Company registration number 04089418 (England and Wales)
M & L CAPITAL MANAGEMENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
M & L CAPITAL MANAGEMENT LIMITED
COMPANY INFORMATION
Directors
R J Morgan
M Sheppard
Secretary
P Sheppard
Company number
04089418
Registered office
12a Princes Gate Mews
London
England
SW7 2PS
Auditor
Azets Audit Services
Ship Canal House
98 King Street
Manchester
M2 4WU
M & L CAPITAL MANAGEMENT LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of income and retained earnings (including a profit and loss account)
9
Balance sheet
10
Statement of cash flows
11
Notes to the financial statements
12 - 19
M & L CAPITAL MANAGEMENT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 1 -

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


The purpose of the Strategic Report is to provide a business review of M&L Capital Management Limited (“the company”) by:

 

Corporate information

The company is authorised and regulated by the Financial Conduct Authority (FRN: 672181).  The company is registered in England & Wales under Company Number 04089418.

 

Principal activity

The principal activity of the company is to provide fund management services to closed end funds.           

 

Regulatory Developments

The key regulatory development over the last 12 months was the implementation of the FCA’s Consumer Duty rules. The company believes it has taken all necessary steps to comply with these regulations on behalf of the fund that it manages.

The company remains classified as a Collective Portfolio Management Investment firm (“CPMI”) by the FCA for regulatory purposes and a small and non-interconnected FCA investment firm (“SNI”) under MIFIDPRU 1.2.

The company continues to update its business processes in order to ensure it evolves with an ever-advancing industry. The directors are confident that the company meets all its regulatory requirements, including Mifid II and the levels of financial resources required under the AIFMD and MIFIDPRU, including the firm’s own internal capital and risk assessment (“ICARA”) undertaken during the year.

 

Performance and key performance indicators

The company tracks its performance against four key financial, operational and commercial metrics that the Directors judge to be the best indicators of the success of the company.  These key performance indicators are detailed below:

 

 

Operating profit/(loss) for the reporting period was £534,110 (2023: £(353,590)).

 

The transition from an operating loss to an operating profit for the year was due to an increase in turnover.

M & L CAPITAL MANAGEMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 2 -

Funds Management from MLIT increased by 51 per cent from the prior period, due to an increase in the net asset value of MLIT from good market performance.

 

 


Going concern

After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, the company continues to adopt the going concern basis in preparing the financial statements.

 

Principal risks and uncertainties associated with the company

The company is exposed to a range of economic, market, operational, liquidity and general financial risks.

 

Market downturn

The main impact on the company of an acute market downturn would be that assets under management would fall and hence revenues would also fall, which would have a direct impact on the profits of the company. 

 

Operational Risk

Operational risk is defined as the risk of losses resulting from inadequate or failed internal processes, people and systems, or from external events. There is a whole range of operational risks including reputational risks, and the company seeks to mitigate operational risk to acceptable residual levels in accordance with its risk policy, by maintaining its control environment, which is managed through the company's operational risk management framework.  It is understood that a significant but non-catastrophic operational loss could affect its reputation, possibly leading to impairment of its business and organisation.

 

As the company’s activities are predominantly focused on the Stock Market, falling share prices would have an adverse impact on the company's results.

 

A proportion of the company's overall costs are variable rather than fixed.  This gives an essential element of protection in market down-turns.

 

The company's controls include the segregation of duties when authorising and processing transactions, reconciliations, cross-checks and rotation of operational roles. Responsibility for specific controls is allocated to operatives with appropriate seniority and experience.

 

The company has a business continuity and disaster recovery plan, which is regularly reviewed.

M & L CAPITAL MANAGEMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 3 -
Principal risks and uncertainties


China & US/Taiwan War

Any conflict between China and Taiwan (particularly if this involves intervention from the US) could have a material negative impact on sectors that the firm’s AUM is exposed to (such as Semiconductors) as well as a material negative impact on global equity prices. This could have a material resulting negative impact on the firm’s AUM, turnover, operating profit and capital.

Liquidity risk

Liquidity risk is the risk that the business will be unable to meet its financial obligations as they fall due. The company manages liquidity risk by maintaining adequate reserves of cash and by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities.  In respect of trade payables, the amounts due are all normally payable between 0 and 30 days.

 

The regulatory assessment liquidity risk also addresses prepayments and other non-trading book assets such as accrued income. All of the company's cash deposits are repayable on demand.

 

Risk management

The company's risk management processes are designed to be adequate for the purpose of monitoring and reacting to changes in the risk areas to which it is exposed. This takes into account all the activities undertaken by the company and its current financial state of affairs.

 

In assessing the risks within the company, the Directors take an active role in planning strategies in response to changes in the market environment and oversee the company's internal control processes.

 

The company has identified operational risk as its most significant risk. The level of risk in this field is judged to be acceptable because of the conservative approach to risk by the management and staff of the company.

 

Social, ethical and environmental policy

As a fund management company there are no direct social, environmental or community responsibilities. Its ethical policy is focused on ensuring that client funds are properly managed and invested.

 

Investments are made in companies that it considers to be well managed and subject to appropriate corporate governance. A well-managed company is considered to be one that complies with all the relevant legislation and that meets the environmental, social, community and ethical requirements of the country in which it operates. It is important to recognise that local laws and requirements of some markets do not necessarily equate with those of developed countries.

 

The company's ultimate objective, however, is to maximise risk adjusted investment returns for its clients and shareholders. Accordingly, the Investment Managers will seek to favour companies that pursue best practice in governance, but this must not be to the detriment of the return on client funds.

 

The funds the company manages currently have no exposure to the Oil & Gas sector.  Neither of the directors own a combustion engine car.  The full social, ethical and environmental policy of the company can be found on its website at http://www.mlcapman.com/esg/.

 

Future development

The directors constantly review the structure and the investment strategy of the company to effectively implement procedures and policies that will steer the company to future growth and profitability.

On behalf of the board

R Morgan
Director
29 August 2024
M & L CAPITAL MANAGEMENT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 4 -

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

Principal activities

The principal activity of the company continued to be that of the provision of fund management services to closed ended funds.

Results and dividends

The results for the year are set out on page 9.

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

Directors

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

R J Morgan
M Sheppard
P Sheppard
(Resigned 28 August 2024)
Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 company’s auditor 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 company’s auditor is aware of that information.

M & L CAPITAL MANAGEMENT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 5 -
On behalf of the board
M Sheppard
Director
29 August 2024
M & L CAPITAL MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF M & L CAPITAL MANAGEMENT LIMITED
- 6 -
Opinion

We have audited the financial statements of M & L Capital Management Limited (the 'company') for the year ended 31 July 2024 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

M & L CAPITAL MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF M & L CAPITAL MANAGEMENT LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 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.

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.

M & L CAPITAL MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF M & L CAPITAL MANAGEMENT LIMITED
- 8 -

Extent to which the audit was considered 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 and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company’s shareholder 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 shareholder 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 shareholder, for our audit work, for this report, or for the opinions we have formed.

Graham Rigby
Senior Statutory Auditor
For and on behalf of Azets Audit Services
29 August 2024
Chartered Accountants
Statutory Auditor
Ship Canal House
98 King Street
Manchester
M2 4WU
M & L CAPITAL MANAGEMENT LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS (INCLUDING A PROFIT AND LOSS ACCOUNT)
FOR THE YEAR ENDED 31 JULY 2024
- 9 -
2024
2023
Notes
£
£
Turnover
2
1,458,319
531,739
Cost of sales
(198,222)
(209,232)
Gross profit
1,260,097
322,507
Administrative expenses
(745,038)
(702,394)
Income from current asset investments
19,051
26,297
Operating profit/(loss)
3
534,110
(353,590)
Interest receivable and similar income
32,817
13,733
Net movement on investments
334,292
86,308
Profit/(loss) before taxation
901,219
(253,549)
Tax on profit/(loss)
6
(97,110)
118,325
Profit/(loss) for the financial year
804,109
(135,224)
Retained earnings brought forward
1,441,576
1,576,800
Retained earnings carried forward
2,245,685
1,441,576

The profit and loss account has been prepared on the basis that all operations are continuing operations.

