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Company registration number: 06542012







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 JULY 2023


MLPC PARENT LIMITED






































img625f.png                        

 


MLPC PARENT LIMITED
 


 
COMPANY INFORMATION


Directors
Mr V D Ganjavian 
Dr N Siabi 




Registered number
06542012



Registered office
Microlink House
Brickfield Lane

Chandlers Ford

Hampshire

SO53 4DP




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

3000a Parkway

Whiteley

Hampshire

PO15 7FX





 


MLPC PARENT LIMITED
 



CONTENTS



Page
Group Strategic Report
1 - 3
Directors' Report
4 - 5
Independent Auditors' Report
6 - 9
Consolidated Income Statement
10
Consolidated Statement of Comprehensive Income
11
Consolidated Statement of Financial Position
12 - 13
Company Statement of Financial Position
14
Consolidated Statement of Changes in Equity
15
Company Statement of Changes in Equity
16
Consolidated Statement of Cash Flows
17
Consolidated Analysis of Net Debt
18
Notes to the Financial Statements
19 - 38


 


MLPC PARENT LIMITED
 


 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023

Business review
 
The principal activity during the year was, and continues to be, the supply of computer hardware and software, and the provision of consultancy services, training, software platforms, health & wellbeing products, accessibility services, installation services, assistive technology and workplace adjustment products and services, and on-going technical support of computer and technological solutions for people with disabilities.
The Group’s main trading subsidiary, Microlink PC (UK) Limited, incurred an EBITDA for the year of £314,489 (2022 – £282,623 loss). At the year end, its total Capital and reserves had changed from £14,487,904 to £14,755,891.
Overall, the Group’s consolidated accounts report a net loss of £1,590,266 (2022 - loss £1,740,671) which is stated after the amortisation of intangible assets of – principally the deduction of goodwill arising on consolidation - of £1,383,333 (2022 - £1,133,333).
The student market has continued to be aggressively competitive with the Student Loans Company (SLC) continuing to use an E Quote portal. This has continued to put pressure on revenues and margins from this business line.
The Department for Education (DFE) tender for the supply of the above services was issued in February 2022. We came third in this competition, but unfortunately the decision of the DFE was to award all four regions only to those tenderers in first and second place.
Meanwhile, however, new revenue streams continue to be developed. In addition, the Group has continued adding new corporations to its customer base which is driving growth going forward.
We have not seen significant adverse impacts from Brexit as most of our business is currently within the UK.
Going forward, the Group continues to grow its business globally.

Page 1

 


MLPC PARENT LIMITED
 



GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023

Principal risks and uncertainties
 
Risk is present in all businesses and the board regularly reviews the risks faced by the Group and by the Company. The directors consider the following to be the major risks and uncertainties faced by the Group and the Company:
Coronavirus (Covid-19)
The Group continues to be impacted by the legacy of the virus and the changes in the working patterns of our customers.
The directors have carefully considered the situation and have concluded that the resources of the Group are adequate to withstand the impact of the virus.
Market uncertainties
The assistive technology sector by its very nature is one of rapid change and development creating both uncertainty and opportunity. Accordingly, the Group constantly seeks to look at expanding its range of products and its service offerings as well as maintaining its service levels and differentiating itself from its competitors.
Operational risk
Operational efficiency is of paramount importance in a business dedicated to delivering best value in quality and service. Our risk management approach encourages a proportionate response to each area of operational risk, with a combination of generic standards and local ownership. Supply chain resilience and product quality management are regarded as two key operational risks.
Supply of components
The Group configures its hardware to customer order on short lead time. There is, therefore, a potential risk to order fulfilment during times of industry wide component constraints. This is mitigated by multi-sourcing, strong long term supply arrangements including planning, forecasting and buffer stocks where appropriate.
Interest rate risks
Deposits are placed on fixed and variable rate terms for periods from overnight to one month based on forecasted cash flows and interest rate trends. The directors consider that the interest rate risk is at an acceptable level, and the appropriate safeguards are in place to mitigate these risks.
Credit risk
The bulk of our customers are Student Finance, Local Education Authorities, large listed companies, Schools and other government funded institutions. Because of this, the risk of financial loss to the Group and Company arising from the failure of the Group's customers to meet their financial obligations for the services provided by the Group is very low.
Liquidity risks
The Group retains sufficient cash to ensure sufficient funds are available for operations. The Group's shareholders are committed and in principle have funds available to provide additional ongoing financial support for further development or any other requirement of the Group.

