REGISTERED NUMBER: 00439454 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Audited Consolidated Financial Statements for the Year Ended 31 December 2023 |
for |
Cecil Macdonald & Co Limited |
REGISTERED NUMBER: 00439454 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Audited Consolidated Financial Statements for the Year Ended 31 December 2023 |
for |
Cecil Macdonald & Co Limited |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Profit and loss | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 19 |
Cecil Macdonald & Co Limited |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Bourne House |
Queen Street |
Gomshall |
Surrey |
GU5 9LY |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
The Group is one of the largest independent specialist distributors of beers, wines, spirits, consumables, fragrance and cosmetics in the United Kingdom supplying the travel retail sector which includes aircraft ground handling companies, airlines, train and ferry operators. |
REVIEW OF THE BUSINESS |
Cecil Macdonald & Co is the largest specialist distributor of beers, wines, spirits and consumables to the UK Travel Retail sector which includes Airlines, Airline Caterers, Ferries, Cruise Ships and Trains. |
The year ending 31st December 2023 truly saw the UK Travel sector operating without any residual effects of the Covid pandemic. Supply chain delays and shortages improved massively and no longer hampered Stock availability and the industry was in full swing. |
Our largest customers carried near record passenger numbers and in turn we enjoyed the benefits with record turnover and profitability. |
Contracts with existing key customers have been successfully renewed and new supply contracts agreed, specifically in the consumables category. |
PRINCIPAL RISKS AND UNCERTAINTIES |
With inbound supply chain and UK inflation seemingly back under control our principal risks are exchange rate fluctuations for EU sourced products and competitor activity. |
Our customer relationships are very strong and we work hard to maintain these relationships, but we are ever mindful of the presence competitor companies. We believe the service we offer our customers is gold standard and we continue to invest in both human resources and equipment to maintain that standard. |
FUTURE PLANS |
Continued growth in 2023 has put pressure on the physical capacity of our existing warehouses. We have identified a local site to relocate one warehouse and our head office and plans are underway to complete a move to this new warehouse and office building in 2024. This will give us close to 25% additional warehouse capacity and afford a modern and efficient working environment for our office based personnel. |
We continue to predict strong positive growth as we move into 2024. |
HEALTH, SAFETY AND COMPLIANCE |
The Directors encourage a positive H&S culture within all areas of the business and our HMRC and CAA compliance/due diligence responsibilities are taken very seriously. We have CAA known supplier status with all our major customers. |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
FINANCIAL PERFORMANCE |
Significant growth was achieved in 2023 with turnover of £65 million compared to £46 million the prior year. This was accomplished through growth in the travel industry, expansion of our customer base and substantial increases in the range of products supplied to our customers. |
The profit before tax for the financial year amounted to £2,559,044 (2022: £1,973,091) with the gross profit margin dipping from 12.8% to 11.3 % reflecting the inflationary cost pressures in the industry. |
The directors use a range of performance indicators across the business as follows: |
2023 | 2022 |
Gross margin | 11.3% | 12.8% |
Liquidity | 1.76 | 1.93 |
Debtor days | 44 days | 26 days |
BY ORDER OF THE BOARD: |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITIES |
The principal activities of the group in the year under review were those of warehousing and distribution of beers, wines, spirits, consumables, fragrance and cosmetics to the travel retail sector includung aircraft ground handling companies, airlines, train and ferry operators. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Report of the Directors |
for the Year Ended 31 December 2023 |
AUDITORS |
The auditors, Brewers Chartered Accountants, are deemed to be re-appointed under section 487(2) of the Companies Act 2006. |
BY ORDER OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Cecil Macdonald & Co Limited |
Opinion |
We have audited the financial statements of Cecil Macdonald & Co Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Profit and loss, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of 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: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 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. |
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. 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 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. |
Report of the Independent Auditors to the Members of |
Cecil Macdonald & Co Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company 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: |
