MULGRAVE PROPERTY GROUP LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Company Registration No. 10615747 (England and Wales)
MULGRAVE PROPERTY GROUP LTD
COMPANY INFORMATION
Directors
C E W Phipps, Marquis of Normanby
J Lloyd
I P Hessay
M R Hills
Company number
10615747
Registered office
Unit D Chessingham Park
Common Road
Dunnington
York
YO19 5SE
Auditor
Hunter Gee Holroyd
Club Chambers
Museum Street
York
YO1 7DN
MULGRAVE PROPERTY GROUP LTD
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 31
MULGRAVE PROPERTY GROUP LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Review of the business

The principal activity of the Group is the development and sale of residential property.

In the year ended 31 March 2024 the Group’s turnover reduced to £12.6 million from £24.8 million in 2023. Gross profit reduced to £1.9 million (2023; £5.6 million) and the Group made a loss before tax of £1.7 million (2023; profit £2.4 million) .

The planning process has been particularly difficult in the last two years and the market for land increasingly competitive for the majority of the period. Despite widely reported demand for additional housing stock, the planning problems and challenging market conditions have forced a number of small and medium sized builders out of business. The limited availability of developable land has also meant that national housebuilders and specialist developers are now more willing to consider smaller sites, where the economies of scale mean that they are in a position to outbid the medium sized companies. The Group’s results for the year had been significantly impacted by these challenges with acquisitions being delayed and consequently there being a lack of product to sell in the year. We do not anticipate there being a significant improvement in this regard until after the election in July.

Despite these challenges the company continues to secure development opportunities subject to obtaining a satisfactory planning consent. A number of these opportunities are on smaller sites but we have more recently been actively pursuing some larger opportunities which we hope to acquire in the next couple of years. The Group has the flexibility to efficiently undertake both small and large sites across a range of price points.

Prior to this year, the market has been very good in our region and sales were generally at prices exceeding expectations at the time leading up to acquisition. Strong selling enabled the company to repay development finance facilities early and there was no bank funding at the start of the year.

Macroeconomic and political volatility, an inflationary environment, increased interest rates and the challenging planning regime have all impacted on the business and activity levels in 2024 have significantly reduced. Positive progress with planning towards the end of the year however means that we look forward with some confidence to a return to profitability in the near future.

Interest rate increases created a challenging market for first time buyers but demand is still generally strong, particularly for larger homes. A slow down at the lower end of the market has made sales completions more challenging and we have been obliged to reintroduce assisted sale and part exchange offers to conclude transactions.

Construction is generally progressing well on our sites although high rainfall has caused some challenges.

The Group’s development activities are undertaken by its’ subsidiaries. The choice of company undertaking each development is dependent on the structure and provider of any external development funding. Activity in each company fluctuates depending on site acquisitions and progress through the planning system.

We measure successful development in several ways including the provision of high-quality housing, aesthetically attractive living spaces, integrated affordable housing and environmentally responsible building.

The company is registered with NHBC and the Home Builders Federation and the New Homes Quality Board.

 

MULGRAVE PROPERTY GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Principal risks and uncertainties

Like all businesses, the group faces a range of risks and uncertainties. The principal risks at present are:

1. Macroeconomic Environment and Market Risk - Sales reservations have still held up well but we control expenditure on sites to manage cash flow in line with foreseeable sales. Good mortgage availability and good levels of employment have been helpful in terms of managing volatility in selling price and demand, but interest rate rises have reduced the range of mortgages available in the market.

We target our site acquisitions based on our understanding of the marketplace and seek lower risk opportunities when market fundamentals dictate.

2. Resources - the availability of materials, import duty and increased supply chain uncertainty will not help cost control or the availability of skilled staff, subcontractors, and materials in a competitive market. The supply of labour is difficult to predict and competition from the larger developers for the finite labour pool is another challenge to the business. When required we do however continue to attract staff from larger developers by offering competitive reward packages and a supportive team environment. We endeavour to identify and work in partnership with a highly skilled and reliable group of subcontractors. We strive to build responsibly on sites with local building trade professionals.

