Company registration number 02129321 (England and Wales)
MOUNT TRADING COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
MOUNT TRADING COMPANY LIMITED
COMPANY INFORMATION
Directors
Mr M T Cap
Mrs K M Cap
Mrs G L Bottomley
Mr J M Evans
Mr D W Roberts
Mr A D Griffiths
Secretary
Mrs K M Cap
Company number
02129321
Registered office
West Point, Second Floor
Mucklow Office Park
Mucklow Hill
Halesowen
West Midlands
England
B62 8DY
Auditor
Sumer Auditco Limited
The Beehive Building
Beehive Ring Road
Gatwick
Crawley
United Kingdom
RH6 0PA
MOUNT TRADING COMPANY LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10 - 11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 35
MOUNT TRADING COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -
The directors present the strategic report for the year ended 31 October 2024.
Review of the business
The directors consider the key performance indicator of the company to be turnover and and profit before tax. The directors report a decrease in turnover levels to £7,813,066 (2023 : £8,125,102) and net profit before tax of £215,191 (2023 : £127,536).
Principal risks and uncertainties
The group does not actively use financial instruments as part of its financial risk management and during the year the company has been exposed to risks of supplier price increases, credit risk, liquidity risk and cash flow risk. The directors do not consider any other risks attaching to the use of financial instruments to be material to an assessment of its financial position.
Mr M T Cap
Director
14 July 2025
MOUNT TRADING COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 October 2024.
Principal activities
The principal activity of the company and group continued to be that of pressure treatment for timber fencing and retail of agricultural supplies.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £256,784. 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:
Mr M T Cap
Mrs K M Cap
Mrs G L Bottomley
Mr J M Evans
Mr D W Roberts
Mr A D Griffiths
Mr P J Barkley
(Resigned 28 February 2025)
Auditor
In accordance with the company's articles, a resolution proposing that Sumer Auditco Limited be reappointed as auditor of the group will be put at a General Meeting.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company'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. It has done so in respect oftrue the review of the business and principal risks and uncertainties.
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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr M T Cap
Director
14 July 2025
MOUNT TRADING COMPANY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
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.
MOUNT TRADING COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MOUNT TRADING COMPANY LIMITED
- 4 -
Opinion
We have audited the financial statements of Mount Trading Company Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 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, the company 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 31 October 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.
MOUNT TRADING COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MOUNT TRADING COMPANY LIMITED
- 5 -
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.
Based on our understanding of the company and the industry in which it operates, we identified that principal risks of non-compliance with laws and regulations related to breaches of the Sale of Goods Act 1979 and we considered the extent to which non-compliance might have a material effect on the financial statements. Additionally, we considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks related to posting journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates and significant one-off or unusual transactions. Audit procedures performed by the engagement team included:
Discussions with management and those charged with governance including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;
Evaluation and testing of the operating effectiveness of management's entity level controls designed to prevent and detect irregularities;
Performing testing on month-end adjustments;
Incorporating unpredictability into the nature, timing and/or extent of our testing;
Challenging assumptions and judgements made by management in their significant accounting estimates, in particular the valuation and classification of freehold property, intangible assets and the recoverability of related party balances;
Identifying and testing journal entries, in particular any journal entries posted by infrequent users or senior management or posted with descriptions indicating a higher level of risk;
Testing in relation to stock valuation and associated provision.
MOUNT TRADING COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MOUNT TRADING COMPANY LIMITED
- 6 -
Whilst our audit did not identify any significant matters relating to the detection of irregularities including fraud, and despite the audit being planned and conducted in accordance with ISAs (UK), there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity would likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls.
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.
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.
