Company registration number 11531731 (England and Wales)
MCCARTHY MARLAND H1 LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2022
MCCARTHY MARLAND H1 LTD
COMPANY INFORMATION
Directors
Mr A Marland
(Appointed 29 July 2022)
K McCarthy
(Appointed 29 July 2022)
Company number
11531731
Registered office
82 St John Street
London
EC1M 4JN
Auditor
Beavis Morgan Audit Limited
82 St John Street
London
EC1M 4JN
MCCARTHY MARLAND H1 LTD
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 5
Profit and loss account
6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 27
MCCARTHY MARLAND H1 LTD
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 JUNE 2022
- 1 -

The directors present the strategic report for the period ended 30 June 2022.

Principal activities

The principal activity of the company during the year was skip hire and waste management.

Fair review of the business

The company generated turnover of £2.3m for the 15 months to June 22, with a reduced gross margin of 29% (2021: 31%).   Because of a reduced margin and increased overheads, the company’s profit before tax fell to £65k (2021: £445k).

The Directors have reviewed the company's performance with reference to relevant financial performance indicators and consider it to be satisfactory. The Directors also reviewed the risks and uncertainties faced by the company to enable them to develop strategies that allow the company to continue to develop its business and profitability along similar lines in future.

Principal risks and uncertainties

General economic conditions and market competition are regularly reviewed with the financial requirements and objectives of the company.

 

The company monitors credit risk closely and considers its current policies meet its objectives of managing exposure to credit risk.

 

The company monitors its access to bank and other credit facilities in comparison to its outstanding commitments to ensure it has sufficient funds to meet its obligations as they fall due.

Developments after the year end

The company was acquired by McCarthy Marland Group at end July, 2022, and its trade, assets and liabilities were transferred up to other McCarthy Marland Group companies at end November, 2022. Since that date, the Company has remained dormant.

On behalf of the board

Mr A Marland
Director
7 February 2024
MCCARTHY MARLAND H1 LTD
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 JUNE 2022
- 2 -

The directors present their annual report and financial statements for the period ended 30 June 2022.

Results and dividends

The results for the period are set out on page 6.

Ordinary dividends were paid amounting to £500,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

Mr A Marland
(Appointed 29 July 2022)
K McCarthy
(Appointed 29 July 2022)
J Burnett
(Resigned 29 July 2022)
M Burnett
(Resigned 29 July 2022)
C Head
(Resigned 29 July 2022)
W Head
(Resigned 29 July 2022)
J Stevenson
(Resigned 29 July 2022)
M Stevenson
(Resigned 29 July 2022)
Auditor

Beavis Morgan Audit Limited were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed 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 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
Mr A Marland
Director
7 February 2024
MCCARTHY MARLAND H1 LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 30 JUNE 2022
- 3 -

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

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are 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. They are 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.

MCCARTHY MARLAND H1 LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MCCARTHY MARLAND H1 LTD
- 4 -

Disclaimer of opinion on the financial statements

We were engaged to audit the financial statements of McCarthy Marland H1 Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 30 June 2022 which compromise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 Acceptable Accounting Practice).

We do not express an opinion on the accompanying financial statements of the parent company and the group. Because of the significance of the matter described in the basis for the disclaimer of opinion section of the report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.

Basis for disclaimer of opinion

The previous shareholders sold the company on the 29th July 2022. As a result of this sale, and the previous directors of the company resigning, accounting records and documentation relating to the period ended 30 June 2022 have been lost or misplaced. Given this, we have been unable to obtain sufficient appropriate audit evidence to support the results and financial position of the parent company and the group as presented in the accompanying financial statements.

Opinions on other matters prescribed by the Companies Act 2006

Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have been unable to form an opinion whether:

 

 

Matters on which we are required to report by exception

Notwithstanding our disclaimer of an opinion on the financial statements, in the light of the knowledge and understanding of the parent company and the group and their environment obtained in the course of the audit performed, subject to pervasive limitation described above, we have not identified material misstatements in the strategic report or the directors' report.

