ACCOUNTS - Final Accounts

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

MALDON CRYSTAL SALT COMPANY LIMITED - Company Information

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Registered number: 00214494

MALDON CRYSTAL SALT COMPANY LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

MALDON CRYSTAL SALT COMPANY LIMITED

COMPANY INFORMATION

Directors	S J Osborne
	D C Coubrough
	C C Osborne
	L M Coubrough
	M N Soudah
	P A J Latham


Company secretary	D C Coubrough


Registered number	00214494


Registered office	Wycke Hill Business Park
	Maldon
	Essex
	CM9 6UZ


Independent auditor	MHA
	910 The Crescent
	Colchester Business Park
	Colchester
	Essex
	CO4 9YQ

MALDON CRYSTAL SALT COMPANY LIMITED

CONTENTS

	Page
Group Strategic Report	1 - 2
Directors' Report	3 - 4
Independent Auditor's Report	5 - 8
Consolidated Statement of Comprehensive Income	9
Consolidated Balance Sheet	10
Company Balance Sheet	11
Consolidated Statement of Changes in Equity	12
Company Statement of Changes in Equity	13
Consolidated Statement of Cash Flows	14
Notes to the Financial Statements	15 - 29

MALDON CRYSTAL SALT COMPANY LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 MARCH 2023

Introduction

The Directors have pleasure in presenting their report and the financial statements of the Group for the year ended 31 March 2023.

Principal activity and business review

The Group's principal activity is the manufacture and distribution of salt.
The results for the year ended 31 March 2023 were pleasing despite the challenges of the current economic climate.
The Group maintains strong internal and external contacts with customers, suppliers and the employees. The Directors remain focussed on producing and marketing leading specialist brands in packaged salt, distributing in both the UK and overseas markets.
The Directors remain optimistic of the continued success of the business which will be driven by maintaining a high-quality product and expansion of both the domestic and export markets. This will be achieved by remaining true to the business' core values.
The Directors are of the opinion that the Group is in a strong position to meet any challenges in the future.

Principal risks and uncertainties

The Directors remain alert to the risks prevalent in a commercial environment and continue to take steps to minimise and mitigate these risks.
Cost of living
The increases in cost of living are a risk that must be managed as it is does pose a threat to the costs of the Group. The Group strives to ensure staff are paid a fair wage and that costs must be managed to ensure this can be continued. However, the Directors do not believe the risk is significant enough to impact the going concern of the Group.

Financial key performance indicators

The Directors continue to use both financial and non financial key performance indicators to manage the business. The business maintains a strong management information function which focuses on regular and accurate reporting. The financial key performance indicators reported on are:

The above demonstrates the encouraging performance in the year with double digit percentage growth in annualised turnover, whilst maintaining gross profit margin in a demanding economic environment.

Page 1

MALDON CRYSTAL SALT COMPANY LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

Other key performance indicators

Alongside the financial key performance indicators the Directors continue to develop additional non financial key performance indicators that underpin the objectives of the Group.

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

................................................

D C Coubrough

Director

Date: 26 September 2023

Page 2

MALDON CRYSTAL SALT COMPANY LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 MARCH 2023

The Directors present their report and the financial statements for the year ended 31 March 2023.

Directors' responsibilities statement

The Directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

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

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

∙make judgements 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 Group 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 the Group and to 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 the Group 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 £9,104k (2022 - £8,938k).

Dividends of £525k (2022 - £6,265k) were declared and paid during the year.

Directors

The Directors who served during the year were:

S J Osborne

D C Coubrough

C C Osborne

L M Coubrough

M N Soudah

P A J Latham

Matters covered in the Strategic Report

In accordance with Section 414c (11) of the Companies Act 2006, the Directors have chosen to include the following items in the Strategic Report:

∙Business review

∙Principal risks and uncertainties

∙Future developments

Page 3

MALDON CRYSTAL SALT COMPANY LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

Disclosure of information to auditor

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 and the Group's auditor is 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 and the Group's auditor is aware of that information.