Mr Alan Jones FCCA (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited, Statutory Auditor
Chartered Accountants
The Beehive Building
Beehive Ring Road
Gatwick
Crawley
RH6 0PA
United Kingdom
17 July 2025
MOUNT TRADING COMPANY LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
7,813,066
8,125,102
Cost of sales
(4,916,570)
(5,225,838)
Gross profit
2,896,496
2,899,264
Administrative expenses
(2,616,925)
(2,718,722)
Other operating income
-
7,899
Operating profit
4
279,571
188,441
Interest payable and similar expenses
7
(64,380)
(60,905)
Profit before taxation
215,191
127,536
Tax on profit
8
(91,020)
(59,471)
Profit for the financial year
124,171
68,065
Profit for the financial year is all attributable to the owners of the parent company.
MOUNT TRADING COMPANY LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -
2024
2023
£
£
Profit for the year
124,171
68,065
Other comprehensive income
Revaluation of tangible fixed assets
482,315
Cash flow hedges gain arising in the year
Tax relating to other comprehensive income
(120,579)
Other comprehensive income for the year
361,736
Total comprehensive income for the year
124,171
429,801
Total comprehensive income for the year is all attributable to the owners of the parent company.
MOUNT TRADING COMPANY LIMITED
GROUP BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
1,264,932
1,420,262
Tangible assets
11
2,719,514
2,762,372
3,984,446
4,182,634
Current assets
Stocks
14
1,801,051
1,924,825
Debtors
15
1,646,818
1,711,517
Cash at bank and in hand
6,421
21,377
3,454,290
3,657,719
Creditors: amounts falling due within one year
16
(1,957,760)
(2,090,590)
Net current assets
1,496,530
1,567,129
Total assets less current liabilities
5,480,976
5,749,763
Creditors: amounts falling due after more than one year
17
(390,559)
(518,442)
Provisions for liabilities
Deferred tax liability
20
271,116
279,407
(271,116)
(279,407)
Net assets
4,819,301
4,951,914
Capital and reserves
Called up share capital
22
206
206
Share premium account
214,994
214,994
Revaluation reserve
611,676
611,676
Profit and loss reserves
3,992,425
4,125,038
Total equity
4,819,301
4,951,914
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 14 July 2025 and are signed on its behalf by:
14 July 2025
Mr M T Cap
Director
Company registration number 02129321 (England and Wales)
MOUNT TRADING COMPANY LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2024
31 October 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
1,264,932
1,195,362
Tangible assets
11
2,719,514
2,751,863
Investments
12
100
300,000
3,984,546
4,247,225
Current assets
Stocks
14
1,801,051
1,793,733
Debtors
15
1,646,818
1,690,973
Cash at bank and in hand
6,321
8,185
3,454,190
3,492,891
Creditors: amounts falling due within one year
16
(1,957,760)
(2,004,693)
Net current assets
1,496,430
1,488,198
Total assets less current liabilities
5,480,976
5,735,423
Creditors: amounts falling due after more than one year
17
(390,559)
(494,275)
Provisions for liabilities
Deferred tax liability
20
271,116
276,780
(271,116)
(276,780)
Net assets
4,819,301
4,964,368
Capital and reserves
Called up share capital
22
206
206
Share premium account
214,994
214,994
Revaluation reserve
611,676
611,676
Profit and loss reserves
3,992,425
4,137,492
Total equity
4,819,301
4,964,368
MOUNT TRADING COMPANY LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 OCTOBER 2024
31 October 2024
- 11 -
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 £111,717 (2023 - £74,701 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 14 July 2025 and are signed on its behalf by:
14 July 2025
Mr M T Cap
Director
Company registration number 02129321 (England and Wales)
MOUNT TRADING COMPANY LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 November 2022
206
214,994
249,940
4,104,973
4,570,113
Year ended 31 October 2023:
Profit for the year
-
-
-
68,065
68,065
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
482,315
-
482,315
Tax relating to other comprehensive income
-
-
(120,579)
-
(120,579)
Total comprehensive income
-
-
361,736
68,065
429,801
Dividends
9
-
-
-
(48,000)
(48,000)
Balance at 31 October 2023
206
214,994
611,676
4,125,038
4,951,914
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
-
124,171
124,171
Dividends
9
-
-
-
(256,784)
(256,784)
Balance at 31 October 2024
206
214,994
611,676
3,992,425
4,819,301
MOUNT TRADING COMPANY LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 13 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 November 2022
206
214,994
249,940
4,110,790
4,575,930
Year ended 31 October 2023:
Profit for the year
-
-
-
74,702
74,702
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
482,315
-
482,315
Tax relating to other comprehensive income
-
-
(120,579)
-
(120,579)
Total comprehensive income
-
-
361,736
74,702
436,438
Dividends
9
-
-
-
(48,000)
(48,000)
Balance at 31 October 2023
206
214,994
611,676
4,137,492
4,964,368
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
-
111,717
111,717
Dividends
9
-
-
-
(256,784)
(256,784)
Balance at 31 October 2024
206
214,994
611,676
3,992,425
4,819,301
MOUNT TRADING COMPANY LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
524,142
234,210
Interest paid
(64,380)
(60,905)
Income taxes paid
(59,437)
(107,959)
Net cash inflow from operating activities
400,325
65,346
Investing activities
Purchase of tangible fixed assets
(23,862)
(30,170)
Proceeds from disposal of tangible fixed assets
12,594
18,301
Repayment of loans
61,731
-
Net cash generated from/(used in) investing activities
50,463
(11,869)
Financing activities
Proceeds from issue of shares
-
(146,793)
Repayment of bank loans
(101,210)
(99,785)
Payment of finance leases obligations
(37,899)
(44,702)
Dividends paid to equity shareholders
(256,784)
(48,000)
Net cash used in financing activities
(395,893)
(339,280)
Net increase/(decrease) in cash and cash equivalents
54,895
(285,803)
Cash and cash equivalents at beginning of year
(1,068,004)
(782,201)
Cash and cash equivalents at end of year
(1,013,109)
(1,068,004)
Relating to:
Cash at bank and in hand
6,421
21,377
Bank overdrafts included in creditors payable within one year
(1,019,530)
(1,089,381)
MOUNT TRADING COMPANY LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
458,548
152,728
Interest paid
(64,045)
(59,914)
Income taxes paid
(57,645)
(106,165)
Net cash inflow/(outflow) from operating activities
336,858
(13,351)
Investing activities
Purchase of intangible assets
(224,900)
Purchase of tangible fixed assets
(21,071)
(30,170)
Proceeds from disposal of tangible fixed assets
18,301
Proceeds from disposal of subsidiaries
299,900
Proceeds from disposal of investments
(75,000)
Repayment of loans
61,731
(99,028)
Dividends received
52,195
Net cash generated from/(used in) investing activities
92,855
(110,897)
Financing activities
Repayment of bank loans
(67,043)
(89,786)
Payment of finance leases obligations
(37,899)
(44,702)
Dividends paid to equity shareholders
(256,784)
(48,000)
Net cash used in financing activities
(361,726)
(182,488)
Net increase/(decrease) in cash and cash equivalents
67,987
(306,736)
Cash and cash equivalents at beginning of year
(1,081,196)
(774,460)
Cash and cash equivalents at end of year
(1,013,209)
(1,081,196)
Relating to:
Cash at bank and in hand
6,321
8,185
Bank overdrafts included in creditors payable within one year
(1,019,530)
(1,089,381)
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 16 -
1
Accounting policies
Company information
Mount Trading Company Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is West Point, Second Floor, Mucklow Office Park, Mucklow Hill, Halesowen, West Midlands, England, B62 8DY.
The group consists of Mount Trading Company 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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Business combinations
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.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Mount Trading Company 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 31 October 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.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 17 -
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover represents the total invoice value, excluding value added tax, of sales made during the period.
The group recognised revenue from the following major sources;
The nature, timing of satisfaction of performance obligations and significant payment terms of the group's major sources of revenue are as follows;
Retail trading
Revenue from the sale of goods within the retail trading sector is recognised when the significant risks and rewards of ownership of the goods have been passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, and it is probable that economic benefits associated with the transactions will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.6
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 20 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.
1.7
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.
