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REGISTERED NUMBER:
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 30 JUNE 2019 |
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FOR |
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THE MOUNTAIN BOOT COMPANY LIMITED |
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REGISTERED NUMBER:
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 30 JUNE 2019 |
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FOR |
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THE MOUNTAIN BOOT COMPANY LIMITED |
THE MOUNTAIN BOOT COMPANY LIMITED (REGISTERED NUMBER: 02887906) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2019 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 3 |
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Report of the Independent Auditors | 4 |
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Income Statement | 6 |
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Other Comprehensive Income | 7 |
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Balance Sheet | 8 |
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Statement of Changes in Equity | 9 |
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Cash Flow Statement | 10 |
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Notes to the Cash Flow Statement | 11 |
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Notes to the Financial Statements | 12 |
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THE MOUNTAIN BOOT COMPANY LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2019 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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SENIOR STATUTORY AUDITOR: |
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AUDITORS: |
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Statutory Auditor |
Fernwood House |
Fernwood Road |
Jesmond |
Newcastle upon Tyne |
Tyne and Wear |
NE2 1TJ |
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BANKERS: |
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Floor 3 |
Central Square South |
Orchard Street |
Newcastle upon Tyne |
NE1 3AZ |
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SOLICITORS: |
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Time Central |
32 Gallowgate |
Newcastle upon Tyne |
Tyne and Wear |
NE1 4BF |
THE MOUNTAIN BOOT COMPANY LIMITED (REGISTERED NUMBER: 02887906) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2019 |
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The directors present their strategic report for the year ended 30 June 2019. |
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REVIEW OF BUSINESS |
Turnover was £16.4m, up from £16.0m in the previous year. This was due to strong sales and several new |
brands in the previous year, which have continued to expand. The company achieved planned turnover for |
the year. |
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The gross profit margin was maintained which was pleasing. |
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Stock has decreased from £3.9m at June 2018 to £3.4m at June 2019. The company has reduced stock to |
improve the working capital cycle. Despite this decrease, the company still closely manages stock levels and |
working capital. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The company has an established, structured approach to risk management. |
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The company's activities expose it to a variety of financial risks, including effects of credit, liquidity and cash |
flows, and foreign currency risk. The company has adopted risk management policies that seek to mitigate |
these risks in a cost effective manner. Financial assets that expose the company to financial risk consist |
primarily of trade debtors and cash. Financial liabilities that expose the company to financial risk consist |
primarily of trade creditors, bank loans and inter company loan agreements. |
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CREDIT RISK |
Credit risk is the loss in the value of financial assets due to counterparties failing to meet all or part of their |
obligations. The company performs ongoing credit evaluations of its customer's financial condition. |
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LIQUIDITY RISK |
Liquidity risk is the risk that the company does not have sufficient liquid assets to meet its obligations as they |
fall due. Liquidity is maintained at the prudent level and the company ensures there is an adequate liquidity |
buffer to cover contingencies. The company maintains sufficient cash and credit lines from its bankers to |
meet its funding requirements. |
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FOREIGN CURRENCY RISK |
The company endeavours to mitigate these risks by constantly reviewing product lines and by daily foreign |
currency management, forward buying foreign currency at best possible market rates. |
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ON BEHALF OF THE BOARD: |
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THE MOUNTAIN BOOT COMPANY LIMITED (REGISTERED NUMBER: 02887906) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2019 |
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The directors present their report with the financial statements of the company for the year ended 30 June 2019. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of importing and distributing footwear, |
climbing and outdoor equipment, accessories and apparel. |
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DIVIDENDS |
The total distribution of dividends for the year ended 30 June 2019 will be £
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2018 to the date of this |
report. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial |
statements in accordance with applicable law and regulations. |
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Company law requires the directors to prepare financial statements for each financial year. Under that law |
the directors have elected to prepare the financial statements in accordance with United Kingdom Generally |
Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company |
law the directors must not approve the financial statements unless they are satisfied that they give a true and |
fair view of the state of affairs of the company and of the profit or loss of the company for that period. In |
preparing these financial statements, the directors are required to: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements; |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
company will continue in business. |
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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain |
the company's transactions and disclose with reasonable accuracy at any time the financial position of the |
company and enable them to ensure that the financial statements comply with the Companies Act 2006. They |
are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for |
the prevention and detection of fraud and other irregularities. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the |
Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps |
that he or she ought to have taken as a director in order to make himself or herself aware of any relevant |
audit information and to establish that the company's auditors are aware of that information. |
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AUDITORS |
The auditors, Robson Laidler Accountants Limited, will be proposed for re-appointment at the forthcoming |
Annual General Meeting. |
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ON BEHALF OF THE BOARD: |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
THE MOUNTAIN BOOT COMPANY LIMITED |
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Opinion |
