Company registration number 00805676 (England and Wales)
MARSHALL AMPLIFICATION PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
MARSHALL AMPLIFICATION PLC
COMPANY INFORMATION
Directors
M Axhamre
(Appointed 28 April 2023)
J De Maillard
(Appointed 28 April 2023)
Secretary
Taylor Wessing Secretaries Limited
Company number
00805676
Registered office
Denbigh Road
Denbigh Industrial Estate
Bletchley
Milton Keynes
MK1 1DQ
Auditor
Simpson Wreford LLP
Wellesley House
Duke of Wellington Avenue
Royal Arsenal
London
SE18 6SS
Bankers
Barclays Bank Plc
Ashton House Corporate
497 Silbury Boulevard
Milton Keynes
MK9 2LD
Solicitors
Taylor Wessing
Hill House
1 Little New Street
London
EC4A 3TR
MARSHALL AMPLIFICATION PLC
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Directors' responsibilities statement
6
Independent auditor report
7 - 9
Income statement
10
Statement of financial position
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 30
Detailed profit and loss account
MARSHALL AMPLIFICATION PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report and financial statements for the year ended 31 December 2023. The strategic report only forms part of the company's annual accounts and reports.
Review of the business
Turnover fell by 26.8% or £11.5m to £31.4m. This was in part due to a decrease in royalties received of £5.4m, but also a decrease in core product sales of £6.4m.
2023 was a transitional year for the company with the acquisition of the company by Marshall Group AB, formally Zound Industries AB, with which the company already had a close operating relationship. This ongoing process is working towards modernising the company, while retaining the fundamental quality that its reputation is built upon.
As part of the new ownership structure, the previous directors were replaced with those of Marshall Group AB.
Principal risks and uncertainties
The Directors are well aware of the risks inherent in manufacturing and in the music industry generally and keep these under constant review.
Risks to staff, the public, customers and end users are negated by maintaining high quality standards in manufacture, the adoption of best practice in health and safety and the Company’s compliance with environmental and safety regulations.
Continuity of the Company’s supply chain is ensured by maintaining close links and collaboration with its suppliers both in the UK and overseas.
The distribution of Marshall products worldwide is regularly reviewed to ensure that risk is minimised.
The Company continues to set high standards of product quality, functionality, reliability and value for money in order to maintain its competitiveness.
Uncertainties of exchange rate fluctuation and the economic conditions in our export destinations pose an ongoing risk to the business but these are closely monitored by the directors to minimise the Company’s exposure as far as possible.
The conflict between Russia and Ukraine has been closely monitored by the directors, who have ceased trading with Russian suppliers and distributors. The Company puts great emphasis on operating ethically.
Marshall continue to review their processes to reduce any risk of General Data Protection Regulation (GDPR) infringement.
Development and performance
During the year, Marshall Amplification Plc became a wholly owned subsidiary of Marshall Group AB, formally Zound Industries AB. This has further strengthened ties between the two companies and has given Marshall Amplification Plc a larger network for sales and purchase opportunities, as well as a wealth of management experience.
Marshall Live Agency continues to grow the bands signed and the Marshall Studio has seen incredible demand throughout the year, due to the quality of its facilities.
The company made an operating loss of £2.75m (2022 £9.97m profit) and a net loss before tax of £2.2m (2022 £10.1m profit). This was due to the reduced turnover for the year, including a decrease in royalties received, but also contract termination costs for the strategic decision of going direct in some distribution markets.
An interim dividend of £1,800,000 (£1.93 per share) was paid during the year and the directors do not recommend a final dividend.
MARSHALL AMPLIFICATION PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators
Financial KPIs
Sales – the Company continues to pursue increased sales through expansion in the market place and the development of new products.
Gross profit margin – the gross margin decreased to 42.93% from 49.24% in the previous year.
Cost control – the directors continually review costs and endeavour to take corrective action to ensure their management.
Financial KPIs are measured by the level of turnover and gross margin, the measurement of costs and performance against budgets and the extent to which profit is generated.
Other performance indicators
Non-Financial KPIs
Quality – the Company maintains the highest quality standards of design and manufacture and closely monitors the feedback of users.
Other information and explanations
The auditors have issued an unqualified opinion in the Independent Auditors Report on pages 6-7 and have confirmed that they are of the opinion that the information given in the Strategic Report is consistent with the financial statements under section 496 of the Companies Act 2006.
Those entitled to obtain a full copy of the company's annual accounts and reports may do so on attendance at the AGM otherwise on request from the company's directors.
M Axhamre
Director
10 October 2024
MARSHALL AMPLIFICATION PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of the manufacture and supply of amplification equipment.
Results and dividends
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £1,800,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
A Charles
(Resigned 11 September 2023)
A Coombes
(Resigned 11 September 2023)
M Axhamre
(Appointed 28 April 2023)
H De Bodinat
(Appointed 28 April 2023 and resigned 19 January 2024)
J De Maillard
(Appointed 28 April 2023)
L Lindkvist
(Appointed 28 April 2023 and resigned 19 January 2024)
N Street
(Appointed 28 April 2023 and resigned 19 January 2024)
C Wang
(Appointed 1 January 2023 and resigned 5 October 2023)
P Neath
(Appointed 1 January 2023 and resigned 31 August 2023)
Financial instruments
Introduction
The company has exposures to three main areas of risk - foreign exchange currency exposure, liquidity risk and customer credit exposure. To a lesser extent the group is exposed to interest rate risk.
Liquidity risk
The objective of the company in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The company expects to meet its financial obligations through operating cash-flows. To date the company have not had to rely on loans or credit facilities due to sufficient cash reserves being held.
Interest rate risk
As no overdrafts, loans or credit facilities are undertaken by the company, the exposure to interest rate risk is minimised.
Foreign currency risk
The company is exposed to currency exchange rate risk due to a significant proportion of its receivables and operating expenses being denominated in non-Sterling currencies. The directors constantly monitor exchange rates and purchase Sterling at desirable rates as needed.
Credit risk
The company may offer credit terms to its customers which allow payment of the debt after delivery of goods and services. The company is at risk to the extent that a customer may be unable to pay the debt on the specified due date. This risk is mitigated by the strong on-going relationships with customers and through third party consultancy.
Research and development
The company is committed to the development of its product range and therefore conducts a continuous programme of product research and development. Expenditure in the year totalled £568,079 which consisted of both employee costs and materials.
MARSHALL AMPLIFICATION PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Acquisition of own shares
During the year, the company reduced its entire share capital by special resolution. It subsequently made an allotment of shares out of capital reserves in order to reinstate sufficient share capital for a Plc. All shares before and after the transaction were under the ownership of Marshall Group AB.
Business relationships
The directors consider the company's business relationships with suppliers, customers and all interested parties to be vital to its past and future success. All decisions are undertaken with due care and consideration, including ethically and morally, to achieve the right outcome.
Future developments
Marshall continues to design and develop new and innovative products for release in 2024 and beyond.
Auditor
A resolution to reappoint Simpson Wreford LLP as auditors of the company will be proposed at the forthcoming annual general meeting.
Energy and carbon report
For the first time, global warming has exceeded 1.5°C across an entire year, according to the EU's climate service. Every fraction of a degree of warming means more extreme weather and more sea level rise impacting millions of people and other living creatures. Taking action to bring down emissions to zero is more urgent than ever, and at Marshall Group we focus our efforts where we have the biggest footprint to achieve the greatest impact. In 2023, we joined the UN Global Compact and continued our work to become a net zero company by 2040.
We are committed to reducing carbon emissions from our own operations as well as from our supply chain. Our net zero carbon target was validated by the Science Based Target initiative (SBTi) in 2022, confirming that the target is in line with the efforts required to keep global warming to 1.5°C above the pre-industrial temperature
levels.
2023
Energy consumption
kWh
Aggregate of energy consumption in the year
2,279,892
2023
Emissions of CO2 equivalent
metric tonnes
Scope 1 - direct emissions
- Gas combustion
97.00
Scope 2 - indirect emissions
- Electricity purchased
418.00
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
28.00
Total gross emissions
543.00
Intensity ratio
Tonnes CO2e per full-time employee
2.78
Quantification and reporting methodology
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.
MARSHALL AMPLIFICATION PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Intensity measurement
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per full-time equivalent employee.
Measures taken to improve energy efficiency
The company is always looking at ways to improve its energy efficiency. Steps taken have been to improve reduce electricity usage through motion sensitive lights, increased video conferencing and Marshall Group joined the UN Global Compact during 2023.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the review of the business for the year, the principal risks and uncertainties and analysis of development and performance. The review and analysis for the year are supported by both financial and non-financial key performance indicators.
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 company’s auditor 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 company’s auditor is aware of that information.
On behalf of the board
M Axhamre
Director
10 October 2024
MARSHALL AMPLIFICATION PLC
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
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 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 and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
MARSHALL AMPLIFICATION PLC
INDEPENDENT AUDITOR REPORT
TO THE MEMBERS OF MARSHALL AMPLIFICATION PLC
- 7 -
Opinion
We have audited the financial statements of Marshall Amplification PLC (the 'company') for the year ended 31 December 2023 which comprise the income statement, the statement of financial position, the statement of changes in equity, the 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 company's affairs as at 31 December 2023 and of its 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 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 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor 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.
MARSHALL AMPLIFICATION PLC
INDEPENDENT AUDITOR REPORT
TO THE MEMBERS OF MARSHALL AMPLIFICATION PLC (CONTINUED)
- 8 -
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 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 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.
Auditor 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 report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
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; and
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 computer component manufacturing and supply sector; and
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation; and
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Group’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.
MARSHALL AMPLIFICATION PLC
INDEPENDENT AUDITOR REPORT
TO THE MEMBERS OF MARSHALL AMPLIFICATION PLC (CONTINUED)
- 9 -
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims;
communicating with component auditors to request identification of any instances of non-compliance with laws and regulations that could give rise to a material misstatement of the group financial statements; and
reviewing correspondence with HMRC and the company’s legal advisors.
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 report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor 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.
Michael Broder BSc FCA
Senior Statutory Auditor
For and on behalf of Simpson Wreford LLP
11 October 2024
Chartered Accountants
Statutory Auditor
Wellesley House
Duke of Wellington Avenue
Royal Arsenal
London
SE18 6SS
MARSHALL AMPLIFICATION PLC
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Revenue
3
31,390,584
42,901,833
Cost of sales
(17,915,700)
(21,778,214)
Gross profit
13,474,884
21,123,619
Distribution costs
(5,767,249)
(4,455,751)
Administrative expenses
(10,460,482)
(6,693,106)
Operating (loss)/profit
4
(2,752,847)
9,974,762
Investment income
8
545,874
145,614
Finance costs
9
(14,844)
(17,943)
(Loss)/profit before taxation
(2,221,817)
10,102,433
Tax on (loss)/profit
10
(10,548)
(1,818,800)
(Loss)/profit for the financial year
(2,232,365)
8,283,633
The income statement has been prepared on the basis that all operations are continuing operations.
MARSHALL AMPLIFICATION PLC
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Non-current assets
Intangible assets
12
2,963,874
2,089,356
Property, plant and equipment
13
4,785,041
4,140,929
Investments
14
346,376
346,377
8,095,291
6,576,662
Current assets
Inventories
17
4,217,683
5,314,101
Trade and other receivables
18
19,061,101
19,745,137
Cash and cash equivalents
14,089,887
20,276,507
37,368,671
45,335,745
Current liabilities
19
(5,004,964)
(7,663,466)
Net current assets
32,363,707
37,672,279
Total assets less current liabilities
40,458,998
44,248,941
Provisions for liabilities
Deferred tax liability
20
544,367
301,945
(544,367)
(301,945)
Net assets
39,914,631
43,946,996
Equity
Called up share capital
23
50,000
931,590
Capital redemption reserve
22
119,910
169,910
Retained earnings
24
39,744,721
42,845,496
Total equity
39,914,631
43,946,996
The financial statements were approved by the board of directors and authorised for issue on 10 October 2024 and are signed on its behalf by:
M Axhamre
Director
Company Registration No. 00805676
MARSHALL AMPLIFICATION PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Capital redemption reserve
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 January 2022
931,590
169,910
35,731,778
36,833,278
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
8,283,633
8,283,633
Dividends
11
-
-
(1,169,915)
(1,169,915)
Balance at 31 December 2022
931,590
169,910
42,845,496
43,946,996
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
(2,232,365)
(2,232,365)
Bonus issue of shares
23
50,000
-
50,000
Dividends
11
-
-
(1,800,000)
(1,800,000)
Reduction of shares
23
(931,590)
-
931,590
Other movements
-
(50,000)
-
(50,000)
Balance at 31 December 2023
50,000
119,910
39,744,721
39,914,631
MARSHALL AMPLIFICATION PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
29
(394,240)
9,358,981
Interest paid
(14,844)
(17,943)
Income taxes paid
(1,761,769)
(182,057)
Net cash (outflow)/inflow from operating activities
(2,170,853)
9,158,981
Investing activities
Purchase of intangible assets
(1,634,598)
(1,395,000)
Purchase of property, plant and equipment
(1,127,877)
(549,975)
Proceeds on disposal of property, plant and equipment
833
Proceeds on disposal of fixed asset investments
1
(116,315)
Interest received
545,874
145,614
Net cash used in investing activities
(2,215,767)
(1,915,676)
Financing activities
Dividends paid
(1,800,000)
(1,169,915)
Net cash used in financing activities
(1,800,000)
(1,169,915)
Net (decrease)/increase in cash and cash equivalents
(6,186,620)
6,073,390
Cash and cash equivalents at beginning of year
20,276,507
14,203,117
Cash and cash equivalents at end of year
14,089,887
20,276,507
MARSHALL AMPLIFICATION PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information
Marshall Amplification PLC is a private company limited by shares incorporated in England and Wales. The registered office is Denbigh Road, Denbigh Industrial Estate, Bletchley, Milton Keynes, MK1 1DQ.
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 on the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 401 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Marshall Amplification PLC is a wholly owned subsidiary of Marshall Group AB and the results of Marshall Amplification PLC are included in the consolidated financial statements of Marshall Group AB which are available from https://group.marshall.com/investors/. The registered office of Marshall Group AB is Centralplan 15, 111 20 Stockholm, Sweden. This is the largest group, as well as the smallest group, for which group accounts are drawn up.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.
1.3
Revenue
Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
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.
MARSHALL AMPLIFICATION PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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:
Patents
Capitalised and carried forward at nominal value of £2.
Development Costs
Straight line over 5 years
1.6
Property, plant and equipment
Property, plant and equipment are initially measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Freehold
Straight line over 40 years
Studio improvements
Straight line over 12 years from date of first use
Plant and machinery
Straight line over 10 years
Fixtures, fittings & equipment
Straight line over 10 & 5 years
Computer equipment
Straight line over 5 & 3 years
Motor vehicles
25% on reducing balance
Specialised equipment
Straight line over 50 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Non-current investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.8
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
MARSHALL AMPLIFICATION PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.9
Inventories
Inventories 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 inventories to their present location and condition.
Inventories held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.10
Cash 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 company 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 company's statement of financial position 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.
MARSHALL AMPLIFICATION PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
MARSHALL AMPLIFICATION PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
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 deducting all of its liabilities.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.12
Equity instruments
Equity instruments issued by the company 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 company.
1.13
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
MARSHALL AMPLIFICATION PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has 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.
1.15
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 non-current 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.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
1.18
The company does not make any disclosure in respect of segmental reporting as the directors consider it to be prejudicial to its interests.