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 18 -
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:
Freehold land and buildings
0%
Plant and equipment
15% reducing balance
Fixtures and fittings
10% reducing balance
Computers
10% reducing balance
Motor vehicles
25% reducing balance
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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
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.
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 19 -
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 complete and 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 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 and cash equivalents
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.
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 20 -
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 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
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.
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 21 -
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.
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.
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 22 -
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.
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.
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 23 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and the residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
Property valuation
The company's freehold properties are held at their valuation, taking into account the most reliable evidence at each reporting date. The details of any such valuation is shown in note 12 to these financial statements. The total revaluation reserve generated from any such revaluations, including the deferred tax consideration on the revaluation, is £611,676(2023: £611,676), as shown on the balance sheet.
Slow moving and obsolete stock
Management estimates the net realisable value of inventories, taking into account the most reliable evidence at each reporting date. The future realisation of these inventories may be affected by future technology and other market driven changes that may reduce future selling price. No provisions for slow moving or obsolete stock were required.
Goodwill amortisation
The annual amortisation charge for intangible assets is sensitive to changes in the estimated useful economonic lives and the continued economic benefits they create. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on future investments and trading activity.
3
Turnover
Turnover is wholly derived from the company's principal activity based in the United Kingdom.
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
54,126
56,812
Profit on disposal of tangible fixed assets
-
(9,019)
Amortisation of intangible assets
155,330
155,330
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 24 -
5
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
Sales and Distribution
43
46
38
41
Administration
6
6
6
6
Management
8
9
8
9
Total
57
61
52
56
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,381,611
1,451,649
1,352,655
1,354,612
Social security costs
126,291
127,295
123,976
123,424
Pension costs
27,747
33,163
26,989
30,334
1,535,649
1,612,107
1,503,620
1,508,370
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
151,969
148,777
Company pension contributions to defined contribution schemes
3,304
3,675
155,273
152,452
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
26,408
28,651
Other finance costs:
Interest on finance leases and hire purchase contracts
6,567
5,698
Other interest
31,405
26,556
Total finance costs
64,380
60,905
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 25 -
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
99,567
59,693
Adjustments in respect of prior periods
(256)
299
Total current tax
99,311
59,992
Deferred tax
Origination and reversal of timing differences
(8,291)
(521)
Total tax charge
91,020
59,471
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
215,191
127,536
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
53,798
31,884
Effect of change in corporation tax rate
-
(3,779)
Permanent capital allowances in excess of depreciation
43,142
31,265
Depreciation on assets not qualifying for tax allowances
-
323
Under/(over) provided in prior years
(256)
299
Deferred tax movement
(5,664)
(521)
Taxation charge
91,020
59,471
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Deferred tax arising on:
Revaluation of property
-
120,579
9
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
256,784
48,000
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 26 -
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 November 2023 and 31 October 2024
3,121,607
Amortisation and impairment
At 1 November 2023
1,701,345
Amortisation charged for the year
155,330
At 31 October 2024
1,856,675
Carrying amount
At 31 October 2024
1,264,932
At 31 October 2023
1,420,262
Company
Goodwill
£
Cost
At 1 November 2023
2,876,262
Additions
245,345
At 31 October 2024
3,121,607
Amortisation and impairment
At 1 November 2023
1,680,900
Amortisation charged for the year
155,330
Transfers
20,445
At 31 October 2024
1,856,675
Carrying amount
At 31 October 2024
1,264,932
At 31 October 2023
1,195,362
More information on impairment movements in the year is given in note .
