IRIS Accounts Production v24.3.0.553 14685129 Board of Directors 31.3.24 1.4.23 31.3.24 31.3.24 Medium entities These accounts have been prepared in accordance with the provisions applicable to companies subject to the medium-sized companies regime. Morco Products is a specialist supplier of own branded LPG heating and hot water systems and have been supplying the UK and Continental European Caravan Holiday Home and Residential Park Home industries with hot water and central heating solutions for decades, evolving with the times in order to maintain a high standard of both products and service. true true false true true false false true false Ordinary A 0 Ordinary B 0 Ordinary 0 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh146851292023-03-31146851292024-03-31146851292023-04-012024-03-31146851292022-03-31146851292022-04-012023-03-31146851292023-03-3114685129ns15:EnglandWales2023-04-012024-03-3114685129ns14:PoundSterling2023-04-012024-03-3114685129ns10:Director12023-04-012024-03-3114685129ns10:Consolidated2024-03-3114685129ns10:ConsolidatedGroupCompanyAccounts2023-04-012024-03-3114685129ns10:PrivateLimitedCompanyLtd2023-04-012024-03-3114685129ns10:Consolidatedns10:MediumEntities2023-04-012024-03-3114685129ns10:Consolidatedns10:Audited2023-04-012024-03-3114685129ns10:Medium-sizedCompaniesRegimeForDirectorsReport2023-04-012024-03-3114685129ns10:Medium-sizedCompaniesRegimeForAccounts2023-04-012024-03-3114685129ns10:Consolidated2023-04-012024-03-3114685129ns10:Consolidatedns10:Medium-sizedCompaniesRegimeForDirectorsReport2023-04-012024-03-3114685129ns10:Consolidatedns10:Medium-sizedCompaniesRegimeForAccounts2023-04-012024-03-3114685129ns10:FullAccounts2023-04-012024-03-3114685129ns10:OrdinaryShareClass12023-04-012024-03-3114685129ns10:OrdinaryShareClass22023-04-012024-03-3114685129ns10:OrdinaryShareClass32023-04-012024-03-3114685129ns10:Director22023-04-012024-03-3114685129ns10:CompanySecretary12023-04-012024-03-3114685129ns10:RegisteredOffice2023-04-012024-03-3114685129ns10:Consolidated2022-04-012023-03-3114685129ns5:CurrentFinancialInstruments2024-03-3114685129ns5:CurrentFinancialInstruments2023-03-3114685129ns5:ShareCapital2024-03-3114685129ns5:ShareCapital2023-03-3114685129ns5:RetainedEarningsAccumulatedLosses2024-03-3114685129ns5:RetainedEarningsAccumulatedLosses2023-03-3114685129ns5:ShareCapital2023-04-012024-03-3114685129ns5:RetainedEarningsAccumulatedLosses2023-04-012024-03-3114685129ns5:LandBuildings2023-04-012024-03-3114685129ns5:LandBuildings2024-03-3114685129ns5:AdditionsToInvestments2024-03-3114685129ns5:CostValuation2024-03-3114685129ns10:OrdinaryShareClass12024-03-3114685129ns10:OrdinaryShareClass22024-03-3114685129ns10:OrdinaryShareClass32024-03-31
REGISTERED NUMBER: 14685129 (England and Wales)






















Morco Products Holdings Limited

Group Strategic Report, Report of the Directors and

Audited Consolidated Financial Statements for the Year Ended 31 March 2024






Morco Products Holdings Limited (Registered number: 14685129)






Contents of the Consolidated Financial Statements
for the year ended 31 March 2024




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Consolidated Income Statement 8

