Moncaster Wire Products Limited - Accounts to registrar (filleted) - small 23.1.2

REGISTERED NUMBER: 02177443 (England and Wales)

MONCASTER WIRE PRODUCTS LIMITED

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

to

8

DIRECTORS:

S McKeon

Miss S Cavatorta

SECRETARY:

I Goddard

REGISTERED OFFICE:

Cavatorta House

Tattershall Way

Fairfield Industrial Estate

Louth

Lincolnshire

LN11 0YZ

REGISTERED NUMBER:

02177443 (England and Wales)

SENIOR STATUTORY AUDITOR:

Timothy Godson FCA

AUDITORS:

Duncan & Toplis Limited, Statutory Auditor

Oxley House

Lincoln Way

Louth

Lincolnshire

LN11 0LS

BANKERS:

Clydesdale Bank

Mcintosh House

Foxbridge Way

Normanton

West Yorkshire

WF6 1TN

FIXED ASSETS

Tangible assets

4

1,362,218

1,394,335

CURRENT ASSETS

Stocks

3,758,402

1,922,726

Debtors

5

1,350,433

1,412,353

Cash at bank

167,369

106,369

5,276,204

3,441,448

CREDITORS

Amounts falling due within one year

6

1,808,856

905,393

NET CURRENT ASSETS

3,467,348

2,536,055

TOTAL ASSETS LESS CURRENT LIABILITIES

4,829,566

3,930,390

PROVISIONS FOR LIABILITIES

8

41,937

49,747

NET ASSETS

4,787,629

3,880,643

CAPITAL AND RESERVES

Called up share capital

9

631,581

631,581

Retained earnings

4,156,048

3,249,062

SHAREHOLDERS' FUNDS

4,787,629

3,880,643

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 Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 19 May 2023 and were signed on its behalf by:

S McKeon - Director

1.	STATUTORY INFORMATION

Moncaster Wire Products 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

Turnover

Turnover represents amounts charged to customers for goods and services provided during the year, excluding value added tax and trade discounts. Sales are recognised upon delivery to the customer, or upon collection by the customer.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Freehold property

- Straight line over 25 years

Land

- Not depreciated

Property improvements

- Straight line over 10 years

Plant and machinery etc

- at varying rates on cost

Freehold buildings are depreciated to write down the cost less estimated residual value over their remaining useful life by equal annual instalments. Where buildings are maintained to such a standard that their residual value is not less than their cost or valuation, no depreciation is charged.

Stocks

Cost is calculated using an average cost basis.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position 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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

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.

Invoice discounting

The company holds an invoice discounting agreement with a minimum notice period of 6 months to a loan value of 90% of approved receivables. The invoice discounting bank account is recognised in full in these financial statements with the amounts received through the invoice discounting arrangement disclosed under other creditors, where applicable.

Government grants

Government grants relating to revenue expenditure are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 32 (2021 - 33 ) .

4.	TANGIBLE FIXED ASSETS

Improvements

Freehold

to

Plant and

property

property

machinery

£

£

£

COST

At 1 January 2022

1,197,633

171,646

471,172

Additions

-

-

16,300

At 31 December 2022

1,197,633

171,646

487,472

DEPRECIATION

At 1 January 2022

-

107,441

365,680

Charge for year

-

11,220

24,633

At 31 December 2022

-

118,661

390,313

NET BOOK VALUE

At 31 December 2022

1,197,633

52,985

97,159

At 31 December 2021

1,197,633

64,205

105,492

Fixtures

and

Motor

fittings

vehicles

Totals

£

£

£

COST

At 1 January 2022

142,871

55,506

2,038,828

Additions

-

-

16,300

At 31 December 2022

142,871

55,506

2,055,128

DEPRECIATION

At 1 January 2022

141,754

29,618

644,493

Charge for year

324

12,240

48,417

At 31 December 2022

142,078

41,858

692,910

NET BOOK VALUE

At 31 December 2022

793

13,648

1,362,218

At 31 December 2021

1,117

25,888

1,394,335

Included in freehold property is a building at a cost of £1,047,633 (2021: £1,047,633) and land at £150,000 (2021: £150,000). No depreciation has been charged during the year in accordance with the company's accounting policies on page 9.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

1,290,902

1,174,215

Amounts owed by group undertakings

5,564

-

Other debtors

53,967

238,138

1,350,433

1,412,353

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade creditors

92,919

83,691

Amounts owed to group undertakings

1,070,837

159,699

Taxation and social security

484,665

518,339

Other creditors

160,435

143,664

1,808,856

905,393

7.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2022

2021

£

£

Within one year

60,477

58,477

Between one and five years

26,933

51,032

87,410

109,509

8.	PROVISIONS FOR LIABILITIES

2022

2021

£

£

Deferred tax

Accelerated capital allowances

41,937

49,747

Deferred

tax

£

Balance at 1 January 2022

49,747

Movement in the year

(7,810

)

Balance at 31 December 2022

41,937

Deferred tax liability has arisen as a result of accelerated capital allowances and other tax adjustments.