 

Arising from the limitation of our work referred to above:

 

 

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

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

MCCARTHY MARLAND H1 LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MCCARTHY MARLAND H1 LTD
- 5 -
Auditor's responsibilities for the audit of the financial statements

Our responsibility is to conduct an audit of the financial statements in accordance with International Standards on Auditing (UK) and to issue an auditor's report.

 

However, because of the matter described in the basis for disclaimer of opinion section of our report, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements.

 

We are independent of the parent company and the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

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.

Matthew Burge (Senior Statutory Auditor)
For and on behalf of Beavis Morgan Audit Limited
8 February 2024
Chartered Accountants
Statutory Auditor
82 St John Street
London
EC1M 4JN
MCCARTHY MARLAND H1 LTD
GROUP PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 30 JUNE 2022
- 6 -
Period
Year
ended
ended
30 June
31 March
2022
2021
Notes
£
£
Turnover
3
12,527,630
10,183,027
Cost of sales
(8,894,585)
(6,998,566)
Gross profit
3,633,045
3,184,461
Administrative expenses
(3,463,304)
(2,636,616)
Operating profit
4
169,741
547,845
Interest receivable and similar income
7
1,135
236
Interest payable and similar expenses
8
(105,614)
(103,474)
Profit before taxation
65,262
444,607
Tax on profit
9
(286,252)
140,417
(Loss)/profit for the financial period
(220,990)
585,024

The profit and loss account has been prepared on the basis that all operations are continuing operations.

MCCARTHY MARLAND H1 LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2022
- 7 -
Period
Year
ended
ended
30 June
31 March
2022
2021
£
£
(Loss)/profit for the period
(220,990)
585,024
Other comprehensive income
-
-
Total comprehensive income for the period
(220,990)
585,024
Total comprehensive income for the period is all attributable to the owners of the parent company.
MCCARTHY MARLAND H1 LTD
GROUP BALANCE SHEET
AS AT
30 JUNE 2022
30 June 2022
- 8 -
30 June 2022
31 March 2021
Notes
£
£
£
£
Fixed assets
Goodwill
11
3,506,367
4,264,915
Tangible assets
12
5,547,054
6,081,954
9,053,421
10,346,869
Current assets
Debtors
15
1,063,275
1,573,842
Cash at bank and in hand
2,524,262
2,163,597
3,587,537
3,737,439
Creditors: amounts falling due within one year
16
(3,032,784)
(2,120,069)
Net current assets
554,753
1,617,370
Total assets less current liabilities
9,608,174
11,964,239
Creditors: amounts falling due after more than one year
17
(521,190)
(2,273,947)
Provisions for liabilities
Deferred tax liability
20
452,222
334,540
(452,222)
(334,540)
Net assets
8,634,762
9,355,752
Capital and reserves
Called up share capital
22
9,639,375
9,639,375
Profit and loss reserves
(1,004,613)
(283,623)
Total equity
8,634,762
9,355,752
The financial statements were approved by the board of directors and authorised for issue on 7 February 2024 and are signed on its behalf by:
07 February 2024
Mr A Marland
Director
Company registration number 11531731 (England and Wales)
MCCARTHY MARLAND H1 LTD
COMPANY BALANCE SHEET
AS AT 30 JUNE 2022
30 June 2022
- 9 -
30 June 2022
31 March 2021
Notes
£
£
£
£
Fixed assets
Investments
13
9,639,000
9,639,000
Current assets
Debtors
15
750,375
750,375
Cash at bank and in hand
-
0
591,328
750,375
1,341,703
Creditors: amounts falling due within one year
16
(5,000)
(596,328)
Net current assets
745,375
745,375
Net assets
10,384,375
10,384,375
Capital and reserves
Called up share capital
22
9,639,375
9,639,375
Profit and loss reserves
745,000
745,000
Total equity
10,384,375
10,384,375

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 period was £500,000 (2021 - £750,000 profit).

