MSL Property Care Services Limited
Directors' report and financial statements
Registered number 06455736
28 February 2023
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
Contents
Strategic report
1-2
Directors' report
3
Statement of directors' responsibilities in respect of the Strategic Report, the Directors' Report and the financial statements
4
Independent auditor's report to the members of MSL Property Care Services Limited
5-7
Statement of comprehensive income
8
Statement of other comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Cash flow statement
12
Notes
13-21
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
Strategic report
Principal activities
MSL Property Care Services Limited provides a comprehensive property maintenance and care service principally throughout the UK with some activity across Ireland and Europe.
Business review and results
Turnover for the year was
£22,313,017 (2022: £15,952,073) and the operating profit before exceptional items was £1,814,238 (2022: £1,345,668).  The profit before taxation was £1,708,600 (2022: profit £1,337,250).
Key Performance Indicators
The board uses key performance indicators (KPIs) to monitor the Company's performance and development. Those KPIs include:
Turnover
Operating Profit before exceptional items %
Administrative Expenses to turnover %
Cash from operating activities
These KPIs for the financial year were:
Year Ended
Year Ended
28th February
28th February
2023
2022
Turnover
£
           22,313,017
           15,952,073
Operating Profit before exceptional items
%
8.13 %
8.44 %
Administrative Expenses before exceptional items
£
             1,189,603
             1,305,076
Administrative Expenses to turnover
%
5.33 %
8.18 %
Cash from operating activities
£
49,273
(255,135)
Principal risks and uncertainties
The key risks to the Company's profitability continue to include managing service delivery costs and overheads whilst seeking to broaden the company's market range of customers.
In addition, the health & safety of the Company's employees and supply partners together with those of its clients and their customers is a major consideration.
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Registered number 06455736
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
The board has strategies in place to manage these risks.
2
Registered number 06455736
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
Strategic report (continued)
Future prospects
The directors are confident about the long term prospects for the company, which is well established and focused on the reactive markets where quality and service have an intrinsic value.
Careful investment also continues to be made where necessary to support or improve the company's operating efficiency.
The overall qualities of the company's services it provides, together with the strength of relationships with its clients, are expected to provide a similar outcome for the 2023 – 2024 financial year despite the uncertain economic climate leading up to the signing of this report. The forward pipeline is however very strong and the 2023 – 2024 financial year is already looking positive, even taking account of ongoing inflationary pressures and other factors.
By order of the board
J Harrison
Premier House
Director
1 Canal Street
Halifax
HX3 9HT
15 August 2023
3
Registered number 06455736
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
Directors' report
The directors present their directors' report and financial statements for the year ended 28 February 2023.
The Principal Activities, the Performance and Developments during the year, the Future Prospects, The Principal Risks and Uncertainties and the Key Performance Indicators are discussed in detail in the Strategic Review.
Proposed dividend
The directors proposed and made a dividend payment of £nil (2022: £ 100,000).
Directors
The directors who held office during the year were as follows:
J Harrison
G Mountain – resigned 15th June 2023
R Bottomley – resigned 15th June 2023
A Thomson
R Kinnear
JM Johnson
K Foster – resigned 28th February 2023
Disclosure of information to auditor
The directors who held office at the date of approval of this directors' report confirm that, so far as they are each aware, there is no relevant audit information of which the company's auditor is unaware; and each director has taken all the necessary steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
Auditor
Azets Audit Services Limited, trading as Azets Audit Services were appointed as auditor to the company following their acquisition of the trade of Naylors Wintergill Limited, on 01 May 2023.  In accordance with section 485 of the Companies Act 2006, a resolution proposing that they be reappointed as auditor will be put to the members at the next annual general meeting.
By order of the board
J Harrison
Premier House
Director
1 Canal Street
Halifax
HX3 9HT
15 August 2023
4
Registered number 06455736
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF THE STRATEGIC REPORT, THE DIRECTORS' REPORT AND THE FINANCIAL STATEMENTS
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year.  Under that law they have elected to prepare the financial statements in accordance with UK accounting standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.
Under Company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.  In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
assess the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
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 responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.
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Registered number 06455736
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MSL PROPERTY CARE SERVICES LIMITED
Opinion
We have audited the financial statements of MSL Property Care Services Limited (the 'company') for the year ended 28 February 2023 which comprise the profit and loss account, the balance sheet and notes to the financial statements, 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 company's affairs as at 28 February 2023 and of its profit for the year then ended;
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's 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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements ; and
• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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Registered number 06455736
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF MSL PROPERTY CARE SERVICES LIMITED
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 directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
*
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
*
the financial statements are not in agreement with the accounting records and returns; or
*
certain disclosures of directors' remuneration specified by law are not made; or
*
we have not received all the information and explanations we require for our audit; or
*
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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 financial statements.
A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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Registered number 06455736
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF MSL PROPERTY CARE SERVICES LIMITED
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council's website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
*
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
*
Reviewing minutes of meetings of those charged with governance;
*
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
*
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
*
Performing audit work over the risk of management bias and 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 indicators of potential bias.
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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Alison Whalley (Senior Statutory Auditor)
for and on behalf of Azets Audit Services
15 August 2023
Chartered Accountants
Statutory Auditor
Carlton House
Grammar School Street
Bradford
BD1 4NS
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Registered number 06455736
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
Statement of comprehensive income
for the year ended 28 February 2023
Note
2023
2022
£
£
Turnover
22,313,017
15,952,073
Cost of sales
(19,309,176)
(13,340,868)
Gross profit
3,003,841
2,611,205
Administrative expenses
(1,279,523)
(1,305,076)
Other Income – Government JRS
-
39,539
Operating profit before exceptional items
                     2
1,814,238
1,345,668
Exceptional Items
2
(89,920)
-
Operating profit
3
1,724,318
1,345,668
Interest payable and similar charges
Interest received
7
6
(21,939)
6,221
(19,338)
10,920
Profit before taxation
1,708,600
1,337,250
Tax on profit
8
(371,302)
(248,865)
Profit for the financial year
1,337,298
1,088,385
The notes on pages 13 to 22 form part of the financial statements.
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Registered number 06455736
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
Statement of other comprehensive income
for year ended 28 February 2023
2023
2022
£
£
Profit for the year
Other comprehensive income
Tax relating to other comprehensive income
1,337,298
(37,196)
1,088,385
-
Total comprehensive income for the year
1,300,102
1,088,385
The notes on pages 13 to 21 form part of the financial statements.
10
Registered number 06455736
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
Balance sheet
at 28 February 2023
Note
2023
2022
£
£
£
£
Fixed assets
Tangible assets
9
1,122,328
776,173
1,122,328
776,173
Current assets
Stocks and work in progress
10
57,674
27,533
Debtors
11
7,344,021
4,515,037
Cash at bank and in hand
558,814
858,596
7,960,509
_________
5,401,166
_________
Total assets
Creditors: amounts falling due
9,082,837
6,177,339
within one year
12
4,944,403
3,640,381
Current liabilities
4,944,403
3,640,381
Provision for liabilities and charges
Deferred tax liability
13
183,728
________
80,899
________
Total liabilities
   5,128,131
   3,721,280
Net assets
3,954,706
2,456,059
Capital and reserves
Called up equity share capital
14
             100
100
Revaluation reserve
     262,149
103,200
Profit and loss account
3,692,457
2,352,759
Shareholders' funds – equity
3,954,706
2,456,059
The notes on pages 13 to 21 form part of the financial statements.
These financial statements were approved by the board of directors on
15 August 2023
15 August 2023
and were signed on its behalf by:
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Registered number 06455736
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
J Harrison
Director
12
Registered number 06455736
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
Statement of Changes in Equity
for the year ended 28 February 2023
Called up
share capital
Revaluation
Reserve
Statement of comprehensive income
Total shareholder's equity
£
£
£
£
Balance at 1 March 2021
100
105,600
1,361,974
1,467,674
Total comprehensive income for the year
Profit
Dividend
-
-
1,088,385
(100,000)
1,088,385
(100,000)
Transfer from revaluation reserve
-
(2,400)
2,400
-
Balance at 28 February 2022
100
103,200
2,352,759
2,456,059
Called up
share capital
Revaluation
Reserve
Statement of comprehensive income
Total
Equity
£
£
£
£
Balance at 1 March 2022
100
103,200
2,352,759
2,456,059
Total comprehensive income for the year
Profit
Tax relating to other comprehensive income
Transfer to revaluation reserve
-
-
(37,196)
198,545
1,337,298
-
-
1,337,298
(37,196)
198,545
Transfer from revaluation reserve
-
(2,400)
2,400
-
Balance at 28 February 2023
100
262,149
3,692,457
3,954,706
The notes on pages 13 to 21 form part of the financial statements.
13
Registered number 06455736
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
Cash Flow Statement
for the year ended 28 February 2023
Note
2023
2022
£
£
Cash flows from operating activities
Profit for the year
1,337,298
1,088,385
Adjustments for:
Depreciation, amortisation and impairment
3
185,727
141,269
Interest receivable and similar income
6
(6,221)
(10,920)
Interest payable and similar charges
7
21,939
19,338
Taxation
8
371,302
248,865
1,910,045
1,486,937
(Increase) in stocks
(30,141)
(2,641)
(Increase) in trade and other debtors
(2,828,984)
(2,626,539)
Increase in trade and other creditors
1,334,539
1,096,767
385,459
(45,476)
Tax paid
(336,186)
(109,659)
Dividends paid
-
(100,000)
Net cash from operating activities
49,273
(255,135)
Cash flows from investing activities
Acquisition of tangible fixed assets
9
(333,337)
(293,837)
Net cash from investing activities
(333,337)
(293,837)
Cash flows from financing activities
Interest paid
7
(21,939)
(19,338)
Interest received
6
6,221
10,920
Net cash from financing activities
(15,718)
(8,418)
Net decrease in cash and cash equivalents
(299,782)
(557,390)
Cash and cash equivalents at 1 March 2022
858,596
1,415,986
Cash and cash equivalents at 28 February 2023
558,814
858,596
The notes on pages 13 to 21 form part of the financial statements.
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Registered number 06455736
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
Notes
(forming part of the financial statements)
1
Accounting policies
MSL Property Care Services Limited (the “Company”) is a Company limited by shares and incorporated and domiciled in the UK, its registered office is Premier House, 1 Canal Street, Halifax, HX3 9HT.
These financial statements were prepared in accordance with Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (“FRS 102”). The presentation currency of these financial statements is sterling.
The financial statements of the company are consolidated in the financial statements of MSL Property Care Services Holdings Limited. These consolidated financial statements are available from the Registrar of Companies, Companies Registration Office, Crown Way, Maindy, Cardiff, CF14 3UZ.
1.1
Measurement convention
The financial statements are prepared on the historical cost basis except that the following assets and liabilities are stated at their fair value: tangible fixed assets measured at fair value on the date of transition to FRS 102.
1.2
Going concern
With a net current asset position of £3,016,106 (2022: £1,760,785) the financial statements have been prepared on a going concern basis which the Directors consider to be appropriate for the following reasons.
The Directors have considered all of the factors and are confident that the Company has adequate resources to continue to meet all liabilities as and when they fall due for at least 12 months from the date of approval of these financial statements. Accordingly, the financial statements are prepared on a going concern basis.true
1.3
Foreign currency
Transactions in foreign currencies are translated to the Company's functional currency at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign exchange rate ruling at that date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional currency at foreign exchange rates ruling at the dates the fair value was determined. Foreign exchange differences arising on translation are recognised in the profit and loss account.
