Company registration number 01079839 (England and Wales)
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
COMPANY INFORMATION
Directors
P L Murphy
M Slane
M P Petersen
J G Murphy
(Appointed 7 September 2023)
M S M Murphy
(Appointed 7 September 2023)
Secretary
M Slane
Company number
01079839
Registered office
Winston House
Dollis Park
London
England
N3 1HF
Auditor
Elliotts Shah
4th Floor
167 Fleet Street
London
EC4A 2EA
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
Independent auditor's report
4 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
Notes to the financial statements
14 - 30
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Review of the business
The group acquires properties for both investment and development opportunities. Its portfolio is located primarily in North London, South and South East England. It seeks to maximise rental income through a combination of direct management by its commercial property staff and expenditure on improvements to attract or retain tenants.
Where opportunities arise, the group obtains planning consents for development of properties in its portfolio and directly manages the development process employing specialist professionals and building contractors.
During the year to March 2024, despite the continuing difficult economic conditions, rental income, excluding the Pinks Industrial Estate sold in 2023, increased slightly to £5.38m from £5.32m, partly offsetting the rise in interest and other finance costs.
To mitigate the risks of further increases in interest rates the group has continued to benefit from a hedging derivative for £32m to fix the interest on that part of its borrowings.
Yields for valuation purposes on rental properties have risen for a number of sectors and this has resulted in an overall decline in the net values to £79.9m from a prior year value of £83m. Some sectors such as Industrial Property and Healthcare have been more resilient, and after the year end the Willments industrial estate was sold for £11m. funding a substantial reduction in the group's loan with NatWest which will reduce finance costs by over £500k per annum.
Principal risks and uncertainties
Funding is a key issue for property companies and the group's policy is to establish and maintain relations with major providers of commercial property finance. The group has placed its main facility with NatWest Bank plc for Winston House and other commercial properties, and has adequate finance in place from other lenders for its requirements.
Key performance indicators
Group Net Assets - £31.06m (2023: £34.64m)
Net Asset Value (NAV) per share - £10.35 (2023: £11.55)
M Slane
Director
23 September 2024
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company and group continued to be that of property development, trading and investment, and the provision of management services to related entities.
Dividends
No dividends will be distributed for the year ended 31 March 2024.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
P L Murphy
M Slane
M P Petersen
J G Murphy
(Appointed 7 September 2023)
M S M Murphy
(Appointed 7 September 2023)
PL Murphy retired from his role as Chairman and Managing Director in October 2023 and was succeeded by M Slane who has been an Executive Director of the company since July 2010.
The beneficial interests of the directors holding office on 31 March 2024 in the issued share capital of the company were as follows:
Ordinary £1 shares
31.03.2024
01.04.2023
P L Murphy
2,820,000
2,820,000
M P Petersen
180,000
180,000
M Slane
-
-
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.
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Statement of the directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
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.
On behalf of the board
M Slane
Director
23 September 2024
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MFC ESTATES PLC AND SUBSIDIARY COMPANIES
- 4 -
Opinion
We have audited the financial statements of MFC Estates plc (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2024 and of the group's loss 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.
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.
We would draw your attention to note 13 in the financial statements which indicates that the investment properties for the year ended 31 March 2024 have been revalued on an open market basis by the directors and internal consultants of the company on a yield basis. Adjustments to the financial statements would arise if property values were to differ materially from that disclosed in the financial statements. Our opinion is not modified in respect of this matter.
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.
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.
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MFC ESTATES PLC AND SUBSIDIARY COMPANIES
- 5 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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:
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 financial statements are not in agreement with the accounting records and 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 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MFC ESTATES PLC AND SUBSIDIARY COMPANIES
- 6 -
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with management, and from our commercial knowledge and experience of the real estate sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and taxation legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC and relevant regulators.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities 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.
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.