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- the parent company's financial statements are not in agreement with the accounting records or returns; or |
- certain disclosures of directors' remuneration specified by law are not made: or |
- we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 |
Cecil Macdonald & Co 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. |
The following laws and regulations were identified as being of significance to the entity: |
o Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation. |
o It is considered that there are no laws and regulations for which non-compliance may be fundamental to the operating aspects of the business. |
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud. |
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). |
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 |
Cecil Macdonald & Co 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 |
Bourne House |
Queen Street |
Gomshall |
Surrey |
GU5 9LY |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Consolidated Profit and loss |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
as restated |
Notes | £ | £ | £ | £ |
TURNOVER | 4 | 65,556,771 | 45,894,648 |
Cost of sales | 58,093,199 | 40,003,270 |
GROSS PROFIT | 7,463,572 | 5,891,378 |
Distribution costs | 487,297 | 409,458 |
Administrative expenses | 4,641,231 | 3,694,413 |
5,128,528 | 4,103,871 |
2,335,044 | 1,787,507 |
Other operating income | 5 | 98,326 | 156,234 |
OPERATING PROFIT | 8 | 2,433,370 | 1,943,741 |
Interest receivable and similar income | 128,052 | 31,728 |
2,561,422 | 1,975,469 |
Interest payable and similar expenses | 10 | 2,378 | 2,378 |
PROFIT BEFORE TAXATION | 2,559,044 | 1,973,091 |
Tax on profit | 11 | 709,213 | 274,646 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,849,831 | 1,698,445 |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Consolidated Other Comprehensive Income |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
as restated |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,849,831 | 1,698,445 |
OTHER COMPREHENSIVE INCOME |
Impairment of freehold property | (140,000 | ) | (500,000 | ) |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(140,000 |
) |
(500,000 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,709,831 |
1,198,445 |
Total comprehensive income attributable to: |
Owners of the parent | 1,709,831 | 1,198,445 |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Consolidated Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 14 | 1,654,105 | 1,640,750 |
Investments | 15 | - | - |
1,654,105 | 1,640,750 |
CURRENT ASSETS |
Stocks | 16 | 3,597,194 | 4,173,223 |
Debtors | 17 | 9,010,554 | 3,905,057 |
Cash at bank and in hand | 2,596,790 | 3,541,023 |
15,204,538 | 11,619,303 |
CREDITORS |
Amounts falling due within one year | 18 | 8,632,966 | 6,028,643 |
NET CURRENT ASSETS | 6,571,572 | 5,590,660 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 8,225,677 | 7,231,410 |
CREDITORS |
Amounts falling due after more than one year |
19 |
- |
(15,300 |
) |
PROVISIONS FOR LIABILITIES | 23 | (232,996 | ) | (83,260 | ) |
NET ASSETS | 7,992,681 | 7,132,850 |
CAPITAL AND RESERVES |
Called up share capital | 24 | 74,500 | 100,000 |
Revaluation reserve | 25 | 564,989 | 704,989 |
Capital redemption reserve | 25 | 25,500 | - |
Retained earnings | 25 | 7,327,692 | 6,327,861 |
SHAREHOLDERS' FUNDS | 7,992,681 | 7,132,850 |
The financial statements were approved by the Board of Directors and authorised for issue on 1 August 2024 and were signed on its behalf by: |
G I Sankey - Director |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Company Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 14 |
Investments | 15 |
CURRENT ASSETS |
Stocks | 16 |
Debtors | 17 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 18 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 23 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 24 |
Capital redemption reserve | 25 |
Retained earnings | 25 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,564,014 | 1,356,262 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up | Capital |
share | Retained | Revaluation | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 | 100,000 | 4,459,016 | 1,204,989 | - | 5,764,005 |
Changes in equity |
Total comprehensive income | - | 1,868,845 | (500,000 | ) | - | 1,368,845 |
Balance at 31 December 2022 | 100,000 | 6,327,861 | 704,989 | - | 7,132,850 |
Changes in equity |
Issue of share capital | (25,500 | ) | - | - | - | (25,500 | ) |
Total comprehensive income | - | 999,831 | (140,000 | ) | 25,500 | 885,331 |
Balance at 31 December 2023 | 74,500 | 7,327,692 | 564,989 | 25,500 | 7,992,681 |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Company Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Issue of share capital | ( |
) | - | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 402,175 | 617,025 |
Interest element of hire purchase payments paid |
(2,378 |
) |
(2,378 |
) |
Tax paid | (373,009 | ) | (72,545 | ) |
Net cash from operating activities | 26,788 | 542,102 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (434,818 | ) | (258,336 | ) |
Sale of tangible fixed assets | 117,820 | 78,930 |
Interest received | 128,052 | 31,727 |
Net cash from investing activities | (188,946 | ) | (147,679 | ) |
Cash flows from financing activities |
Capital repayments in year | (18,360 | ) | (18,360 | ) |
Share buyback | (850,000 | ) | - |
Net cash from financing activities | (868,360 | ) | (18,360 | ) |
(Decrease)/increase in cash and cash equivalents | (1,030,518 | ) | 376,063 |
Cash and cash equivalents at beginning of year |
2 |
3,409,576 |
3,033,513 |
Cash and cash equivalents at end of year | 2 | 2,379,058 | 3,409,576 |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Profit before taxation | 2,559,044 | 1,973,091 |
Depreciation charges | 172,157 | 149,464 |
Profit on disposal of fixed assets | (8,514 | ) | (15,881 | ) |
Dilapidation provision | 112,500 | 60,000 |
C79 VAT tax recovery | - | 170,402 |
Finance costs | 2,378 | 2,378 |
Finance income | (128,052 | ) | (31,728 | ) |
2,709,513 | 2,307,726 |
Decrease/(increase) in stocks | 576,029 | (2,161,166 | ) |
Increase in trade and other debtors | (5,105,497 | ) | (575,325 | ) |
Increase in trade and other creditors | 2,222,130 | 1,045,790 |
Cash generated from operations | 402,175 | 617,025 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 2,596,790 | 3,541,023 |
Bank overdrafts | (217,732 | ) | (131,447 | ) |
2,379,058 | 3,409,576 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
as restated |
£ | £ |
Cash and cash equivalents | 3,541,023 | 3,074,207 |
Bank overdrafts | (131,447 | ) | (40,694 | ) |
3,409,576 | 3,033,513 |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 3,541,023 | (944,233 | ) | 2,596,790 |
Bank overdrafts | (131,447 | ) | (86,285 | ) | (217,732 | ) |
3,409,576 | (1,030,518 | ) | 2,379,058 |
Debt |
Finance leases | (33,660 | ) | 18,360 | (15,300 | ) |
(33,660 | ) | 18,360 | (15,300 | ) |
Total | 3,375,916 | (1,012,158 | ) | 2,363,758 |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Cecil Macdonald & Co Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
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 |
The parent company has taken exemption under Financial Reporting Standard 102, section 1.12 not to present its individual Statement of Cash Flows. |
Going concern principle |
The financial statements have been prepared on a going concern basis; the Directors have considered the basis of accounting in light of the strength of the Group Balance Sheet and consider that the adoption of the going concern principle is still appropriate. |
Basis of consolidation |
The consolidated financial statements incorporate the results of Cecil Macdonald & Co Limited and all of it's subsidiary undertakings as at 31 December 2023 using the acquisition or merger method of accounting as required. Where the acquisition method is used, the results of subsidiary undertakings are included from the date of acquisition. |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | ACCOUNTING POLICIES - continued |
Critical accounting judgements and key sources of estimation uncertainty |
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include: |
Critical management judgement in applying accounting policies |
In the process of applying the company's accounting policies, management has made the following judgements, apart from those involving estimation, which have the most significant effect on the amounts recognised in the financial statements: |
(a) Assessment of financial instruments |
The company holds a number of financial instruments, and management exercised judgement in determining whether each instrument was basic or non-basic. |
(b) Recognition of provisions and contingencies |
Judgement is exercised by management to distinguish between provisions and contingencies. |
Key sources of estimation |
The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period: |
(a) Determining net realisable value of stocks |
In determining the net realisable value of stocks, management takes into account the most reliable evidence available at the dates the estimates are made. |
(b) Estimating useful lives of property, plant and equipment |
The company estimates the useful lives of property, plant and equipment based on the period over which the assets are expected to be available for use. The estimates useful lives of property, plant and equipment are reviewed periodically and are updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence and legal or other limits on the use of assets. |
Based on management's assessment as at 31 December 2023, the value of the Hotel has been written down from £1 million to £ 800,000. |
(c) Calculating deferred tax |
Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. |
Turnover |
Turnover represents sales to external customers at invoiced amounts less Value Added Tax or local taxes on sales. Income is recognised on despatch of goods. Income on rebates is recognised when the right to the income arises. |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Short leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Freehold land is not depreciated. |
