40 true false false false true true false false false false false false true false false 2022-08-01 Sage Accounts Production Advanced 2023 - FRS102_2023 5,669,169 3,117,099 20 2,817,050 654,959 209,451 3,262,558 1,312,015 381,931 144,984 1,548,962 1,713,596 1,505,035 939,641 796,079 82,600 82,600 82,600 285,957 95,848 381,805 285,957 75,392 361,349 1 10,000 10,000 xbrli:pure xbrli:shares iso4217:GBP 03141100 2022-08-01 2023-07-31 03141100 2023-07-31 03141100 2022-07-31 03141100 2021-08-01 2022-07-31 03141100 2022-07-31 03141100 2021-07-31 03141100 bus:Consolidated 2022-08-01 2023-07-31 03141100 bus:Consolidated core:Subsidiary1 2022-08-01 2023-07-31 03141100 core:FurnitureFittings 2022-08-01 2023-07-31 03141100 bus:Consolidated core:FurnitureFittings 2022-08-01 2023-07-31 03141100 bus:RegisteredOffice 2022-08-01 2023-07-31 03141100 bus:OrdinaryShareClass1 2022-08-01 2023-07-31 03141100 bus:Consolidated bus:OrdinaryShareClass1 2022-08-01 2023-07-31 03141100 bus:LeadAgentIfApplicable 2022-08-01 2023-07-31 03141100 bus:Consolidated bus:LeadAgentIfApplicable 2022-08-01 2023-07-31 03141100 bus:Director3 2022-08-01 2023-07-31 03141100 bus:CompanySecretary1 2022-08-01 2023-07-31 03141100 bus:Consolidated bus:Director3 2022-08-01 2023-07-31 03141100 bus:Consolidated 2023-07-31 03141100 bus:Consolidated core:WithinOneYear 2023-07-31 03141100 bus:Consolidated core:WithinOneYear 2022-07-31 03141100 core:WithinOneYear 2023-07-31 03141100 core:WithinOneYear 2022-07-31 03141100 bus:Consolidated core:PlantMachinery 2022-07-31 03141100 bus:Consolidated core:FurnitureFittings 2022-07-31 03141100 bus:Consolidated 2022-07-31 03141100 bus:Consolidated core:PlantMachinery 2023-07-31 03141100 bus:Consolidated core:FurnitureFittings 2023-07-31 03141100 core:PlantMachinery 2022-07-31 03141100 core:PlantMachinery 2023-07-31 03141100 bus:Consolidated core:DeferredTaxation 2022-08-01 2023-07-31 03141100 core:DeferredTaxation 2022-08-01 2023-07-31 03141100 bus:Consolidated core:PlantMachinery 2022-08-01 2023-07-31 03141100 core:PlantMachinery 2022-08-01 2023-07-31 03141100 bus:Consolidated 2021-08-01 2022-07-31 03141100 bus:Consolidated 2022-07-31 03141100 core:AfterOneYear bus:Consolidated 2023-07-31 03141100 core:AfterOneYear bus:Consolidated 2022-07-31 03141100 core:AfterOneYear 2023-07-31 03141100 core:AfterOneYear 2022-07-31 03141100 bus:Consolidated core:RetainedEarningsAccumulatedLosses 2021-08-01 2022-07-31 03141100 bus:Consolidated core:RetainedEarningsAccumulatedLosses 2022-08-01 2023-07-31 03141100 core:RetainedEarningsAccumulatedLosses 2021-08-01 2022-07-31 03141100 core:RetainedEarningsAccumulatedLosses 2022-08-01 2023-07-31 03141100 bus:Consolidated core:UKTax 2022-08-01 2023-07-31 03141100 bus:Consolidated core:UKTax 2021-08-01 2022-07-31 03141100 bus:AllOrdinaryShares bus:Consolidated 2022-08-01 2023-07-31 03141100 bus:AllOrdinaryShares bus:Consolidated 2021-08-01 2022-07-31 03141100 bus:Consolidated core:ShareCapital 2023-07-31 03141100 bus:Consolidated core:ShareCapital 2022-07-31 03141100 core:CapitalRedemptionReserve bus:Consolidated 2023-07-31 03141100 core:CapitalRedemptionReserve bus:Consolidated 2022-07-31 03141100 bus:Consolidated core:RetainedEarningsAccumulatedLosses 2023-07-31 03141100 bus:Consolidated core:RetainedEarningsAccumulatedLosses 2022-07-31 03141100 core:ShareCapital 2023-07-31 03141100 core:ShareCapital 2022-07-31 03141100 core:CapitalRedemptionReserve 2023-07-31 03141100 core:CapitalRedemptionReserve 2022-07-31 03141100 core:RetainedEarningsAccumulatedLosses 2023-07-31 03141100 core:RetainedEarningsAccumulatedLosses 2022-07-31 03141100 bus:Consolidated core:ShareCapital 2021-07-31 03141100 core:CapitalRedemptionReserve bus:Consolidated 2021-07-31 03141100 bus:Consolidated core:RetainedEarningsAccumulatedLosses 2021-07-31 03141100 bus:Consolidated 2021-07-31 03141100 core:ShareCapital 2021-07-31 03141100 core:CapitalRedemptionReserve 2021-07-31 03141100 core:RetainedEarningsAccumulatedLosses 2021-07-31 03141100 core:BetweenOneFiveYears bus:Consolidated 2023-07-31 03141100 core:BetweenOneFiveYears bus:Consolidated 2022-07-31 03141100 core:BetweenOneFiveYears 2023-07-31 03141100 core:BetweenOneFiveYears 2022-07-31 03141100 bus:Consolidated core:MoreThanFiveYears 2023-07-31 03141100 bus:Consolidated core:MoreThanFiveYears 2022-07-31 03141100 core:MoreThanFiveYears 2023-07-31 03141100 core:MoreThanFiveYears 