M & L CAPITAL MANAGEMENT LIMITED
BALANCE SHEET
AS AT
31 JULY 2024
31 July 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
7
1,647
2,969
Current assets
Debtors
9
283,522
185,076
Investments
1,233,309
600,511
Cash at bank and in hand
1,215,816
996,875
2,732,647
1,782,462
Creditors: amounts falling due within one year
10
(198,903)
(54,149)
Net current assets
2,533,744
1,728,313
Net assets
2,535,391
1,731,282
Capital and reserves
Called up share capital
12
240,173
240,173
Share premium account
49,533
49,533
Profit and loss reserves
2,245,685
1,441,576
Total equity
2,535,391
1,731,282
The financial statements were approved by the board of directors and authorised for issue on 29 August 2024 and are signed on its behalf by:
M Sheppard
Director
Company Registration No. 04089418
M & L CAPITAL MANAGEMENT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
15
659,224
(321,456)
Income taxes refunded
-
0
140,743
Net cash inflow/(outflow) from operating activities
659,224
(180,713)
Investing activities
Purchase of tangible fixed assets
(414)
-
0
Purchase of current asset investments
(298,507)
(275,970)
Proceeds on disposal of investments
-
416,238
Interest received
32,817
13,733
Net cash (used in)/generated from investing activities
(266,104)
154,001
Financing activities
Net movement on amounts owed to/from related parties
(174,179)
(4,932)
Net cash used in financing activities
(174,179)
(4,932)
Net increase/(decrease) in cash and cash equivalents
218,941
(31,644)
Cash and cash equivalents at beginning of year
996,875
1,028,519
Cash and cash equivalents at end of year
1,215,816
996,875
M & L CAPITAL MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 12 -
1
Accounting policies
Company information
M & L  Capital Management Limited is a private company limited by shares incorporated in England and Wales. The registered office is 12a  Princes Gate Mews, London, England, SW7 2PS.
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 histroic cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Fee income which is contingent upon market performance conditions is recognised upon receipt. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

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:

Office equipment
33% 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.

 

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.

1.5
Investments

Investments are held at their current market value and any unrealised gains or losses are recognised in the profit and loss account in the period to which they relate. Realised gains or losses are recognised in the profit and loss as they arise.

For investments that are actively traded in organised financial markets, fair value is determined by reference to market bid prices at the close of business on the balance sheet date.

M & L CAPITAL MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 13 -
1.6
Debtors

Short term debtors are measured at transaction price, less impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest rate method, less any impairment.

1.7
Cash at bank and in hand

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

1.8
Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non‑puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of comprehensive income.

1.9
Creditors

Short term creditors are measured at the transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs and are measured subsequently at amortised cost using the effective interest rate method.

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
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.

M & L CAPITAL MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 14 -
2
Turnover
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
1,458,319
531,739

The turnover and the profit before tax are attributable to the principal activity of the company.

3
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging:
£
£
Differences on foreign exchange
1,230
5,010
Auditors remuneration
12,100
11,550
Depreciation of owned tangible fixed assets
1,562
1,663
Loss on disposal of tangible fixed assets
174
-
4
Employees

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

2024
2023
Number
Number
3
3

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
460,331
419,541
Social security costs
58,219
53,444
518,550
472,985
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
450,581
418,232
M & L CAPITAL MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
5
Directors' remuneration
(Continued)
- 15 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
372,917
350,000
6
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
14,153
-
0
Adjustments in respect of prior periods
-
0
(30,081)
Total current tax
14,153
(30,081)
Deferred tax
Origination and reversal of timing differences
82,957
(88,244)
Total tax charge/(credit)
97,110
(118,325)

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

2024
2023
£
£
Profit/(loss) before taxation
901,219
(253,549)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.01%)
225,305
(53,259)
Tax effect of income not taxable in determining taxable profit
(83,573)
(18,129)
Effect of change in corporation tax rate
-
0
(14,100)
Group relief
(39,859)
6,413
Under/(over) provided in prior years
-
0
(30,081)
Other differences
(4,763)
(5,354)
Capital losses arising
-
0
(3,815)
Taxation charge/(credit) for the year
97,110
(118,325)
M & L CAPITAL MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 16 -
7
Tangible fixed assets
Office equipment
£
Cost
At 1 August 2023
30,996
Additions
414
Disposals
(411)
At 31 July 2024
30,999
Depreciation and impairment
At 1 August 2023
28,027
Depreciation charged in the year
1,562
Eliminated in respect of disposals
(237)
At 31 July 2024
29,352
Carrying amount
At 31 July 2024
1,647
At 31 July 2023
2,969
8
Current asset investments
2024
2023
£
£
Listed investments
1,233,309
600,511
Movements in current asset investments
Investments other than loans
£
Cost or valuation
At 1 August 2023
600,511
Additions
298,507
Valuation changes
334,291
At 31 July 2024
1,233,309
Carrying amount
At 31 July 2024
1,233,309
At 31 July 2023
600,511
M & L CAPITAL MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 17 -
9
Debtors
2024
2023
Amounts falling due within one year:
£
£
Amounts owed by related undertakings
225,926
51,746
Prepayments and accrued income
36,491
29,268
262,417
81,014
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 11)
21,105
104,062
Total debtors
283,522
185,076
10
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
125
920
Corporation tax
14,153
-
0
Other taxation and social security
165,416
7,080
Accruals and deferred income
19,209
46,149
198,903
54,149
11
Deferred taxation

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

Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
(412)
(742)
Capital losses
21,517
21,516
Trading losses
-
83,288
21,105
104,062
M & L CAPITAL MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
11
Deferred taxation
(Continued)
- 18 -
2024
Movements in the year:
£
Asset at 1 August 2023
(104,062)
Charge to profit or loss
82,957
Asset at 31 July 2024
(21,105)
12
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
240,173
240,173
240,173
240,173
13
Related party transactions

M&M Investment Company Ltd ("MMIC") is the sole shareholder of the company. During the reporting period MMIC paid expenses of £136,736 (2023: £275,545) on behalf of the company and charged the company £129,000 (2023: £83,880) for rent and service charges. £8,050 was owed by (2023: £190 was owed to) MMIC at the balance sheet date.

 

Manchester & London Investment Trust Plc ("MLIT") is an investment of MMIC. During the reporting period, the company charged portfolio management fees to MLIT of £1,471,896 (2023: £531,739) and recharged expenses totalling £13,577 (2023: £1,180). At the balance sheet date, the company was owed £217,876 (2023: £51,936) by MLIT.

 

14
Ultimate controlling party

The company is a wholly owned subsidiary of M&M Investment Company Ltd ("MMIC").

 

All MMIC shares are owned directly or indirectly by the Sheppard family. Hence, MMIC is under the control of Mark Sheppard by virtue of his direct and beneficial shareholdings in the company.

M & L CAPITAL MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 19 -
15
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit/(loss) for the year after tax
804,109
(135,224)
Adjustments for:
Taxation charged/(credited)
97,110
(118,325)
Investment income
(32,817)
(13,733)
Loss on disposal of tangible fixed assets
174
-
Depreciation and impairment of tangible fixed assets
1,562
1,663
Net movement on fair value of investments
(334,292)
(86,308)
Movements in working capital:
(Increase)/decrease in debtors
(7,223)
11,024
Increase in creditors
130,601
19,447
Cash generated from/(absorbed by) operations
659,224
(321,456)
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