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Registration number: 04725932

Mardon Recycling Machinery Limited

Unaudited Filleted Financial Statements

for the Year Ended 30 June 2023

 

Mardon Recycling Machinery Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 11

 

Mardon Recycling Machinery Limited

Company Information

Directors

Mr D Henry

Mr J Tapp

Registered office

Donmar House
Lime Way
Pathfields Business Park
South Molton
Devon
EX36 3LH

Accountants

PGD Accountants
Certified Accountants
26 Spinney Close
Roundswell
Barnstaple
Devon
EX31 3RT

 

Mardon Recycling Machinery Limited

(Registration number: 04725932)
Balance Sheet as at 30 June 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

4

-

3,000

Tangible assets

5

49,273

46,142

 

49,273

49,142

Current assets

 

Stocks

6

160,654

109,730

Debtors

7

359,405

212,617

Cash at bank and in hand

 

661,710

674,985

 

1,181,769

997,332

Creditors: Amounts falling due within one year

8

(1,087,141)

(969,790)

Net current assets

 

94,628

27,542

Net assets

 

143,901

76,684

Capital and reserves

 

Called up share capital

9

517

517

Capital redemption reserve

483

483

Retained earnings

142,901

75,684

Shareholders' funds

 

143,901

76,684

For the financial year ending 30 June 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 29 March 2024 and signed on its behalf by:
 

.........................................
Mr J Tapp
Director

 

Mardon Recycling Machinery Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Donmar House
Lime Way
Pathfields Business Park
South Molton
Devon
EX36 3LH

These financial statements were authorised for issue by the Board on 29 March 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

Mardon Recycling Machinery Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Property improvements

10% straight line

Plant and machinery

25% and 10% straight line

Fixtures and fittings

25% straight line

Motor vehicles

25% straight line and life of lease

Goodwill

Goodwill is amortised over its useful life, which shall not exceed five years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

20 years straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Mardon Recycling Machinery Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation. The obligations under finance leases are secured against the items of plant and machinery to which they relate.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 14 (2022 - 12).

 

Mardon Recycling Machinery Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 July 2022

60,000

60,000

At 30 June 2023

60,000

60,000

Amortisation

At 1 July 2022

57,000

57,000

Amortisation charge

3,000

3,000

At 30 June 2023

60,000

60,000

Carrying amount

At 30 June 2023

-

-

At 30 June 2022

3,000

3,000

 

Mardon Recycling Machinery Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

5

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 July 2022

28,779

268,407

37,376

50,875

385,437

Additions

-

14,621

-

8,333

22,954

Disposals

-

(7,000)

-

(2,500)

(9,500)

At 30 June 2023

28,779

276,028

37,376

56,708

398,891

Depreciation

At 1 July 2022

28,779

245,786

18,626

46,104

339,295

Charge for the year

-

7,363

6,250

3,558

17,171

Eliminated on disposal

-

(5,598)

-

(1,250)

(6,848)

At 30 June 2023

28,779

247,551

24,876

48,412

349,618

Carrying amount

At 30 June 2023

-

28,477

12,500

8,296

49,273

At 30 June 2022

-

22,621

18,750

4,771

46,142

Included within the net book value of land and buildings above is £Nil (2022 - £Nil) in respect of short leasehold land and buildings.
 

 

Mardon Recycling Machinery Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

6

Stocks

2023
£

2022
£

Other inventories

160,654

109,730

7

Debtors

Current

2023
£

2022
£

Trade debtors

320,113

170,911

Prepayments

17,297

14,003

Other debtors

21,995

27,703

 

359,405

212,617

 

Mardon Recycling Machinery Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

8

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

10

6,654

-

Trade creditors

 

315,729

199,550

Taxation and social security

 

179,276

117,366

Accruals and deferred income

 

1,642

1,642

Other creditors

 

583,840

651,232

 

1,087,141

969,790

9

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary shares of £1 each

517

517

517

517

       
 

Mardon Recycling Machinery Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

10

Loans and borrowings

Current loans and borrowings

2023
£

2022
£

Bank overdrafts

6,644

-

Other borrowings

10

-

6,654

-

11

Dividends

2023

2022

£

£

Interim dividend of £18.96 (2022 - £Nil) per ordinary share

9,800

-

 

 

12

Related party transactions

 

Mardon Recycling Machinery Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

91,222

82,988

Summary of transactions with associates

In the period, the company charged Mardon Rentals Ltd for repairs/installation of balers, rent of office space/storage, baler rental and a management charge
 

Income and receivables from related parties

2023

Associates
£

Sale of goods

125,016

Receipt of services

235,665

360,681

2022

Associates
£

Receipt of services

178,079

Expenditure with and payables to related parties

2023

Associates
£

Purchase of goods

1,658

2022

Loans from related parties

2023

Associates
£

Total
£

At start of period

200,000

200,000

At end of period

200,000

200,000

2022

Associates
£

Total
£

At start of period

200,000

200,000

At end of period

200,000

200,000