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MFC ESTATES PLC AND SUBSIDIARY COMPANIES
- 7 -
Arvind Shah (Senior Statutory Auditor)
For and on behalf of Elliotts Shah
24 September 2024
Chartered Accountants
Statutory Auditor
4th Floor
167 Fleet Street
London
EC4A 2EA
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
5,449,408
5,622,360
Cost of sales
(3,715,125)
(1,627,473)
Gross profit
1,734,283
3,994,887
Administrative expenses
(1,444,013)
(1,490,776)
Other operating (expenses)/income
(1,157,131)
1,200,056
Operating (loss)/profit
4
(866,861)
3,704,167
Joint property participant's share of (profits)/losses
169,825
(207,870)
Dividends receivable
134,358
Interest payable and similar expenses
8
(3,484,126)
(2,719,063)
Other gains and losses
9
-
265,739
(Loss)/profit before taxation
(4,181,162)
1,177,331
Tax on (loss)/profit
10
606,425
6,173
(Loss)/profit for the financial year
25
(3,574,737)
1,183,504
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
GROUP BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
618,749
696,093
Tangible assets
12
3,163
4,217
Investment property
13
64,524,800
65,230,781
Investments
14
1,644,116
1,896,372
66,790,828
67,827,463
Current assets
Stocks
16
15,572,123
17,831,333
Debtors
17
3,099,667
4,672,990
Cash at bank and in hand
1,958,084
1,664,610
20,629,874
24,168,933
Creditors: amounts falling due within one year
18
(9,262,731)
(10,314,682)
Net current assets
11,367,143
13,854,251
Total assets less current liabilities
78,157,971
81,681,714
Creditors: amounts falling due after more than one year
19
(46,170,310)
(45,512,891)
Provisions for liabilities
Deferred tax liability
21
924,128
1,530,553
(924,128)
(1,530,553)
Net assets
31,063,533
34,638,270
Capital and reserves
Called up share capital
23
3,000,000
3,000,000
Share premium account
24
12,500
12,500
Profit and loss reserves
25
28,050,934
31,625,671
Equity attributable to owners of the parent company
31,063,434
34,638,171
Non-controlling interests
99
99
31,063,533
34,638,270
The financial statements were approved by the board of directors and authorised for issue on 23 September 2024 and are signed on its behalf by:
23 September 2024
M Slane
Director
Company registration number 01079839 (England and Wales)
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
3,163
4,217
Investments
14
34,230,524
35,207,329
34,233,687
35,211,546
Current assets
Stocks
16
9,144,479
11,445,200
Debtors
17
14,276,139
14,489,079
Cash at bank and in hand
1,025,053
802,493
24,445,671
26,736,772
Creditors: amounts falling due within one year
18
(17,473,054)
(19,222,640)
Net current assets
6,972,617
7,514,132
Total assets less current liabilities
41,206,304
42,725,678
Creditors: amounts falling due after more than one year
19
(10,319,613)
(8,758,081)
Net assets
30,886,691
33,967,597
Capital and reserves
Called up share capital
23
3,000,000
3,000,000
Share premium account
24
12,500
12,500
Profit and loss reserves
25
27,874,191
30,955,097
Total equity
30,886,691
33,967,597
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £3,080,907 (2023 - £499,994 profit).
The financial statements were approved by the board of directors and authorised for issue on 23 September 2024 and are signed on its behalf by:
23 September 2024
M Slane
Director
Company registration number 01079839 (England and Wales)
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
£
Balance at 1 April 2022
3,000,000
12,500
30,442,167
33,454,667
99
33,454,766
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
1,183,504
1,183,504
-
1,183,504
Balance at 31 March 2023
3,000,000
12,500
31,625,671
34,638,171
99
34,638,270
Year ended 31 March 2024:
Loss and total comprehensive income
-
-
(3,574,737)
(3,574,737)
-
(3,574,737)
Balance at 31 March 2024
3,000,000
12,500
28,050,934
31,063,434
99
31,063,533
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2022
3,000,000
12,500
30,455,103
33,467,603
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
499,994
499,994
Balance at 31 March 2023
3,000,000
12,500
30,955,097
33,967,597
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
(3,080,906)
(3,080,906)
Balance at 31 March 2024
3,000,000
12,500
27,874,191
30,886,691
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
30
2,908,845
(2,701,045)
Interest paid
(3,484,126)
(2,203,117)
Income taxes paid
(44,645)
Net cash outflow from operating activities
(575,281)
(4,948,807)
Investing activities
Purchase of investment property
(218,094)
(292,601)
Proceeds from disposal of investment property
-
3,085,739
Proceeds from disposal of joint ventures
169,825
(207,870)
Proceeds from disposal of investments
252,256
-
Interest received
1
Dividends received
134,357
Net cash generated from investing activities
203,987
2,719,626
Financing activities
Repayment of borrowings
1,750,000
3,250,000
Repayment of bank loans
(1,085,232)
336,987
Payment of finance leases obligations
-
(1,750,000)
Net cash generated from financing activities
664,768
1,836,987
Net increase/(decrease) in cash and cash equivalents
293,474
(392,194)
Cash and cash equivalents at beginning of year
1,664,610
2,056,804
Cash and cash equivalents at end of year
1,958,084
1,664,610
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
1
Accounting policies
Company information
MFC Estates plc (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Winston House, Dollis Park, London, N3 1HF.
