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Registration number: 05713938

Musgrave Holdings Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 30 June 2023

 

Musgrave Holdings Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 10

Consolidated Profit and Loss Account

11

Consolidated Statement of Comprehensive Income

12

Consolidated Balance Sheet

13

Balance Sheet

14

Consolidated Statement of Changes in Equity

15

Statement of Changes in Equity

16

Consolidated Statement of Cash Flows

17

Statement of Cash Flows

18

Notes to the Financial Statements

19 to 48

 

Musgrave Holdings Limited

Company Information

Directors

Mr James Michael Salisbury

Mr Robert John Salisbury

Mr Michael James Richards

Registered office

Westley Group Limited
Doulton Road
Cradley Heath
West Midlands
B64 5QS

Bankers

HSBC UK Bank Plc
1 Centenary Square
Birmingham
B1 1HQ

Auditors

Walker Hubble
5 Parsons Street
Dudley
West Midlands
DY1 1JJ

 

Musgrave Holdings Limited

Strategic Report for the Year Ended 30 June 2023

The directors present their strategic report for the year ended 30 June 2023.

Principal activity

The principal activity of the Company continues to be that of a holding company which manages and co-ordinates the business activities of Westley Group Limited together with the provision of consulting services to the engineering sector.

Fair review of the business

The year ending 30 June 2023 was another pleasing year for the Group, with the consolidated businesses generating an EBITDA of £4.7m, an increase of £1.7m compared to the prior financial year. The Group’s revenue grew by 10% compared to the prior year, which was a 26% increase on the 2021 year-end. A portion of this increased revenue is attributable to price inflation necessary to recover increasing costs, notably energy costs which more than doubled compared to the prior year.

Export revenue grew by almost 50% as the global economy returned to some form of normality following the lockdowns imposed during the Covid-19 pandemic. This was a welcome improvement in activity particularly as the Group experienced a slight fall (2%) in UK revenue as delays to the production release of contracted Naval Defence work (due to outside elements within the supply chain) had an impact on activity levels following completion of the development phases of the projects. The Group’s overall manufactured order intake value was 19% greater than the previous year supporting the strong performance in this financial year and ensuring the Group enters the forthcoming year with a strong order backlog.

The Group made further investment of £1.8m in capital expenditure during this financial year, following the £2.1m investment in the previous year. This continued investment program means that in the last three years the Group has invested £5.4m in fixed assets, of which £3.9m is growth capital and £1.5m is maintenance capital. This investment program has focussed upon developing an infrastructure capable of handling contracts with the highest levels of security, increasing the foundry capabilities and also new machining tools aimed at further improving the Group’s ability to offer world class castings in a fully finish machined and tested state, ready for assembly.

£3m of cash was generated from operations during the year and after the aforementioned capital expenditure of £1.8m and the impact of financing costs and investment activities, the Group’s borrowings at the end of the year were £2.7m. The Group’s net assets of £18.9m thus mean it has a healthy gearing ratio of 14%.

The Group continues to invest across all aspects of the businesses in research and development, collaborating with stakeholders to provide difficult alloy component solutions to meet the needs of its customers.

The Directors expect the businesses within the Group to continue to generate profits in the forthcoming financial year in line with recent performance. The impending release to production of contracted naval work should lead to further opportunity to increase this profitability. The Group has also, following the year-end, recruited Chris Rowlands to the executive team who has an extensive knowledge of the US naval marine market through his previous roles. Chris will lead the Group’s strategy in penetrating the US market which is viewed as a lucrative source of growth for the Group in the long-term, given its relative size compared to the UK market, in which the Group is already recognised as the pre-eminent supplier of naval components in Copper and Copper Nickel alloys.

 

Musgrave Holdings Limited

Strategic Report for the Year Ended 30 June 2023 (continued)

The company's key financial and other performance indicators during the year were as follows:

 

Unit

2023

2022

Turnover

£

36,477,382

33,182,306

Turnover per employee

£

121,998

114,422

Gross Profit

£

10,255,139

8,333,836

Gross Profit %

%

28

25

EBITDA before exceptional items

£

4,710,501

3,043,148

EBITDA %

%

13

9

Principal risks and uncertainties

The management continually monitors the key risks facing the business as well as assessing the controls used for managing these risks.

The Company's demand is influenced by external factors within the marketplaces it serves. For example, demand within the oil and gas market, one of the markets the business serves, is materially linked to the price of oil, which fluctuates for lots of reasons including geo-political factors. The business adopts a diversified approach serving several different geographic and industry markets which manages the risk of exposure to demand fluctuations in one specific market.

A significant proportion of the Group's turnover is to export markets. Fluctuating exchange rates therefore provide the business with competitive advantages and disadvantages depending upon the relative strength of the pound. This area of risk is also managed through appropriate use of exchange rate hedging strategies.

The metal content of the Group's product exposes it to fluctuations in metal prices. The Group manages this by purchasing strategies and sales contracts linked to material prices.

The Group's operations involve the typical health and safety hazards inherent in manufacturing and business operations. The company is subject to numerous laws and regulations relating to health and safety around the world. Hazards are managed by risk assessments and introducing appropriate controls, as well as attending relevant Health and Safety training course.

Environmental matters

Musgrave Holdings considers respect for the environment as a core value of the Group. The Group has an approved environmental policy which sets out the guiding principles which all of the subsidiaries must adopt and observe. Under this policy the Group pursues clear strategic goals, taking into account the available technologies and resources, with the aim of progressively improving its environmental performance.

The Group has committed to being carbon neutral by 2040 and is taking steps necessary to reach this target.

Approved and authorised by the Board on 20 February 2024 and signed on its behalf by:
 

.........................................
Mr Michael James Richards
Director

 

Musgrave Holdings Limited

Directors' Report for the Year Ended 30 June 2023

The directors present their report and the financial statements for the year ended 30 June 2023.

Directors of the group

The directors who held office during the year were as follows:

Mr James Michael Salisbury

Mr Robert John Salisbury

Mr Michael James Richards

Financial instruments

Objectives and policies

The Group's activities expose it to a number of financial risks including price risk, credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the group's policies approved by the board of directors, which provide written principles on the use of financial derivatives to manage these risks. The group does not use derivative financial products for speculative purposes.

Price risk, credit risk, liquidity risk and cash flow risk

Price risk

The Group is exposed to commodity price risk. The Group does manage its exposure to commodity price risk where it is considered financially appropriate, presently this is only in respect of metal purchasing.

Credit risk

The Group's principle financial assets are bank balances and cash, trade and other receivables.
The Group's credit risk is primarily attributed to trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of cash flows.
The Group has no significant concentration of credit risk, with exposure spread over a large number of customers.

Liquidity risk

The Group has funded and intends to continue funding its ongoing operations and future developments through cash generated from operating activities and secured bank borrowings.

Cash flow risk

The Group is not significantly exposed to the financial risks of foreign currency exchange rates. Interest bearing assets are held at fixed rates to ensure certainty of cash flow.

 

Musgrave Holdings Limited

Directors' Report for the Year Ended 30 June 2023 (continued)

Employment of disabled persons

The Group gives full and fair consideration to employment applications from disabled persons. Where an employee becomes disabled, arrangements are made wherever practical to continue employment by identifying an available job suited to the person's capabilities and providing any necessary retraining.

Employee involvement


The Directors involve and inform the Group's employees as much as possible within regulatory constraints. The Directors communicate on a quarterly basis through core briefing updates to the employees to promote awareness of current progress and developments within the Group. Given the geographical spread and diverse operations of the Group each site will receive more specific communications from the relevant management of their operations on a more regular basis.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Reappointment of auditors

The auditors Walker Hubble are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved and authorised by the Board on 20 February 2024 and signed on its behalf by:
 

.........................................
Mr Michael James Richards
Director

 

Musgrave Holdings Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting 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; and

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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Musgrave Holdings Limited

Independent Auditor's Report to the Members of Musgrave Holdings Limited

Opinion

We have audited the financial statements of Musgrave Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the group's and the parent company's affairs as at 30 June 2023 and of the group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Musgrave Holdings Limited

Independent Auditor's Report to the Members of Musgrave Holdings Limited (continued)

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 6], 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 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.

 

Musgrave Holdings Limited

Independent Auditor's Report to the Members of Musgrave Holdings Limited (continued)

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

We identified and assessed the risks of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations. Our procedures included enquiry of management and performing analytical review procedures to identify any unusual relationships that may indicate a material misstatement. We also tested the appropriateness of journals to address the risk of fraud through management override of controls. We performed appropriate testing in respect of the risk of fraud in revenue recognition through a review of margins, sales cut off procedures and by performing existence and valuation testing on trade debtors.

Relevant laws and regulations, together with potential fraud risks, were communicated to the audit engagement team at the planning stage to ensure they remained alert to any indication of non compliance with laws and regulations throughout the audit.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

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. 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.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group’s or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

Musgrave Holdings Limited

Independent Auditor's Report to the Members of Musgrave Holdings Limited (continued)

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Gavin Richard Pearson (Senior Statutory Auditor)
For and on behalf of Walker Hubble, Statutory Auditor

5 Parsons Street
Dudley
West Midlands
DY1 1JJ

20 February 2024

 

Musgrave Holdings Limited

Consolidated Profit and Loss Account for the Year Ended 30 June 2023

Note

2023
£

2022
£

Turnover

3

36,477,382

33,182,306

Cost of sales

 

(26,222,243)

(24,848,471)

Gross profit

 

10,255,139

8,333,835

Administrative expenses

 

(7,864,595)

(6,817,372)

Other operating income

4

210,272

360

Operating profit

6

2,600,816

1,516,823

Other interest receivable and similar income

8

15,830

6,747

Interest payable and similar expenses

9

110,111

69,350

   

125,941

76,097

Profit before tax

 

2,726,757

1,592,920

Tax on profit

13

73,199

335,039

Profit for the financial year

 

2,799,956

1,927,959

The above results were derived from continuing operations.

 

Musgrave Holdings Limited

Consolidated Statement of Comprehensive Income for the Year Ended 30 June 2023

2023
£

2022
£

Profit for the year

2,799,956

1,927,959

Surplus on property, plant and equipment revaluation

-

5,262

Goodwill on Consolidation

(17,732)

(17,732)

Remeasurement gain on defined benefit pension schemes

182,000

158,000

Income tax effect

(53,000)

(41,891)

111,268

103,639

Total comprehensive income for the year

2,911,224

2,031,598

Total comprehensive income attributable to:

Owners of the company

2,240,381

1,411,558

Minority interests

670,843

620,040

2,911,224

2,031,598

 

Musgrave Holdings Limited

(Registration number: 05713938)
Consolidated Balance Sheet as at 30 June 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

14

138,633

162,802

Tangible assets

15

10,496,172

10,447,425

 

10,634,805

10,610,227

Current assets

 

Stocks

17

11,623,432

10,060,761

Debtors

18

12,175,938

9,759,982

Cash at bank and in hand

 

2,404,384

2,112,332

 

26,203,754

21,933,075

Creditors: Amounts falling due within one year

20

(14,816,827)

(11,887,626)

Net current assets

 

11,386,927

10,045,449

Total assets less current liabilities

 

22,021,732

20,655,676

Creditors: Amounts falling due after more than one year

20

(3,403,667)

(3,749,681)

Provisions for liabilities

-

(18,443)

Net assets excluding pension asset/(liability)

 

18,618,065

16,887,552

Net pension asset

21

260,250

101,250

Net assets

 

18,878,315

16,988,802

Capital and reserves

 

Called up share capital

22

95,000

95,000

Capital redemption reserve

255,000

255,000

Revaluation reserve

1,659,291

1,668,591

Retained earnings

9,732,330

8,504,352

Equity attributable to owners of the company

 

11,741,621

10,522,943

Minority interests

 

7,136,694

6,465,859

Shareholders' funds

 

18,878,315

16,988,802

Approved and authorised by the Board on 20 February 2024 and signed on its behalf by:
 

.........................................
Mr James Michael Salisbury
Director

 

Musgrave Holdings Limited

(Registration number: 05713938)
Balance Sheet as at 30 June 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

15

-

73,772

Investments

16

966,262

966,262

 

966,262

1,040,034

Current assets

 

Debtors

18

1,186,427

410,547

Creditors: Amounts falling due within one year

20

(1,596,476)

(897,392)

Net current liabilities

 

(410,049)

(486,845)

Total assets less current liabilities

 

556,213

553,189

Creditors: Amounts falling due after more than one year

20

-

(54,956)

Provisions for liabilities

-

(18,443)

Net assets

 

556,213

479,790

Capital and reserves

 

Called up share capital

22

95,000

95,000

Capital redemption reserve

255,000

255,000

Retained earnings

206,213

129,790

Shareholders' funds

 

556,213

479,790

The company made a profit after tax for the financial year of £1,047,644 (2022 - profit of £254,831).

Approved and authorised by the Board on 20 February 2024 and signed on its behalf by:
 

.........................................
Mr James Michael Salisbury
Director

 

Musgrave Holdings Limited

Consolidated Statement of Changes in Equity for the Year Ended 30 June 2023
Equity attributable to the parent company

Share capital
£

Capital redemption reserve
£

Revaluation reserve
£

Retained earnings
£

Total
£

Non-controlling interests - Equity
£

Total equity
£

At 1 July 2022

95,000

255,000

1,668,591

8,453,871

10,472,462

6,465,851

16,938,313

Prior period adjustment

-

-

(40)

40

-

-

-

Profit for the year

-

-

-

2,129,113

2,129,113

670,843

2,799,956

Other comprehensive income

-

-

(9,260)

120,528

111,268

-

111,268

Total comprehensive income

-

-

(9,260)

2,249,641

2,240,381

670,843

2,911,224

Dividends

-

-

-

(971,222)

(971,222)

-

(971,222)

At 30 June 2023

95,000

255,000

1,659,291

9,732,330

11,741,621

7,136,694

18,878,315

Share capital
£

Capital redemption reserve
£

Revaluation reserve
£

Profit and loss account
£

Total
£

Non- controlling interests
£

Total equity
£

At 1 July 2021

95,000

255,000

1,672,589

7,260,746

9,283,335

5,845,819

15,129,154

Profit for the year

-

-

-

1,361,755

1,361,755

566,204

1,927,959

Other comprehensive income

-

-

(3,998)

53,801

49,803

53,836

103,639

Total comprehensive income

-

-

(3,998)

1,415,556

1,411,558

620,040

2,031,598

Dividends

-

-

-

(171,950)

(171,950)

-

(171,950)

At 30 June 2022

95,000

255,000

1,668,591

8,504,352

10,522,943

6,465,859

16,988,802

 

Musgrave Holdings Limited

Statement of Changes in Equity for the Year Ended 30 June 2023

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 July 2022

95,000

255,000

129,791

479,791

Profit for the year

-

-

1,047,644

1,047,644

Dividends

-

-

(971,222)

(971,222)

At 30 June 2023

95,000

255,000

206,213

556,213

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 July 2021

95,000

255,000

46,909

396,909

Profit for the year

-

-

254,831

254,831

Dividends

-

-

(171,950)

(171,950)

At 30 June 2022

95,000

255,000

129,790

479,790

 

Musgrave Holdings Limited

Consolidated Statement of Cash Flows for the Year Ended 30 June 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

2,799,956

1,927,959

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

1,721,758

1,333,505

Profit on disposal of tangible assets

5

(7,167)

(4,000)

Finance income

8

(15,830)

(6,747)

Finance costs

9

284,983

127,468

Income tax credit

13

(73,199)

(335,039)

 

4,710,501

3,043,146

Working capital adjustments

 

Increase in stocks

17

(1,562,671)

(717,825)

Increase in trade debtors

18

(2,611,589)

(2,498,741)

Increase in trade creditors

20

2,241,039

2,372,171

Decrease in retirement benefit obligation net of actuarial changes

21

(30,000)

(49,000)

Decrease in deferred income, including government grants

 

(210,172)

-

Cash generated from operations

 

2,537,108

2,149,751

Income taxes received

13

448,703

320,853

Net cash flow from operating activities

 

2,985,811

2,470,604

Cash flows from investing activities

 

Interest received

15,830

6,747

Acquisitions of tangible assets

(1,818,638)

(2,120,359)

Proceeds from sale of tangible assets

 

67,281

9,263

Acquisition of intangible assets

14

(5,542)

(31,556)

Net cash flows from investing activities

 

(1,741,069)

(2,135,905)

Cash flows from financing activities

 

Interest paid

9

(284,983)

(127,468)

Proceeds from bank borrowing draw downs

 

-

3,300,000

Repayment of bank borrowing

 

(80,355)

(2,295,000)

Proceeds from other borrowing draw downs

 

269,100

684,000

Subsidiary distribution to minority interest

 

(50,487)

(100,975)

Payments to finance lease creditors

 

(372,570)

(302,582)

Dividends paid

(971,222)

(171,950)

Net cash flows from financing activities

 

(1,490,517)

986,025

Net (decrease)/increase in cash and cash equivalents

 

(245,775)

1,320,724

Cash and cash equivalents at 1 July

 

1,609,825

289,101

Cash and cash equivalents at 30 June

 

1,364,050

1,609,825

 

Musgrave Holdings Limited

Statement of Cash Flows for the Year Ended 30 June 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

1,047,644

254,831

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

13,658

18,211

Finance income

(95,282)

(178,158)

Finance costs

4,153

4,329

Income tax expense

13

202,860

18,096

 

1,173,033

117,309

Working capital adjustments

 

Increase in trade debtors

18

(775,880)

(159,133)

Increase in trade creditors

20

594,695

45,574

Cash generated from operations

 

991,848

3,750

Income taxes paid

13

(22,649)

(9,567)

Net cash flow from operating activities

 

969,199

(5,817)

Cash flows from investing activities

 

Interest received

95,282

178,158

Proceeds from sale of tangible assets

 

60,114

-

Net cash flows from investing activities

 

155,396

178,158

Cash flows from financing activities

 

Interest paid

(4,153)

(4,329)

Payments to finance lease creditors

 

(71,956)

(17,000)

Dividends paid

(971,222)

(171,950)

Net cash flows from financing activities

 

(1,047,331)

(193,279)

Net increase/(decrease) in cash and cash equivalents

 

77,264

(20,938)

Cash and cash equivalents at 1 July

 

(110,370)

(89,432)

Cash and cash equivalents at 30 June

 

(33,106)

(110,370)

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Westley Group Limited
Doulton Road
Cradley Heath
West Midlands
B64 5QS
England

These financial statements were authorised for issue by the Board on 20 February 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 June 2023.

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

2

Accounting policies (continued)

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Entities in which the group holds an interest on a long-term basis and are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. In the group financial statements, joint ventures are accounted for using the gross equity method.

Entities, other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence are treated as associates. In the group financial statements, associates are accounted for using the equity method.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.

The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

2

Accounting policies (continued)

Government grants

Government Grants are credited to Profit and Loss and Other Comprehensive Income in the financial period in which they have been received so as to match them with the expenditure to which they relate.

Other grants

The MOD is providing support over the lifetime of contracts towards the cost of specialised equipment. The grants are credited to the Statement of Profit and Loss and Other Comprehensive Income over the life of the contracts.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into the respective functional currency of the entity at the rates prevailing on the reporting period date, Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

2

Accounting policies (continued)

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold land

No depreciation

Freehold buildings

Over 50 years

Leasehold properties

Straight line over the life of the lease

Plant and machinery

Over 4 to10 years

Fixtures, fittings and equipment

Over 3 to10 years

Motor vehicles

over 4 years

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Intangible assets

Separately acquired trademarks and licences are shown at historical cost.

Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.

Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

Written off in equal annual instalments over its estimated economic life

Patents

Written off in equal annual instalments over their estimated useful life of 5 years

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

2

Accounting policies (continued)

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

2

Accounting policies (continued)

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

2

Accounting policies (continued)

Defined benefit pension obligation

The group operates a defined benefit pension scheme. Amounts in respect of current and past services costs are recognised as an employment expense within operating profit. Expected returns of the scheme and interest on the present value of the schemes liabilities are included net within other interest payable or receivable. All actuarial movements of the pension surplus/deficit are recognised through the Statement of Consolidated Income.

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

3

Turnover

The analysis of the group's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

36,477,382

33,182,306

The analysis of the group's Turnover for the year by market is as follows:

2023
£

2022
£

UK

24,979,108

25,397,350

Europe

7,639,824

4,191,361

Rest of world

3,858,450

3,593,595

36,477,382

33,182,306

4

Other operating income

The analysis of the group's other operating income for the year is as follows:

2023
£

2022
£

Government grants

210,072

-

Rental income

200

360

210,272

360

5

Other gains and losses

The analysis of the group's other gains and losses for the year is as follows:

2023
£

2022
£

Gain on disposal of Tangible assets

7,167

4,000

6

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

1,709,779

1,323,941

Amortisation expense

11,979

9,564

Operating lease expense - property

188,000

187,000

Operating lease expense - plant and machinery

211,772

204,019

Profit on disposal of property, plant and equipment

(7,167)

(4,000)

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

7

Government grants

Government Grants are credited to the Statement of Profit and Loss and Other Comprehensive Income in the financial period in which they are received so as to match with expenditure to which they relate.
The MOD is providing support over the lifetime of contracts towards the cost of specialised equipment for use on their contracts.

The amount of grants recognised in the financial statements was £210,072 (2022 - £Nil).

8

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

61

522

Other finance income

15,769

6,225

15,830

6,747

9

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

216,731

70,513

Interest on obligations under finance leases and hire purchase contracts

36,954

24,867

Foreign exchange gains

(395,094)

(196,818)

Other finance costs

31,298

32,088

(110,111)

(69,350)

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

10

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

10,332,479

9,193,353

Social security costs

963,222

820,644

Pension costs, defined contribution scheme

346,941

336,450

Other employee expense

101,548

140,436

11,744,190

10,490,883

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Production

242

231

Administration and support

57

59

299

290

11

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

800,460

373,085

Contributions paid to money purchase schemes

34,400

34,400

834,860

407,485

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
No.

2022
No.

Accruing benefits under money purchase pension scheme

3

3

In respect of the highest paid director:

2023
£

2022
£

Remuneration

286,628

159,015

Company contributions to money purchase pension schemes

10,000

10,000

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

12

Auditors' remuneration

2023
£

2022
£

Audit of these financial statements

32,750

30,170

Other fees to auditors

Taxation compliance services

9,150

9,980

All other assurance services

13,223

11,574

22,373

21,554


 

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

13

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

(199,818)

(404,608)

UK corporation tax adjustment to prior periods

(141,818)

-

(341,636)

(404,608)

Deferred taxation

Arising from origination and reversal of timing differences

252,132

52,873

Arising from changes in tax rates and laws

16,305

16,696

Total deferred taxation

268,437

69,569

Tax receipt in the income statement

(73,199)

(335,039)

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 20.5% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

2,726,757

1,592,920

Corporation tax at standard rate

558,876

302,655

Increase from effect of different UK tax rates on some earnings

3,243

10,054

Effect of revenues exempt from taxation

(1,627,338)

(1,419,274)

Effect of expense not deductible in determining taxable profit (tax loss)

789,204

621,198

Effect of tax losses

604,628

559,854

Deferred tax expense relating to changes in tax rates or laws

16,305

16,696

Increase from effect of tax incentives

70,884

-

Tax increase from effect of capital allowances and depreciation

-

10,260

Tax decrease from other short-term timing differences

(35,380)

(9,225)

Tax decrease from effect of adjustment in research and development tax credit

(421,121)

(427,257)

Other tax effects for reconciliation between accounting profit and tax expense (income)

(32,500)

-

Total tax credit

(73,199)

(335,039)

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

14

Intangible assets

Group

Goodwill
 £

Trademarks, patents and licenses
 £

Total
£

Cost or valuation

At 1 July 2022

354,637

94,995

449,632

Additions acquired separately

-

5,542

5,542

At 30 June 2023

354,637

100,537

455,174

Amortisation

At 1 July 2022

230,516

56,314

286,830

Amortisation charge

17,732

11,979

29,711

At 30 June 2023

248,248

68,293

316,541

Carrying amount

At 30 June 2023

106,389

32,244

138,633

At 30 June 2022

124,121

38,681

162,802

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

15

Tangible assets

Group

Land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 July 2022

4,820,366

2,568,921

14,942,886

276,719

22,608,892

Additions

-

379,751

1,438,887

-

1,818,638

Disposals

-

-

(43,850)

(101,088)

(144,938)

At 30 June 2023

4,820,366

2,948,672

16,337,923

175,631

24,282,592

Depreciation

At 1 July 2022

62,985

1,398,647

10,560,402

139,432

12,161,466

Charge for the year

62,985

306,096

1,308,349

32,348

1,709,778

Eliminated on disposal

-

-

(43,850)

(40,974)

(84,824)

At 30 June 2023

125,970

1,704,743

11,824,901

130,806

13,786,420

Carrying amount

At 30 June 2023

4,694,396

1,243,929

4,513,022

44,825

10,496,172

At 30 June 2022

4,757,380

1,170,274

4,382,484

137,287

10,447,425

Included within the net book value of land and buildings above is £4,694,396 (2022 - £4,747,380) in respect of freehold land and buildings.
 

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

15

Tangible assets (continued)

Revaluation

The fair value of the group's Land and Buildings was revalued on 16 July 2021 by an independent valuer.

The basis of this valuation was in accordance with RICS Valuation - Global Standards.

The valuation of these properties was on the basis of Fair Value assuming that the properties would be sold as part of the continuing business.

Had this class of asset been measured on a historical cost basis, the carrying amount would have been £2,364,182 (2022 - £2,417,907).
 

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

2023
£

2022
£

Plant and Machinery

1,479,183

1,405,719

Motor Vehicles

-

78,088

 

1,479,183

1,483,807

Company

Motor vehicles
 £

Total
£

Cost or valuation

At 1 July 2022

101,088

101,088

Disposals

(101,088)

(101,088)

At 30 June 2023

-

-

Depreciation

At 1 July 2022

27,316

27,316

Charge for the year

13,658

13,658

Eliminated on disposal

(40,974)

(40,974)

At 30 June 2023

-

-

Carrying amount

At 30 June 2023

-

-

At 30 June 2022

73,772

73,772

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

15

Tangible assets (continued)

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

2023
£

2022
£

Motor Vehicles

-

73,772

     
 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

16

Investments

Company

2023
£

2022
£

Investments in subsidiaries

966,262

966,262

Subsidiaries

£

Cost or valuation

At 1 July 2022

966,262

Provision

Carrying amount

At 30 June 2023

966,262

At 30 June 2022

966,262

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Westley Group Limited

Doulton Road
Cradley Heath
West Midlands
B64 5QS

Ordinary Shares

63%

63%

 

England

     

Subsidiaries of Westley Group Limited
 

Francis W Birkett & Sons Limited

Doulton Road
Cradley Heath
West Midlands
B64 5QS

Ordinary Shares

100%

100%

 

England

     

Walter Frank & Sons Limited

Doulton Road
Cradley Heath
West Midlands
B64 5QS

Ordinary Shares

100%

100%

 

England

     
 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

16

Investments (continued)

Meighs & Westleys Limited

Doulton Road
Cradley Heath
West Midlands
B64 5QS

Ordinary Shares

100%

100%

 

England

     

J Roberts Bronze Components Limited

Doulton Road
Cradley Heath
West Midlands
B64 5QS

Ordinary Shares

100%

100%

 

England

     

Spunalloys Limited

Doulton Road
Cradley Heath
West Midlands
B64 5QS

Ordinary Shares

100%

100%

 

England

     

Sweetmore Engineering Holdings Limited

Doulton Road
Cradley Heath
West Midlands
B64 5QS

Ordinary Shares

100%

100%

 

England

     

Westleys Limited

Doulton Road
Cradley Heath
West Midlands
B64 5QS

Ordinary Shares

100%

100%

 

England

     

Subsidiary undertakings

Westley Group Limited

The principal activity of Westley Group Limited is holding company.

Subsidiaries of Westley Group Limited

Francis W Birkett & Sons Limited

The principal activity of Francis W Birkett & Sons Limited is manufacture and sale of ferrous and non ferrous components.

Walter Frank & Sons Limited

The principal activity of Walter Frank & Sons Limited is manufacture of engineered castings and fire fighting equipment.

Meighs & Westleys Limited

The principal activity of Meighs & Westleys Limited is manufacture and sale of ferrous and non ferrous castings and provision of finish machining activities.

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

16

Investments (continued)

J Roberts Bronze Components Limited

The principal activity of J Roberts Bronze Components Limited is property rental company.

Spunalloys Limited

The principal activity of Spunalloys Limited is manufacture and sale of ferrous and non ferrous centrifugal castings and provision of finish machining activities.

Sweetmore Engineering Holdings Limited

The principal activity of Sweetmore Engineering Holdings Limited is non trading.

Westleys Limited

The principal activity of Westleys Limited is non trading.

17

Stocks

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Raw materials and consumables

5,794,278

5,023,031

-

-

Work in progress

4,226,975

3,546,192

-

-

Finished goods and goods for resale

1,602,179

1,491,538

-

-

11,623,432

10,060,761

-

-

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

18

Debtors

   

Group

Company

Note

2023
£

2022
£

2023
£

2022
£

Trade debtors

 

8,478,108

6,488,654

-

-

Amounts owed by related parties

27

1,170,030

733,724

1,170,030

298,526

Other debtors

 

600,513

533,802

16,397

112,021

Prepayments

 

965,636

846,518

-

-

Deferred tax assets

13

443,147

730,027

-

-

Income tax asset

13

518,504

427,257

-

-

   

12,175,938

9,759,982

1,186,427

410,547

Less non-current portion

 

(443,147)

(730,027)

-

-

 

11,732,791

9,029,955

1,186,427

410,547

Details of non-current trade and other debtors

Group

£443,147 (2022 - £730,027) of Deferred Tax Asset is classified as non current. The Deferred Tax Asset relates to trading losses that are available for offset against future trading profits.

19

Cash and cash equivalents

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Cash on hand

969

1,261

-

-

Cash at bank

2,403,415

2,111,071

-

-

2,404,384

2,112,332

-

-

Bank overdrafts

(1,040,334)

(502,507)

(33,106)

(110,370)

Cash and cash equivalents in statement of cash flows

1,364,050

1,609,825

(33,106)

(110,370)

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

20

Creditors

   

Group

Company

Note

2023
£

2022
£

2023
£

2022
£

Due within one year

 

Loans and borrowings

23

1,740,607

1,040,591

33,106

127,370

Trade creditors

 

5,473,385

6,300,063

-

-

Amounts due to related parties

27

1,053,967

600,000

900,000

600,000

Social security and other taxes

 

744,378

615,990

17,169

19,667

Outstanding defined contribution pension costs

 

62,976

51,413

1,200

-

Other payables

 

3,864,960

719,150

-

-

Accruals

 

1,292,331

1,964,338

423,698

127,706

Income tax liability

13

221,303

22,989

221,303

22,649

Deferred income

 

362,920

573,092

-

-

 

14,816,827

11,887,626

1,596,476

897,392

Due after one year

 

Loans and borrowings

23

3,403,667

3,749,681

-

54,956

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

21

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £346,941 (2022 - £336,450).

Contributions totalling £62,976 (2022 - £51,412) were payable to the scheme at the end of the year and are included in creditors.

Defined benefit pension schemes

J Roberts Bronze Components Limited Pension & Assurance Scheme

The Group operates a pension scheme providing employees of J Roberts Bronze Components Limited benefits based on final pensionable pay. The assets of the scheme are held separately from those of the company, being invested with insurance companies.

The date of the most recent comprehensive actuarial valuation was 30 June 2023. This valuation was undertaken to meet the requirements of the accounting standard FRS 102 issued by the Accounting Standards Board.

The total cost relating to defined benefit schemes for the year recognised in profit or loss as an expense was £(5,000) (2022 - £1,000).

The total cost relating to defined benefit schemes for the year included in the cost of an asset was £Nil (2022 - £-Nil).

The most recent Actuarial Valuation was at 30th June 2023. The valuation was prepared by Sarah Elwine MIA of Broadstone Pensions Limited.

The policy transactions statement for the scheme year ending 30th June 2023 showed the Policy Market Value at the end of the period amounted to £1,026,000.

Reconciliation of scheme assets and liabilities to assets and liabilities recognised

The amounts recognised in the balance sheet are as follows:

2023
£

2022
£

Fair value of scheme assets

1,026,000

996,000

Present value of defined benefit obligation

(679,000)

(861,000)

347,000

135,000

Other amounts not recognised in the balance sheet

86,750

(33,750)

Defined benefit pension scheme surplus

433,750

101,250

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

21

Pension and other schemes (continued)

Defined benefit obligation

Changes in the defined benefit obligation are as follows:

2023
£

Present value at start of year

861,000

Interest cost

32,000

Actuarial gains and losses

(189,000)

Remeasurement gain/(losses) on defined benefit obligations

(25,000)

Present value at end of year

679,000

Fair value of scheme assets

Changes in the fair value of scheme assets are as follows:

2023
£

Fair value at start of year

996,000

Interest income

37,000

Remeasurement gains/(losses) on assets

(7,000)

Employer contributions

25,000

Benefits paid

(25,000)

Fair value at end of year

1,026,000

Analysis of assets

The major categories of scheme assets are as follows:

2023
£

2022
£

Cash and cash equivalents

99,000

74,000

Equity instruments

317,000

384,000

Property

87,000

96,000

Investment funds

523,000

442,000

1,026,000

996,000

Return on scheme assets

2023
£

2022
£

Return on scheme assets

(30,000)

67,000

The pension scheme has not invested in any of the group's own financial instruments or in properties or other assets used by the group.

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

21

Pension and other schemes (continued)

Principal actuarial assumptions

The principal actuarial assumptions at the balance sheet date are as follows:

2023
%

2022
%

Discount rate

5.20

3.75

Future pension increases

2.50

2.50

Inflation (RPI)

3.40

3.40

Post retirement mortality assumptions

2023
Years

2022
Years

Current UK pensioners at retirement age - male

21.00

22.00

Current UK pensioners at retirement age - female

24.00

24.00

Future UK pensioners at retirement age - male

22.00

23.00

Future UK pensioners at retirement age - female

25.00

25.00

22

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary Shares of £1 each

95,000

95,000

95,000

95,000

         
 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

23

Loans and borrowings

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

2,750,000

2,970,000

-

-

Hire purchase contracts

653,667

779,681

-

54,956

3,403,667

3,749,681

-

54,956

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Current loans and borrowings

Bank borrowings

359,645

220,000

-

-

Bank overdrafts

1,040,334

502,507

33,106

110,370

Hire purchase contracts

340,628

318,084

-

17,000

1,740,607

1,040,591

33,106

127,370

Group

Bank borrowings

HSBC UK Bank plc loan is denominated in £ sterling with a nominal interest rate of base plus 1.7%, and the final instalment is due on 15 December 2026. The carrying amount at year end is £3,109,645 (2022 - £3,190,000).

Security given:

Unlimited Multilateral Guarantee given by Musgrave Holdings Limited and its operating subsidiary companies.

Debenture including Fixed Charge over all present freehold and leasehold property: First Fixed Charge over book and other debts, chattels, goodwill and uncalled capital both present and future; and First Floating Charge over all assets and undertakings both present and future.

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

23

Loans and borrowings (continued)

Included in the loans and borrowings are the following amounts due after more than five years:

2023
£

2022
£

After more than five years by instalments

1,870,000

2,090,000

24

Obligations under leases and hire purchase contracts

Group

Finance leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

336,903

318,085

Later than one year and not later than five years

653,662

625,241

Later than five years

-

154,440

990,565

1,097,766

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

340,042

338,525

Later than one year and not later than five years

417,345

427,229

757,387

765,754

The amount of non-cancellable operating lease payments recognised as an expense during the year was £399,773 (2022 - £391,108).

Company

Finance leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

-

17,000

Later than one year and not later than five years

-

54,956

-

71,956

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

25

Dividends

   

2023

 

2022

   

£

 

£

Final dividend of £10.22 (2022 - £1.81) per ordinary share

 

971,222

 

171,950

         

26

Commitments

Group

Capital commitments

The group's development plans call for capital expenditure to enhance production capability and capacity.
The total amount contracted for but not provided in the financial statements was £1,120,000 (2022 - £Nil).

27

Related party transactions

Group

Transactions with directors

2023

At 1 July 2022
£

Repayments by director
£

At 30 June 2023
£

Mr Michael James Richards

Loan

100,000

(100,000)

-

       
     

 

2022

At 1 July 2021
£

At 30 June 2022
£

Mr Michael James Richards

Loan

100,000

100,000

     
   

 

Summary of transactions with entities with joint control or significant interest

Foundry Property Investments Limited
 The group leases property from Foundry Property Investments Limited.

Foundry Property Investments Limited provides consultancy services to the group.

 

Summary of transactions with subsidiaries

The group has taken advantage of the exception in FRS 102 "Related Party Disclosures" from Disclosing transactions with subsidiary companies.
 

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

27

Related party transactions (continued)

Income and receivables from related parties

2023

Entities with joint control or significant influence
£

Settlement of liabilities

340

2022

Entities with joint control or significant influence
£

Settlement of liabilities

6,225

Expenditure with and payables to related parties

2023

Entities with joint control or significant influence
£

Rendering of services

18,000

Leases

160,000

178,000

2022

Entities with joint control or significant influence
£

Rendering of services

18,000

Leases

160,000

178,000

Loans to related parties

2023

Entities with joint control or significant influence
£

Key management
£

Total
£

At start of period

133,725

100,000

233,725

Advanced

340

-

340

Repaid

(18,000)

(100,000)

(118,000)

At end of period

116,065

-

116,065

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

27

Related party transactions (continued)

2022

Entities with joint control or significant influence
£

Key management
£

Total
£

At start of period

145,500

100,000

245,500

Advanced

6,225

-

6,225

Repaid

(18,000)

-

(18,000)

At end of period

133,725

100,000

233,725

Company

Transactions with directors

2023

At 1 July 2022
£

Repayments by director
£

At 30 June 2023
£

Mr Michael James Richards

Loan

100,000

(100,000)

-

       
     

 

2022

At 1 July 2021
£

At 30 June 2022
£

Mr Michael James Richards

Loan

100,000

100,000

     
   

 

Summary of transactions with entities with joint control or significant interest

Foundry Property Investments Limited
 The Company has loaned £150,000 to Foundry Property Investments Limited. There is no fixed repayment date and interest is charged at base rate plus 2.7% per annum. Monthly repayments are being made of £1,500.

Foundry Property Investments Limited provide consultancy services to the company.

 

Summary of transactions with subsidiaries

The company has taken advantage of the exception in FRS 102 "Related Party Disclosures" from disclosing transactions with subsidiary companies.
 

Income and receivables from related parties

2023

Entities with joint control or significant influence
£

Settlement of liabilities

340

 

Musgrave Holdings Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

27

Related party transactions (continued)

2022

Entities with joint control or significant influence
£

Settlement of liabilities

6,225

Expenditure with and payables to related parties

2023

Entities with joint control or significant influence
£

Rendering of services

18,000

2022

Entities with joint control or significant influence
£

Rendering of services

18,000

Loans to related parties

2023

Entities with joint control or significant influence
£

Key management
£

Total
£

At start of period

133,725

100,000

233,725

Advanced

340

-

340

Repaid

(18,000)

(100,000)

(118,000)

At end of period

116,065

-

116,065

2022

Entities with joint control or significant influence
£

Key management
£

Total
£

At start of period

145,500

100,000

245,500

Advanced

6,225

-

6,225

Repaid

(18,000)

-

(18,000)

At end of period

133,725

100,000

233,725