REGISTERED NUMBER: 12248132 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 March 2024 |
for |
Marc Darcy Group Limited |
REGISTERED NUMBER: 12248132 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 March 2024 |
for |
Marc Darcy Group Limited |
Marc Darcy Group Limited (Registered number: 12248132) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Income and Retained Earnings | 10 |
Consolidated Statement of Financial Position | 11 |
Company Statement of Financial Position | 12 |
Consolidated Statement of Cash Flows | 13 |
Notes to the Consolidated Financial Statements | 14 |
Marc Darcy Group Limited |
Company Information |
for the Year Ended 31 March 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Unit 3, Building 2 |
The Colony |
Altrincham Road |
Wilmslow |
Cheshire |
SK9 4LY |
Marc Darcy Group Limited (Registered number: 12248132) |
Group Strategic Report |
for the Year Ended 31 March 2024 |
The directors present their strategic report of the company and the group for the year ended 31 March 2024. |
REVIEW OF BUSINESS |
We have weathered a difficult trading year mainly due inflation, sharply rising interest rates and the "cost of living" crisis in the UK. As a result, our turnover dropped 28.3% from £18,889k to £13,547k. The biggest decline was in the wholesale sector due to difficult trading conditions for our retail customers. We have been able to increase our gross profit margins by 6.54% from 61.44% to 67.98%. This is largely due to falling prices and a reduction in the use of air freight. Consequently, we have been able to maintain good profitability despite our reduced turnover. Our pre-tax profits were reduced by 29.1% from £8,673k to £6,149k. Despite these difficulties, the balance sheet position has strengthened with net assets up by 27.87% from £10,462k to £13,378k. Cashflow has been strong with an inflow of £3,800k to give a closing cash balance of £8,911k (2023: £5,111k). |
Our outlook for 2024/2025 is a return to growth with increased profitability. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the group and the execution of the group's strategy are subject to any or all of the following risks and uncertainties:- |
General economic conditions |
The general economic environment, high interest rates and levels of consumer confidence have a direct impact on levels of demand in the fashion sector together with the effect of inflation and the UK's "Cost of Living" crisis. The uncertainty over the general election and incoming government also presents economic challenges. |
Mitigation - management constantly monitor the general economic conditions to ensure that an appropriate course of action can be undertaken should the need arise. |
Product design |
The success of the group depends on the design and supply of fashion garments that our customers want to buy, at the appropriate price point and stocked in the right quantities. In the short term a failure to manage this risk may result in surplus stocks that may have to be sold at discounted prices. Over the longer term, a failure to meet the design, quality and value expectations of our customers may affect the group's reputation. |
Mitigation - the directors continually review the design and sales performance of the group's products and those of our competitors. Product risk is mitigated to some extent by the diversity of the ranges available. |
Key suppliers and supply chain maintenance |
Reliance on our suppliers to deliver products on time at the expected quality level is essential to our business. Failure to manage our supply chain may result in an inability to service customer demand, again, potentially adversely affecting the group's reputation. |
Mitigation - stock availability is reviewed on an ongoing basis to ensure that our service standards can be met. Where necessary, air freight is used to ensure that stock is available if required quickly. |
Marc Darcy Group Limited (Registered number: 12248132) |
Group Strategic Report |
for the Year Ended 31 March 2024 |
KEY PERFORMANCE INDICATORS |
2024 | 2023 |
Turnover | 13,547,306 | 18,889,043 |
Gross profit percentage | 67.98% | 61.44% |
Profit before tax | 6,116,665 | 8,672,950 |
Profit before tax as a percentage of turnover | 45.15% | 45.92% |
Shareholders' Funds | 13,337,678 | 10,462,189 |
ON BEHALF OF THE BOARD: |
Marc Darcy Group Limited (Registered number: 12248132) |
Report of the Directors |
for the Year Ended 31 March 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2024. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 March 2024 will be £1,600,000 (2023: £2,429,410). |
The directors recommend that no final dividends be paid. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
FINANCIAL INSTRUMENTS |
The group uses various financial instruments which include cash and various items, such as trade debtors and trade creditors that arise directly from operations. The main purpose of these financial instruments is to raise finance for the group's operations. Their existence exposes the group to a number of financial risks. |
The significant risks arising from the group's financial instruments are credit risk, liquidity risk and foreign exchange risk. |
Credit risk |
The group's principal financial assets are cash at bank and trade debtors. The credit risk associated with cash at bank is limited as the bank has a high credit rating assigned by international credit-rating agencies. The principal credit risk therefore arises from its trade debtors. |
ln order to manage credit risk, the directors set credit limits for wholesale customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the directors on a regular basis in conjunction with debt ageing and collection history. |
Liquidity risk |
The group seeks to manage risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. |
The group's policy throughout the year has been to achieve this objective through the day to day involvement of management in business decisions and monitoring online bank balances rather than through setting maximum or minimum liquidity ratios. |
Foreign exchange risk |
The group purchases stocks from abroad and this leads to foreign exchange risk exposure. In order to mitigate this risk the directors purchase goods denominated in GBP as much as possible which is in the majority of cases. |
CHARITABLE DONATIONS AND EXPENDITURE |
During the year the group made charitable donations amounting to £20,812 (2023: £41,722). |
DISCLOSURE IN THE STRATEGIC REPORT |
In accordance with section 414c(11) of the Companies Act 2006 Regulations 2013, the directors have included a separate strategic report. This includes information that would have been included in the business review and the principal risks and uncertainties. |
Marc Darcy Group Limited (Registered number: 12248132) |
Report of the Directors |
for the Year Ended 31 March 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 company and the group 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; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Ascendis Audit Limited, will be proposed for re-appointment in accordance with Section 485 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Marc Darcy Group Limited |
Qualified opinion |
|
Basis for qualified opinion |
The group was not subject to an audit in the year ended 31 March 2022 and thus we did not observe the counting of physical stock at the end of 2022 nor did we receive stock valuations. We were unable to satisfy ourselves by alternative means concerning the inventory quantities and valuations held at 31 March 2022, which are included in the balance sheet at £2,505,262, by using other audit procedures. |
Consequently we were unable to determine whether there was any consequential effect on the cost of sales for the year ended 31 March 2023. Our opinion on the current year's financial statements is also modified because of the possible effect of this matter on the comparability of the current period's figures and the corresponding figures. In addition, where any adjustments to the inventory balance were to be required, the Group Strategic Report would also need to be amended. |
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 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 qualified 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 the 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. |
Report of the Independent Auditors to the Members of |
Marc Darcy Group Limited |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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. |
As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities and valuations of £2,505,262 held at 31 March 2022. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason. |
Qualified opinions on other matters prescribed by the Companies Act 2006 |
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit: |
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the group and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- returns adequate for our audit have not been received from branches not visited by us; or |
- the financial statements are not in agreement with the accounting records and returns; or |
- certain disclosures of directors' remuneration specified by law are not made. |
Arising solely from the limitation on the scope of our work relating to inventory, referred to above: |
- we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and |
- we were unable to determine whether adequate accounting records have been kept. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Marc Darcy Group Limited |
Auditors' 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 a Report of the Auditors 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. |
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. |
Based on our understanding of the group and sector, we identified that the principal risks of non-compliance with laws and regulations related to, but was not limited to, the Companies Act 2006 and UK tax legislation regulation issued by HMRC and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. |
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgements and in fraudulent revenue recognition. |
Our procedures to respond to risks identified included the following: |
• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
• enquiring of management about actual and potential litigation and claims; |
• performing sample testing of all sales categories, stock costing and cut off testing; |
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and |
• addressing the risk of fraud through management override of controls: testing the appropriateness of journal entries; assessing whether the accounting estimates, judgements and decisions made by management 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. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
There are inherent limitations in our audit procedures described above. The more removed the laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to inquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Marc Darcy Group Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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. |
for and on behalf of |
Unit 3, Building 2 |
The Colony |
Altrincham Road |
Wilmslow |
Cheshire |
SK9 4LY |
Marc Darcy Group Limited (Registered number: 12248132) |
Consolidated |
Statement of Income and |
Retained Earnings |
for the Year Ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 4 | 13,547,306 | 18,889,043 |
Cost of sales | (4,337,162 | ) | (7,284,257 | ) |
GROSS PROFIT | 9,210,144 | 11,604,786 |
Administrative expenses | (3,175,104 | ) | (2,961,373 | ) |
6,035,040 | 8,643,413 |
Other operating income | 5 | 16,250 | 13,750 |
OPERATING PROFIT | 7 | 6,051,290 | 8,657,163 |
Interest receivable and similar income | 8 | 98,091 | 16,533 |
6,149,381 | 8,673,696 |
Interest payable and similar expenses | 9 | (32,716 | ) | (746 | ) |
PROFIT BEFORE TAXATION | 6,116,665 | 8,672,950 |
Tax on profit | 10 | (1,601,176 | ) | (1,740,868 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year | 4,462,109 | (40,563 | ) |
Dividends | 12 | (1,600,000 | ) | (2,429,410 | ) |
RETAINED EARNINGS FOR THE GROUP AT END OF YEAR | 7,377,598 | 4,462,109 |
Profit attributable to: |
Owners of the parent | 4,515,489 | 6,932,082 |
Marc Darcy Group Limited (Registered number: 12248132) |
Consolidated Statement of Financial Position |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 13 | 1,329,611 | 1,567,751 |
Tangible assets | 14 | 1,624,346 | 1,659,536 |
Investments | 15 | - | - |
2,953,957 | 3,227,287 |
CURRENT ASSETS |
Stocks | 16 | 3,121,865 | 4,029,782 |
Debtors | 17 | 626,613 | 839,503 |
Cash at bank and in hand | 8,910,825 | 5,111,037 |
12,659,303 | 9,980,322 |
CREDITORS |
Amounts falling due within one year | 18 | (2,185,399 | ) | (2,686,265 | ) |
NET CURRENT ASSETS | 10,473,904 | 7,294,057 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 13,427,861 | 10,521,344 |
PROVISIONS FOR LIABILITIES | 20 | (50,183 | ) | (59,155 | ) |
NET ASSETS | 13,377,678 | 10,462,189 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 100 | 100 |
Share premium | 22 | 5,999,980 | 5,999,980 |
Retained earnings | 22 | 7,377,598 | 4,462,109 |
13,377,678 | 10,462,189 |
The financial statements were approved by the Board of Directors and authorised for issue on 30 August 2024 and were signed on its behalf by: |
Mr Parmajit Johal - Director |
Marc Darcy Group Limited (Registered number: 12248132) |
Company Statement of Financial Position |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 13 |
Tangible assets | 14 |
Investments | 15 |
CURRENT ASSETS |
Debtors | 17 |
CREDITORS |
Amounts falling due within one year | 18 | ( | ) | ( | ) |
NET CURRENT LIABILITIES | ( | ) | ( | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 19 | ( | ) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Share premium | 22 |
Retained earnings | 22 |
Company's profit for the financial year | 1,600,000 | 5,940,412 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Marc Darcy Group Limited (Registered number: 12248132) |
Consolidated Statement of Cash Flows |
for the Year Ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 27 | 7,402,295 | 6,952,790 |
Interest paid | (32,716 | ) | (746 | ) |
Tax paid | (2,169,799 | ) | (1,150,977 | ) |
Net cash from operating activities | 5,199,780 | 5,801,067 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (12,167 | ) | (19,673 | ) |
Interest received | 98,091 | 16,533 |
Net cash from investing activities | 85,924 | (3,140 | ) |
Cash flows from financing activities |
Loan repayments in year | - | (1,232,603 | ) |
Amount introduced by directors | 114,084 | - |
Amount withdrawn by directors | - | (1,581,170 | ) |
Equity dividends paid | (1,600,000 | ) | (2,429,410 | ) |
Net cash from financing activities | (1,485,916 | ) | (5,243,183 | ) |
Increase in cash and cash equivalents | 3,799,788 | 554,744 |
Cash and cash equivalents at beginning of year | 28 | 5,111,037 | 4,556,293 |
Cash and cash equivalents at end of year | 28 | 8,910,825 | 5,111,037 |
Marc Darcy Group Limited (Registered number: 12248132) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
1. | STATUTORY INFORMATION |
The company is a private company limited by shares, registered in England and Wales (registered number - 12248132). The address of the registered office, and principal place of business, is Marc Darcy House, 271 - 291 Bury New Road, Salford, Manchester, M7 2YN. |
The principal activity of the company in the year under review was that of a holding company. |
The principal activitity of the group in the year under review was that of a clothing and footwear wholesaler and retailer. |
The financial statements are prepared in pound sterling (£) which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
BASIS OF PREPARING THE FINANCIAL STATEMENTS |
BASIS OF CONSOLIDATION |
The consolidated financial statements present the results of the company and its subsidiary ("the group") as if they form a single entity, drawn up to 31 March. |
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities |
The group is consolidated using the acquisition method. |
Intercompany transactions and balances between the company and its subsidiaries are eliminated in full on consolidation. |
Marc Darcy Group Limited (Registered number: 12248132) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
3. | ACCOUNTING POLICIES - continued |
SIGNIFICANT JUDGEMENTS AND ESTIMATES |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Management do not consider that there are any judgements (apart from those involving estimations) that have been made in the process of applying the entity's accounting policies which have a significant effect on the amounts recognised in the financial statements. |
Key sources of estimation uncertainty |
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are as follows: |
Stock valuation |
Stocks are valued using standard costings per unit together with standard costings for freight charges and for duty charges. |
Stock provisions |
Identification of slow moving stock to ensure that it is recorded at clearance value. |
Useful economic life of goodwill |
Goodwill on consolidation is being amortised over a period of 10 years being the maximum term allowable under FRS102. |
TURNOVER |
Turnover from the sale of goods is recognised in the Statement of Income and Retained Earnings, net of discounts and Value Added Tax, when the risks and rewards of ownership have transferred to the buyer. In general this occurs on dispatch of the goods or on physical collection of the goods by the customer. |
Rental income is recognised on a receivable basis. |
GOODWILL |
Goodwill arising on consolidation is being amortised over its useful economic life of 10 years. |
INTANGIBLE ASSETS |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Marc Darcy Group Limited (Registered number: 12248132) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
3. | ACCOUNTING POLICIES - continued |
TANGIBLE FIXED ASSETS |
Tangible fixed assets are stated at cost less accumulated depreciation. |
Depreciation is provided at the following annual rates in order to write off the cost less residual value of each asset over its estimated useful life as follows:- |
Freehold property | - none provided |
Plant and machinery | - 15% per annum on a reducing balance basis |
Fixtures and fittings | - 15% per annum on a reducing balance basis |
Motor vehicles | - straight line over 7 years |
Computer equipment | - 25% per annum on a straight line basis |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Income and Retained Earnings. |
No depreciation has been provided on the freehold property as the directors consider that the residual value of the property approximates or exceeds the cost carried in the financial statements and that any depreciation charge would not be material. |
STOCKS |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Stocks include an element of certain direct overheads such as freight and duty. |
FINANCIAL INSTRUMENTS |
The group only has basic financial instruments which are recognised at amortised cost. |
TAXATION |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Income and Retained Earnings, except to the extent that it relates to items recognised directly in Equity. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
DEFERRED TAX |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
FOREIGN CURRENCIES |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Marc Darcy Group Limited (Registered number: 12248132) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
3. | ACCOUNTING POLICIES - continued |
PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to the Consolidated Statement of Income and Retained Earnings in the period to which they relate. |
DIVIDENDS |
Equity dividends are recognised when they become legally payable. Interim dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
Wholesale sales | 9,409,147 | 14,426,959 |
Online sales | 4,133,241 | 4,458,840 |
Carriage | 4,918 | 3,244 |
13,547,306 | 18,889,043 |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 11,806,948 | 16,591,227 |
Europe | 1,740,358 | 2,297,816 |
13,547,306 | 18,889,043 |
5. | OTHER OPERATING INCOME |
2024 | 2023 |
£ | £ |
Rents received | 16,250 | 13,750 |
6. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 1,018,724 | 973,525 |
Social security costs | 88,250 | 81,022 |
Other pension costs | 15,349 | 17,826 |
1,122,323 | 1,072,373 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Staff | 34 | 40 |
Directors | 6 | 6 |
Marc Darcy Group Limited (Registered number: 12248132) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
6. | EMPLOYEES AND DIRECTORS - continued |
2024 | 2023 |
£ | £ |
Directors' remuneration | 216,107 | 75,774 |
Directors' pension contributions to money purchase schemes | 2,377 | 677 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 4 | 4 |
Information regarding the highest paid director for the year ended 31 March 2024 is as follows: |
2024 |
£ |
Emoluments etc | 53,774 |
7. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Depreciation - owned assets | 47,357 | 47,328 |
Goodwill amortisation | 238,140 | 238,140 |
Auditors' remuneration | 9,500 | 9,500 |
Auditors' remuneration for non audit work | 1,000 | 1,000 |
8. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2024 | 2023 |
£ | £ |
Other interest received | 98,091 | 16,533 |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank charges | - | 15 |
Other interest | - | 226 |
Interest on late tax | 32,716 | 505 |
32,716 | 746 |
Marc Darcy Group Limited (Registered number: 12248132) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
10. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 1,610,148 | 1,697,591 |
Under/(over) provision in |
previous years | - | (15,878 | ) |
Total current tax | 1,610,148 | 1,681,713 |
Deferred tax | (8,972 | ) | 59,155 |
Tax on profit | 1,601,176 | 1,740,868 |
UK corporation tax has been charged at 25 % (2023 - 19 %). |
RECONCILIATION OF TOTAL TAX CHARGE INCLUDED IN PROFIT AND LOSS |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 6,116,665 | 8,672,950 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) | 1,529,166 | 1,647,861 |
Effects of: |
Expenses not deductible for tax purposes | 12,036 | 351 |
Adjustments to tax charge in respect of previous periods | - | (15,878 | ) |
Superdeductions | - | (6,236 | ) |
Deferred tax in respect of prior periods | - | 69,523 |
Goodwill amortisation | 59,535 | 45,247 |
Other | 439 | - |
Total tax charge | 1,601,176 | 1,740,868 |
A rise in the UK corporation tax rate from 19% to 25% was announced in the Chancellor's Budget on 3 March 2021 and this tax rate will apply from 1 April 2023. Deferred tax has therefore been calculated using a rate of 25%. |
11. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
Marc Darcy Group Limited (Registered number: 12248132) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
12. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Interim - paid | 1,600,000 | 2,429,410 |
13. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 | 2,381,395 |
AMORTISATION |
At 1 April 2023 | 813,644 |
Amortisation for year | 238,140 |
At 31 March 2024 | 1,051,784 |
NET BOOK VALUE |
At 31 March 2024 | 1,329,611 |
At 31 March 2023 | 1,567,751 |
14. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 April 2023 | 1,421,162 | 51,936 | 147,143 |
Additions | - | - | 1,974 |
At 31 March 2024 | 1,421,162 | 51,936 | 149,117 |
DEPRECIATION |
At 1 April 2023 | - | 34,360 | 101,000 |
Charge for year | - | 2,636 | 7,106 |
At 31 March 2024 | - | 36,996 | 108,106 |
NET BOOK VALUE |
At 31 March 2024 | 1,421,162 | 14,940 | 41,011 |
At 31 March 2023 | 1,421,162 | 17,576 | 46,143 |
Marc Darcy Group Limited (Registered number: 12248132) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
14. | TANGIBLE FIXED ASSETS - continued |
Group |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 April 2023 | 189,075 | 89,005 | 1,898,321 |
Additions | - | 10,193 | 12,167 |
At 31 March 2024 | 189,075 | 99,198 | 1,910,488 |
DEPRECIATION |
At 1 April 2023 | 40,516 | 62,909 | 238,785 |
Charge for year | 27,011 | 10,604 | 47,357 |
At 31 March 2024 | 67,527 | 73,513 | 286,142 |
NET BOOK VALUE |
At 31 March 2024 | 121,548 | 25,685 | 1,624,346 |
At 31 March 2023 | 148,559 | 26,096 | 1,659,536 |
15. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
SUBSIDIARIES |
Registered office: Marc Darcy House, 271 - 291 Bury New Road, Salford, Manchester, M7 2YN. |
Nature of business: |
% |
Class of shares: | holding |
Marc Darcy Group Limited (Registered number: 12248132) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
15. | FIXED ASSET INVESTMENTS - continued |
Registered office: Marc Darcy House, 271 - 291 Bury New Road, Salford, Manchester, M7 2YN. |