Where the carrying value of a tangible fixed asset is permanently reduced, the impairment adjustment is written to the Other Comprehensive Income Statement in the year which it arises. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. |
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. |
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 profit or loss. |
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
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 balance sheet date. |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 |
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet 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. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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 profit or loss in the period to which they relate. |
Debtors |
Basic financial assets, including trade and other debtors, are initially recognised at transaction price, unless the arrangement constitutes a financial transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment. |
Cash and cash equivalents |
Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
Creditors |
Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, 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. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment. |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the group. |
An analysis of turnover by class of business is given below: |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Supply of goods | 65,022,431 | 45,366,496 |
Supply of services | 534,340 | 528,152 |
65,556,771 | 45,894,648 |
An analysis of turnover by geographical market is given below: |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
United Kingdom | 59,729,031 | 42,486,852 |
Rest of World | 5,827,740 | 3,407,796 |
65,556,771 | 45,894,648 |
5. | OTHER OPERATING INCOME |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Sundry receipts | 83,147 | 129,000 |
Government grants | 15,179 | 27,234 |
98,326 | 156,234 |
Other operating income includes recovery of C79 VAT and business rates relief. |
6. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Wages and salaries | 2,324,169 | 1,744,656 |
Social security costs | 278,481 | 216,184 |
Other pension costs | 62,887 | 57,353 |
2,665,537 | 2,018,193 |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
6. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
as restated |
Sales & administration | 13 | 12 |
Warehousing & distribution | 16 | 15 |
Hotel & catering | 10 | 9 |
The average number of employees within the parent company during the year was 13 (2022 12) |
7. | DIRECTORS' EMOLUMENTS |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Directors' remuneration | 1,058,000 | 712,000 |
Directors' pension contributions to money purchase schemes | 20,000 | 20,000 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
Information regarding the highest paid director is as follows: |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Emoluments etc | 558,000 | 384,000 |
Pension contributions to money purchase schemes | 10,000 | 10,000 |
Key management personnel |
Key management personnel compensation was £1,464,943 (2022: £1,013,200), which includes all persons having authority and responsibility for planning, directing and controlling activities of Group entities, directly and indirectly, including directors. |
8. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Hire of plant and machinery | 58,649 | 47,073 |
Depreciation - owned assets | 172,157 | 129,064 |
Depreciation - assets on hire purchase contracts | - | 20,400 |
Profit on disposal of fixed assets | (8,514 | ) | (15,881 | ) |
9. | AUDITORS' REMUNERATION |
Fees payable to the Group's auditor for the audit of the Group's annual financial statements was £24,500 (2022: £18,100) |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Hire purchase | 2,378 | 2,378 |
11. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Current tax: |
UK corporation tax | 671,977 | 373,009 |
Deferred tax | 37,236 | (98,363 | ) |
Tax on profit | 709,213 | 274,646 |
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: |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Profit before tax | 2,559,044 | 1,973,091 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.400 % (2022 - 19 %) |
598,816 |
374,887 |
Effects of: |
Other adjustments to tax charge | 73,161 | (1,878 | ) |
Deferred tax | 37,236 | (98,363 | ) |
Total tax charge | 709,213 | 274,646 |
Tax effects relating to effects of other comprehensive income |
31.12.23 |
Gross | Tax | Net |
£ | £ | £ |
Impairment of freehold property | (140,000 | ) | - | (140,000 | ) |
31.12.22 |
Gross | Tax | Net |
£ | £ | £ |
Impairment of freehold property | (500,000 | ) | - | (500,000 | ) |
C79 adjustment | 170,400 | - | 170,400 |
(329,600 | ) | - | (329,600 | ) |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
12. | INDIVIDUAL PROFIT AND LOSS |
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. The profit after tax of the parent company was £1,397,048 (2022 restated: £1,356,262). |
13. | PRIOR YEAR ADJUSTMENT |
In the year the parent company and a subsidiary company claimed backdated C79 VAT recoveries, for the period July 2019 to June 2023, which were received in 2024 in the amount of £362,400, of which £129,000 related to 2022 and £170,000 related to prior years. The comparative figures have been restated to show these claim receipts. |
14. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Short | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2023 | 2,301,360 | 55,066 | 538,316 |
Additions | - | 98,970 | 9,990 |
Disposals | - | - | (13,206 | ) |
At 31 December 2023 | 2,301,360 | 154,036 | 535,100 |
DEPRECIATION |
At 1 January 2023 | 1,146,654 | 18,125 | 432,231 |
Charge for year | 22,667 | 5,605 | 45,973 |
Eliminated on disposal | - | - | (13,206 | ) |
Impairments | 140,000 | - | - |
At 31 December 2023 | 1,309,321 | 23,730 | 464,998 |
NET BOOK VALUE |
At 31 December 2023 | 992,039 | 130,306 | 70,102 |
At 31 December 2022 | 1,154,706 | 36,941 | 106,085 |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
14. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 January 2023 | 151,638 | 407,421 | 48,957 | 3,502,758 |
Additions | 175,261 | 140,910 | 9,687 | 434,818 |
Disposals | - | (126,226 | ) | (29,957 | ) | (169,389 | ) |
At 31 December 2023 | 326,899 | 422,105 | 28,687 | 3,768,187 |
DEPRECIATION |
At 1 January 2023 | 146,261 | 74,530 | 44,207 | 1,862,008 |
Charge for year | 1,929 | 91,233 | 4,750 | 172,157 |
Eliminated on disposal | - | (16,920 | ) | (29,957 | ) | (60,083 | ) |
Impairments | - | - | - | 140,000 |
At 31 December 2023 | 148,190 | 148,843 | 19,000 | 2,114,082 |
NET BOOK VALUE |
At 31 December 2023 | 178,709 | 273,262 | 9,687 | 1,654,105 |
At 31 December 2022 | 5,377 | 332,891 | 4,750 | 1,640,750 |
Freehold properties are included at valuation; all other tangible fixed assets are included at cost. |
Cost or valuation at 31 December 2023 is represented by: |
Freehold | Short | Plant and |
property | leasehold | machinery |
£ | £ | £ |
Valuation in 2023 | 2,301,360 | 154,036 | 535,100 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
Valuation in 2023 | 326,899 | 422,105 | 28,687 | 3,768,187 |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
14. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST OR VALUATION |
At 1 January 2023 |
and 31 December 2023 | 102,000 |
DEPRECIATION |
At 1 January 2023 |
and 31 December 2023 | 66,300 |
NET BOOK VALUE |
At 31 December 2023 | 35,700 |
At 31 December 2022 | 35,700 |
Company |
Fixtures |
Freehold | Short | and |
property | leasehold | fittings |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal |
Impairments |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
14. | TANGIBLE FIXED ASSETS - continued |
Company |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
Impairments |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The freehold property, The Hope Anchor Hotel in Rye, East Sussex, had previously been included at valuation of £1,500,000 on an existing use basis, assessed by local agent, J Stubbs of Stubbs & Partners in 2019. Last year the property was written down to £1,000,000 and after a further review this year, the property was written down to an estimated realisable value of £800,000, so a £140,000 impairment loss has been recognised in these accounts. |
Fixtures and fittings to be used in a newly leased property were purchased shortly before the year end. No depreciation has been recognised this year. Depreciation commenced shortly after the year end when the newly leased property was occupied by the company. |
15. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertaking |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
15. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Ambassadors Choice Limited |
Registered office: Macdonald House, 1 Lowfield Way, Lowfield Heath, Crawley, West Sussex, UK |
Nature of business: Supply of goods in the tax-free sector |
% |
Class of shares: | holding |
Ordinary | 100.00 |
D F Warehouses Limited |
Registered office: Macdonald House, 1 Lowfield Way, Lowfield Heath, Crawley, West Sussex, UK |
Nature of business: Warehousing for group & 3rd party companies. |
% |
Class of shares: | holding |
Ordinary | 100.00 |
CMD Hotels & Catering Limited |
Registered office: Macdonald House, 1 Lowfield Way, Lowfield Heath, Crawley, West Sussex, UK |
Nature of business: Management of a hotel. |
% |
Class of shares: | holding |
Ordinary | 100.00 |
CMD Hotels & Catering Limited (company number: 04040918) is exempt from the requirements of this Act relating to the audit of accounts under section 479A of the Companies Act 2006. |
16. | STOCKS |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
as restated | as restated |
£ | £ | £ | £ |
Stocks | 3,597,194 | 4,173,223 |
There was a provision against slow moving stock of £219,463 (2022: £165,240) at the Balance Sheet date. |
17. | DEBTORS |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
as restated | as restated |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 7,803,448 | 3,226,969 |
Amounts owed by group undertakings | - | - |
Other debtors | 362,440 | 306,670 |
Prepayments and accrued income | 733,287 | 371,418 |
8,899,175 | 3,905,057 |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
17. | DEBTORS - continued |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
as restated | as restated |
£ | £ | £ | £ |
Amounts falling due after more than one | year: |
Other debtors | 111,379 | - |
Aggregate amounts | 9,010,554 | 3,905,057 |
18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
as restated | as restated |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 20) | 217,732 | 131,447 |
Hire purchase contracts (see note 21) | 15,300 | 18,360 |
Trade creditors | 4,591,527 | 2,851,031 |
Amounts owed to group undertakings | - | - |
Tax | 671,977 | 373,009 |
VAT | 687,557 | 504,863 | 246,319 | 217,210 |
Other creditors | 541,882 | 1,075,244 |
Accruals and deferred income | 1,906,991 | 1,074,689 |
8,632,966 | 6,028,643 |
19. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Hire purchase contracts (see note 21) | - | 15,300 |
20. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
as restated | as restated |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 217,732 | 131,447 |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
21. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Gross obligations repayable: |
Within one year | 17,282 | 20,738 |
Between one and five years | - | 17,282 |
17,282 | 38,020 |
Finance charges repayable: |
Within one year | 1,982 | 2,378 |
Between one and five years | - | 1,982 |
1,982 | 4,360 |
Net obligations repayable: |
Within one year | 15,300 | 18,360 |
Between one and five years | - | 15,300 |
15,300 | 33,660 |
Group |
Non-cancellable | operating leases |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Within one year | 941,420 | 551,714 |
Between one and five years | 3,337,559 | 2,206,857 |
In more than five years | 3,124,000 | 3,581,429 |
7,402,979 | 6,340,000 |
Company |
Non-cancellable | operating leases |
31.12.23 | 31.12.22 |
as restated |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
22. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
as restated | as restated |
£ | £ | £ | £ |
Bank overdraft | 217,732 | 131,447 |
Hire purchase contracts | 15,300 | 33,660 | - | - |
233,032 | 165,107 |
Barclays Bank PLC hold fixed and floating charges over all the property or undertaking of the parent company, registered as such in July 2016. Hire purchase liabilities are secured upon the assets to which the finance relates. |
23. | PROVISIONS FOR LIABILITIES |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
as restated | as restated |
£ | £ | £ | £ |
Deferred tax | 60,496 | 23,260 | 39,557 | - |
Other provisions |
Dilapidations provision | 172,500 | 60,000 | 172,500 | 60,000 |
Aggregate amounts | 232,996 | 83,260 | 212,057 | 60,000 |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 January 2023 | 23,260 | 60,000 |
Provided during year | 39,557 | 112,500 |
Released during the year | (2,321 | ) | - |
Balance at 31 December 2023 | 60,496 | 172,500 |
Company |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 January 2023 |
Provided during year |
Balance at 31 December 2023 |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
24. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | as restated |
£ | £ |
Ordinary shares | £1 | 74,500 | 100,000 |
On 31 January 2023 the company bought back 25,500 of its £1 Ordinary shares. |
25. | RESERVES |
Group |
Capital |
Retained | Revaluation | redemption |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2023 | 6,327,861 | 704,989 | - | 7,032,850 |
Profit for the year | 1,849,831 | 1,849,831 |
Purchase of own shares | (850,000 | ) | - | 25,500 | (824,500 | ) |
Revaluation | - | (140,000 | ) | - | (140,000 | ) |
At 31 December 2023 | 7,327,692 | 564,989 | 25,500 | 7,918,181 |
Company |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2023 | 5,237,458 |
Profit for the year |
Purchase of own shares | (850,000 | ) | 25,500 | (824,500 | ) |
Revaluation | (140,000 | ) | - | (140,000 | ) |
Dividends inter-group | 1,000,000 | - | 1,000,000 |
At 31 December 2023 | 6,836,972 |
26. | PENSION COMMITMENTS |
The group operates two defined contribution pension schemes. The assets of the schemes are held separately from those of the group in independently administered funds. The pension charges amounted to £62,887 (2022: £57,353). There were no outstanding or prepaid contributions at either the beginning or end of the financial year. |
27. | 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 the UK and Republic of Ireland' not to disclose related party transactions with wholly owned subsidiaries within the group. Salaries paid to related parties employed within the Group amounted to £121,604 (2022: £111,249) in aggregate. |
Cecil Macdonald & Co Limited (Registered number: 00439454) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
28. | POST BALANCE SHEET EVENTS |
In June 2024 Cecil Macdonald & Co Limited and CMD Hotels & Catering Limited, a subsidiary company, sold the properties from which CMD Hotels & Catering Limited operated and its trade; from that date, CMD Hotels & Catering Limited ceased to trade and all employees were transferred to the acquirer under TUPE regulations without any cost to the Group. Proceeds of sale were sufficient to cover all outstanding liabilities at cessation of trade. |
29. | ULTIMATE CONTROLLING PARTY |
The group is under the control of Mr GI Sankey and Mr SR Wescott by virtue of their interests in the shareholding of the parent company. |