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Registered number: 02645633









MJF GROUP LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
MJF GROUP LIMITED
 
 
COMPANY INFORMATION


Directors
C M Jennings 
J M Power 
A B Power 




Company secretary
C M Jennings



Registered number
02645633



Registered office
112-114 Goswell Road
London

EC1V 7DH




Independent auditor
Barnes Roffe LLP
Chartered Accountants 
Statutory Auditor

Leytonstone House

Leytonstone

London

E11 1GA




Bankers
NatWest




Solicitors
IBB
Capital Court

30 Windsor Street

Uxbridge

Middlesex

UB8 1AB





 
MJF GROUP LIMITED
 

CONTENTS



Page
Strategic report
 
1
Directors' report
 
2 - 3
Independent auditor's report
 
4 - 7
Statement of comprehensive income
 
8
Balance sheet
 
9 - 10
Statement of changes in equity
 
11
Notes to the financial statements
 
12 - 24


 
MJF GROUP LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report of the company for the year ended 31 December 2023.
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

Business review
 
The directors have considered the profit achieved on ordinary activities before taxation to be in line with expectations due to the principal activity of the company within the group.
At the year end the directors consider the company to be in a sound position for future trading.

Principal risks and uncertainties
 
The directors do not consider there to be any principal risks and uncertainties in respect of the principal activity of the company.

Financial key performance indicators
 
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the Company as a whole, these being turnover and operating profit.
Overall turnover increased by 9.9% in comparison to 2022 with an operating profit during the year of £349k (2022: £329k).
 
Profit before tax was £238k (2022: £224k). The profit added to reserves was £250k (2022: £208k). No dividends were paid (2022: £Nil).


This report was approved by the board on 26 September 2024 and signed on its behalf.



J M Power
Director

Page 1

 
MJF GROUP LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activities of the Company are that of a holding Company and the provision of assets for use by the subsidiary undertakings.

Results and dividends

The profit for the year, after taxation, amounted to £250,406 (2022 - £207,944).

No dividends will be distributed for the year ended 31 December 2023.

Directors

The directors who served during the year were:

C M Jennings 
J M Power 
A B Power 

Future developments

The directors do not believe that the business will change significantly in the foreseeable future.

Page 2

 
MJF GROUP LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

This report was approved by the board on 26 September 2024 and signed on its behalf.
 





J M Power
Director

Page 3

 
MJF GROUP LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MJF GROUP LIMITED
 

Opinion


We have audited the financial statements of MJF Group Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Page 4

 
MJF GROUP LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MJF GROUP LIMITED (CONTINUED)


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 ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the 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 set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 5

 
MJF GROUP LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MJF GROUP LIMITED (CONTINUED)


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:

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 directors and other management, and from our commercial knowledge and experience of the relevant sector, including Companies Act 2006;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
laws and regulations identified were communicated with 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:
 
reviewed the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations; and
performed analytical procedures and tested journal entries to identify any unusual or unexpected relationships or transactions.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial statements, 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.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.


Page 6

 
MJF GROUP LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MJF GROUP LIMITED (CONTINUED)


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 2006Our 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.





Gary H Leonard (Senior statutory auditor) 
for and on behalf of
Barnes Roffe LLP
Chartered Accountants
Statutory Auditor
Leytonstone House
Leytonstone
London
E11 1GA

26 September 2024
Page 7

 
MJF GROUP LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
1,154,000
1,050,000

Gross profit
  
1,154,000
1,050,000

Administrative expenses
  
(804,861)
(720,866)

Operating profit
  
349,139
329,134

Interest receivable and similar income
 7 
76,163
14,582

Interest payable and similar expenses
 8 
(187,534)
(119,428)

Profit before tax
  
237,768
224,288

Tax on profit
 9 
12,638
(16,344)

Profit for the financial year
  
250,406
207,944

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 12 to 24 form part of these financial statements.

Page 8

 
MJF GROUP LIMITED
REGISTERED NUMBER: 02645633

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 10 
10,723,207
10,979,531

Investments
 11 
158,375
158,375

  
10,881,582
11,137,906

Current assets
  

Debtors: amounts falling due within one year
 12 
2,215,319
1,574,469

Cash at bank and in hand
 13 
40,965
44,483

  
2,256,284
1,618,952

Creditors: amounts falling due within one year
 14 
(5,135,128)
(4,991,888)

Net current liabilities
  
 
 
(2,878,844)
 
 
(3,372,936)

Total assets less current liabilities
  
8,002,738
7,764,970

Provisions for liabilities
  

Deferred tax
 15 
(308,707)
(321,345)

  
 
 
(308,707)
 
 
(321,345)

Net assets
  
7,694,031
7,443,625


Capital and reserves
  

Called up share capital 
 16 
100
100

Revaluation reserve
  
3,643,191
3,708,531

Profit and loss account
  
4,050,740
3,734,994

  
7,694,031
7,443,625


Page 9

 
MJF GROUP LIMITED
REGISTERED NUMBER: 02645633
    
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 26 September 2024.