Page 2

 


MLPC PARENT LIMITED
 



GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023

Financial key performance indicators
 
The key financial performance indicators for the Group are centred around turnover, gross margin and EBITDA. There is also a continued focus on the operational cost base to ensure that it remains at the correct level to support the ongoing business requirement.
Key performance indicators:

2023
2022
Variance
Variance
        £
        £
        £
        %

Sales

10,161,196

9,104,921

1,056,275
 
12
 
Gross profit

3,122,562

2,594,342

528,220
 
20
 
EBITDA

346,057

(256,689)

602,746
 
235
 
Cash at bank

327,228

338,321

11,093
 
3
 


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



................................................
Dr N Siabi
Director

Date: 28 March 2024

Page 3

 


MLPC PARENT LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2023

The directors present their report and the financial statements for the year ended 31 July 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make 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 Group will continue in business.

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

Results and dividends

The loss for the year, after taxation, amounted to £1,590,266 (2022 - loss £1,740,671).

The directors do not recommend the payment of a dividend.

Directors

The directors who served during the year were:

Mr V D Ganjavian 
Dr N Siabi 

Future developments

The directors will continue to focus on the growth of the Group, whilst ensuring they maintain a high level of service. Regional hubs are being created to support the Group’s global growth.

Going concern

The directors have a reasonable expectation that the Group has adequate resources to continue operational existence for the foreseeable future. For this reason, the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Matters covered in the Group Strategic Report

The Group has chosen in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out within the Group's Strategic Report the Group's Strategic Report Information Required by Schedule 7 of the large and Medium Sized Companies and Groups (Accounts and Reports) Regulations 2008. This includes information that would have been included in the business review and details of the principal risks and uncertainties.

Page 4

 


MLPC PARENT LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023

Disclosure of information to auditors

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

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

Post balance sheet events

An Indian subsidiary company was incorporated on 18 August 2023, as disclosed further by note 27.

Auditors

Under section 487(2) of the Companies Act 2006Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

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





................................................
Dr N Siabi
Director

Date: 28 March 2024

Page 5

 


MLPC PARENT LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MLPC PARENT LIMITED

Opinion


We have audited the financial statements of MLPC Parent Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 July 2023, which comprise the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 July 2023 and of the Group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 6

 


MLPC PARENT LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MLPC PARENT LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


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


Matters on which we are required to report by exception
 

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


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


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 


MLPC PARENT LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MLPC PARENT LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The Group and parent Company are subject to laws and regulations that directly affect the financial statements including financial reporting legislation, and general regulations such as health and safety. There are no industry specific laws and regulations which would be deemed to have a significant impact on the financial statements. We assessed the extent of compliance with the appropriate laws and regulations as part of our procedures on the related financial statement items.

We understood how the Group and parent Company are complying with the legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures. We corroborated our inquiries through our review of board minutes. 
 
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognize non-compliance with laws and regulations. The assessment did not identify any issues in this area.
 
We assessed the susceptibility of the Group's and parent Company's  financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
°Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
°Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
°Challenging assumptions and judgments made by management in its significant accounting estimates; and
°Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations. 

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: 
°Posting of unusual journals and complex transactions;
°Misappropriation of funds through fraudulent purchase ledger and payroll activity; and
°Manipulation of amounts subject to significant judgment or estimate. 