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 27 -
11
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 November 2023
2,400,000
487,534
143,869
56,193
359,497
3,447,093
Additions
4,225
9,385
8,088
2,164
23,862
Disposals
(24,891)
(26,406)
(27,580)
(78,877)
At 31 October 2024
2,400,000
466,868
126,848
64,281
334,081
3,392,078
Depreciation and impairment
At 1 November 2023
376,600
77,093
33,716
197,312
684,721
Depreciation charged in the year
16,408
6,937
2,660
28,121
54,126
Eliminated in respect of disposals
(20,667)
(20,200)
(25,416)
(66,283)
At 31 October 2024
372,341
63,830
36,376
200,017
672,564
Carrying amount
At 31 October 2024
2,400,000
94,527
63,018
27,905
134,064
2,719,514
At 31 October 2023
2,400,000
110,934
66,776
22,477
162,185
2,762,372
Company
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 November 2023
2,400,000
462,643
120,254
56,193
331,917
3,371,007
Additions
4,225
6,594
8,088
2,164
21,071
At 31 October 2024
2,400,000
466,868
126,848
64,281
334,081
3,392,078
Depreciation and impairment
At 1 November 2023
356,117
57,163
33,716
172,148
619,144
Depreciation charged in the year
16,224
6,667
2,660
27,869
53,420
At 31 October 2024
372,341
63,830
36,376
200,017
672,564
Carrying amount
At 31 October 2024
2,400,000
94,527
63,018
27,905
134,064
2,719,514
At 31 October 2023
2,400,000
106,526
63,091
22,477
159,769
2,751,863
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
11
Tangible fixed assets
(Continued)
- 28 -
The carrying value of land and buildings comprises:
Group
Company
2024
2023
2024
2023
£
£
£
£
Freehold
2,400,000
2,400,000
2,400,000
2,400,000
Land and Buildings with a carrying value of £2,400,000 were revalued on 31 October 2023 by the director.
This figure was derived with consultation to the report undertaken by Mason Owen in April 2021 which valued the properties at £1,740,000 taking into account the additional site works undertaken at the Newtown site and the growth of the trading estate in Aberystwyth, together with the increase in current market values for similar trading sites which are for sale.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Freehold Property
2024
2023
£
£
Group
Cost
1,584,432
1,584,432
Company
Cost
1,584,432
1,584,432
Carrying value
1,584,432
1,584,432
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
100
300,000
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
12
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 November 2023
300,000
Valuation changes
(75,000)
Transfer of goodwill
(224,900)
At 31 October 2024
100
Carrying amount
At 31 October 2024
100
At 31 October 2023
300,000
During the financial year assets and goodwill have been transferred from Subsidiary company to the Parent.
13
Subsidiaries
Details of the company's subsidiaries at 31 October 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Morgans Machinery Limited
West Point, Mucklow Hill, Halesowen, United Kingdom, B62 8DY
Ordinary
100.00
Mount Trading Company Limited has agreed to guarantee the liabilities of its subsidiary, Morgans Machinery Limited (Company number: 02629112), thereby allowing them to take exemption from audit under Section 479A of the Companies Act 2006.
14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
1,801,051
1,924,825
1,801,051
1,793,733
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 30 -
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
557,148
585,875
557,148
569,081
Amounts owed by undertakings in which the company has a participating interest
1,017,246
992,888
1,017,246
990,631
Other debtors
37,297
99,028
37,297
99,028
Prepayments and accrued income
35,127
33,726
35,127
32,233
1,646,818
1,711,517
1,646,818
1,690,973
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
1,129,394
1,199,245
1,129,394
1,189,245
Obligations under finance leases
19
26,673
37,899
26,673
37,899
Trade creditors
453,959
501,435
453,959
435,708
Amounts owed to group undertakings
12,877
Amounts owed to undertakings in which the group has a participating interest
40,629
70,825
40,629
70,825
Corporation tax payable
99,567
59,693
99,567
57,901
Other taxation and social security
146,784
152,470
146,784
149,924
Other creditors
6,642
21,818
6,642
6,359
Accruals and deferred income
54,112
47,205
54,112
43,955
1,957,760
2,090,590
1,957,760
2,004,693
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
368,299
469,509
368,299
445,342
Obligations under finance leases
19
22,260
48,933
22,260
48,933
390,559
518,442
390,559
494,275
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 31 -
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
478,163
579,373
478,163
545,206
Bank overdrafts
1,019,530
1,089,381
1,019,530
1,089,381
1,497,693
1,668,754
1,497,693
1,634,587
Payable within one year
1,129,394
1,199,245
1,129,394
1,189,245
Payable after one year
368,299
469,509
368,299
445,342
The overdraft facility and loans are secured by fixed and floating charges over the properties known as Glanyrafon Industrial Estate, Aberystwyth dated 29 October 2004, and Land at Mochdre Industrial Estate, Newtown, Powys dated 9 July 2015. There are also fixed and floating charges over all the assets of the company dated 14 May 2004 and 24 November 1988.