J M Power
Director

The notes on pages 12 to 24 form part of these financial statements.

Page 10

 
MJF GROUP LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
100
3,773,871
3,461,710
7,235,681


Comprehensive income for the year

Profit for the year
-
-
207,944
207,944
Total comprehensive income for the year
-
-
207,944
207,944

Transfer to/from profit and loss account
-
(65,340)
65,340
-


Total transactions with owners
-
(65,340)
65,340
-



At 1 January 2023
100
3,708,531
3,734,994
7,443,625


Comprehensive income for the year

Profit for the year
-
-
250,406
250,406
Total comprehensive income for the year
-
-
250,406
250,406

Transfer to/from profit and loss account
-
(65,340)
65,340
-


Total transactions with owners
-
(65,340)
65,340
-


At 31 December 2023
100
3,643,191
4,050,740
7,694,031


The notes on pages 12 to 24 form part of these financial statements.

Page 11

 
MJF GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

MJF Group Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

Monetary amounts in these financial statements are stated in pounds sterling, the functional and presentational currency of the Company, and are rounded to the nearest whole £1.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of MJF UK Holdings Limited as at 31 December 2023 and these financial statements may be obtained from 112-114 Goswell Road, London, EC1V 7DH..

 
2.3

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

Page 12

 
MJF GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Going concern

MJF Group Limited is in a net current liability position at the year end, due to amounts owed to the parent company which were initially borrowed to finance the purchase of properties. A letter of support has been obtained from the parent company to confirm that they will not demand repayment of the loan in the foreseeable future, unless the financial position of MJF Group Limited permits repayment. As a result the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.

 
2.5

Revenue

Turnover comprises revenue recognised by the company in respect of management fees charged to group companies and rents receivable. Turnover is recognised in the period which the management charges and rent are incurred.

 
2.6

Operating leases: the Company as lessor

Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 13

 
MJF GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property and improvements
-
2% straight line
Fixtures and fittings
-
12.5% to 33% straight line
Office equipment
-
33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 14

 
MJF GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment.

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.16

Creditors

Short-term creditors are measured at the transaction price.

 
2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 15

 
MJF GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.18

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument.

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

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
 

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate
Page 16

 
MJF GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.18
Financial instruments (continued)

method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial liabilities

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


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements and estimates in determining the carrying amounts of certain assets and liabilities. Management makes assumptions of the effects of uncertain future events on those assets and liabilities at the balance sheet date. The management's estimates and assumptions are based on historical experience and expectation of future events and are reviewed periodically.
Judgements in applying accounting policies
The Company does not consider there to be any critical judgements in applying accounting policies.
Accounting judgements and estimation
Useful economic lives of tangible fixed assets
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates and the physical condition of the assets.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Management charges
267,000
255,000

Rent receivable
887,000
795,000

1,154,000
1,050,000


All turnover arose within the United Kingdom.

Page 17

 
MJF GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
202,090
203,612

Social security costs
34,673
36,014

Cost of defined contribution scheme
16,792
17,344

253,555
256,970


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Admin
6
6


6.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
21,505
21,593



7.


Interest receivable and similar income

2023
2022
£
£


Other interest
76,163
14,582


8.


Interest payable and similar expenses

2023
2022
£
£


Bank interest
187,534
119,428

Page 18

 
MJF GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
-
16,344


Total current tax
-
16,344

Deferred tax


Origination and reversal of timing differences
(12,638)
-

Total deferred tax
(12,638)
-


Tax on profit
(12,638)
16,344


The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
237,768
224,288


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
59,442
42,615

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
113
-

Depreciation for year in excess of capital allowances
60,600
44,443

Other differences leading to a decrease in the tax charge
(12,638)
(21,475)

Group relief
(120,155)
(49,239)