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
MARSHALL AMPLIFICATION PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
3
Revenue
An analysis of the company's revenue is as follows:
2023
2022
£
£
Revenue analysed by class of business
Sales
22,447,616
28,581,290
Royalties
8,942,968
14,320,543
31,390,584
42,901,833
2023
2022
£
£
Revenue analysed by geographical market
UK sales
7,389,712
6,278,887
Export sales
24,000,872
36,622,946
31,390,584
42,901,833
2023
2022
£
£
Other revenue
Interest income
545,874
145,614
4
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)
1,489,437
(2,793,051)
Depreciation of owned property, plant and equipment
483,765
448,298
Profit on disposal of property, plant and equipment
(833)
-
Amortisation of intangible assets
760,080
412,061
Cost of inventories recognised as an expense
16,005,521
19,537,833
5
Auditor remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
67,788
60,489
For other services
Taxation compliance services
3,500
3,000
All other non-audit services
22,000
2,000
25,500
5,000
MARSHALL AMPLIFICATION PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Admin, Sales and Research
86
88
Manufacturing
109
106
Total
195
194
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
6,701,458
8,560,834
Social security costs
772,240
895,457
Pension costs
130,519
127,601
7,604,217
9,583,892
Redundancy payments made or committed
175,677
53,300
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
810,718
2,362,658
Remuneration disclosed above include the following amounts paid to the highest paid director:
Remuneration for qualifying services
336,988
1,169,790
8
Investment income
2023
2022
£
£
Interest income
Interest on bank deposits
519,382
145,614
Other interest income
26,492
Total income
545,874
145,614
MARSHALL AMPLIFICATION PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Investment income
(Continued)
- 22 -
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
519,382
145,614
9
Finance costs
2023
2022
£
£
Other finance costs:
Other interest
14,844
17,943
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(432,309)
1,819,517
Adjustments in respect of prior periods
200,435
(57,162)
Total current tax
(231,874)
1,762,355
Deferred tax
Origination and reversal of timing differences
242,422
56,445
Total tax charge
10,548
1,818,800
As of April 2023, the rate of corporation tax increased from 19% to 25%.
The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
(Loss)/profit before taxation
(2,221,817)
10,102,433
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
(522,127)
1,919,462
Tax effect of expenses that are not deductible in determining taxable profit
334,958
224,359
Permanent capital allowances in excess of depreciation
(245,140)
(181,875)
Under/(over) provided in prior years
200,435
(57,162)
Research and development relief
(142,429)
Deferred tax charge
242,422
56,445
Taxation charge for the year
10,548
1,818,800
MARSHALL AMPLIFICATION PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
11
Dividends
2023
2022
2023
2022
Per share
Per share
Total
Total
£
£
£
£
Ordinary shares
Interim paid
1.93
1.26
1,800,000
1,169,915
12
Intangible fixed assets
Patents
Development Costs
Total
£
£
£
Cost
At 1 January 2023
2
3,161,563
3,161,565
Additions
1,634,598
1,634,598
At 31 December 2023
2
4,796,161
4,796,163
Amortisation and impairment
At 1 January 2023
1,072,209
1,072,209
Amortisation charged for the year
760,080
760,080
At 31 December 2023
1,832,289
1,832,289
Carrying amount
At 31 December 2023
2
2,963,872
2,963,874
At 31 December 2022
2
2,089,354
2,089,356
The Company holds registered trade marks and patents in many countries throughout the world. The cost of registration and upkeep is treated as an expense in the year in which it is incurred. The directors consider that it is appropriate to capitalise trade marks and patents at nominal value of £1. The trade marks and rights associated with the Natal brand have also been capitalised at the nominal value of £1.
Development costs incurred have been capitalised at cost because the product was being developed. It has since been launched in 2022 and these development costs, along with further costs incurred in the year, are being released on a straight line basis over 5 years.
MARSHALL AMPLIFICATION PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
13
Property, plant and equipment
Land and buildings Freehold
Studio improvements
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Specialised equipment
Total
£
£
£
£
£
£
£
£
Cost
At 1 January 2023
5,254,622
1,238,655
6,174,048
2,951,453
2,572,841
124,614
533,333
18,849,566
Additions
182,081
551,323
256,151
104,490
33,832
1,127,877
At 31 December 2023
5,254,622
1,420,736
6,725,371
3,207,604
2,677,331
158,446
533,333
19,977,443
Depreciation and impairment
At 1 January 2023
3,753,178
103,219
5,706,579
2,711,249
2,327,239
94,728
12,445
14,708,637
Depreciation charged in the year
131,376
114,588
64,921
47,389
98,341
16,482
10,668
483,765
At 31 December 2023
3,884,554
217,807
5,771,500
2,758,638
2,425,580
111,210
23,113
15,192,402
Carrying amount
At 31 December 2023
1,370,068
1,202,929
953,871
448,966
251,751
47,236
510,220
4,785,041
At 31 December 2022
1,501,444
1,135,436
467,469
240,204
245,602
29,886
520,888
4,140,929
MARSHALL AMPLIFICATION PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
14
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
16
230,061
230,061
Unlisted investments
1
Other Investments
116,315
116,315
346,376
346,377
The company has not designated any financial assets that are not classified as financial assets at fair value through profit or loss.
Movements in non-current investments
Shares in subsidiaries
Other investments
Other Investments
Total
£
£
£
£
Cost or valuation
At 1 January 2023
230,061
1
116,315
346,377
Disposals
-
(1)
-
(1)
At 31 December 2023
230,061
-
116,315
346,376
Carrying amount
At 31 December 2023
230,061
-
116,315
346,376
At 31 December 2022
230,061
1
116,315
346,377
15
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
17,923,115
19,575,117
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Non-derivatives that are not part of a trading portfolio
4,091,911
5,631,319
16
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
MARSHALL AMPLIFICATION PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Subsidiaries
(Continued)
- 26 -
Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
Marshall Amplification (Hong Kong) Limited
1
To supply sound amplifiers and equipment to the Parent
Ordinary shares
100.00
-
Marshall Amplification (Vietnam) Limited
2
To produce sound amplifier equipment and components for electric guitars
Ordinary shares
-
100.00
Marshall Records Limited
3
To record bands under Marshall Label
Ordinary 'A' shares
100.00
-
Marshall Records Publishing Limited
4
To obtain publishing rights under the Marshall Label
Ordinary shares
-
100.00
Registered office addresses (all UK unless otherwise indicated):
1
Suite 2601b, 26F Westley Square, 48 Hui Yuen Road, Kwun Tong, Kowloon, Hong Kong
2
Road No 5A, Nhon Trach II Industrial Zone, Hiep Phuoc Commune, Nhon Trach Distric, Dong Nai Province, Vietnam
3
Denbigh Road, Denbigh Industrial Estate, Bletchley, Milton Keynes Buckinghamshire MK1 1DQ
4
As above
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Marshall Amplification (Hong Kong) Limited
(1,197,019)
(408,627)
Marshall Amplification (Vietnam) Limited
65,900
(107,600)
Marshall Records Limited
(1,086,025)
(5,485)
Marshall Records Publishing Limited
(12,668)
(1,901)
The accounts for both Marshall Amplification (Hong Kong) Limited and Marshall Amplification (Vietnam) Limited are prepared in accordance with IFRS. The accounts have been translated into sterling for consolidation purposes, transferring conversion differences to the translation reserve.
17
Inventories
2023
2022
£
£
Raw materials and consumables
1,939,640
3,800,749
Work in progress
401,911
641,307
Finished goods and goods for resale
1,876,132
872,045
4,217,683
5,314,101
MARSHALL AMPLIFICATION PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
18
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Trade receivables
10,252,145
5,151,641
Corporation tax recoverable
432,309
Amounts owed by group undertakings
7,608,877
9,019,703
Other receivables
62,093
4,762,635
Prepayments and accrued income
705,677
811,158
19,061,101
19,745,137
19
Current liabilities
2023
2022
£
£
Trade payables
551,124
695,909
Corporation tax
708,926
2,270,260
Other taxation and social security
204,127
168,034
Accruals and deferred income
3,540,787
4,529,263
5,004,964
7,663,466
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
ACAs
544,367
301,945
2023
Movements in the year:
£
Liability at 1 January 2023
301,945
Charge to profit or loss
242,422
Liability at 31 December 2023
544,367
MARSHALL AMPLIFICATION PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
130,519
127,601
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
22
Capital redemption reserve
2023
2022
£
£
At the beginning of the year
169,910
169,910
Other movements
(50,000)
-
At the end of the year
119,910
169,910
23
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50,000
931,590
50,000
931,590
24
Retained earnings
2023
2022
£
£
At the beginning of the year
42,845,496
35,731,778
(Loss)/profit for the year
(2,232,365)
8,283,633
Dividends
(1,800,000)
(1,169,915)
Share reduction charged to retained earnings
931,590
-
At the end of the year
39,744,721
42,845,496
MARSHALL AMPLIFICATION PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
25
Operating lease commitments
The operating lease is in relation to a complete 'Breakout Hub'. During the year the lease payments recognised as an expense were £7,768.80.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
30,264
Between two and five years
121,056
151,320
26
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Dividends
2023
2022
£
£
Other related parties
1,800,000
1,169,915
Other related parties include dividends totalling £1,600,000 (2022 £1,036,915) paid during the year to The Jim Marshall 2004 Family Settlement who owned 88.89% of the ordinary share capital of the company prior to the company sale to the change of ownership to Marshall Group AB,
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Entities over which the entity has control, joint control or significant influence
7,608,877
9,019,703
During the year the company made loans to subsidiary companies Marshall Amplification (Hong Kong) Limited and Marshall Records Limited. At the year end, the amounts outstanding are included in other debtors.
27
Ultimate controlling party
In the opinion of the Directors, Marshall Group AB is the ultimate controlling party.
28
Research and development
The amount of research and development expenditure recognised as an expense during the period £568,079 (2022 : £576,636).
MARSHALL AMPLIFICATION PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
29
Cash (absorbed by)/generated from operations
2023
2022
£
£
(Loss)/profit for the year after tax
(2,232,365)
8,283,633
Adjustments for:
Taxation charged
10,548
1,818,800
Finance costs
14,844
17,943
Investment income
(545,874)
(145,614)
Gain on disposal of property, plant and equipment
(833)
-
Amortisation and impairment of intangible assets
760,080
412,061
Depreciation and impairment of property, plant and equipment
483,765
448,298
Movements in working capital:
Decrease/(increase) in inventories
1,096,418
(832,154)
Decrease/(increase) in trade and other receivables
1,116,345
(2,762,958)
(Decrease)/increase in trade and other payables
(1,097,168)
2,118,972
Cash (absorbed by)/generated from operations
(394,240)
9,358,981
30
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
20,276,507
(6,186,620)
14,089,887
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.210A CharlesA CoombesM AxhamreH De BodinatJ De MaillardL LindkvistN StreetC WangP NeathTaylor Wessing Secretaries Limitedfalsefalse008056762023-01-012023-12-3100805676bus:Director32023-01-012023-12-3100805676bus:Director52023-01-012023-12-3100805676bus:CompanySecretary12023-01-012023-12-3100805676bus:Director12023-01-012023-12-3100805676bus:Director22023-01-012023-12-3100805676bus:Director42023-01-012023-12-3100805676bus:Director62023-01-012023-12-3100805676bus:Director72023-01-012023-12-3100805676bus:Director82023-01-012023-12-3100805676bus:Director92023-01-012023-12-3100805676bus:RegisteredOffice2023-01-012023-12-3100805676bus:Agent12023-01-012023-12-31008056762023-12-31008056762022-01-012022-12-3100805676core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3100805676core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3100805676core:OtherResidualIntangibleAssets2023-12-3100805676core:OtherResidualIntangibleAssets2022-12-3100805676core:PatentsTrademarksLicencesConcessionsSimilar2023-12-3100805676core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-12-3100805676core:PatentsTrademarksLicencesConcessionsSimilar2022-12-3100805676core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-31008056762022-12-3100805676core:LandBuildingscore:OwnedOrFreeholdAssets2023-12-3100805676core:LeaseholdImprovements2023-12-3100805676core:PlantMachinery2023-12-3100805676core:FurnitureFittings2023-12-3100805676core:ComputerEquipment2023-12-3100805676core:MotorVehicles2023-12-3100805676core:Non-standardPPEClass2ComponentTotalPropertyPlantEquipment2023-12-3100805676core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3100805676core:LeaseholdImprovements2022-12-3100805676core:PlantMachinery2022-12-3100805676core:FurnitureFittings2022-12-3100805676core:ComputerEquipment2022-12-3100805676core:MotorVehicles2022-12-3100805676core:Non-standardPPEClass2ComponentTotalPropertyPlantEquipment2022-12-3100805676core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3100805676core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3100805676core:CurrentFinancialInstruments2023-12-3100805676core:CurrentFinancialInstruments2022-12-3100805676core:ShareCapital2023-12-3100805676core:ShareCapital2022-12-3100805676core:CapitalRedemptionReserve2023-12-3100805676core:CapitalRedemptionReserve2022-12-3100805676core:RetainedEarningsAccumulatedLosses2023-12-3100805676core:RetainedEarningsAccumulatedLosses2022-12-3100805676core:ShareCapital2021-12-3100805676core:CapitalRedemptionReserve2021-12-3100805676core:RetainedEarningsAccumulatedLosses2021-12-3100805676core:CapitalRedemptionReserve2022-12-3100805676core:ShareCapital2023-01-012023-12-31008056762022-12-31008056762021-12-3100805676core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3100805676core:PatentsTrademarksLicencesConcessionsSimilar2023-01-012023-12-3100805676core:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-01-012023-12-3100805676core:LandBuildingscore:OwnedOrFreeholdAssets2023-01-012023-12-3100805676core:LeaseholdImprovements2023-01-012023-12-3100805676core:PlantMachinery2023-01-012023-12-3100805676core:FurnitureFittings2023-01-012023-12-3100805676core:ComputerEquipment2023-01-012023-12-3100805676core:MotorVehicles2023-01-012023-12-3100805676core:Non-standardPPEClass2ComponentTotalPropertyPlantEquipment2023-01-012023-12-3100805676bus:HighestPaidDirector2022-01-012022-12-310080567612023-01-012023-12-310080567612022-01-012022-12-3100805676core:UKTax2023-01-012023-12-3100805676core:UKTax2022-01-012022-12-310080567622023-01-012023-12-310080567622022-01-012022-12-310080567632023-01-012023-12-310080567632022-01-012022-12-3100805676bus:OrdinaryShareClass12023-01-012023-12-3100805676bus:OrdinaryShareClass12022-01-012022-12-3100805676core:PatentsTrademarksLicencesConcessionsSimilar2022-12-3100805676core:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-3100805676core:PatentsTrademarksLicencesConcessionsSimilarcore:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3100805676core:DevelopmentCostsCapitalisedDevelopmentExpenditurecore:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3100805676core:ExternallyAcquiredIntangibleAssets2023-01-012023-12-3100805676core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3100805676core:LeaseholdImprovements2022-12-3100805676core:PlantMachinery2022-12-3100805676core:FurnitureFittings2022-12-3100805676core:ComputerEquipment2022-12-3100805676core:MotorVehicles2022-12-3100805676core:Non-standardPPEClass2ComponentTotalPropertyPlantEquipment2022-12-3100805676core:Non-currentFinancialInstruments2023-12-3100805676core:Non-currentFinancialInstruments2022-12-3100805676core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2023-12-3100805676core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2022-12-3100805676core:Subsidiary12023-01-012023-12-3100805676core:Subsidiary22023-01-012023-12-3100805676core:Subsidiary32023-01-012023-12-3100805676core:Subsidiary42023-01-012023-12-3100805676core:Subsidiary112023-01-012023-12-3100805676core:Subsidiary212023-01-012023-12-3100805676core:Subsidiary312023-01-012023-12-3100805676core:Subsidiary412023-01-012023-12-3100805676core:Subsidiary12023-12-3100805676core:Subsidiary22023-12-3100805676core:Subsidiary32023-12-3100805676core:Subsidiary42023-12-3100805676core:WithinOneYear2023-12-3100805676core:WithinOneYear2022-12-3100805676core:BetweenTwoFiveYears2023-12-3100805676core:BetweenTwoFiveYears2022-12-3100805676bus:PrivateLimitedCompanyLtd2023-01-012023-12-3100805676bus:FRS1022023-01-012023-12-3100805676bus:Audited2023-01-012023-12-3100805676bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP