Company registration number 04291229 (England and Wales)
MCCARTHY MARLAND (RECYCLING) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
MCCARTHY MARLAND (RECYCLING) LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 11
MCCARTHY MARLAND (RECYCLING) LIMITED
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
3
9,566,466
-
0
Tangible assets
4
3,894,536
2,376,212
13,461,002
2,376,212
Current assets
Stocks
22,971
27,633
Debtors
5
6,584,275
3,132,569
Cash at bank and in hand
330,971
299,972
6,938,217
3,460,174
Creditors: amounts falling due within one year
6
(4,783,765)
(2,038,006)
Net current assets
2,154,452
1,422,168
Total assets less current liabilities
15,615,454
3,798,380
Creditors: amounts falling due after more than one year
7
(13,627,477)
(1,314,573)
Provisions for liabilities
8
(719,873)
(343,413)
Net assets
1,268,104
2,140,394
Capital and reserves
Called up share capital
9
220,000
220,000
Profit and loss reserves
10
1,048,104
1,920,394
Total equity
1,268,104
2,140,394

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 March 2023 the company was entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

MCCARTHY MARLAND (RECYCLING) LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023
31 March 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 30 August 2024 and are signed on its behalf by:
A Marland
Director
Company registration number 04291229 (England and Wales)
MCCARTHY MARLAND (RECYCLING) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 March 2022:
Balance at 1 April 2021
220,000
1,438,683
1,658,683
Year ended 31 March 2022:
Profit and total comprehensive income
-
698,311
698,311
Dividends
-
(216,600)
(216,600)
Balance at 31 March 2022
220,000
1,920,394
2,140,394
Year ended 31 March 2023:
Loss and total comprehensive income
-
(656,690)
(656,690)
Dividends
-
(215,600)
(215,600)
Balance at 31 March 2023
220,000
1,048,104
1,268,104
MCCARTHY MARLAND (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
1
Accounting policies
Company information

McCarthy Marland (Recycling) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Tetbury Commercial Recycling Centre, Babdown Airfield, Tetbury, Gloucester, GL8 8YL.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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

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

1.2
Turnover

Turnover represents amounts receivable for waste services provided, net of VAT and trade discounts.

1.3
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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 10 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.

1.4
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 Buildings
Straight line over 50 years
Plant and machinery
25% reducing balance
Fixtures, fittings & equipment
Straight line over 7 years
Computer equipment
25% reducing balance
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

MCCARTHY MARLAND (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

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.

1.7
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

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.

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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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.

MCCARTHY MARLAND (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 6 -
1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
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.

1.12
Retirement benefits

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

1.13
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.

MCCARTHY MARLAND (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 7 -

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 leases asset are consumed.

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Employees

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

2023
2022
Number
Number
Total
70
43
3
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2022
-
0
Transfers
9,922,734
At 31 March 2023
9,922,734
Amortisation and impairment
At 1 April 2022
-
0
Amortisation charged for the year
356,268
At 31 March 2023
356,268
Carrying amount
At 31 March 2023
9,566,466
At 31 March 2022
-
0
MCCARTHY MARLAND (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
4
Tangible fixed assets
Leasehold Buildings
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2022
780,780
2,214,965
132,376
167,433
1,856,286
5,151,840
Additions
20,440
119,655
14,660
20,546
185,488
360,789
Disposals
-
0
-
0
-
0
-
0
(44,293)
(44,293)
Transfers
(801,220)
2,012,951
-
0
-
0
501,676
1,713,407
At 31 March 2023
-
0
4,347,571
147,036
187,979
2,499,157
7,181,743
Depreciation and impairment
At 1 April 2022
129,310
1,481,819
87,516
157,367
919,616
2,775,628
Depreciation charged in the year
15,115
354,706
15,141
9,784
302,725
697,471
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(41,467)
(41,467)
Transfers
(144,425)
-
0
-
0
-
0
-
0
(144,425)
At 31 March 2023
-
0
1,836,525
102,657
167,151
1,180,874
3,287,207
Carrying amount
At 31 March 2023
-
0
2,511,046
44,379
20,828
1,318,283
3,894,536
At 31 March 2022
651,470
733,146
44,860
10,066
936,670
2,376,212
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,012,791
826,308
Amounts owed by group undertakings
4,467,825
1,515,478
Other debtors
64,350
642,950
Prepayments and accrued income
-
0
147,833
6,544,966
3,132,569
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset
39,309
-
0
Total debtors
6,584,275
3,132,569
MCCARTHY MARLAND (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loan
-
0
62,143
Obligations under finance leases
621,068
436,946
Trade creditors
1,558,908
879,255
Amounts owed to group undertakings
433,510
-
0
Corporation tax
252,878
21,680
Other taxation and social security
561,351
71,676
Other creditors
1,076,862
502,049
Accruals and deferred income
279,188
64,257
4,783,765
2,038,006

Included in other creditors is an invoice discounting facility amounting to £994,024 (2022: £439,301), which is secured by a fixed and floating charge over the assets of the company.

 

The obligations under finance leases are secured against the assets to which they relate.

7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loan
-
0
672,477
Obligations under finance leases
861,863
642,096
Amounts owed to group undertakings
12,765,614
-
0
13,627,477
1,314,573

The obligations under finance leases are secured against the assets to which they relate.

8
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
719,873
343,413
9
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
220,000 ordinary shares of £1 each
220,000
220,000
MCCARTHY MARLAND (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
10
Profit and loss reserves
2023
2022
as restated
£
£
At the beginning of the year
1,807,650
1,438,683
Prior year adjustment
112,744
-
0
As restated
1,920,394
1,438,683
(Loss)/profit for the year
(656,690)
698,311
Dividends declared and paid in the year
(215,600)
(216,600)
At the end of the year
1,048,104
1,920,394
11
Operating lease commitments
Lessee

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

2023
2022
£
£
2,611,522
-
0
12
Related party transactions

The company has taken advantage of the exemption available in Section 33.1A of FRS102 whereby it has not disclosed transactions with any wholly owned subsidiary undertakings within the group.

 

At the balance sheet date, £12,326 (2022: £12,326) was owed by McCarthy Property Services Limited, a related party by virtue of common control.

 

At the balance sheet date £50,000 (2022: £50,000) was owed to a director. The balance is interest free and repayable on demand.

13
Parent company

The parent company is McCarthy Marland Limited, whose registered office is 82 St John Street, London, EC1M 4JN.

The company is consolidated into the financial statements of the parent company, which is the smallest and largest group in which the company is consolidated into.

MCCARTHY MARLAND (RECYCLING) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
14
Prior period adjustment
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Mar 2022
£
£
£
Creditors due after one year
Finance leases
(754,840)
112,744
(642,096)
Capital and reserves
Profit and loss
1,807,650
112,744
1,920,394
Reconciliation of changes in equity
1 April
31 March
2021
2022
£
£
Adjustments to prior year
Total adjustments
-
112,744
Equity as previously reported
1,658,683
2,027,650
Equity as adjusted
1,658,683
2,140,394
Notes to reconciliation

The prior period adjustment is as a result of an error identified whereby the hire purchase liability was overstated by £112,744 in the 31st March 2022 financial statements.

2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2024.100No description of principal activityK McCarthyA MarlandJ ApplebyL PrattenfalsefalseFor the year ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.042912292022-04-012023-03-31042912292023-03-31042912292022-03-3104291229core:NetGoodwill2023-03-3104291229core:NetGoodwill2022-03-3104291229core:LandBuildingscore:OwnedOrFreeholdAssets2023-03-3104291229core:PlantMachinery2023-03-3104291229core:FurnitureFittings2023-03-3104291229core:ComputerEquipment2023-03-3104291229core:MotorVehicles2023-03-3104291229core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3104291229core:PlantMachinery2022-03-3104291229core:FurnitureFittings2022-03-3104291229core:ComputerEquipment2022-03-3104291229core:MotorVehicles2022-03-3104291229core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3104291229core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3104291229core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3104291229core:Non-currentFinancialInstrumentscore:AfterOneYear2022-03-3104291229core:Non-currentFinancialInstruments2023-03-3104291229core:Non-currentFinancialInstruments2022-03-3104291229core:ShareCapital2023-03-3104291229core:ShareCapital2022-03-3104291229core:RetainedEarningsAccumulatedLosses2023-03-3104291229core:RetainedEarningsAccumulatedLosses2022-03-3104291229core:ShareCapital2021-03-3104291229core:RetainedEarningsAccumulatedLosses2021-03-3104291229core:RetainedEarningsAccumulatedLossescore:PriorPeriodIncreaseDecrease2022-03-3104291229core:RetainedEarningsAccumulatedLossescore:PriorPeriodIncreaseDecrease2021-03-3104291229core:RetainedEarningsAccumulatedLosses2022-03-3104291229bus:Director22022-04-012023-03-3104291229core:RetainedEarningsAccumulatedLosses2021-04-012022-03-31042912292021-04-012022-03-3104291229core:RetainedEarningsAccumulatedLosses2022-04-012023-03-3104291229core:Goodwill2022-04-012023-03-3104291229core:LandBuildingscore:OwnedOrFreeholdAssets2022-04-012023-03-3104291229core:PlantMachinery2022-04-012023-03-3104291229core:FurnitureFittings2022-04-012023-03-3104291229core:ComputerEquipment2022-04-012023-03-3104291229core:MotorVehicles2022-04-012023-03-3104291229core:NetGoodwill2022-03-3104291229core:NetGoodwill2022-04-012023-03-3104291229core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3104291229core:PlantMachinery2022-03-3104291229core:FurnitureFittings2022-03-3104291229core:ComputerEquipment2022-03-3104291229core:MotorVehicles2022-03-31042912292022-03-3104291229core:CurrentFinancialInstruments2023-03-3104291229core:CurrentFinancialInstruments2022-03-3104291229bus:PrivateLimitedCompanyLtd2022-04-012023-03-3104291229bus:SmallCompaniesRegimeForAccounts2022-04-012023-03-3104291229bus:FRS1022022-04-012023-03-3104291229bus:AuditExempt-NoAccountantsReport2022-04-012023-03-3104291229bus:Director12022-04-012023-03-3104291229bus:Director32022-04-012023-03-3104291229bus:CompanySecretary12022-04-012023-03-3104291229bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP