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Registered number: 00251148









H Marcel Guest Limited









Annual Report and Consolidated Financial Statements

for the year ended 30 September 2023

 
H Marcel Guest Limited
 
 
Company Information


Directors
S B Falder 
J S Falder 
C J Falder 
J E Falder 




Company secretary
K West



Registered number
00251148



Registered office
Riverside Works
Collyhurst Road

Manchester

M40 7RU




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

3 Stockport Exchange

Railway Road

Stockport

SK1 3GG




Bankers
Lloyds Bank Plc
Third Floor

53 King Street

Manchester

M2 4LQ





 
H Marcel Guest Limited
 

Contents



Page
Chairman's Statement
 
1
Group Strategic Report
 
2 - 3
Directors' Report
 
4 - 5
Independent Auditors' Report
 
6 - 9
Consolidated Statement of Comprehensive Income
 
10
Consolidated Balance Sheet
 
11
Company Balance Sheet
 
12
Consolidated Statement of Changes in Equity
 
13
Company Statement of Changes in Equity
 
14
Consolidated Statement of Cash Flows
 
15 - 16
Consolidated Analysis of Net Debt
 
16
Notes to the Financial Statements
 
17 - 38


 
H Marcel Guest Limited
 
 
 
Chairman's Statement
for the year ended 30 September 2023

The chairman presents his statement for the period.

2023 has been a year of continuing international political and financial turbulence. The war in Ukraine shows few signs of ending soon, and conflict in Israel has brought another dangerous element into an already tense mix.  Fortunately, there are signs that inflation has peaked in most of the world giving hope for reduction in interest rates and the attendant improvement in business financing generally. The global supply chains that we rely on show ponderous betterment, but it does appear that we may never return to the high standards of the past for the supply of raw material, packaging, and logistics fields.
Inflation and shortages from last year meant that 2022-23 had a difficult start for all the Marcel Guest family of companies but the second half of the year showed a marked improvement. 
The Riverside Works, which as I have previously noted, is the oldest continually manufacturing site for paints and coatings on the planet, and some of our buildings reflect that! During 2023 H Marcel Guest has completed the major refurbishment of the main store fabric but we still have concerns over the underpinnings etc. of that structure. During the next year it is planned to negotiate with the Pension fund owners of the building a settlement that treats this structure fairly for all concerned.
Sustainability and ecological matters continue to grow in global consciousness and Marcel Guest continues to develop and build on our relevant ecological projects. More trees have been planted in Cumbria as part of a re-establishment of forest on previously sheep denuded land. The new era woods adjacent to the site are having planned thinning and maintenance to allow larger trees to prosper in a more accessible layout and, as part of Nova Paint Club membership, HMG supported by Marcel Guest, is participating in a global initiative to reduce global temperatures as part of the Cool Roofs Cool Planet initiative.
In closing, I must thank all my fellow directors within H Marcel Guest and the amazing and able team within HMG Paints for their hard work and dedication in 2023.  It is my pleasure to sign this report that records their achievements.


NameS Falder
Chairman

Date23 April 2024

Page 1

 
H Marcel Guest Limited
 
 
Group Strategic Report
for the year ended 30 September 2023

Introduction
 
The directors present their strategic report for the year ended 30 September 2023
Business review
During this year of continued economic uncertainty and political instability, the Group once again demonstrated its agility and adaptability in diversifying its product range and managing to secure several new contracts which have strengthened our customer base. We have continued to monitor costs and prices throughout this challenging year to navigate through the issues caused by the conflict in the Ukraine and spiralling inflation. Despite these adverse macro-economic factors, we succeeded in increasing turnover whilst reporting a slight improvement in gross margin which is reflected in these results.
Considering this combination of extraordinary adverse and unstable conditions, turnover and profitability are deemed by the Board to be satisfactory given the challenges faced by the Group through the year.
The Group’s principal subsidiary, HMG Paints Ltd, maintains a strategy of long-term business, at the heart of which is the aim of building security for all the company stakeholders. During 2022/23 the company has continued to maintain its performance in line with those objectives.
We have continued to invest heavily in the health and safety, technical training, and development of our people along with the continuous enhancement of our working environment. Indeed, in the year the Group invested £0.4 million in capital improvements throughout the business.
Overall, we are satisfied with the performance of the business through 2022/23 and we believe that, because of the continued investment, we are well positioned to embrace the challenges which the financial year 2023/24 will bring.   
Principal risks and uncertainties
The group’s activities expose it to several financial risks including credit risk and liquidity risk. The factors described below highlight risks and uncertainties which affect the company, but they are not intended to be an exhaustive analysis of all the potential risks which may arise in the ordinary course of business.
The directors are of the opinion that sufficient internal controls have been implemented to monitor these factors and to enable timely management action to be taken to mitigate the risks.
Political risk
The war in Ukraine and the departure of the UK from the European Union continue to represent a period of uncertainty for the business as our supply chain relies heavily on materials from the EU. We are managing this risk by ensuring we have appropriate finance in place should it be needed, as well as increasing levels of stock so that any disruption does not leave us exposed.
Financial risk 
Our financial risk management objectives are to ensure sufficient working capital for the company and plans remain absolutely to our expectations.
Financial risks are managed through internal management controls, timely and accurate management information and by careful monitoring of sales activity and margins. The company does not feel it is necessary to hedge its currency or interest rate risk.
 
