Company registration number 05997601 (England and Wales)
MCCARTHY MARLAND H2 LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2022
MCCARTHY MARLAND H2 LIMITED
COMPANY INFORMATION
Directors
Mr A Marland
(Appointed 29 July 2022)
K McCarthy
(Appointed 29 July 2022)
Company number
05997601
Registered office
82 St John Street
London
EC1M 4JN
Auditor
Beavis Morgan Audit Ltd
82 St John Street
London
EC1M 4JN
MCCARTHY MARLAND H2 LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 5
Profit and loss account
6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 21
MCCARTHY MARLAND H2 LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 JUNE 2022
- 1 -
The directors present the strategic report for the period ended 30 June 2022.
Principal activities
The principal activity of the company continued to be that of skip hire and waste management.
Fair review of the business
The company generated turnover of £12.5m for the 15 months to June 22, with a reduced gross margin of 29% (2021: 31%). Because of a reduced margin and increased overheads, the company’s profit before tax fell to £693k (2021: £947k).
The Directors have reviewed the company's performance with reference to relevant financial performance indicators and consider it to be satisfactory. The Directors also reviewed the risks and uncertainties faced by the company to enable them to develop strategies that allow the company to continue to develop its business and profitability along similar lines in future.
Principal risks and uncertainties
General economic conditions and market competition are regularly reviewed with the financial requirements and objectives of the company.
The company monitors credit risk closely and considers its current policies meet its objectives of managing exposure to credit risk.
The company monitors its access to bank and other credit facilities in comparison to its outstanding commitments to ensure it has sufficient funds to meet its obligations as they fall due.
Development after the year end
The company was acquired by McCarthy Marland Group at end July, 2022, and its trade, assets and liabilities were transferred up to other McCarthy Marland Group companies at end November, 2022. Since that date, the Company has remained dormant.
Mr A Marland
Director
7 February 2024
MCCARTHY MARLAND H2 LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 JUNE 2022
- 2 -
The directors present their annual report and financial statements for the period ended 30 June 2022.
Results and dividends
The results for the period are set out on page 6.
Ordinary dividends were paid amounting to £500,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Mr A Marland
(Appointed 29 July 2022)
K McCarthy
(Appointed 29 July 2022)
J Burnett
(Resigned 29 July 2022)
M Burnett
(Resigned 29 July 2022)
C Head
(Resigned 29 July 2022)
J Stevenson
(Resigned 29 July 2022)
W Head
(Resigned 29 July 2022)
M Stevenson
(Resigned 29 July 2022)
Future developments
Likely future developments in the business of the company are set out in the strategic report.
Auditor
Beavis Morgan Audit Ltd were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr A Marland
K McCarthy
Director
Director
7 February 2024
MCCARTHY MARLAND H2 LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 30 JUNE 2022
- 3 -
The directors are responsible for preparing the annual 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 the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies 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 company 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
MCCARTHY MARLAND H2 LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MCCARTHY MARLAND H2 LIMITED
- 4 -
Disclaimer of opinion on the financial statements
We were engaged to audit the financial statements of McCarthy Marland H2 Limited (the 'company') for the period ended 30 June 2022 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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).
We do not express an opinion on the accompanying financial statements of the company. Because of the significance of the matter described in the basis for disclaimer of opinion section of the report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.
Basis for disclaimer of opinion
The previous shareholders sold the company on the 29th July 2022. As a result of this sale, and the previous directors of the company resigning, accounting records and documentation relating to the period ended 30 June 2022 have been lost or misplaced. Given this, we have been unable to obtain sufficient appropriate audit evidence to support the results and financial position of the company as presented in the accompanying financial statements.
Opinions on other matters prescribed by the Companies Act 2006
Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have been unable to form an opinion whether:
the information given in the strategic report and the directors' report for the financial period 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.
Matters on which we are required to report by exception
Notwithstanding our disclaimer of an opinion on the financial statement, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit performed subject to pervasive limitation described above, we have not identified material misstatements in the strategic report or the directors' report.
Arising from the limitation of our work referred to above:
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:
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 remuneration specified by law are not made;
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.
MCCARTHY MARLAND H2 LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MCCARTHY MARLAND H2 LIMITED
- 5 -
Auditor's responsibilities for the audit of the financial statements
Our responsibility is to conduct an audit of the company's financial statements in accordance with International Standards on Auditing (UK) and to issue an auditor's report.
However, because of the matter described in the basis for disclaimer of opinion section of our report, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements.
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.
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.
Matthew Burge (Senior Statutory Auditor)
For and on behalf of Beavis Morgan Audit Ltd
8 February 2024
Chartered Accountants
Statutory Auditor
82 St John Street
London
EC1M 4JN
MCCARTHY MARLAND H2 LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 30 JUNE 2022
- 6 -
Period
Year
ended
ended
30 June
31 March
2022
2021
Notes
£
£
Turnover
3
12,527,630
10,183,027
Cost of sales
(8,894,585)
(6,998,566)
Gross profit
3,633,045
3,184,461
Administrative expenses
(2,835,883)
(2,134,680)
Operating profit
4
797,162
1,049,781
Interest receivable and similar income
6
1,135
236
Interest payable and similar expenses
7
(105,614)
(103,474)
Profit before taxation
692,683
946,543
Tax on profit
8
(286,252)
140,417
Profit for the financial period
406,431
1,086,960
The profit and loss account has been prepared on the basis that all operations are continuing operations.
MCCARTHY MARLAND H2 LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2022
- 7 -
Period
Year
ended
ended
30 June
31 March
2022
2021
£
£
Profit for the period
406,431
1,086,960
Other comprehensive income
-
-
Total comprehensive income for the period
406,431
1,086,960
MCCARTHY MARLAND H2 LIMITED
BALANCE SHEET
- 8 -
30 June 2022
31 March 2021
Notes
£
£
£
£
Fixed assets
Goodwill
10
327,433
458,561
Tangible assets
11
5,547,054
6,081,954
Investments
12
30,100
30,100
5,904,587
6,570,615
Current assets
Debtors
14
1,062,900
2,164,795
Cash at bank and in hand
2,524,262
1,572,269
3,587,162
3,737,064
Creditors: amounts falling due within one year
15
(3,807,884)
(2,895,170)
Net current (liabilities)/assets
(220,722)
841,894
Total assets less current liabilities
5,683,865
7,412,509
Creditors: amounts falling due after more than one year
16
(521,190)
(2,273,947)
Provisions for liabilities
Deferred tax liability
19
452,222
334,540
(452,222)
(334,540)
Net assets
4,710,453
4,804,022
Capital and reserves
Called up share capital
21
375
375
Share premium account
50
50
Profit and loss reserves
4,710,028
4,803,597
Total equity
4,710,453
4,804,022
The financial statements were approved by the board of directors and authorised for issue on 7 February 2024 and are signed on its behalf by:
Mr A Marland
K McCarthy
Director
Director
Company registration number 05997601 (England and Wales)
MCCARTHY MARLAND H2 LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2022
- 9 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2020
375
50
4,466,637
4,467,062
Year ended 31 March 2021:
Profit and total comprehensive income for the year
-
-
1,086,960
1,086,960
Dividends
9
-
-
(750,000)
(750,000)
Balance at 31 March 2021
375
50
4,803,597
4,804,022
Period ended 30 June 2022:
Profit and total comprehensive income for the period
-
-
406,431
406,431
Dividends
9
-
-
(500,000)
(500,000)
Balance at 30 June 2022
375
50
4,710,028
4,710,453
MCCARTHY MARLAND H2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2022
- 10 -
1
Accounting policies
Company information
McCarthy Marland H2 Limited is a private company limited by shares incorporated in England and Wales. The registered office is 82 St John Street, London, EC1M 4JN.
1.1
Reporting period
The current accounting period has been lengthened and relates to the period from 1st April 2021 to 30th June 2022. The period was lengthened as the entity was sold in July 2022. This accounting period represents the last set of financial statements whilst the entity was under the control of the previous shareholders.
1.2
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
The financial statements of the company are consolidated in the financial statements of McCarthy Marland H1 Limited. These consolidated financial statements are available from its registered office; 82 St. John Street, London, England, EC1M 4JN.
1.3
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. The turnover shown in the profit and loss account arises from the following activities:
MCCARTHY MARLAND H2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 11 -
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
1% straight line
Plant and equipment
15% and 20% reducing balance and 15% straight line
Motor vehicles
25% and 35% reducing balance and 25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
MCCARTHY MARLAND H2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 12 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
MCCARTHY MARLAND H2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 13 -
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
MCCARTHY MARLAND H2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 14 -
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
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.
3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Waste disposal and reclamation
12,527,630
10,183,027
2022
2021
£
£
Other revenue
Interest income
1,135
236
4
Operating profit
2022
2021
Operating profit for the period is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
12,125
13,680
Depreciation of owned tangible fixed assets
801,683
678,998
(Profit)/loss on disposal of tangible fixed assets
(19,398)
13,794
Amortisation of intangible assets
131,128
104,903
Operating lease charges
531,175
344,796
MCCARTHY MARLAND H2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
- 15 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2022
2021
Number
Number
Production
66
77
Administration and support
15
7
Total
81
84
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
3,112,259
2,410,998
Social security costs
315,179
235,539
Pension costs
124,329
53,706
3,551,767
2,700,243
6
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
118
236
Other interest income
1,017
Total income
1,135
236
7
Interest payable and similar expenses
2022
2021
£
£
Other interest on financial liabilities
62,837
61,472
Interest on finance leases and hire purchase contracts
42,777
42,002
105,614
103,474
8
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
168,570
(193,392)
Adjustments in respect of prior periods
(45,538)
Total current tax
168,570
(238,930)
MCCARTHY MARLAND H2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
8
Taxation
2022
2021
£
£
(Continued)
- 16 -
Deferred tax
Origination and reversal of timing differences
117,682
98,513
Total tax charge/(credit)
286,252
(140,417)
The actual charge/(credit) for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Profit before taxation
692,683
946,543
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
131,610
179,843
Tax effect of expenses that are not deductible in determining taxable profit
41,385
369
Unutilised tax losses carried forward
(610)
Effect of change in corporation tax rate
5,501
Permanent capital allowances in excess of depreciation
(186,010)
Depreciation on assets not qualifying for tax allowances
33,545
30,291
Research and development tax credit
(310,883)
Under/(over) provided in prior years
(45,538)
Deferred tax adjustments in respect of prior years
157,800
Effect of change in deferred tax rate
108,532
Taxation charge/(credit) for the period
286,252
(140,417)
9
Dividends
2022
2021
£
£
Final paid
500,000
750,000
MCCARTHY MARLAND H2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
- 17 -
10
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2021 and 30 June 2022
1,091,628
Amortisation and impairment
At 1 April 2021
633,067
Amortisation charged for the period
131,128
At 30 June 2022
764,195
Carrying amount
At 30 June 2022
327,433
At 31 March 2021
458,561
11
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2021
2,997,192
4,014,674
1,598,291
8,610,157
Additions
68,689
401,132
123,724
593,545
Disposals
(245,217)
(384,860)
(630,077)
Transfers
355,661
476,787
127,668
960,116
At 30 June 2022
3,421,542
4,647,376
1,464,823
9,533,741
Depreciation and impairment
At 1 April 2021
214,798
1,625,486
687,919
2,528,203
Depreciation charged in the period