The financial statements were approved by the board of directors and authorised for issue on 7 February 2024 and are signed on its behalf by:
07 February 2024
Mr A Marland
Director
Company registration number 11531731 (England and Wales)
MCCARTHY MARLAND H1 LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2022
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2020
9,639,375
(368,647)
9,270,728
Year ended 31 March 2021:
Profit and total comprehensive income
-
585,024
585,024
Dividends
10
-
(500,000)
(500,000)
Balance at 31 March 2021
9,639,375
(283,623)
9,355,752
Period ended 30 June 2022:
Loss and total comprehensive income
-
(220,990)
(220,990)
Dividends
10
-
(500,000)
(500,000)
Balance at 30 June 2022
9,639,375
(1,004,613)
8,634,762
MCCARTHY MARLAND H1 LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2022
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2020
9,639,375
495,000
10,134,375
Year ended 31 March 2021:
Profit and total comprehensive income for the year
-
750,000
750,000
Dividends
10
-
(500,000)
(500,000)
Balance at 31 March 2021
9,639,375
745,000
10,384,375
Period ended 30 June 2022:
Profit and total comprehensive income
-
500,000
500,000
Dividends
10
-
(500,000)
(500,000)
Balance at 30 June 2022
9,639,375
745,000
10,384,375
MCCARTHY MARLAND H1 LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 JUNE 2022
- 12 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
1,807,961
2,025,532
Interest paid
(105,614)
(103,474)
Income taxes refunded
170,521
128,230
Net cash inflow from operating activities
1,872,868
2,050,288
Investing activities
Purchase of tangible fixed assets
(436,319)
(779,385)
Proceeds on disposal of tangible fixed assets
188,934
163,830
Interest received
1,135
236
Net cash used in investing activities
(246,250)
(615,319)
Financing activities
Proceeds from other borrowing draw downs
-
300,530
Repayment of bank loans
(459,787)
(187,682)
Payment of finance leases obligations
(306,166)
(339,463)
Dividends paid to equity shareholders
(500,000)
(500,000)
Net cash used in financing activities
(1,265,953)
(726,615)
Net increase in cash and cash equivalents
360,665
708,354
Cash and cash equivalents at beginning of period
2,163,597
1,455,243
Cash and cash equivalents at end of period
2,524,262
2,163,597
MCCARTHY MARLAND H1 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2022
- 13 -
1
Accounting policies
Company information

McCarthy Marland H1 Limited ("the company") is a private limited company domiciled and incorporated in England and Wales. The registered office is 82 St. John Street, London, England, EC1M 4JN.

 

The group consists of McCarthy Marland H1 Limited and all of its subsidiaries.

1.1
Reporting period

The current accounting period has been lengthened and relates to the period from 1st April 2021 to 30th June 2022. The period was lengthened as the group was sold in July 2022. This accounting period represents the last set of financial statements whilst the entity was under the control of the previous shareholders.

1.2
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. 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.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.3
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

MCCARTHY MARLAND H1 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 14 -
1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company, McCarthy Marland H1 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.

 

All financial statements are made up to 30 June 2022. 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.

1.5
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.6
Turnover

The turnover shown in the profit and loss account arises from the following activities during the year, and is shown on the basis as set out below, exclusive of VAT:

 

Skip hiring services are recognised at the point of delivery of the skip to the customer.

 

Services for the provision of plant hire and labour are recongised at the point at which the contractual obligations to the customer have been fulfilled.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
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:

Freehold land and buildings
1% straight line
Plant and equipment
15% and 20% reducing balance and 15% straight line
Motor vehicles
25% and 35% reducing balance and 25% straight line

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

MCCARTHY MARLAND H1 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 15 -
1.9
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, associates and jointly controlled entities 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.

1.10
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.

1.11
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.

MCCARTHY MARLAND H1 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 16 -
1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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.

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.

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.