3. Land - the group has been successful in securing development sites both on and off market. We are regularly approached by landowners who appreciate our building style and range of house types who wish to work with us to acquire then develop their land. Our target sites are generally smaller than the major national house builders, but the market is still reasonably competitive and if necessary, we will consider bidding for sites based on a lower required return where we consider the risk profile to justify.

4. Liquidity and Funding - we currently use a small group of flexible and creative funders, including government agencies who offer a variety of routes to funding including joint ventures, deferred land payments and traditional development funding to take the business forward alongside our shareholder support. Development and performance Strategy and Future Outlook The company will continue to purchase well-located sites within sensible travelling distance from our head office near York. Our aim is to offer a high quality, well-specified and value for money new house in a wide range of house types to purchasers across a range of price bands. Energy efficiency and environmental concerns are important to us and their impact on design and procurement and development will increasingly impact on our business in the future

 

 

Development and performance

Strategy and Future Outlook

The group will continue to purchase well-located sites within sensible travelling distance from our head office near York. Our aim is to offer a high quality, well-specified and value for money new house in a wide range of house types to purchasers across a range of price bands.

 

Energy efficiency and environmental concerns are important to us and their impact on design and procurement and development will increasingly impact on our business in the future.

MULGRAVE PROPERTY GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Key performance indicators

Key performance indicators (KPls) for the current and preceding year are as follows:

 

 

 

 

 

2024

 

2023

Turnover:

 

 

 

 

 

 

House Sale Turnover

 

 

£12,562,265

 

£22,755,047

Part Exchange Sales

 

 

£640,000

 

£349,500

 

 

 

 

 

 

 

 

 

 

 

 

Gross Profit on House Sales

 

£1,772,731

 

£5,634,704

 

 

 

 

 

 

 

Gross Margin on House Sales

 

13.43%

 

24.70%

 

 

 

 

 

 

 

(Loss)/Profit before taxation

(£1,668,932)

£2,422,001

 

 

 

 

 

 

 

 

 

 

 

 

 

On behalf of the board

C E W Phipps, Marquis of Normanby
Director
1 August 2024
MULGRAVE PROPERTY GROUP LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

No preference dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

C E W Phipps, Marquis of Normanby
J Lloyd
I P Hessay
M R Hills
Auditor

The auditor, Hunter Gee Holroyd, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the principal activities of the group.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

MULGRAVE PROPERTY GROUP LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
On behalf of the board
C E W Phipps, Marquis of Normanby
Director
1 August 2024
MULGRAVE PROPERTY GROUP LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MULGRAVE PROPERTY GROUP LTD
- 6 -
Opinion

We have audited the financial statements of Mulgrave Property Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

MULGRAVE PROPERTY GROUP LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MULGRAVE PROPERTY GROUP LTD
- 7 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

MULGRAVE PROPERTY GROUP LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MULGRAVE PROPERTY GROUP LTD
- 8 -

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

•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 of the construction sector;

 

•we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery and employment legislation;

 

•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;

 

•assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and

 

•investigated the rationale behind significant or unusual transactions;

 

 

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;

 

•reading the minutes of meetings of those charged with governance; and

 

•enquiring of management as to actual and potential litigation and claims;

 

 

There are inherent limitations in our audit procedures described 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: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

MULGRAVE PROPERTY GROUP LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MULGRAVE PROPERTY GROUP LTD
- 9 -

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 2006. Our 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 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

Nigel Everard (Senior Statutory Auditor)
For and on behalf of Hunter Gee Holroyd
5 August 2024
Chartered Accountants
Statutory Auditor
Club Chambers
Museum Street
York
YO1 7DN
MULGRAVE PROPERTY GROUP LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
16,148,594
24,857,402
Cost of sales
(14,313,375)
(19,221,766)
Gross profit
1,835,219
5,635,636
Administrative expenses
(3,204,999)
(3,120,871)
Other operating income
1,730
420
Operating (loss)/profit
4
(1,368,050)
2,515,185
Interest receivable and similar income
7
3,700
605
Interest payable and similar expenses
8
(304,582)
(93,789)
(Loss)/profit before taxation
(1,668,932)
2,422,001
Tax on (loss)/profit
9
428,464
(484,071)
(Loss)/profit for the financial year
22
(1,240,468)
1,937,930
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
MULGRAVE PROPERTY GROUP LTD
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
188,783
208,147
Current assets
Stocks
13
18,841,922
11,501,503
Debtors
14
1,163,427
835,829
Cash at bank and in hand
950,746
3,796,784
20,956,095
16,134,116
Creditors: amounts falling due within one year
15
(11,202,369)
(5,144,425)
Net current assets
9,753,726
10,989,691
Total assets less current liabilities
9,942,509
11,197,838
Creditors: amounts falling due after more than one year
16
(10,225)
(17,212)
Provisions for liabilities
Deferred tax liability
19
33,465
41,339
(33,465)
(41,339)
Net assets
9,898,819
11,139,287
Capital and reserves
Called up share capital
21
8,000,160
8,000,160
Profit and loss reserves
22
1,898,659
3,139,127
Total equity
9,898,819
11,139,287

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 1 August 2024 and are signed on its behalf by:
01 August 2024
C E W Phipps, Marquis of Normanby
Director
Company registration number 10615747 (England and Wales)
MULGRAVE PROPERTY GROUP LTD
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
188,783
208,147
Investments
11
1,500,103
1,500,103
1,688,886
1,708,250
Current assets
Debtors
14
12,186,556
8,782,655
Cash at bank and in hand
120,896
2,552,931
12,307,452
11,335,586
Creditors: amounts falling due within one year
15
(3,749,953)
(2,236,104)
Net current assets
8,557,499
9,099,482
Total assets less current liabilities
10,246,385
10,807,732
Creditors: amounts falling due after more than one year
16
(8,781)
(17,212)
Provisions for liabilities
Deferred tax liability
19
33,465
41,339
(33,465)
(41,339)
Net assets
10,204,139
10,749,181
Capital and reserves
Called up share capital
21
8,000,159
8,000,159
Profit and loss reserves
22
2,203,980
2,749,022
Total equity
10,204,139
10,749,181

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £545,042 (2023 - £1,771,435 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 1 August 2024 and are signed on its behalf by:
01 August 2024
C E W Phipps, Marquis of Normanby
Director
Company registration number 10615747 (England and Wales)
MULGRAVE PROPERTY GROUP LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022
8,000,160
1,201,197
9,201,357
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
1,937,930
1,937,930
Balance at 31 March 2023
8,000,160
3,139,127
11,139,287
Year ended 31 March 2024:
Loss and total comprehensive income for the year
-
(1,240,468)
(1,240,468)
Balance at 31 March 2024
8,000,160
1,898,659
9,898,819
MULGRAVE PROPERTY GROUP LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022
8,000,159
977,587
8,977,746
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
1,771,435
1,771,435
Balance at 31 March 2023
8,000,159
2,749,022
10,749,181
Year ended 31 March 2024:
Loss and total comprehensive income for the year
-
(545,042)
(545,042)
Balance at 31 March 2024
8,000,159
2,203,980
10,204,139
MULGRAVE PROPERTY GROUP LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
25
(7,497,000)
800,259
Interest paid
(304,582)
(93,789)
Income taxes paid
(308,085)
(484,170)
Net cash (outflow)/inflow from operating activities
(8,109,667)
222,300
Investing activities
Purchase of tangible fixed assets
(75,752)
(73,513)
Proceeds from disposal of tangible fixed assets
28,466
6,573
Interest received
3,700
605
Net cash used in investing activities
(43,586)
(66,335)
Financing activities
Proceeds from new bank loans
6,643,899
-
Repayment of bank loans
(1,328,605)
-
Payment of finance leases obligations
(8,079)
(7,729)
Net cash generated from/(used in) financing activities
5,307,215
(7,729)
Net (decrease)/increase in cash and cash equivalents
(2,846,038)
148,236
Cash and cash equivalents at beginning of year
3,796,784
3,648,548
Cash and cash equivalents at end of year
950,746
3,796,784
MULGRAVE PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
1
Accounting policies
Company information

Mulgrave Property Group Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit D Chessingham Park, Common Road, Dunnington, York, YO19 5SE.

 

The group consists of Mulgrave Property Group Ltd and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Mulgrave Property Group Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

MULGRAVE PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.3
Going concern

In order to prepare the financial statements on the going concern basis, the directors prepare detailed financial projections which take account of normal operating conditions and known variable factors that have affected the forecasts in the past.

 

The directors have satisfied themselves that the company has sufficient resources to continue as a going concern,

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable on legal completion of a newly built residential property sale. Profit is recognised taking account of estimated costs to complete based on valuations prepared by the commercial team.

Revenue from the sale of part exchange properties is recognised when the sale completes at the sale price.

Revenue from contracts for the provision of building work is recognised by reference to interim payment certificates verified by an independent consultant.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
20% straight line
Fixtures and fittings
20% straight line
Office equipment
20% straight line
Motor vehicles
20% straight line

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 recognised in the profit and loss account.

1.6
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

MULGRAVE PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.7
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

MULGRAVE PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
1.8
Stocks

Stocks are stated at the lower of cost and net realisable value. Land being developed and undeveloped land with planning consent is measured at cost including associated costs of acquisition. Work in progress is reviewed on a regular basis and comprises direct building materials, sub contract services, professional fees, directly attributable labour, site expenses and marketing costs. Net realisable value is the estimated selling price of completed houses less the estimated costs to complete. the company carries out regular reviews to identify any indications of impairment. Irrecoverable planning costs are written off immediately.

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 and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

MULGRAVE PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -
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 or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the 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 liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

MULGRAVE PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the group 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 group.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’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 if, and only if, there is 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, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

MULGRAVE PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 22 -
1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

The commercial department carries out regular valuations of the degree of completion of each site and estimates the costs to complete each development based on their assessment of factors that affect the financial outcome. Development costs are allocated between the individual house units constructed and those to be built. Estimated profit is allocated evenly across each unit, including affordable houses.

 

These assessments include a degree of estimation uncertainty which is mitigated in part of the fixed price contracts for certain services or known construction quantities for each house type. However, profitability remains an estimate which depends on provisions for future costs which in turn are based on estimates of site conditions. Profitability also relies on the selling price of property being stable and predictable. The directors have satisfied themselves that site margins have remained stable over a two-year period.

 

The cost of land is included in work in progress at cost and reviewed periodically for indications of impairment with all the other components of work in progress.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Property development
13,229,266
23,130,247
Contracting turnover
2,919,328
1,727,155
16,148,594
24,857,402
MULGRAVE PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Turnover and other revenue
(Continued)
- 23 -
2024
2023
£
£
Other revenue
Interest income
3,700
605
4
Operating (loss)/profit
2024
2023
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Fees payable to the group's auditor for the audit of the group's financial statements
4,800
5,100
Depreciation of owned tangible fixed assets
59,654
69,148
Loss/(profit) on disposal of tangible fixed assets
6,996
(2,186)
Operating lease charges
21,083
11,318
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
39
36
33
33

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,703,794
1,650,288
1,703,794
1,650,288
Social security costs
255,110
252,119
255,110
252,119
Pension costs
406,208
305,950
406,208
305,950
2,365,112
2,208,357
2,365,112
2,208,357
MULGRAVE PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
601,761
636,368
Company pension contributions to defined contribution schemes
84,995
27,438
686,756
663,806
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
336,921
336,037
Company pension contributions to defined contribution schemes
8,760
8,760
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
3,700
605
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
205,976
-
Other interest on financial liabilities
98,606
93,789
Total finance costs
304,582
93,789
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
480,084
Deferred tax
Origination and reversal of timing differences
(428,464)
3,987
Total tax (credit)/charge
(428,464)
484,071
MULGRAVE PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
9
Taxation
(Continued)
- 25 -

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
(Loss)/profit before taxation
(1,668,932)
2,422,001
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(417,233)
460,180
Tax effect of expenses that are not deductible in determining taxable profit
3,327
2,525
Tax effect of utilisation of tax losses not previously recognised
-
0
(702)
Unutilised tax losses carried forward
405,862
21,210
Permanent capital allowances in excess of depreciation
8,044
(3,129)
Deferred tax movement
(428,464)
3,987
Taxation (credit)/charge
(428,464)
484,071
10
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Office equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
98,504
6,510
24,104
251,400
380,518
Additions
11,149
-
0
608
63,995
75,752
Disposals
-
0
-
0
(7,046)
(67,594)
(74,640)
At 31 March 2024
109,653
6,510
17,666
247,801
381,630
Depreciation and impairment
At 1 April 2023
88,272
4,409
12,492
67,198
172,371
Depreciation charged in the year
6,132
610
3,412
49,500
59,654
Eliminated in respect of disposals
-
0
-
0
(7,046)
(32,132)
(39,178)
At 31 March 2024
94,404
5,019
8,858
84,566
192,847
Carrying amount
At 31 March 2024
15,249
1,491
8,808
163,235
188,783
At 31 March 2023
10,232
2,101
11,612
184,202
208,147
MULGRAVE PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Tangible fixed assets
(Continued)
- 26 -
Company
Plant and equipment
Fixtures and fittings
Office equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
98,504
6,510
24,104
251,400
380,518
Additions
11,149
-
0
608
63,995
75,752
Disposals
-
0
-
0
(7,046)
(67,594)
(74,640)
At 31 March 2024
109,653
6,510
17,666
247,801
381,630
Depreciation and impairment
At 1 April 2023
88,272
4,409
12,492
67,198
172,371
Depreciation charged in the year
6,132
610
3,412
49,500
59,654
Eliminated in respect of disposals
-
0
-
0
(7,046)
(32,132)
(39,178)
At 31 March 2024
94,404
5,019
8,858
84,566
192,847
Carrying amount
At 31 March 2024
15,249
1,491
8,808
163,235
188,783
At 31 March 2023
10,232
2,101
11,612
184,202
208,147
11
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
1,500,103
1,500,103
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 March 2024
1,500,103
Carrying amount
At 31 March 2024
1,500,103
At 31 March 2023
1,500,103
12
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

MULGRAVE PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
12
Subsidiaries
(Continued)
- 27 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Mulgrave Residential Limited
England & Wales
Ordinary
100.00
Mulgrave Developments Limited
England & Wales
Ordinary
100.00
Mulgrave Homes Limited
England & Wales
Ordinary
100.00
Mulgrave Properties Limited
England & Wales
Ordinary
100.00
Mulgrave Ventures Limited
England & Wales
Ordinary
100.00
MP (Easingwold) Limited
England & Wales
Ordinary
-

MP (Easingwold) Limited is a company under common control and managed on a unified basis with the group.

 

13
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Work in progress
18,621,922
11,076,503
-
-
Part exchange houses
220,000
425,000
-
0
-
0
18,841,922
11,501,503
-
-
14
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
83,367
171,961
-
0
-
0
Unpaid share capital
1
1
-
0
-
0
Amounts owed by group undertakings
-
-
11,857,385
8,651,823
Other debtors
560,509
565,791
60,865
32,756
Prepayments and accrued income
98,960
98,076
98,960
98,076
742,837
835,829
12,017,210
8,782,655
Deferred tax asset (note 19)
420,590
-
0
169,346
-
0
1,163,427
835,829
12,186,556
8,782,655
MULGRAVE PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
15
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
17
5,315,294
-
0
-
0
-
0
Obligations under finance leases
18
8,431
8,079
8,431
8,079
Trade creditors
1,812,426
1,870,103
49,636
42,466
Amounts owed to group undertakings
-
0
-
0
1
1
Corporation tax payable
-
0
308,085
-
0
14,382
Other creditors
3,759,271
2,183,487
3,625,414
2,123,157
Accruals and deferred income
306,947
774,671
66,471
48,019
11,202,369
5,144,425
3,749,953
2,236,104
16
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
18
8,781
17,212
8,781
17,212
Other creditors
1,444
-
0
-
0
-
0
10,225
17,212
8,781
17,212
17
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
5,315,294
-
0
-
0
-
0
Payable within one year
5,315,294
-
0
-
0
-
0

All bank loans were secured by first legal charges over all of the property, assets and undertaking owned by Mulgrave Developments Ltd and Mulgrave Homes Ltd and were supported by Interest Shortfall Guarantees and Costs Overrun Guarantees.

 

MULGRAVE PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
18
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
8,431
8,079
8,431
8,079
In two to five years
8,781
17,212
8,781
17,212
17,212
25,291
17,212
25,291
19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
33,465
41,339
-
-
Tax losses
-
-
420,590
-
33,465
41,339
420,590
-
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances
33,465
41,339
-
-
Tax losses
-
-
169,346
-
33,465
41,339
169,346
-
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
41,339
41,339
Credit to profit or loss
(428,464)
(177,220)
Asset at 31 March 2024
(387,125)
(135,881)
MULGRAVE PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
406,208
305,950

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,000,159
2,000,159
2,000,160
2,000,160
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
6,000,000
6,000,000
6,000,000
6,000,000
Preference shares classified as equity
6,000,000
6,000,000
Total equity share capital
8,000,159
8,000,159

The additional share in issue in respect of the group represents the entire share capital of MP (Easingwold) Limited, a company registered in England and Wales under common control and managed on a unified basis with the group.

22
Reserves
Profit and loss reserves

This reserve records retained earnings and accumulated losses and is distributable.

23
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
38,430
50,047
38,430
50,047
Between two and five years
62,463
88,732
62,463
88,732
100,893
138,779
100,893
138,779
MULGRAVE PROPERTY GROUP LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
24
Related party transactions
Transactions with related parties

The amounts owed to related parties above is in respect of a loan from The Mulgrave Estate to Mulgrave Property Group Limited.

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
Other related parties
3,536,044
2,043,806

The amounts owed to related parties above is in respect of a loan from the shareholder to Mulgrave Property Group Limited.

25
Cash (absorbed by)/generated from group operations
2024
2023
£
£
(Loss)/profit for the year after tax
(1,240,468)
1,937,930
Adjustments for:
Taxation (credited)/charged
(428,464)
484,071
Finance costs
304,582
93,789
Investment income
(3,700)
(605)
Loss/(gain) on disposal of tangible fixed assets
6,996
(2,186)
Depreciation and impairment of tangible fixed assets
59,654
69,148
Movements in working capital:
Increase in stocks
(7,340,419)
(671,338)
Decrease/(increase) in debtors
92,992
(140,388)
Increase/(decrease) in creditors
1,051,827
(970,162)
Cash (absorbed by)/generated from operations
(7,497,000)
800,259
26
Analysis of changes in net funds/(debt) - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
3,796,784
(2,846,038)
950,746
Borrowings excluding overdrafts
-
(5,315,294)
(5,315,294)
Obligations under finance leases
(25,291)
8,079
(17,212)
3,771,493
(8,153,253)
(4,381,760)
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