2022-07-31 03141100 core:CostValuation core:Non-currentFinancialInstruments 2023-07-31 03141100 core:Non-currentFinancialInstruments 2023-07-31 03141100 core:Non-currentFinancialInstruments 2022-07-31 03141100 core:AcceleratedTaxDepreciationDeferredTax bus:Consolidated 2023-07-31 03141100 core:AcceleratedTaxDepreciationDeferredTax bus:Consolidated 2022-07-31 03141100 core:AcceleratedTaxDepreciationDeferredTax 2023-07-31 03141100 core:AcceleratedTaxDepreciationDeferredTax 2022-07-31 03141100 bus:Consolidated core:PlantMachinery 2022-07-31 03141100 bus:Consolidated core:FurnitureFittings 2022-07-31 03141100 core:PlantMachinery 2022-07-31 03141100 core:LeasedAssetsHeldAsLessee core:PlantMachinery 2023-07-31 03141100 bus:Consolidated core:LeasedAssetsHeldAsLessee core:PlantMachinery 2023-07-31 03141100 core:LeasedAssetsHeldAsLessee core:PlantMachinery 2022-07-31 03141100 bus:Consolidated core:LeasedAssetsHeldAsLessee core:PlantMachinery 2022-07-31 03141100 bus:Consolidated core:DeferredTaxation 2022-07-31 03141100 bus:Consolidated core:DeferredTaxation 2023-07-31 03141100 core:DeferredTaxation 2022-07-31 03141100 core:DeferredTaxation 2023-07-31 03141100 bus:Consolidated bus:LeadAgentIfApplicable 2021-08-01 2022-07-31 03141100 bus:Consolidated bus:Director3 2022-07-31 03141100 bus:Consolidated bus:Director3 2021-07-31 03141100 bus:SmallEntities 2022-08-01 2023-07-31 03141100 bus:Audited 2022-08-01 2023-07-31 03141100 bus:PrivateLimitedCompanyLtd 2022-08-01 2023-07-31 03141100 bus:FullAccounts 2022-08-01 2023-07-31 03141100 bus:OrdinaryShareClass1 2023-07-31 03141100 bus:Consolidated bus:OrdinaryShareClass1 2023-07-31 03141100 bus:OrdinaryShareClass1 2022-07-31 03141100 bus:Consolidated bus:OrdinaryShareClass1 2022-07-31 03141100 core:AllSubsidiaries bus:Consolidated 2022-08-01 2023-07-31 03141100 core:AllAssociates 2022-08-01 2023-07-31
COMPANY REGISTRATION NUMBER: 03141100
Manchester Urban Finance Corporation Limited
Financial Statements
31 July 2023
Manchester Urban Finance Corporation Limited
Financial Statements
Year ended 31 July 2023
Contents
Page
Officers and professional advisers
1
Strategic report
2
Director's report
3
Independent auditor's report to the member
5
Consolidated statement of comprehensive income
9
Consolidated statement of financial position
10
Company statement of financial position
11
Consolidated statement of changes in equity
12
Company statement of changes in equity
13
Consolidated statement of cash flows
14
Notes to the financial statements
15
Manchester Urban Finance Corporation Limited
Officers and Professional Advisers
Director
Mr N J Cable
Company secretary
Mr N J Cable
Registered office
The Moorings
Dane Road Industrial Estate
Dane Road
Sale
Cheshire
M33 7BH
Auditor
Barlow Andrews
Chartered accountants & statutory auditor
Carlyle House
78 Chorley New Road
Bolton
Lancashire
Bankers
National Westminster Bank plc
5th Floor
1 Spinningfields Square
Deansgate
Manchester
M3 3AP
Solicitors
Marsden Rawsthorn Solicitors
Farady Court
Faraday Drive
Fulwood
Preston
PR2 9NB
Manchester Urban Finance Corporation Limited
Strategic Report
Year ended 31 July 2023
PRINCIPAL ACTIVITY The principal activities of the group during the year was that of leasing plant to associated entities and the installation of high-specification concrete floors . REVIEW OF BUSINESS The results and position of the group, and position of the parent company, are set out on pages 9 to 13 of these financial statements. Turnover within the group has increased substantially due to a number of factors, amongst them being the increased cost of raw materials and an increase in demand for larger warehouse space. Management efficiencies and more effective systems and procedures have helped maintain and improve profit margins. Looking towards the future, management find the results extremely encouraging and the company is confident that market share can be maintained. PRINCIPAL RISKS AND UNCERTAINTIES Global political instability and the level of liquidity and activity in the general economy continues to be uncertain. One of the principal risks remain company failures and a reduction of workload in this sector. The availability of skilled labour within the industry was also considered to be a principal risk, however, historically, the group have had an excellent relationship with their employees and staff turnover is very low when compared to the national average. DEVELOPMENT AND PERFORMANCE The group is confident that their reputation continues to grow nationally. Future developments will come from a focus on cost and efficient operations. The group are continually active in the research & development of new products, new methods and new procedures and continue to invest substantially in this field. The group continues to enhance its reputation because of its focus on providing an excellent product and service. The director believes that this will continue to sustain the success of the group in years to come. FINANCIAL KEY PERFORMANCE INDICATORS The director is obliged to report financial key performance indicators and considers the following to be the most relevant and appropriate: - 2023 2022 Sales £40,567,575 £28,969,099 Operating profit £7,162,993 £3,789,765 Operating margins 17.7% 13.1% Profit on ordinary activities before tax £7,176,596 £3,716,699 EBITDA £7,553,837 £4,151,046 ROCE 55.2% 36.6% Gearing 0.7 0.7 Current ratio 2.4 2.6
This report was approved by the board of directors on 11 December 2023 and signed on behalf of the board by:
Mr N J Cable
Director
Trading address:
Unit 40
Drumhead Road
Chorley North Industrial Park
Chorley
Lancashire
PR6 7BX
Manchester Urban Finance Corporation Limited
Director's Report
Year ended 31 July 2023
The director presents his report and the financial statements of the group for the year ended 31 July 2023 .
Director
The director who served the company during the year was as follows:
Mr N J Cable
Dividends
Particulars of recommended dividends are detailed in note 14 to the financial statements.
Disclosure of information in the strategic report
The company has chosen in accordance with section 414C(11) of the Companies Act 2006(Strategic Report and Directors' Report) Regulations 2013 to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008
Director's responsibilities statement
The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and the company and the profit or loss of the group for that period. In preparing these financial statements, the director is required to: - select suitable accounting policies and then apply them consistently; - make judgments 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 director is 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. He is 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information. The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 11 December 2023 and signed on behalf of the board by:
Mr N J Cable
Director
Trading address:
Unit 40
Drumhead Road
Chorley North Industrial Park
Chorley
Lancashire
PR6 7BX
Manchester Urban Finance Corporation Limited
Independent Auditor's Report to the Member of Manchester Urban Finance Corporation Limited
Year ended 31 July 2023
Opinion
We have audited the financial statements of Manchester Urban Finance Corporation Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2023 which comprise the consolidated statement of comprehensive income, consolidated statement of financial position, company statement of financial position, consolidated statement of changes in equity, company statement of changes in equity, consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the group's and of the parent company's affairs as at 31 July 2023 and of the group's profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's or the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or - the parent company financial statements are not in agreement with the accounting records and returns; or - certain disclosures of director's remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of the director
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has 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 in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; and - assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; and - enquiring of management as to actual and potential litigation and claims. There are inherent limitations in our audit procedures describe above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of auditor's report. Use of our report
This report is made solely to the company's member, 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 member 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 member as a body, for our audit work, for this report, or for the opinions we have formed.
Mrs Emma Woods FCA
(Senior Statutory Auditor)
For and on behalf of
Barlow Andrews
Chartered accountants & statutory auditor
Carlyle House
78 Chorley New Road
Bolton
Lancashire
11 December 2023
Manchester Urban Finance Corporation Limited
Consolidated Statement of Comprehensive Income
Year ended 31 July 2023
2023
2022
Note
£
£
Turnover
4
40,567,575
28,969,099
Cost of sales
29,796,688
23,345,765
------------
------------
Gross profit
10,770,887
5,623,334
Administrative expenses
3,607,894
1,878,302
Other operating income
5
44,733
------------
----------
Operating profit
6
7,162,993
3,789,765
Other interest receivable and similar income
11
43,644
1,627
Interest payable and similar expenses
12
30,041
74,694
------------
----------
Profit before taxation
7,176,596
3,716,698
Tax on profit
13
1,507,427
599,599
----------
----------
Profit for the financial year and total comprehensive income
5,669,169
3,117,099
----------
----------
All the activities of the group are from continuing operations.
Manchester Urban Finance Corporation Limited
Consolidated Statement of Financial Position
31 July 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
15
1,819,101
1,509,451
Current assets
Stocks
17
202,574
192,944
Debtors
18
9,846,311
10,749,898
Cash at bank and in hand
8,856,341
3,530,031
------------
------------
18,905,226
14,472,873
Creditors: amounts falling due within one year
19
7,755,453
5,621,807
------------
------------
Net current assets
11,149,773
8,851,066
------------
------------
Total assets less current liabilities
12,968,874
10,360,517
Creditors: amounts falling due after more than one year
20
515,289
571,949
Taxation including deferred tax
22
381,805
285,957
------------
------------
Net assets
12,071,780
9,502,611
------------
------------
Capital and reserves
Called up share capital
25
10,000
10,000
Capital redemption reserve
26
1,667
1,667
Profit and loss account
26
12,060,113
9,490,944
------------
----------
Shareholder funds
12,071,780
9,502,611
------------
----------
These financial statements were approved by the board of directors and authorised for issue on 11 December 2023 , and are signed on behalf of the board by:
Mr N J Cable
Director
Company registration number: 03141100
Manchester Urban Finance Corporation Limited
Company Statement of Financial Position
31 July 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
15
1,713,596
1,505,035
Investments
16
82,600
82,600
----------
----------
1,796,196
1,587,635
Current assets
Debtors
18
6,607,804
5,131,332
Cash at bank and in hand
7,996,233
2,972,437
------------
----------
14,604,037
8,103,769
Creditors: amounts falling due within one year
19
5,667,325
1,187,681
------------
----------
Net current assets
8,936,712
6,916,088
------------
----------
Total assets less current liabilities
10,732,908
8,503,723
Creditors: amounts falling due after more than one year
20
491,275
537,921
Taxation including deferred tax
22
361,349
285,957
------------
----------
Net assets
9,880,284
7,679,845
------------
----------
Capital and reserves
Called up share capital
25
10,000
10,000
Capital redemption reserve
26
1,667
1,667
Profit and loss account
26
9,868,617
7,668,178
----------
----------
Shareholder funds
9,880,284
7,679,845
----------
----------
The profit for the financial year of the parent company was £ 5,300,439 (2022: £ 2,932,726 ).
These financial statements were approved by the board of directors and authorised for issue on 11 December 2023 , and are signed on behalf of the board by:
Mr N J Cable
Director
Company registration number: 03141100
Manchester Urban Finance Corporation Limited
Consolidated Statement of Changes in Equity
Year ended 31 July 2023
Called up share capital
Capital redemption reserve
Profit and loss account
Total
£
£
£
£
At 1 August 2021
10,000
1,667
11,825,644
11,837,311
Profit for the year
3,117,099
3,117,099
-------
------
------------
------------
Total comprehensive income for the year
3,117,099
3,117,099
Dividends paid and payable
14
( 201,799)
( 201,799)
Reclassification from merger relief reserves to profit and loss account
( 5,250,000)
( 5,250,000)
-------
------
------------
------------
Total investments by and distributions to owners
( 5,451,799)
( 5,451,799)
At 31 July 2022
10,000
1,667
9,490,944
9,502,611
Profit for the year
5,669,169
5,669,169
-------
------
------------
------------
Total comprehensive income for the year
5,669,169
5,669,169
Dividends paid and payable
14
( 100,000)
( 100,000)
Reclassification from merger relief reserves to profit and loss account
( 3,000,000)
( 3,000,000)
---
---
----------
----------
Total investments by and distributions to owners
( 3,100,000)
( 3,100,000)
-------
------
------------
------------
At 31 July 2023
10,000
1,667
12,060,113
12,071,780
-------
------
------------
------------
Manchester Urban Finance Corporation Limited
Company Statement of Changes in Equity
Year ended 31 July 2023
Called up share capital
Capital redemption reserve
Profit and loss account
Total
£
£
£
£
At 1 August 2021
10,000
1,667
10,187,251
10,198,918
Profit for the year
2,932,726
2,932,726
-------
------
------------
------------
Total comprehensive income for the year
2,932,726
2,932,726
Dividends paid and payable
14