The group consists of MFC Estates plc 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 have been prepared under the historical cost convention as modified by the revaluation of certain assets.
1.2
Business combinations
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.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company MFC Estates plc 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 March 2024. 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.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
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.
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.4
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.
1.5
Turnover
Turnover represents sales of properties held as trading stock where unconditional exchange has taken place prior to the balance sheet date, rents and service charge receivable relating to the year, and management fees receivable for the year, all excluding value added tax.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
1.7
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:
Fixtures and fittings
Straight line over 4 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.8
Investment property
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.
The investment properties are stated at fair value based on valuations performed by the directors who are experienced in property investment and have a good knowledge of the location and type of property owned. The valuations reflect observable market prices, if available, condition of the property, and likely income from the asset.
1.9
Fixed asset investments
Fixed asset investments are stated at share of net assets in respect of shares in and loans to subsidiaries and other unlisted investments, less any provision for diminution in value.
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
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.
1.11
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.12
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 balance sheet 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.
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.
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
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
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.
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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset 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
Pension costs and other post-retirement benefits
The group operates an independently administered defined contribution pension schemes on behalf of a director and some employees. There is a self administered scheme in respect of the director, P L Murphy. Contributions payable to the group's pension schemes are charged to the profit and loss account in the period to which they relate.
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
2024
2023
£
£
Turnover analysed by class of business
Rents and service charges receivable
5,380,966
5,530,281
Management fees receivable
68,442
92,079
5,449,408
5,622,360
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
4
Operating (loss)/profit
2024
2023
£
£
Operating (loss)/profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
1,054
1,406
Amortisation of intangible assets
77,344
77,344
Operating lease charges
215,427
172,580
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
56,310
61,260
For accounts & tax services
37,540
40,840
93,850
102,100
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Office and management
10
10
10
10
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
635,122
762,819
628,645
678,227
Social security costs
74,124
84,698
73,431
83,843
Pension costs
17,754
18,340
17,630
18,189
727,000
865,857
719,706
780,259
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
77,917
87,689
The number of directors to whom retirement benefits were accruing was as follows:
2024
2023
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
7
Directors' remuneration
(Continued)
- 20 -
Money purchase schemes
2
2
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
3,191,873
2,553,276
Other interest payable
292,253
165,787
3,484,126
2,719,063
9
Other gains and losses
2024
2023
£
£
Gain on disposal of investment property
-
265,739
10
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(12,921)
Deferred tax
(606,425)
6,748
Total tax credit
(606,425)
(6,173)
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
(Continued)
- 21 -
The actual credit for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
(Loss)/profit before taxation
(4,181,162)
1,177,331
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(1,045,291)
223,693
Tax effect of expenses that are not deductible in determining taxable profit
12,289
19,405
Tax effect of income not taxable in determining taxable profit
(25,528)
Unutilised tax losses carried forward
(5,048)
(22,276)
Adjustments in respect of prior years
(41,921)
Permanent capital allowances in excess of depreciation
(86,465)
(58,923)
Amortisation on assets not qualifying for tax allowances
19,336
Effect of revaluations of investments
579,699
(49,010)
Other non-reversing timing differences
29,000
5,339
Other permanent differences
(112,107)
35,748
Other
2,162
(92,700)
Taxation credit
(606,425)
(6,173)
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
773,437
Amortisation and impairment
At 1 April 2023
77,344
Amortisation charged for the year
77,344
At 31 March 2024
154,688
Carrying amount
At 31 March 2024
618,749
At 31 March 2023
696,093
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
12
Tangible fixed assets
Group
Fixtures and fittings
£
Cost
At 1 April 2023 and 31 March 2024
12,465
Depreciation and impairment
At 1 April 2023
8,248
Depreciation charged in the year
1,054
At 31 March 2024
9,302
Carrying amount
At 31 March 2024
3,163
At 31 March 2023
4,217
Company
Fixtures and fittings
£
Cost
At 1 April 2023 and 31 March 2024
12,465
Depreciation and impairment
At 1 April 2023
8,248
Depreciation charged in the year
1,054
At 31 March 2024
9,302
Carrying amount
At 31 March 2024
3,163
At 31 March 2023
4,217
13
Investment property
Group
2024
£
Fair value
At 1 April 2023 and 31 March 2024
65,230,781
Additions
218,094
Net gains or losses through fair value adjustments
(924,075)
At 31 March 2024
64,524,800
The investment properties were revalued on an open market basis by the directors and internal consultants (qualified accountants) of the company on a yield basis as at the year end. The historical cost of the property is £45,874,015 (2023: £45,655,921).
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
32,238,471
32,963,020
Loans to subsidiaries
15
347,937
347,937
Unlisted investments
1,644,116
1,896,372
1,644,116
1,896,372
1,644,116
1,896,372
34,230,524
35,207,329
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 April 2023
1,896,372
Valuation changes
(252,256)
At 31 March 2024
1,644,116
Carrying amount
At 31 March 2024
1,644,116
At 31 March 2023
1,896,372
Movements in fixed asset investments
Company
Shares in subsidiaries
Loans to subsidiaries
Other investments
Total
£
£
£
£
Cost or valuation
At 1 April 2023
32,963,020
347,937
1,896,372
35,207,329
Valuation changes
(724,549)
-
(252,256)
(976,805)
At 31 March 2024
32,238,471
347,937
1,644,116
34,230,524
Carrying amount
At 31 March 2024
32,238,471
347,937
1,644,116
34,230,524
At 31 March 2023
32,963,020
347,937
1,896,372
35,207,329
15
Subsidiaries
Details of the company's subsidiaries at 31 March 2024 are as follows:
Country of
Class of
Name of undertaking
registration
shares held
% Held
Trading companies
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
15
Subsidiaries
(Continued)
- 24 -
Cyclomatic Limited
England
Ordinary shares
100%
Finchley Developments C&G No 2 Limited
England
Ordinary shares
100%
Investment companies
Anglo-European Developments GB Limited
England
Ordinary shares
100%
Bourne End Business Centre Limited
England
Ordinary shares
100%
Chilcomb Limited
England
Ordinary shares
100%
Chilmark Estates Limited
England
Ordinary shares
100%
Finchley Developments C & G Limited
England
Ordinary shares
100%
Pressmile Limited
England
Ordinary shares
100%
Reedrent Limited
England
Ordinary shares
100%
Dormant and nominee companies
Bremysyde Properties Limited
England
Ordinary shares
100%
Cavendish Land Managers Fund Limited
England
Ordinary shares
100%
C&G Finchley Limited
England
Ordinary shares
100%
Clementine Court Limited
England
Ordinary shares
100%
J.W.Colman Estate Company Limited
England
Ordinary shares
100%
Hallplex Limited
England
Ordinary shares
100%
Larkswell Limited
England
Ordinary shares
100%
Metropolitan Factory Conversions Limited
England
Ordinary shares
100%
Nova Holdings (Salisbury) Limited
England
Ordinary shares
100%
Preference shares
99%
Novaview Properties Limited
England
Ordinary shares
100%
Sansprine Limited
England
Ordinary shares
100%
Stonetower Limited
England
Ordinary shares
100%
Tabman Limited
England
Ordinary shares
100%
The company also holds the following significant interest:
Other unquoted investments
Cavendish & Gloucester Properties Limited
England
Ordinary shares
12.80%
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Stock of properties
15,572,123
17,831,333
9,144,479
11,445,200
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
507,612
447,256
163,985
213,854
Amounts owed by group undertakings
-
-
13,033,210
11,771,195
Other debtors
1,591,227
3,027,409
1,038,483
2,427,858
Prepayments and accrued income
1,000,828
1,198,325
40,461
76,172
3,099,667
4,672,990
14,276,139
14,489,079
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
20
3,081,696
3,074,347
181,120
173,771
Trade creditors
161,893
292,715
52,185
84,826
Amounts owed to group undertakings
15,218,931
15,783,489
Amounts owed to joint property participants
3,553,818
4,089,240
727,261
1,529,483
Other taxation and social security
117,502
152,225
11,270
21,273
Other creditors
1,358,374
1,712,207
992,052
1,365,463
Accruals and deferred income
989,448
993,948
290,235
264,335
9,262,731
10,314,682
17,473,054
19,222,640
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
36,170,310
37,262,891
5,819,613
6,008,081
Other borrowings
20
10,000,000
8,250,000
4,500,000
2,750,000
46,170,310
45,512,891
10,319,613
8,758,081
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
39,252,006
40,337,238
6,000,733
6,181,852
Other loans
10,000,000
8,250,000
4,500,000
2,750,000
49,252,006
48,587,238
10,500,733
8,931,852
Payable within one year
3,081,696
3,074,347
181,120
173,771
Payable after one year
46,170,310
45,512,891
10,319,613
8,758,081
The bank loans are secured by way of legal charges over properties owned by the group.
The other loans are secured against some of the group's investment properties.
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Tax losses
(311,872)
302,553
Investment property
1,236,000
1,228,000
924,128
1,530,553
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
1,530,553
-
Credit to profit or loss
(606,425)
-
Liability at 31 March 2024
924,128
-
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
17,754
18,340
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.
23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
3,000,000
3,000,000
3,000,000
3,000,000
24
Share premium account
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning and end of the year
12,500
12,500
12,500
12,500
25
Profit and loss reserves
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
31,625,671
30,442,167
30,955,097
30,455,103
Profit/(loss) for the year
(3,574,737)
1,183,504
(3,080,906)
499,994
At the end of the year
28,050,934
31,625,671
27,874,191
30,955,097
26
Non-controlling interests
£
At 1 April 2023 and 31 March 2024
99
27
Pension commitments
The group operates a self administered scheme in respect of one director and an auto-enrolment scheme for employees. The total contributions made by the group during the year amounted to £17,629 (2023: £16,082).
28
Related party disclosures
(i) Included under other debtors / other creditors are amounts due from / to the following related parties:
Group
Group
Company
Company
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
28
Related party disclosures
(Continued)
- 28 -
2024
2023
2024
2023
£
£
£
£
Due to/(from) Cavendish & Gloucester Properties Limited
(755,656)
644,167
(755,656)
644,167
Due to/(from) Enterprise Properties Limited
-
(2,336,490)
-
(2,336,490)
The amounts above are unsecured and interest free. Both Enterprise Properties Limited and Cavendish & Gloucester Properties Limited are under the ultimate control of the director, P L Murphy.
(ii) Included under turnover are management fees receivable from the following related parties:
Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£
Troutbourne LLP
14,033
7,440
14,033
7,440
The KCG Pension Fund
19,820
20,528
19,820
20,528
Bourne End (Investments) Limited is a member of Troutbourne LLP. Bourne End (Investments) Limited is a wholly owned subsidiary of Enterprise Properties Limited. The director, P L Murphy is a trustee and a member of The KCG Pension Fund.
(iii) Trade debtors includes £30,000 (2023: £155,423) due from Drivers & Norris Limited in respect of management fees charged to that company in earlier years. Drivers & Norris Limited is under the control of P L Murphy by virtue of his beneficial interest in that company.