1.4
Classification of financial instruments issued by the Company
In accordance with FRS 102.22, financial instruments issued by the Company are treated as equity only to the extent that they meet the following two conditions:
(a)
they include no contractual obligations upon the Company to deliver cash or other financial assets or to exchange financial assets or financial liabilities with another party under conditions that are potentially unfavourable to the Company; and
(b)
where the instrument will or may be settled in the Company's own equity instruments, it is either a non-derivative that includes no obligation to deliver a variable number of the Company's own equity instruments or is a derivative that will be settled by the Company's exchanging a fixed amount of cash or other financial assets for a fixed number of its own equity instruments.
To the extent that this definition is not met, the proceeds of issue are classified as a financial liability.  Where the instrument so classified takes the legal form of the Company's own shares, the amounts presented in these financial statements for called up share capital and share premium account exclude amounts in relation to those shares.
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Registered number 06455736
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
Notes (continued)
1
Accounting policies (continued)
1.5
Basic financial instruments
Trade and other debtors / creditors
Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors.  If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of instrument for a similar debt instrument.
Investments
These are separate financial statements of the Company.  Investments in subsidiaries, jointly controlled entities and associates are carried at cost less impairment. Consolidated accounts have not been prepared as the investments are £nil value, do not trade and contain no assets and liabilities.
1.6
Tangible fixed assets
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Certain items of tangible fixed assets that had been revalued to fair value on or prior to the date of transition to FRS 102, are measured on the basis of deemed cost, being the revalued amount at the date of that revaluation.
Depreciation is provided to write off the cost or valuation less the estimated residual value of tangible fixed assets by equal instalments over their estimated useful economic lives as follows:
Fixtures, fittings, tools and equipment                         -
Motor Vehicles
IT Development                                                            -
4 years
4 years
4 years
Freehold buildings
-
50 years
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the first-in first-out principle and includes expenditure incurred in acquiring the stocks, production or conversion costs and other costs in bringing them to their existing location and condition.
1.8
Impairment excluding stocks and deferred tax assets
Financial assets (including trade and other debtors)
A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.
Non-financial assets
The carrying amounts of the Company's non-financial assets, other than stocks and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the “cash-generating unit”). The goodwill acquired in a business combination, for the purpose of impairment testing is allocated to cash-generating units, or (“CGU”) that are expected to benefit from the synergies of the combination. For the purpose of goodwill impairment testing, if goodwill cannot be allocated to individual CGUs or groups of
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Registered number 06455736
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
Notes (continued)
1
Accounting policies (continued)
CGUs on a non-arbitrary basis, the impairment of goodwill is determined using the recoverable amount of the acquired entity in its entirety, or if it has been integrated then the entire entity into which it has been integrated.
An impairment loss is recognised if the carrying amount of an asset or its CGU exceeds its estimated recoverable amount. Impairment losses are recognised in profit or loss.
1.9
Employee benefits
Defined contribution plans and other long term employee benefits
A defined contribution plan is a post-employment benefit plan under which the Company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit and loss account in the periods during which services are rendered by employees.
1.10
Expenses
Operating lease
Payments (excluding costs for services and insurance) made under operating leases are recognised in the profit and loss account on a straight-line basis over the term of the lease unless the payments to the lessor are structured to increase in line with expected general inflation;  in which case the payments related to the structured increases are recognised as incurred. Lease incentives received are recognised in profit and loss over the term of the lease as an integral part of the total lease expense.
Interest receivable and Interest payable
Interest payable and similar charges include interest payable, finance charges on shares classified as liabilities and finance leases recognised in profit or loss using the effective interest method, unwinding of the discount on provisions, and net foreign exchange losses that are recognised in the profit and loss account (see foreign currency accounting policy).
