Company registration number 01853428 (England and Wales)
MARDON LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
MARDON LIMITED
COMPANY INFORMATION
Directors
Mr M J Donoghue
Mr J J Beamer
Mr T R Crookall
Mr D Hughes
(Appointed 20 December 2022)
Secretary
Mr M J Donoghue
Company number
01853428
Registered office
10 Fenton Street
Lancaster
LA1 1TE
Auditor
MHA Moore and Smalley
14 Mannin Way
Lancaster Business Park
Lancaster
LA1 3SW
Solicitors
FMGS Law LTD
1 Middle St
Lancaster
LA1 1JZ
MARDON LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 25
MARDON LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 1 -
The directors present the strategic report for the year ended 30 September 2023.
Review of the business
The principal activity of the company during the year continued to be the wholesale distribution of fish and meat throughout the UK and overseas.
The focus of the business has continued to be on maximising operational efficiencies and improved working capital management.
The company is ISO9001 2015 certified. Technical and quality control standards have continued to be routinely monitored and upgraded during the course of the year. The company is committed to a process of continual improvement of its processes and quality control standards.
Principal risks and uncertainties
The company continues to maintain procedures to identify, monitor and mitigate business risk. Business risk can be analysed into two broad categories -financial risk and product risk.
The company manages its foreign currency exposure by entering into forward contracts with the company's bankers. The company manages bad debt risk by either credit insuring its sales, conducting sales by secure financial instruments or requesting prepayment before the release of goods.
Product risk is mitigated in several ways. The company does not generally engage in speculative purchases but only purchases where a sale has been secured for goods. All cargos and stocks are insured under marine and stock insurance. The company employs its own logistics and technical personnel to ensure that all goods are adequately secured and meet the company's technical specifications.
Development and performance
The company sales are 75% overseas & 25% domestic market; profit for the year was £763,307 before tax which the Directors consider to be satisfactory.
Key performance indicators
The key performance indicators utilised by the business relate to gross profit performance and stock levels. Gross profit for the year is 14%. Stock levels increased from £0.9 million to £1.06 million at the year end.
Mr M J Donoghue
Director
23 February 2024
MARDON LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 30 September 2023.
Principal activities
The principal activities and review of the business are detailed in the strategic report on page 1 of the financial statements.
Results and dividends
The results for the year are set out on page 7 and page 8.
Ordinary dividends were paid amounting to £120,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr M J Donoghue
Mr J J Beamer
Mr T R Crookall
Mr D Hughes
(Appointed 20 December 2022)
Future developments
The directors are committed to delivering sustainable growth & have formally adopted a detailed 5 Year Plan to increase shareholder value.
Auditor
In accordance with the company's articles, a resolution proposing that MHA Moore and Smalley be reappointed as auditor of the company will be put at a General Meeting.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the fair review of the business, principal risks and uncertainties and key performance indicators.
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 company’s auditor 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 company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
MARDON LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 3 -
On behalf of the board
Mr M J Donoghue
Director
23 February 2024
MARDON LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 4 -
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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies 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 company 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
MARDON LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF MARDON LIMITED
- 5 -
Opinion
We have audited the financial statements of Mardon Limited (the 'company') for the year ended 30 September 2023 which comprise 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 Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 September 2023 and of its 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions 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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.
MARDON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MARDON LIMITED
- 6 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
Enquiries with management about any known or suspected instances of non-compliance with laws and regulations, including fraud;
Auditing the risk of fraud in revenue by way of cut off testing as well as sales transaction testing to obtain evidence that revenue is complete and recognised in the correct accounting period;
Assessed the company's post year end performance and forecasts for the next 12 months from the anticipated date of sign off to determine whether the going concern basis is appropriate;
Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to provisions and future performance of the company in light of the impact of the cost of living crisis;
An evaluation of the risk of management override of controls and subsequent testing, including through testing journal entries and other adjustments for appropriateness; and
An evaluation of the company's internal control environment.
MARDON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MARDON LIMITED
- 7 -
Because of the industry in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements:
Health and Safety;
Compliance with quality control accreditations;
Compliance with import and export regulations;
Employment law; and
Compliance with the UK Companies Act.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Jenny McCabe
Senior Statutory Auditor
For and on behalf of MHA Moore and Smalley
23 February 2024
Chartered Accountants
Statutory Auditor
14 Mannin Way
Lancaster Business Park
Lancaster
LA1 3SW
MARDON LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
20,122,790
17,556,991
Cost of sales
(17,322,503)
(15,442,712)
Gross profit
2,800,287
2,114,279
Distribution costs
(263,475)
(278,101)
Administrative expenses
(1,628,763)
(1,124,518)
Other operating income
1,300
3,300
Operating profit
4
909,349
714,960
Interest receivable and similar income
7
719
20
Interest payable and similar expenses
8
(146,761)
(82,588)
Profit before taxation
763,307
632,392
Tax on profit
9
(177,977)
(157,996)
Profit for the financial year
585,330
474,396
The profit and loss account has been prepared on the basis that all operations are continuing operations.
MARDON LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 9 -
2023
2022
£
£
Profit for the year
585,330
474,396
Other comprehensive income
-
-
Total comprehensive income for the year
585,330
474,396
MARDON LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2023
30 September 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
643,506
642,896
Current assets
Stocks
12
1,062,510
868,265
Debtors
13
5,407,234
5,576,491
Cash at bank and in hand
619,900
321,432
7,089,644
6,766,188
Creditors: amounts falling due within one year
14
(4,840,808)
(4,800,197)
Net current assets
2,248,836
1,965,991
Total assets less current liabilities
2,892,342
2,608,887
Creditors: amounts falling due after more than one year
15
(780,000)
(961,875)
Net assets
2,112,342
1,647,012
Capital and reserves
Called up share capital
19
12,502
12,502
Share premium account
976,904
976,904
Profit and loss reserves
1,122,936
657,606
Total equity
2,112,342
1,647,012
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved by the board of directors and authorised for issue on 23 February 2024 and are signed on its behalf by:
Mr M J Donoghue
Director
Company registration number 01853428 (England and Wales)
MARDON LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2021
12,502
976,904
303,210
1,292,616
Year ended 30 September 2022:
Profit and total comprehensive income
-
-
474,396
474,396
Dividends
10
-
-
(120,000)
(120,000)
Balance at 30 September 2022
12,502
976,904
657,606
1,647,012
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
585,330
585,330
Dividends
10
-
-
(120,000)
(120,000)
Balance at 30 September 2023
12,502
976,904
1,122,936
2,112,342
MARDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 12 -
1
Accounting policies
Company information
Mardon Limited is a private company limited by shares incorporated in England and Wales. The registered office is 10 Fenton Street, Lancaster, LA1 1TE.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.
This 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:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Mardon Holdings Limited. These consolidated financial statements are available from Companies House, Cardiff.
1.2
Going concern
The directors consider the company to have a sufficient level of working capital to see it through the upcoming months and therefore it remains wholly solvent.true
The directors do not consider there to be a material uncertainty at this time, and there is a reasonable expectation that the company 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.
1.3
Turnover
Turnover comprises revenue recognised by the company in respect of goods and services supplied, exclusive of Value Added Tax, where applicable, and trade discounts.
MARDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods, but in limited circumstances this may be prior to delivery), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
For sales where goods are shipped straight to the customer, the risks and rewards of ownership of the stock transfer at the bill of lading date and the company recognises the relevant turnover and associated costs at this point.
1.4
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 Property
Revaluation model adopted
Equipment
15% Reducing Balance/ 25% Straight Line
Plant and machinery
15% Reducing Balance
Fixtures & Fittings
10% Straight Line/15% Reducing Balance
Motor Vehicles
25% Reducing Balance
Freehold land is not depreciated.
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 credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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).
Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset 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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
MARDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
The company has no assets classified as other financial assets except for those described in note 1.11.
Impairment of financial assets
Financial assets 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 company 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 company after deducting all of its liabilities.
MARDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies 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 receipts 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 company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company 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 company.
1.10
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.11
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
MARDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense. 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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.15
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.
MARDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 17 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Valuation of freehold land and buildings
Accounting for land and buildings using the revaluation model requires making assessments of the valuation of these assets on a regular basis. In order to do this, the Directors must make judgments over whether there has been any material change due to impairments or uplifts in the market.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Impairment of assets
The company records provisions where it has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and a reasonable estimation of the obligation can be made. The recording of provisions is an area which requires the exercise of management judgement relating to the nature, timing and probability of the liability. The company's balance sheet includes provisions for doubtful debts, stock and contract provisions.
The recoverability of trade debtors is regularly reviewed and in light of the available economic information specific to each debtor and specific provisions are recognised for balances considered to be irrecoverable.
Stock is assessed for impairment at each reporting date by the directors and any excess of the carrying amount of stock over its estimated selling price less costs to sell is recognised as an impairment loss.
Fair value of derivative financial instruments
The foreign currency contracts are not traded in active markets. The fair value has been derived using observable forward exchange rates and interest rates corresponding to the maturity of the contract. Due to the lack of an active market for trading such contracts, the directors are unable to independently confirm the fair value and as a result the fair value recognised in the accounts is that which has been obtained from the banks that provide the foreign currency forward contracts.
MARDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 18 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Wholesale fish distribution
20,122,790
17,556,991
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
5,936,422
4,394,126
Overseas
14,186,368
13,162,865
20,122,790
17,556,991
2023
2022
£
£
Other revenue
Interest income
719
20
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(107,536)
143,124
Fees payable to the company's auditor for the audit of the company's financial statements
15,925
3,500
Depreciation of owned tangible fixed assets
5,176
4,548
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Number of management staff
-
1
Number of trading staff
9
8
Number of technical staff
2
3
Number of logistics staff
1
1
Number of accounts staff
2
2
Total
14
15
MARDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
5
Employees
(Continued)
- 19 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
863,274
631,171
Social security costs
97,819
68,540
Pension costs
22,932
12,625
984,025
712,336
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
230,351
126,513
Company pension contributions to defined contribution schemes
3,641
2,438
233,992
128,951
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
82,202
-
Company pension contributions to defined contribution schemes
1,321
-
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
719
20
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
146,761
82,588
MARDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 20 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
99,240
Deferred tax
Origination and reversal of timing differences
78,737
120,076
Changes in tax rates
37,920
Total deferred tax
78,737
157,996
Total tax charge
177,977
157,996
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
763,307
632,392
Expected tax charge based on the standard rate of corporation tax in the UK of 22.01% (2022: 19.00%)
167,990
120,154
Tax effect of income not taxable in determining taxable profit
565
(78)
Effect of change in corporation tax rate
9,422
37,920
Taxation charge for the year
177,977
157,996
The standard rate of tax applied to reported profit on ordinary activities is 22% (2022: 19%). The Finance Act 2021, which was enacted on 24 May 2021, created a 25% main rate, 19% small profits rate and a marginal rate which is effective from 1 April 2023. Deferred tax has been calculated at 25% (2022:25%) which is the rate that the deferred tax liabilities and assets are expected to crystallise.
10
Dividends
2023
2022
£
£
Final paid
120,000
120,000
MARDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 21 -
11
Tangible fixed assets
Freehold Property
Equipment
Plant and machinery
Fixtures & Fittings
Motor Vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 October 2022
630,000
72,627
18,177
117,410
18,000
856,214
Additions
5,786
5,786
At 30 September 2023
630,000
78,413
18,177
117,410
18,000
862,000
Depreciation and impairment
At 1 October 2022
69,808
17,606
117,343
8,561
213,318
Depreciation charged in the year
2,664
85
67
2,360
5,176
At 30 September 2023
72,472
17,691
117,410
10,921
218,494
Carrying amount
At 30 September 2023
630,000
5,941
486
7,079
643,506
At 30 September 2022
630,000
2,819
571
67
9,439
642,896
All freehold land and buildings were professionally valued by Colliers International Valuation UK LLP on the basis of their open market value at September 2020. The directors do not consider that the freehold land and buildings open market value is materially different from the value at September 2020.
Freehold land and buildings are carried at valuation. If they were measured using the cost model, the carrying amounts would have been approximately £490,810(2022 - £499,793), being cost £639,158 (2022 - £639,158) and depreciation £148,348(2022 - £139,365).
12
Stocks
2023
2022
£
£
Finished goods and goods for resale
1,062,510
868,265
MARDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 22 -
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,488,702
2,993,152
Amounts owed by group undertakings
987,736
987,736
Other debtors
18,571
41,470
Prepayments and accrued income
672,172
1,235,343
5,167,181
5,257,701
Deferred tax asset (note 17)
1,065
5,168,246
5,257,701
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
238,988
238,988
Deferred tax asset (note 17)
79,802
238,988
318,790
Total debtors
5,407,234
5,576,491
The other debtor balance due after one year of £238,988 is secured by a debenture against property for the full value. It will be repaid no later than 2027.
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
2,575,812
3,086,965
Trade creditors
1,458,400
1,218,727
Corporation tax
99,240
Other taxation and social security
67,795
24,767
Other creditors
10,373
22,416
Accruals and deferred income
629,188
447,322
4,840,808
4,800,197
15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
780,000
961,875
MARDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 23 -
16
Loans and overdrafts
2023
2022
£
£
Bank loans
983,966
1,208,753
Bank overdrafts
2,371,846
2,840,087
3,355,812
4,048,840
Payable within one year
2,575,812
3,086,965
Payable after one year
780,000
961,875
Bank loans and overdrafts of £3,355,812 (2022: £4,048,840) included within borrowings is secured by way of debenture over all of the assets of the company.
17
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Assets
Assets
2023
2022
Balances:
£
£
Short term timing differences
1,065
2,008
Tax losses
-
77,794
1,065
79,802
2023
Movements in the year:
£
Asset at 1 October 2022
(79,802)
Charge to profit or loss
78,737
Asset at 30 September 2023
(1,065)
The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.
MARDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 24 -
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
22,932
12,625
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
12,502
12,502
12,502
12,502
The company had 50,000 Ordinary shares at 1 October 2018. Two shares were fully paid and 49,998 were 1/4 paid. A further 1 Ordinary share was issued on 1 April 2020 for a total consideration of £976,905 resulting in a share premium balance of £976,904.