(iv) Group turnover includes £56,000 (2023: £56,000) in respect of rents receivable from Roundpoll Limited. Roundpoll Limited is a wholly owned subsidiary of Cavendish & Gloucester Properties Limited. Administrative expenses includes £134,083 (2023: £156,250) in respect of rents payable to Cavendish & Gloucester Properties Ltd and its subsidiaries, and £25,000 (2023: £16,330) of rent payable to The KCG Pension Fund.
(v) Joint property participants' share of profits includes profits / (losses) attributable to the following related parties:
Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£
Mountheed Limited
103,835
81,167
-
-
M 25 Group Limited
(20,808)
4,379
(26,741)
(259)
P Murphy Children's Trust
(335,762)
5,904
(347,629)
(3,372)
Reachdrum Limited
14,834
11,595
-
-
Amounts due to related joint property participants comprise the following balances:
Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£
Mountheed Limited
958,464
1,025,614
-
-
M 25 Group Limited
84,624
105,432
24,242
50,983
P Murphy Children's Trust
417,226
771,473
315,147
662,776
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
28
Related party disclosures
(Continued)
- 29 -
Reachdrum Limited
138,245
146,517
-
-
Mountheed Limited is a wholly owned subsidiary of M 25 Group Limited, which in turn is a wholly owned subsidiary of Enterprise Properties Limited.
Reachdrum Limited is under the control of the director M Slane by virtue of his beneficial interest in that company.
(vi) The company is a participant in a joint property project managed by Cavendish & Gloucester Properties Limited. At the balance sheet date the company had £80,118 (2023: £67,111) invested in the project and its share of profit for the year from the joint property project was £13,007 (2023: loss £3,783).
(vii) The loan from the company pension scheme is from The KCG Pension Fund which is secured by a legal charge over properties owned by the group and is repayable at end of 2026. Interest is chargeable at 2% plus Bank of England base rate per annum.
29
Ultimate controlling party
The company is under the control of the director, P L Murphy, by virtue of his beneficial interest in the company.
30
Cash generated from/(absorbed by) group operations
2024
2023
£
£
(Loss)/profit for the year after tax
(3,574,737)
1,183,504
Adjustments for:
Share of results of associates and joint ventures
(169,825)
207,870
Taxation credited
(606,425)
(6,173)
Finance costs
3,484,126
2,719,063
Investment income
(134,358)
Fair value loss/(gain) on investment properties
924,075
(1,190,332)
Amortisation and impairment of intangible assets
77,344
77,344
Depreciation and impairment of tangible fixed assets
1,054
1,406
Gain on sale of investments
-
(265,739)
Movements in working capital:
Decrease in stocks
2,259,210
179,510
Decrease/(increase) in debtors
1,573,323
(2,189,347)
Decrease in creditors
(1,059,300)
(3,283,793)
Cash generated from/(absorbed by) operations
2,908,845
(2,701,045)
MFC ESTATES PLC AND SUBSIDIARY COMPANIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
31
Cash absorbed by operations - company
2024
2023
£
£
(Loss)/profit for the year after tax
(3,080,906)
499,994
Adjustments for:
Share of results of associates and joint ventures
(385,894)
(562,050)
Taxation credited
(281,121)
(132,870)
Finance costs
737,961
480,113
Investment income
(134,357)
Depreciation and impairment of tangible fixed assets
1,054
1,406
Other gains and losses
174,583
(523,477)
Movements in working capital:
Decrease in stocks
2,300,721
-
Decrease/(increase) in debtors
212,940
(13,727,049)
(Decrease)/increase in creditors
(954,713)
12,547,561
Cash absorbed by operations
(1,275,375)
(1,550,729)
32
Analysis of changes in net debt - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
1,664,610
293,474
1,958,084
Borrowings excluding overdrafts
(48,587,238)
(664,768)
(49,252,006)
(46,922,628)
(371,294)
(47,293,922)
33
Analysis of changes in net debt - company
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
802,493
222,560
1,025,053
Borrowings excluding overdrafts
(8,931,852)
(1,568,881)
(10,500,733)
(8,129,359)
(1,346,321)
(9,475,680)
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