REGISTERED NUMBER: 01501427 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
FOR |
MARCHINGTON GROUP LIMITED |
REGISTERED NUMBER: 01501427 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
FOR |
MARCHINGTON GROUP LIMITED |
MARCHINGTON GROUP LIMITED (REGISTERED NUMBER: 01501427) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
MARCHINGTON GROUP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 APRIL 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors and Chartered Accountants |
5 Brooklands Place |
Brooklands Road |
Sale |
Cheshire |
M33 3SD |
MARCHINGTON GROUP LIMITED (REGISTERED NUMBER: 01501427) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 APRIL 2024 |
The directors present their strategic report of the company and the group for the year ended 30 April 2024. |
REVIEW OF BUSINESS |
Strategy |
The strategy of the company is to maintain profitable trading and growth through its main activities of the production and sale of Construction Aggregates, Sand, Gravel and Block stone. |
Our commitment to the health, safety and wellbeing of our employees and contractors remains paramount. We aim to minimise our impact on the environment and provide a safe and high quality service to our customers. |
The business has retained its accreditations for ISO 9001 (Quality), ISO 14001 (Environmental Management) and ISO 45001 (Health & Safety) and are committed to continual improvement across these standards. We have further committed to develop our IT system to streamline our delivery service and related administrative processes. |
We have calculated our carbon footprint and have established a roadmap to Net Zero. We continue to purchase energy from 100% renewable sources, are investigating alternative energy sources for our offices and plant and have maintained the number of hybrid vehicles for our motor fleet. |
The results for the year and financial position for the company are set out in the financial statements and the directors anticipate that profitable operation will continue in the future. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The cancellation of HS2 and other infrastructure projects within the region has seen output reduce throughout the industry and increased pressure on an already competitive market. This has affected every aspect of the construction supply chain. The business has focused on maintaining a diverse customer base which has mitigated much of the reduction in demand. |
Fuel/Energy Costs |
Whilst the cost of fuel has stabilised, this continues to significantly affect our haulage cost and quarry operations. |
Mineral resources/planning |
Mineral resources are finite and governed by robust planning conditions. Our quarrying operations are secure with long term planning in place. |
The Economy and its effect on the construction sector |
As expected, general construction activity slowed during the year. The Housing market is forecast to recover as interest rates fall which will be reflected in a reduction of mortgage rates. A change of Government in July will also potentially bring more confidence to the market with forecast changes to the planning system and a promise of increased house building. |
Credit Risk |
Relatively high interest rates continue to put pressure on companies. We have continued to see businesses stretch their terms, both credit limits and debtor days. We credit check potential and existing customers and continue to apply robust policies and procedures in all aspects of our credit control process. |
Financial |
The company is governed by a robust set of financial KPIs that are relevant to the industry. These are continuously monitored and the Directors are satisfied with the company's performance. |
MARCHINGTON GROUP LIMITED (REGISTERED NUMBER: 01501427) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 APRIL 2024 |
FUTURE DEVELOPMENTS |
The company is committed to the acquisition of further sites for mineral extraction and processing in order to maintain a sustainable and continuous supply of materials to our customers. |
ON BEHALF OF THE BOARD: |
19 November 2024 |
MARCHINGTON GROUP LIMITED (REGISTERED NUMBER: 01501427) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 APRIL 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 April 2024. |
DIVIDENDS |
A dividend of £300,000 (2023: £300,000) was paid in the year. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 May 2023 to the date of this report. |
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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MARCHINGTON GROUP LIMITED |
Opinion |
We have audited the financial statements of Marchington Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 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 30 April 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 |
MARCHINGTON GROUP 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 four, 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 |
