Company registration number 13357565 (England and Wales)
MEHDI HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
MEHDI HOLDINGS LIMITED
COMPANY INFORMATION
Director
MSA Raja
Company number
13357565
Registered office
Suite 501
The Nexus Building
Broadway
Letchworth Garden City
Herts
SG6 9BL
Auditor
Hillier Hopkins LLP
Chartered Accountants and Statutory Auditor
249 Silbury Boulevard
Milton Keynes
Bucks
MK9 1NA
Business address
Kings House
101-135 Kings Road
Brentwood
Essex
CM14 4DR
MEHDI HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 32
MEHDI HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The director presents the strategic report for the year ended 31 March 2023.

Fair review of the business

The groups key financial and other performance indicators during the year were as follows:

Unit 2023 2022

 

Turnover £000 20,272 9,695

Gross profit margin % 22.3 24.5

Operating profit £000 259 343

The group is in a stable position and looking to grow further by the introduction of a HR function internally, bringing in junior recruiters and apprentices to lower overall company payroll costs. This will allow the group to future proof itself and increase gross profit with the new hires.

 

Although cash in hand is low at the reporting date, the group uses a debt factoring facility to meet it's working capital requirements. This is included in current bank loans and overdrafts. Total profit reserves in the group have significantly decreased due to the dividends voted to shareholders in the year to 31 March 2023. We do not expect this level of dividend to be repeated in future periods.

 

If in the future there are cashflow issues, the director is confident that the business and related group can provide financial support to manage any short-term cashflow shortfalls as the group continues to grow. It can also generate further borrowing secured against its properties, or from the shareholder. At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future.

 

Principal risks and uncertainties

The principal risks and uncertainties faced by the group are those faced by many businesses of our size and structure within the recruitment market. The ongoing strike action experienced in the public sector has proved a challenge, but we are working with our clients to ensure we are supporting them through this time of need.

 

When looking at market trends, there is less demand for certain staffing specialities in the medical industry. By thinking strategically and identifying future market trends, we can engage with the correct candidates to satisfy our clients.

 

Competition with other recruitment agencies in our sector is something to monitor, to ensure we are not left behind. Solidifying internal process' will improve efficiency and customer service, allowing us the future proof relationships with candidates and clients.

 

Future Developments

The directors do not anticipate any significant changes in the activities of the group in the foreseeable future.

 

People

The success of the group is largely dependent upon the recruitment and retention of our employees. We have hired a training and development manager, ensuring that our employees are upskilled and continue to generate value. We expect that upskilling our training staff will provide will help them identify new opportunities to generate revenue.

Financial risks

The group finances its activities by way of a factoring facility. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the groups operating activities.

 

The main financial risks facing the group are the availability of funds to meet business needs and credit risk in respect of customer receivables.

 

The directors are confident that the banking facilities currently in place are more than adequate for the groups working capital requirements. The group is not exposed to any significant currency risks. The directors are satisfied that credit risk is adequately managed.

MEHDI HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

On behalf of the board

MSA Raja
Director
12 March 2024
MEHDI HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

The director presents his annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the company and group continued to be that of recruitment activities and property investment and renovation.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £509,993. The director does not recommend payment of a final dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

MSA Raja
Post reporting date events

There are no events after the reporting period to be disclosed.

Auditor

In accordance with the company's articles, a resolution proposing that Hillier Hopkins LLP be reappointed as auditor of the group will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company and the group is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
MSA Raja
Director
12 March 2024
MEHDI HOLDINGS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

MEHDI HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MEHDI HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Mehdi Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions related 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 and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

MEHDI HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MEHDI HOLDINGS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

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

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent 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 director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

MEHDI HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MEHDI HOLDINGS LIMITED
- 7 -
Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

We also obtained an understanding of the legal and regulatory frameworks that the group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act and relevant tax legislation.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

Other matters

The comparative figures in these financial statements are unaudited, due to the prior period financial statement  being unaudited, as the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

MEHDI HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MEHDI HOLDINGS LIMITED
- 8 -

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.

Alexander Fuller BA(Hons) BFP ACA
For and on behalf of Hillier Hopkins LLP
14 March 2024
Chartered Accountants
Statutory Auditor
249 Silbury Boulevard
Milton Keynes
Bucks
MK9 1NA
MEHDI HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
Year
Period
ended
ended
31 March
31 March
2023
2022
Notes
£
£
Turnover
3
20,272,251
9,694,564
Cost of sales
(15,747,030)
(7,320,391)
Gross profit
4,525,221
2,374,173
Administrative expenses
(4,265,993)
(2,115,799)
Other operating income
-
84,960
Operating profit
4
259,228
343,334
Interest receivable and similar income
7
5,646
270
Interest payable and similar expenses
8
(228,907)
(72,796)
Fair value gains on investment properties
9
230,000
458,990
Profit before taxation
265,967
729,798
Tax on profit
10
(32,633)
(138,006)
Profit for the financial year
233,334
591,792
Profit for the financial year is attributable to:
- Owners of the parent company
(3,916)
557,065
- Non-controlling interests
237,250
34,727
233,334
591,792
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(3,916)
557,065
- Non-controlling interests
237,250
34,727
233,334
591,792
The notes on pages 16 to 32 form part of these financial statements.
MEHDI HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
33,635
-
0
Tangible assets
13
734,650
301,353
Investment properties
14
1,960,000
1,730,000
2,728,285
2,031,353
Current assets
Debtors
17
3,546,818
3,631,577
Cash at bank and in hand
37,751
313,237
3,584,569
3,944,814
Creditors: amounts falling due within one year
18
(3,897,377)
(3,173,674)
Net current (liabilities)/assets
(312,808)
771,140
Total assets less current liabilities
2,415,477
2,802,493
Creditors: amounts falling due after more than one year
19
(1,621,299)
(1,455,820)
Provisions for liabilities
Deferred tax liability
22
209,942
134,965
(209,942)
(134,965)
Net assets
584,236
1,211,708
Capital and reserves
Called up share capital
24
87
87
Profit and loss reserves
570,337
1,084,246
Equity attributable to owners of the parent company
570,424
1,084,333
Non-controlling interests
13,812
127,375
584,236
1,211,708
The financial statements were approved and signed by the director and authorised for issue on 12 March 2024
12 March 2024
MSA Raja
Director
Company registration number 13357565 (England and Wales)
MEHDI HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
15
1,264,660
1,264,660
Current assets
Debtors
17
1
1
Creditors: amounts falling due within one year
18
(6,295)
(6,295)
Net current liabilities
(6,294)
(6,294)
Net assets
1,258,366
1,258,366
Capital and reserves
Called up share capital
24
87
87
Share premium account
1,258,279
1,258,279
Total equity
1,258,366
1,258,366

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £509,993 (2022 - £0 profit).

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The financial statements were approved and signed by the director and authorised for issue on 12 March 2024
12 March 2024
MSA Raja
Director
Company registration number 13357565 (England and Wales)
MEHDI HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 26 April 2021
-
0
527,181
527,181
92,648
619,829
Period ended 31 March 2022:
Profit and total comprehensive income for the period
-
557,065
557,065
34,727
591,792
Issue of share capital
24
87
-
87
-
87
Balance at 31 March 2022
87
1,084,246
1,084,333
127,375
1,211,708
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
(3,916)
(3,916)
237,250
233,334
Dividends
11
-
(509,993)
(509,993)
(350,813)
(860,806)
Balance at 31 March 2023
87
570,337
570,424
13,812
584,236
MEHDI HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 26 April 2021
-
0
-
0
-
0
-
Period ended 31 March 2022:
Profit and total comprehensive income for the period
-
-
-
-
0
Issue of share capital
24
87
1,258,279
-
1,258,366
Balance at 31 March 2022
87
1,258,279
-
0
1,258,366
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
509,993
509,993
Dividends
11
-
-
(509,993)
(509,993)
Balance at 31 March 2023
87
1,258,279
-
0
1,258,366
MEHDI HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
28
1,383,796
(951,701)
Interest paid
(16,388)
(6,737)
Income taxes paid
(45,109)
(206,276)
Net cash inflow/(outflow) from operating activities
1,322,299
(1,164,714)
Investing activities
Purchase of intangible assets
(37,120)
-
Purchase of tangible fixed assets
(601,062)
(164,365)
Interest received
5,646
270
Net cash used in investing activities
(632,536)
(164,095)
Financing activities
Proceeds from issue of shares
-
87
Repayment of borrowings
-
(37)
Repayment of bank loans
(139,167)
(155,416)
Payment of finance leases obligations
454,747
(5,923)
Loans due from/(repaid to) directors
(72,292)
(27,950)
Interest paid
(212,519)
(66,059)
Dividends paid to equity shareholders
(509,993)
-
0
Dividends paid to non-controlling interests
(350,813)
-
0
Net cash used in financing activities
(830,037)
(255,298)
Net decrease in cash and cash equivalents
(140,274)
(1,584,107)
Cash and cash equivalents at beginning of year
(1,402,375)
181,732
Cash and cash equivalents at end of year
(1,542,649)
(1,402,375)
Relating to:
Cash at bank and in hand
37,751
313,237
Bank overdrafts included in creditors payable within one year
(1,580,400)
(1,715,612)
MEHDI HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Investing activities
Dividends received
509,993
-
0
Net cash generated from/(used in) investing activities
509,993
-
Financing activities
Dividends paid to equity shareholders
(509,993)
-
Net cash used in financing activities
(509,993)
-
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
-
0
-
0
MEHDI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
1
Accounting policies
Company information

Mehdi Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is:

 

PO BOX 501, The Nexus Building

Broadway, Letchworth Garden City, Herts

United Kingdom

SG6 9BL

 

The group consists of Mehdi Holdings Limited and all of its subsidiaries.

 

The principal activities of the group are the provision of recruitment services and property investment and renovation.

 

The group is limited by shares.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company and the group. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Mehdi Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

The consolidated financial statements incorporate the results of business combinations using he merger method, since the creation of the Group is considered a reorganisation. The assets, liabilities, income and expenses are recognised as if the Group had always existed.

 

All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

MEHDI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
1.3
Going concern

The group is in a stable position and looking to grow further by the introduction of a HR function internally, bringing in junior recruiters and apprentices to lower overall company payroll costs. This will allow the group to future proof itself and increase gross profit with the new hires.

 

Although cash in hand is low at the reporting date, the group uses a debt factoring facility to meet it's working capital requirements. This is included in current bank loans and overdrafts. Total profit reserves in the group have significantly decreased due to the dividends voted to shareholders in the year to 31 March 2023. We do not expect this level of dividend to be repeated in future periods.

 

The net current liabilities of the group at year end is £312,808. The director is of the opinion that this shortfall, and its ongoing short-term cashflow needs as it continues to grow will be met through cash generated within the group, and if not, can be obtained through further borrowings secured against its properties, or from the shareholder. At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from service fee contracts for the provision of professional services (Medilink Consulting) are recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

 

Revenue from rental income (SBR Group) are recognised on straight line basis over the term of the lease agreements.

1.5
Intangible fixed assets other than goodwill

Intangible fixed assets other than goodwill are initially measured at cost and subsequently measured at cost or valuation, net of amortisation and any impairment losses.

 

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
3 years straight line
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
5 years straight line
Fixtures and fittings
4 years straight line
Computers
3 years straight line
Motor vehicles
3 years straight line
MEHDI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.7
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

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

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

MEHDI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

MEHDI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

MEHDI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 21 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

MEHDI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Carrying value of investments

 

The director has considered if there are any indicators of impairment of the group's investments at the reporting date. Where such indicators are identified, an impairment review is undertaken to ensure that the carrying value of the investments reflects, as a minimum, the value to be realised from the investment in the foreseeable future.

 

The fair value of investment properties owned by the group have been determined by the director, based upon market values. Any chance in fair value has been reflected in the group statement of profit and loss.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Temporary sales
20,084,802
9,636,517
Permanent sales
83,366
25,338
Rental income
104,083
32,709
20,272,251
9,694,564
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
20,272,251
9,694,564
2023
2022
£
£
Other revenue
Interest income
5,646
270
Grants received
-
84,960
MEHDI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
308
(58)
Government grants
-
(84,960)
Depreciation of owned tangible fixed assets
57,849
10,708
Depreciation of tangible fixed assets held under finance leases
108,333
27,311
Loss on disposal of tangible fixed assets
1,583
-
Amortisation of intangible assets
3,485
-
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,000
-
Audit of the financial statements of the company's subsidiaries
20,000
-
25,000
-
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
53
59
1
1

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,687,041
1,437,871
-
0
-
0
Social security costs
333,099
163,715
-
-
Pension costs
23,783
12,354
-
0
-
0
3,043,923
1,613,940
-
0
-
0
MEHDI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
5,646
270
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
77,266
39,403
Interest on invoice finance arrangements
89,487
21,506
166,753
60,909
Other finance costs:
Interest on finance leases and hire purchase contracts
41,187
5,150
Other interest
20,967
6,737
Total finance costs
228,907
72,796
9
Other gains and losses
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Gain on financial assets held at fair value through profit or loss
230,000
458,990
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
30,034
Adjustments in respect of prior periods
(42,344)
-
0
Total current tax
(42,344)
30,034
Deferred tax
Origination and reversal of timing differences
74,977
107,972
Total tax charge
32,633
138,006
MEHDI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
10
Taxation
(Continued)
- 25 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
265,967
729,798
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
50,534
138,662
Tax effect of expenses that are not deductible in determining taxable profit
17,102
10,631
Gains not taxable
(43,700)
(87,208)
Unutilised tax losses carried forward
50,700
9,453
Capital allowances in excess of depreciation
(117,440)
(41,552)
Deferred tax movement
74,977
107,972
Loss on disposal of fixed assets
301
-
0
Temporary timing differneces
159
48
Taxation charge
32,633
138,006
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Paid in year
509,993
-
12
Intangible fixed assets
Group
Software
£
Cost
At 1 April 2022
-
0
Additions
37,120
At 31 March 2023
37,120
Amortisation and impairment
At 1 April 2022
-
0
Amortisation charged for the year
3,485
At 31 March 2023
3,485
Carrying amount
At 31 March 2023
33,635
At 31 March 2022
-
0
MEHDI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
12
Intangible fixed assets
(Continued)
- 26 -
The company had no intangible fixed assets at 31 March 2023 or 31 March 2022.
13
Tangible fixed assets
Group
Leasehold improvements
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2022
127,768
33,586
27,824
196,058
385,236
Additions
462,686
5,579
132,797
-
0
601,062
Disposals
(26,695)
-
0
-
0
-
0
(26,695)
At 31 March 2023
563,759
39,165
160,621
196,058
959,603
Depreciation and impairment
At 1 April 2022
25,112
3,620
14,732
40,419
83,883
Depreciation charged in the year
70,848
9,446
20,536
65,352
166,182
Eliminated in respect of disposals
(25,112)
-
0
-
0
-
0
(25,112)
At 31 March 2023
70,848
13,066
35,268
105,771
224,953
Carrying amount
At 31 March 2023
492,911
26,099
125,353
90,287
734,650
At 31 March 2022
102,656
29,966
13,092
155,639
301,353
The company had no tangible fixed assets at 31 March 2023 or 31 March 2022.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Motor vehicles
89,955
154,962
-
0
-
0
Computers
38,032
-
0
-
0
-
0
Leasehold land and buildings
396,524
-
-
-
524,511
154,962
-
-
MEHDI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
14
Investment property
Group
Company
2023
2022
2023
2022
£
£
£
£
Cost
At 1 April
1,730,000
1,271,010
-
-
Net gains or losses through fair value adjustments
230,000
458,990
-
-
At 31 March
1,960,000
1,730,000
-
-

The fair value of the investment property has been arrived at on the basis of a valuation carried out by S Raja, director.

15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
1,264,660
1,264,660
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022 and 31 March 2023
1,264,660
Carrying amount
At 31 March 2023
1,264,660
At 31 March 2022
1,264,660
16
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Medilink Consulting Limited
UK 07071689
Ordinary A
85.00
-
SBR Group Limited
UK 10897237
Ordinary
100.00
-
MLCG Limited
UK 13903654
Ordinary
0
100.00

SBR Group Limited (Companies House reference: 10897237) is exempt from the requirement of the Companies Act 2006 relating to the audit of individual accounts by virtue of section 479A of the Act. The Company has provided a guarantee under section 479C of the Companies Act 2006 in respect of the financial period ended 31 March 2023. The guarantee is over all outstanding liabilities to which the subsidiary company is subject to at 31 March 2023 until they are settled.

MEHDI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,465,225
2,326,301
-
0
-
0
Unpaid share capital
-
0
-
0
1
1
Corporation tax recoverable
62,473
-
0
-
0
-
0
Other debtors
412,642
1,043,305
-
0
-
0
Prepayments and accrued income
606,478
261,971
-
0
-
0
3,546,818
3,631,577
1
1
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
1,762,046
1,874,758
-
0
-
0
Obligations under finance leases
21
145,750
18,149
-
0
-
0
Trade creditors
187,010
352,283
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
6,295
6,295
Corporation tax payable
20,248
45,228
-
0
-
0
Other taxation and social security
891,392
429,144
-
-
Other creditors
209,746
191,238
-
0
-
0
Accruals and deferred income
681,185
262,874
-
0
-
0
3,897,377
3,173,674
6,295
6,295
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
340,417
502,084
-
0
-
0
Obligations under finance leases
21
459,598
132,452
-
0
-
0
Other borrowings
20
821,284
821,284
-
0
-
0
1,621,299
1,455,820
-
-
MEHDI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
522,063
661,230
-
0
-
0
Bank overdrafts
1,580,400
1,715,612
-
0
-
0
Other loans
821,284
821,284
-
0
-
0
2,923,747
3,198,126
-
-
Payable within one year
1,762,046
1,874,758
-
0
-
0
Payable after one year
1,161,701
1,323,368
-
0
-
0

The long-term loans including invoice discounting facilities are secured by way of a fixed and floating charge over the group's assets and the shareholder.

21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
145,750
150,601
-
0
-
0
In two to five years
459,598
-
0
-
0
-
0
605,348
150,601
-
-

Finance lease payments represent rentals payable by the company or group for certain fixed asset items. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
98,238
54,112
Revaluations
111,704
80,853
209,942
134,965
The company has no deferred tax assets or liabilities.
MEHDI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
22
Deferred taxation
(Continued)
- 30 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 April 2022
134,965
-
Charge to profit or loss
74,977
-
Liability at 31 March 2023
209,942
-
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
23,783
12,354

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group within independently administered funds.

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
of £1 each
87
87
87
87
25
Operating lease commitments

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
155,186
89,925
-
-
Between two and five years
900,307
158,493
-
-
1,055,493
248,418
-
-
MEHDI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
26
Related party transactions

At the reporting date, the company was owed £217,275 (2022: £975,106) by the shareholders.

 

At the reporting date, the company was owed £100,242 (2022: £27,950) by key management personnel.

 

In the year to 31 March 2023, directors remuneration was £836,887 (2022: £265,976.)

 

The remuneration and dividends paid to the shareholders is as follows

 

MBA Raja - Medilink shareholder

Remuneration: £15,299

BIK: £2,216

Dividends: £350,813

 

MSA Raja - Ultimate controlling party

Remuneration: £36,478

BIK: £4,458

Dividends: £509,993

27
Controlling party

The company was controlled throughout the period by MSA Raja, director.

28
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Profit for the year after tax
233,334
591,792
Adjustments for:
Taxation charged
32,633
138,006
Finance costs
228,907
72,796
Investment income
(5,646)
(270)
Loss on disposal of tangible fixed assets
1,583
-
Amortisation and impairment of intangible assets
3,485
-
Depreciation and impairment of tangible fixed assets
166,182
38,019
Other gains and losses
(230,000)
(458,990)
Movements in working capital:
Decrease/(increase) in debtors
219,524
(1,428,235)
Increase in creditors
733,794
95,181
Cash generated from/(absorbed by) operations
1,383,796
(951,701)
MEHDI HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 32 -
29
Cash (absorbed by)/generated from operations - company
2023
2022
£
£
Profit for the year after tax
509,993
-
Adjustments for:
Investment income
(509,993)
-
0
Movements in working capital:
Decrease in debtors
-
1
Cash (absorbed by)/generated from operations
-
1
30
Analysis of changes in net debt - group
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
313,237
(275,486)
37,751
Bank overdrafts
(1,715,612)
135,212
(1,580,400)
(1,402,375)
(140,274)
(1,542,649)
Borrowings excluding overdrafts
(1,482,514)
139,167
(1,343,347)
Obligations under finance leases
(150,601)
(454,747)
(605,348)
(3,035,490)
(455,854)
(3,491,344)
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.300MSA 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