Company registration number 08658656 (England and Wales)
MFL PROJECTS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
PAGES FOR FILING WITH REGISTRAR
MFL PROJECTS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
MFL PROJECTS LIMITED
BALANCE SHEET
AS AT 31 AUGUST 2023
31 August 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
3
18,697
19,864
Tangible assets
4
146,067
158,429
Investments
5
2,567,820
4,254,927
2,732,584
4,433,220
Current assets
Stocks
3,749
45,992
Debtors
6
104,544
13,065
Cash at bank and in hand
20,844
31,503
129,137
90,560
Creditors: amounts falling due within one year
7
(3,305,774)
(5,039,270)
Net current liabilities
(3,176,637)
(4,948,710)
Net liabilities
(444,053)
(515,490)
Capital and reserves
Called up share capital
8
1
1
Profit and loss reserves
(444,054)
(515,491)
Total equity
(444,053)
(515,490)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
For the financial year ended 31 August 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 26 April 2024
P Mans
Director
Company registration number 08658656 (England and Wales)
MFL PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
- 2 -
1
Accounting policies
Company information
MFL Projects Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 3 Sutherland Court, Brownfields, Welwyn Garden City, AL7 1BJ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of long term investment loans at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
These financial statements are prepared on the going concern basis. The financial statements show that the company has negative equitytrue. The director is of the opinion that the external finance providers will continue with the existing facilities over which the director has provided a personal guarantee. The director continues to support the company and will not seek repayment of his loan until cash flow allows,
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Subscription income received or receivable is recognised over the period to which the subscription relates.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Patents
10 - 20 years straight line
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Land and buildings leasehold
20 years straight line
Plant and machinery
5 years straight line
Fixtures, fittings and equipment
4 years straight line
Computer equipment
3 years straight line
MFL PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 3 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Fixed asset investments
Interests in jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
Long term loans to jointly controlled entities are initially measured at transaction price, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in profit or loss.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.8
Stocks
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
MFL PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 4 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
1
1
MFL PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 5 -
3
Intangible fixed assets
Other
£
Cost
At 1 September 2022
34,003
Additions
2,163
At 31 August 2023
36,166
Amortisation and impairment
At 1 September 2022
14,139
Amortisation charged for the year
3,330
At 31 August 2023
17,469
Carrying amount
At 31 August 2023
18,697
At 31 August 2022
19,864
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 September 2022 and 31 August 2023
226,401
28,156
254,557
Depreciation and impairment
At 1 September 2022
70,750
25,378
96,128
Depreciation charged in the year
11,320
1,042
12,362
At 31 August 2023
82,070
26,420
108,490
Carrying amount
At 31 August 2023
144,331
1,736
146,067
At 31 August 2022
155,651
2,778
158,429
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
186,825
186,825
Loans to group undertakings and participating interests
2,380,995
4,068,102
2,567,820
4,254,927
MFL PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
5
Fixed asset investments
(Continued)
- 6 -
Fixed asset investment loans comprise of interest free loans of £1,150,000 (2022: £1,146,672) and interest bearing loans of £1,296,860 (2022: £3,071,225) that are repayable upon the completion of the joint venture project including NPV adjustment.
The first interest free loan of £600,000 has been discounted to net present value using an interest rate of 7.25% which is deemed to be the market rate for a similar debt instrument issued in 2018.
The second interest free loan of £500,000 (2022: £496,672) has been discounted to net present value using an interest rate of 2% which is deemed to be the market rate for a similar debt instrument issued in 2020.
The third interest free loan of £50,000 is expected to be repaid within 1 year and therefore not discounted to net present value.
The first interest bearing loan of (£650,000) (2022: £105,360) has been fully paid and the interest accrued was taken care of on 08/12/2022
The second interest bearing loan of £1,880,995 (2022: £2,965,865) incurs interest at a rate of 2% per annum and interest is accrued in the balance.
Movements in fixed asset investments
Shares in joint ventures
Loans to joint ventures
Total
£
£
£
Cost or valuation
At 1 September 2022
186,825
4,068,102
4,254,927
Additions
-
530,000
530,000
Release to profit and loss
-
171,117
171,117
Disposals
-
(2,388,224)
(2,388,224)
At 31 August 2023
186,825
2,380,995
2,567,820
Carrying amount
At 31 August 2023
186,825
2,380,995
2,567,820
At 31 August 2022
186,825
4,068,102
4,254,927
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
101,677
10,035
Prepayments and accrued income
2,867
3,030
104,544
13,065
MFL PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 7 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
3,044,249
4,188,036
Trade creditors
56,169
167,958
Taxation and social security
10,033
Other creditors
186,731
669,900
Accruals and deferred income
18,625
3,343
3,305,774
5,039,270
Bank loans and overdrafts are secured by way of a fixed charge over the cash held at UBS AG which has been guaranteed by the Director.
8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
1
1
1
1
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
2,500
2,500
10
Related party transactions
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due to related parties
£
£
Owners holding a participating interest
186,691
826,442
The amounts due to owners holding a participating interest were interest free and repayable on demand.
MFL PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 8 -
11
Prior period adjustment
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Aug 2022
£
£
£
Fixed assets
Investments
4,404,722
(149,795)
4,254,927
Capital and reserves
Profit and loss reserves
(365,696)
(149,795)
(515,491)
Notes to reconciliation
The prior year adjustment is in relation to the correction of loans to joint ventures which were incorrectly stated in the year ended 31 August 2022.