Registration number:
Musgrave Holdings Limited
for the Year Ended 30 June 2023
Musgrave Holdings Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
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 |
|
Notes to the Financial Statements |
Musgrave Holdings Limited
Company Information
Directors |
Mr James Michael Salisbury Mr Robert John Salisbury Mr Michael James Richards |
Registered office |
|
Bankers |
|
Auditors |
|
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
......................................... |
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:
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
......................................... |
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.
......................................
For and on behalf of
5 Parsons Street
West Midlands
DY1 1JJ
Musgrave Holdings Limited
Consolidated Profit and Loss Account for the Year Ended 30 June 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
|
|
|
125,941 |
76,097 |
||
Profit before tax |
|
|
|
Tax on profit |
|
|
|
Profit for the financial year |
|
|
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 |
|
|
Surplus on property, plant and equipment revaluation |
- |
|
Goodwill on Consolidation |
(17,732) |
(17,732) |
Remeasurement gain on defined benefit pension schemes |
|
|
Income tax effect |
(53,000) |
(41,891) |
111,268 |
103,639 |
|
Total comprehensive income for the year |
|
|
Total comprehensive income attributable to: |
||
Owners of the company |
|
|
Minority interests |
|
|
|
|
Musgrave Holdings Limited
(Registration number: 05713938)
Consolidated Balance Sheet as at 30 June 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
- |
( |
|
Net assets excluding pension asset/(liability) |
18,618,065 |
16,887,552 |
|
Net pension asset |
260,250 |
101,250 |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
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
......................................... |
Musgrave Holdings Limited
(Registration number: 05713938)
Balance Sheet as at 30 June 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
- |
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
- |
( |
|
Provisions for liabilities |
- |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
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
......................................... |
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 |
|
|
|
|
|
|
|
Prior period adjustment |
- |
- |
( |
|
- |
- |
- |
Profit for the year |
- |
- |
- |
|
|
|
|
Other comprehensive income |
- |
- |
( |
|
|
- |
|
Total comprehensive income |
- |
- |
( |
|
|
|
|
Dividends |
- |
- |
- |
( |
( |
- |
( |
At 30 June 2023 |
|
|
|
|
|
|
|
Share capital |
Capital redemption reserve |
Revaluation reserve |
Profit and loss account |
Total |
Non- controlling interests |
Total equity |
|
At 1 July 2021 |
|
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
|
|
Other comprehensive income |
- |
- |
( |
|
|
|
|
Total comprehensive income |
- |
- |
( |
|
|
|
|
Dividends |
- |
- |
- |
( |
( |
- |
( |
At 30 June 2022 |
|
|
|
|
|
|
|
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 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 30 June 2023 |
|
|
|
|
Share capital |
Capital redemption reserve |
Retained earnings |
Total |
|
At 1 July 2021 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
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 |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
( |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax credit |
( |
( |
|
|
|
||
Working capital adjustments |
|||
Increase in stocks |
( |
( |
|
Increase in trade debtors |
( |
( |
|
Increase in trade creditors |
|
|
|
Decrease in retirement benefit obligation net of actuarial changes |
( |
( |
|
Decrease in deferred income, including government grants |
( |
- |
|
Cash generated from operations |
|
|
|
Income taxes received |
|
|
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Acquisition of intangible assets |
( |
( |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Proceeds from bank borrowing draw downs |
- |
|
|
Repayment of bank borrowing |
( |
( |
|
Proceeds from other borrowing draw downs |
|
|
|
Subsidiary distribution to minority interest |
( |
( |
|
Payments to finance lease creditors |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
|
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 July |
|
|
|
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 |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Increase in trade debtors |
( |
( |
|
Increase in trade creditors |
|
|
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
( |
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Proceeds from sale of tangible assets |
|
- |
|
Net cash flows from investing activities |
|
|
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Payments to finance lease creditors |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
Cash and cash equivalents at 1 July |
( |
( |
|
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
General information |
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is:
England
These financial statements were authorised for issue by the
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
Foreign currency transactions and balances
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)
Turnover |
The analysis of the group's Turnover for the year from continuing operations is as follows:
2023 |
2022 |
|
Sale of goods |
|
|
The analysis of the group's Turnover for the year by market is as follows:
2023 |
2022 |
|
UK |
|
|
Europe |
|
|
Rest of world |
|
|
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2023 |
2022 |
|
Government grants |
|
- |
Rental income |
200 |
360 |
|
|
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 |
|
|
Operating profit |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Operating lease expense - property |
|
|
Operating lease expense - plant and machinery |
|
|
Profit on disposal of property, plant and equipment |
( |
( |
Musgrave Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)
Government grants |
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 £
Other interest receivable and similar income |
2023 |
2022 |
|
Interest income on bank deposits |
|
|
Other finance income |
|
|
|
|
Interest payable and similar expenses |
2023 |
2022 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Foreign exchange gains |
( |
( |
Other finance costs |
|
|
( |
( |
Musgrave Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2023 |
2022 |
|
Production |
|
|
Administration and support |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
834,860 |
407,485 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2023 |
2022 |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
2023 |
2022 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
Musgrave Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)
Auditors' remuneration |
2023 |
2022 |
|
Audit of these financial statements |
32,750 |
30,170 |
Other fees to auditors |
||
Taxation compliance services |
|
|
All other assurance services |
|
|
|
|
Musgrave Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
( |
( |
UK corporation tax adjustment to prior periods |
( |
- |
(341,636) |
(404,608) |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Arising from changes in tax rates and laws |
|
|
Total deferred taxation |
|
|
Tax receipt in the income statement |
( |
( |
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
The differences are reconciled below:
2023 |
2022 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Increase from effect of different UK tax rates on some earnings |
|
|
Effect of revenues exempt from taxation |
( |
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Effect of tax losses |
|
|
Deferred tax expense relating to changes in tax rates or laws |
|
|
Increase from effect of tax incentives |
|
- |
Tax increase from effect of capital allowances and depreciation |
- |
|
Tax decrease from other short-term timing differences |
( |
( |
Tax decrease from effect of adjustment in research and development tax credit |
( |
( |
Other tax effects for reconciliation between accounting profit and tax expense (income) |
( |
- |
Total tax credit |
( |
( |
Musgrave Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)
Intangible assets |
Group
Goodwill |
Trademarks, patents and licenses |
Total |
|
Cost or valuation |
|||
At 1 July 2022 |
|
|
|
Additions acquired separately |
- |
|
|
At 30 June 2023 |
|
|
|
Amortisation |
|||
At 1 July 2022 |
|
|
|
Amortisation charge |
|
|
|
At 30 June 2023 |
|
|
|
Carrying amount |
|||
At 30 June 2023 |
|
|
|
At 30 June 2022 |
|
|
|
Musgrave Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)
Tangible assets |
Group
Land and buildings |
Fixtures and fittings |
Plant and machinery |
Motor vehicles |
Total |
|
Cost or valuation |
|||||
At 1 July 2022 |
|
|
|
|
|
Additions |
- |
|
|
- |
|
Disposals |
- |
- |
( |
( |
( |
At 30 June 2023 |
|
|
|
|
|
Depreciation |
|||||
At 1 July 2022 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
( |
( |
At 30 June 2023 |
|
|
|
|
|
Carrying amount |
|||||
At 30 June 2023 |
|
|
|
|
|
At 30 June 2022 |
|
|
|
|
|
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
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 £
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 |
|
|
Disposals |
( |
( |
At 30 June 2023 |
- |
- |
Depreciation |
||
At 1 July 2022 |
|
|
Charge for the year |
|
|
Eliminated on disposal |
( |
( |
At 30 June 2023 |
- |
- |
Carrying amount |
||
At 30 June 2023 |
- |
- |
At 30 June 2022 |
|
|
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)
Investments |
Company
2023 |
2022 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 July 2022 |
|
Provision |
|
Carrying amount |
|
At 30 June 2023 |
|
At 30 June 2022 |
|
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 |
||||
|
Doulton Road
|
Ordinary Shares |
|
|
England |
Subsidiaries of Westley Group Limited |
||||
|
Doulton Road
|
Ordinary Shares |
|
|
England |
||||
|
Doulton Road
|
Ordinary Shares |
|
|
England |
Musgrave Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)
16 |
Investments (continued) |
|
Doulton Road
|
Ordinary Shares |
|
|
England |
||||
|
Doulton Road
|
Ordinary Shares |
|
|
England |
||||
|
Doulton Road
|
Ordinary Shares |
|
|
England |
||||
|
Doulton Road
|
Ordinary Shares |
|
|
England |
||||
|
Doulton Road
|
Ordinary Shares |
|
|
England |
Subsidiary undertakings |
Westley Group Limited The principal activity of Westley Group Limited is |
Subsidiaries of Westley Group Limited |
Francis W Birkett & Sons Limited The principal activity of Francis W Birkett & Sons Limited is |
Walter Frank & Sons Limited The principal activity of Walter Frank & Sons Limited is |
Meighs & Westleys Limited The principal activity of Meighs & Westleys Limited is |
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 |
Spunalloys Limited The principal activity of Spunalloys Limited is |
Sweetmore Engineering Holdings Limited The principal activity of Sweetmore Engineering Holdings Limited is |
Westleys Limited The principal activity of Westleys Limited is |
Stocks |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Raw materials and consumables |
|
|
- |
- |
Work in progress |
|
|
- |
- |
Finished goods and goods for resale |
|
|
- |
- |
|
|
- |
- |
Musgrave Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)
Debtors |
Group |
Company |
||||
Note |
2023 |
2022 |
2023 |
2022 |
|
Trade debtors |
|
|
- |
- |
|
Amounts owed by related parties |
|
|
|
|
|
Other debtors |
|
|
|
|
|
Prepayments |
|
|
- |
- |
|
Deferred tax assets |
|
|
- |
- |
|
Income tax asset |
|
|
- |
- |
|
|
|
|
|
||
Less non-current portion |
( |
( |
- |
- |
|
|
|
|
|
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.