( 201,799)
( 201,799)
Reclassification from merger relief reserves to profit and loss account
( 5,250,000)
( 5,250,000)
-------
------
------------
------------
Total investments by and distributions to owners
( 5,451,799)
( 5,451,799)
At 31 July 2022
10,000
1,667
7,668,178
7,679,845
Profit for the year
5,300,439
5,300,439
-------
------
------------
------------
Total comprehensive income for the year
5,300,439
5,300,439
Dividends paid and payable
14
( 100,000)
( 100,000)
Reclassification from merger relief reserves to profit and loss account
( 3,000,000)
( 3,000,000)
---
---
----------
----------
Total investments by and distributions to owners
( 3,100,000)
( 3,100,000)
-------
------
----------
----------
At 31 July 2023
10,000
1,667
9,868,617
9,880,284
-------
------
----------
----------
Manchester Urban Finance Corporation Limited
Consolidated Statement of Cash Flows
Year ended 31 July 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
5,669,169
3,117,099
Adjustments for:
Depreciation of tangible assets
390,844
361,280
Other interest receivable and similar income
( 43,644)
( 1,627)
Interest payable and similar expenses
30,041
74,694
Loss/(gains) on disposal of tangible assets
3,134
( 98,225)
Tax on profit
1,507,427
599,599
Accrued expenses
15,299
25,335
Changes in:
Stocks
( 9,630)
22,925
Trade and other debtors
903,587
( 259,672)
Trade and other creditors
1,221,375
451,490
----------
----------
Cash generated from operations
9,687,602
4,292,898
Interest paid
( 30,041)
( 74,694)
Interest received
43,644
1,627
Tax paid
( 613,524)
( 443,284)
----------
----------
Net cash from operating activities
9,087,681
3,776,547
----------
----------
Cash flows from investing activities
Purchase of tangible assets
( 764,962)
( 680,210)
Proceeds from sale of tangible assets
61,334
191,069
Cash advances and loans granted
( 3,000,000)
( 5,250,000)
----------
----------
Net cash used in investing activities
( 3,703,628)
( 5,739,141)
----------
----------
Cash flows from financing activities
Proceeds from borrowings
( 19,531)
( 762,623)
Proceeds from loans from participating interests
26,241
Payments of finance lease liabilities
35,547
213,656
Dividends paid
( 100,000)
( 201,799)
----------
----------
Net cash used in financing activities
( 57,743)
( 750,766)
----------
----------
Net increase/(decrease) in cash and cash equivalents
5,326,310
( 2,713,360)
Cash and cash equivalents at beginning of year
3,530,031
6,243,391
----------
----------
Cash and cash equivalents at end of year
8,856,341
3,530,031
----------
----------
Manchester Urban Finance Corporation Limited
Notes to the Financial Statements
Year ended 31 July 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is The Moorings, Dane Road Industrial Estate, Dane Road, Sale, Cheshire, M33 7BH.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
(a) Basis of preparation
The financial statements have been prepared on the historical cost basis. 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 £.
(b) Revenue recognition
Turnover represents the value of work done in the year. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the completion stage of each project. Turnover is also represented by operating lease charges invoiced during the year, exclusive of Value Added Tax.
(c) Going concern
At the time of approving the Director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the Director continues to adopt the going concern basis of accounting in preparing the financial statements.
(d) Disclosure exemptions
The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:
(a) Disclosures in respect of each class of share capital have not been presented.
(b) No cash flow statement has been presented for the company.
(c) Disclosures in respect of financial instruments have not been presented.
(d) No disclosure has been given for the aggregate remuneration of key management personnel.
(e) Consolidation
The financial statements consolidate the financial statements of the Group and all of its subsidiary undertakings. The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not included its individual statement of comprehensive income.
(f) Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When its probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expenses immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
(g) Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. We do not however consider that there are any key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
(h) 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 debtors.
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
(i) Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
(j) Operating leases
Operating lease income is recognised in the Consolidated Statement of Comprehensive Income as it becomes payable by the lessee. All plant and vehicles are hired under operating leases from the parent company which retains title to the assets. Lease terms vary between 3 & 5 years duration. The subsidiary occupies property owned by Roger Street Investments Limited, a company solely owned by Mr N Cable, under a lease originally of 10 years. Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight-line basis over the period of the lease.
