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Registered number: 01734220










MELCOURT INDUSTRIES LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2024

 
MELCOURT INDUSTRIES LIMITED
 
 
COMPANY INFORMATION


Directors
Mr A R Chalmers (resigned 31 December 2024)
Mr S T Green (resigned 23 February 2024)
Mr A W Jenkinson 
Mrs P E Watson (resigned 30 September 2024)
Mrs N Burton (appointed 1 February 2024)
Mr A Smith (appointed 1 October 2024)




Company secretary
Mrs P E Watson - (Resigned 30 September 2024)
Mr A Smith - (Appointed 1 October 2024)



Registered number
01734220



Registered office
Boldridge Brake
Long Newnton

Tetbury

Gloucestershire

GL8 8RT




Independent auditors
WR Partners
Chartered Accountants & Statutory Auditors

Belmont House

Shrewsbury Business Park

Shrewsbury

Shropshire

SY2 6LG





 
MELCOURT INDUSTRIES LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditors' report
 
5 - 8
Statement of comprehensive income
 
9
Statement of financial position
 
10 - 11
Statement of changes in equity
 
12
Statement of cash flows
 
13 - 14
Notes to the financial statements
 
15 - 33


 
MELCOURT INDUSTRIES LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024

Introduction
 
The Directors present their report for the financial statements for the year ended 31 October 2024.
The company specialises in the supply of mulches, growing media, play surfaces, soil improvers, equestrian surfaces, biofiltration media and more, based on bark, wood and other natural materials.

Business review
 
Melcourt has been in receipt of another successful year.
The profit before taxation for the year was £973,857 compared to £1,084,670 in the prior year. Our gross profit has seen a slight decrease on 2023, however our overheads have increased compared to the previous year. This is predominantly due to succession planning with recruitment and additional salary costs.
We continue to retain and grow the business in our main sectors, which are retail outlets, builders’ merchants and professional growers.
The retail market has seen a significant increase in the number of ‘peat-free’ suppliers coming into the industry since 2021, pricing remains ever competitive, especially with this year’s change in government and the cost of living having a strong effect on customers spending habits and disposable income. We are delighted to announce we have been awarded the King’s Warrant on our peat-free organic growing mediums. With the new Warrant, our unique USP and RHS status, this enables us to sustain our premium brand and pricing. 
Our research and development activities continue to be a pivotal part of our innovation and quality control functions, operating over three test sites, plus an additional team member from January 2025.
Nikki Burton, who joined Melcourt as ‘Operations Director’ in October 2023 has been appointed to ‘Managing Director’ from January 2025, taking over from Andy Chalmers who will become company chairman.

Principal risks and uncertainties
 
The directors consider the key risks and uncertainties to the Company achieving its growth targets as follows:
- Availability of quality raw material to make peat-free products.
- An extension of lead times from our suppliers impacting on supply and demand timeframes.
- We continue to monitor our financial risks and review our customers and suppliers to minimise any impact  or implication to our business.

Financial key performance indicators
 
Financial key performance indicators used by the directors in assessing the performance of the business are gross margin and growth in turnover.

Page 1

 
MELCOURT INDUSTRIES LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024

Other key performance indicators
 
Other key performance indicators used by the directors in assessing the performance of the business are volume of product supplied to customers per week, stock turnover days and productivity of employees, measured through output per employee.


This report was approved by the board and signed on its behalf.



................................................
Mrs N Burton
Director

Date: 23 July 2025

Page 2

 
MELCOURT INDUSTRIES LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024

The directors present their report and the financial statements for the year ended 31 October 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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

Results and dividends

The profit for the year, after taxation, amounted to £745,514 (2023 - £847,048).

During the year the Company paid dividends of £400,000 (2023: £400,000).

Directors

The directors who served during the year were:

Mr A R Chalmers (resigned 31 December 2024)
Mr S T Green (resigned 23 February 2024)
Mr A W Jenkinson 
Mrs P E Watson (resigned 30 September 2024)
Mrs N Burton (appointed 1 February 2024)
Mr A Smith (appointed 1 October 2024)

Future developments

There are no specific future developments planned for the Company, other than the continuation of its current activities.

Page 3

 
MELCOURT INDUSTRIES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024


Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsWR Partnerswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





................................................
Mrs N Burton
Director

Date: 23 July 2025

Page 4

 
MELCOURT INDUSTRIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MELCOURT INDUSTRIES LIMITED
 

Opinion


We have audited the financial statements of Melcourt Industries Limited (the 'Company') for the year ended 31 October 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 October 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 5

 
MELCOURT INDUSTRIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MELCOURT INDUSTRIES LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic report and the 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.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the 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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 6

 
MELCOURT INDUSTRIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MELCOURT INDUSTRIES LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, 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 Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR). 
We understood how the Company is complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We also reviewed board minutes to identify any recorded instances of irregularity or non compliance that might have a material impact on the financial statements. 
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements.
 
Page 7

 
MELCOURT INDUSTRIES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MELCOURT INDUSTRIES LIMITED (CONTINUED)




Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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 Auditors' 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.





Andrew Malpass BA FCA (Senior statutory auditor)
  
for and on behalf of
WR Partners
 
Chartered Accountants
Statutory Auditors
  
Belmont House
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

28 July 2025
Page 8

 
MELCOURT INDUSTRIES LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
12,961,221
13,326,282

Cost of sales
  
(9,662,722)
(9,995,512)

Gross profit
  
3,298,499
3,330,770

Distribution costs
  
(103,995)
(89,642)

Administrative expenses
  
(2,101,427)
(2,033,077)

Operating profit
 5 
1,093,077
1,208,051

Interest payable and similar expenses
 8 
(119,220)
(123,381)

Profit before tax
  
973,857
1,084,670

Tax on profit
 9 
(228,343)
(237,622)

Profit for the year
  
745,514
847,048

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 15 to 33 form part of these financial statements.

Page 9

 
MELCOURT INDUSTRIES LIMITED
REGISTERED NUMBER: 01734220

STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 11 
3,785,308
3,883,208

  
3,785,308
3,883,208

Current assets
  

Stocks
 12 
1,729,038
1,587,312

Debtors: amounts falling due within one year
 13 
1,509,961
1,778,699

Cash at bank and in hand
 14 
1,036,721
1,067,211

  
4,275,720
4,433,222

Creditors: amounts falling due within one year
 15 
(2,395,927)
(2,076,961)

Net current assets
  
 
 
1,879,793
 
 
2,356,261

Total assets less current liabilities
  
5,665,101
6,239,469

Creditors: amounts falling due after more than one year
 16 
(628,214)
(1,519,540)

Provisions for liabilities
  

Deferred tax
 19 
(490,318)
(518,874)

  
 
 
(490,318)
 
 
(518,874)

Net assets
  
4,546,569
4,201,055

Page 10

 
MELCOURT INDUSTRIES LIMITED
REGISTERED NUMBER: 01734220
    
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 OCTOBER 2024

2024
2023
Note
£
£

Capital and reserves
  

Called up share capital 
 20 
292,500
292,500

Capital redemption reserve
 21 
97,500
97,500

Profit and loss account
 21 
4,156,569
3,811,055

  
4,546,569
4,201,055


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
Mrs N Burton
Director

Date: 23 July 2025

The notes on pages 15 to 33 form part of these financial statements.

Page 11

 
MELCOURT INDUSTRIES LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£


At 1 November 2022
292,500
97,500
3,364,007
3,754,007


Comprehensive income for the year

Profit for the year
-
-
847,048
847,048
Total comprehensive income for the year
-
-
847,048
847,048


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(400,000)
(400,000)


Total transactions with owners
-
-
(400,000)
(400,000)



At 1 November 2023
292,500
97,500
3,811,055
4,201,055


Comprehensive income for the year

Profit for the year
-
-
745,514
745,514
Total comprehensive income for the year
-
-
745,514
745,514


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(400,000)
(400,000)


Total transactions with owners
-
-
(400,000)
(400,000)


At 31 October 2024
292,500
97,500
4,156,569
4,546,569


The notes on pages 15 to 33 form part of these financial statements.

Page 12

 
MELCOURT INDUSTRIES LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
745,514
847,048

Adjustments for:

Depreciation of tangible assets
470,511
484,232

Profit on disposal of tangible assets
(28,995)
(2,000)

Interest paid
119,220
123,381

Taxation charge
228,343
237,622

(Increase)/decrease in stocks
(141,726)
18,189

Decrease in debtors
268,738
27,473

(Decrease)/increase in creditors
(281,825)
211,629

Corporation tax (paid)/received
(228,487)
-

Net cash generated from operating activities

1,151,293
1,947,574


Cash flows from investing activities

Purchase of tangible fixed assets
(398,293)
(233,401)

Sale of tangible fixed assets
54,677
2,000

HP interest paid
(60,253)
(65,422)

Net cash from investing activities

(403,869)
(296,823)
Page 13

 
MELCOURT INDUSTRIES LIMITED
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024


2024
2023

£
£



Cash flows from financing activities

Repayment of loans
(96,901)
(93,840)

Repayment of/new finance leases
(178,713)
(386,423)

Dividends paid
(443,333)
(356,667)

Interest paid
(58,967)
(57,959)

Net cash used in financing activities
(777,914)
(894,889)

Net (decrease)/increase in cash and cash equivalents
(30,490)
755,862

Cash and cash equivalents at beginning of year
1,067,211
311,349

Cash and cash equivalents at the end of year
1,036,721
1,067,211


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,036,721
1,067,211

1,036,721
1,067,211


Page 14

 
MELCOURT INDUSTRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

1.


General information

Melcourt Industries Limited is a Company incorporated and domiciled in England and has its registered office and principal place of business at Boldridge Brake, Long Newnton, Tetbury, Gloucestershire, GL8 8RT.
The principal activity of the Company is the supply of mulches, growing media, play surfaces, soil improvers, equestrian surfaces, biofiltration media and more, based on bark, wood and other natural materials.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

After making enquiries, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements. 

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Page 15

 
MELCOURT INDUSTRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 16

 
MELCOURT INDUSTRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.9

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 Amortisation is provided on the following bases:

Software / Website
-
20%
Straight line basis

Page 17

 
MELCOURT INDUSTRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Freehold property
-
Not depreciated
Property improvements
-
10% Straight line basis
Plant and machinery
-
10 - 20% Straight Line/Reducing balance basis
Motor vehicles
-
33% Reducing balance basis
Office equipment
-
20% Reducing balance basis

Freehold property is not depreciated on the grounds that its residual value will at least be equal to the carrying value in the financial statements.

 
2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 18

 
MELCOURT INDUSTRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)

 
2.15

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Statement of financial position when the Company becomes party to the contractual provisions of the instrument.

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

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
 
Page 19

 
MELCOURT INDUSTRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

2.Accounting policies (continued)


2.15
Financial instruments (continued)


Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

 
2.16

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 20

 
MELCOURT INDUSTRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. In the opinion of the directors there are are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Key Sources of estimation uncertainty 
The key assumptons concerning the future, and ther key sources of estimation uncertainty at the balance sheet date, that have a risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are discussed below.
Stock Valuation
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Raw materials cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads including processing costs. Management use compaction factors specific to estimate the quantities of stock items held. The carrying value of stock is £1,729,038 (2023: £1,587,312).


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Sustainable products for the Garden Centre, Builders' Merchants, Professional Growers, Landscape, Play and other special industries
12,961,221
13,326,282

12,961,221
13,326,282


All turnover arose within the United Kingdom.

Page 21

 
MELCOURT INDUSTRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

(Profit)/loss on sale of tangible fixed assets
(28,995)
(2,000)

Depreciation of tangible fixed assets
470,511
484,232

Auditor's remuneration
12,495
10,000

Defined contribution pension costs
161,386
125,483


6.


Employees

2024
2023
£
£

Wages and salaries
1,082,441
930,604

Social security costs
121,300
90,108

Cost of defined contribution scheme
161,386
125,483

1,365,127
1,146,195


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Employees
23
20

Page 22

 
MELCOURT INDUSTRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

7.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
163,009
154,994

Company contributions to defined contribution pension schemes
36,301
15,499

199,310
170,493


During the year retirement benefits were accruing to no directors (2023 - NIL) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £104,509 (2023: £99,533).  
The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £30,451 (2023: £15,499). 


8.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
58,967
57,959

Finance leases and hire purchase contracts
60,253
65,422

119,220
123,381

Page 23

 
MELCOURT INDUSTRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

9.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
257,168
228,755

Adjustments in respect of previous periods
(269)
-


256,899
228,755


Total current tax
256,899
228,755

Deferred tax


Origination and reversal of timing differences
(28,556)
8,867

Total deferred tax
(28,556)
8,867


Taxation on profit on ordinary activities
228,343
237,622
Page 24

 
MELCOURT INDUSTRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
 
9.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 22.5%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
973,857
1,084,670


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 22.5%)
243,464
244,051

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,564
158

Capital allowances for year in excess of depreciation
-
52,971

Adjustments to tax charge in respect of prior periods
(269)
-

Timing difference leading to an increase (decrease) in deferred taxation
8,796
(27,326)

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
(18,462)
(29,897)

Book profit on chargeable assets
(7,249)
(450)

Changes in provisions leading to an increase (decrease) in the tax charge
499
(1,885)

Total tax charge for the year
228,343
237,622


Factors that may affect future tax charges

There are no factors that may affect future tax charges. 


10.


Dividends

2024
2023
£
£


Paid on ordinary share capital
400,000
400,000

400,000
400,000

Page 25

 
MELCOURT INDUSTRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

11.


Tangible fixed assets





Freehold property
Property improvements
Plant and machinery
Motor vehicles
Office equipment
Total

£
£
£
£
£
£



Cost or valuation


At 1 November 2023
1,505,695
963,791
4,311,639
252,770
283,597
7,317,492


Additions
-
13,547
255,844
128,412
490
398,293


Disposals
-
(2,210)
(352,042)
(30,371)
-
(384,623)



At 31 October 2024

1,505,695
975,128
4,215,441
350,811
284,087
7,331,162



Depreciation


At 1 November 2023
-
830,396
2,270,653
122,089
211,146
3,434,284


Charge for the year on owned assets
-
13,674
373,266
64,056
19,515
470,511


Disposals
-
-
(338,423)
(20,518)
-
(358,941)



At 31 October 2024

-
844,070
2,305,496
165,627
230,661
3,545,854



Net book value



At 31 October 2024
1,505,695
131,058
1,909,945
185,184
53,426
3,785,308



At 31 October 2023
1,505,695
133,395
2,040,986
130,681
72,451
3,883,208

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Plant and machinery
1,388,200
1,538,723

Motor vehicles
154,910
113,937

1,543,110
1,652,660

Page 26

 
MELCOURT INDUSTRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

12.


Stocks

2024
2023
£
£

Raw materials and consumables
1,233,949
1,157,844

Finished goods and goods for resale
495,089
429,468

1,729,038
1,587,312



13.


Debtors

2024
2023
£
£


Trade debtors
1,278,006
1,575,739

Prepayments and accrued income
231,955
202,960

1,509,961
1,778,699



14.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
1,036,721
1,067,211

1,036,721
1,067,211


Page 27

 
MELCOURT INDUSTRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

15.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
683,651
101,594

Trade creditors
800,504
1,028,658

Corporation tax
257,168
228,756

Other taxation and social security
60,789
93,722

Obligations under finance lease and hire purchase contracts
438,171
404,516

Dividends payable
-
43,333

Accruals and deferred income
155,644
176,382

2,395,927
2,076,961


The bank have secured fixed and floating charges over the undertaking and all property and assets present and future including goodwill, book debts, uncalled capital, buildings, fixtures, fixed plant and machinery.
The bank loan is secured against the acquired freehold title at Boldridge Brake, Long Newnton including the land. 
Hire purchase liabilities are secured against the assets to which they relate.


16.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
-
678,958

Net obligations under finance leases and hire purchase contracts
628,214
840,582

628,214
1,519,540


The bank loan is secured against the acquired freehold title at Boldridge Brake, Long Newnton including the land. 
Hire purchase liabilities are secured against the assets to which they relate to.

Page 28

 
MELCOURT INDUSTRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

17.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
683,651
101,594


683,651
101,594

Amounts falling due 1-2 years

Bank loans
-
678,958


-
678,958



683,651
780,552


Included within bank loans is a balance repayable in monthly installments of £7,126, with a lump sum payment due on maturity. Interest is charged on the loan on a floating rate basis that shall never fall below the margin of 2.45%. The balance is expected to be repaid in full in November 2024.
Also included within bank loans is a balance repayable in monthly installments of £3,258, with a lump sum payment due on maturity. Interest is charged on the loan on a floating rate basis that shall never fall below the margin of 3.3%. The balance is expected to be repaid in full in December 2025.
The loans are secured by legal charges over freehold property, a debenture granted by the Company in favour of Barclays Bank PLC and the guarantees disclosed in note 23.

Page 29

 
MELCOURT INDUSTRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

18.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
438,171
404,516

Between 1-5 years
628,214
840,582

1,066,385
1,245,098


19.


Deferred taxation




2024
2023


£

£






At beginning of year
(518,874)
(510,007)


Charged to profit or loss
28,556
(8,867)



At end of year
(490,318)
(518,874)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(490,318)
(518,874)

(490,318)
(518,874)


20.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



292,500 (2023 - 292,500) Ordinary shares of £1.00 each
292,500
292,500


Page 30

 
MELCOURT INDUSTRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

21.


Reserves

Capital redemption reserve

The capital redemption reserve represents the nominal value of shares redeemed by the Company.

Profit and loss account

The profit and loss account represents accumulated undistributed profits/losses since incorporation.

22.


Analysis of net debt




At 1 November 2023
Cash flows
At 31 October 2024
£

£

£

Cash at bank and in hand

1,067,211

(30,490)

1,036,721

Debt due within 1 year

(780,552)

96,901

(683,651)

Finance leases

(1,245,098)

178,713

(1,066,385)


(958,439)
245,124
(713,315)


23.


Contingent liabilities

A W Jenkinson has provided a guarantee to the Company's bankers limited to £75,000.
Charles Ransford and Son Limited have provided a guarantee to the Company's bankers limited to £75,000.


24.


Capital commitments


At 31 October 2024 the Company had capital commitments as follows:

2024
2023
£
£


Contracted for but not provided in these financial statements
114,298
71,675

114,298
71,675

Page 31

 
MELCOURT INDUSTRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

25.


Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £161,386 (2023: £125,483) Included within Creditors is a balance for defined contribution pension scheme contributions payable of £22,903 (2023: £10,413).


26.


Commitments under operating leases

At 31 October 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
33,448
27,490

Later than 1 year and not later than 5 years
101,882
44,021

135,330
71,511

Page 32

 
MELCOURT INDUSTRIES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024

27.


Related party transactions

The Company entered into transactions with Charles Ransford & Son Ltd, a company with common shareholders. Purchases made during the year from Charles Ransford & Son Ltd totalled £453,927 (2023: £403,220). There was a creditor due at the year-end for the balance of £39,564 (2023: £66,553) which is included within trade creditors. 
The Company entered into transactions with A W Jenkinson Forest Products, a business with a common owner/shareholder. Purchases made during the year from A W Jenkinson Forest Products totalled £2,008,925 (2023: £1,947,303). There was a creditor due at the year-end for the balance of £138,787 (2023: £193,130) which is included within trade creditors.
Sales made to A W Jenkinson Forest Products during the year totalled £1,678 (2023: £2,759). There was a debtor at the year end for the balance of £1,574 (2023: £Nil) which was included in trade debtors.
The Company entered into transactions with Amenity Horticultural Services Ltd, a company with a common shareholder. Sales made during the year to Amenity Horticultural Services Ltd totalled £16,026 (2023: £37,088). There was an outstanding debtor due from Amenity Horticultural Services Ltd at the end of the year of £3,325 (2023: £4,731) which is included within trade debtors.
The Company entered into transactions with Berite Sawmills Ltd, a company with a common shareholder. Purchases made during the year from Berite Sawmills Ltd totalled £31,319 (2023: £78,555). There was a creditor due at the year-end for the balance of £1,632 (2023: £2,790) which is included within trade creditors. 
The Company entered into transactions with Wood Waste Recycling Ltd, a company with a common shareholder. Purchases made during the year from Wood Waste Recycling Ltd totalled £Nil (2023: £5,125). There were no outstanding amounts due from Wood Waste Recycling Ltd at the end of the year (2023: £NIL).


28.


Controlling party

There is no one individual controlling party of the Company.

 
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