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 for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Page 8

 


MLPC PARENT LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MLPC PARENT LIMITED (CONTINUED)

Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Andrew Galliers (FCA) (Senior Statutory Auditor)
  
for and on behalf of
Menzies LLP 
 
Chartered Accountants
Statutory Auditor
  
3000a Parkway
Whiteley
Hampshire
PO15 7FX

28 March 2024
Page 9

 


MLPC PARENT LIMITED
 


 
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 JULY 2023

2023
2022
Note
£
£

  

Turnover
 4 
10,161,196
9,104,921

Cost of sales
  
(7,038,634)
(6,510,579)

Gross profit
  
3,122,562
2,594,342

Distribution costs
  
(466,180)
(420,052)

Administrative expenses
  
(3,558,597)
(3,695,504)

Other operating income
 5 
57,075
72,110

Operating loss
 6 
(845,140)
(1,449,104)

Interest receivable and similar income
 10 
3,835
450

Interest payable and similar expenses
 11 
(738,757)
(313,564)

Loss before tax
  
(1,580,062)
(1,762,218)

Tax on loss
 12 
(10,204)
21,547

Loss for the financial year
  
(1,590,266)
(1,740,671)

Loss for the year attributable to:
  

Owners of the parent
  
(1,590,266)
(1,740,671)

  
(1,590,266)
(1,740,671)

The notes on pages 19 to 38 form part of these financial statements.

Page 10

 


MLPC PARENT LIMITED
 



CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2023

2023
2022
Note
£
£


Loss for the financial year
  
(1,590,266)
(1,740,671)

Total comprehensive income for the year
  
(1,590,266)
(1,740,671)

(Loss) for the year attributable to:
  


Owners of the parent Company
  
(1,590,266)
(1,740,671)

  
(1,590,266)
(1,740,671)

Total comprehensive income attributable to:
  


Owners of the parent Company
  
(1,590,266)
(1,740,671)

  
(1,590,266)
(1,740,671)

The notes on pages 19 to 38 form part of these financial statements.

Page 11

 


MLPC PARENT LIMITED
REGISTERED NUMBER:06542012



CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 13 
5,657,650
6,801,583

Tangible assets
 14 
335,054
387,930

Investments
 15 
9,400
9,400

  
6,002,104
7,198,913

Current assets
  

Stocks
 16 
793,600
901,526

Debtors: amounts falling due within one year
 17 
1,657,211
1,051,371

Cash at bank and in hand
 18 
327,228
338,321

  
2,778,039
2,291,218

Creditors: amounts falling due within one year
 19 
(12,711,382)
(11,741,759)

Net current liabilities
  
 
 
(9,933,343)
 
 
(9,450,541)

Total assets less current liabilities
  
(3,931,239)
(2,251,628)

Creditors: amounts falling due after more than one year
 20 
(13,094,299)
(13,186,401)

Provisions for liabilities
  

Deferred taxation
 21 
(6,131)
(3,374)

  
 
 
(6,131)
 
 
(3,374)

Net liabilities
  
(17,031,669)
(15,441,403)

Page 12

 


MLPC PARENT LIMITED
REGISTERED NUMBER:06542012


    
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 JULY 2023

2023
2022
Note
£
£

Capital and reserves
  

Called up share capital 
 22 
10,000,000
10,000,000

Profit and loss account
 23 
(27,031,669)
(25,441,403)

Equity attributable to owners of the parent Company
  
(17,031,669)
(15,441,403)

  
(17,031,669)
(15,441,403)


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




................................................
Dr N Siabi
Director

Date: 28 March 2024

The notes on pages 19 to 38 form part of these financial statements.