Nature of business: |
% |
Class of shares: | holding |
The 100% interest in Marc Darcy International Limited is an indirect interest arising via its 100% interest in its immediate subsidiary Marc Darcy Holdings Limited. |
16. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Goods for resale | 3,121,865 | 4,029,782 |
There was no stock provision at either 31 March 2024 or 31 March 2023. |
17. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 432,429 | 611,862 |
Other debtors | 166,854 | 130,030 |
Directors' current accounts | - | 47,574 | - | 124,402 |
Prepayments | 27,330 | 50,037 |
626,613 | 839,503 |
There was no bad debt provision at either 31 March 2024 or 31 March 2023. |
18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade creditors | 53,734 | 173,185 |
Amounts owed to group undertakings | - | - |
Corporation tax | 1,137,940 | 1,697,591 |
Social security and other taxes | 49,649 | 26,934 |
VAT | 339,077 | 472,488 | - | - |
Other creditors | 255,361 | 5,978 |
Directors' current accounts | 339,139 | 272,629 | - | 264,207 |
Accruals and deferred income | 10,499 | 37,460 |
2,185,399 | 2,686,265 |
Marc Darcy Group Limited (Registered number: 12248132) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
19. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Company |
2024 | 2023 |
£ | £ |
Amounts owed to group undertakings | - | 5,304,843 |
20. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax | 50,183 | 59,155 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2023 | 59,155 |
Credit to Income Statement during year | (8,972 | ) |
Balance at 31 March 2024 | 50,183 |
Deferred taxation comprises: |
2024 | 2023 |
£ | £ |
Accelerated capital allowances | 50,797 | 59,594 |
Other short term timing differences | (614 | ) | (439 | ) |
50,183 | 59,155 |
21. | CALLED UP SHARE CAPITAL |
2023 | 2022 |
£ | £ |
Allotted, called up and fully paid |
Ordinary A Shares of £1 each | 10 | 10 |
Ordinary B Shares of £1 each | 10 | 10 |
Ordinary C Shares of £1each | 40 | 40 |
Ordinary D Shares of £1each | 40 | 40 |
100 | 100 |
All classes of shares are non-redeemable and have (pro rata to the number of shares held by the shareholder) : equal voting rights; equal rights to receive dividends; and equal rights in respect of capital on a sale or a distribution, including on winding up. |
Marc Darcy Group Limited (Registered number: 12248132) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
22. | RESERVES |
Retained earnings - this reserve includes all current and prior year retained profits and losses net of distributions to shareholders. |
Share premium - this reserve records the excess of the consideration made over the nominal value of shares issued. |
23. | PENSION COMMITMENTS |
The amount recognised in the Consolidated Statement of Income and Retained Earnings as an expense in relation to defined contribution plans amounted to £15,349 (2023: £17,826). At the reporting date the outstanding contributions payable to the scheme amounted to £2,454 (2023: £1,754). |
24. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 March 2024 and 31 March 2023: |
2024 | 2023 |
£ | £ |
Mr Charanjit Johal |
Balance outstanding at start of year | - | 3,414 |
Amounts repaid | - | (3,414 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | - | - |
Mr Parmajit Johal |
Balance outstanding at start of year | 47,574 | 8,565 |
Amounts advanced | - | 47,574 |
Amounts repaid | (47,574 | ) | (8,565 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | - | 47,574 |
The advances were interest free, repayable on demand and the company held no security in their respect. |
25. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
At the reporting date the group owed the directors £339,139 (2023: £272,629). |
At the reporting date the group owed other related parties £233,500 (2023: £nil). |
26. | ULTIMATE CONTROLLING PARTY |
There is no single ultimate controlling party. |
Marc Darcy Group Limited (Registered number: 12248132) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
27. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 6,116,665 | 8,672,950 |
Depreciation charges | 285,497 | 285,468 |
Finance costs | 32,716 | 746 |
Finance income | (98,091 | ) | (16,533 | ) |
6,336,787 | 8,942,631 |
Decrease/(increase) in stocks | 907,917 | (1,524,520 | ) |
Decrease in trade and other debtors | 165,316 | 427,240 |
Decrease in trade and other creditors | (7,725 | ) | (892,561 | ) |
Cash generated from operations | 7,402,295 | 6,952,790 |
28. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 March 2024 |
31.3.24 | 1.4.23 |
£ | £ |
Cash and cash equivalents | 8,910,825 | 5,111,037 |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 5,111,037 | 4,556,293 |
29. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.4.23 | Cash flow | At 31.3.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 5,111,037 | 3,799,788 | 8,910,825 |
5,111,037 | 3,799,788 | 8,910,825 |
Total | 5,111,037 | 3,799,788 | 8,910,825 |