Company registration number 11665426 (England and Wales)
MORVERN GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
MORVERN GROUP LIMITED
COMPANY INFORMATION
Directors
J H Freimund
I Simpson
J Steen
K Steffens
P A Lewis
(Appointed 19 January 2023)
M Urch
(Appointed 1 April 2024)
Secretary
P McGreevy
Company number
11665426
Registered office
Morvern House
Ormonde Drive
Denby
Ripley
Derbyshire
DE5 8LE
Auditor
UHY Hacker Young
14 Park Row
Nottingham
NG1 6GR
MORVERN GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10 - 11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 35
MORVERN GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
The group's turnover increased to £12,073,637 (2022 - £8,716,695). EBITDA for the year is report at £1,151,918 (2022 - £949,980). The group's share of the loss after tax for the year is reported at £380,864 (2022 - loss of £120,655).
The recovery that started in 2022 in the Aerospace sector continued into 2023. The IGT sector remained strong and the outlook for both sectors remains very positive.
The group entered the ceramic core manufacturing market in January 2023. The first year of any start up business is always challenging but the group is starting to see the benefit of the investment made in a modern ceramic core manufacturing facility. The group enters 2024 in a strong position having introduced and developed many new products in the year. We expect the company be profitable by the end of 2024.
Principal risks and uncertainties
The principal risks to the business are those associated with the UK economy of constrained capacity and high interest rates. It is a challenging environment to recruit the necessary staff to meet increasing demand and high interest rates have also impacted the business. However, the company has been successful in its recruitment campaigns and is meeting our customers’ requirements. Strong cash generation in 2023 is reducing debt and therefore the impact of interest rate increases.
Key performance indicators
The group considers EBITDA, the order book and the cash position to be the Key Performance Indicators
(KPIs). EBITDA has shown considerable improvement in the last 12 months and we are now performing above pre-Covid levels. With a strong order book this trend is forecast to continue into 2025.
P A Lewis
Director
24 September 2024
MORVERN GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activities of the group was that of a holding company formed to build a group of businesses in specialist technologies across a range of industries including aerospace, industrial and automotive.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
N J France
(Resigned 2 February 2024)
J H Freimund
M Holland
(Resigned 6 March 2023)
S Roe
(Resigned 11 January 2023)
I Simpson
J Steen
K Steffens
P Schack
(Resigned 27 January 2023)
P A Lewis
(Appointed 19 January 2023)
M Urch
(Appointed 1 April 2024)
Financial instruments
Liquidity risk
The group monitors its cash flow on a daily basis as part of its normal control procedures.
Interest rate risk
The group is exposed to interest rate risk as a result of the finance lease obligations and bank loans in place which are reviewed regularly and kept to a minimum.
Foreign currency risk
The group is exposed to foreign exchange risk as a result of trading in foreign currencies. To mitigate this risk the group has bank accounts in currencies other than GBP.
Credit risk
The group's principal financial assets are bank balances and trade debtors. The group’s credit risk is primarily attributable to its trade debtors. The group undertakes credit checks and monitoring as appropriate and has no significant concentration of uninsured credit risk.
MORVERN GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Acquisition of own shares
On 11 January 2023, the group repurchased 950 Ordinary Shares of £1 nominal value each, which were subsequently cancelled. The consideration paid was £23.19 per share which in total was £22,033. These shares represented 9.5% of the total issued share capital of the parent company, at the time of purchase. The shares were repurchased as part of a settlement with a previous director/ shareholder and were originally acquired for £22,033, being the same value as the company paid to repurchase the shares. The nominal value of the shares repurchased and cancelled are now held within a capital redemption reserve within equity,
Prior period adjustment
Consolidated goodwill has been reviewed and restated in the prior year, see note 27 for further details.
Auditor
The auditor, UHY Hacker Young, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of 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 ;
prepare the 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.
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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
MORVERN GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
P A Lewis
Director
24 September 2024
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MORVERN GROUP LIMITED
- 5 -
Opinion
We have audited the financial statements of Morvern Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 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 December 2023 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.
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.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MORVERN GROUP LIMITED
- 6 -
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
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.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MORVERN GROUP LIMITED
- 7 -
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.
Based on our understanding of the Company and the industry in which it operates we assessed the risks of the Company acting contrary to complying with laws and regulations, including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the Financial Statements, such as the Companies Act 2006. We evaluated management’s opportunities for fraudulent manipulation of the Financial Statements (including the risk of override of controls), and determined that the principal risks were related to inflated revenue and profit.
Audit procedures performed included:
review of the financial statement disclosures to underlying supporting documentation;
enquiries of management;
testing of recoverability of trade and other debtors
testing the completeness of trade and other creditors
testing revenue cut-off
testing of journals; and
evaluating whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the Financial Statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MORVERN GROUP LIMITED
- 8 -
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.
Andrew Timms (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young
26 September 2024
Chartered Accountants
Statutory Auditor
MORVERN GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
as restated
Notes
£
£
Turnover
3
12,073,637
8,716,695
Cost of sales
(7,962,485)
(6,132,805)
Gross profit
4,111,152
2,583,890
Administrative expenses
(4,146,460)
(2,672,398)
Other operating income
-
111,750
Operating (loss)/profit
4
(35,308)
23,242
Interest receivable and similar income
7
46
Interest payable and similar expenses
8
(678,012)
(507,615)
Loss before taxation
(713,274)
(484,373)
Tax on loss
9
150,596
363,718
Loss for the financial year
24
(562,678)
(120,655)
Loss for the financial year is attributable to:
- Owners of the parent company
(380,864)
(120,655)
- Non-controlling interests
(181,814)
-
(562,678)
(120,655)
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(380,864)
(120,655)
- Non-controlling interests
(181,814)
-
(562,678)
(120,655)
MORVERN GROUP LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
10
1,843,464
2,227,588
Other intangible assets
10
256,622
180,363
Total intangible assets
2,100,086
2,407,951
Tangible assets
11
4,266,747
3,632,093
6,366,833
6,040,044
Current assets
Stocks
15
105,083
96,579
Debtors
16
3,556,179
3,379,445
Cash at bank and in hand
359,525
62,285
4,020,787
3,538,309
Creditors: amounts falling due within one year
17
(9,012,427)
(7,861,777)
Net current liabilities
(4,991,640)
(4,323,468)
Total assets less current liabilities
1,375,193
1,716,576
Creditors: amounts falling due after more than one year
18
(2,035,378)
(2,102,120)
Provisions for liabilities
Deferred tax liability
21
168,818
99,284
(168,818)
(99,284)
Net liabilities
(829,003)
(484,828)
Capital and reserves
Called up share capital
23
9,586
10,000
Capital redemption reserve
24
950
Profit and loss reserves
24
(897,725)
(494,828)
Equity attributable to owners of the parent company
(887,189)
(484,828)
Non-controlling interests
58,186
-
(829,003)
(484,828)
MORVERN GROUP LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 24 September 2024 and are signed on its behalf by:
24 September 2024
P A Lewis
Director
Company registration number 11665426 (England and Wales)
MORVERN GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Investments
12
5,634,391
5,274,451
Current assets
Debtors
16
1,414,787
1,839,071
Cash at bank and in hand
32,342
494
1,447,129
1,839,565
Creditors: amounts falling due within one year
17
(5,613,509)
(5,245,753)
Net current liabilities
(4,166,380)
(3,406,188)
Total assets less current liabilities
1,468,011
1,868,263
Creditors: amounts falling due after more than one year
18
(546,634)
(1,015,116)
Net assets
921,377
853,147
Capital and reserves
Called up share capital
23
9,586
10,000
Capital redemption reserve
24
950
Profit and loss reserves
24
910,841
843,147
Total equity
921,377
853,147
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £89,727 (2022 - £195,454 profit).