Page 13

 


MLPC PARENT LIMITED
REGISTERED NUMBER:06542012



COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 15 
13,680,900
13,680,000

  
13,680,900
13,680,000

  

Creditors: amounts falling due within one year
 19 
(24,451,630)
(23,712,901)

Net current liabilities
  
 
 
(24,451,630)
 
 
(23,712,901)

Total assets less current liabilities
  
(10,770,730)
(10,032,901)

  

Creditors: amounts falling due after more than one year
 20 
(13,000,000)
(13,000,000)

  

Net liabilities
  
(23,770,730)
(23,032,901)


Capital and reserves
  

Called up share capital 
 22 
10,000,000
10,000,000

Profit and loss account brought forward
  
(33,032,901)
(25,370,194)

Loss for the year

  

(737,829)
(7,662,707)

Profit and loss account carried forward
  
(33,770,730)
(33,032,901)

  
(23,770,730)
(23,032,901)


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


................................................
Dr N Siabi
Director

Date: 28 March 2024

The notes on pages 19 to 38 form part of these financial statements.

Page 14

 


MLPC PARENT LIMITED
 



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£

At 1 August 2021
10,000,000
(23,700,732)
(13,700,732)
(13,700,732)



Loss for the year

-
(1,740,671)
(1,740,671)
(1,740,671)


At 1 August 2022
10,000,000
(25,441,403)
(15,441,403)
(15,441,403)



Loss for the year
-
(1,590,266)
(1,590,266)
(1,590,266)


At 31 July 2023
10,000,000
(27,031,669)
(17,031,669)
(17,031,669)


The notes on pages 19 to 38 form part of these financial statements.

Page 15

 


MLPC PARENT LIMITED
 



COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 August 2021
10,000,000
(25,370,194)
(15,370,194)



Loss for the year

-
(7,662,707)
(7,662,707)


At 1 August 2022
10,000,000
(33,032,901)
(23,032,901)



Loss for the year
-
(737,829)
(737,829)


At 31 July 2023
10,000,000
(33,770,730)
(23,770,730)


The notes on pages 19 to 38 form part of these financial statements.

Page 16

 


MLPC PARENT LIMITED
 



CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2023

2023
2022
£
£

Cash flows from operating activities

Loss for the financial year
(1,590,266)
(1,740,671)

Adjustments for:

Amortisation of intangible assets
1,133,333
1,133,333

Depreciation of tangible assets
57,864
59,082

Government grants
-
(12,557)

Interest paid
738,757
313,564

Interest received
(3,835)
(450)

Taxation charge
10,204
(21,547)

Decrease in stocks
107,926
62,531

(Increase) in debtors
(605,840)
(34,673)

Increase/(decrease) in creditors
1,013,781
(179,384)

Corporation tax (paid)/received
(7,447)
21,547

Net cash generated from operating activities

854,477
(399,225)


Cash flows from investing activities

Adjustment to intangible assets
10,600
-

Purchase of tangible fixed assets
(4,989)
(10,569)

New loans to joint ventures
-
(9,400)

Government grants received
-
12,557

Interest received
3,835
450

Net cash from investing activities

9,446
(6,962)

Cash flows from financing activities

Repayment of loans
(10,000)
(8,436)

Repayment of other loans
(126,197)
(33,983)

Interest paid
(738,756)
(313,564)

Net cash used in financing activities
(874,953)
(355,983)

Net (decrease) in cash and cash equivalents
(11,030)
(762,170)

Cash and cash equivalents at beginning of year
338,258
1,100,428

Cash and cash equivalents at the end of year
327,228
338,258


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
327,228
338,321

Bank overdrafts
-
(63)

327,228
338,258


Page 17

 


MLPC PARENT LIMITED
 



CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 JULY 2023




At 1 August 2022
Cash flows
At 31 July 2023
£

£

£

Cash at bank and in hand

338,321

(11,093)

327,228

Bank overdrafts

(63)

63

-

Debt due after 1 year

(13,037,949)

16,385

(13,021,564)

Debt due within 1 year

(9,300,829)

(32,547)

(9,333,376)


(22,000,520)
(27,192)
(22,027,712)

The notes on pages 19 to 38 form part of these financial statements.

Page 18

 


MLPC PARENT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

1.


General information

These financial statements have been prepared in compliance with FRS102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
MLPC Parent Limited is a private company, limited by shares, which is incorporated and domiciled in the United Kingdom. The address of the Company's registered office, which is also its principal place of business, is disclosed on the Company Information page.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Income Statement in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Income Statement from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 August 2014.

 
2.3

Going concern

The Group and Company have net current liabilities of £9,933,343 and £24,451,630 respectively. Included within current liabilities are creditors due to the directors, shareholders and the wider group that are providing continuing financial support. 
The directors have carefully reviewed the uncertainties facing the Group and the actions taken to mitigate these risks and they believe that the Group should be well able to continue its operational existence for a period of at least 12 months from the approval of these accounts, and thus they consider the going concern basis of preparation continues to be appropriate.

Page 19

 


MLPC PARENT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

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

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Income Statement within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Page 20

 


MLPC PARENT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.5

Revenue

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

Sale of goods

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

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.6

Operating leases: the Group as lessee

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

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

 
2.7

Research and development

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

Page 21

 


MLPC PARENT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.8

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated Income Statement in the same period as the related expenditure.

 
2.9

Interest income

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

 
2.10

Finance costs

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

 
2.11

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.12

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

Page 22

 


MLPC PARENT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.13

Current and deferred taxation

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

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

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

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

 
2.14

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Income Statement over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Goodwill on consolidation
-
20
years

Page 23

 


MLPC PARENT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.15

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

The estimated useful lives range as follows:

Long-term leasehold property
-
25
years straight line
Plant and machinery
-
4
years straight line
Motor vehicles
-
4
years straight line
Fixtures and fittings
-
4
years straight line

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

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

 
2.16

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.17

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.18

Debtors

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

 
2.19

Creditors

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

Page 24

 


MLPC PARENT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.20

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Page 25

 


MLPC PARENT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

2.Accounting policies (continued)

 
2.21

Provisions for liabilities

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


3.


Judgments in applying accounting policies 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.
Goodwill amortisation
The directors have considered the useful life of the consolidated goodwill at 20 years and have based the amortisation over this period based upon the term of the benefits gained from the consolidation. 
Impairment for goodwill and investments
The directors have considered whether there are any indications that goodwill and investments assets may have been impaired at the reporting date. The directors have completed an exercise of comparing the carrying value of the goodwill and investments to the expected recoverable amount based upon approved budgets that exist for each relevant business.
Warranty provision
The directors have reviewed the historical return rate and review this on a regular basis. The level of this has remained constant and accordingly, the Directors have concluded the level of the provision remains appropriate.


4.


Turnover

The turnover and profit before tax are attributable to the one principal activity of the Group.

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
10,044,130
9,014,700

Rest of Europe
808
21,802

Rest of the World
116,258
68,419

10,161,196
9,104,921


Page 26

 


MLPC PARENT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

5.


Other operating income

2023
2022
£
£

Sundry income
57,075
59,553

Government grants receivable
-
12,557

57,075
72,110



6.


Operating loss

The operating loss is stated after charging:

2023
2022
£
£

Research & development charged as an expense
926
12,410

Exchange differences
387
(1,930)

Other operating lease rentals
38,185
154,438

Amortisation charges
1,133,333
1,133,333


7.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
26,850
24,275

Page 27

 


MLPC PARENT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

8.


Employees

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


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


Wages and salaries
2,588,082
2,503,494
-
-

Social security costs
236,256
227,554
-
-

Cost of defined contribution scheme
161,927
139,381
-
-

2,986,265
2,870,429
-
-


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


        2023
        2022
            No.
            No.







Administrative and production
99
103

The Company has no employees other than the directors, who did not receive any remuneration (2022 - £NIL)

9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
70,000
70,000

Group contributions to defined contribution pension schemes
2,100
2,100

72,100
72,100


During the year retirement benefits were accruing to 2 directors (2022 - 2) in respect of defined contribution pension schemes.


10.


Interest receivable

2023
2022
£
£


Other interest receivable
3,835
450

3,835
450

Page 28

 


MLPC PARENT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
928
857

Other loan interest payable
169,026
163,825

Other interest payable
568,803
148,882

738,757
313,564


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
7,447
-

Adjustments in respect of previous periods
-
(21,547)


7,447
(21,547)


Total current tax
7,447
(21,547)

Deferred tax


Origination and reversal of timing differences
2,757
-

Total deferred tax
2,757
-


Taxation on profit/(loss) on ordinary activities
10,204
(21,547)
Page 29

 


MLPC PARENT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 21.01% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Loss on ordinary activities before tax
(1,580,062)
(1,762,218)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 21.01% (2022 - 19%)
(331,971)
(334,821)

Effects of:


Non-tax deductible amortisation of goodwill and impairment
238,113
215,333

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
121,473
54,487

Permanent differences
10,161
9,655

Adjustments to tax charge in respect of prior periods
-
(21,547)

Change in tax rates
5,734
-

Unrealised deferred tax
(36,053)
55,346

Other differences leading to an increase (decrease) in the tax charge
2,747
-

Total tax charge for the year
10,204
(21,547)

Page 30

 


MLPC PARENT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

13.


Intangible assets

Group 





Development expenditure
Goodwill on consolidation
Total

£
£
£



Cost


At 1 August 2022
250,000
36,096,383
36,346,383


Disposals
-
(10,600)
(10,600)



At 31 July 2023

250,000
36,085,783
36,335,783



Amortisation


At 1 August 2022
250,000
29,294,800
29,544,800


Charge for the year on owned assets
-
1,133,333
1,133,333



At 31 July 2023

250,000
30,428,133
30,678,133



Net book value



At 31 July 2023
-
5,657,650
5,657,650



At 31 July 2022
-
6,801,583
6,801,583



Page 31


MLPC PARENT LIMITED
  
 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2023



14.


Tangible fixed assets


Group







Long-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 August 2022
1,188,806
91,943
23,842
439,742
1,744,333


Additions
-
-
-
4,989
4,989


Disposals
-
-
-
(117,789)
(117,789)



At 31 July 2023

1,188,806
91,943
23,842
326,942
1,631,533



Depreciation


At 1 August 2022
819,794
91,943
23,842
420,824
1,356,403


Charge for the year on owned assets
47,879
-
-
9,986
57,865


Disposals
-
-
-
(117,789)
(117,789)



At 31 July 2023

867,673
91,943
23,842
313,021
1,296,479



Net book value



At 31 July 2023
321,133
-
-
13,921
335,054



At 31 July 2022
369,012
-
-
18,918
387,930

Page 32

 


MLPC PARENT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

           14.Tangible fixed assets (continued)




The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Long leasehold
321,133
369,012

321,133
369,012



15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 August 2022
13,680,000


Additions
900



At 31 July 2023
13,680,900





Direct subsidiary undertaking


The following was a direct subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Microlink PC (UK) Limited
Microlink House, Brickfield Lane, Chandlers Ford, Hampshire, SO53 4DP
Ordinary
100%

Page 33

 


MLPC PARENT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

Indirect subsidiary undertakings


The following were indirect subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Microlink Global Limited
Microlink House, Brickfield Lane, Chandlers Ford, Hampshire, SO53 4DP
Ordinary
100%
Hearability PTY Limited
1 Rotspunt Close, Melkbostrand, Cape Town, 7441, Republic of South Africa
Ordinary
100%
Microlink Inc
251 Little Falls Drive, Wilmington, DE 19808, United States
100%


16.


Stocks

Group
Group
2023
2022
£
£

Finished goods and goods for resale
793,600
901,526

793,600
901,526


The difference between purchase price or production cost of stocks and their replacement cost is not material.

Page 34

 


MLPC PARENT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

17.


Debtors

Group
Group
2023
2022
£
£


Trade debtors
1,094,105
717,257

Other debtors
26,683
14,622

Prepayments and accrued income
536,423
319,492

1,657,211
1,051,371



18.


Cash and cash equivalents

Group
Group
2023
2022
£
£

Cash at bank and in hand
327,228
338,321

Less: bank overdrafts
-
(63)

327,228
338,258



19.


Creditors: Amounts falling due within one year

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

Bank overdrafts
-
63
-
-

Bank loans
10,000
3,615
-
-

Other loans
8,079,750
8,205,947
8,079,750
8,205,947

Trade creditors
302,522
299,785
-
-

Amounts owed to group undertakings
-
-
13,624,298
13,481,069

Other taxation and social security
425,895
259,784
-
-

Other creditors
1,335,809
1,204,459
1,225,946
1,073,051

Accruals and deferred income
2,557,406
1,768,106
1,521,636
952,834

12,711,382
11,741,759
24,451,630
23,712,901




Page 35

 


MLPC PARENT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

20.


Creditors: Amounts falling due after more than one year

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

Bank loans
21,564
37,949
-
-

Accruals and deferred income
72,735
148,452
-
-

Share capital treated as debt
13,000,000
13,000,000
13,000,000
13,000,000

13,094,299
13,186,401
13,000,000
13,000,000


Disclosure of the terms and conditions attached to the non-equity shares of £13,000,000 is provided in note 22.




21.


Deferred taxation


Group



2023


£






At beginning of year
3,374


Charged to profit or loss
2,757



At end of year
6,131

The provision for deferred taxation is made up as follows:

Group
Group
2023
2022
£
£

Accelerated capital allowances
6,131
6,663

Short term
-
(3,289)

6,131
3,374

Page 36

 


MLPC PARENT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

22.


Share capital

2023
2022
£
£
Shares classified as equity

Allotted, called up and fully paid



10,000,000 (2022 - 10,000,000) Ordinary shares of £1.00 each
10,000,000
10,000,000

Each Ordinary share has equal voting and dividend rights.

2023
2022
£
£
Shares classified as debt

Allotted, called up and fully paid



13,000,000 (2022 - 13,000,000) Preference shares of £1.00 each
13,000,000
13,000,000


Preference shares are non-voting and carry a preferential dividend.


23.


Reserves

Profit and loss account

This reserve records retained earnings and accumulated losses.


24.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. Contributions totalling £17,041 (2022 - £17,620) were payable to the fund at the balance sheet date and are included in creditors.


25.


Commitments under operating leases

At 31 July 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:



Group
Group
2023
2022
£
£


Not later than 1 year
28,856
33,832

Later than 1 year and not later than 5 years
8,472
37,329

37,328
71,161

Equipment expenses recognised within administrative expenses during the year were £33,832 (2022 - £32,701).

Page 37

 


MLPC PARENT LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023

26.


Related party transactions

The Company has taken advantage of the exemption in Financial Reporting Standard Section 33 from the requirement to disclose transactions with group companies on the grounds that they are wholly owned within the Group.
Directors’ transactions:
At the year end, the Company owed the directors loans to the value of £1,225,944 (2022 - £1,073,051).
At the year end, the Company owed a loan to Fieldgate Investments Ltd of £8,079,750 (2022 - £8,205,947). This company is controlled by the director, Dr N Siabi. Interest of £169,026 (2022 - £163,825) was charged on the loan during the period. 
Other related party transactions:
During the year, Microlink PC (UK) Limited, a wholly owned subsidiary, paid rent to APIC Trustees, which is a related party by means of its interest in the Company. The value of the rent payable was £22,333 (2022 -  £134,000).


27.


Post balance sheet events

On 18 August 2023, a new subsidiary was set up in India called Microlink Assistive Technologies India Pvt. Ltd which commenced trading on 9 January 2024. This subsidiary is 99.99% owned by Microlink Global Limited, a fellow group member


28.


Controlling party

The Company and Group is under the control of Mr V Ganjavian.

 
Page 38