Auditor

Following a rebranding exercise on 15 May 2023 the trading name of the Company’s independent auditor changed from MHA MacIntyre Hudson to MHA. The auditor, MHA, will 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.

................................................

D C Coubrough

Director

Date: 26 September 2023

Page 4

MALDON CRYSTAL SALT COMPANY LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MALDON CRYSTAL SALT COMPANY LIMITED

Opinion

We have audited the financial statements of Maldon Crystal Salt Company Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2023, which comprise the Group Statement of Comprehensive Income, the Group and Company Balance Sheets, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity and the related notes, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 March 2023 and of the Group's profit for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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 Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Page 5

MALDON CRYSTAL SALT COMPANY LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MALDON CRYSTAL SALT COMPANY LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The Directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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 Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

∙adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

∙the parent Company financial statements are not in agreement with the accounting records and returns; or

∙certain disclosures of Directors' remuneration specified by law are not made; or

∙we have not received all the information and explanations we require for our audit.

Page 6

MALDON CRYSTAL SALT COMPANY LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MALDON CRYSTAL SALT COMPANY 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 Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group 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:

∙Enquiry of management around actual and potential litigation and claims;

∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;

∙Reviewing minutes of meetings of those charged with governance; and

∙Reviewing financial statement disclosures and testing to supporting documentation to asses compliance with applicable laws and regulations.

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 Auditor's Report.

Page 7

MALDON CRYSTAL SALT COMPANY LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MALDON CRYSTAL SALT COMPANY LIMITED (CONTINUED)

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 an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Mike Kay BSc FCA CF (Senior Statutory Auditor)

for and on behalf of

MHA

Statutory Auditor
Colchester, United Kingdom

12 October 2023
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).

Page 8

MALDON CRYSTAL SALT COMPANY LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2023

		As restated
	2023	2022
Note	£000	£000


Turnover	4	30,068	26,672
Cost of sales		(7,648)	(6,352)
Gross profit		22,420	20,320
Distribution costs		(2,358)	(2,278)
Administrative expenses		(8,774)	(7,562)
Operating profit	5	11,288	10,480
Interest receivable and similar income		47	1
Profit before tax		11,335	10,481
Tax on profit	9	(2,231)	(1,543)
Profit for the financial year		9,104	8,938

Other comprehensive income for the year
Foreign exchange differences on translation of foreign subsidiaries	(1)	-
Other comprehensive income for the year	(1)	-

Total comprehensive income for the year	9,103	8,938

Profit for the year attributable to:
Owners of the parent company	9,104	8,938
	9,104	8,938

The notes on pages 15 to 29 form part of these financial statements.

Page 9

MALDON CRYSTAL SALT COMPANY LIMITED

REGISTERED NUMBER: 00214494

CONSOLIDATED BALANCE SHEET

AS AT 31 MARCH 2023

	2023	2023	2022	2022
Note	£000	£000	£000	£000

Fixed assets
Tangible assets	11		15,223		11,293
Current assets
Stocks	12	2,163		1,259
Debtors: Amounts falling due within one year	13	5,948		4,374
Cash at bank and in hand	14	7,013		3,723
		15,124		9,356
Creditors: Amounts falling due within one year	15	(2,600)		(2,244)
Net current assets			12,524		7,112
Total assets less current liabilities			27,747		18,405
Provisions for liabilities
Deferred tax			(1,844)		(1,080)
Net assets			25,903		17,325

Capital and reserves
Called up share capital	17	15	15
Share premium account	18	1,205	1,205
Foreign exchange reserve	18	(1)	-
Profit and loss account	18	24,684	16,105
		25,903	17,325

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

................................................ S J Osborne	................................................ D C Coubrough
Director	Director
Date: 26 September 2023

The notes on pages 15 to 29 form part of these financial statements.