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 24 September 2024 and are signed on its behalf by:
24 September 2024
P A Lewis
Director
Company registration number 11665426 (England and Wales)
MORVERN GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
10,000
(374,173)
(364,173)
-
(364,173)
Year ended 31 December 2022:
Loss and total comprehensive income
-
-
(120,655)
(120,655)
-
(120,655)
Balance at 31 December 2022
10,000
(494,828)
(484,828)
(484,828)
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
(380,864)
(380,864)
(181,814)
(562,678)
Issue of share capital
23
536
-
-
536
-
536
Redemption of shares
23
-
950
-
950
-
950
Reduction of shares
23
(950)
-
-
(950)
-
(950)
Transfers
-
-
(22,033)
(22,033)
-
(22,033)
Purchase of shares in subsidiary from non-controlling interest
-
-
-
-
240,000
240,000
Balance at 31 December 2023
9,586
950
(897,725)
(887,189)
58,186
(829,003)
MORVERN GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
10,000
647,693
657,693
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
195,454
195,454
Balance at 31 December 2022
10,000
843,147
853,147
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
89,727
89,727
Issue of share capital
23
536
-
-
536
Redemption of shares
23
-
950
-
950
Reduction of shares
23
(950)
-
-
(950)
Transfers
-
-
(22,033)
(22,033)
Balance at 31 December 2023
9,586
950
910,841
921,377
MORVERN GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
2,157,335
183,737
Interest paid
(318,074)
(168,199)
Income taxes refunded
299,966
27,190
Net cash inflow from operating activities
2,139,227
42,728
Investing activities
Purchase of tangible fixed assets
(587,331)
(34,864)
Proceeds from disposal of tangible fixed assets
-
2,333
Interest received
46
Net cash used in investing activities
(587,285)
(32,531)
Financing activities
Proceeds from issue of shares
536
-
Proceeds from issue of loan notes
133,402
-
Repayment of loan notes
(125,000)
-
Proceeds from new bank loans
-
1,611,391
Repayment of bank loans
(908,466)
(1,527,138)
Payment of finance leases obligations
(595,174)
(197,374)
Purchase of shares in subsidiary by non-controlling interest
240,000
-
Net cash used in financing activities
(1,254,702)
(113,121)
Net increase/(decrease) in cash and cash equivalents
297,240
(102,924)
Cash and cash equivalents at beginning of year
62,285
165,209
Cash and cash equivalents at end of year
359,525
62,285
MORVERN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information
Morvern Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Morvern House, Ormonde Drive, Denby, Ripley, Derbyshire, DE5 8LE.
The group consists of Morvern Group Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures; and
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
1.2
Basis of consolidation
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Investments in subsidiaries are accounted for at cost less impairment.
MORVERN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
The consolidated group financial statements consist of the financial statements of the parent company Morvern Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Tarpey-Harris Limited has been included in the group financial statements using the purchase method of accounting. Accordingly, the group profit and loss account and statement of cash flows include the results and cash flows of Tarpey-Harris Limited from its acquisition. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.
The group profit and loss account and statement of cash flows also include the results and cash flows of Altaras International Worcester Limited from its indirect acquisition.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.5
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.
MORVERN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Development costs
1 - 2 years
Customer relationship intangibles
7 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:
Leasehold land and buildings
10 to 20 years
Plant and machinery
3 to 10 years
Fixtures, fittings and equipment
3 to 5 years
Motor vehicles
5 years
Tangible fixed assets are not depreciated in the month of acquisition but are depreciated in subsequent months unless the asset is not fully operational. Tangible fixed assets are depreciated in the month of disposal.
1.8
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
MORVERN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
1.10
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.
1.11
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
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. Trade creditors are recognised initially at transaction price.
1.12
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 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.
