REGISTERED NUMBER: 04043912 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

MIDBASS DISTRIBUTION LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

Mr C J Etheridge

Mr C R Venables

Mr D Witt

SECRETARY:

Mr C J Etheridge

REGISTERED OFFICE:

Tech House

Unit 26 Reddicap Trading Estate

Sutton Coldfield

West Midlands

B75 7BU

REGISTERED NUMBER:

04043912 (England and Wales)

ACCOUNTANTS:

LDP Luckmans

1110 Elliott Court

Coventry Business Park

Herald Avenue

Coventry

West Midlands

CV5 6UB

FIXED ASSETS

Intangible assets

4

48,840

49,461

Property, plant and equipment

5

2,823,177

2,609,653

2,872,017

2,659,114

CURRENT ASSETS

Inventories

6

1,383,956

1,692,056

Debtors

7

1,350,169

1,264,303

Cash at bank and in hand

487,721

421,521

3,221,846

3,377,880

CREDITORS

Amounts falling due within one year

8

1,030,703

1,237,836

NET CURRENT ASSETS

2,191,143

2,140,044

TOTAL ASSETS LESS CURRENT LIABILITIES

5,063,160

4,799,158

CREDITORS

Amounts falling due after more than one year

9

(3,340,839

)

(3,506,484

)

PROVISIONS FOR LIABILITIES

11

(255,177

)

(228,252

)

NET ASSETS

1,467,144

1,064,422

CAPITAL AND RESERVES

Called up share capital

12

100

100

Revaluation reserve

13

1,192,475

1,034,975

Retained earnings

274,569

29,347

SHAREHOLDERS' FUNDS

1,467,144

1,064,422

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and loss account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 27 August 2025 and were signed on its behalf by:

Mr C J Etheridge - Director

1.	STATUTORY INFORMATION

Midbass Distribution Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

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.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

A major part of the company's working capital requirement is provided by a loan from the Director and Shareholder. The Director has confirmed this support will continue for the foreseeable future.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the accruing 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 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 estimates is revised where the revision affects only that period, or in the period or the revision and future periods where the revision affects both current and future periods.

Turnover

Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses reconsider that it is probable will be recovered,

Goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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 10 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 unit may be impaired. If the recoverable amount of the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rate on the basics of the carrying amount of each asset in the unit.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents & trademarks are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property

-

Varying rates on cost

Plant and machinery

-

25% reducing balance

Office equipment

-

25% reducing balance

Motor vehicles

-

10 - 25% reducing balance

Freehold property is recognised at fair value in accordance with the Revaluation model.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Financial instruments

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

Financial instruments are recognised in the company's 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development

Expenditure on research and development is written off in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Foreign currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

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 non-current 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.

Hire purchase and leasing commitments

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 financial 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 relates liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss as to produce a contract periodic rate of interest on the remaining balance of the liability.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 24 (2023 - 23 ) .

4.	INTANGIBLE FIXED ASSETS

Patents &

Goodwill

trademarks

Totals

£

£

£

COST

At 1 January 2024

250,379

94,835

345,214

Additions

-

4,520

4,520

At 31 December 2024

250,379

99,355

349,734

AMORTISATION

At 1 January 2024

250,379

45,374

295,753

Amortisation for year

-

5,141

5,141

At 31 December 2024

250,379

50,515

300,894

NET BOOK VALUE

At 31 December 2024

-

48,840

48,840

At 31 December 2023

-

49,461

49,461

5.	PROPERTY, PLANT AND EQUIPMENT

Improvements

Freehold

to

Plant and

property

property

machinery

£

£

£

COST OR VALUATION

At 1 January 2024

2,225,000

336,774

849,264

Additions

-

9,208

9,459

Disposals

-

-

-

Revaluations

210,000

-

-

At 31 December 2024

2,435,000

345,982

858,723

DEPRECIATION

At 1 January 2024

-

282,518

710,560

Charge for year

-

8,500

35,799

Eliminated on disposal

-

-

-

At 31 December 2024

-

291,018

746,359

NET BOOK VALUE

At 31 December 2024

2,435,000

54,964

112,364

At 31 December 2023

2,225,000

54,256

138,704

Office

Motor

equipment

vehicles

Totals

£

£

£

COST OR VALUATION

At 1 January 2024

128,870

355,834

3,895,742

Additions

4,780

116,174

139,621

Disposals

-

(101,874

)

(101,874

)

Revaluations

-

-

210,000

At 31 December 2024

133,650

370,134

4,143,489

DEPRECIATION

At 1 January 2024

103,498

189,513

1,286,089

Charge for year

5,958

43,664

93,921

Eliminated on disposal

-

(59,698

)

(59,698

)

At 31 December 2024

109,456

173,479

1,320,312

NET BOOK VALUE

At 31 December 2024

24,194

196,655

2,823,177

At 31 December 2023

25,372

166,321

2,609,653

Cost or valuation at 31 December 2024 is represented by:

Improvements

Freehold

to

Plant and

property

property

machinery

£

£

£

Valuation in 2019

1,004,967

-

-

Valuation in 2021

375,000

-

-

Valuation in 2024

210,000

-

-

Cost

845,033

345,982

858,723

2,435,000

345,982

858,723

Office

Motor

equipment

vehicles

Totals

£

£

£

Valuation in 2019

-

-

1,004,967

Valuation in 2021

-

-

375,000

Valuation in 2024

-

-

210,000

Cost

133,650

370,134

2,553,522

133,650

370,134

4,143,489

The freehold property was independently valued on a fair value basis on 4th June 2024 by Lambert Smith Hampton.

6.	INVENTORIES

2024

2023

£

£

Finished goods

1,383,956

1,692,056

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

1,249,510

1,164,115

Other debtors

100,659

100,188

1,350,169

1,264,303

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Bank loans and overdrafts

107,392

217,708

Hire purchase contracts

48,775

47,067

Trade creditors

151,172

384,140

Taxation and social security

51,897

54,297

Other creditors

671,467

534,624

1,030,703

1,237,836

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Bank loans

1,369,302

1,697,022

Hire purchase contracts

76,642

106,234

Other creditors

1,894,895

1,703,228

3,340,839

3,506,484

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

975,567

-

10.	SECURED DEBTS

The following secured debts are included within creditors:

2024

2023

£

£

Bank loans

1,476,694

1,914,730

Hire purchase contracts

125,417

153,301

Other creditors

477,437

413,269

2,079,548

2,481,300

Bank loans and invoice discounting are secured by way of a fixed and floating charge over the company's assets. The invoice discounting liability at the reporting date is included within other creditors and is considered to be payable within one year.

Hire purchase contracts are secured against the assets to which they related to by way of a fixed charge.

11.	PROVISIONS FOR LIABILITIES

2024

2023

£

£

Deferred tax

255,177

228,252

Deferred

tax

£

Balance at 1 January 2024

228,252

Accelerated Capital allowances

(2,973

)

Tax losses

(22,852

)

General provisions

250

Freehold property revaluation

52,500

Balance at 31 December 2024

255,177

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

£

700

Ordinary

£0.10

70

70

300

A Ordinary

£0.10

30

30

100

100

13.

RESERVES

Revaluation

reserve

£

At 1 January 2024

1,034,975

Freehold property revaluation

210,000

Deferred tax

(52,500

)

At 31 December 2024

1,192,475

The property revaluation reserve comprises the cumulative effect of the revaluation of the freehold property which is revalued to fair value at each reporting date.

14.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

At 31st December 2024 there was an outstanding loan owing from a Director to the company of £81,964 (2023: £81,964). The loan is repayable on demand and no interest is charged. The loan balance is included within other debtors as shown in note 7.