Page 10

MALDON CRYSTAL SALT COMPANY LIMITED

REGISTERED NUMBER: 00214494

COMPANY BALANCE SHEET

AS AT 31 MARCH 2023

	2023	2023	2022	2022
Note	£000	£000	£000	£000

Fixed assets
Tangible assets	11		15,223		11,293
Current assets
Stocks	12	2,163		1,259
Debtors: Amounts falling due within one year	13	6,005		4,374
Cash at bank and in hand	14	7,006		3,723
		15,174		9,356
Creditors: Amounts falling due within one year	15	(2,600)		(2,244)
Net current assets			12,574		7,112
Total assets less current liabilities			27,797		18,405

Provisions for liabilities
Deferred taxation	16		(1,844)		(1,080)
Net assets			25,953		17,325

Capital and reserves
Called up share capital	17	15	15
Share premium account	18	1,205	1,205
Profit and loss account		24,733	16,105
		25,953	17,325

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

................................................ S J Osborne	................................................ D C Coubrough
Director	Director
Date: 26 September 2023

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the Parent Company for the year was £9,204k (2022 - £8,938k).
The notes on pages 15 to 29 form part of these financial statements.

Page 11

MALDON CRYSTAL SALT COMPANY LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2023

	Called up share capital	Share premium account	Foreign exchange reserve	Profit and loss account	Total equity attributable to owners of parent Company
	£000	£000	£000	£000	£000
At 1 April 2021	15	1,205	-	13,432	14,652
Comprehensive income for the year
Profit for the year	-	-	-	8,938	8,938
Transactions with owners
Dividends: Equity capital	-	-	-	(6,265)	(6,265)

At 1 April 2022	15	1,205	-	16,105	17,325
Comprehensive income for the year
Profit for the year	-	-	-	9,104	9,104
Foreign exchange differences on translation of foreign subsidiaries	-	-	(1)	-	(1)
Transactions with owners
Dividends: Equity capital	-	-	-	(525)	(525)
At 31 March 2023	15	1,205	(1)	24,684	25,903

The notes on pages 15 to 29 form part of these financial statements.

Page 12

MALDON CRYSTAL SALT COMPANY LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2023

	Called up share capital	Share premium account	Profit and loss account	Total equity
	£000	£000	£000	£000
At 1 April 2021	15	1,205	13,432	14,652
Comprehensive income for the year
Profit for the year	-	-	8,938	8,938
Transactions with owners
Dividends: Equity capital	-	-	(6,265)	(6,265)

At 1 April 2022	15	1,205	16,105	17,325
Comprehensive income for the year
Profit for the year	-	-	9,153	9,153
Transactions with owners
Dividends: Equity capital	-	-	(525)	(525)
At 31 March 2023	15	1,205	24,733	25,953

The notes on pages 15 to 29 form part of these financial statements.

Page 13

MALDON CRYSTAL SALT COMPANY LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2023

				2023	2022
			Note	£000	£000

Cash flows from operating activities
Profit for the financial year		9,104	8,938
Adjustments for:
Depreciation of tangible assets	11	817	815
Loss on disposal of tangible assets	5	(43)	(9)
Interest received		(47)	(1)
Taxation charge	9	2,231	1,543
(Increase) in stocks	12	(904)	(98)
(Increase) in debtors	13	(1,574)	(922)
Increase/(decrease) in creditors	15	708	(191)
Corporation tax (paid)		(1,819)	(789)
Foreign exchange differences		(1)	-
Net cash generated from operating activities		8,472	9,286

Cash flows from investing activities
Purchase of tangible fixed assets	11	(4,868)	(3,948)
Proceeds on sale of tangible fixed assets		164	40
Interest received		47	1
Net cash from investing activities		(4,657)	(3,907)
Cash flows from financing activities
Dividends paid		(525)	(6,265)
Net cash used in financing activities		(525)	(6,265)
Net increase/(decrease) in cash and cash equivalents		3,290	(886)
Cash and cash equivalents at beginning of year		3,723	4,609
Cash and cash equivalents at the end of year		7,013	3,723

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	14	7,013	3,723

The notes on pages 15 to 29 form part of these financial statements.

