431
2,383,255
5,123,536
Additions
1,000
634,997
635,997
Disposals
(407,125)
(407,125)
At 30 September 2024
525,850
2,215,431
2,611,127
5,352,408
Depreciation and impairment
At 1 October 2023
341,050
1,597,936
915,429
2,854,415
Depreciation charged in the year
8,400
203,748
425,406
637,554
Eliminated in respect of disposals
(367,914)
(367,914)
At 30 September 2024
349,450
1,801,684
972,921
3,124,055
Carrying amount
At 30 September 2024
176,400
413,747
1,638,206
2,228,353
At 30 September 2023
184,800
616,495
1,467,826
2,269,121
Company
Freehold land and buildings
Fixtures and fittings
Motor Fleet
Total
£
£
£
£
Cost
At 1 October 2023
525,850
2,214,431
2,383,255
5,123,536
Additions
1,000
634,997
635,997
Disposals
(407,125)
(407,125)
At 30 September 2024
525,850
2,215,431
2,611,127
5,352,408
Depreciation and impairment
At 1 October 2023
341,050
1,597,936
915,429
2,854,415
Depreciation charged in the year
8,400
203,748
425,406
637,554
Eliminated in respect of disposals
(367,914)
(367,914)
At 30 September 2024
349,450
1,801,684
972,921
3,124,055
Carrying amount
At 30 September 2024
176,400
413,747
1,638,206
2,228,353
At 30 September 2023
184,800
616,495
1,467,826
2,269,121
WILLIAM MORTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
11
Tangible fixed assets
(Continued)
- 28 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Motor Fleet
913,524
886,526
913,524
886,526
12
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 October 2023 and 30 September 2024
3,944,066
507,707
4,451,773
Amortisation and impairment
At 1 October 2023
3,898,912
324,369
4,223,281
Amortisation charged for the year
45,154
84,618
129,772
At 30 September 2024
3,944,066
408,987
4,353,053
Carrying amount
At 30 September 2024
98,720
98,720
At 30 September 2023
45,154
183,338
228,492
Company
Goodwill
Software
Total
£
£
£
Cost
At 1 October 2023 and 30 September 2024
3,282,709
507,707
3,790,416
Amortisation and impairment
At 1 October 2023
3,084,196
324,369
3,408,565
Amortisation charged for the year
198,513
84,618
283,131
At 30 September 2024
3,282,709
408,987
3,691,696
Carrying amount
At 30 September 2024
98,720
98,720
At 30 September 2023
198,513
183,338
381,851
WILLIAM MORTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 29 -
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
£
£
£
£
Investments in subsidiaries
14
Movements in fixed asset investments
Company
Shares in subsidiary
£
Cost or valuation
At 1 October 2023 and 30 September 2024
53,660
Impairment
At 1 October 2023 and 30 September 2024
53,660
Carrying amount
At 30 September 2024
-
At 30 September 2023
-
WILLIAM MORTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 30 -
14
Subsidiaries
Details of the company's subsidiaries at 30 September 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Inverarity Vaults Limited
1)
Dormant company
Ordinary
100
Dollar Top Limited
1)
Holding company
Ordinary
100
Forth Wines Limited
1)
Dormant company
Ordinary
100
Dollar Prop Limited
1)
Property holding company
Ordinary
100
JA Glass Limited
1)
Dormant company
Ordinary
100
1) 7 Evanton Drive, Thornliebank Industrial Estate, Glasgow, G46 8HL.
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
7,818,239
8,916,810
7,818,239
8,916,810
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
6,104,107
5,849,545
6,104,107
5,849,545
Corporation tax recoverable
7,496
7,071
7,496
7,071
Other debtors
113,155
100,894
113,155
100,894
Prepayments and accrued income
710,308
653,513
710,308
653,513
6,935,066
6,611,023
6,935,066
6,611,023
Amounts falling due after more than one year:
Other debtors
2,273,538
2,582,938
2,273,538
2,582,938
Total debtors
9,208,604
9,193,961
9,208,604
9,193,961
In the prior year, the company provided a loan to a customer totalling £2.5m. This is repayable on 2 February 2026. The loan is secured by personal guarantee and interest is charged at 4% per annum.
WILLIAM MORTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 31 -
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
20
313,010
235,750
313,010
235,750
Trade creditors
4,472,291
5,270,701
4,472,291
5,270,701
Amounts owed to group undertakings
135,720
135,720
Corporation tax payable
537,178
214,933
537,178
214,933
Other taxation and social security
1,538,636
1,005,763
1,538,636
1,005,763
Other creditors
82,123
82,177
67
121
Accruals and deferred income
1,117,335
1,977,001
1,117,335
1,977,001
8,060,573
8,786,325
8,114,237
8,839,989
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
20
471,426
562,049
471,426
562,049
Other borrowings
19
8,500,000
9,000,000
8,500,000
9,000,000
8,971,426
9,562,049
8,971,426
9,562,049
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Other loans
8,500,000
9,000,000
8,500,000
9,000,000
Payable after one year
8,500,000
9,000,000
8,500,000
9,000,000
Other loans due are owed to ABA Equity Limited, immediate parent undertaking and controlling party.
The loan is unsecured and bears interest at 2.5% per annum.
WILLIAM MORTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 32 -
20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
313,010
235,750
313,010
235,750
In two to five years
471,426
562,049
471,426
562,049
784,436
797,799
784,436
797,799
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period. No restrictions are placed on the use of the assets. The average lease term is three years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Finance lease creditors are secured on the assets concerned.
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
260,240
351,865
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
260,240
351,865
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 October 2023
351,865
351,865
Credit to profit or loss
(91,625)
(91,625)
Liability at 30 September 2024
260,240
260,240
WILLIAM MORTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 33 -
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
179,474
155,302
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
6,248
6,248
6,248
6,248
The company has one class of ordinary shares which carry no right to fixed income.
24
Revaluation reserve
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning and end of the year
29,159
29,159
29,159
29,159
25
Other reserves
Group
£
At 1 October 2022
1,300,000
At 30 September 2023
1,300,000
At 30 September 2024
1,300,000
Company
£
At 1 October 2022
1,300,000
At 30 September 2023
1,300,000
At 30 September 2024
1,300,000
The other reserve represents a capital contribution from the parent company. The other reserve is a non-distributable reserve.
WILLIAM MORTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 34 -
26
Capital redemption reserve
Group
Company
2024
2023
2024
2023
£
£
£
£
At beginning and end of year
25,000
25,000
25,000
25,000
27
Profit and loss reserves
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
2,207,092
1,140,255
2,306,787
1,173,815
Profit for the year
1,412,666
1,066,837
1,259,307
1,132,972
At the end of the year
3,619,758
2,207,092
3,566,094
2,306,787
28
Financial commitments, guarantees and contingent liabilities
A cross guarantee exists between William Morton Limited and other related undertakings in respect of bank borrowings. The bank facilities are secured by a floating charge over the company's assets and undertakings and by a standard security over its freehold property.
The undertakings amongst which cross guarantees exist as follows:
William Morton Limited, Inverarity Vaults Limited, Dollar Top Limited, Dollar Prop Limited and Forth Wines Limited.
At 30 September 2024 the group had nil commitments under foreign exchange contracts to purchase EUR (2023 - EUR 750,000).
29
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
108,766
108,766
108,766
108,766
Between two and five years
-
8,766
-
8,766
108,766
117,532
108,766
117,532
WILLIAM MORTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 35 -
30
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
267,337
277,854
The directors consider the key management personnel to be the directors.
Transactions with related parties
Other information
Various directors of William Morton Limited are directors of ABA Estates Limited. During the year rent of £100,000 (2023: £100,000) was paid by the group to ABA Estates Limited.
Various directors of William Morton Limited are directors of ABA Equity Limited. During the year loan interest paid of £219,792 (2023 - £258,333) was made to ABA Equity Limited.
Various directors of William Morton Limited are directors of LLDR Alexandria Limited. During the year management charges of £188,360 (2023 - £182,875) were paid by the group to LLDR Alexandria Limited.
The company have loans of £8,500,000 remaining outstanding at 30 September 2024 (2023 - £9,000,000) to ABA Equity Limited, the immediate parent and controlling party. This balance is disclosed within other creditors due in one year of £nil and £8,500,000 due after one year.
31
Controlling party
The immediate parent undertaking and controlling party for which consolidated accounts are prepared is ABA Equity Limited. Consolidated accounts are available from The Registrar of Companies, or from the Company Secretary, ABA Equity Limited, 1 Anthony Road, Largs, KA30 8EQ.
The smallest group in which William Morton Limited's results are included is William Morton Limited. The largest group is ABA Equity Limited.
WILLIAM MORTON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 36 -
32
Cash generated from/(absorbed by) group operations
2024
2023
£
£
Profit for the year after tax
1,412,666
1,066,837
Adjustments for:
Taxation charged
445,553
472,543
Finance costs
248,213
264,574
Investment income
(109,939)
(59,022)
Gain on disposal of tangible fixed assets
(20,539)
(32,800)
Amortisation and impairment of intangible assets
129,772
355,023
Depreciation and impairment of tangible fixed assets
637,554
437,998
Movements in working capital:
Decrease/(increase) in stocks
1,098,571
(159,146)
Increase in debtors
(14,218)
(2,556,168)
Decrease in creditors
(1,125,257)
(1,033,985)
Cash generated from/(absorbed by) operations
2,702,376
(1,244,146)
33
Analysis of changes in net debt - group
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
1,659,354
1,259,134
2,918,488
Borrowings excluding overdrafts
(9,000,000)
500,000
(8,500,000)
Obligations under finance leases
(797,799)
13,363
(784,436)
(8,138,445)
1,772,497
(6,365,948)
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