MCCARTHY MARLAND H1 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 17 -
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.

Derecognition of financial liabilities

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

1.13
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.

1.14
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.

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.

MCCARTHY MARLAND H1 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
1
Accounting policies
(Continued)
- 18 -
1.15
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.

1.16
Retirement benefits

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

1.17
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.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are 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.

3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Waste disposal and reclamation
12,527,630
10,183,027
MCCARTHY MARLAND H1 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
3
Turnover and other revenue
(Continued)
- 19 -
2022
2021
£
£
Other revenue
Interest income
1,135
236
4
Operating profit
2022
2021
£
£
Operating profit for the period is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
801,683
678,998
(Profit)/loss on disposal of tangible fixed assets
(19,398)
13,794
Amortisation of intangible assets
758,548
606,839
Operating lease charges
531,175
344,796
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
15,100
1,855
Audit of the financial statements of the company's subsidiaries
12,125
7,365
27,225
9,220
6
Employees

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

Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Production
66
77
-
-
Administration and support
15
7
-
-
Total
81
84
-
0
-
0
MCCARTHY MARLAND H1 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
6
Employees
(Continued)
- 20 -

Their aggregate remuneration comprised:

Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
3,112,259
2,410,998
-
0
-
0
Social security costs
315,179
235,539
-
-
Pension costs
124,329
53,706
-
0
-
0
3,551,767
2,700,243
-
0
-
0
7
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
118
236
Other interest income
1,017
-
Total income
1,135
236
8
Interest payable and similar expenses
2022
2021
£
£
Other interest on financial liabilities
62,837
61,472
Interest on finance leases and hire purchase contracts
42,777
42,002
Total finance costs
105,614
103,474
9
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
168,570
(193,392)
Adjustments in respect of prior periods
-
0
(45,538)
Total current tax
168,570
(238,930)
Deferred tax
Origination and reversal of timing differences
117,682
98,513
Total tax charge/(credit)
286,252
(140,417)
MCCARTHY MARLAND H1 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
9
Taxation
(Continued)
- 21 -

The actual charge/(credit) for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
Profit before taxation
65,262
444,607
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
12,400
84,475
Tax effect of expenses that are not deductible in determining taxable profit
41,385
369
Unutilised tax losses carried forward
(610)
-
0
Effect of change in corporation tax rate
-
5,501
Permanent capital allowances in excess of depreciation
(186,010)
-
Depreciation on assets not qualifying for tax allowances
33,545
30,291
Amortisation on assets not qualifying for tax allowances
119,210
95,368
Research and development tax credit
-
0
(310,883)
Under/(over) provided in prior years
-
0
(45,538)
Deferred tax adjustments in respect of prior years
157,800
-
0
Effect of change in deferred tax rate
108,532
-
0
Taxation charge/(credit)
286,252
(140,417)
10
Dividends
2022
2021
Recognised as distributions to equity holders:
£
£
Interim paid
500,000
500,000
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2021 and 30 June 2022
6,110,995
Amortisation and impairment
At 1 April 2021
1,846,080
Amortisation charged for the period
758,548
At 30 June 2022
2,604,628
Carrying amount
At 30 June 2022
3,506,367
At 31 March 2021
4,264,915
MCCARTHY MARLAND H1 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
11
Intangible fixed assets
(Continued)
- 22 -
The company had no intangible fixed assets at 30 June 2022 or 31 March 2021.
12
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2021
2,997,192
4,014,674
1,598,291
8,610,157
Additions
68,689
401,132
123,724
593,545
Disposals
-
0
(245,217)
(384,860)
(630,077)
Transfers
355,661
476,787
127,668
960,116
At 30 June 2022
3,421,542
4,647,376
1,464,823
9,533,741
Depreciation and impairment
At 1 April 2021
214,798
1,625,486
687,919
2,528,203
Depreciation charged in the period
45,427
514,980
241,276
801,683
Eliminated in respect of disposals
-
0
(137,773)
(322,768)
(460,541)
Transfers
354,973
469,597
292,772
1,117,342
At 30 June 2022
615,198
2,472,290
899,199
3,986,687
Carrying amount
At 30 June 2022
2,806,344
2,175,086
565,624
5,547,054
At 31 March 2021
2,782,394
2,389,188
910,372
6,081,954
The company had no tangible fixed assets at 30 June 2022 or 31 March 2021.