Consolidated Other Comprehensive Income 9

Consolidated Balance Sheet 10

Company Balance Sheet 11

Consolidated Statement of Changes in Equity 12

Company Statement of Changes in Equity 13

Consolidated Cash Flow Statement 14

Notes to the Consolidated Cash Flow Statement 15

Notes to the Consolidated Financial Statements 16


Morco Products Holdings Limited

Company Information
for the year ended 31 March 2024







DIRECTORS: C R E Gillett
W Hildyard





SECRETARY: C R E Gillett





REGISTERED OFFICE: Morco House
Riverview Road
Beverley
East Yorkshire
HU17 0LD





REGISTERED NUMBER: 14685129 (England and Wales)





AUDITORS: Smailes Goldie
Chartered Accountants
Statutory Auditor
Regent's Court
Princess Street
Hull
East Yorkshire
HU2 8BA

Morco Products Holdings Limited (Registered number: 14685129)

Group Strategic Report
for the year ended 31 March 2024

The directors present their strategic report of the company and the group for the year ended 31 March 2024.

REVIEW OF BUSINESS
The company was incorporated on 23 February 2023. On 8 November 2023 the company entered into a share-for-share exchange transaction with Charles Gillett, the ultimate controlling party, to acquire Morco Products Limited.

Morco Products is a specialist supplier of own branded LPG heating and hot water systems and have been supplying the UK and Continental European Caravan Holiday Home and Residential Park Home industries with hot water and central heating solutions for decades, evolving with the times in order to maintain a high standard of both products and service.

The Directors consider the results for the year to be satisfactory.

PRINCIPAL RISKS AND UNCERTAINTIES
The main risks for the business are associated with the world economic climate and the effect of any increase in interest rates, which may affect the consumer's drive to enter the caravan market. The trend of world commodity prices also affects the ability of the business to remain competitive, but every effort is made to mitigate adverse factors.

FUTURE DEVELOPMENTS AND PERFORMANCE
Today Morco Products is working with the LPG industry to discuss and understand the future use of renewable gas including other alternative energy sources to diversify the business. Research and Development is taking place to measure the suitability of different options in order to provide customers with a range of heating and hot water systems.

KEY PERFORMANCE INDICATORS
The shareholders are closely involved in the group's activities. The group directors therefore believe that the analysis of group performance for the year using Key Performance Indicators is not necessary as the shareholders already understand the development, performance and position of the group. Performance is measured by the key Performance indicators off turnover, Cost control and profitability.

ON BEHALF OF THE BOARD:





C R E Gillett - Director


7 October 2024

Morco Products Holdings Limited (Registered number: 14685129)

Report of the Directors
for the year ended 31 March 2024

The directors present their report with the financial statements of the company and the group for the year ended 31 March 2024.

DIVIDENDS
No dividends will be distributed for the year ended 31 March 2024.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report.

C R E Gillett
W Hildyard

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group 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;
- 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
The auditors, Smailes Goldie, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





C R E Gillett - Director


7 October 2024

Report of the Independent Auditors to the Members of
Morco Products Holdings Limited

Opinion
We have audited the financial statements of Morco Products Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of 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 of the parent company affairs as at 31 March 2024 and of the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Morco Products Holdings Limited


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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page three, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Morco Products Holdings Limited


Auditors' 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 a Report of the Auditors 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was 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, tax legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates were
indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with relevant regulators and the company's legal advisors.

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

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

Report of the Independent Auditors to the Members of
Morco Products Holdings Limited


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.




Peter Dearing FCCA (Senior Statutory Auditor)
for and on behalf of Smailes Goldie
Chartered Accountants
Statutory Auditor
Regent's Court
Princess Street
Hull
East Yorkshire
HU2 8BA

7 October 2024

Morco Products Holdings Limited (Registered number: 14685129)

Consolidated Income Statement
for the year ended 31 March 2024

2024 2023
Notes £    £    £    £   

TURNOVER 3 19,684,290 27,783,742

Cost of sales 13,505,341 19,186,367
GROSS PROFIT 6,178,949 8,597,375

Distribution costs 188,176 202,208
Administrative expenses 2,702,884 2,079,048
2,891,060 2,281,256
3,287,889 6,316,119

Other operating income 5,557 31,405
OPERATING PROFIT 5 3,293,446 6,347,524

Interest receivable and similar income 402,209 146,528
PROFIT BEFORE TAXATION 3,695,655 6,494,052

Tax on profit 6 1,081,715 1,251,042
PROFIT FOR THE FINANCIAL YEAR 2,613,940 5,243,010
Profit attributable to:
Owners of the parent 2,613,940 5,243,010

Morco Products Holdings Limited (Registered number: 14685129)

Consolidated Other Comprehensive Income
for the year ended 31 March 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 2,613,940 5,243,010


OTHER COMPREHENSIVE INCOME
Purchase of own shares (4,020,000 ) -
Cancellation of share capital 36,400 -
Income tax relating to components of
other comprehensive income

-

-
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

(3,983,600

)

-
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(1,369,660

)

5,243,010

Total comprehensive income attributable to:
Owners of the parent (1,369,660 ) 5,243,010

Morco Products Holdings Limited (Registered number: 14685129)

Consolidated Balance Sheet
31 March 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 1,882,337 747,123
Investments 10 - -
1,882,337 747,123

CURRENT ASSETS
Stocks 11 3,363,242 3,553,171
Debtors 12 3,759,009 6,463,729
Cash at bank and in hand 11,342,274 13,147,368
18,464,525 23,164,268
CREDITORS
Amounts falling due within one year 13 2,226,220 4,378,713
NET CURRENT ASSETS 16,238,305 18,785,555
TOTAL ASSETS LESS CURRENT
LIABILITIES

18,120,642

19,532,678

PROVISIONS FOR LIABILITIES 14 16,465 22,441
NET ASSETS 18,104,177 19,510,237

CAPITAL AND RESERVES
Called up share capital 15 103,600 140,000
Capital redemption reserve 16 236,400 200,000
Retained earnings 16 17,764,177 19,170,237
SHAREHOLDERS' FUNDS 18,104,177 19,510,237

The financial statements were approved by the Board of Directors and authorised for issue on 7 October 2024 and were signed on its behalf by:





C R E Gillett - Director


Morco Products Holdings Limited (Registered number: 14685129)

Company Balance Sheet
31 March 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 1,778,986 -
Investments 10 103,600 -
1,882,586 -

CURRENT ASSETS
Cash at bank 14,647 -

CREDITORS
Amounts falling due within one year 13 1,783,751 -
NET CURRENT LIABILITIES (1,769,104 ) -
TOTAL ASSETS LESS CURRENT
LIABILITIES

113,482

-

CAPITAL AND RESERVES
Called up share capital 15 103,600 -
Retained earnings 16 9,882 -
SHAREHOLDERS' FUNDS 113,482 -

Company's profit for the financial year 9,882 -

The financial statements were approved by the Board of Directors and authorised for issue on 7 October 2024 and were signed on its behalf by:





C R E Gillett - Director


Morco Products Holdings Limited (Registered number: 14685129)

Consolidated Statement of Changes in Equity
for the year ended 31 March 2024

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 April 2022 140,000 14,116,025 200,000 14,456,025

Changes in equity
Dividends - (188,798 ) - (188,798 )
Total comprehensive income - 5,243,010 - 5,243,010
Balance at 31 March 2023 140,000 19,170,237 200,000 19,510,237

Changes in equity
Issue of share capital (36,400 ) - - (36,400 )
Total comprehensive income - (1,406,060 ) 36,400 (1,369,660 )
Balance at 31 March 2024 103,600 17,764,177 236,400 18,104,177

Morco Products Holdings Limited (Registered number: 14685129)

Company Statement of Changes in Equity
for the year ended 31 March 2024

Called up
share Retained Total
capital earnings equity
£    £    £   

Changes in equity
Balance at 31 March 2023 - - -

Changes in equity
Issue of share capital 103,600 - 103,600
Total comprehensive income - 9,882 9,882
Balance at 31 March 2024 103,600 9,882 113,482