We have audited the financial statements of The Mountain Boot Company Limited (the 'company') for the |
year ended 30 June 2019 which comprise the Income Statement, Other Comprehensive Income, Balance |
Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes |
to the Financial Statements, including a summary of significant accounting policies. The financial reporting |
framework that has been applied in their preparation is applicable law and United Kingdom Accounting |
Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the |
UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
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In our opinion the financial statements: |
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give a true and fair view of the state of the company's affairs as at 30 June 2019 and of its profit for the
year then ended; |
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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. |
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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 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. |
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Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to |
report to you where: |
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the directors' use of the going concern basis of accounting in the preparation of the financial statements is
not appropriate; or |
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the directors have not disclosed in the financial statements any identified material uncertainties that may
cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the |
Strategic Report and the Report of the Directors, but does not include the financial statements and our Report |
of the Auditors thereon. |
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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. |
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In connection with our audit of the financial statements, our responsibility is to read the other information and, |
in doing so, consider whether the other information is materially inconsistent with the financial statements or |
our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such |
material inconsistencies or apparent material misstatements, we are required to determine whether there is a |
material misstatement in the financial statements or a material misstatement of the other information. 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. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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the information given in the Strategic Report and the Report of the Directors for the financial year for which
the financial statements are prepared is consistent with the financial statements; and |
- |
the Strategic Report and the Report of the Directors have been prepared in accordance with applicable
legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
THE MOUNTAIN BOOT COMPANY LIMITED |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of |
the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to |
report to you if, in our opinion: |
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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. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are |
responsible for the preparation of the financial statements and for being satisfied that they give a true and fair |
view, and for such internal control as the directors determine necessary to enable the preparation of financial |
statements that are free from material misstatement, whether due to fraud or error. |
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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. |
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Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free |
from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes |
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit |
conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. |
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, |
they could reasonably be expected to influence the economic decisions of users taken on the basis of these |
financial statements. |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial |
Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our |
Report of the Auditors. |
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Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of |
the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's |
members those matters we are required to state to them in a Report of the Auditors and for no other purpose. |
To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the |
company and the company's members as a body, for our audit work, for this report, or for the opinions we |
have formed. |
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for and on behalf of
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Statutory Auditor |
Fernwood House |
Fernwood Road |
Jesmond |
Newcastle upon Tyne |
Tyne and Wear |
NE2 1TJ |
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THE MOUNTAIN BOOT COMPANY LIMITED (REGISTERED NUMBER: 02887906) |
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INCOME STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2019 |
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2019 | 2018 |
Notes | £ | £ | £ | £ |
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TURNOVER | 4 |
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Cost of sales |
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GROSS PROFIT |
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Distribution costs |
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Administrative expenses |
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2,722,712 | 2,665,083 |
514,358 | 259,648 |
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Other operating income |
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OPERATING PROFIT | 6 |
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Interest receivable and similar income |
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598,240 | 377,169 |
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Interest payable and similar expenses | 7 |
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PROFIT BEFORE TAXATION |
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Tax on profit | 8 | ( |
) |
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PROFIT FOR THE FINANCIAL YEAR |
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THE MOUNTAIN BOOT COMPANY LIMITED (REGISTERED NUMBER: 02887906) |
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OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 JUNE 2019 |
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2019 | 2018 |
Notes | £ | £ |
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PROFIT FOR THE YEAR |
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OTHER COMPREHENSIVE INCOME |
Hedging reserve movement |
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( |
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Income tax relating to other
comprehensive income |
( |
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OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX |
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( |
) |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
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THE MOUNTAIN BOOT COMPANY LIMITED (REGISTERED NUMBER: 02887906) |
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BALANCE SHEET |
30 JUNE 2019 |
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2019 | 2018 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
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CURRENT ASSETS |
Stocks | 11 |
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Debtors | 12 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 13 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
14 |
( |
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( |
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PROVISIONS FOR LIABILITIES | 18 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 19 |
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Share premium | 20 |
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Capital redemption reserve | 20 |
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Other reserves | 20 |
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Retained earnings | 20 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors on
its behalf by: |
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THE MOUNTAIN BOOT COMPANY LIMITED (REGISTERED NUMBER: 02887906) |
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STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2019 |
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Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
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Balance at 1 July 2017 |
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Changes in equity |
Dividends | - | ( |
) | - |
Total comprehensive income | - |
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- |
Balance at 30 June 2018 |
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Changes in equity |
Dividends | - | ( |
) | - |
Total comprehensive income | - |
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- |
Balance at 30 June 2019 |
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Capital |
redemption | Other | Total |
reserve | reserves | equity |
£ | £ | £ |
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Balance at 1 July 2017 |
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Changes in equity |
Dividends | - | - | ( |
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Total comprehensive income |
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( |
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Balance at 30 June 2018 |
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Changes in equity |
Dividends | - | - | ( |
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Total comprehensive income |
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Balance at 30 June 2019 |
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THE MOUNTAIN BOOT COMPANY LIMITED (REGISTERED NUMBER: 02887906) |
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CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2019 |
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2019 | 2018 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
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Interest paid | ( |
) | ( |
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Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
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Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
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Sale of tangible fixed assets |
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Interest received |
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Net cash from investing activities | ( |
) | ( |
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Cash flows from financing activities |
Factoring account movement |
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Loan repayments in year | ( |
) | ( |
) |
Movements attributable to hedging |
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( |
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Equity dividends paid | ( |
) | ( |
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Net cash from financing activities |
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( |
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Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at
beginning of year |
2 |
(1,142,425 |
) |
(833,208 |
) |
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Cash and cash equivalents at end of
year |
2 |
( |
) |
( |
) |
THE MOUNTAIN BOOT COMPANY LIMITED (REGISTERED NUMBER: 02887906) |
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NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2019 |
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1. |
RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS |
2019 | 2018 |
£ | £ |
Profit before taxation |
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Depreciation charges |
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Loss on disposal of fixed assets |
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Finance costs | 109,808 | 96,987 |
Finance income | (153 | ) | (600 | ) |
665,565 | 440,772 |
Decrease/(increase) in stocks |
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( |
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(Increase)/decrease in trade and other debtors | ( |
) |
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(Decrease)/increase in trade and other creditors | ( |
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Cash generated from operations | ( |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in |
respect of these Balance Sheet amounts: |
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Year ended 30 June 2019 |
30.6.19 | 1.7.18 |
£ | £ |
Cash and cash equivalents | 62,223 | 92,396 |
Bank overdrafts | ( |
) | ( |
) |
(1,467,329 | ) | (1,142,425 | ) |
Year ended 30 June 2018 |
30.6.18 | 1.7.17 |
£ | £ |
Cash and cash equivalents | 92,396 | 267,340 |
Bank overdrafts | ( |
) | ( |
) |
(1,142,425 | ) | (833,208 | ) |
THE MOUNTAIN BOOT COMPANY LIMITED (REGISTERED NUMBER: 02887906) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2019 |
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1. | STATUTORY INFORMATION |
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The Mountain Boot Company Limited is a
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and Wales. The company's registered number and registered office address can be found on the |
Company Information page. |
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The presentation currency of the financial statements is the Pound Sterling (£). |
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2. | STATEMENT OF COMPLIANCE |
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3. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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The financial statements have been prepared on a going concern basis on the grounds that current |
and future sources of funding or support will be more than adequate for the company's needs. The |
directors have considered a period of twelve months from the date of approval of the financial |
statements and believe that no further disclosures relating to the company's ability to continue as a |
going concern need to be made in the financial statements. |
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The preparation of the financial statements requires management to make estimates and assumptions |
that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of |
contingent liabilities at the date of the financial statements. If, in the future, such estimates and |
assumptions, which are based on management's best judgement at the date of the financial |
statements, deviate from the actual circumstances, the original estimates and judgements will be |
modified as appropriate in the year in which the circumstances change. |
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The company has applied the following accounting policies: |
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Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 |
'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related |
party transactions with wholly owned subsidiaries within the group. |