Other interest receivable and similar income include interest receivable on funds invested and net foreign exchange gains.
Interest income and interest payable are recognised in profit or loss as they accrue, using the effective interest method. Dividend income is recognised in the profit and loss account on the date the Company's right to receive payments is established. Foreign currency gains and losses are reported on a net basis.
1.11
Turnover
Turnover represents amounts invoiced by the Company in respect of sales completed during the period, excluding value added tax. Turnover is wholly attributable to the Company's principal activity/services for UK companies with sites both in the UK and Continental Europe.
The turnover attributed to the European sites was £331,031 (2022: £252,083).
17
Registered number 06455736
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
Notes (continued)
1
Accounting policies (continued)
1.12
Taxation
Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.
Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. The following timing differences are not provided for: differences between accumulated depreciation and tax allowances for the cost of a fixed asset if and when all conditions for retaining the tax allowances have been met; and differences relating to investments in subsidiaries to the extent that it is not probable that they will reverse in the foreseeable future and the reporting entity is able to control the reversal of the timing difference.  Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense.
Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the balance sheet date. Deferred tax balances are not discounted.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is it probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
1.13
Government Grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. A grant that specifies performance conditions is recognised in income when the performance conditions are met.  Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
18
Registered number 06455736
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
Notes (continued)
3
Operating profit
2023
2022
£
£
Operating profit is stated after charging:
Depreciation of owned assets
185,727
141,269
Hire of vehicles – operating leases
88,007
74,675
Auditors' remuneration
    Audit of these financial statements
10,500
9,000
    Other services relating to taxation
    Non-audit services
1,250
1,750
750
-
The profit before taxation also included an exceptional charge for company re-organisation charge of £89,920  (2022: £nil).
4
Remuneration of directors
2023
2022
£
£
Directors' emoluments
490,636
452,293
The number of directors in the year was 7 (2022: 7).  Retirement benefits are accruing to 1 (2022: 1) director under money purchase schemes.  Remuneration of the highest paid director was £ 111,822 (2022: £101,435).
5
Staff numbers and costs
The average number of persons employed by the Company (including directors) during the year, analysed by category, was as follows:
            Number of employees
2023
2022
Operations staff
17
13
Sales staff
6
5
Administration staff
55
40
Management staff
5
5
83
63
The aggregate payroll costs of these persons were as follows:
2023
2022
£
£
Wages and salaries
2,504,932
1,871,514
Social security costs
270,617
188,047
Other pension costs
57,578
38,844
2,833,127
2,098,405
19
Registered number 06455736
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
Notes (continued)
6
Interest receivable and similar income
2023
2022
£
£
Interest received
6,221
10,920
7
Interest payable and similar charges
2023
2022
£
£
Bank charges
1,947
1,807
Invoice discount facility charges
19,992
17,531
21,939
19,338
Total interest payable and similar charges
8
Taxation
Analysis of charge in year
2023
2022
£
£
UK corporation tax
Current tax on income for the year
305,669
224,124
Total current tax
305,669
224,124
Deferred tax
Origination/reversal of timing differences
Origination/reversal of change of tax rate
30,465
35,168
24,741
-
Total deferred tax
65,633
24,741
Tax on profit
371,302
248,865
Factors affecting the tax charge for the current year
The current tax charge for the year is higher (2022: higher) than the standard rate of corporation tax in the UK of
19.00% (2022: 19.00%). The differences are explained below.
