Company registration number 05997601 (England and Wales)
MCCARTHY MARLAND H2 LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
MCCARTHY MARLAND H2 LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 11
MCCARTHY MARLAND H2 LIMITED
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 1 -
31 March 2023
30 June 2022
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
4
327,443
Tangible assets
6
5,581,017
Investments
5
30,100
5,938,560
Current assets
Debtors
7
5,168,273
1,100,392
Cash at bank and in hand
2,527,884
5,168,273
3,628,276
Creditors: amounts falling due within one year
8
(3,755,574)
Net current assets/(liabilities)
5,168,273
(127,298)
Total assets less current liabilities
5,168,273
5,811,262
Creditors: amounts falling due after more than one year
9
(436,592)
Provisions for liabilities
(473,540)
Net assets
5,168,273
4,901,130
Capital and reserves
Called up share capital
375
375
Share premium account
50
50
Profit and loss reserves
5,167,848
4,900,705
Total equity
5,168,273
4,901,130
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 period 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 period 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 H2 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:
Mr A Marland
Director
Company registration number 05997601 (England and Wales)
MCCARTHY MARLAND H2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
- 3 -
1
Accounting policies
Company information
McCarthy Marland H2 Limited is a private company limited by shares incorporated in England and Wales. The registered office is 82 St John Street, London, EC1M 4JN.
1.1
Reporting period
The financial statements for the current accounting period were prepared from 01 July 2022 to 31 March 2023 which was a period of less than one year.
1.2
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
The financial statements of the company are consolidated in the financial statements of McCarthy Marland H1 Limited. These consolidated financial statements are available from its registered office; 82 St. John Street, London, England, EC1M 4JN.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and 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. The turnover shown in the profit and loss account arises from the following activities:
MCCARTHY MARLAND H2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
1.4
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.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
1% straight line
Plant and equipment
15% and 20% reducing balance and 15% straight line
Motor vehicles
25% and 35% reducing balance and 25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and 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.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
MCCARTHY MARLAND H2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
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.
1.10
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.
1.11
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.
MCCARTHY MARLAND H2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 6 -
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.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
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.
MCCARTHY MARLAND H2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 7 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2023
2022
Number
Number
Total
42
81
4
Intangible fixed assets
Goodwill
£
Cost
At 1 July 2022
1,091,628
Transfers
(1,091,628)
At 31 March 2023
Amortisation and impairment
At 1 July 2022
764,185
Amortisation charged for the period
43,709
Eliminated on revaluation
(807,894)
At 31 March 2023
Carrying amount
At 31 March 2023
At 30 June 2022
327,443
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
30,100
MCCARTHY MARLAND H2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
5
Fixed asset investments
(Continued)
- 8 -
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 July 2022
30,100
Transfers
(30,100)
At 31 March 2023
-
Carrying amount
At 31 March 2023
-
At 30 June 2022
30,100
6
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 July 2022
3,421,497
6,366,538
9,788,035
Disposals
(254,339)
(254,339)
Transfers
(3,421,497)
(6,112,199)
(9,533,696)
At 31 March 2023
Depreciation and impairment
At 1 July 2022
619,222
3,587,796
4,207,018
Depreciation charged in the period
15,241
202,935
218,176
Eliminated in respect of disposals
(193,160)
(193,160)
Transfers
(634,463)
(3,597,571)
(4,232,034)
At 31 March 2023
Carrying amount
At 31 March 2023
At 30 June 2022
2,802,275
2,778,742
5,581,017
MCCARTHY MARLAND H2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 9 -
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
823,177
Other debtors
277,215
1,100,392
2023
2022
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
5,168,273
Total debtors
5,168,273
1,100,392
8
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
1,417,289
Trade creditors
565,630
Amounts owed to group undertakings
772,496
Corporation tax
121,288
Other taxation and social security
310,006
Other creditors
568,865
3,755,574
9
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
436,592
10
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
£
£
409,610
MCCARTHY MARLAND H2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 10 -
11
Related party transactions
Balances with companies controlled by the company are disclosed within debtors and creditors notes. Advantage has been taken of the exemption with section 33 of FRS 102 not to disclose transactions with wholly-owned subsidiary undertakings.
12
Parent company
During the financial period, there was no single ultimate controlling party.
The ultimate parent company, McCarthy Marland Limited, is the smallest and largest group for which group financial statements are prepared which are available to the public at its registered address; 82 St. John Street, London, England, EC1M 4JN.
MCCARTHY MARLAND H2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 11 -
13
Prior period adjustment
Reconciliation of changes in equity
1 April
30 June
2021
2022
£
£
Adjustments to prior period
Goodwill
-
10
Tangible assets
-
33,963
Trade debtors
-
2,186
Other debtors
-
35,306
Cash at bank and in hand
-
3,622
Trade creditors
-
(4,272)
Amounts due to fellow group undertakings
-
7,604
Other creditors
-
112,258
Total adjustments
-
190,677
Equity as previously reported
4,804,022
4,710,453
Equity as adjusted
4,804,022
4,901,130
Analysis of the effect upon equity
Profit and loss reserves
-
190,677
Reconciliation of changes in profit for the previous financial period
2022
£
Adjustments to prior period
Cost of sales
191,873
Administrative expenses
(1,196)
Total adjustments
190,677
Profit as previously reported
406,431
Profit as adjusted
597,108
2023-03-312022-07-01falseCCH SoftwareCCH Accounts Production 2024.100No description of principal activityMr A MarlandMr K McCarthyJ BurnettM BurnettC HeadJ StevensonW HeadM StevensonfalsefalseFor 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.059976012022-07-012023-03-31059976012023-03-31059976012022-06-3005997601core:NetGoodwill2023-03-3105997601core:NetGoodwill2022-06-3005997601core:LandBuildings2023-03-3105997601core:OtherPropertyPlantEquipment2023-03-3105997601core:LandBuildings2022-06-3005997601core:OtherPropertyPlantEquipment2022-06-3005997601core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3105997601core:CurrentFinancialInstrumentscore:WithinOneYear2022-06-3005997601core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3105997601core:Non-currentFinancialInstrumentscore:AfterOneYear2022-06-3005997601core:CurrentFinancialInstruments2023-03-3105997601core:CurrentFinancialInstruments2022-06-3005997601core:ShareCapital2023-03-3105997601core:ShareCapital2022-06-3005997601core:SharePremium2023-03-3105997601core:SharePremium2022-06-3005997601core:RetainedEarningsAccumulatedLosses2023-03-3105997601core:RetainedEarningsAccumulatedLosses2022-06-3005997601bus:Director12022-07-012023-03-3105997601core:Goodwill2022-07-012023-03-3105997601core:LandBuildingscore:OwnedOrFreeholdAssets2022-07-012023-03-3105997601core:PlantMachinery2022-07-012023-03-3105997601core:MotorVehicles2022-07-012023-03-31059976012021-04-012022-06-3005997601core:NetGoodwill2022-06-3005997601core:NetGoodwill2022-07-012023-03-3105997601core:LandBuildings2022-06-3005997601core:OtherPropertyPlantEquipment2022-06-30059976012022-06-3005997601core:LandBuildings2022-07-012023-03-3105997601core:OtherPropertyPlantEquipment2022-07-012023-03-3105997601core:WithinOneYear2023-03-3105997601core:WithinOneYear2022-06-3005997601core:Non-currentFinancialInstruments2023-03-3105997601core:Non-currentFinancialInstruments2022-06-3005997601bus:PrivateLimitedCompanyLtd2022-07-012023-03-3105997601bus:SmallCompaniesRegimeForAccounts2022-07-012023-03-3105997601bus:FRS1022022-07-012023-03-3105997601bus:AuditExempt-NoAccountantsReport2022-07-012023-03-3105997601bus:Director22022-07-012023-03-3105997601bus:Director32022-07-012023-03-3105997601bus:Director42022-07-012023-03-3105997601bus:Director52022-07-012023-03-3105997601bus:Director62022-07-012023-03-3105997601bus:Director72022-07-012023-03-3105997601bus:Director82022-07-012023-03-3105997601bus:FullAccounts2022-07-012023-03-31xbrli:purexbrli:sharesiso4217:GBP