Page 14

MALDON CRYSTAL SALT COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

1.	General information

Maldon Crystal Salt Company Limited is a private company limited by shares incorporated in England and Wales. The Company registration number is 00214494. The registered office and principal place of business is Wycke Hill Business Park, Maldon, Essex, CM9 6UZ.

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 financial statements are rounded to the nearest thousand (£'000).

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

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

2.3

Going concern

The Directors consider that the Company has sufficient liquid resources, shareholder support and access to future resources to enable the Company to cover its costs and pay its liabilities for the next 12 months from the date of approval of these financial statements.
Consequently, the Directors have concluded that there are no material uncertainties that may cast significant doubt about the Company’s ability to continue as a going concern for the next 12 months from the date of approval of these financial statements. Accordingly, the going concern basis has been adopted in preparing the financial statements.

Page 15

MALDON CRYSTAL SALT COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is Pound Sterling.

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.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

2.5

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and the turnover can be reliably measured. Turnover 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 turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Group has transferred the significant risks and rewards of ownership to the buyer;

∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of turnover can be measured reliably;

∙it is probable that the Group 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.

Page 16

MALDON CRYSTAL SALT COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

2.6

Operating leases: the Group as lessee

Operating leases are those leases where the Company has use of an asset but where the significant risks and rewards of ownership remain with the lessor and the lease term is not expected to be a significant portion of the useful life of the asset.
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.8

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

2.9

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 Balance Sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet 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;

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and

∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Page 17

MALDON CRYSTAL SALT COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

2.9

Taxation (continued)

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 Balance Sheet date.

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.

Assets under construction are accounted for at cost, based on the value of certificates and other direct costs incurred to 31 March. They are not depreciated until the accounting period in which they are brought into use.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

				Freehold property	-	3% - 5% straight line
				Fixtures and fittings	-	3% - 25% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

Page 18

MALDON CRYSTAL SALT COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

2.12

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 Balance Sheet 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.

2.13

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.

2.14

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 Consolidated 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 Group's cash management.

2.15

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.

2.16

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

2.17

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income.

Page 19

MALDON CRYSTAL SALT COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

2.17

Financial instruments (continued)

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the Balance Sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

2.18

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.

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are set out below:

3.1 Turnover recognition

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. This is when the Group has transferred the significant risks and rewards of ownership to the buyer upon the goods leaving the Group's premises. Although this is not considered to be a complex judgment for the Group, revenue recognition is still considered to be a critical accounting policy.

3.2 Stocks

Stocks are stated at the lower of cost and net realisable value. The Directors assess the net realisable value as being the 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. The valuation of stocks is critical to the production of the financial statements. Judgement is required in determining the costing for the stock items and therefore ensuring the stocks are valued correctly.

Page 20

MALDON CRYSTAL SALT COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

Specialised packaged salt	30,068	26,672
	30,068	26,672

Analysis of turnover by country of destination:

					2023	2022
					£000	£000

United Kingdom	11,407	10,414
Rest of Europe	8,793	8,938
Rest of the World	9,868	7,320
	30,068	26,672

Profit on disposal of tangible fixed assets	(43)	(9)
Exchange differences	(73)	(19)
Depreciation charge	817	815

Page 21

MALDON CRYSTAL SALT COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

6.	Auditor's remuneration
		2023	2022
		£000	£000

Fees payable to the Group's auditor for the audit of the Group's annual financial statements

Fees payable to the Group's auditor in respect of:
Taxation compliance services	2	2
Other services relating to taxation	1	-
Payroll administration	6	6
All other services	5	2
	14	10

7.	Employees
	Staff costs, including Directors' remuneration, were as follows:

		Group	Group
		2023	2022
		£000	£000


Wages and salaries	6,789	5,952
Social security costs	867	723
Cost of defined contribution scheme	105	69
	7,761	6,744

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

	2023	2022
	No.	No.

Employees	87	66

Page 22

MALDON CRYSTAL SALT COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

8.	Directors' remuneration
		2023	2022
		£000	£000

Directors' emoluments	3,610	3,445
	3,610	3,445

	The highest paid Director received remuneration of £3,487k (2022 - £3,408k).
	The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £NIL (2022 - £NIL).

Corporation tax
Current tax on profits for the year	1,708	1,614
Adjustments in respect of previous periods	(241)	(701)

Total current tax	1,467	913

Deferred tax
Origination and reversal of timing differences	403	337
Adjustment in respect of prior periods	234	117
Effect of tax rate change on opening balance	127	176
Total deferred tax	764	630


	Taxation on profit on ordinary activities	2,231	1,543

Page 23

MALDON CRYSTAL SALT COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

9.Taxation (continued)

Profit on ordinary activities before tax

11,335

10,481

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)	2,154	1,989
Effects of:
Expenses not deductible for tax purposes	27	-
Fixed asset differences	(70)	32
Other tax adjustments, reliefs and transfers	-	11
Additional deduction for R&D expenditure	-	(161)
Adjustments to tax charge in respect of prior periods - deferred tax	234	117
Remeasurement of deferred tax for changes in tax rates	127	256
Adjustment to tax charge in respect of previous periods	(241)	(701)
Total tax charge for the year	2,231	1,543

An increase in the UK corporation tax rate from 19% to 25% was substantively enacted in June 2021 and will take effect from 1 April 2023 for profits over £250,000.

10.	Dividends
		2023	2022
		£000	£000

Ordinary A
Dividends paid	226	2,710
Ordinary B
Dividends paid	226	2,710
Ordinary C
Dividends paid	73	845
	525	6,265

The dividends paid amounted to £35 (2022 - £417.67) per share.

Page 24

MALDON CRYSTAL SALT COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

11.	Tangible fixed assets
	Group and Company

	Freehold property	Fixtures and fittings	Assets under construction	Total
	£000	£000	£000	£000
Cost
At 1 April 2022	10,241	5,427	-	15,668
Additions	2,757	1,865	246	4,868
Disposals	-	(220)	-	(220)
Transfers between classes	(87)	-	87	-
At 31 March 2023	12,911	7,072	333	20,316
Depreciation
At 1 April 2022	1,996	2,379	-	4,375
Charge for the year on owned assets	323	494	-	817
Disposals	-	(99)	-	(99)
At 31 March 2023	2,319	2,774	-	5,093
Net book value
At 31 March 2023	10,592	4,298	333	15,223
At 31 March 2022	8,245	3,048	-	11,293

12.	Stocks
		Group	Group	Company	Company
		2023	2022	2023	2022
		£000	£000	£000	£000

Salt and related products	2,163	1,259	2,163	1,259
	2,163	1,259	2,163	1,259

The difference between purchase price or production cost of stocks and their replacement cost is not material.

Page 25

MALDON CRYSTAL SALT COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

13.	Debtors: Amounts falling due within one year

Group	Group	Company	Company
2023	2022	2023	2022
£000	£000	£000	£000


Trade debtors	3,857	3,629	3,857	3,629
Amounts owed by group undertakings	-	-	89	-
Other debtors	1,203	477	1,189	477
Prepayments and accrued income	888	268	870	268
	5,948	4,374	6,005	4,374

14.	Cash and cash equivalents
		Group	Group	Company	Company
		2023	2022	2023	2022
		£000	£000	£000	£000

Cash at bank and in hand	7,013	3,723	7,006	3,723
	7,013	3,723	7,006	3,723

15.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2023	2022	2023	2022
		£000	£000	£000	£000

Trade creditors	1,321	1,404	1,321	1,404
Corporation tax	111	463	111	463
Other taxation and social security	613	308	613	308
Other creditors	15	10	15	10
Accruals and deferred income	540	59	540	59
	2,600	2,244	2,600	2,244