(k) Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
(l) Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant & machinery
-
20% & 25% straight line
Fixtures & fittings
-
20% straight line
(m) Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
(n) Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
(o) Stock & work in progress
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Work in progress is valued on the basis of direct cost plus attributable overheads based on normal level of activity. Provision is made for any unforeseeable losses where appropriate. No element of profit is included in the valuation of work in progress.
(p) Finance leases and hire purchase contracts
Payments are apportioned between the charges and reduction of the outstanding liability using the effective interest method. Charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
(q) Warranties & provisions
Warranties and provisions are recognised when the entity has an obligation at the reporting date as a result of a past event. It is probable that the entity will be required to transfer economic benefits in settlement. They are recognised as a liability in the statement of financial position and the amount as an expense. Warranties and provisions are initially measured based on the director's best estimate of the most realistic, anticipated outcome, based on the available information subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss.
(r) Financial instruments
The group has elected to apply the provision of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all 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, 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 trade debtors and cash and bank balances, are initially measured at transaction price including transaction costs. 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 and loss. If there is a decrease in the impairment loss arising from an event occuring after the impairment was recognised, the impairment is reversed. The reversal is such that the carrying amount does not exceed what the carrying amount would have been, had the impairment not been previously 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 assets Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. Basic financial liabilities Basic financial liabilities, including trade creditors and loans from fellow group and related companies, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised. 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. 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.
(s) Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.
4. Turnover
Turnover arises from:
2023
2022
£
£
Lease charges
44,245
34,710
Construction contracts
40,523,330
28,934,389
------------
------------
40,567,575
28,969,099
------------
------------
The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom.
5. Other operating income
2023
2022
£
£
Government grants
44,733
---
-------
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
390,844
361,280
Loss/(gains) on disposal of tangible assets
3,134
( 98,225)
Impairment of trade debtors
1,448,105
(5)
Operating lease rentals: other
120,000
120,000
----------
--------
7. Amounts written off
During the latter part of the current financial year, after due consideration, it was agreed by all parties concerned that the £3M loan to Sunnydene Investments Limited, a company related by means of common control, was to be written off. (PY: £5.25M Roger Street Investments Limited)
8. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
14,000
13,500
-------
-------
9. Staff costs
The average number of persons employed by the group during the year, including the director, amounted to:
2023
2022
No.
No.
Production staff
22
28
Administrative staff
4
4
Management staff
14
14
---
---
40
46
---
---
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
1,661,491
1,959,521
Social security costs
192,668
225,174
Other pension costs
31,537
33,699
----------
----------
1,885,696
2,218,394
----------
----------
10. Director's remuneration
The director's aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
48,000
48,000
Company contributions to defined contribution pension plans
1,440
1,440
-------
-------
49,440
49,440
-------
-------
The number of directors who accrued benefits under company pension plans was as follows:
2023
2022
No.
No.
Defined contribution plans
1
1
---
---
11. Other interest receivable and similar income
2023
2022
£
£
Interest on cash and cash equivalents
43,644
1,627
-------
------
12. Interest payable and similar expenses
2023
2022
£
£
Interest on banks loans and overdrafts
1,766
46,575
Interest on obligations under finance leases and hire purchase contracts
34,039
29,727
Other interest payable and similar charges
( 5,764)
( 1,608)
-------
-------
30,041
74,694
-------
-------
13. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
1,444,172
646,117
Adjustments in respect of prior periods
( 32,593)
( 109,435)
----------
--------
Total current tax
1,411,579
536,682
----------
--------
Deferred tax:
Origination and reversal of timing differences
95,848
62,917
----------
--------
Tax on profit
1,507,427
599,599
----------
--------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2022: lower than) the standard rate of corporation tax in the UK of 21.01 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
7,176,596
3,716,698
----------
----------
Profit on ordinary activities by rate of tax
1,507,478
706,173
Adjustment to tax charge in respect of prior periods
( 32,593)
( 109,435)
Effect of expenses not deductible for tax purposes
2,112
1,644
Effect of capital allowances and depreciation
( 65,418)
( 61,700)
----------
----------
Tax on profit
1,411,579
536,682
----------
----------
14. Dividends
2023
2022
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
100,000
201,799
--------
--------
15. Tangible assets
Group
Plant and machinery
Fixtures and fittings
Total
£
£
£
Cost
At 1 August 2022
2,817,050
23,496
2,840,546
Additions
764,962
764,962
Disposals
( 209,452)
( 209,452)
----------
-------
----------
At 31 July 2023
3,372,560
23,496
3,396,056
----------
-------
----------
Depreciation
At 1 August 2022
1,312,015
19,080
1,331,095
Charge for the year
386,881
3,963
390,844
Disposals
( 144,984)
( 144,984)
----------
-------
----------
At 31 July 2023
1,553,912
23,043
1,576,955
----------
-------
----------
Carrying amount
At 31 July 2023
1,818,648
453
1,819,101
----------
-------
----------
At 31 July 2022
1,505,035
4,416
1,509,451
----------
-------
----------
Company
Plant and machinery
Total
£
£
Cost
At 1 August 2022
2,817,050
2,817,050
Additions
654,959
654,959
Disposals
( 209,451)
( 209,451)
----------
----------
At 31 July 2023
3,262,558
3,262,558
----------
----------
Depreciation
At 1 August 2022
1,312,015
1,312,015
Charge for the year
381,931
381,931
Disposals
( 144,984)
( 144,984)
----------
----------
At 31 July 2023
1,548,962
1,548,962
----------
----------
Carrying amount
At 31 July 2023
1,713,596
1,713,596
----------
----------
At 31 July 2022
1,505,035
1,505,035
----------
----------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Group and company
Plant and machinery
£
At 31 July 2023
939,641
--------
At 31 July 2022
796,079
--------
16. Investments
The group has no investments.
Company
Shares in group undertakings
£
Cost
At 1 August 2022 and 31 July 2023
82,600
-------
Impairment
At 1 August 2022 and 31 July 2023
-------
Carrying amount
At 1 August 2022 and 31 July 2023
82,600
-------
At 31 July 2022
82,600
-------
Subsidiaries, associates and other investments
Details of the investments in which the parent company has an interest of 20% or more are as follows:
Registered office
Class of share
Percentage of shares held
Subsidiary undertakings
ABS Brymar Floors Limited
The Moorings, Dane Road Industrial Estate, Dane Road, Sale, Cheshire M33 7BH
Ordinary
100
17. Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
169,478
187,532
Work in progress
33,096
5,412
--------
--------
---
---
202,574
192,944
--------
--------
---
---
18. Debtors
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade debtors
7,181,114
7,157,231
Amounts owed by group undertakings
4,924,521
2,509,517
Amounts owed by undertakings in which the company has a participating interest
1,657,468
2,600,000
1,657,468
2,600,000
Prepayments and accrued income
25,123
34,778
5,000
Director's loan account
10,000
10,000
10,000
10,000
Other debtors
972,606
947,889
10,815
11,815
----------
------------
----------
----------
9,846,311
10,749,898
6,607,804
5,131,332
----------
------------
----------
----------
The debtors above include the following amounts falling due after more than one year:
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade debtors
397,605
269,102
--------
--------
---
---
19. Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans and overdrafts
19,830
19,320
9,915
9,660
Trade creditors
5,521,011
4,288,502
12
624
Amounts owed to group undertakings
1,700,000
Amounts owed to undertakings in which the company has a participating interest
26,241
Accruals and deferred income
439,535
424,236
1,505,500
Corporation tax
1,444,172
646,117
1,374,032
560,266
Social security and other taxes
44,119
54,493
823,415
434,846
Obligations under finance leases and hire purchase contracts
254,451
182,285
254,451
182,285
Other creditors
6,094
6,854
----------
----------
----------
----------
7,755,453
5,621,807
5,667,325
1,187,681
----------
----------
----------
----------
Assets held as security formally charged Hire purchase liabilities are secured by a first charge against the individual assets to which the funding provided relates.
20. Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans and overdrafts
48,016
68,057
24,002
34,029
Obligations under finance leases and hire purchase contracts
467,273
503,892
467,273
503,892
--------
--------
--------
--------
515,289
571,949
491,275
537,921
--------
--------
--------
--------
No security has been provided by the company against their current bank borrowings as above.
21. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Not later than 1 year
254,451
182,285
254,451
182,285
Later than 1 year and not later than 5 years
432,656
416,676
432,656
416,676
Later than 5 years
34,617
87,216
34,617
87,216
--------
--------
--------
--------
721,724
686,177
721,724
686,177
--------
--------
--------
--------
22.
Group
Deferred tax (note 23)
£
At 1 August 2022
285,957
Additions
95,848
--------
At 31 July 2023
381,805
--------
Company
Deferred tax (note 23)
£
At 1 August 2022
285,957
Additions
75,392
--------
At 31 July 2023
361,349
--------
23. Deferred tax
The deferred tax included in the statement of financial position is as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Included in (note 22)
381,805
285,957
361,349
285,957
--------
--------
--------
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
Group
Company
2023
2022
2023
2022
£
£
£
£
Accelerated capital allowances
381,805
285,957
361,349
285,957
--------
--------
--------
--------
24. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 31,537 (2022: £ 33,699 ).
25. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
10,000
10,000
10,000
10,000
-------
-------
-------
-------
26. Reserves
Capital redemption reserve - records the nominal value of shares acquired by the company. Profit and loss account - records retained earnings and accumulated losses.
27. Analysis of changes in net debt
At 1 Aug 2022
Cash flows
At 31 Jul 2023
£
£
£
Cash at bank and in hand
3,530,031
5,326,310
8,856,341
Debt due within one year
(201,605)
(98,917)
(300,522)
Debt due after one year
(571,949)
56,660
(515,289)
----------
----------
----------
2,756,477
5,284,053
8,040,530
----------
----------
----------
28. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Later than 1 year and not later than 5 years
470,000
Later than 5 years
590,000
--------
--------
---
---
470,000
590,000
--------
--------
---
---
29. Contingencies
Warranties The group holds indemnity insurance in respect of warranty claims. In accordance with the group's accounting policy, no general provision is made, but specific provision for the anticipated uninsured remedial cost is made in the year of the claim arising in so far as the directors consider that a liability exists or will exist. It is not practicable to calculate the potential value of all outstanding warranties, but the directors consider that the success of any material unprovided warranty claim is remote.
30. Director's advances, credits and guarantees
During the year the director entered into the following advances and credits with the company and its subsidiary undertakings:
Balance brought forward and outstanding
2023
2022
£
£
Mr N J Cable
10,000
10,000
-------
-------
Manchester Urban Finance Corporation Limited
Notes to the Financial Statements (continued)
Year ended 31 July 2023
31. Related party transactions
Group
The group was controlled throughout the year by the director. Historically, the group has provided financial facilities, credit and treasury management and asset finance on commercial terms in the ordinary course of its business to associated undertakings. During the financial year, the group traded commercially with an associated entity. The year's transactions can be summarised as follows: 2023 2022 £ £ Management services provided by related parties Kontrad LLP 260,000 240,000 Contract hire charged to related parties Kontrad LLP 44,245 34,710 Rent paid under an operating lease Roger Street Investments Limited 120,000 120,000 Balances due from related parties Kontrad LLP 22,468 NIL Unsecured loans During the current financial year, the group advanced additional funding of £1.6M to Roger Street Investments Limited and additional funding of £400,000 to Sunnydene Investments Limited, companies related by common control. The additional funding was unsecured, was interest-free, and was repayable on demand. During the latter part of the year, after due consideration, it was agreed by all the parties concerned that the £3M loan to Sunnydene Investments Limited was to be written off. 2023 2022 £ £ Sunnydene Investments Limited NIL 2,600,000 Roger Street Investments Limited 1,600,000 NIL Global Treasury Fund Related operations which have short-term surplus funds remit these to the parent company. These funds are then made available to other related operations that have a short-term cash requirement and the surplus remaining is invested on the short-term money markets. The returns earned on this investment is then allocated to the participating businesses based upon the amount each has contributed to the investment. Balance due to the parent company from related parties under this arrangement is as follows: 2023 2022 £ £ Kontrad LLP 35,000 NIL
Company
The company was controlled throughout the year by the director. Historically, the company has provided financial facilities, credit and treasury management and asset finance on commercial terms in the ordinary course of its business to associated undertakings. During the financial year, the company traded commercially with a number of associated entities. The year's transactions can be summarised as follows: 2023 2022 £ £ Management services charged to related parties ABS Brymar Floors Limited 6,500,000 3,000,000 Contract hire charged to related parties ABS Brymar Floors Limited 584,761 536,594 Kontrad LLP 44,245 34,710 Balances due from related parties ABS Brymar Floors Limited 4,924,521 2,509,517 Kontrad LLP 22,468 NIL Unsecured loans During the current financial year, the group advanced additional funding of £1.6M to Roger Street Investments Limited and additional funding of £400,000 to Sunnydene Investments Limited, companies related by common control. The additional funding was unsecured, was interest-free, and was repayable on demand. During the latter part of the year, after due consideration, it was agreed by all the parties concerned that the £3M loan to Sunnydene Investments Limited was to be written off. 2023 2022 £ £ Sunnydene Investments Limited NIL 2,600,000 Roger Street Investments Limited 1,600,000 NIL Global Treasury Fund Related operations which have short-term surplus funds remit these to the parent company. These funds are then made available to other related operations that have a short-term cash requirement and the surplus remaining is invested on the short-term money markets. The returns earned on this investment is then allocated to the participating businesses based upon the amount each has contributed to the investment. Balance due to the parent company from related parties under this arrangement is as follows: 2023 2022 £ £ Kontrad LLP 35,000 NIL Balance due from the parent company to subsidiaries under this arrangement is as follows: 2023 2022 £ £ ABS Brymar Floors Limited 1,700,000 NIL