Page 2

 
H Marcel Guest Limited
 

Group Strategic Report (continued)
for the year ended 30 September 2023

Credit risk
The group's principal financial assets are bank balances and cash, trade, and other receivables. Its credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. The company has a credit insurance policy in place to mitigate the credit risk from trade receivables.
Liquidity risk
To maintain liquidity and to ensure that sufficient funds are available for ongoing operations and future developments the company has a mixture of long term and short-term finance.
Financial key performance indicators

The key performance indicators that are monitored on a weekly, monthly, and annual basis are revenue, profit, and cash balances, all of which are derived from the financial statements. The revenue and profit figures are stated below:

 

2023
2022

 
£'000
£'000
Revenue
25,326
24,659
Gross profit
9,983
9,568
Operating profit
1,224
1,850


The results were acceptable throughout the year and the performance marginally exceeded our budgeted expectations.


This report was approved by the board and signed on its behalf.


J S Falder
Director

Date: 22 April 2024

Page 3

 
H Marcel Guest Limited
 
 
 
Directors' Report
for the year ended 30 September 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the Group 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 for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

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

Results and dividends

The profit for the year, after taxation, amounted to £1,130,847 (2022 :£1,524,283).

The directors have declared dividends during the year of £340,000 (2022: £286,729).

Directors

The directors who served during the year were:

S B Falder 
J S Falder 
C J Falder 
J E Falder 

Future developments

The directors consider that the forthcoming financial year will be another year of solid performance, building further security for all our stakeholders. 

Research and development activities

The Group will continue to invest heavily in research and development activities in the forthcoming year to ensure that it stays at the forefront of innovation in the coatings industry. The continued investment will enable the business to offer unique innovative products for its customers.

Page 4

 
H Marcel Guest Limited
 
 
 
Directors' Report (continued)
for the year ended 30 September 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsHurst Accountants Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 


J S Falder
Director

Date: 22 April 2024

Page 5

 
H Marcel Guest Limited
 
 
 
Independent Auditors' Report to the Members of H Marcel Guest Limited
 

Opinion


We have audited the financial statements of H Marcel Guest Limited (the 'parent company') and its subsidiaries (the 'Group') for the year ended 30 September 2023, which comprise the Group Statement of Comprehensive Income, the Group and company Balance Sheets, the Group Statement of Cash Flows, the Group and company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 of the parent company's affairs as at 30 September 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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 directors' 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 or the 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 directors 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 Auditors' Report thereon.  The directors are 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.


Page 6

 
H Marcel Guest Limited
 
 
 
Independent Auditors' Report to the Members of H Marcel Guest Limited (continued)


Opinion on other matters 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 Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

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


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 Directors' Responsibilities Statement set out on page 4, 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 Group's and 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 directors either intend to liquidate the Group or the parent company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
H Marcel Guest Limited
 
 
 
Independent Auditors' Report to the Members of H Marcel Guest Limited (continued)


Auditors' 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 Auditors' 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 Group 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:

Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
 
The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud. 
Supporting documentation relating to the Company's policies and procedures for:
°Identifying, evaluating, and complying with laws and regulations
°Detecting and responding to the risks of fraud
The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, and Anti-bribery and Corruption.

Audit response to risks identified
Our procedures to respond to the risks identified included the following:
 
Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
Evaluation and testing of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
Enquiring of management about any actual and potential litigation and claims.
Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
Reading minutes of meetings of those charges with governance.
 
Page 8

 
H Marcel Guest Limited
 
 
 
Independent Auditors' Report to the Members of H Marcel Guest Limited (continued)


We have also considered the risk of fraud through management override of controls by:
 
Testing the appropriateness of journal entries and other adjustments. We have used data analytics software to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error.
Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them.  Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.


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 Auditors' Report.


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 2006Our 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 Auditors' 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.



Helen Besant Roberts (Senior Statutory Auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors
3 Stockport Exchange
Railway Road
Stockport
SK1 3GG

23 April 2024
Page 9

 
H Marcel Guest Limited
 
 
Consolidated Statement of Comprehensive Income
for the year ended 30 September 2023

2023
2022
Note
£
£

  

Turnover
 4 
25,325,744
24,659,368

Cost of sales
  
(15,342,455)
(15,091,038)

Gross profit
  
9,983,289
9,568,330

Distribution costs
  
(3,247,584)
(3,086,692)

Administrative expenses
  
(5,511,782)
(4,993,560)

Exceptional administrative income
 13 
-
362,200

Operating profit
 5 
1,223,923
1,850,278

Gain/(loss) on financial assets at fair value through profit and loss
  
24,053
(77,865)

Interest receivable and similar income
 9 
4,536
48

Interest payable and similar expenses
 10 
(1,855)
(2,580)

Profit before taxation
  
1,250,657
1,769,881

Tax on profit
 11 
(119,810)
(245,598)

Profit for the financial year
  
1,130,847
1,524,283

Profit for the year attributable to:
  

Owners of the parent company
  
1,130,847
1,524,283

There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 17 to 38 form part of these financial statements.

Page 10

 
H Marcel Guest Limited
Registered number: 00251148

Consolidated Balance Sheet
As at 30 September 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
-
14,314

Tangible fixed assets
 15 
3,696,589
3,877,866

Fixed asset investments
 16 
621,404
597,351

  
4,317,993
4,489,531

Current assets
  

Stocks
 17 
4,709,681
5,890,750

Debtors: amounts falling due after more than one year
 18 
266,863
328,449

Debtors: amounts falling due within one year
 18 
4,853,496
4,641,368

Cash at bank and in hand
 19 
3,198,596
1,570,603

  
13,028,636
12,431,170

Creditors: amounts falling due within one year
 20 
(4,832,401)
(5,174,798)

Net current assets
  
 
 
8,196,235
 
 
7,256,372

Total assets less current liabilities
  
12,514,228
11,745,903

Provisions for liabilities
  

Deferred tax
 22 
(541,833)
(564,355)

Net assets
  
11,972,395
11,181,548


Capital and reserves
  

Called up share capital 
 23 
1,000,000
1,000,000

Profit and loss account
 24 
10,972,395
10,181,548

  
11,972,395
11,181,548


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


J S Falder
Director

Date: 22 April 2024

Page 11

 
H Marcel Guest Limited
Registered number: 00251148

Company Balance Sheet
As at 30 September 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
-
14,314

Tangible assets
 15 
448,678
470,402

Fixed asset investments
 16 
2,627,528
2,603,475

  
3,076,206
3,088,191

Current assets
  

Debtors: amounts falling due after more than one year
 18 
199,720
247,878

Debtors: amounts falling due within one year
 18 
258,839
253,082

Cash at bank and in hand
 19 
479,422
555,932

  
937,981
1,056,892

Creditors: amounts falling due within one year
 20 
(757,332)
(792,528)

Net current assets
  
 
 
180,649
 
 
264,364

Total assets less current liabilities
  
3,256,855
3,352,555

  

  

Net assets
  
3,256,855
3,352,555


Capital and reserves
  

Called up share capital 
 23 
1,000,000
1,000,000

Profit and loss account brought forward
  
2,352,555
2,032,447

Profit for the year
  
244,300
606,837

Dividends

 12 

(340,000)
(286,729)

Profit and loss account carried forward
  
2,256,855
2,352,555

  
3,256,855
3,352,555


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


J S Falder
Director

Date: 22 April 2024

The notes on pages 17 to 38 form part of these financial statements.

Page 12

 
H Marcel Guest Limited
 

Consolidated Statement of Changes in Equity
for the year ended 30 September 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 October 2022
1,000,000
10,181,548
11,181,548


Comprehensive income for the year

Profit for the year
-
1,130,847
1,130,847


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
1,130,847
1,130,847


Contributions by and distributions to owners

Dividends: Equity capital
-
(340,000)
(340,000)


Total transactions with owners
-
(340,000)
(340,000)


At 30 September 2023
1,000,000
10,972,395
11,972,395



Consolidated Statement of Changes in Equity
for the year ended 30 September 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 October 2021
1,000,000
8,943,994
9,943,994


Comprehensive income for the year

Profit for the year
-
1,524,283
1,524,283


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
1,524,283
1,524,283


Contributions by and distributions to owners

Dividends: Equity capital
-
(286,729)
(286,729)


Total transactions with owners
-
(286,729)
(286,729)


At 30 September 2022
1,000,000
10,181,548
11,181,548


The notes on pages 17 to 38 form part of these financial statements.

Page 13

 
H Marcel Guest Limited
 

Company Statement of Changes in Equity
for the year ended 30 September 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 October 2022
1,000,000
2,352,555
3,352,555


Comprehensive income for the year

Profit for the year
-
244,300
244,300


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
244,300
244,300


Contributions by and distributions to owners

Dividends: Equity capital
-
(340,000)
(340,000)


Total transactions with owners
-
(340,000)
(340,000)


At 30 September 2023
1,000,000
2,256,855
3,256,855



Company Statement of Changes in Equity
for the year ended 30 September 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 October 2021
1,000,000
2,032,447
3,032,447


Comprehensive income for the year

Profit for the year
-
606,837
606,837


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
606,837
606,837


Contributions by and distributions to owners

Dividends: Equity capital
-
(286,729)
(286,729)


Total transactions with owners
-
(286,729)
(286,729)


At 30 September 2022
1,000,000
2,352,555
3,352,555


The notes on pages 17 to 38 form part of these financial statements.

Page 14

 
H Marcel Guest Limited
 

Consolidated Statement of Cash Flows
for the year ended 30 September 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
1,130,847
1,524,283

Adjustments for:

Amortisation of intangible assets
14,314
14,314

Depreciation of tangible assets
572,821
546,875

Impairments of fixed asset investments
-
3,800

Profit on disposal of tangible assets
(4,821)
-

Interest paid
1,855
2,580

Interest received
(4,536)
(48)

Taxation charge
119,810
245,598

Decrease/(increase) in stocks
1,181,069
(1,850,136)

(Increase) in debtors
(171,370)
(162,177)

(Increase)/decrease in amounts owed by associates
(11,478)
31,469

(Decrease) in creditors
(484,729)
(446,800)

Increase/(decrease) in amounts owed to associates
-
(187,837)

Net fair value (gains)/losses recognised in P&L
(24,053)
77,676

Corporation tax received/(paid)
32,306
(131,355)

Profit on the sale of investments
-
(268,200)

Net cash generated from / (used in) operating activities

2,352,035
(599,958)


Cash flows from investing activities

Purchase of tangible fixed assets
(422,531)
(1,539,095)

Sale of tangible fixed assets
35,808
397

Sale of listed investments
-
7,189

Sale of share in associates
-
343,200

Interest received
4,536
48

Net cash used in investing activities

(382,187)
(1,188,261)
Page 15

 
H Marcel Guest Limited
 

Consolidated Statement of Cash Flows (continued)
for the year ended 30 September 2023


2023
2022

£
£



Cash flows from financing activities

Repayment of loans
-
(52,859)

Dividends paid
(340,000)
(286,729)

Interest paid
(1,855)
(2,580)

Net cash used in financing activities
(341,855)
(342,168)

Net increase/(decrease) in cash and cash equivalents
1,627,993
(2,130,387)

Cash and cash equivalents at beginning of year
1,570,603
3,700,990

Cash and cash equivalents at the end of year
3,198,596
1,570,603


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,198,596
1,570,603



Consolidated Analysis of Net Debt
for the year ended 30 September 2023




At 1 October 2022
Cash flows
At 30 September 2023
£

£

£

Cash at bank and in hand

1,570,603

1,627,993

3,198,596

Debt due within 1 year

(615,162)

90,940

(524,222)


955,441
1,718,933
2,674,374

The notes on pages 17 to 38 form part of these financial statements.

Page 16

 
H Marcel Guest Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2023

1.


General information

H Marcel Guest Limited is a private company limited by shares, incorporated in England. The registered office is Riverside Works, Collyhurst Road, Manchester, M40 7RU. 
The principal activity is the manufacture of paints, surface coatings and related products and services.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
Parent company disclosure exemptions
In preparing the separate financial statements of the parent company, advantage has been taken of the following disclosure exemptions available to qualifying entities:
 
No cash flow statement or net debt reconciliation has been presented for the parent company;
No statement of comprehensive income has been presented for the parent company;
Disclosures in respect of the parent company’s income, expense, net gains and net losses on financial instruments measured at amortised cost have not been presented as equivalent disclosures have been provided in respect of the group as a whole; and
No disclosure has been given for the aggregate remuneration of the key management personnel of the parent company as their remuneration is included in the totals for the group as a whole. 
 
The following principal accounting policies have been applied:

  
2.2

Basis of consolidation

The consolidated financial statements present the results of the company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 17

 
H Marcel Guest Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2023

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.5

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 18

 
H Marcel Guest Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2023

2.Accounting policies (continued)

 
2.6

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Pensions

Defined contribution pension plan
The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations.
The contributions are recognised as an expense in the profit and loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the group in independently administered funds.
Scheme membership and benefits
The group also operates a hybrid arrangement scheme with both benefit and defined contribution elements. The benefits of "director members" are provided on a money purchase basis, but such benefits are restricted to the net assets available, having first made full provision for the benefits of all defined benefit members.
The principal employer is H Marcel Guest Limited and the participating employer is HMG Paints Limited.

Page 19

 
H Marcel Guest Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2023

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.11

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

 
2.12

Intangible assets

Acquired trademarks are shown at historical cost. The trademark is being amortised over the 10 years. This is also subject to an annual impairment review.

 
2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 20

 
H Marcel Guest Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2023

2.Accounting policies (continued)


2.13
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Freehold property
-
2%
straight line
Plant and machinery
-
15%
reducing balance
Motor vehicles
-
25%
reducing balance
Fixtures and fittings
-
20%
reducing balance / 33.33% straight line
Office equipment
-
20%
reducing balance / 33.33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.14

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.
Investments in unlisted group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated profit and loss the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
Investments in listed company shares are remeasured to market value at each Balance Sheet date. Gains and losses on remeasurement are recognised in profit and loss for the period.

Page 21

 
H Marcel Guest Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2023

2.Accounting policies (continued)

 
2.16

Associates and joint ventures

An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the Group to undertake an economic activity that is subject to joint control.

An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Statement of Comprehensive Income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Balance Sheet, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition.
Any premium on acquisition is dealt with in accordance with the goodwill policy.

 
2.17

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is 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.

 
2.18

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.19

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.20

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 22

 
H Marcel Guest Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2023

2.Accounting policies (continued)

 
2.21

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

 
2.22

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. . 

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

 
2.23

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 23

 
H Marcel Guest Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. The nature of estimation means that actual outcomes could different from those estimates. The items in the financial statements where these judgements and estimates have been made include:
Stock provision
Stock is reviewed to assess obsolescence on a regular basis. In determining whether provision for obsolescence should be recorded in profit and loss, the company makes judgements as to whether there is any observable data indicating that there is any future saleability of the product and the estimated net realisable value for such product. Accordingly, provision for impairment is made where the net realisable value is less than the cost based on best estimates by the management. The provision for obsolescence of stock is based on the ageing and historical sales pattern. As at 30 September 2023, the value of stock net of provision was £4,709,681 (2022: £5,890,750).
Stock valuation and overhead absorption
Stock is valued including raw material costs, production labour and an allocation of production related overheads. The overhead calculation is based on a judgement of the production element of certain overheads which may differ from the actual.  As at 30 September 2023, the value of labour and overheads included in stock was £677,951 (2022: £732,538).
Other estimates and judgements
Management exercises judgement in providing for impairment loss on trade receivables. The balance of trade receivables as at 30 September 2023, net of provision was £4,284,012 (2022: £4,147,454).
Management of the company also exercises judgement in estimating the useful economic life of property, plant and equipment, such estimations are reviewed regularly to ensure they remain appropriate. The net book value of fixed assets as at 30 September 2023 was £3,696,589 
(2022: £3,877,866).
Should these estimates vary, the profit or loss and balance sheet of the following years could be significantly impacted.


4.


Turnover

The whole of the turnover is attributable to the sales of paint products.

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
24,387,271
23,633,548

Rest of Europe
875,257
803,158

Rest of the world
63,216
222,662

25,325,744
24,659,368


Page 24

 
H Marcel Guest Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2023

5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Amortisation of intangible assets, including goodwill
14,314
14,314

Defined contribution pension cost
244,033
227,288

Defined benefit pension cost
-
202

Depreciation of tangible fixed assets
572,821
546,875

Exchange differences
16,330
26,390

Research & development charged as an expense
6,470
12,178


6.


Auditors' remuneration

During the year, the Group obtained the following services from the company's auditors:


2023
2022
£
£

Audit of the Group's and subsidiary annual financial statements
35,450
31,550

Fees payable to the Group's auditor and its associates in respect of:

Taxation compliance services
3,300
3,150

Other services relating to taxation
11,500
15,675

The auditing of a pension scheme associated with the company pursuant to legislation
8,300
8,300

All other services
975
4,750

Page 25

 
H Marcel Guest Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2023

7.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

  

Wages and salaries
  
6,282,594
5,973,059
105,901
82,800

Social security costs
  
619,352
596,544
4,383
4,488

Cost of defined benefit scheme
  
-
202
-
202

Cost of defined contribution scheme
  
244,033
227,288
-
-

  
7,145,979
6,797,093
110,284
87,490


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Production
72
77



Selling and distribution
71
75



Administration
31
26



Research and development
16
19

190
197


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
172,929
196,165


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.


9.


Interest receivable

2023
2022
£
£


Other interest receivable
4,536
48

Page 26

 
H Marcel Guest Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2023

10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
-
781

Other interest payable
1,855
1,799

1,855
2,580


11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
142,332
-

Adjustments in respect of previous periods
-
(26,950)


Total current tax
142,332
(26,950)

Deferred tax


Origination and reversal of timing differences
(22,522)
272,548

Total deferred tax
(22,522)
272,548


Taxation on profit on ordinary activities
119,810
245,598
Page 27

 
H Marcel Guest Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 22% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,250,657
1,769,881


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 22% (2022 - 19%)
275,145
336,277

Effects of:


Non-tax deductible amortisation of goodwill and impairment
14,314
2,720

Expenses not deductible for tax purposes
3,441
2,668

Fixed asset timing differences
16,419
(40,017)

Adjustments to tax charge in respect of prior periods
-
(26,950)

Marginal relief
(465)
-

Short term timing difference leading to a increase in taxation
-
514

Other timing differences leading to a decrease in taxation
-
(751)

Adjustment in research and development tax credit leading to a (decrease) in the tax charge
(169,799)
(145,657)

Profit on disposal of subsidiary
-
(50,958)

Utilisation of tax losses
-
32,306

Adjustments in respect of a change in corporation tax rate
(19,245)
135,446

Total tax charge for the year
119,810
245,598


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

From 1 April 2023 the main rate of corporation tax increased to 25%. The 22% rate used above reflects 6 months of the new rate and 6 months of the previous rate of 19%.


12.


Dividends

2023
2022
£
£


Dividends payable on equity shares
340,000
286,729

Page 28

 
H Marcel Guest Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2023

13.


Exceptional items

2023
2022
£
£


Sale of assets in relation to the powder coatings operation
-
(94,000)

Profit on disposal of investment
-
(268,200)

-
(362,200)

During the prior year, HMG Paints Limited sold the assets in relation to the powder coatings operations to HMG Powder Coatings (Midlands) Limited for £94,000. 
During the prior year, the Group disposed of its 50% shareholding in HMG Coatings (Midlands) Ltd for a book profit of £268,200.


14.


Intangible assets

Group and Company





Trademarks

£



Cost


At 1 October 2022
273,195



At 30 September 2023

273,195



Amortisation


At 1 October 2022
258,881


Charge for the year
14,314



At 30 September 2023

273,195



Net book value



At 30 September 2023
-



At 30 September 2022
14,314

The trademark represents the payments under the terms of the contract to acquire the Gipgloss trademark and related nitrocellulose technology.



Page 29

 
H Marcel Guest Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2023

15.


Tangible fixed assets

Group






Freehold property
Property improve-  ments
Plant and machinery
Motor vehicles
Fixtures and fittings and Office equipment
Total

£
£
£
£
£
£



Cost or valuation


At 1 October 2022
1,155,252
1,499,878
6,082,108
506,041
1,246,741
10,490,020


Additions
2,195
85,642
223,442
59,544
51,708
422,531


Disposals
-
-
-
(135,751)
-
(135,751)



At 30 September 2023

1,157,447
1,585,520
6,305,550
429,834
1,298,449
10,776,800



Depreciation


At 1 October 2022
688,106
459,098
3,991,326
278,996
1,194,628
6,612,154


Charge for the year
23,105
110,301
336,485
56,797
46,133
572,821


Disposals
-
-
-
(104,764)
-
(104,764)



At 30 September 2023

711,211
569,399
4,327,811
231,029
1,240,761
7,080,211



Net book value



At 30 September 2023
446,236
1,016,121
1,977,739
198,805
57,688
3,696,589



At 30 September 2022
467,146
1,040,780
2,090,782
227,045
52,113
3,877,866

Page 30

 
H Marcel Guest Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2023

           15.Tangible fixed assets (continued)


Company






Freehold property
Motor vehicles
Total

£
£
£

Cost or valuation


At 1 October 2022
1,155,252
10,320
1,165,572


Additions
2,195
-
2,195



At 30 September 2023

1,157,447
10,320
1,167,767



Depreciation


At 1 October 2022
688,106
7,064
695,170


Charge for the year
23,105
814
23,919



At 30 September 2023

711,211
7,878
719,089



Net book value



At 30 September 2023
446,236
2,442
448,678



At 30 September 2022
467,146
3,256
470,402






Page 31

 
H Marcel Guest Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2023

16.


Fixed asset investments

Group





Investments in associates
Listed investments
Unlisted investments
Total

£
£
£
£



Cost or valuation


At 1 October 2022
24,500
522,826
50,025
597,351


Foreign exchange movement
-
(35,569)
-
(35,569)


Revaluations
-
59,622
-
59,622



At 30 September 2023
24,500
546,879
50,025
621,404






Net book value



At 30 September 2023
24,500
546,879
50,025
621,404



At 30 September 2022
24,500
522,826
50,025
597,351

The group holds a 49% equity investment in Vintro Paints Limited, a 25% equity investment in CC Solutions Limited and a 51% equity investment in Preservation Paints Limited. These investments are accounted for on a cost basis.

Page 32

 
H Marcel Guest Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2023
Company





Investments in subsidiary companies
Investments in associates
Listed investments
Unlisted investments
Total

£
£
£
£
£



Cost or valuation


At 1 October 2022
2,361,115
24,500
522,826
50,025
2,958,466


Foreign exchange movement
-
-
(35,569)
-
(35,569)


Revaluations
-
-
59,622
-
59,622



At 30 September 2023

2,361,115
24,500
546,879
50,025
2,982,519



Impairment


At 1 October 2022
354,991
-
-
-
354,991



At 30 September 2023

354,991
-
-
-
354,991



Net book value



At 30 September 2023
2,006,124
24,500
546,879
50,025
2,627,528



At 30 September 2022
2,006,124
24,500
522,826
50,025
2,603,475


Subsidiary undertakings


The following were subsidiary undertakings of the company:

Name

Registered office

Principal activity

Class of shares

Holding

HMG Paints Limited
Manufacture of paints, surface coatings and related products and services.
Ordinary
100%
Cadulac Chemicals Limited
Dormant
Ordinary
100%
HMG Coatings (London) Limited
Dormant
Ordinary
100%
HMG Paints (Europe) Limited
Snowflake, Main Street, Clonmany, Co. Donegal, Donegal, Ireland, F93 R6X0
Dormant
Ordinary
100%
W.H. Screeton Associates Limited
Dormant
Ordinary
100%

Unless stated, the registered address of the subsidiary companies is Riverside Works, Collyhurst Road, Manchester M40 7RU.

Page 33

 
H Marcel Guest Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2023

Associates


The following were associates of the company:


Name

Registered office

Class of shares

Holding

CC Solutions Limited
349 Bury Old Road, Prestwich, 
Manchester M25 1PY
Ordinary
25%
Preservation Paints Limited
Riverside Works, Collyhurst Road, Manchester M40 7RU
Ordinary
51%
Vintro Paint Limited
707c Street 3, 
Thorp Arch Estate, 
Wetherby LS23 7FF
Ordinary
49%


17.


Stocks

Group
Group
2023
2022
£
£

Raw materials and consumables
2,544,900
3,677,521

Finished goods and goods for resale
2,164,781
2,213,229

4,709,681
5,890,750


The carrying value of stocks is stated net of impairment losses totalling £299,311 (2022: £373,625). Impairment gains totalling £25,686 (2022: £21,027) were recognised in profit and loss.


18.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Due after more than one year

Other debtors
266,863
328,449
199,720
247,878


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Due within one year

Trade debtors
4,284,012
4,147,454
-
-

Amounts owed by group undertakings
-
-
136,067
103,843

Amounts owed by joint ventures and associated undertakings
156,146
144,668
35,480
38,415

Other debtors
187,419
175,419
75,308
99,447

Prepayments and accrued income
225,919
173,827
11,174
10,458
Page 34

 
H Marcel Guest Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2023

18.Debtors (continued)


Deferred taxation
-
-
810
919

4,853,496
4,641,368
258,839
253,082


An impairment loss was recognised in the year against trade debtors of £10,437 (2022: £305). Additionally, an impairment gain was recognised in the year against amounts owed by associated undertakings of £4,000 (2022: loss of £40,103).


19.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
3,198,596
1,570,603
479,422
555,932



20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
2,858,230
3,324,642
27,854
14,058

Amounts owed to group undertakings
-
-
188,277
150,746

Corporation tax
142,332
-
4,209
-

Other taxation and social security
769,379
561,037
2,421
1,813

Other creditors
620,523
689,172
525,371
616,311

Accruals and deferred income
441,937
599,947
9,200
9,600

4,832,401
5,174,798
757,332
792,528



21.


Financial instruments

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
546,879
522,826
546,879
522,826




Financial assets measured at fair value through profit or loss comprise fixed asset investments.

Page 35

 
H Marcel Guest Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2023

22.


Deferred taxation


Group



2023
2022


£

£






At beginning of year
(564,355)
(291,807)


Charged to profit or loss
22,522
(272,548)



At end of year
(541,833)
(564,355)

Company


2023
2022


£

£






At beginning of year
919
721


Charged to profit or loss
(109)
198



At end of year
810
919

The provision for deferred taxation is made up as follows:

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
(551,462)
(573,807)
810
919

Other timing differences
9,629
9,452
-
-

(541,833)
(564,355)
810
919


23.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,000,000 (2022 - 1,000,000) Ordinary shares of £1.00 each
1,000,000
1,000,000


Page 36

 
H Marcel Guest Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2023

24.


Reserves

Profit and loss account
The profit and loss account includes all current and prior period retained profits and losses after dividends paid.


25.


Pension commitments

The group operates a defined contribution pension scheme and also a hybrid arrangement with both defined benefit and defined contribution elements. The assets of the schemes are held separately from those of the company in individual independently administered funds. The pension cost charge represents contributions payable by the group to the fund and amounted to £244,043 in relation to defined contribution schemes (2022: £227,288) and £Nil (2022: £202) in relation to hybrid schemes.  Contributions totalling £38,518 (2022: £37,808) were payable to the funds at the balance sheet date.


26.


Commitments under operating leases

At 30 September 2023 the Group and the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Not later than 1 year
287,767
289,709

Later than 1 year and not later than 5 years
486,225
99,315

773,992
389,024

27.


Transactions with directors

Included within other debtors due within one year is an interest-free loan to a director totalling £5,000 (2022: £5,000). This is in relation to purchasing a new car which is used by the director for personal and business reasons. The amount will be repaid should the director cease their employment with the business or dispose of the car.

Page 37

 
H Marcel Guest Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2023

28.


Related party transactions

The group has taken advantage of the exemptions available under FRS 102 Section 33 "Related Party Transactions" not to disclose transactions with other wholly owned group companies.
During the year the group made sales to associated companies totalling £161,038 
(2022: £335,870).
During the year the group made purchases from associated companies totalling £154,817 
(2022: £272,48).
At 30 September 2023 amounts due to the group from associated companies totalled £249,258
 (2022:£Nil) and amounts due from the group to associated companies totalled £2,400 (2022: £240,882).
At 30 September 2023 the group has a provision against trade receivables from companies with common directors totalling £92,206 (2022: £96,206).
Group key management personnel remuneration totalled £1,827,765, relating to 34 personnel 
(2022: £1,051,340, personnel:11).
Company
During the year the company made purchases from associated companies totalling £121,601 (2022: £114,890), and the company made sales to associated companies totalling £2,640 (2022: £2,640).
At 30 September 2023 amounts due to the company from associated companies totalled £72,376 
(2022: £39,735). At 30 September 2023 the company has a provision against trade receivables from associated companies totalling £36,000 (2022: £Nil). 


29.


Controlling party

In the opinion of the director, the ultimate controlling party, by virtue of their shareholding are the Falder family.

 
Page 38