MBA Michael Bailey Associates UK Limited
Financial Statements
For the year ended 31 December 2022
Pages for Filing with Registrar
Company Registration No. 04020306 (England and Wales)
MBA Michael Bailey Associates UK Limited
Company Information
Director
M L Garlick
Secretary
S Bahra
Company number
04020306
Registered office
12 Brook House
Chapel Place
Rivington Street
London
EC2A 3SJ
Auditors
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
MBA Michael Bailey Associates UK Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 9
MBA Michael Bailey Associates UK Limited
Balance Sheet
As at 31 December 2022
Page 1
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
5
175,570
136,174
Current assets
Debtors
6
5,324,084
2,833,395
Cash at bank and in hand
18,787
554,524
5,342,871
3,387,919
Creditors: amounts falling due within one year
7
(4,227,939)
(2,554,162)
Net current assets
1,114,932
833,757
Net assets
1,290,502
969,931
Capital and reserves
Called up share capital
8
1
1
Profit and loss reserves
1,290,501
969,930
Total equity
1,290,502
969,931

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and signed by the director and authorised for issue on 12 February 2024
M L Garlick
Director
Company Registration No. 04020306
MBA Michael Bailey Associates UK Limited
Notes to the Financial Statements
For the year ended 31 December 2022
Page 2
1
Accounting policies
Company information

MBA Michael Bailey Associates UK Limited is a private company that is limited by shares that is domiciled and incorporated in England and Wales. The registered office is 12 Brook House, Chapel Place, Rivington Street, London, EC2A 3SJ.

1.1
Accounting convention

These financial statements have been prepared in accordance with Section 1A of 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 on 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:

 

 

1.2
Group accounts

MBA Michael Bailey Associates UK Limited is a wholly owned subsidiary of MBA Michael Bailey Associates Plc. The results of MBA Michael Bailey Associates UK Limited are included in the consolidated financial statements of MBA Holding Company 3 Limited, the ultimate holding company, which are available from 12 Brook House, Chapel Place, Rivington Street, London, EC2A 3SJ.

1.3
Going concern

The financial statements are prepared on a going concern basis which assumes the Company will continue in operational existence for the foreseeable future. The Board are closely monitoring truethe general economic conditions and the impact it will have on the Group in the UK and the other countries it operates within. Despite the challenges presented by the general economic conditions, the Company remains in a sound financial position with strong reserves and strength in its customer base, the directors do not expect the current uncertainty to adversely affect the ability of the Company to continue in operation for at least twelve months from the date of approval of the financial statements and accordingly the financial statements continue to be prepared on the going concern basis.

MBA Michael Bailey Associates UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 3
1.4
Turnover

Turnover represents sales to outside customers at invoiced amounts less value added tax. Income is accrued where the company has the right to consideration for services rendered at the balance sheet date. Turnover is matched to cost of sales and where it is, a mark up of costs are only recognised when the costs are known. Where a set fee is being charged this is recognised in the period the work is done.

1.5
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:

Land and buildings
10% straight line
Plant and machinery
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.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. 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 which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Cash at bank and in hand

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.

MBA Michael Bailey Associates UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 4
1.8
Financial instruments

Basic financial instruments are measured at cost.The company has no other financial instruments or basic financial instruments measured at fair value.

1.9
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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.10
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.

 

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. 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.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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.

1.12
Retirement benefits

The company operates a defined contribution scheme for the benefit of its employees. The assets of the scheme are held separately from the company in independently administered funds. Contributions payable are charged to the profit and loss account in the year they are payable.

MBA Michael Bailey Associates UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
1
Accounting policies
(Continued)
Page 5
1.13
Leases

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.

1.14
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.

1.15
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 director is 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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Useful economic life of assets

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 5 for the carrying amount of the property, plant and equipment and note 1.5 for the useful economic lives for each class of asset.

Cost accruals

The company makes accruals for contractor costs based on an estimated margin as per the agreed contract. These accruals are then reversed once invoices are received and paid.

MBA Michael Bailey Associates UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 6
3
Employees

The average monthly number of persons (including directors) employed by the company during the year was 19 (2021:17).

4
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
75,855
7,459
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2022
237,087
254,301
491,388
Additions
66,038
1,681
67,719
At 31 December 2022
303,125
255,982
559,107
Depreciation and impairment
At 1 January 2022
110,725
244,489
355,214
Depreciation charged in the year
21,026
7,297
28,323
At 31 December 2022
131,751
251,786
383,537
Carrying amount
At 31 December 2022
171,374
4,196
175,570
At 31 December 2021
126,362
9,812
136,174
6
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
3,392,014
2,742,025
Amounts owed by group undertakings
1,829,770
-
0
Other debtors
1,579
15,758
Prepayments and accrued income
100,721
75,612
5,324,084
2,833,395
MBA Michael Bailey Associates UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 7
7
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans and overdrafts
1,330,513
-
0
Trade creditors
1,640,014
1,559,716
Amounts owed to group undertakings
-
0
547,297
Corporation tax
75,855
18,788
Other taxation and social security
211,193
44,127
Other creditors
511,292
304,551
Accruals and deferred income
459,072
79,683
4,227,939
2,554,162
8
Share capital
2022
2021
£
£
Issued and fully paid
1 Ordinary share of £1
1
1
9
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditors' report was unqualified.

Senior Statutory Auditor:
Jamie Sherman
Statutory Auditor:
Moore Kingston Smith LLP
10
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2022
2021
£
£
Within one year
284,434
275,000
Between one and five years
1,117,529
825,000
In over five years
1,026,918
1,576,918
2,428,881
2,676,918
MBA Michael Bailey Associates UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
10
Operating lease commitments
(Continued)
Page 8
MBA Michael Bailey Associates UK Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2022
Page 9
11
Related party transactions

The company has taken advantage of the exemption available in accordance with FRS 102 'Related party disclosures' not to disclose transactions with other companies on the grounds that consolidated financial statements are prepared by the ultimate parent company.

 

During the year the company purchased services in relation to contractors totalling £439,658 (2021: £208,295) from Michael Bailey Associates Pte Limited, a company with a common director. At the year end £43,863 (2021: £26,621) was owed to Michael Bailey Associates Pte Limited.

 

At the year end, an amount of £nil (2021: £90,361) was due to a director.

 

A company within the group has entered into a bank Composite Accounting Agreement with certain other group companies whereby each company has provided a guarantee that enables the bank to set-off interest and debit and credit balances held by each of the companies in certain circumstances.

12
Parent company

The ultimate parent company is MBA Holding Company 3 Limited, a company registered in England and Wales. MBA Holding Company 3 Limited is the parent of the largest group of which the company is a member. MBA Michael Bailey Associates Plc is the parent of the smallest group of which the company is a member and the registered office is 12 Brook House, Chapel Place Rivington Street, London, EC24 3SJ.

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