MORVERN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
MORVERN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
9,239,735
7,046,090
European Union
283,785
17,955
Rest of the World
2,550,117
1,652,650
12,073,637
8,716,695
2023
2022
£
£
Other revenue
Interest income
46
-
MORVERN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
4
Operating (loss)/profit
2023
2022
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(188,459)
(151,128)
Research and development costs
(166,439)
-
Depreciation of owned tangible fixed assets
561,908
281,363
Depreciation of tangible fixed assets held under finance leases
151,014
297,258
Loss/(profit) on disposal of tangible fixed assets
8,130
(775)
Amortisation of intangible assets
474,304
348,117
Operating lease charges
623,750
351,246
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Administration
16
6
-
-
Selling and distribution
6
3
-
-
Production (including management)
139
118
7
7
Total
161
127
7
7
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
6,176,269
4,351,528
Social security costs
455,036
422,373
-
-
Pension costs
207,136
220,471
6,838,441
4,994,372
MORVERN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
840,745
609,614
Company pension contributions to defined contribution schemes
48,341
83,333
889,086
692,947
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2022 - 4).
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
174,931
153,359
Company pension contributions to defined contribution schemes
14,728
14,027
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
46
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
46
-
MORVERN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
177,725
107,890
Other interest on financial liabilities
359,938
339,225
537,663
447,115
Other finance costs:
Interest on finance leases and hire purchase contracts
127,434
60,500
Other interest
12,915
-
Total finance costs
678,012
507,615
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(220,099)
(149,077)
Adjustments in respect of prior periods
(31)
(45,514)
Total current tax
(220,130)
(194,591)
Deferred tax
Origination and reversal of timing differences
69,534
(169,127)
Total tax credit
(150,596)
(363,718)
The 23.52% rate used in these accounts is a hybrid rate due to the main rate of corporation tax having increased from 19.00% to 25.00% from 1 April 2023. The differences are explained below:
MORVERN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 25 -
The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Loss before taxation
(713,274)
(484,373)
Expected tax credit based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
(167,762)
(92,031)
Tax effect of expenses that are not deductible in determining taxable profit
3,865
3,221
Adjustments in respect of prior years
(31)
(45,514)
Effect of change in corporation tax rate
13,657
(69,279)
Permanent capital allowances in excess of depreciation
(63)
Amortisation on assets not qualifying for tax allowances
111,556
66,143
Research and development tax credit
(115,122)
(222,222)
Other non-reversing timing differences
4,704
Super-deduction
(1,400)
(4,036)
Taxation credit
(150,596)
(363,718)
MORVERN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
10
Intangible fixed assets
Group
Goodwill
Development costs
Customer relationship intangibles
Total
£
£
£
£
Cost
At 1 January 2023
3,843,569
736,263
4,579,832
Additions
166,439
166,439
At 31 December 2023
3,843,569
166,439
736,263
4,746,271
Amortisation
At 1 January 2023
1,615,981
555,900
2,171,881
Amortisation charged for the year
384,124
90,180
474,304
At 31 December 2023
2,000,105
646,080
2,646,185
Carrying amount
At 31 December 2023
1,843,464
166,439
90,183
2,100,086
At 31 December 2022
2,227,588
180,363
2,407,951
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
Consolidated goodwill has been reviewed and restated in the prior year, see note 27 for further details.
MORVERN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
11
Tangible fixed assets
Group
Leasehold land and buildings
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
431,281
6,595,790
574,061
7,601,132
Additions
84,503
1,017,367
194,012
59,824
1,355,706
Disposals
(9,754)
(9,754)
At 31 December 2023
515,784
7,613,157
758,319
59,824
8,947,084
Depreciation and impairment
At 1 January 2023
221,270
3,260,846
486,923
3,969,039
Depreciation charged in the year
63,450
575,029
74,443
712,922
Eliminated in respect of disposals
(1,624)
(1,624)
At 31 December 2023
284,720
3,835,875
559,742
4,680,337
Carrying amount
At 31 December 2023
231,064
3,777,282
198,577
59,824
4,266,747
At 31 December 2022
210,011
3,334,944
87,138
3,632,093
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and machinery
958,079
3,810,305
Motor vehicles
51,848
1,009,927
3,810,305
-
-
MORVERN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
5,634,391
5,274,391
Investments in joint ventures
60
5,634,391
5,274,451
Movements in fixed asset investments
Company
Shares in subsidiaries and joint ventures
£
Cost or valuation
At 1 January 2023
5,274,451
Additions
359,940
At 31 December 2023
5,634,391
Carrying amount
At 31 December 2023
5,634,391
At 31 December 2022
5,274,451
13
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Tarpey-Harris Limited
England and Wales
Ordinary
100.00
-
Altaras International Worcester Limited
England and Wales
Ordinary
0
100.00
Tarpey Ceramics Limited
England and Wales
Ordinary
60.00
-
Registered office addresses (all UK unless otherwise indicated):
Morvern House, Ormonde Drive, Denby, Ripley, England, DE5 8LE
MORVERN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
14
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
3,425,399
2,885,725
n/a
n/a
Carrying amount of financial liabilities
Measured at amortised cost
10,575,424
9,690,308
n/a
n/a
As permitted by the reduced disclosure framework within FRS 102, the company has taken advantage of the exemption from disclosing the carrying amount of certain classes of financial instruments, denoted by 'n/a' above.
Included within financial assets is trade debtors and cash at bank and in hand.
Included within financial liabilities is bank loans and overdrafts, obligations under finance leases, trade creditors, directors' loan accounts and accruals and deferred income.
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
105,083
96,579
-
-
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,030,512
2,823,440
Corporation tax recoverable
220,099
309,801
Amounts owed by group undertakings
-
-
811,371
1,298,904
Other debtors
86,507
-
Prepayments and accrued income
219,061
246,204
378,000
328,000
3,556,179
3,379,445
1,189,371
1,626,904
Deferred tax asset (note 21)
225,416
212,167
3,556,179
3,379,445
1,414,787
1,839,071
MORVERN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Debtors
(Continued)
- 30 -
The trade debtors balance includes £2,603,582 (2022 - £2,744,691) which is covered by an invoice discounting arrangement. These assets have not been derecognised from the balance sheet because the company remains ultimately responsible for any unpaid balances, so the directors consider significant risks to have been retained.
Included within other debtors an invoice discounting facility of £35,362 (2022 - £nil) which is secured by way of a fixed and floating charge over the assets of the company.
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
1,139,515
1,544,137
489,996
502,746
Obligations under finance leases
20
630,849
447,706
Trade creditors
598,584
637,860
Corporation tax payable
9,867
9,867
Other taxation and social security
472,381
263,722
-
-
Other creditors
3,912,069
3,495,694
3,530,383
3,421,780
Accruals and deferred income
2,259,029
1,462,791
1,593,130
1,311,360
9,012,427
7,861,777
5,613,509
5,245,753
Included within bank loans is an invoice discounting facility of £649,519 (2022 - £1,041,391) which is secured by way of a fixed and floating charge over the assets of Tarpey-Harris Limited.
The bank loans and overdrafts has been secured over the assets of the company by way of a fixed and floating charge.
The obligations under finance leases are secured on the assets to which they relate.
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
546,634
1,015,116
546,634
1,015,116
Obligations under finance leases
20
1,488,744
1,087,004
2,035,378
2,102,120
546,634
1,015,116
MORVERN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
18
Creditors: amounts falling due after more than one year
(Continued)
- 31 -
The bank loans and overdrafts has been secured over the assets of the company by way of a fixed and floating charge.
The obligations under finance leases are secured on the assets to which they relate.
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
1,686,149
2,559,253
1,036,630
1,517,862
Payable within one year
1,139,515
1,544,137
489,996
502,746
Payable after one year
546,634
1,015,116
546,634
1,015,116
The debenture is being repaid in instalments and is due to be repaid by May 2025. The interest rate charged is 3.50% over base rate.
The Coronavirus Business Interruption loan is repayable in instalments, 13 months after draw down, and is due to be repaid by June 2026. The interest rate charged is 3.99% over base rate.
20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
722,283
490,192
In two to five years
1,653,448
1,186,201
In over five years
48,359
2,424,090
1,676,393
-
-
Less: future finance charges
(304,497)
(141,683)
2,119,593
1,534,710
MORVERN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
509,470
318,301
-
-
Tax losses
(109,266)
-
-
-
Retirement benefit obligations
(5,970)
(6,850)
-
-
Accrued loan interest
(225,416)
(212,167)
-
-
168,818
99,284
-
-
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Accrued loan interest
-
-
225,416
212,167
Group
Company
2023
2023
Movements in the year:
£
£
Liability/(Asset) at 1 January 2023
99,284
(212,167)
Charge/(credit) to profit or loss
69,534
(13,249)
Liability/(Asset) at 31 December 2023
168,818
(225,416)
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
207,136
220,471
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.
At the balance sheet date, the company owed contributions of £57,103 (2022 - £37,985).
MORVERN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
9,586
10,000
9,586
10,000
On 11 January 2023 the company repurchased 950 ordinary shares with a value of £1 per share for consideration of £22,033. On 19 January 2023 the company allotted 536 ordinary shares at par value of £1.
24
Reserves
Capital redemption reserve
This compromises the shares repurchased and subsequently cancelled by the group.
Profit and loss reserves
This compromises the opening retained earnings and the profit for the period as set out in the group and company statement of changes in equity.
25
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
409,054
189,458
-
-
Between two and five years
1,475,025
608,824
-
-
In over five years
1,225,803
-
-
-
3,109,882
798,282
-
-
MORVERN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
26
Capital commitments
Amounts contracted for but not provided in the financial statements:
Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of tangible fixed assets
-
77,180
-
-
27
Prior period adjustment
The calculation and presentation of consolidated goodwill has been reviewed by the directors. As a result, they have revised the carrying value of goodwill by £252,372 with a corresponding adjustment to other creditors of £420,621 and amortisation of £168,249. The consolidated goodwill continues to be amortised over a 10 year useful economic life, with the yearly charge now being £304,638, rather than £346,700.
28
Events after the reporting date
On 2 February 2024, the group agreed an off-market share buyback with an exiting director/ shareholder. The buyback agreement included the repurchase of 949 ordinary shares with a nominal value of £1 each and the settlement of loan notes held.
29
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Issued B loan notes
10.00
4,703,607
415,172
(199,799)
4,918,980
4,703,607
415,172
(199,799)
4,918,980
MORVERN GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
30
Cash generated from group operations
2023
2022
£
£
Loss for the year after tax
(562,678)
(120,655)
Adjustments for:
Taxation credited
(150,596)
(363,718)
Finance costs
678,012
507,615
Investment income
(46)
Loss/(gain) on disposal of tangible fixed assets
8,130
(775)
Amortisation and impairment of intangible assets
474,304
348,117
Depreciation and impairment of tangible fixed assets
712,922
578,621
Goodwill cost reassessment
420,621
-
Research and development costs capitalised
(166,439)
-
Movements in working capital:
Increase in stocks
(8,504)
(9,554)
Decrease/(increase) in debtors
469,622
(977,307)
Increase in creditors
281,987
221,393
Cash generated from operations
2,157,335
183,737
31
Analysis of changes in net debt - group
1 January 2023
Cash flows
New finance leases
31 December 2023
£
£
£
£
Cash at bank and in hand
62,285
297,240
-
359,525
Borrowings excluding overdrafts
(2,559,253)
908,466
-
(1,650,787)
Obligations under finance leases
(1,534,710)
494,026
(1,078,909)
(2,119,593)
(4,031,678)
1,699,732
(1,078,909)
(3,410,855)
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.210N J FranceJ H FreimundM HollandS RoeI SimpsonJ SteenK SteffensP SchackP A LewisM UrchP McGreevyfalsefalse11665426bus:Consolidated2023-01-012023-12-31116654262023-01-012023-12-3111665426bus:Director22023-01-012023-12-3111665426bus:Director52023-01-012023-12-3111665426bus:Director62023-01-012023-12-3111665426bus:Director72023-01-012023-12-3111665426bus:Director92023-01-012023-12-3111665426bus:Director102023-01-012023-12-3111665426bus:CompanySecretary12023-01-012023-12-3111665426bus:Director12023-01-012023-12-3111665426bus:Director32023-01-012023-12-3111665426bus:Director42023-01-012023-12-3111665426bus:Director82023-01-012023-12-3111665426bus:RegisteredOffice2023-01-012023-12-31116654262023-12-3111665426bus:Consolidated2022-01-012022-12-31116654262022-01-012022-12-3111665426bus:Consolidated2023-12-3111665426core:Goodwillbus:Consolidated2023-12-3111665426core:Goodwillbus:Consolidated2022-12-3111665426core:OtherResidualIntangibleAssetsbus:Consolidated2023-12-3111665426core:OtherResidualIntangibleAssetsbus:Consolidated2022-12-3111665426core:DevelopmentCostsCapitalisedDevelopmentExpenditurebus:Consolidated2023-12-3111665426core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2023-12-3111665426core:DevelopmentCostsCapitalisedDevelopmentExpenditurebus:Consolidated2022-12-3111665426core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2022-12-3111665426bus:Consolidated2022-12-3111665426core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2023-12-3111665426core:PlantMachinerybus:Consolidated2023-12-3111665426core:FurnitureFittingsbus:Consolidated2023-12-3111665426core:MotorVehiclesbus:Consolidated2023-12-3111665426core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-12-3111665426core:PlantMachinerybus:Consolidated2022-12-3111665426core:FurnitureFittingsbus:Consolidated2022-12-3111665426core:MotorVehiclesbus:Consolidated2022-12-3111665426core:ShareCapitalbus:Consolidated2023-12-3111665426core:ShareCapitalbus:Consolidated2022-12-3111665426core:CapitalRedemptionReservebus:Consolidated2023-12-3111665426core:CapitalRedemptionReservebus:Consolidated2022-12-3111665426core:ShareCapital2023-12-3111665426core:ShareCapital2022-12-3111665426core:CapitalRedemptionReserve2023-12-3111665426core:CapitalRedemptionReserve2022-12-3111665426core:RetainedEarningsAccumulatedLosses2023-12-3111665426core:ShareCapitalbus:Consolidated2021-12-3111665426core:CapitalRedemptionReservebus:Consolidated2021-12-31116654262021-12-3111665426core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-12-3111665426core:Non-controllingInterestsbus:Consolidated2022-12-3111665426core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-12-3111665426core:Non-controllingInterestsbus:Consolidated2023-12-3111665426core:ShareCapital2021-12-3111665426core:CapitalRedemptionReserve2021-12-3111665426core:RetainedEarningsAccumulatedLosses2021-12-3111665426core:RetainedEarningsAccumulatedLosses2022-12-31116654262022-12-3111665426core:ShareCapitalbus:Consolidated2023-01-012023-12-3111665426core:ShareCapital2023-01-012023-12-3111665426bus:Consolidated2021-12-3111665426core:Goodwill2023-01-012023-12-3111665426core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3111665426core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-01-012023-12-3111665426core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-01-012023-12-3111665426core:LandBuildingscore:LongLeaseholdAssets2023-01-012023-12-3111665426core:PlantMachinery2023-01-012023-12-3111665426core:FurnitureFittings2023-01-012023-12-3111665426core:MotorVehicles2023-01-012023-12-3111665426core:UKTaxbus:Consolidated2023-01-012023-12-3111665426core:UKTaxbus:Consolidated2022-01-012022-12-3111665426bus:Consolidated12023-01-012023-12-3111665426bus:Consolidated22023-01-012023-12-3111665426bus:Consolidated12022-01-012022-12-3111665426core:Goodwillbus:Consolidated2022-12-3111665426core:DevelopmentCostsCapitalisedDevelopmentExpenditurebus:Consolidated2022-12-3111665426core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2022-12-3111665426bus:Consolidated2022-12-3111665426core:Goodwillcore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2023-01-012023-12-3111665426core:DevelopmentCostsCapitalisedDevelopmentExpenditurecore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2023-01-012023-12-3111665426core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillcore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2023-01-012023-12-3111665426core:ExternallyAcquiredIntangibleAssetsbus:Consolidated2023-01-012023-12-3111665426core:Goodwillbus:Consolidated2023-01-012023-12-3111665426core:DevelopmentCostsCapitalisedDevelopmentExpenditurebus:Consolidated2023-01-012023-12-3111665426core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2023-01-012023-12-3111665426core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-12-3111665426core:PlantMachinerybus:Consolidated2022-12-3111665426core:FurnitureFittingsbus:Consolidated2022-12-3111665426core:MotorVehiclesbus:Consolidated2022-12-3111665426core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2023-01-012023-12-3111665426core:PlantMachinerybus:Consolidated2023-01-012023-12-3111665426core:FurnitureFittingsbus:Consolidated2023-01-012023-12-3111665426core:MotorVehiclesbus:Consolidated2023-01-012023-12-3111665426core:PlantMachinery2023-12-3111665426core:PlantMachinery2022-12-3111665426core:MotorVehicles2023-12-3111665426core:MotorVehicles2022-12-3111665426core:Subsidiary12023-01-012023-12-3111665426core:Subsidiary22023-01-012023-12-3111665426core:Subsidiary32023-01-012023-12-311166542612023-01-012023-12-3111665426core:Subsidiary112023-01-012023-12-3111665426core:Subsidiary212023-01-012023-12-3111665426core:Subsidiary312023-01-012023-12-3111665426core:CurrentFinancialInstruments2023-12-3111665426core:CurrentFinancialInstruments2022-12-3111665426core:CurrentFinancialInstrumentsbus:Consolidated2023-12-3111665426core:CurrentFinancialInstrumentsbus:Consolidated2022-12-3111665426core:WithinOneYearbus:Consolidated2023-12-3111665426core:WithinOneYearbus:Consolidated2022-12-3111665426core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3111665426core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3111665426core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-12-3111665426core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2022-12-3111665426core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3111665426core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3111665426core:Non-currentFinancialInstrumentsbus:Consolidated2023-12-3111665426core:Non-currentFinancialInstrumentsbus:Consolidated2022-12-3111665426core:Non-currentFinancialInstruments2023-12-3111665426core:Non-currentFinancialInstruments2022-12-3111665426core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-12-3111665426core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-12-3111665426core:WithinOneYear2023-12-3111665426core:WithinOneYear2022-12-3111665426core:BetweenTwoFiveYearsbus:Consolidated2023-12-3111665426core:BetweenTwoFiveYearsbus:Consolidated2022-12-3111665426core:BetweenTwoFiveYears2023-12-3111665426core:BetweenTwoFiveYears2022-12-3111665426core:MoreThanFiveYearsbus:Consolidated2023-12-3111665426core:MoreThanFiveYearsbus:Consolidated2022-12-3111665426core:MoreThanFiveYears2023-12-3111665426core:MoreThanFiveYears2022-12-3111665426bus:PrivateLimitedCompanyLtd2023-01-012023-12-3111665426bus:FRS1022023-01-012023-12-3111665426bus:Audited2023-01-012023-12-3111665426bus:ConsolidatedGroupCompanyAccounts2023-01-012023-12-3111665426bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP