Company registration number 07819492 (England and Wales)
M.P. MORAN HOLDINGS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
M.P. MORAN HOLDINGS LTD
COMPANY INFORMATION
Directors
Mr Kevin Moran
Mr Michael Moran
Mr Martin Moran
Company number
07819492
Registered office
293-301 Kilburn High Road
London
NW6 7JR
Auditor
Higgisons
Higgison House
381-383 City Road
London
EC1V 1NW
M.P. MORAN HOLDINGS LTD
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Income statement
9
Group statement of comprehensive income
10
Group statement of financial position
11
Company statement of financial position
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 35
M.P. MORAN HOLDINGS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Fair review of the business

M.P. Moran Holdings Ltd (the parent ‘Company’) continue to hold a 100% ownership of builder’s merchant M.P. Moran & Sons Ltd (the ‘Subsidiary’) throughout 2023. Collectively they can be referred to as the ‘Group’.

The main source of income within the Group is contributed by the Subsidiary. This income is increased by rental income made within the Company.

The Company acquired no material new investments during the year.

Total Group sales decreased to £66m in 2023 (2022: £67m). Trading conditions remain very tough within the key repair, maintenance and improvement (RMI) sector with continued economic uncertainty, higher interest rates and taxation delaying consumer spending. This decline in sales follows on from two years of growth for the Group.

2023 saw increasing pressure on gross profit margins and a fall to 35.9% (2022: 38.8%). The continued high “cost of living” also saw an impact on overheads with an overall increase in costs, especially salaries. This resulted in Net profit of £2.3m (2022: £5.7m).

The Balance Sheet remains strong, with a net asset position of the Group at 31 December 2023 of £39.3m (2022: 39.5m).

The results for the year and the financial position at the year-end were considered satisfactory by the directors.

Principal risks and uncertainties

The key business risks and uncertainties affecting the Group relate to volatility in trading and market conditions, competition and UK Consumer confidence.

Uncertainty surrounding the resilience of the UK economy with high interest rates and inflation continue to present a difficult trading outlook across the retail sector, particularly in terms of delivering opportunities for growth.

The Group operates in a competitive business sector that is sensitive to both prevailing economic conditions and UK consumer confidence. Should the UK economy deteriorate significantly, this would most likely have an adverse effect on the results of the group.

Overall, the operational and financial actions taken give the Group a sound footing in the current business climate and beyond.

Key performance indicators

The directors review progress continually and in a number of different ways.

 

All branches and departments within the Subsidiary are monitored regularly within three main categories of assessment: General management, financial performance and stock control.

 

 

M.P. MORAN HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Other performance indicators

Greenhouse Gas Emissions Statement:

This carbon report for MP Moran is to meet the reporting requirements under The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 to implement the UK government’s policy on Streamlined Energy and Carbon Reporting (SECR). It also references the global Carbon emissions reported for the previous years.

Where possible the company has replaced diesel forklifts with electric forklifts and have electric charges installed and set to timers so ensure the energy is taken during off peak times.

Any new company cars purchased are electric vehicles and electric charging stations have been installed in both Kilburn and Watford.

A number of measures have been undertaken to reduce the impart of vehicle journeys and the effect on the environment including FORS gold standard, Geotab route optimising and tracking, arranging deliveries direct from the supplier to client, a switch from larger vehicles to light commercial vehicles, removing Non-compliant ULEZ vehicles from the fleet which has reduced fuel consumption and a constant review of the routing and scheduling procedures has allowed the company to reduce the number of delivery vehicles and thereby reducing fleet mileage, fuel usage and cost.

The company has installed sensor lighting in hallways and stairwells where there is lesser activity, to ensure we are not using energy unnecessarily. All lighting in shops/showrooms is now LED.

Methodology & Scope:

The adopted methodology used Is based on the Greenhouse Gas Protocol Corporate Reporting Standard reporting on equivalent CO2 emissions from organisational boundary. Information has been gathered in the same format as for compliance with ESOS Regulations, for Scope 1 & 2 emissions, collated into kWh for all corresponding UK based operations, directly owned or operated by MP Moran (i.e. the organisational boundary).

These have been converted to equivalent tonnes of carbon dioxide (tCO2e) using the published UK Government GHG Conversion Factors for Group Reporting for 2023.

 

2023

2022

Emissions Type

tCO2

kWh

tCO2

kWh

Scope 1

772

3,230,930

846

3,449,388

Scope 2

154

742,450

187

968,317

Total 1 & 2

926

3,973,380

1,033

4,417,705

 

 

 

 

 

Intensity Ratios

Total tCO2e/£100k revenue

Revenue

£M

Total tCO2e/£100k revenue

Revenue

£M

 

 

1.4

66

1.52

67

M.P. MORAN HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Future Developments

The Group is well placed to build on its strong position and realise opportunities to enable growth when possible. In order to help achieve this a number of business goals are in place including, but not limited to, the below:

These goals enable the creation of opportunities for staff and the directors are keen to support this with more staff development and talent management for its workforce.

All future developments are working towards the director’s vision, which is to be the number one supplier of everything from foundations to finishings in London.

 

On behalf of the board

Mr Kevin Moran
Director
25 September 2024
M.P. MORAN HOLDINGS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity is the holding of group investments in companies operating as builders merchants.

Results and dividends

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

Ordinary dividends were paid amounting to £2,500,000. The directors do not recommend payment of a further dividend.

Directors

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

Mr Kevin Moran
Mr Michael Moran
Mr Martin Moran
Market value of land and buildings

In the opinion of the directors the market value of land and buildings exceeds the current net book value.

Future developments

The directors consider that despite challenging times, the group will continue to trade profitably.

Auditor

The auditor, Higgisons, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr Kevin Moran
Director
25 September 2024
M.P. MORAN HOLDINGS LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

M.P. MORAN HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF M.P. MORAN HOLDINGS LTD
- 6 -
Opinion

We have audited the financial statements of M.P. Moran Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 group and parent 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 group's and 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 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.P. MORAN HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF M.P. MORAN HOLDINGS LTD
- 7 -
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 their 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 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 parent 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.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and determined that the most significant are those that relate to trade laws and employment matters.

 

The degree of the risk in relation to irregularities and fraud is minimal.

 

Our audit procedures included walkthrough tests on payroll, reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations, auditing the risk of management override of controls, including through testing of journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.. We have also enquired with management in respect of any potential litigation and claims. These procedures are assumed sufficient to identify non-compliance with employment law as well as trade laws.

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.P. MORAN HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF M.P. MORAN HOLDINGS LTD
- 8 -

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 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

Ian Shillinglaw (Senior Statutory Auditor)
For and on behalf of Higgisons
25 September 2024
Chartered Accountants
Statutory Auditor
Higgison House
381-383 City Road
London
EC1V 1NW
M.P. MORAN HOLDINGS LTD
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
66,159,800
66,920,099
Cost of sales
(42,421,805)
(40,979,732)
Gross profit
23,737,995
25,940,367
Distribution costs
(840,401)
(911,726)
Administrative expenses
(20,380,703)
(18,579,347)
Other operating income
632,640
592,034
Operating profit
4
3,149,531
7,041,328
Share of results of associates and joint ventures
30,272
19,368
Interest receivable and similar income
8
127,721
57,652
Interest payable and similar expenses
9
(72,753)
(58,554)
Profit before taxation
3,234,771
7,059,794
Taxation
10
(921,670)
(1,389,589)
Profit for the financial year
2,313,101
5,670,205
Profit for the financial year is all attributable to the owners of the parent company.

The income statement has been prepared on the basis that all operations are continuing operations.