20
Financial commitments, guarantees and contingent liabilities
Mardon Holdings Limited, the company's immediate parent company, has an outstanding deferred liability with it's shareholders amounting to £101,392 (2022: £164,392). This is secured by a legal charge over the freehold land and property owned by Mardon Limited, and a floating charge on the remainder of Mardon Limited's assets.
21
Capital commitments
Amounts contracted for but not provided in the financial statements:
2023
2022
£
£
Acquisition of tangible fixed assets
14,734
-
MARDON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 25 -
22
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Remuneration paid
2023
2022
£
£
Other related parties
48,875
41,486
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due to related parties
£
£
Directors
4,014
17,155
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
987,736
987,736
Entities over which the entity has control, joint control or significant influence
-
24,110
Other related parties
2,700
6,324
23
Ultimate controlling party
The company's immediate and ultimate parent company is Mardon Holdings Limited, a company incorporated in England and Wales.
The company was under the control of M J Donoghue by virtue of his controlling interest in Mardon Holdings Limited, of which the company is a subsidiary.
The company's financial activities are consolidated into the group accounts prepared by Mardon Holdings Limited, the ultimate parent company of the group.
2023-09-302022-10-01falseCCH SoftwareCCH Accounts Production 2023.300Mr J J BeamerMr T R CrookallMr D HughesMr David HughesMr M J Donoghuefalse018534282022-10-012023-09-3001853428bus:CompanySecretaryDirector12022-10-012023-09-3001853428bus:Director12022-10-012023-09-3001853428bus:Director22022-10-012023-09-3001853428bus:Director32022-10-012023-09-3001853428bus:CompanySecretary12022-10-012023-09-3001853428bus:Director42022-10-012023-09-3001853428bus:RegisteredOffice2022-10-012023-09-3001853428bus:Agent12022-10-012023-09-30018534282023-09-30018534282021-10-012022-09-3001853428core:RetainedEarningsAccumulatedLosses2021-10-012022-09-3001853428core:RetainedEarningsAccumulatedLosses2022-10-012023-09-30018534282022-09-3001853428core:LandBuildingscore:OwnedOrFreeholdAssets2023-09-3001853428core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-09-3001853428core:PlantMachinery2023-09-3001853428core:FurnitureFittings2023-09-3001853428core:MotorVehicles2023-09-3001853428core:LandBuildingscore:OwnedOrFreeholdAssets2022-09-3001853428core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-09-3001853428core:PlantMachinery2022-09-3001853428core:FurnitureFittings2022-09-3001853428core:MotorVehicles2022-09-3001853428core:CurrentFinancialInstrumentscore:WithinOneYear2023-09-3001853428core:CurrentFinancialInstrumentscore:WithinOneYear2022-09-3001853428core:Non-currentFinancialInstrumentscore:AfterOneYear2023-09-3001853428core:Non-currentFinancialInstrumentscore:AfterOneYear2022-09-3001853428core:CurrentFinancialInstruments2023-09-3001853428core:CurrentFinancialInstruments2022-09-3001853428core:ShareCapital2023-09-3001853428core:ShareCapital2022-09-3001853428core:SharePremium2023-09-3001853428core:SharePremium2022-09-3001853428core:RetainedEarningsAccumulatedLosses2023-09-3001853428core:RetainedEarningsAccumulatedLosses2022-09-3001853428core:ShareCapital2021-09-3001853428core:SharePremium2021-09-3001853428core:RetainedEarningsAccumulatedLosses2021-09-3001853428core:LandBuildingscore:OwnedOrFreeholdAssets2022-10-012023-09-3001853428core:LandBuildingscore:LongLeaseholdAssets2022-10-012023-09-3001853428core:PlantMachinery2022-10-012023-09-3001853428core:FurnitureFittings2022-10-012023-09-3001853428core:MotorVehicles2022-10-012023-09-3001853428core:UKTax2022-10-012023-09-3001853428core:UKTax2021-10-012022-09-3001853428core:LandBuildingscore:OwnedOrFreeholdAssets2022-09-3001853428core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-09-3001853428core:PlantMachinery2022-09-3001853428core:FurnitureFittings2022-09-3001853428core:MotorVehicles2022-09-30018534282022-09-3001853428core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-10-012023-09-3001853428core:Non-currentFinancialInstruments2023-09-3001853428core:Non-currentFinancialInstruments2022-09-3001853428bus:PrivateLimitedCompanyLtd2022-10-012023-09-3001853428bus:FRS1022022-10-012023-09-3001853428bus:Audited2022-10-012023-09-3001853428bus:FullAccounts2022-10-012023-09-30xbrli:purexbrli:sharesiso4217:GBP