Total tax charge for the year
(12,638)
16,344


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 19

 
MJF GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Tangible fixed assets





Freehold property
Fixtures and fittings
Office equipment
Total

£
£
£
£



Cost or valuation


At 1 January 2023
12,536,477
507
38,857
12,575,841


Additions
-
-
1,250
1,250



At 31 December 2023

12,536,477
507
40,107
12,577,091



Depreciation


At 1 January 2023
1,570,083
155
26,072
1,596,310


Charge for the year on owned assets
247,843
169
9,562
257,574



At 31 December 2023

1,817,926
324
35,634
1,853,884



Net book value



At 31 December 2023
10,718,551
183
4,473
10,723,207



At 31 December 2022
10,966,394
352
12,785
10,979,531

The carrying amount of investment property, which the Company rents to another group entity when it has chosen to account for such properties using the cost model is £10,718,551 (2022 - £10,966,394)

Cost or valuation at 31 December 2023 is as follows:

Land and buildings
£


At cost
9,269,497
At valuation:

Open market - previous valuations
3,266,980



12,536,477

Page 20

 
MJF GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           10.Tangible fixed assets (continued)

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2023
2022
£
£



Cost
9,269,497
9,269,497

Accumulated depreciation
(2,528,374)
(2,346,959)

Net book value
6,741,123
6,922,538


11.


Fixed asset investments





Investments in subsidiary companies

£



Cost


At 1 January 2023
158,375



At 31 December 2023
158,375





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

MJF Interdec Limited
Dormant
Ordinary
76%
MJF Interiors Limited
Offices Services
Ordinary
82.5%
MJF International Limited
Dormant
Ordinary
100%
MJF Business Services Limited
Offices Services
Ordinary
100%
MJF City Limited
Dormant
Ordinary
82.5%
Redd Projects Limited
Dormant
Ordinary
90%

The registered office of the subsidiary undertakings is 112-114 Goswell Road, London, England, EC1V 7DH.

Page 21

 
MJF GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Debtors

2023
2022
£
£


Amounts owed by group undertakings
2,010,825
1,415,237

Other debtors
133,832
100,915

Prepayments and accrued income
70,662
58,317

2,215,319
1,574,469



13.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
40,965
44,483



14.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
51,294
45,427

Amounts owed to group undertakings
5,018,404
4,940,744

Accruals and deferred income
65,430
5,717

5,135,128
4,991,888


There is a mortgage debenture secured on the assets of MJF UK Holdings Limited and its subsidiary undertakings. As at 31 December 2023, MJF UK Holdings and its subsidiary undertakings had secured loans outstanding of £954,262 (2022: £3,788,041).

Page 22

 
MJF GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Deferred taxation




2023
2022


£

£






At beginning of year
(321,345)
(318,705)


Charged to profit or loss
-
(2,640)


Utilised in year
12,638
-



At end of year
(308,707)
(321,345)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(308,707)
(321,345)

(308,707)
(321,345)


16.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



100 (2022 - 100) Ordinary shares of £1.00 each
100
100



17.


Reserves

Revaluation reserve

The revaluation reserve represents the cumulative revaluation of freehold property, net of deferred tax.

Profit and loss account

The profit and loss account represents cumulative profit or losses, net of dividends and other adjustments.


18.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £16,792 (2022 - £17,344). Contributions totalling £Nil (2022 - £Nil) were payable to the fund at the balance sheet date and are included in creditors.

Page 23

 
MJF GROUP LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments receivable under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
916,274
650,000

Later than 1 year and not later than 5 years
2,788,005
2,373,250

Later than 5 years
1,666
-

3,705,945
3,023,250

Lease receivable payments recognised as ‘Rent receivable’ in the period were £887,000 (2022: £795,000).
The Company had no commitments payable under non-cancellable operating leases at the balance sheet date.


20.


Related party transactions

The Company discloses transactions with related parties which are not wholly owned within the same Group. It does not disclose transactions with members of the same group that are wholly owned.
Transactions with group companies are not disclosed by virtue of the exemption claimed under FRS102 paragraph 33.1A. The group publishes consolidated accounts.


21.


Controlling party

The Company's immediate parent undertaking company is MJF UK Holdings Limited, a company incorporated in England and Wales.
The smallest group in which the results of the company are consolidated is that headed by MJF UK Holdings Limited. The consolidated accounts of this MJF UK Holdings Limited are available from its registered office, 112-114 Goswell Road, London, England, EC1V 7DH. 
The company's ultimate parent undertaking is MJF Interiors Group Limited, a company based in Ireland. Copies of the group accounts are available from its registered office, Clonlara Avenue, Baldonnel Business Park, Baldonnel, Dublin 22.
The ultimate controlling party is J M Power.

 
Page 24