M.P. MORAN HOLDINGS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
£
£
Profit for the year
2,313,101
5,670,205
Other comprehensive income
-
-
Total comprehensive income for the year
2,313,101
5,670,205
Total comprehensive income for the year is all attributable to the owners of the parent company.
M.P. MORAN HOLDINGS LTD
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
13,957,148
13,756,149
Investment property
14
10,009,674
10,009,674
Investments
13
488,064
457,792
24,454,886
24,223,615
Current assets
Stocks
17
9,074,920
11,365,824
Debtors falling due after more than one year
18
2,684,910
2,688,206
Debtors falling due within one year
18
7,884,800
7,414,199
Cash at bank and in hand
7,582,043
7,927,197
27,226,673
29,395,426
Creditors: amounts falling due within one year
19
(10,817,458)
(11,764,717)
Net current assets
16,409,215
17,630,709
Total assets less current liabilities
40,864,101
41,854,324
Creditors: amounts falling due after more than one year
20
-
(897,913)
Provisions for liabilities
Deferred tax liability
23
1,570,143
1,475,554
(1,570,143)
(1,475,554)
Net assets
39,293,958
39,480,857
Capital and reserves
Called up share capital
25
50,000
50,000
Profit and loss reserves
39,243,958
39,430,857
Total equity
39,293,958
39,480,857
The financial statements were approved by the board of directors and authorised for issue on 25 September 2024 and are signed on its behalf by:
25 September 2024
Mr Kevin Moran
Director
Company registration number 07819492 (England and Wales)
M.P. MORAN HOLDINGS LTD
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,673,155
1,702,835
Investment property
14
10,009,674
10,009,674
Investments
13
50,000
50,000
11,732,829
11,762,509
Current assets
Debtors falling due after more than one year
18
2,684,910
2,688,206
Debtors falling due within one year
18
4,500,841
5,228,153
Cash at bank and in hand
971,009
831,515
8,156,760
8,747,874
Creditors: amounts falling due within one year
19
(859,064)
(334,730)
Net current assets
7,297,696
8,413,144
Total assets less current liabilities
19,030,525
20,175,653
Provisions for liabilities
Deferred tax liability
23
1,062,895
1,062,895
(1,062,895)
(1,062,895)
Net assets
17,967,630
19,112,758
Capital and reserves
Called up share capital
25
50,000
50,000
Profit and loss reserves
17,917,630
19,062,758
Total equity
17,967,630
19,112,758

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,354,872 (2022 - £1,964,504 profit).

The financial statements were approved by the board of directors and authorised for issue on 25 September 2024 and are signed on its behalf by:
25 September 2024
Mr Kevin Moran
Director
Company registration number 07819492 (England and Wales)
M.P. MORAN HOLDINGS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
50,000
36,260,652
36,310,652
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
5,670,205
5,670,205
Dividends
11
-
(2,500,000)
(2,500,000)
Balance at 31 December 2022
50,000
39,430,857
39,480,857
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
2,313,101
2,313,101
Dividends
11
-
(2,500,000)
(2,500,000)
Balance at 31 December 2023
50,000
39,243,958
39,293,958
M.P. MORAN HOLDINGS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
50,000
19,598,254
19,648,254
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
1,964,504
1,964,504
Dividends
11
-
(2,500,000)
(2,500,000)
Balance at 31 December 2022
50,000
19,062,758
19,112,758
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
1,354,872
1,354,872
Dividends
11
-
(2,500,000)
(2,500,000)
Balance at 31 December 2023
50,000
17,917,630
17,967,630
M.P. MORAN HOLDINGS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
4,991,527
6,753,766
Interest paid
(72,753)
(58,554)
Taxes paid
(1,250,000)
(1,379,998)
Net cash inflow from operating activities
3,668,774
5,315,214
Investing activities
Purchase of tangible fixed assets
(1,260,708)
(2,328,140)
Proceeds on disposal of tangible fixed assets
111,795
197,834
Interest received
127,721
57,652
Net cash used in investing activities
(1,021,192)
(2,072,654)
Financing activities
Repayment of borrowings
(292,736)
(464,073)
Repayment of bank loans
(200,000)
(200,000)
Dividends paid to equity shareholders
(2,500,000)
(2,500,000)
Net cash used in financing activities
(2,992,736)
(3,164,073)
Net (decrease)/increase in cash and cash equivalents
(345,154)
78,487
Cash and cash equivalents at beginning of year
7,927,197
7,848,710
Cash and cash equivalents at end of year
7,582,043
7,927,197
M.P. MORAN HOLDINGS LTD
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
2,014,417
785,708
Taxes paid
(180,000)
(179,999)
Net cash inflow from operating activities
1,834,417
605,709
Investing activities
Interest received
55,077
50,552
Dividends received
750,000
1,000,000
Net cash generated from investing activities
805,077
1,050,552
Financing activities
Dividends paid to equity shareholders
(2,500,000)
(2,500,000)
Net cash used in financing activities
(2,500,000)
(2,500,000)
Net increase/(decrease) in cash and cash equivalents
139,494
(843,739)
Cash and cash equivalents at beginning of year
831,515
1,675,254
Cash and cash equivalents at end of year
971,009
831,515
M.P. MORAN HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
1
Accounting policies
Company information

M.P. Moran Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 293-301 Kilburn High Road, London, NW6 7JR.

 

The group consists of M.P. Moran Holdings Limited and all of its subsidiaries.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company M.P. Moran Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

M.P. MORAN HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Freehold
Nil as the properties are fully maintained
Land and buildings Leasehold
Straight line basis over the lease term
Plant and machinery
25% on reducing balance method
Fixtures, fittings & equipment
25% on reducing balance method
Motor vehicles
25% on reducing balance method

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 recognised in the income statement.

1.6
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

 

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

M.P. MORAN HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

M.P. MORAN HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.9
Stocks

Stocks 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 stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks 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.

1.10
Cash at bank and in hand

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.

1.11
Financial instruments

The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

M.P. MORAN HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group after deducting all of its liabilities.

Basic financial liabilities, including creditors, 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 creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

M.P. MORAN HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.12
Equity instruments

Equity instruments issued by the group 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 group.

1.13
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 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 group’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 income statement, 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 if, and only if, there is 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.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

The group operates a defined contribution scheme, The M P Moran & Sons Limited Pension Scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge includes contributions payable by the group to the fund and amounted to £nil (2022: £nil).

 

The group operates a defined contribution scheme, The Kildun Pension Scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge includes contributions payable by the group to the fund and amounted to £180,000 (2022: £120,000)

M.P. MORAN HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -
1.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.17
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.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

Turnover analysed by geographical market
2023
2022
£
£
United Kingdom
66,159,800
66,880,301
Rest of Europe
-
39,798
66,159,800
66,920,099
Other significant revenue
Interest income
127,721
57,652
M.P. MORAN HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
114,195
(259,963)
Depreciation of owned tangible fixed assets
972,565
960,553
Profit on disposal of tangible fixed assets
(24,653)
(50,781)
Operating lease charges
2,228,250
2,518,607
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
11,000
11,000
Audit of the financial statements of the company's subsidiaries
32,000
32,000
43,000
43,000
For other services
All other non-audit services
42,700
38,350
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
292
279
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
10,629,655
9,864,652
-
0
-
0
Social security costs
1,093,775
1,055,820
-
-
Pension costs
472,468
385,850
-
0
-
0
12,195,898
11,306,322
-
0
-
0
M.P. MORAN HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
683,281
869,466
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
202,738
293,928

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022-4)

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
74,303
7,121
Other interest income
53,418
50,531
Total income
127,721
57,652
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
74,303
7,121
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
72,753
58,554
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
827,081
1,254,462
M.P. MORAN HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 26 -
Deferred tax
Origination and reversal of timing differences
94,589
135,127
Total tax charge
921,670
1,389,589

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

2023
2022
£
£
Profit before taxation
3,234,771
7,059,794
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
760,171
1,341,361
Tax effect of expenses that are not deductible in determining taxable profit
36,812
121,341
Tax effect of income not taxable in determining taxable profit
7,114
(60,263)
Double tax relief
-
0
(2,907)
Depreciation in excess of capital allowances
-
0
(148,694)
Depreciation on assets not qualifying for tax allowances
117,573
3,624
Deferred tax
-
0
135,127
Taxation charge for the year
921,670
1,389,589
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
2,500,000
2,500,000
M.P. MORAN HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
12
Tangible fixed assets
Group
Land and buildings Freehold
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
1,884,999
11,998,000
2,626,657
3,145,051
3,691,520
23,346,227
Additions
-
0
648,649
187,474
261,175
163,410
1,260,708
Disposals
-
0
-
0
(163,743)
-
0
(316,167)
(479,910)
At 31 December 2023
1,884,999
12,646,649
2,650,388
3,406,226
3,538,763
24,127,025
Depreciation and impairment
At 1 January 2023
186,781
2,730,547
2,127,526
2,398,170
2,147,054
9,590,080
Depreciation charged in the year
26,683
286,561
143,088
144,140
372,093
972,565
Eliminated in respect of disposals
-
0
-
0
(160,270)
-
0
(232,498)
(392,768)
At 31 December 2023
213,465
3,017,109
2,110,344
2,542,310
2,286,649
10,169,877
Carrying amount
At 31 December 2023
1,671,534
9,629,540
540,044
863,916
1,252,114
13,957,148
At 31 December 2022
1,698,217
9,267,453
499,131
746,882
1,544,466
13,756,149
Company
Land and buildings Freehold
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
1,884,999
95,350
1,980,349
Depreciation and impairment
At 1 January 2023
186,781
90,733
277,514
Depreciation charged in the year
26,683
2,997
29,680
At 31 December 2023
213,465
93,729
307,194
Carrying amount
At 31 December 2023
1,671,534
1,621
1,673,155
At 31 December 2022
1,698,217
4,618
1,702,835
M.P. MORAN HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
50,000
50,000
Investments in associates
16
488,064
457,792
-
0
-
0
488,064
457,792
50,000
50,000
Movements in fixed asset investments
Group
Shares in associates
£
Cost or valuation
At 1 January 2023
457,792
Share of associate profit
30,272
At 31 December 2023
488,064
Carrying amount
At 31 December 2023
488,064
At 31 December 2022
457,792
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
50,000
Carrying amount
At 31 December 2023
50,000
At 31 December 2022
50,000
14
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 January 2023 and 31 December 2023
10,009,674
10,009,674
M.P. MORAN HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Investment property
(Continued)
- 29 -

Investment property comprises of office and residential blocks.The fair value of the investment property remained the same as it was on 31 December 2022.The valuation was made by the directors on an open market value basis by reference to market evidence of transaction prices for similar properties.

15
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
M.P Moran & Sons Limited
England & Wales
Ordinary
100.00
16
Associates

Details of associates at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
M.P.Moran Builders Merchants Limited
Republic of Ireland
Ordinary
25

Associates are accounted for under the equity method of accounting. An equity investment is initially recognised at the transaction price and is subsequently adjusted to reflect the investor's share of the profit or loss.

17
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
9,074,920
11,365,824
-
0
-
0
M.P. MORAN HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,799,504
4,765,717
10,509
9,357
Corporation tax recoverable
345,256
224
-
0
224
Amounts owed by group undertakings
-
-
3,074,568
3,824,719
Amounts owed by undertakings in which the company has a participating interest
1,613,253
1,912,652
1,375,105
1,354,477
Other debtors
435,626
178,989
36,876
32,910
Prepayments and accrued income
691,161
556,617
3,783
6,466
7,884,800
7,414,199
4,500,841
5,228,153
Amounts falling due after more than one year:
Amounts owed by undertakings in which the company has a participating interest
2,684,910
2,688,206
2,684,910
2,688,206
Total debtors
10,569,710
10,102,405
7,185,751
7,916,359
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
21
800,000
200,000
-
0
-
0
Other borrowings
21
99,244
294,069
-
0
-
0
Trade creditors
6,321,967
7,450,547
-
0
-
0
Corporation tax payable
11,351
89,238
11,351
-
0
Other taxation and social security
1,158,058
1,145,259
4
23
Deferred income
22
32,723
27,252
32,415
26,944
Other creditors
1,277,719
655,057
794,916
290,950
Accruals and deferred income
1,116,396
1,903,295
20,378
16,813
10,817,458
11,764,717
859,064
334,730
20
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
-
0
800,000
-
0
-
0
Other borrowings
21
-
0
97,913
-
0
-
0
-
897,913
-
-
M.P. MORAN HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
21
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
800,000
1,000,000
-
0
-
0
Other loans
99,244
391,982
-
0
-
0
899,244
1,391,982
-
-
Payable within one year
899,244
494,069
-
0
-
0
Payable after one year
-
0
897,913
-
0
-
0

The bank loans are secured as follows:
1) Mortgage debenture over the assets of the company.

22
Deferred income
Group
Company
2023
2022
2023
2022
£
£
£
£
Other deferred income
32,723
27,252
32,415
26,944
23
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated Capital Allowances
507,248
412,659
Investment property
1,062,895
1,062,895
1,570,143
1,475,554
Liabilities
Liabilities
2023
2022
Company
£
£
Investment property
1,062,895
1,062,895
M.P. MORAN HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
23
Deferred taxation
(Continued)
- 32 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
1,475,554
1,062,895
Charge to profit or loss
94,589
-
Liability at 31 December 2023
1,570,143
1,062,895
There were no company deferred tax movements in the year.
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
472,468
385,850

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

25
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50,000
50,000
50,000
50,000
26
Financial commitments, guarantees and contingent liabilities

An unlimited cross guarantee has been provided in respect of M.P. Moran Holdings Limited and M.P. Moran & Sons Limited.

 

M.P. Moran & Sons Limited has provided guarantees of £398,971 (€450,000) in respect of banking facilities to AIB Group (UK) Plc on behalf of M.P. Moran Builders Merchants Limited, a company incorporated in the Republic of Ireland.

 

M.P. MORAN HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
27
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
866,167
866,167
-
-
Between two and five years
924,000
740,000
-
-
In over five years
327,250
447,083
-
-
2,117,417
2,053,250
-
-
28
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Sales
2023
2022
£
£
Group
M.P. Moran Builders Merchants Limited
-
39,798
Rent received
2023
2022
£
£
Group
M.P. Moran Builders Merchants Limited
54,093
53,076
Company
M.P. Moran Builders Merchants Limited
54,093
53,076

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
M.P. Moran Builders Merchants Limited
4,298,163
4,600,858
Company
M.P. Moran Builders Merchants Limited
4,060,015
4,042,683
M.P. MORAN HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
28
Related party transactions
(Continued)
- 34 -

M.P. Moran Builders Merchants Limited is an associate company incorporated in the Republic of Ireland.

29
Controlling party

Ultimate control is held by two family trusts of which Mr M P Moran is the Precedent Trustee.

30
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,313,101
5,670,205
Adjustments for:
Share of results of associates and joint ventures
(30,272)
(19,368)
Taxation charged
921,670
1,389,589
Finance costs
72,753
58,554
Investment income
(127,721)
(57,652)
Gain on disposal of tangible fixed assets
(24,653)
(50,781)
Depreciation and impairment of tangible fixed assets
972,565
960,553
Movements in working capital:
Decrease/(increase) in stocks
2,290,904
(657,069)
(Increase)/decrease in debtors
(122,273)
684,031
Decrease in creditors
(1,280,018)
(1,225,184)
Increase in deferred income
5,471
888
Cash generated from operations
4,991,527
6,753,766
31
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
1,354,872
1,964,504
Adjustments for:
Taxation charged
191,575
160,036
Investment income
(805,077)
(1,050,552)
Depreciation and impairment of tangible fixed assets
29,680
30,857
Movements in working capital:
Decrease/(increase) in debtors
730,384
(574,274)
Increase in creditors
507,512
254,249
Increase in deferred income
5,471
888
Cash generated from operations
2,014,417
785,708
M.P. MORAN HOLDINGS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
32
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
7,927,197
(345,154)
7,582,043
Borrowings excluding overdrafts
(1,391,982)
492,738
(899,244)
6,535,215
147,584
6,682,799
33
Analysis of changes in net funds - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
831,515
139,494
971,009
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