Morco Products Holdings Limited (Registered number: 14685129)

Consolidated Cash Flow Statement
for the year ended 31 March 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 4,993,460 6,375,095
Tax paid (1,330,306 ) (1,071,190 )
Net cash from operating activities 3,663,154 5,303,905

Cash flows from investing activities
Purchase of tangible fixed assets (1,846,122 ) (71,600 )
Sale of tangible fixed assets - 6,083
Payment to acquire minority interest (4,020,000 ) -
Interest received 402,209 146,528
Net cash from investing activities (5,463,913 ) 81,011

Cash flows from financing activities
Amount withdrawn by directors (4,335 ) -
Equity dividends paid - (188,798 )
Net cash from financing activities (4,335 ) (188,798 )

(Decrease)/increase in cash and cash equivalents (1,805,094 ) 5,196,118
Cash and cash equivalents at
beginning of year

2

13,147,368

7,951,250

Cash and cash equivalents at end of
year

2

11,342,274

13,147,368

Morco Products Holdings Limited (Registered number: 14685129)

Notes to the Consolidated Cash Flow Statement
for the year ended 31 March 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

2024 2023
£    £   
Profit before taxation 3,695,655 6,494,052
Depreciation charges 181,531 189,918
Profit on disposal of fixed assets - (6,083 )
Fair value adjustment to fixed assets 529,377 -
Finance income (402,209 ) (146,528 )
4,004,354 6,531,359
Decrease/(increase) in stocks 189,929 (37,735 )
Decrease/(increase) in trade and other debtors 2,709,055 (417,016 )
(Decrease)/increase in trade and other creditors (1,909,878 ) 298,487
Cash generated from operations 4,993,460 6,375,095

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2024
31.3.24 1.4.23
£    £   
Cash and cash equivalents 11,342,274 13,147,368
Year ended 31 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 13,147,368 7,951,250


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.23 Cash flow At 31.3.24
£    £    £   
Net cash
Cash at bank and in hand 13,147,368 (1,805,094 ) 11,342,274
13,147,368 (1,805,094 ) 11,342,274
Total 13,147,368 (1,805,094 ) 11,342,274

Morco Products Holdings Limited (Registered number: 14685129)

Notes to the Consolidated Financial Statements
for the year ended 31 March 2024

1. STATUTORY INFORMATION

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

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Basis of consolidation
The group financial statements consolidate the financial statements of 'morco Products Limited and its subsidiary undertaking drawn up to 31 March each year using the merger method of accounting, with the business combination representing a group reconstruction. No company Statement of Comprehensive Income is presented for Morco Group Holdings Limited as permitted by section 408 of the Companies Act 2006.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Sale of goods
Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods.

Interest and other income
Interest income is recognised using the effective interest method.

Tangible fixed assets
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Freehold property2% on cost
Long leaseholdOver the period remaining on the lease
Improvements to propertyStraight line over 10 to 20 years
Plant and Machinery33.33% on cost
Motor Vehicles 33.33% on cost

Morco Products Holdings Limited (Registered number: 14685129)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2024

2. ACCOUNTING POLICIES - continued

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the average cost method. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Taxation
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements, that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Foreign currency transactions are initially recognised applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate.

Leasing commitments
Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Morco Products Holdings Limited (Registered number: 14685129)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2024

2. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
When employees have rendered service to the company, short term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

Debtors and creditors receivable/payable within one year
Debtors and creditors with no stated interest rate, and are receivable or payable within one year, are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Impairment
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Investments
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through profit or loss if the shares are publicly traded or their value can otherwise be measured reliably. Other investments are measured at cost less impairment.

Business combinations
As permitted by FRS102, business combination meeting the definition of a group reconstruction are consolidated using merger accounting.

Under merger accounting, that carrying values of the assets and liabilities of Morco Products Limited and its subsidiary company are merged with those of Morco Products Holdings Limited. The results and cash flow of the consolidated entity are brought into the consolidated financial statements from the beginning of the financial year in which the combination occurs. The comparative information is also updated to reflect the combination.

Combinations not meeting the definition of a group reconstruction are accounted for using the purchase method.

Under the purchase method the assets and liabilities of acquired entities are adjusted to fair value at the date of acquisition. The difference between the consideration paid to acquire the entity and the fair value of the entity's assets is treated as goodwill and amortised to the income statement over its useful economic life. The results and cash flows od the acquired entity are brought in from the date of acquisition.

Morco Products Holdings Limited (Registered number: 14685129)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2024

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 19,421,694 27,641,852
Rest of the world 262,596 141,890
19,684,290 27,783,742

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 1,070,358 1,208,801
Social security costs 123,857 141,146
Other pension costs 161,991 25,627
1,356,206 1,375,574

The average number of employees during the year was as follows:
2024 2023

Office and administration 11 12
Sales and marketing 8 8
19 20

2024 2023
£    £   
Directors' remuneration 519,811 613,425
Directors' pension contributions to money purchase schemes 140,005 8,440

Information regarding the highest paid director is as follows:
2024 2023
£    £   
Emoluments etc 222,900 290,665
Pension contributions to money purchase schemes 7,966 7,164

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Other operating leases 85,312 97,500
Depreciation - owned assets 181,531 189,918
Profit on disposal of fixed assets - (6,083 )
Auditors' remuneration 9,215 6,900

Morco Products Holdings Limited (Registered number: 14685129)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2024

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 1,087,691 1,253,709

Deferred tax (5,976 ) (2,667 )
Tax on profit 1,081,715 1,251,042

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 3,695,655 6,494,052
Profit multiplied by the standard rate of corporation tax in the UK of
25 % (2023 - 19 %)

923,914

1,233,870

Effects of:
Expenses not deductible for tax purposes 3,658 718
Depreciation in excess of capital allowances 22,531 15,811
Adjustments to tax charge in respect of previous periods - 1,689
Tax provided at alternative rate (732 ) (1,046 )
Difference arising on consolidation adjustments 132,344 -
Total tax charge 1,081,715 1,251,042

Tax effects relating to effects of other comprehensive income

2024
Gross Tax Net
£    £    £   
Purchase of own shares (4,020,000 ) - (4,020,000 )
Cancellation of share capital 36,400 - 36,400
(3,983,600 ) - (3,983,600 )

7. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


Morco Products Holdings Limited (Registered number: 14685129)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2024

8. DIVIDENDS
2024 2023
£    £   
Ordinary A shares of £1 each
Interim - 122,798
Ordinary B shares of £1 each
Interim - 66,000
- 188,798

9. TANGIBLE FIXED ASSETS

Group
Improveme
Freehold Long to
property leasehold property
£    £    £   
COST
At 1 April 2023 - 609,846 704,456
Additions 1,778,986 1,333 9,509
Fair value adjustment - (611,179 ) (713,965 )
At 31 March 2024 1,778,986 - -
DEPRECIATION
At 1 April 2023 - 470,368 228,823
Charge for year - 61,034 35,542
Fair value adjustment - (531,402 ) (264,365 )
At 31 March 2024 - - -
NET BOOK VALUE
At 31 March 2024 1,778,986 - -
At 31 March 2023 - 139,478 475,633

Morco Products Holdings Limited (Registered number: 14685129)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2024

9. TANGIBLE FIXED ASSETS - continued

Group

Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 April 2023 810,652 189,179 2,314,133
Additions 56,294 - 1,846,122
Fair value adjustment - - (1,325,144 )
At 31 March 2024 866,946 189,179 2,835,111
DEPRECIATION
At 1 April 2023 729,601 138,218 1,567,010
Charge for year 49,259 35,696 181,531
Fair value adjustment - - (795,767 )
At 31 March 2024 778,860 173,914 952,774
NET BOOK VALUE
At 31 March 2024 88,086 15,265 1,882,337
At 31 March 2023 81,051 50,961 747,123

Company
Freehold
property
£   
COST
Additions 1,778,986
At 31 March 2024 1,778,986
NET BOOK VALUE
At 31 March 2024 1,778,986

10. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakin
£   
COST
Additions 103,600
At 31 March 2024 103,600
NET BOOK VALUE
At 31 March 2024 103,600


Morco Products Holdings Limited (Registered number: 14685129)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2024

10. FIXED ASSET INVESTMENTS - continued


The directors have considered if indicators of impairment were present at the balance sheet date and concluded that they were not.

The directors believe the carrying value of the investments are supported by their underlying net assets and future cashflows.

Details of subsidiary undertakings at the year end are as follows:

Name of company Holding Percentage
held
Nature of business

Morco Products Limited Ordinary shares 100 Supplier of LPG
heating and hot
water systems

Morco Gas Services Limited Ordinary shares 100 Dormant

The above entities were all acquired during the year via a share-for-share exchange transaction with the ultimate controlling party and are consolidated from the beginning of the comparative period using the merger method.

The registered address for each subsidiary is Morco House, Riverview Road, Beverley, East Yorkshire, HU17 0LD.

11. STOCKS

Group
2024 2023
£    £   
Stocks 3,363,242 3,553,171

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
2024 2023
£    £   
Trade debtors 3,627,517 6,268,128
Directors' current accounts 4,335 -
Prepayments 127,157 195,601
3,759,009 6,463,729

Morco Products Holdings Limited (Registered number: 14685129)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2024

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Trade creditors 1,055,365 2,610,564 - -
Amounts owed to group undertakings - - 1,779,793 -
Tax 450,594 693,209 2,318 -
Social security and other taxes 320,101 668,482 1,640 -
Accrued expenses 400,160 406,458 - -
2,226,220 4,378,713 1,783,751 -

14. PROVISIONS FOR LIABILITIES

Group
2024 2023
£    £   
Deferred tax 16,465 22,441

Group
Deferred
tax
£   
Balance at 1 April 2023 22,441
Credit to Income Statement during year (5,976 )
Balance at 31 March 2024 16,465

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
103,600 Ordinary A £1 - 103,600
36,400 Ordinary B £1 - 36,400
103,600 Ordinary £1 103,600 -
103,600 140,000

103,600 Ordinary shares of £1 each were allotted at par during the year in respect of the acquisition of the subsidiary companies via a share for share exchange. As the business combination has been accounted for using the merger method, the transaction is deemed to have occurred before the commencement of the comparative period for the purpose of the group accounts.

Morco Products Holdings Limited (Registered number: 14685129)

Notes to the Consolidated Financial Statements - continued
for the year ended 31 March 2024

16. RESERVES

Group
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 April 2023 19,170,237 200,000 19,370,237
Profit for the year 2,613,940 2,613,940
Purchase of own shares (4,020,000 ) 36,400 (3,983,600 )
At 31 March 2024 17,764,177 236,400 18,000,577

Company
Retained
earnings
£   

Profit for the year 9,882
At 31 March 2024 9,882


17. PENSION COMMITMENTS

The group makes payments to a defined contribution pension scheme for the benefit of its employees and directors. The pension cost charges represent contributions payable by the group and amounted to £161,991 (2023 - £25,627).

The amount outstanding at the year end is £3,028 (2023 - £3,134).

18. RELATED PARTY DISCLOSURES

During the year the company paid rents of £37,917 (2023 - £97,500) in respect of properties owned by key management personnel.

Key management personnel compensation in the year totalled £727,375 (2023 - £696,033).

Other related parties
2024 2023
£    £   
Purchases 1,700,000 -

19. ULTIMATE CONTROLLING PARTY

The controlling party is C R E Gillett.