2023
2022
£
£
Current tax reconciliation
Profit before tax
1,708,600
1,337,250
Current tax at 19.00% (2022: 19.00%)
324,634
254,078
Effects of:
Fixed asset differences
29,943
(32,047)
20
Registered number 06455736
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
Expenses not deductible for tax purposes
Deferred tax
20,285
65,633
2,093
-
Permanent differences
(69,193)
24,741
Total tax charge (see above)
371,302
248,865
21
Registered number 06455736
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
Notes (continued)
8
Taxation (continued)
In addition to the amount charged/​(credited) to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2023
2022
£
£
Deferred tax arising on revaluation of property
37,196
-
37,196
-
9
Tangible fixed assets
Fixtures,
fittings,
Freehold building
IT System Development
Motor Vehicles
tools and equipment
Total
£
£
£
£
£
Cost
At beginning of year
446,657
386,135
53,909
425,926
1,312,627
Additions
Revaluation
-
100,843
98,719
-
-
-
234,618
-
333,337
100,843
Disposals
-
-
-
-
-
_______
_______
At end of year
547,500
484,854
53,909
660,544
1,746,807
Depreciation
At beginning of year
91,624
195,383
21,330
228,117
536,454
Charge for year
Revaluation
6,078
(97,702)
70,568
-
10,554
-
98,527
-
185,727
(97,702)
Disposals
-
-
-
-
-
At end of year
-
265,951
31,884
326,644
624,479
Net book value
At 28 February 2023
547,500
218,903
22,025
333,900
1,122,328
At 28 February 2022
355,033
190,752
32,579
197,809
776,173
The directors had the land and buildings revalued in February 2023 by Malcolm Stuart Property Consultants, who gave a market value of £547,500.  Historical Cost £326,657 (2022: £326,657) and historical accumulated depreciation £97,702 (2022: £91,624)
10
Stocks
2023
2022
£
£
Raw materials and consumables
12,000
12,000
Work in progress
45,674
15,533
57,674
27,533
22
Registered number 06455736
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
Notes (continued)
11
Debtors
2023
2022
£
£
Trade debtors
Associated undertakings
4,528,253
2,674,943
3,332,872
502,896
Other debtors
78,282
635,916
Prepayments and accrued income
62,543
43,353
7,344,021
4,515,037
12
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
Corporation tax payable
3,671,158
193,615
2,613,204
224,132
Other creditors including taxation and social security
712,427
554,386
Accruals and deferred income
367,203
248,659
4,944,403
3,640,381
13
Provision for deferred tax
Deferred
taxation
£
At beginning of year
80,899
    Charge to the profit and loss for the year
65,633
    Charge to the revaluation reserve
37,196
At end of year
183,728
The elements of deferred taxation are as follows:
2023
2022
£
£
Difference between accumulated depreciation and amortisation and capital allowances
146,532
80,899
Other comprehensive income
37,196
-
Undiscounted deferred tax liability
   183,728
   80,899
23
Registered number 06455736
MSL Property Care Services Limited
Directors' report and financial statements
For the year ended 28 February 2023
Notes (continued)
14
Called up share capital
2023
2022
£
£
Allotted, called up and fully paid
100 Ordinary shares of £1 each
100
100
_______
_______
100
100
15
Commitments
Non-cancellable operating lease rentals are payable as follows:
2023
2022
£
£
Vehicles:
Less than one year
54,168
36,606
Between one and five years inclusive
40,154
31,330
More than five years
10,956
18,580
105,278
86,516
Charged in the year £ 77,971 (2022: £67,168)
16
Related party disclosure
The Company traded on normal commercial terms during the year with Pitts Wilson Limited, a Company with a common significant shareholder.  Amounts purchased in the year totalled £6,345 (2022: £8,413) and £nil (2022: £4,303) was payable by the Company at the year end. Amount of sales in the year totalled £3,291 (2022: £4,380) and £280 (2022: £720) was owed to the Company at the year end.
The Company traded with MSL Property Compliance Services Ltd, an inter group company during the year with sales of £849,215 (2022: £502,896) and amounts purchased in the year totalled £nil (2022: £nil). A balance of £324,943 (2022: £502,896) was owed to the Company at the year end.
17
Ultimate parent company
The parent company is MSL Property Care Services Holdings Limited.
The ultimate parent company is MSL Property Services Holdings Limited.
24
Registered number 06455736
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