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Hedge accounting |
The company designates derivatives which qualify as hedges for accounting purposes as a hedge of |
the cash flow risk resulting from changes in interest rate or foreign exchange rates. The effectiveness |
of the hedge is 100% as all amounts are hedged. Accounting treatment is in line with IAS 39 whereby |
any change in the effective proportion is recognised directly in equity. Amounts accumulated in equity |
are recycled to the income statement in the period when the hedged item affects profit or loss. |
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Turnover |
Turnover represents net invoiced sales of goods, excluding value added tax recognised when goods |
are dispatched to a customer. |
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Tangible fixed assets |
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Long leasehold land and buildings | - |
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Fixtures and fittings | - |
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Motor vehicles | - |
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THE MOUNTAIN BOOT COMPANY LIMITED (REGISTERED NUMBER: 02887906) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2019 |
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3. | ACCOUNTING POLICIES - continued |
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Stocks |
Stock are valued at the lower of cost and net realisable value, after making allowance for obsolete and |
slow moving items. |
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Cost is determined on a first-in first-out (FIFO) basis. Net realisable value is the amount that can be |
realised from the sale of the stock in the normal course of business after allowing for the costs of |
realisation. |
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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. |
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Current or deferred taxation assets and liabilities are not discounted. |
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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. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at |
the balance sheet date. |
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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. |
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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. |
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Foreign currencies |
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. |
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Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the |
period of the lease. |
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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. |
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Impairment of assets |
Property, plant and equipment are reviewed for impairment if events or changes in circumstances |
indicate that the carrying amount of such assets may not be recoverable. If there is an indication of |
possible impairment, the recoverable amount of any affected asset is estimated and compared against |
its carrying amount. Where the estimated recoverable amount is lower, an impairment loss is |
recognised immediately in profit and loss. |
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Short term debtors and creditors |
Debtors and creditors with no interest rate which are receivable or payable within one year are |
recorded at transaction price. Any loss arising from impairment are recognised immediately in profit |
and loss. |
THE MOUNTAIN BOOT COMPANY LIMITED (REGISTERED NUMBER: 02887906) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2019 |
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3. | ACCOUNTING POLICIES - continued |
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Cash and cash equivalents |
Cash and cash equivalents comprises cash in hand and current balances with banks and other |
institutions, which are readily convertible to known amounts of cash and which are subject to |
insignificant risk of change in value. This definition is also used for the cash flow statement. |
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4. | TURNOVER |
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The turnover and profit before taxation are attributable to the one principal activity of the company. |
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An analysis of turnover by geographical market is given below: |
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2019 | 2018 |
£ | £ |
United Kingdom | 16,117,412 | 15,736,721 |
Europe | 232,899 | 307,791 |
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5. | EMPLOYEES AND DIRECTORS |
2019 | 2018 |
£ | £ |
Wages and salaries |
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Social security costs |
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Other pension costs |
|
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The average number of employees during the year was as follows: |
2019 | 2018 |
|
Directors | 2 | 2 |
Administrative staff | 31 | 32 |
|
|
|
2019 | 2018 |
£ | £ |
Directors' remuneration |
|
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Directors' pension contributions to money purchase schemes |
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The number of directors to whom retirement benefits were accruing was as follows: |
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Money purchase schemes |
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THE MOUNTAIN BOOT COMPANY LIMITED (REGISTERED NUMBER: 02887906) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2019 |
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6. | OPERATING PROFIT |
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The operating profit is stated after charging: |
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2019 | 2018 |
£ | £ |
Hire of plant and machinery |
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Depreciation - owned assets |
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Loss on disposal of fixed assets |
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Auditors' remuneration |
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7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2019 | 2018 |
£ | £ |
Bank interest |
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8. | TAXATION |
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Analysis of the tax (credit)/charge |
The tax (credit)/charge on the profit for the year was as follows: |
2019 | 2018 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
|
Adjustments to prior year | (182,268 | ) | - |
Total current tax | ( |
) |
|
|
Deferred tax |
|
|
Tax on profit | ( |
) |
|
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Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The |
difference is explained below: |
|
2019 | 2018 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
|
|
|
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Effects of: |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances |
|
- |
Other adjustments | (365,382 | ) | - |
Deferred tax movement | 6,316 | 16,982 |
Total tax (credit)/charge | (265,900 | ) | 58,029 |
THE MOUNTAIN BOOT COMPANY LIMITED (REGISTERED NUMBER: 02887906) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2019 |
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8. | TAXATION - continued |
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Tax effects relating to effects of other comprehensive income |
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2019 |
Gross | Tax | Net |
£ | £ | £ |
Hedging reserve movement |
|
(3,916 | ) | 14,670 |
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2018 |
Gross | Tax | Net |
£ | £ | £ |
Hedging reserve movement | ( |
) | 25,114 | (122,615 | ) |
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9. | DIVIDENDS |
2019 | 2018 |
£ | £ |
Interim |
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|
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10. | TANGIBLE FIXED ASSETS |
Long |
leasehold | Fixtures |
land and | and | Motor |
buildings | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 July 2018 |
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Additions |
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Disposals | ( |
) | ( |
) |
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( |
) |
At 30 June 2019 |
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DEPRECIATION |
At 1 July 2018 |
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Charge for year |
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Eliminated on disposal | ( |
) | ( |
) |
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( |
) |
At 30 June 2019 |
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NET BOOK VALUE |
At 30 June 2019 |
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At 30 June 2018 |
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11. | STOCKS |
2019 | 2018 |
£ | £ |
Finished goods and goods for |
resale |
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THE MOUNTAIN BOOT COMPANY LIMITED (REGISTERED NUMBER: 02887906) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2019 |
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12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Trade debtors |
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Amounts owed by group undertakings |
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Other debtors |
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Corporation tax |
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Prepayments and accrued income |
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Included in trade debtors are factored debts of £2,456,738 (2018: £1,604,792). |
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13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Bank loans and overdrafts (see note 15) |
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Other loans (see note 15) |
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Trade creditors |
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Amounts owed to group undertakings |
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Corporation tax |
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Social security and other taxes |
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Other creditors |
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Accrued expenses |
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14. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2019 | 2018 |
£ | £ |
Bank loans (see note 15) |
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15. | LOANS |
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An analysis of the maturity of loans is given below: |
|
2019 | 2018 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
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Mortgage | 52,355 | 50,467 |
Other loans |
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Amounts falling due between one and two years: |
Mortgage - 1-2 years | 54,389 | 52,355 |
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Amounts falling due between two and five years: |
Mortgage - 2-5 years | 239,101 | 230,315 |
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Amounts falling due in more than five years: |
THE MOUNTAIN BOOT COMPANY LIMITED (REGISTERED NUMBER: 02887906) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2019 |
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15. | LOANS - continued |
2019 | 2018 |
£ | £ |
Amounts falling due in more than five years: |
Repayable by instalments |
Mortgage more than 5 years by
instalments |
43,169 |
105,534 |
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16. | LEASING AGREEMENTS |
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Minimum lease payments under non-cancellable operating leases fall due as follows: |
2019 | 2018 |
£ | £ |
Within one year |
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Between one and five years |
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17. | SECURED DEBTS |
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The following secured debts are included within creditors: |
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2019 | 2018 |
£ | £ |
Bank overdrafts |
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Other loans |
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Mortgage | 389,014 | 438,671 |
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The company's bank borrowing are secured by a legal charge over the company's properties and a |
fixed and floating charge over the company's assets. |
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The mortgage, which is with HSBC Bank plc, is repayable over ten years and interest is being charged |
at 3.25% plus base rate. |
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Other loans, including hire purchase, are secured on the assets to which the loan relates. |
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18. | PROVISIONS FOR LIABILITIES |
2019 | 2018 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 42,592 | 36,276 |
Deferred taxation - Hedging | 7,185 | 3,269 |
49,777 | 39,545 |
|
Deferred |
tax |
£ |
Balance at 1 July 2018 |
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Movement in year | 10,232 |
Balance at 30 June 2019 |
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THE MOUNTAIN BOOT COMPANY LIMITED (REGISTERED NUMBER: 02887906) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2019 |
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19. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2019 | 2018 |
value: | £ | £ |
|
Ordinary | 1p | 383,000 | 383,000 |
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20. | RESERVES |
Capital |
Retained | Share | redemption | Other |
earnings | premium | reserve | reserves | Totals |
£ | £ | £ | £ | £ |
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At 1 July 2018 |
|
|
|
|
781,281 |
Profit for the year |
|
- | - | - |
|
Dividends | ( |
) | - | - | - | ( |
) |
Hedging reserve | - | - | - | 14,670 | 14,670 |
At 30 June 2019 |
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1,286,683 |
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Purpose of reserves: |
Share premium - records the amount above the nominal value received for shares sold, less |
transaction costs. |
Capital redemption reserve - reserve created from the company's previous reduction in share capital. |
Retained earnings - includes all current and prior period retained profits and losses. |
Other reserve - Hedging reserve represents movement on options to reduce forex risk. |
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21. | PENSION COMMITMENTS |
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The group operates two defined contribution schemes. The assets of the scheme are held separately |
from those of the group in independently administered funds. The pension cost charge represents |
contributions payable by the group to the funds and amounted in the current year to £109,581(2018: |
£110,294). |
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22. | ULTIMATE PARENT COMPANY |
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MBC Summit Holdings Limited is regarded by the directors as being the company's ultimate parent |
company. |
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23. | ULTIMATE CONTROLLING PARTY |
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The ultimate controlling party is
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