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
2022
2021
2022
2021
£
£
£
£
Plant and equipment
501,678
859,286
-
0
-
0
13
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
9,639,000
9,639,000
MCCARTHY MARLAND H1 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
13
Fixed asset investments
(Continued)
- 23 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2021 and 30 June 2022
9,639,000
Carrying amount
At 30 June 2022
9,639,000
At 31 March 2021
9,639,000
14
Subsidiaries

Details of the company's subsidiaries at 30 June 2022 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
McCarthy Marland H2 Ltd
England & Wales
Waste management
Ordinary
100.00
-
Valley Trading Limited
England & Wales
Dormant
Ordinary
-
100.00
Aasvogel Skip Hire Limited
England & Wales
Dormant
Ordinary
-
100.00

All companies listed above are registered at 82 St. John Street, London, England, EC1M 4JN.

15
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
820,991
903,120
-
0
-
0
Unpaid share capital
375
375
375
375
Corporation tax recoverable
-
0
168,251
-
0
-
0
Amounts owed by group undertakings
-
-
750,000
750,000
Other debtors
-
261,585
-
0
-
0
Prepayments and accrued income
241,909
240,511
-
0
-
0
1,063,275
1,573,842
750,375
750,375
MCCARTHY MARLAND H1 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
- 24 -
16
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans
18
1,398,919
341,864
-
0
-
0
Obligations under finance leases
19
368,824
439,075
-
0
-
0
Trade creditors
561,358
760,522
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
-
0
591,328
Corporation tax payable
170,840
-
0
-
0
-
0
Other taxation and social security
299,647
265,635
-
-
Other creditors
4,651
72,977
-
0
-
0
Accruals and deferred income
228,545
239,996
5,000
5,000
3,032,784
2,120,069
5,000
596,328
17
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
18
-
0
1,516,842
-
0
-
0
Obligations under finance leases
19
521,190
757,105
-
0
-
0
521,190
2,273,947
-
-
18
Loans and overdrafts
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans
1,398,919
1,858,706
-
0
-
0
Payable within one year
1,398,919
341,864
-
0
-
0
Payable after one year
-
0
1,516,842
-
0
-
0

The long-term loans are secured by fixed charges over property owned by the group.

The bank loans are denominated in GBP with a nominal interest rate of between 3.03% and 4.2%. The bank loans were settled in full post year-end, in July 2022.

MCCARTHY MARLAND H1 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
- 25 -
19
Finance lease obligations
Group
Company
2022
2021
2022
2021
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
368,824
439,075
-
0
-
0
In two to five years
521,190
757,105
-
0
-
0
890,014
1,196,180
-
-

Finance lease liabilities are denominated in GBP with a nominal interest rate of between 2.40% and 7.35%, and the final installment is due in November 2025.

20
Deferred taxation

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

Liabilities
Liabilities
2022
2021
Group
£
£
Accelerated capital allowances
453,402
334,540
Other short term timing differences
(1,180)
-
452,222
334,540
The company has no deferred tax assets or liabilities.
Group
Company
2022
2022
Movements in the period:
£
£
Liability at 1 April 2021
334,540
-
Charge to profit or loss
117,682
-
Liability at 30 June 2022
452,222
-

Deferred tax is provided in full without discounting on all tax deferred resulting from reversing timing differences at the rate of corporation tax anticipated to apply at the time of future reversal of the timing difference. Deferred tax liabilities are expected to reverse within the next 12 months. The future rate of corporation tax applied to timing differences is 25%.