MARCHINGTON GROUP 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: |
As part of our planning process: |
- We enquired of management the systems and controls the group and parent company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. |
- We obtained an understanding of the legal and regulatory frameworks applicable to the group and parent company. We determined that the following were most relevant: FRS 102, Companies Act 2006, health and safety, and employment law. |
- We considered the incentives and opportunities that exist in the group and parent company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly. |
- Using our knowledge of the group and parent company, together with the discussions held with management at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment. |
The key procedures we undertook to detect irregularities including fraud during the course of the audit included: |
- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual. |
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied. |
- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates. |
- Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entities ability to continue in operation. |
- Testing key revenue lines, in particular cut-off, for evidence of management bias. |
- Obtaining third-party confirmation of material bank balances. |
- Documenting and verifying all significant related party and consolidated balances and transactions. |
- Reviewing documentation such as board minutes for discussions of irregularities including fraud, |
- Testing all material consolidation adjustments. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors and management. |
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 |
MARCHINGTON GROUP 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. |
for and on behalf of |
Statutory Auditors and Chartered Accountants |
5 Brooklands Place |
Brooklands Road |
Sale |
Cheshire |
M33 3SD |
MARCHINGTON GROUP LIMITED (REGISTERED NUMBER: 01501427) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 | 35,281,753 | 34,547,271 |
Cost of sales | (30,569,795 | ) | (29,935,553 | ) |
GROSS PROFIT | 4,711,958 | 4,611,718 |
Distribution costs | (803,329 | ) | (772,232 | ) |
Administrative expenses | (1,986,778 | ) | (2,052,764 | ) |
1,921,851 | 1,786,722 |
Other operating income | 64,470 | 76,660 |
OPERATING PROFIT | 5 | 1,986,321 | 1,863,382 |
Interest receivable and similar income | 257,732 | 21,237 |
PROFIT BEFORE TAXATION | 2,244,053 | 1,884,619 |
Tax on profit | 6 | (573,063 | ) | (382,829 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,670,990 | 1,501,790 |
MARCHINGTON GROUP LIMITED (REGISTERED NUMBER: 01501427) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,670,990 | 1,501,790 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,670,990 |
1,501,790 |
Total comprehensive income attributable to: |
Owners of the parent | 1,670,990 | 1,501,790 |
MARCHINGTON GROUP LIMITED (REGISTERED NUMBER: 01501427) |
CONSOLIDATED BALANCE SHEET |
30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 | 1,688,777 | 2,320,966 |
Investments | 10 | - | - |
Investment property | 11 | 463,526 | - |
2,152,303 | 2,320,966 |
CURRENT ASSETS |
Debtors | 12 | 6,345,033 | 7,013,612 |
Cash at bank and in hand | 8,529,535 | 6,651,854 |
14,874,568 | 13,665,466 |
CREDITORS |
Amounts falling due within one year | 13 | 6,686,789 | 6,961,602 |
NET CURRENT ASSETS | 8,187,779 | 6,703,864 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
10,340,082 |
9,024,830 |
PROVISIONS FOR LIABILITIES | 16 | 132,569 | 188,307 |
NET ASSETS | 10,207,513 | 8,836,523 |
CAPITAL AND RESERVES |
Called up share capital | 17 | 4,002 | 4,002 |
Capital reserve | 18 | 117,840 | 117,840 |
Retained earnings | 18 | 10,085,671 | 8,714,681 |
SHAREHOLDERS' FUNDS | 10,207,513 | 8,836,523 |
The financial statements were approved by the Board of Directors and authorised for issue on 19 November 2024 and were signed on its behalf by: |
A D Marchington - Director |
J M Marchington - Director |
MARCHINGTON GROUP LIMITED (REGISTERED NUMBER: 01501427) |
COMPANY BALANCE SHEET |
30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
Investment property | 11 |
CURRENT ASSETS |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,359,555 | 1,663,882 |
The financial statements were approved by the Board of Directors and authorised for issue on |
MARCHINGTON GROUP LIMITED (REGISTERED NUMBER: 01501427) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 APRIL 2024 |
Called up |
share | Retained | Capital | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 May 2022 | 4,002 | 7,512,891 | 117,840 | 7,634,733 |
Changes in equity |
Dividends | - | (300,000 | ) | - | (300,000 | ) |
Total comprehensive income | - | 1,501,790 | - | 1,501,790 |
Balance at 30 April 2023 | 4,002 | 8,714,681 | 117,840 | 8,836,523 |
Changes in equity |
Dividends | - | (300,000 | ) | - | (300,000 | ) |
Total comprehensive income | - | 1,670,990 | - | 1,670,990 |
Balance at 30 April 2024 | 4,002 | 10,085,671 | 117,840 | 10,207,513 |
MARCHINGTON GROUP LIMITED (REGISTERED NUMBER: 01501427) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 APRIL 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 May 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 April 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 April 2024 |
MARCHINGTON GROUP LIMITED (REGISTERED NUMBER: 01501427) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,551,270 | 1,111,556 |
Tax paid | (465,028 | ) | (160,857 | ) |
Net cash from operating activities | 2,086,242 | 950,699 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (171,759 | ) | (517,826 | ) |
Sale of tangible fixed assets | 65,001 | 86,200 |
Interest received | 257,732 | 21,237 |
Net cash from investing activities | 150,974 | (410,389 | ) |
Cash flows from financing activities |
Amount introduced by directors | - | 52,742 |
Amount withdrawn by directors | (59,535 | ) | - |
Equity dividends paid | (300,000 | ) | (300,000 | ) |
Net cash from financing activities | (359,535 | ) | (247,258 | ) |
Increase in cash and cash equivalents | 1,877,681 | 293,052 |
Cash and cash equivalents at beginning of year |
2 |
6,651,854 |
6,358,802 |
Cash and cash equivalents at end of year | 2 | 8,529,535 | 6,651,854 |
MARCHINGTON GROUP LIMITED (REGISTERED NUMBER: 01501427) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 2,244,053 | 1,884,619 |
Depreciation charges | 284,898 | 330,744 |
Loss/(profit) on disposal of fixed assets | 523 | (52,045 | ) |
Finance income | (257,732 | ) | (21,237 | ) |
2,271,742 | 2,142,081 |
Decrease/(increase) in trade and other debtors | 668,579 | (1,178,548 | ) |
(Decrease)/increase in trade and other creditors | (389,051 | ) | 148,023 |
Cash generated from operations | 2,551,270 | 1,111,556 |
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 30 April 2024 |
30/4/24 | 1/5/23 |
£ | £ |
Cash and cash equivalents | 8,529,535 | 6,651,854 |
Year ended 30 April 2023 |
30/4/23 | 1/5/22 |
£ | £ |
Cash and cash equivalents | 6,651,854 | 6,358,802 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/5/23 | Cash flow | At 30/4/24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 6,651,854 | 1,877,681 | 8,529,535 |
6,651,854 | 1,877,681 | 8,529,535 |
Debt |
Finance leases | - | (10,000 | ) | (10,000 | ) |
- | (10,000 | ) | (10,000 | ) |
Total | 6,651,854 | 1,867,681 | 8,519,535 |
MARCHINGTON GROUP LIMITED (REGISTERED NUMBER: 01501427) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
1. | STATUTORY INFORMATION |
Marchington Group Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 01501427 and the registered office is 105 Buxton Road, High Lane, Stockport, Cheshire, SK6 8DX. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The functional and presentation currency is £ sterling. |
Basis of consolidation |
The group accounts include the audited accounts of the company and its wholly owned subsidiaries made up to 30 April. Subsidiaries are included from the date of acquisition. |
Critical accounting 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. |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. |
Trade debtors recoverability |
Amounts recoverable on trade debtors are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses. The directors make estimates as to the recoverability of these debts and provide for them accordingly. |
Provisions |
A provision is recognised in the balance sheet when the entity has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
MARCHINGTON GROUP LIMITED (REGISTERED NUMBER: 01501427) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. |
At each balance sheet date the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. |
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately. |
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately. |
Investment property |
Investment property is revalued annually and included in the balance sheet at its open market value, which is estimated by the directors. Changes in the market value are taken to the income statement. |
Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Basic financial assets, which include trade debtors, amounts receivable from group companies 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. Financial assets classified as receivable within one year are not amortised. |
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. |
Basic financial liabilities, including trade creditors, other creditors, and directors loan accounts 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 are derecognised when, and only when, the company's contractual obligations are discharged, cancelled, or they expire. |
MARCHINGTON GROUP LIMITED (REGISTERED NUMBER: 01501427) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
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. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Going concern |
At 30 April 2024 the group had made a profit for the year of £1,670,990 and had net assets of £10,207,513. The company and group have healthy cash reserves and having considered the current trading and future expectations, the directors are confident the company and group will continue to trade profitably in future periods and generate sufficient cash flows to meet its obligations as they fall due for payment. The accounts have therefore been prepared on the going concern basis. |
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 | 35,281,753 | 34,547,271 |
35,281,753 | 34,547,271 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 1,576,802 | 1,605,177 |
Social security costs | 206,192 | 204,243 |
Other pension costs | 58,014 | 112,895 |
1,841,008 | 1,922,315 |
MARCHINGTON GROUP LIMITED (REGISTERED NUMBER: 01501427) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2024 | 2023 |
Administration | 21 | 22 |
Selling and distribution | 6 | 6 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 760,044 | 749,825 |
Directors' pension contributions to money purchase schemes | 10,928 | 10,609 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 269,150 | 264,032 |
Pension contributions to money purchase schemes | 5,464 | 5,305 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets | 284,899 | 330,744 |
Loss/(profit) on disposal of fixed assets | 523 | (52,045 | ) |
Auditors' remuneration | 15,000 | 15,000 |
Auditors' remuneration for non-audit services | 18,900 | 19,320 |
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 | 628,801 | 321,209 |
Deferred tax | (55,738 | ) | 61,620 |
Tax on profit | 573,063 | 382,829 |
MARCHINGTON GROUP LIMITED (REGISTERED NUMBER: 01501427) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
6. | TAXATION - continued |
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 | 2,244,053 | 1,884,619 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19.493 %) |
561,013 |
367,369 |
Effects of: |
Expenses not deductible for tax purposes | 12,488 | 12,669 |
Capital allowances in excess of depreciation | (56,177 | ) | (58,829 | ) |
Deferred tax | 55,739 | 61,620 |
Total tax charge | 573,063 | 382,829 |
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. |
8. | DIVIDENDS |
Dividends paid in the year amounted to £300,000 (2023 - £300,000). |
MARCHINGTON GROUP LIMITED (REGISTERED NUMBER: 01501427) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
9. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 May 2023 | 1,746,362 | 1,544,989 | 348,409 |
Additions | 1,722 | 28,890 | 317 |
Disposals | - | (53,768 | ) | (108,767 | ) |
Reclassification/transfer | (507,163 | ) | - | - |
At 30 April 2024 | 1,240,921 | 1,520,111 | 239,959 |
DEPRECIATION |
At 1 May 2023 | 370,200 | 891,610 | 266,498 |
Charge for year | 24,907 | 167,016 | 11,896 |
Eliminated on disposal | - | (50,742 | ) | (105,846 | ) |
Reclassification/transfer | (43,637 | ) | - | - |
At 30 April 2024 | 351,470 | 1,007,884 | 172,548 |
NET BOOK VALUE |
At 30 April 2024 | 889,451 | 512,227 | 67,411 |
At 30 April 2023 | 1,376,162 | 653,379 | 81,911 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 May 2023 | 436,642 | 131,052 | 4,207,454 |
Additions | 150,513 | 317 | 181,759 |
Disposals | (114,151 | ) | (56,768 | ) | (333,454 | ) |
Reclassification/transfer | - | - | (507,163 | ) |
At 30 April 2024 | 473,004 | 74,601 | 3,548,596 |
DEPRECIATION |
At 1 May 2023 | 240,458 | 117,722 | 1,886,488 |
Charge for year | 71,780 | 9,300 | 284,899 |
Eliminated on disposal | (54,575 | ) | (56,768 | ) | (267,931 | ) |
Reclassification/transfer | - | - | (43,637 | ) |
At 30 April 2024 | 257,663 | 70,254 | 1,859,819 |
NET BOOK VALUE |
At 30 April 2024 | 215,341 | 4,347 | 1,688,777 |
At 30 April 2023 | 196,184 | 13,330 | 2,320,966 |
MARCHINGTON GROUP LIMITED (REGISTERED NUMBER: 01501427) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
9. | TANGIBLE FIXED ASSETS - continued |
Group |
On 1 December 2020, properties that were held by Marchington Stone Limited were transferred to companies within the group at their net book value. |
In the Consolidated accounts the properties are shown at their historic cost. |
There is therefore a variance between the cost of properties shown in the individual company accounts and the consolidated accounts, this is due to the accumulated depreciation at the date of transfer. |
Company |
Freehold | Plant and |
property | machinery | Totals |
£ | £ | £ |
COST |
At 1 May 2023 |
Additions |
Reclassification/transfer | ( |
) | ( |
) |
At 30 April 2024 |
DEPRECIATION |
At 1 May 2023 |
Charge for year |
Reclassification/transfer | ( |
) | ( |
) |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
10. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 May 2023 |