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

631,581

Ordinary

£1

631,581

631,581

During the year ended 31 December 2021 an adjustment has been made to increase the share nominal value to the correct amount of £631,581 and as a result the retained earnings figure has decreased by the same amount. The overall capital and reserves figure remains the same.

10.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Timothy Godson FCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Limited, Statutory Auditor

11.	OTHER FINANCIAL COMMITMENTS

Although the company is based in the UK, it has a significant foreign currency exposure through the purchase and sale of goods in currencies other than Sterling. The company mitigates its exposure to currency fluctuations via hedging and forward contracts wherever appropriate and cost effective.

At 31 December 2022 the company had a commitment in place under a forward exchange contract for £427,533 ($500,000) (2021: Nil) .

12.	RELATED PARTY DISCLOSURES

The following balances and transactions relate to Metallurgica Abruzzese SpA and other companies within the group.

Outstanding

Outstanding

2022

2021

Related party

Relationship

Transaction and amount

£

£

Metallurgica Abruzzese SpA

Parent company

Purchases and interest of £1,513,134 (2021: £957,511)

Nil

Nil

Metallurgica Abruzzese SpA

Parent company

Short term creditors

Nil

21,351

Metallurgica Abruzzese SpA

Parent company

Long term creditors (including loan)

Nil

Nil

Metallurgica Abruzzese SpA

Parent company

Debtors

4,938

Nil

Metallurgica Abruzzese SpA

Parent company

Commissions receivable of £8,636 (2021: £6,049)

Nil

Nil

SC Metallurgica Cavatorta SRL

Fellow subsidiary company

Purchases of £Nil (2021: £Nil)

Nil

Nil

SC Metallurgica Cavatorta SRL

Fellow subsidiary company

Creditors within one year

Nil

Nil

Cavatorta France SAS

Fellow subsidiary company

Purchases and interest of £3,948,163 (2021: £3,605,164)

Nil

Nil

Cavatorta France SAS

Fellow subsidiary company

Short term creditors

1,070,837

138,348

Cavatorta France SAS

Fellow subsidiary company

Debtors

Nil

Nil

Cavatorta France SAS

Fellow subsidiary company

Sales and commissions receivable of £Nil (2021: £Nil)

Nil

Nil

TZ Cavatorta SpA

Fellow subsidiary company

Debtors

626

726

TZ Cavatorta SpA

Fellow subsidiary company

Sales and commissions receivable £3,227 (2021: £9,071)

Nil

Nil

TZ Cavatorta SpA

Fellow subsidiary company

Purchases of £289,552 (2021: £586,776)

Nil

Nil

TZ Cavatorta SpA

Fellow subsidiary company

Short term creditors

Nil

Nil

Aluwire Val Vibrata SRL

Fellow subsidiary company

Purchases of £Nil (2021:£Nil)

Nil

Nil

Aluwire Val Vibrata SRL

Fellow subsidiary company

Short term creditors

Nil

Nil

13.	ULTIMATE CONTROLLING PARTY

The holding of the group is the company I.FI.CO.M S.r.l. with registered office in Montesilvano (PE) - 75 Via Danubio as it holds 78.73% of the share capital of Metallurgica Abruzzese Spa, which in turn controls or is directly connected to all the other companies of the group. In fact, Metallurgica Abruzzese Spa can therefore be considered a sub-holding.

The capital of the company I.FI.CO.M. srl is made up as follows:

Gianluca Cavatorta 40.01%

Giovanni Cavatorta 20.00%

Nicoletta cavatorta 19.99%

Clama srl. 10.00%

Fintrading srl. 10.00%

Metallurgica Abruzzese Spa based in Contrada Marina - Mosciano Sant'Angelo (TE) ITALY - holds 100% of the share capital of Moncaster Wire Products Ltd. based in Louth in the UK. The share capital of Metallurgica Abruzzese Spa is made up as follows:

I.FI.CO.M. Srl 78.73%

Gianluca Cavatorta 5.04%

Giovanni Cavatorta 5.40%

Nicoletta Cavatorta 5.39%

Clama srl 5.44%