MCCARTHY MARLAND H1 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
- 26 -
21
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
124,329
53,706

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

 

At the balance sheet date, the group owed £10,712 (2021: £27,289) to the scheme.

22
Share capital
Group and company
2022
2021
2022
2021
Number
Number
£
£
Ordinary share capital
Issued and not fully paid
Ordinary shares of £1 each
375
375
375
375
Ordinary A shares of £1 each
9,639,000
9,639,000
9,639,000
9,639,000
9,639,375
9,639,375
9,639,375
9,639,375

375 Ordinary shares are unpaid and are included within debtors

23
Operating lease commitments
Lessee

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
2022
2021
2022
2021
£
£
£
£
Within one year
203,960
203,960
-
-
Between two and five years
205,650
409,610
-
-
409,610
613,570
-
-
24
Events after the reporting date

On the 29th July 2022, the entire share capital of McCarthy Marland H1 Limited was acquired by McCarthy Marland Limited for total consideration of approximately £10.7m.

25
Related party transactions

Balances with companies controlled by the company are disclosed within debtors and creditors noted. Advantage has been taken of the exemption within section 33 of FRS 102 not to disclose transactions with wholly-owned subsidiary undertakings.

MCCARTHY MARLAND H1 LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2022
- 27 -
26
Controlling party

During the financial period, there was no single ultimate controlling party.

 

McCarthy Marland H1 Limited is the smallest and largest group for which financial statements are prepared and are available to the public.

27
Cash generated from group operations
2022
2021
£
£
(Loss)/profit for the period after tax
(220,990)
585,024
Adjustments for:
Taxation charged/(credited)
286,252
(140,417)
Finance costs
105,614
103,474
Investment income
(1,135)
(236)
(Gain)/loss on disposal of tangible fixed assets
(19,398)
13,794
Amortisation and impairment of intangible assets
758,548
606,839
Depreciation and impairment of tangible fixed assets
801,683
678,998
Increase in provisions
-
98,513
Movements in working capital:
Decrease/(increase) in debtors
342,316
(205,157)
(Decrease)/increase in creditors
(244,929)
284,700
Cash generated from operations
1,807,961
2,025,532
28
Analysis of changes in net funds/(debt) - group
1 April 2021
Cash flows
30 June 2022
£
£
£
Cash at bank and in hand
2,163,597
360,665
2,524,262
Borrowings excluding overdrafts
(1,858,706)
459,787
(1,398,919)
Obligations under finance leases
(1,196,180)
306,166
(890,014)
(891,289)
1,126,618
235,329
2022-06-302021-04-01falseCCH SoftwareCCH Accounts Production 2023.300Mr A MarlandK McCarthyJ BurnettM BurnettC HeadW HeadJ StevensonM Stevensonfalse11531731bus:Consolidated2021-04-012022-06-30115317312021-04-012022-06-3011531731bus:Director12021-04-012022-06-3011531731bus:Director22021-04-012022-06-3011531731bus:Director32021-04-012022-06-3011531731bus:Director42021-04-012022-06-3011531731bus:Director52021-04-012022-06-3011531731bus:Director62021-04-012022-06-3011531731bus:Director72021-04-012022-06-3011531731bus:Director82021-04-012022-06-3011531731bus:RegisteredOffice2021-04-012022-06-30115317312022-06-3011531731bus:Consolidated2020-04-012021-03-31115317312020-04-012021-03-3111531731bus:Consolidated2022-06-3011531731core:Goodwillbus:Consolidated2022-06-3011531731core:Goodwillbus:Consolidated2021-03-3111531731bus:Consolidated2021-03-3111531731core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-06-3011531731core:PlantMachinerybus:Consolidated2022-06-3011531731core:MotorVehiclesbus:Consolidated2022-06-3011531731core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2021-03-3111531731core:PlantMachinerybus:Consolidated2021-03-3111531731core:MotorVehiclesbus:Consolidated2021-03-3111531731core:ShareCapitalbus:Consolidated2022-06-3011531731core:ShareCapitalbus:Consolidated2021-03-3111531731core:ShareCapital2022-06-3011531731core:ShareCapital2021-03-3111531731core:RetainedEarningsAccumulatedLosses2022-06-3011531731core:ShareCapitalbus:Consolidated2020-03-3111531731core:RetainedEarningsAccumulatedLossesbus:Consolidated2020-03-3111531731core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-03-3111531731core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-06-3011531731core:ShareCapital2020-03-3111531731core:RetainedEarningsAccumulatedLosses2020-03-3111531731core:RetainedEarningsAccumulatedLosses2021-03-31115317312021-03-3111531731core:Goodwill2021-04-012022-06-3011531731core:LandBuildingscore:OwnedOrFreeholdAssets2021-04-012022-06-3011531731core:PlantMachinery2021-04-012022-06-3011531731core:MotorVehicles2021-04-012022-06-3011531731core:UKTaxbus:Consolidated2021-04-012022-06-3011531731core:UKTaxbus:Consolidated2020-04-012021-03-3111531731bus:Consolidated12021-04-012022-06-3011531731bus:Consolidated12020-04-012021-03-3111531731bus:Consolidated22021-04-012022-06-3011531731bus:Consolidated22020-04-012021-03-3111531731bus:Consolidated32021-04-012022-06-3011531731bus:Consolidated32020-04-012021-03-3111531731core:Goodwillbus:Consolidated2021-03-3111531731core:Goodwillbus:Consolidated2021-04-012022-06-3011531731core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2021-03-3111531731core:PlantMachinerybus:Consolidated2021-03-3111531731core:MotorVehiclesbus:Consolidated2021-03-3111531731bus:Consolidated2021-03-3111531731core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2021-04-012022-06-3011531731core:PlantMachinerybus:Consolidated2021-04-012022-06-3011531731core:MotorVehiclesbus:Consolidated2021-04-012022-06-3011531731core:PlantMachinery2022-06-3011531731core:PlantMachinery2021-03-3111531731core:CurrentFinancialInstrumentsbus:Consolidated2022-06-3011531731core:CurrentFinancialInstrumentsbus:Consolidated2021-03-3111531731core:CurrentFinancialInstruments2022-06-3011531731core:CurrentFinancialInstruments2021-03-3111531731core:WithinOneYearbus:Consolidated2022-06-3011531731core:WithinOneYearbus:Consolidated2021-03-3111531731core:CurrentFinancialInstrumentscore:WithinOneYear2022-06-3011531731core:CurrentFinancialInstrumentscore:WithinOneYear2021-03-3111531731core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2022-06-3011531731core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2021-03-3111531731core:Non-currentFinancialInstrumentscore:AfterOneYear2022-06-3011531731core:Non-currentFinancialInstrumentscore:AfterOneYear2021-03-3111531731core:Non-currentFinancialInstrumentsbus:Consolidated2022-06-3011531731core:Non-currentFinancialInstrumentsbus:Consolidated2021-03-3111531731core:Non-currentFinancialInstruments2022-06-3011531731core:Non-currentFinancialInstruments2021-03-3111531731core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-06-3011531731core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2021-03-3111531731core:WithinOneYear2022-06-3011531731core:WithinOneYear2021-03-3111531731core:BetweenTwoFiveYearsbus:Consolidated2022-06-3011531731core:BetweenTwoFiveYearsbus:Consolidated2021-03-3111531731core:BetweenTwoFiveYears2022-06-3011531731core:BetweenTwoFiveYears2021-03-3111531731bus:PrivateLimitedCompanyLtd2021-04-012022-06-3011531731bus:FRS1022021-04-012022-06-3011531731bus:Audited2021-04-012022-06-3011531731bus:ConsolidatedGroupCompanyAccounts2021-04-012022-06-3011531731bus:FullAccounts2021-04-012022-06-30xbrli:purexbrli:sharesiso4217:GBP