Company registration number 06952856 (England and Wales)
MCMURDO LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
MCMURDO LIMITED
CONTENTS
Page
Statement of financial position
1
Statement of changes in equity
2
Notes to the financial statements
3 - 11
MCMURDO LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
5
8,290
20,561
Current assets
Inventories
6
180,594
160,250
Trade and other receivables
7
981,743
618,146
Cash and cash equivalents
38,137
52,214
1,200,474
830,610
Current liabilities
8
(91,705)
(138,086)
Net current assets
1,108,769
692,524
Total assets less current liabilities
1,117,059
713,085
Provisions for liabilities
Provisions
9
88,981
171,070
(88,981)
(171,070)
Net assets
1,028,078
542,015
Equity
Called up share capital
10
16,774,001
16,774,001
Retained earnings
(15,745,923)
(16,231,986)
Total equity
1,028,078
542,015

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

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

The financial statements were approved by the board of directors and authorised for issue on 2 September 2024 and are signed on its behalf by:
Mr P B M Smulders
Director
Company registration number 06952856 (England and Wales)
MCMURDO LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2022
16,774,001
(16,607,114)
166,887
Year ended 31 December 2022:
Profit and total comprehensive income
-
375,128
375,128
Balance at 31 December 2022
16,774,001
(16,231,986)
542,015
Year ended 31 December 2023:
Profit and total comprehensive income
-
486,063
486,063
Balance at 31 December 2023
16,774,001
(15,745,923)
1,028,078
MCMURDO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information

McMurdo Limited is a private company limited by shares incorporated in England and Wales. The registered office is Holbrook Court, E1 Cumberland Business Centre, Northumberland Road, Southsea, Hampshire, PO5 1DS.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention. 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 Sea of Solutions BV. These consolidated financial statements are available from its registered office, Molenleede 42, 2991 WB Barendrecht, The Netherlands.

1.2
Going concern

At the balance sheet date the company made a trueprofit for the year of £486,063 (2022: £375,128) and had a net asset position of £1,028,078 (2022: £542,015).


As per 1 April 2021 the company, together with the sister company, Netwave Systems BV, was acquired by the holding company. Due to the organisational set-up, where the company will provide operational assistance to the sister company in the Netherlands, while the company would transact business for the British Isles, the company’s operational costs do outweigh the commercial performance of the local activities. Since the acquisition of the company, the holding company has implemented intercompany transactions in place to reward the company for the support provided and the use of IP and brands.

 

The company continues to enjoy the support of its parent company (Seas of Solutions BV) in the form of a letter of support. The directors therefore believe that the company has adequate resources to meet its liabilities for a period of at least 12 months from the date of approval of the financial statements and continues to adopt the going concern basis of accounting in preparing financial statements.

1.3
Revenue

Revenue 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.

MCMURDO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Intangible fixed assets - goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business.

 

Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed five years.

1.5
Intangible fixed assets other than goodwill

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and accumulated impairment losses.

Amortisation 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:

Development costs
Amortised evenly over the estimated useful life of three years.
1.6
Property, plant and equipment

Property, plant and equipment 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:

Plant, machinery and tooling
Straight line over 2-5 years
Fixtures and fittings
Straight line over 5 years
Computers
Straight line over 3 years

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.

1.7
Inventories

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

 

Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

MCMURDO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
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 statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include trade and other receivables 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 trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade payables 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 payables 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. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.

MCMURDO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 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.

 

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 using the tax rates and laws that have been enacted or substantively enacted by the reporting end date that are expected to apply in the period when the liability is settled or the asset is realised.

1.12
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.13
Retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit and loss in the period to which they relate.

1.14
Leases

Rentals payable under operating leases, are charged to profit or loss on a straight line basis over the term of the relevant lease.

1.15
Foreign exchange

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.

1.16

Warranties

Provisions for warranties are raised in respect of certain products and are reviewed annually in line with historical actual warranty costs incurred, the unexpired years of warranties given and the relative maturity of the product lines in question. Warranty costs incurred are charged against these provisions.

 

MCMURDO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 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.

Critical judgements

The following are the critical judgements (apart from those involving estimates) that the directors have made in the process of applying the Company's accounting policies and that have the most significant effect on amounts recognised in the financial statements.

Warranty provision

The company routinely gives warranties to customers in respect of certain products for 5 years from delivery.

 

Management estimates the provision based on historic claims received over last few years which requires a degree of estimation.

 

Management has established controls in process to monitor the frequency of claims, the expected lifetime of the products and the history of customers in estimating the claims.

Impairment of intangible assets

Intangible assets are revalued on a periodic basis and tested annually for indicators of impairment. Judgements are required to make an assessment as to whether there is an indication of impairment. The impairment tests include examination of capital expenditure incurred in the financial year to ascertain whether it has resulted in an increase in value or an impairment of an asset. If the actual results differ from the assumptions, the value of intangible assets will be over or understated. This would be adjusted when the assets were next revalued.

Providing for doubtful debts

The Financial Statements contains estimated figures that are based on assumptions made by the Company about the future or that are otherwise uncertain. These include useful lives, valuations and bad debt provisions. Estimates are made considering historical experience, current trends and other relevant factors. However, because balances cannot be determined with certainty actual results could be different from the assumptions and estimates.

Useful economic lives of property, plant and equipment

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

MCMURDO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
3
Employees

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

2023
2022
Number
Number
16
18
4
Intangible fixed assets
Goodwill
Development costs
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
4,364,824
3,446,735
7,811,559
Amortisation and impairment
At 1 January 2023 and 31 December 2023
4,364,824
3,446,735
7,811,559
Carrying amount
At 31 December 2023
-
0
-
0
-
0
At 31 December 2022
-
0
-
0
-
0
5
Property, plant and equipment
Plant, machinery and tooling
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2023 and 31 December 2023
530,222
12,554
71,819
614,595
Depreciation and impairment
At 1 January 2023
517,267
5,543
71,224
594,034
Depreciation charged in the year
9,165
2,511
595
12,271
At 31 December 2023
526,432
8,054
71,819
606,305
Carrying amount
At 31 December 2023
3,790
4,500
-
0
8,290
At 31 December 2022
12,955
7,011
595
20,561
MCMURDO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
6
Inventories
2023
2022
£
£
Raw materials and consumables
72,802
32,204
Finished goods and goods for resale
107,792
128,046
180,594
160,250
7
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Trade receivables
29,445
47,068
Amounts owed by group undertakings
925,759
482,450
Other receivables
-
0
63,387
Prepayments and accrued income
26,539
25,241
981,743
618,146
8
Current liabilities
2023
2022
£
£
Trade payables
20,740
44,839
Taxation and social security
14,228
12,054
Accruals and deferred income
56,737
81,193
91,705
138,086
9
Provisions for liabilities
2023
2022
£
£
Guarantees given to customers
88,981
171,070
Movements on provisions:
Guarantees given to customers
£
At 1 January 2023
171,070
Reversal of provision
(82,089)
At 31 December 2023
88,981
MCMURDO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
10
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
16,774,001
16,774,001
16,774,001
16,774,001
11
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditors report was qualified and the auditor reported as follows:

 

Qualified opinion

We have audited the financial statements of McMurdo Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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, except for the effects of the matters described in the Basis for Qualified Opinion paragraph, the financial statements:

 

Basis for qualified opinion

The company was acquired by the current owners on 1 April 2021 and they do not have access to the detailed record of financial transactions for the period prior to that date. As a consequence, we were unable to confirm or verify by alternative means the accuracy, completeness and validity of the transactions before 1 April 2021 and were unable to determine whether any adjustments might therefore have been found necessary in respect of the remaining warranty guarantees given to customers and still valid at 31 December 2023.

 

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.

 

Senior Statutory Auditor:
Richard Hutchinson
Statutory Auditor:
Azets Audit Services
Date of audit report:
10 September 2024
MCMURDO LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
12
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
15,000
18,341
15,000
18,341
13
Related party transactions

The company has taken advantage of the exemption conferred by section 33.1A of FRS102 not to disclose transactions with other wholly owned subsidiaries within the group as consolidated accounts, including the subsidiary undertakings, are publictruely available.

14
Ultimate controlling party

The ultimate controlling party is Paul Smulders by virtue of his majority shareholding.

 

The financial statements of the company are consolidated in the financial statements of Sea of Solutions BV. These consolidated financial statements are available from its registered office, Molenleede 42, 2991 WB Barendrecht, The Netherlands.

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