45,427
514,980
241,276
801,683
Eliminated in respect of disposals
(137,773)
(322,768)
(460,541)
Transfers
354,973
469,597
292,772
1,117,342
At 30 June 2022
615,198
2,472,290
899,199
3,986,687
Carrying amount
At 30 June 2022
2,806,344
2,175,086
565,624
5,547,054
At 31 March 2021
2,782,394
2,389,188
910,372
6,081,954
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2022
2021
£
£
Plant and equipment
501,678
859,286
MCCARTHY MARLAND H2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
- 18 -
12
Fixed asset investments
2022
2021
Notes
£
£
Investments in subsidiaries
13
30,100
30,100
13
Subsidiaries
Details of the company's subsidiaries at 30 June 2022 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Valley Trading Limited
82 St. John Street, London, England, EC1M 4JN
Dormant
Ordinary
100.00
Aasvogel Skip Hire Limited
82 St. John Street, London, England, EC1M 4JN
Dormant
Ordinary
100.00
14
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
820,991
903,120
Corporation tax recoverable
168,251
Amounts owed by group undertakings
591,328
Other debtors
261,585
Prepayments and accrued income
241,909
240,511
1,062,900
2,164,795
15
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Bank loans
17
1,398,919
341,864
Obligations under finance leases
18
368,824
439,075
Trade creditors
561,358
760,522
Amounts owed to group undertakings
780,100
780,101
Corporation tax
170,840
Other taxation and social security
299,647
265,635
Other creditors
4,651
72,977
Accruals and deferred income
223,545
234,996
3,807,884
2,895,170
MCCARTHY MARLAND H2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
- 19 -
16
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Bank loans and overdrafts
17
1,516,842
Obligations under finance leases
18
521,190
757,105
521,190
2,273,947
17
Loans and overdrafts
2022
2021
£
£
Bank loans
1,398,919
1,858,706
Payable within one year
1,398,919
341,864
Payable after one year
1,516,842
The long-term loans are secured by fixed charges over the property owned by the company
The bank loan is denominated in GBP with a nominal interest rate between 3.03% and 4.2%. The loans were settled in full post year-end, in July 2022.
18
Finance lease obligations
2022
2021
Future minimum lease payments due under finance leases:
£
£
Within one year
368,824
439,075
In two to five years
521,190
757,105
890,014
1,196,180
Finance lease liabilities are denominated in GBP with a nominal interest rate of between 2.40% and 7.35%, and the final instalment is due in November 2025.
MCCARTHY MARLAND H2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
- 20 -
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
453,402
334,540
Other short term timing differences
(1,180)
-
452,222
334,540
2022
Movements in the period:
£
Liability at 1 April 2021
334,540
Charge to profit or loss
117,682
Liability at 30 June 2022
452,222
Deferred tax is provided in full without discounting on all tax deferred resulting from reversing timing differences at the rate of corporation tax anticipated to apply at the time of future reversal of the timing difference. Deferred tax liabilities are expected to reverse within the next 12 months. The future rate of corporation tax applied to timing differences is 25%.
20
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
124,329
53,706
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
At the balance sheet date, the company owed £10,712 (2021: £27,289) to the scheme.
21
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each of 0p each
375
375
375
375
MCCARTHY MARLAND H2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
- 21 -
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2022
2021
£
£
Within one year
203,960
203,960
Between two and five years
205,650
409,610
409,610
613,570
23
Events after the reporting date
On the 29th July 2022, the entire share capital of McCarthy Marland H1 Limited, the entities immediate parent company, was acquired by McCarthy Marland Limited for total consideration of approximately £10.7m.
24
Related party transactions
Balances with companies controlled by the company are disclosed within debtors and creditors notes. Advantage has been taken of the exemption with section 33 of FRS 102 not to disclose transactions with wholly-owned subsidiary undertakings.
25
Ultimate controlling party
During the financial period, there was no single ultimate controlling party.
The immediate parent company, McCarthy Marland H1 Limited, is the smallest and largest group for which group financial statements are prepared which are available to the public at its registered address; 82 St. John Street, London, England, EC1M 4JN.
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