Page 26

MALDON CRYSTAL SALT COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

16.	Deferred taxation
	Group and Company

	2023	2022
	£000	£000

Deferred tax liability at 1 April	1,080	450
Charged to profit or loss	764	630
Deferred tax liability at 31 March	1,844	1,080

Group	Group	Company	Company
2023	2022	2023	2022
£000	£000	£000	£000

Fixed asset timing differences	1,847	1,080	1,847	1,080
Short term timing differences	(3)	-	(3)	-
	1,844	1,080	1,844	1,080

17.	Share capital
		2023	2022
		£	£

Allotted, called up and fully paid

6,468 (2022 - 6,468) Ordinary A shares of £1.00 each	6,468	6,468
6,468 (2022 - 6,468) Ordinary B shares of £1.00 each	6,468	6,468
1,035 (2022 - 1,035) Ordinary C shares of £1.00 each	1,035	1,035

	13,971	13,971

Allotted, called up and partly paid

1,029 (2022 - 1,029) Ordinary C shares of £1.00 each	1,029	1,029

The 'A' and 'B' shares confer identical rights on the Shareholders except with respect of the appointment and removal of Directors. The Board of Directors consists of three 'A' Directors and three 'B' Directors. Appointment and removal of a class Director is limited to the Shareholders of the class only. The 'C' shares have no right to vote and accrue dividend rights subject to the satisfaction of performance targets.

Page 27

MALDON CRYSTAL SALT COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

18.

Reserves

Share premium account

The share premium account is non-distributable and represents the accumulated premium over nominal value on the issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.

Foreign exchange reserve

The foreign exchange reserve represents the accumulation of non-distributable unrealised foreign exchange differences arising from the consolidation of foreign subsidiaries.

Profit and loss account

The profit and loss account represents the accumulation of retained profits, net of dividends, which are in the form of distributable reserves.

19.	Analysis of net debt

		At 1 April 2022	Cash flows	At 31 March 2023
		£000	£000	£000

	Cash at bank and in hand	3,723	3,290	7,013
		3,723	3,290	7,013

20.	Pension commitments

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £105k (2022 - £69k). Contributions totalling £15k (2022 - £10k) were payable to the fund at the Balance Sheet date and are included in other creditors.

21.	Commitments under operating leases
	At 31 March 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
		Group	Group	Company	Company
		2023	2022	2023	2022
		£000	£000	£000	£000

Not later than 1 year	48	35	48	35
Later than 1 year and not later than 5 years	98	103	98	103
	146	138	146	138

Page 28

MALDON CRYSTAL SALT COMPANY LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

22.

Related party transactions

Key Management Personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any Director (whether executive or otherwise) of that entity. There is no difference between Key Management Personnel and the Directors, as such the Company has taken advantage of the exemption in Section 33.7A under FRS 102 not to disclose remuneration of Key Management Personnel.
D C Coubrough is a Director of The Royal Academy of Culinary Arts Limited. During the year, the Group made purchases of £10,500 (2022 - £NIL) from The Royal Academy of Culinary Arts Limited. There was no balance payable at the year end (2022 - £NIL).

23.	Controlling party

There was no ultimate controlling party during the current or previous year.

24.	Prior year adjustment

The results for the year ended 31 March 2022 have been adjusted to better reflect the split of payroll costs. Consequently, cost of sales have decreased by £1,609k and administrative expenses have increased by an equal amount.

25.	Subsidiary undertaking
	Subsidiary undertaking
	The following was a subsidiary undertaking of the Company:
	Name	Registered office	Class of shares	Holding

Maldon Crystal Salt B.V.

Herikerbergweg 238, 1101CM, Amsterdam, Netherlands

Ordinary

100%

	The aggregate of the share capital and reserves as at 31 March 2023 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:
	Name	Aggregate of share capital and reserves £000	Profit/(Loss) £000

Maldon Crystal Salt B.V.

Page 29