Cash and cash equivalents |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Cash on hand |
|
|
- |
- |
Cash at bank |
|
|
- |
- |
|
|
- |
- |
|
Bank overdrafts |
( |
( |
( |
( |
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)
Creditors |
Group |
Company |
||||
Note |
2023 |
2022 |
2023 |
2022 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
|
|
|
Trade creditors |
|
|
- |
- |
|
Amounts due to related parties |
|
|
|
|
|
Social security and other taxes |
|
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
- |
|
Other payables |
|
|
- |
- |
|
Accruals |
|
|
|
|
|
Income tax liability |
221,303 |
22,989 |
221,303 |
22,649 |
|
Deferred income |
|
|
- |
- |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
- |
|
Musgrave Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)
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 £
Contributions totalling £
Defined benefit pension schemes
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
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 |
|
|
Present value of defined benefit obligation |
( |
( |
347,000 |
135,000 |
|
Other amounts not recognised in the balance sheet |
86,750 |
(33,750) |
Defined benefit pension scheme surplus |
|
|
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 |
|
Interest cost |
|
Actuarial gains and losses |
( |
Remeasurement gain/(losses) on defined benefit obligations |
( |
Present value at end of year |
|
Fair value of scheme assets
Changes in the fair value of scheme assets are as follows:
2023 |
|
Fair value at start of year |
|
Interest income |
|
Remeasurement gains/(losses) on assets |
( |
Employer contributions |
|
Benefits paid |
( |
Fair value at end of year |
|
Analysis of assets
The major categories of scheme assets are as follows:
2023 |
2022 |
|
Cash and cash equivalents |
|
|
Equity instruments |
|
|
Property |
|
|
Investment funds |
523,000 |
442,000 |
|
|
Return on scheme assets
2023 |
2022 |
|
Return on scheme assets |
( |
|
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 |
|
|
Future pension increases |
|
|
Inflation (RPI) |
|
|
Post retirement mortality assumptions
2023 |
2022 |
|
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 |
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
95,000 |
|
95,000 |
Musgrave Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)
Loans and borrowings |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Non-current loans and borrowings |
||||
Bank borrowings |
|
|
- |
- |
Hire purchase contracts |
|
|
- |
|
|
|
- |
|
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Current loans and borrowings |
||||
Bank borrowings |
|
|
- |
- |
Bank overdrafts |
|
|
|
|
Hire purchase contracts |
|
|
- |
|
|
|
|
|
Group
Bank borrowings
Security given:
|
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 |
|
|
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 |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
- |
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Company
Finance leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
- |
|
Later than one year and not later than five years |
- |
|
- |
|
Musgrave Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)
Dividends |
2023 |
2022 |
|||
£ |
£ |
|||
Final dividend of £ |
971,222 |
171,950 |
||
Commitments |
Group
Capital commitments
The total amount contracted for but not provided in the financial statements was £
Related party transactions |
Group
Transactions with directors |
2023 |
At 1 July 2022 |
Repayments by director |
At 30 June 2023 |
Mr Michael James Richards |
|||
Loan |
|
( |
- |
2022 |
At 1 July 2021 |
At 30 June 2022 |
Mr Michael James Richards |
||
Loan |
|
|
Summary of transactions with entities with joint control or significant interest
Foundry Property Investments Limited provides consultancy services to the group.
Summary of transactions with subsidiaries
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 |
|
|
2022 |
Entities with joint control or significant influence |
Settlement of liabilities |
|
|
Expenditure with and payables to related parties
2023 |
Entities with joint control or significant influence |
Rendering of services |
|
Leases |
|
|
|
|
2022 |
Entities with joint control or significant influence |
Rendering of services |
|
Leases |
|
|
|
|
Loans to related parties
2023 |
Entities with joint control or significant influence |
Key management |
Total |
At start of period |
|
|
|
Advanced |
|
- |
|
Repaid |
( |
( |
( |
At end of period |
|
- |
|
|
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 |
|
|
|
Advanced |
|
- |
|
Repaid |
( |
- |
( |
At end of period |
|
|
|
|
Company
Transactions with directors |
2023 |
At 1 July 2022 |
Repayments by director |
At 30 June 2023 |
Mr Michael James Richards |
|||
Loan |
|
( |
- |
2022 |
At 1 July 2021 |
At 30 June 2022 |
Mr Michael James Richards |
||
Loan |
|
|
Summary of transactions with entities with joint control or significant interest
Foundry Property Investments Limited provide consultancy services to the company.
Summary of transactions with subsidiaries
Income and receivables from related parties
2023 |
Entities with joint control or significant influence |
Settlement of liabilities |
|
|
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 |
|
|
Expenditure with and payables to related parties
2023 |
Entities with joint control or significant influence |
Rendering of services |
|
|
2022 |
Entities with joint control or significant influence |
Rendering of services |
|
|
Loans to related parties
2023 |
Entities with joint control or significant influence |
Key management |
Total |
At start of period |
|
|
|
Advanced |
|
- |
|
Repaid |
( |
( |
( |
At end of period |
|
- |
|
|
2022 |
Entities with joint control or significant influence |
Key management |
Total |
At start of period |
|
|
|
Advanced |
|
- |
|
Repaid |
( |
- |
( |
At end of period |
|
|
|
|