19
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
26,673
37,899
26,673
37,899
In two to five years
22,260
48,933
22,260
48,933
48,933
86,832
48,933
86,832
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, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments and are secured against the individual assets to which they relate.
20
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
67,224
75,515
Revaluations
203,892
203,892
271,116
279,407
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
20
Deferred taxation
(Continued)
- 32 -
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
67,224
72,888
Revaluations
203,892
203,892
271,116
276,780
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 November 2023
279,407
276,780
Credit to profit or loss
(8,291)
(5,664)
Liability at 31 October 2024
271,116
271,116
Of the group and company deferred tax liability set out above, £12,996 is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period. The deferred tax on revaluations will only be realised when the assets are sold, which is not expected to be within 12 months.
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
27,747
33,163
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.
22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
106
106
106
106
Ordinary A shares of £1 each
100
100
100
100
206
206
206
206
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 33 -
23
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Group
Other related parties
96,084
643,729
15,298
111,282
Company
Other related parties
96,084
643,729
15,298
111,282
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2024
2023
£
£
Group
Other related parties
40,629
70,825
Company
Other related parties
40,629
70,825
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Other related parties
1,017,246
990,631
Company
Other related parties
1,017,246
990,631
24
Controlling party
There is no ultimate controlling party.
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 34 -
25
Cash generated from group operations
2024
2023
£
£
Profit after taxation
124,171
68,065
Adjustments for:
Taxation charged
91,020
59,471
Finance costs
64,380
60,905
Gain on disposal of tangible fixed assets
-
(9,019)
Amortisation and impairment of intangible assets
155,330
155,330
Depreciation and impairment of tangible fixed assets
54,126
56,812
Movements in working capital:
Decrease in stocks
123,774
153,480
Decrease in debtors
2,968
94,144
Decrease in creditors
(91,627)
(404,978)
Cash generated from operations
524,142
234,210
26
Cash generated from operations - company
2024
2023
£
£
Profit after taxation
111,717
74,702
Adjustments for:
Taxation charged
93,647
57,372
Finance costs
64,045
59,914
Investment income
(52,195)
Gain on disposal of tangible fixed assets
-
(9,019)
Amortisation and impairment of intangible assets
155,330
143,063
Depreciation and impairment of tangible fixed assets
53,420
55,108
Other gains and losses
75,000
-
Movements in working capital:
(Increase)/decrease in stocks
(7,318)
159,739
(Increase)/decrease in debtors
(17,576)
101,349
Decrease in creditors
(17,522)
(489,500)
Cash generated from operations
458,548
152,728
MOUNT TRADING COMPANY LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 35 -
27
Analysis of changes in net debt - group
1 November 2023
Cash flows
31 October 2024
£
£
£
Cash at bank and in hand
21,377
(14,956)
6,421
Bank overdrafts
(1,089,381)
69,851
(1,019,530)
(1,068,004)
54,895
(1,013,109)
Borrowings excluding overdrafts
(579,373)
101,210
(478,163)
Obligations under finance leases
(86,832)
37,899
(48,933)
(1,734,209)
194,004
(1,540,205)
28
Analysis of changes in net debt - company
1 November 2023
Cash flows
31 October 2024
£
£
£
Cash at bank and in hand
8,185
(1,864)
6,321
Bank overdrafts
(1,089,381)
69,851
(1,019,530)
(1,081,196)
67,987
(1,013,209)
Borrowings excluding overdrafts
(545,206)
67,043
(478,163)
Obligations under finance leases
(86,832)
37,899
(48,933)
(1,713,234)
172,929
(1,540,305)
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