and 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
MARCHINGTON GROUP LIMITED (REGISTERED NUMBER: 01501427) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
10. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Stockport |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Stockport |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Stockport |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 105, Buxton Road, High Lane, Stockport, Cheshire, SK6 8DX |
Nature of business: |
% |
Class of shares: | holding |
Shire Hill Quarries (Operations) LTD |
Registered office: 105, Buxton Road, High Lane, Stockport, Cheshire, SK6 8DX |
Nature of business: Quarrying of ornamental and building stone. |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Shire Hill Quarries (Operations) Limited is a 100% subsidiary of Shire Hill Quarries Limited. |
MARCHINGTON GROUP LIMITED (REGISTERED NUMBER: 01501427) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
11. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
Reclassification/transfer | 463,526 |
At 30 April 2024 | 463,526 |
NET BOOK VALUE |
At 30 April 2024 | 463,526 |
Company |
Total |
£ |
FAIR VALUE |
Reclassification/transfer | 463,526 |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At the year end, £463,526 was reclassified to investment property from freehold property at fair value. The properties were valued after the year end but before the date of this report by N M Hunter MRICS, of Edwards Property Consultants using industry standard valuation methods. At 30 April 2024, the directors consider that the market value is not materially different to the fair value transferred to investment properties. |
12. | DEBTORS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 6,057,825 | 6,828,008 |
Other debtors | 17,167 | 15,581 |
Amounts receivable from group company | - | - | 488 | 39,856 |
Prepayments | 246,603 | 167,106 |
6,321,595 | 7,010,695 |
Amounts falling due after more than one | year: |
Other debtors | 23,438 | 2,917 |
Aggregate amounts | 6,345,033 | 7,013,612 |
MARCHINGTON GROUP LIMITED (REGISTERED NUMBER: 01501427) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Hire purchase contracts (see note 14) | 10,000 | - |
Trade creditors | 4,882,387 | 5,116,565 |
Tax | 353,724 | 189,951 |
Social security and other taxes | 233,305 | 267,951 |
Other creditors | 9,820 | 14,971 |
Amounts payable to group | - | - | 1 | 1 |
Directors' current accounts | 298,530 | 358,065 | - | - |
Accrued expenses | 899,023 | 1,014,099 |
6,686,789 | 6,961,602 |
14. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 10,000 | - |
15. | FINANCIAL INSTRUMENTS |
2024 | 2023 |
£ | £ |
Group |
Carrying amount of financial assets | 14,627,965 | 13,498,360 |
Carrying amount of financial liabilities | 5,200,737 | 5,489,566 |
Financial assets measured at transaction price comprise cash and cash equivalents, trade debtors and other debtors. |
Financial liabilities measured at transaction price comprise trade creditors, other creditors and director loan account balances. |
Company: |
At 30 April 2024 equity instruments measured at cost less impairment £15,078 (2023: £15,078). |
16. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax | 132,569 | 188,307 |
MARCHINGTON GROUP LIMITED (REGISTERED NUMBER: 01501427) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
16. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 May 2023 | 188,307 |
Utilised during year | (55,738 | ) |
Balance at 30 April 2024 | 132,569 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 4,002 | 4,002 |
18. | RESERVES |
Group |
Retained | Capital |
earnings | reserve | Totals |
£ | £ | £ |
At 1 May 2023 | 8,714,681 | 117,840 | 8,832,521 |
Profit for the year | 1,670,990 | - | 1,670,990 |
Dividends | (300,000 | ) | - | (300,000 | ) |
At 30 April 2024 | 10,085,671 | 117,840 | 10,203,511 |
Company |
Retained |
earnings |
£ |
At 1 May 2023 |
Profit for the year |
Dividends | ( |
) |
At 30 April 2024 |
19. | PENSION COMMITMENTS |
The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £58,014 (2023 : £112,895). At 30 April 2024 contributions of £5,893 (2023: £6,561) were outstanding and included within other creditors. |
MARCHINGTON GROUP LIMITED (REGISTERED NUMBER: 01501427) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
20. | RELATED PARTY DISCLOSURES |
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. |
Dividends of £300,000 (2023: £300,000) were paid to directors during the year. |
At 30 April 2024 the group owed two directors £298,530 (2023: £358,065). The loan is interest free and repayable on demand. |
During the year, a total of key management personnel compensation of £ 850,824 (2023 - £ 842,539 ) was paid. |
Key management personnel are Directors of the Group or its subsidiary companies. |
21. | ULTIMATE CONTROLLING PARTY |
In the directors opinion, there is no single party who has ultimate control of the group. |