Company registration number 12478605 (England and Wales)
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
COMPANY INFORMATION
Directors
M Lennox
S Kelly
J Murphy
Company number
12478605
Registered office
Moy House
69 Belvue Road
Northolt
Middlesex
UB5 5XS
Auditor
Evans Mockler Limited
5 Beauchamp Court
Victors Way
Barnet
London
EN5 5TZ
Business address
Moy House
69 Belvue Road
Northolt
Middlesex
UB5 5XS
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 7
Independent auditor's report
8 - 10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Company statement of cash flows
17
Notes to the financial statements
18 - 35
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -
The directors present the strategic report for the year ended 31 January 2024.
Fair review of the business
The group comprises of the parent company plus several trading companies that are well established in the UK construction industry. These companies specialise in groundworks, reinforced concrete frames, civil engineering and building works. The group’s head office is located in Northolt and the trading companies service clients in and around London and the South of England.
Key performance indicators
The key financial and non-financial performance indicators used to determine the performance of the group are set out below:
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Operating profit as a % of sales | | |
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The industry as a whole faced challenges during the period surrounding the second staircase ruling being introduced, tighter building regulations, delays in planning as well as the rise in interest rates and inflation leading to the start of some projects being delayed. This coupled with the directors continuing to be more selective with the projects that they undertake to mitigate the group’s exposure has led to a reduction on turnover year on year, albeit the GP margin has increased.
Future developments
Despite the current climate, the directors are continually securing work with well-established developers. The group has already secured repeat business with Tier 1 contractors as well as introducing new clients to the business, thus widening the client base, helping to reduce overall exposure. The directors are satisfied that the secured work scheduled for 2025 will provide a good base for the group to continue to develop and move towards improved margins and overall profitability.
Principal risks and uncertainties
Market risk
The business sector in which the group operates is heavily dependent upon the level of construction projects by both private and public concerns. The prevailing economic climate will influence the availability of suitable contracts.
Commercial Risk
The group targets high-quality, well-established clients and spreads its commercial risk by working with a client base spread across different sectors in London and the South of England. The group strives to offer a specialised product, tailored to the clients' needs and endeavours to forge long lasting business relationships to encourage regular, repeat business.
Liquidity risk
The group closely monitors its cash flow and contractual obligations to manage liquidity risk. New clients are financially assessed by directors prior to entering into new contracts and the directors obtain regular reports from credit monitoring agencies to monitor any potential exposure over the course of a contract.
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
Taxation risk
The group is exposed to financial risks from increases in tax rates and changes to the basis of taxation. The group engages experienced professional advisors to regularly monitor any legislative proposals and advise on the impact of any changes.
Our stakeholders
The directors have always paid due regard to the effect of their actions on various stakeholders who have an interest in the business. Section 172 of the Companies Act now requires us to report each year on the steps taken to fulfil these obligations towards our stakeholders. There are a great many parties who may be affected by the decisions made by the Board of directors in the day-today running of the business. It is the responsibility of the Board to balance these interests in order to deliver the best possible outcome for all concerned.
Clients
The quality of both our product and our client is of paramount importance. We aim to offer a professional service and construction solution within our specialised field of operation, delivered by competent, skilled, experienced, safety-conscious personnel in order to fulfil our contractual obligations and to exceed our client's expectations at a price that represents value. We aim to deliver the promise that we offer and construct a better, low carbon sustainable product and become our client's contractor of choice.
Subcontractors and suppliers
We actively engage with our subcontractors and suppliers who form an integral part of our operations and are considered to be key strategic partners. We encourage regular communication and try to create long standing relationships as we recognise the importance of their contribution towards our delivery of a high quality product and service.
Local community
We have a non-adversarial approach to business; we are friendly, approachable, courteous and respectful, in particular when it comes to the communities in which we work. We are always mindful of the environmental and health and safety impacts our presence may have in local areas and seek to reduce this as much as possible.
Our people
We want to maintain and further enhance our reputation by being the best in our specialised field and by making a difference through our people.
We are committed to increasing capability in our workforce and creating a safer industry. We are committed to a process of continuous measurable training for the development of our personnel as we recognise that the most important and valuable resource is our people. We invest in the training of our people in order to ensure that they possess the skills, qualifications and experience to deliver a better product to match our client's needs.
We actively encourage a work-life balance and we want to be a company that our people will be proud to work for. We are committed to equal opportunity, we offer apprenticeships and we sponsor graduates. We value our people and we take great pride in assisting them to reach their full career potential.
Equal opportunities
We are committed to equal opportunity in all facets of our business. We embrace diversity and we promote equality of opportunity; these are embedded in our day to day working practices. We recognise the great benefits in having a diverse workforce with different backgrounds, solely based on ability.
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -
Other performance indicators
Health, safety, and environmental policies
The group is dedicated to continually improving the performance of Health, Safety, Environmental and Quality standards and outcomes. This is demonstrated by the implementation of Modebest Minimum Standards across all of our sites and driving home the importance of behaviour safety culture through the in-house initiative SAFEMODE.
The group maintains Management Systems that are certified to ISO 45001:2018, ISO 14001:2015 and ISO 9001: 2015 as well as the Safety Schemes in Procurement (SSIP) Achilles' Building Confidence, CHAS and SMAS, demonstrating the group's capacity to manage health and safety for the activities we carry out.
The group is committed to promote a safe working culture, safeguarding the health, safety and wellbeing of all involved in company works. The group has strong accident / incident reporting procedures and is continually striving to reduce the possibility of any dangerous working by providing an educated, trained and competent workforce.
The group's continued commitment to reducing its carbon footprint and overall environmental impact is shown by achieving ISO 50001 this year. This was a large undertaking but one the group is very much committed to.
Quality control
The group has a Quality Management system which is Accredited to ISO 9001. We pride ourselves in delivering a quality product to our clients taking into consideration their need for health & safety, the environment and sustainability. As such the group also has accreditations for ISO 14001, 45001 and OHAS 18001. The management system is under constant review with processes being updated, changes and new technology to the industry being implemented.
We have recently implemented a fully accredited ISO 50001 Energy Management system which we are using to reduce our carbon emissions and energy use.
The sustainable approach is an integral part of our business model, which includes procurement, managing waste and resources, our core principle is to Build Once, Build Right. This ensures a quality product is provided to all our clients.
The group has various other accreditations and memberships, IFC is our Fire protection Installers Accreditation which ensures all fire stopping products which are installed are installed correctly and recorded. Others are SafeContractor, SMAS, Building confidence, CHSG, Builders Profile, Acclaim, Constructionline Gold, FORS Silver, CLOCS champion, CPA and membership to the Concrete Society.
Research and development
The group views research and development activity a vital part of sustaining competitive advantage and to this end will continue to invest by challenging traditional construction techniques wherever possible.
During the year, the group undertook several research and development (R&D) projects that sought to achieve advancements in technology. These advancements extended the overall knowledge or capability in the field of construction, specifically groundworks and reinforced concrete frames.
M Lennox
Director
5 August 2024
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 4 -
The directors present their annual report and financial statements for the year ended 31 January 2024.
Principal activities
The principal activity of the company and group continued to be that of specialised construction services.
Results and dividends
The results for the year are set out on page 11.
Ordinary dividends were paid amounting to £155,113. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
M Lennox
S Kelly
J Murphy
Financial instruments
Treasury operations and financial instruments
Objectives and policies
The group's principal financial instruments comprise bank balances, trade creditors, trade debtors, work in progress, inter-group loans and third party loan notes. The main purpose of these instruments is to raise funds for and to finance the group's operations. The group's approach to managing other risks applicable to the financial instruments concerned are shown below.
Liquidity' risk
The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.
Internal rate risk
The group's operations have been subject to the risk of interest rate fluctuations, as it primarily affects interest earning operations. Loans to and from companies under common control are interest-free.
Credit risk
The group's principal financial assets are trade debtors, amounts receivable on contracts, sales retentions and cash. The credit risk is mitigated by regular application for, and certification of, works completed under contractual agreements. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Auditor
Evans Mockler Limited were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 5 -
Energy and carbon report
In order to ensure the correct processes are followed, the ENCORD Construction CO2e Measurement Protocol, A Guide to reporting against the Green House Gas (GHG) Protocol for construction companies V1.0 May 2012, has been used to provide a guide to the reporting structure and calculations. Aligned with the GHG Protocol, and compliant with the GHG emissions and energy consumption reporting requirements of the Companies Act 2006 (Strategic and Directors’ Reports) Regulations 2013, and with Streamlined Energy and Carbon Reporting Regulations (SECR) 2019.
Sources of emissions
Scope 1 comprises direct emissions from operational sources controlled by the group. As per the GHG Protocol this focus is on transportation of materials, products, waste, and employees. The group has considered all Heavy Goods Vehicle emissions from the group as well as fuel usage from the van and car fleet.
Scope 2 includes the emissions from the generation of purchased electricity that is consumed at the group controlled offices, including Moy House, Cranford Yard and Dartford Precast Yard.
The group does not report on the scope 3 Emissions at present.
Identifying emission sources
Energy consumption associated with Scope 1 and 2 greenhouse gas emissions are measured and reported in line with SECR reporting requirements. Where available, energy use is captured directly (e.g., kWh of electricity) or otherwise it is converted to CO2e using the UK Government conversion factors (e.g., for diesel).
Emission reporting
In accordance with the Paris Agreement, the group measures and reports emissions arising from the seven main greenhouse gases that contribute to climate change, namely carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF6) and nitrogen trifluoride (NF3).
The effect of these emissions is reported as a single figure, carbon dioxide equivalent (CO2e), which represents their combined global warming potential.
Greenhouse gas emissions are calculated in line with the UK Government’s ‘Conversion Factors 2021. The GWPs used in the calculation of CO2e are based on the Intergovernmental Panel on Climate Change (IPCC) Fourth Assessment Report (AR4) over a 100-year period so that the Conversion Factors are consistent with current national and international reporting requirements.
The Scope 1 and 2 intensity metric is greenhouse gas emissions normalised by turnover - tCO2e per £1 million turnover. This metric is used in mainstream housebuilding financial reporting, and therefore encouraged by industry benchmarks such as NextGeneration, with uptake across the industry.
Due to the varying number of projects and different clients the group have, the group will be reporting per turnover.
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 6 -
Summary in table below.
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Heathrow Plant (UK) Ltd Fuel (HGV) | | | | |
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Heathrow Environmental Ltd Fuel (HGV) | | | | |
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Dartford Precast Ltd Fuel (HGV) | | | | |
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Heathrow Concrete Pumping Ltd Fuel HGV | | | | |
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Modebest Builders Ltd Fuel | | | | |
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Heathrow Plant (UK) Ltd Fuel (delivered) | | | | |
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MODEBEST AND HEATHROW GROUP HOLDINGS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 7 -
Energy efficiency action
In the period covered by the report, the group ensured that all the plant and vehicles purchased were in accordance with the applicable low emissions criteria and were stage 5 engines where applicable. All machines were fitted with Ad-blue or DPF’s where necessary and all lighting sourced was as low energy as possible. The group has also gained an ISO 50001 Accreditation in Energy Management which will enable the group to closely monitor the emissions through energy use more closely. The TCO2E/ £mil turnover for this reporting year is 24.6, the figure is reflective of the heavy civils works carried out during the year.
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
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.
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 group 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 group is aware of that information.
On behalf of the board
M Lennox
Director
5 August 2024
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MODEBEST AND HEATHROW GROUP HOLDINGS LTD
- 8 -
Opinion
We have audited the financial statements of Modebest and Heathrow Group Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 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, the company 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:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 January 2024 and of the group's profit 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.
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.
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:
the information given in the 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 strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MODEBEST AND HEATHROW GROUP HOLDINGS LTD
- 9 -
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:
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, 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.
Extent to which the audit was capable of detecting irregularities, including fraud
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:
we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the Directors (as required by auditing standards).
we had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.
with the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the Directors.
we communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.
we addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MODEBEST AND HEATHROW GROUP HOLDINGS LTD
- 10 -
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
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.
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.
Simon Toghill (Senior Statutory Auditor)
For and on behalf of Evans Mockler Limited
5 August 2024
Chartered Certified Accountants
Statutory Auditor
5 Beauchamp Court
Victors Way
Barnet
London
EN5 5TZ
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
77,603,259
100,248,145
Cost of sales
(71,943,162)
(93,032,733)
Gross profit
5,660,097
7,215,412
Administrative expenses
(5,257,091)
(3,633,245)
Operating profit
4
403,006
3,582,167
Interest receivable and similar income
8
38,080
8,375
Interest payable and similar expenses
9
(33,733)
(12,676)
Profit before taxation
407,353
3,577,866
Tax on profit
10
(111,596)
(805,884)
Profit for the financial year
295,757
2,771,982
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.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
GROUP BALANCE SHEET
AS AT 31 JANUARY 2024
31 January 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
11,086,539
12,934,295
Tangible assets
13
8,673,741
10,395,043
19,760,280
23,329,338
Current assets
Stocks
16
532,398
285,152
Debtors
17
24,816,032
30,024,847
Cash at bank and in hand
6,681,111
2,789,072
32,029,541
33,099,071
Creditors: amounts falling due within one year
18
(14,514,803)
(18,569,834)
Net current assets
17,514,738
14,529,237
Total assets less current liabilities
37,275,018
37,858,575
Creditors: amounts falling due after more than one year
19
(27,946,992)
(28,504,559)
Provisions for liabilities
Deferred tax liability
20
1,011,169
1,177,803
(1,011,169)
(1,177,803)
Net assets
8,316,857
8,176,213
Capital and reserves
Called up share capital
22
200
200
Profit and loss reserves
8,316,657
8,176,013
Total equity
8,316,857
8,176,213
The financial statements were approved by the board of directors and authorised for issue on 5 August 2024 and are signed on its behalf by:
05 August 2024
M Lennox
Director
Company registration number 12478605 (England and Wales)
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
COMPANY BALANCE SHEET
AS AT 31 JANUARY 2024
31 January 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
53,548
62,472
Investments
14
65,454,655
65,454,655
65,508,203
65,517,127
Current assets
Debtors
17
1,601,637
1,234,439
Cash at bank and in hand
2,267,473
714,495
3,869,110
1,948,934
Creditors: amounts falling due within one year
18
(41,105,423)
(38,884,659)
Net current liabilities
(37,236,313)
(36,935,725)
Total assets less current liabilities
28,271,890
28,581,402
Creditors: amounts falling due after more than one year
19
(27,808,705)
(28,358,705)
Net assets
463,185
222,697
Capital and reserves
Called up share capital
22
200
200
Profit and loss reserves
462,985
222,497
Total equity
463,185
222,697
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £395,601 (2023 - £423,966 profit).
The financial statements were approved by the board of directors and authorised for issue on 5 August 2024 and are signed on its behalf by:
05 August 2024
M Lennox
Director
Company registration number 12478605 (England and Wales)
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 February 2022
200
5,650,698
5,650,898
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
2,771,982
2,771,982
Dividends
11
-
(246,667)
(246,667)
Balance at 31 January 2023
200
8,176,013
8,176,213
Year ended 31 January 2024:
Profit and total comprehensive income for the year
-
295,757
295,757
Dividends
11
-
(155,113)
(155,113)
Balance at 31 January 2024
200
8,316,657
8,316,857
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 15 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 February 2022
200
45,198
45,398
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
423,966
423,966
Dividends
11
-
(246,667)
(246,667)
Balance at 31 January 2023
200
222,497
222,697
Year ended 31 January 2024:
Profit and total comprehensive income
-
395,601
395,601
Dividends
11
-
(155,113)
(155,113)
Balance at 31 January 2024
200
462,985
463,185
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
25
5,729,331
(2,394,544)
Interest paid
(33,733)
(12,676)
Income taxes (paid)/refunded
(691,681)
713,560
Net cash inflow/(outflow) from operating activities
5,003,917
(1,693,660)
Investing activities
Purchase of tangible fixed assets
(287,939)
(2,006,333)
Proceeds on disposal of tangible fixed assets
54,725
668,267
Interest received
38,080
8,375
Net cash used in investing activities
(195,134)
(1,329,691)
Financing activities
Repayment of borrowings
(500,000)
(3,322,403)
Payment of hire purchase obligations
(261,631)
(209,625)
Dividends paid to equity shareholders
(155,113)
(246,667)
Net cash used in financing activities
(916,744)
(3,778,695)
Net increase/(decrease) in cash and cash equivalents
3,892,039
(6,802,046)
Cash and cash equivalents at beginning of year
2,789,072
9,591,118
Cash and cash equivalents at end of year
6,681,111
2,789,072
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 17 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
1,781,216
2,631,647
Income taxes paid
(9,592)
(11,252)
Net cash inflow from operating activities
1,771,624
2,620,395
Investing activities
Interest received
36,467
2,947
Dividends received
400,000
400,000
Net cash generated from investing activities
436,467
402,947
Financing activities
Repayment of borrowings
(500,000)
(3,322,403)
Dividends paid to equity shareholders
(155,113)
(246,667)
Net cash used in financing activities
(655,113)
(3,569,070)
Net increase/(decrease) in cash and cash equivalents
1,552,978
(545,728)
Cash and cash equivalents at beginning of year
714,495
1,260,223
Cash and cash equivalents at end of year
2,267,473
714,495
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 18 -
1
Accounting policies
Company information
Modebest and Heathrow Group Holdings Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Moy House, 69 Belvue Road, Northolt, Middlesex, UB5 5XS.
The group consists of Modebest and Heathrow Group Holdings 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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Modebest and Heathrow Group Holdings 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 January 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.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 19 -
1.4
Going concern
The market is still facing challenges with continued market volatility, inflationary pressures and interest rate hikes. The directors are working closely with both clients and the supply chain to best mitigate the impact of these and believe that they have sufficient cash reserves to cover any temporary shortfall.
After reviewing the group’s forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue to trade as a going concern for the foreseeable future, and therefore they continue to adopt the going concern basis in preparing the group financial statements.
1.5
Turnover
Turnover 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 and represents:
Amounts receivable for work completed net of VAT and trade discounts. Sales are recognised on the basis of work measured, valued and certified at the year end. Further details of the revenue recognition criteria applied by the group can be found at "1.11 Construction Contracts" within these financial statements; and
The fair value of the consideration received or receivable for the plant and equipment hire services provided in the normal course of business, which is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. Income generated on a daily or weekly rate is recognised on the provision of the plant hire service.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is ten years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
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:
Leasehold land and buildings
10% straight-line method
Plant and equipment
10% straight-line method
Fixtures and fittings
25% straight-line method
Motor vehicles
25% reducing balance method
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.
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 20 -
1.8
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.
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.
1.9
Impairment of fixed assets
At each reporting period end date, the group 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.
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.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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.
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 21 -
1.11
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
1.12
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.
1.13
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.
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 22 -
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.14
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.
1.15
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 23 -
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.
1.16
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.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
Leases
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.
1.19
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.20
Assets obtained under hire purchase contracts are capitalised as tangible fixed assets and depreciated over their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of comprehensive income so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 24 -
1.21
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
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 recognised 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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Revenue recognition - Long term Contracts
Revenue recognition is a key area of judgement especially in companies operating in the construction industry. Recognition of turnover and profit on long term contracts requires management judgement regarding the anticipated final outcome of individual contracts and of the proportion of works completed at the balance sheet date. Management undertakes detailed reviews on a monthly basis in order to exercise judgement over the outcome of each contract and the associated risks and opportunities.
The value of work completed at the balance sheet date is assessed by undertaking surveys and completing internal valuations on each element of works and in progress. Regular management reviews of contract work in progress are undertaken.
The age, nature and recoverability of all debtors and amounts recoverable on long term contracts are reviewed regularly by management and provisions made where appropriate.
The directors have ensured that generally accepted industry practices and methodologies are followed by all relevant personnel and that accounting and quality management systems are regularly evaluated. Consistent procedures and management tools are in place to ensure that estimates are applied and results determined on a consistent basis.
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Construction contract income
77,603,259
100,248,145
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
77,603,259
100,248,145
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 25 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
11,026
(15,508)
Depreciation of owned tangible fixed assets
1,888,126
1,986,423
Loss/(profit) on disposal of tangible fixed assets
293,190
(267,365)
Amortisation of intangible assets
1,847,756
1,847,756
Operating lease charges
-
(1,128,499)
Relating to operating lease charges, during the year and in the prior year, the company received and made provision for rent credit receivable.
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
3,750
3,500
Audit of the financial statements of the company's subsidiaries
46,350
46,000
50,100
49,500
For other services
All other non-audit services
38,420
37,725
6
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
Directors
3
3
3
3
Administration and management
4
-
-
-
Operatives and engineers
3
-
-
-
Total
10
3
3
3
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
6
Employees
(Continued)
- 26 -
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
734,209
-
Social security costs
84,560
-
-
-
Pension costs
11,647
830,416
-
The group previously outsourced its payroll and payroll costs were recharged from a related company. During the year the group commenced the in-house operation of its payroll.
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
18,658
-
Company pension contributions to defined contribution schemes
191
-
Sums paid to third parties for directors' services
37,500
45,000
56,349
45,000
The group previously outsourced its payroll and payroll costs were recharged from a related company. During the year the group commenced the in-house operation of its payroll.
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
38,080
7,512
Other interest income
-
863
Total income
38,080
8,375
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
51
38
Other finance costs:
Interest on finance leases and hire purchase contracts
19,839
12,658
Other interest
13,843
-
Total finance costs
33,733
12,676
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 27 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
272,661
785,273
Adjustments in respect of prior periods
5,571
(482,136)
Total current tax
278,232
303,137
Deferred tax
Origination and reversal of timing differences
(166,636)
502,747
Total tax charge
111,596
805,884
The rate of corporation tax increased during the year from 19% to 25%.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
407,353
3,577,866
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
101,838
679,795
Tax effect of expenses that are not deductible in determining taxable profit
506,870
392,055
Tax effect of utilisation of tax losses not previously recognised
(77)
(40,267)
Adjustments in respect of prior years
5,571
(482,136)
Permanent capital allowances in excess of depreciation
169,600
(246,310)
Research and development tax credit
(475,000)
Deferred tax movement
(166,636)
502,747
Effect of change in corporation tax rate
(30,570)
Taxation charge
111,596
805,884
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
155,113
246,667
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 28 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 February 2023 and 31 January 2024
18,477,563
Amortisation and impairment
At 1 February 2023
5,543,268
Amortisation charged for the year
1,847,756
At 31 January 2024
7,391,024
Carrying amount
At 31 January 2024
11,086,539
At 31 January 2023
12,934,295
The company had no intangible fixed assets at 31 January 2024 or 31 January 2023.
13
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 February 2023
89,244
12,001,192
513,505
1,178,653
13,782,594
Additions
368,172
47,948
98,619
514,739
Disposals
(707,748)
(27,357)
(735,105)
At 31 January 2024
89,244
11,661,616
561,453
1,249,915
13,562,228
Depreciation and impairment
At 1 February 2023
26,772
2,569,150
278,016
513,612
3,387,550
Depreciation charged in the year
8,924
1,572,918
124,750
181,534
1,888,126
Eliminated in respect of disposals
(367,366)
(19,823)
(387,189)
At 31 January 2024
35,696
3,774,702
402,766
675,323
4,888,487
Carrying amount
At 31 January 2024
53,548
7,886,914
158,687
574,592
8,673,741
At 31 January 2023
62,472
9,432,041
235,489
665,041
10,395,043
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
13
Tangible fixed assets
(Continued)
- 29 -
Company
Leasehold land and buildings
£
Cost
At 1 February 2023 and 31 January 2024
89,244
Depreciation and impairment
At 1 February 2023
26,772
Depreciation charged in the year
8,924
At 31 January 2024
35,696
Carrying amount
At 31 January 2024
53,548
At 31 January 2023
62,472
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
627,782
562,291
Motor vehicles
130,403
82,981
758,185
645,272
-
-
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
65,454,655
65,454,655
65,454,655
65,454,655
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
14
Fixed asset investments
(Continued)
- 30 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 February 2023 and 31 January 2024
65,454,655
Carrying amount
At 31 January 2024
65,454,655
At 31 January 2023
65,454,655
15
Subsidiaries
Details of the company's subsidiaries at 31 January 2024 are as follows:
Name of undertaking
Class of
% Held
shares held
Direct
Indirect
Dartford Precast Limited
Ordinary
100.00
-
Heathrow Concrete Pumping Limited
Ordinary
100.00
-
Heathrow Environmental Limited
Ordinary
100.00
-
Heathrow Companies Group Limited
Ordinary
100.00
-
Heathrow Plant (UK) Limited
Ordinary
100.00
-
Modebest Builders Limited
Ordinary
-
100.00
Modebest Group Holdings Limited
Ordinary
100.00
-
Registered office addresses (all UK unless otherwise indicated):
Moy House, 69 Belvue Road, Northolt, UB5 5XS
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
532,398
285,152
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 31 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
7,954,246
12,326,347
6,918
6,918
Gross amounts owed by contract customers
15,389,899
11,149,957
Corporation tax recoverable
464,783
51,332
Amounts owed by group undertakings
-
-
1,466,627
928,610
Other debtors
571,257
6,078,893
128,092
293,333
Prepayments and accrued income
435,847
418,318
5,578
24,816,032
30,024,847
1,601,637
1,234,439
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Obligations under hire purchase
193,472
220,736
Other borrowings
600,000
550,000
600,000
550,000
Trade creditors
9,157,811
7,496,340
88,807
47,188
Gross amounts owed to contract customers
1,182,047
839,907
Amounts owed to group undertakings
40,362,877
37,045,542
Corporation tax payable
3,545
9,592
Other taxation and social security
145,368
7,641
-
-
Other creditors
74,035
6,414,680
37,524
1,214,984
Accruals and deferred income
3,162,070
3,040,530
12,670
17,353
14,514,803
18,569,834
41,105,423
38,884,659
Obligations under hire purchase contracts are secured by a fixed charge over the specific assets of the group.
Other borrowings are secured by way of fixed and floating charges over assets of the group.
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Obligations under hire purchase
138,287
145,854
Other borrowings
27,808,705
28,358,705
27,808,705
28,358,705
27,946,992
28,504,559
27,808,705
28,358,705
Obligations under hire purchase contracts are secured by a fixed charge over the specific assets of the group.
Other borrowings are secured by way of fixed and floating charges over assets of the group.
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 32 -
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
1,011,169
1,177,803
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 February 2023
1,177,803
-
Credit to profit or loss
(166,634)
-
Liability at 31 January 2024
1,011,169
-
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
11,647
-
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.
22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
200
200
200
200
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 33 -
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
928,813
928,813
928,813
928,813
Between two and five years
3,715,253
3,715,253
3,715,253
3,715,253
In over five years
1,083,616
2,012,429
1,083,616
2,012,429
5,727,682
6,656,495
5,727,682
6,656,495
24
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
300,581
57,500
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Purchases
Purchases
2024
2023
£
£
Group
Entities under common control
7,711,765
45,656,424
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2024
2023
£
£
Group
Entities under common control
37,524
820,707
Company
Entities under common control
37,524
1,214,984
Other information
During the year dividends totalling £155,113 (2023 - £246,667) were paid to the directors.
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 34 -
25
Cash generated from/(absorbed by) group operations
2024
2023
£
£
Profit for the year after tax
295,757
2,771,982
Adjustments for:
Taxation charged
111,596
805,884
Finance costs
33,733
12,676
Investment income
(38,080)
(8,375)
Loss/(gain) on disposal of tangible fixed assets
293,190
(267,365)
Amortisation and impairment of intangible assets
1,847,756
1,847,756
Depreciation and impairment of tangible fixed assets
1,888,126
1,986,423
Movements in working capital:
Increase in stocks
(247,246)
(11,522)
Decrease/(increase) in debtors
5,622,266
(7,065,334)
Decrease in creditors
(4,077,767)
(2,466,669)
Cash generated from/(absorbed by) operations
5,729,331
(2,394,544)
26
Cash generated from operations - company
2024
2023
£
£
Profit for the year after tax
395,601
423,966
Adjustments for:
Taxation charged
3,545
9,592
Investment income
(436,467)
(402,947)
Depreciation and impairment of tangible fixed assets
8,924
8,924
Movements in working capital:
(Increase)/decrease in debtors
(367,198)
196,658
Increase in creditors
2,176,811
2,395,454
Cash generated from operations
1,781,216
2,631,647
MODEBEST AND HEATHROW GROUP HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 35 -
27
Analysis of changes in net debt - group
1 February 2023
Cash flows
New hire purchase agreements
31 January 2024
£
£
£
£
Cash at bank and in hand
2,789,072
3,892,039
-
6,681,111
Borrowings excluding overdrafts
(28,908,705)
500,000
-
(28,408,705)
Obligations under hire purchase
(366,590)
261,631
(226,800)
(331,759)
(26,486,223)
4,653,670
(226,800)
(22,059,353)
28
Analysis of changes in net debt - company
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
714,495
1,552,978
2,267,473
Borrowings excluding overdrafts
(28,908,705)
500,000
(28,408,705)
(28,194,210)
2,052,978
(26,141,232)
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