Registration number:
for the
Year Ended 31 December 2023
M&E Global Resources Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
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Profit and Loss Account |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Notes to the Financial Statements |
M&E Global Resources Limited
Company Information
Directors |
S R Piper G Woodward |
Company secretary |
S R Piper |
Registered office |
|
Auditors |
|
M&E Global Resources Limited
Strategic Report for the Year Ended 31 December 2023
The directors present their strategic report for the year ended 31 December 2023.
Principal activity
The principal activity of the Company is a defence contractor.
Fair review of the business
The results for the year which are set out in the profit and loss account show turnover of £78,862,138 (2022 - £57,039,250) and an operating profit of £6,308,441 (2022 - £5,883,623). At 31 December 2023 the Company had net assets of £9,836,105 (2022 - £7,026,842).
The directors consider the performance for the year and the financial position at the year end to be satisfactory.
The company's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2023 |
2022 |
Turnover |
£'000 |
78,862 |
57,039 |
Operating profit |
£'000 |
6,308 |
5,884 |
Operating profit (excluding fair value gains/losses) |
£'000 |
7,691 |
4,532 |
Employer contractors |
809 |
689 |
Future developments
The Company has a strong order book with long terms contracts and is tracking a number of pipeline and potential re-bid opportunities to increase its customer base.
Section 172(1) statement
The Directors of the Company, as those of all UK companies, must act in accordance with a set of general duties which are detailed in section 172 of the Companies Act 2006. These duties include a duty by the Directors of the Company to act in a way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its shareholders as a whole and, in doing so, have had regard to and recognised the importance of considering all stakeholders and other matters (as set out in s.172(1)(a-f) of the Act) in its decision-making.
a) The likely consequences of any decision in the long term.
Our business plan was designed to have a long-term beneficial impact on the Company and to contribute to its success in delivering high-quality contracting solutions across the globe. All key decisions regarding the future of the Company are discussed in detail, at quarterly board meetings.
b) The interests of the Company’s employees.
We continually invest into apprenticeship schemes, training, development and wellbeing. We value our employees as our greatest asset, they are fundamental to the delivery of our plan and vision for the Company. The health, safety and wellbeing of our employees is always paramount when decisions are made across the business.
The Directors endeavour to create an environment where people can develop their skills and career and feel engaged and part of a successful business.
c) The need to foster the Company’s business relationships with contractors, suppliers, customers, and others.
To ensure we’re working with reputable suppliers who share our ethical and moral standards, we have robust procedures in place for assessing new suppliers. Further information on suppliers can be found in section 8 of our Business Ethics Policy, published on our website. This helps us build on our reputation for having a positive social and environmental impact and makes clear the high ethical standards that we operate. Interaction with our suppliers and treating suppliers fairly allows us to drive higher standards and reduce risk in our supply chain whilst benefitting from cost efficiencies and positive environmental outcomes.
A close working relationship with our customers is essential to being able to understand and provide them with market leading services they require. Our talented teams are dedicated to making sure we constantly challenge and improve what we do, providing confidence in quality delivery and compliance in everything we do. It is this
M&E Global Resources Limited
Strategic Report for the Year Ended 31 December 2023
experience, expertise and creativity that fulfils our customer’s needs and builds long term successful relationships.
d) The impact of the Company’s operations on the community and the environment.
By contributing to the wider society this enables us to create stronger communities and have a positive environmental impact. The Company's approach to environmental and social matters is of high importance and we play an active part in the local community by sponsoring sports clubs, donating to charitable events, as well as positive interaction by participation in local and wider area careers events for military service leavers.
Although our UK energy consumption levels are low, an energy reduction plan has been instigated to reduce head office consumption.
Travel to and from the sites where the work activities are undertaken is an essential element of the Company and its employees / contractors’ activities. Wherever possible, direct flights are arranged to minimise the distances travelled and where practical, economy seats are booked to reduce the per passenger impact associated with our employees.
e) The desirability of the Company maintaining a reputation for high standards of business conduct.
The board of directors ensure the business maintains the highest possible standard for business conduct. We have a Business Ethics Policy, which applies across the business and is reviewed regularly by the board. This covers, but isn’t limited to; human rights, workers’ rights, conflicts of interest, information and confidentiality, shareholders, bribery and corruption.
f) The need to act fairly between members of the Company.
As a long-standing privately owned business, the relationship between the Shareholders and Directors is very important and is a key influence on the future success of the business. The Directors provide information on Company strategy and performance, being always honest and transparent. Value is generated for shareholders by supporting the overall Company to deliver the business plan. Shareholders can ask questions regarding the business and are provided with a copy of the Annual Report and regular financial updates after quarterly Board meetings.
Principal risks and uncertainties
The Directors regularly monitor and assess the risks of the Company during regular monthly meetings. Steps are taken to mitigate risks as outlined below:
The financial performance of the Company is dependent upon the global strategic positioning of military equipment that requires servicing and maintenance. This will depend upon individual countries government policy.
The majority of the Company’s trade is overseas and therefore the Company has significant exposure to foreign currency exchange, which is managed and closely monitored. Hedging instruments are utilised where possible to protect the business from global market exchange risks.
The Company employs skilled engineers and logistics workers. There is a business risk regarding the supply and cost, due to wage inflation, of suitably skilled employees to fill roles. Management monitor and review contract prices to mitigate this risk as far as possible.
The Company is reliant on a small number of prime contractors. The Company maintains good relationships with these contractors and regularly tenders for new work.
Approved by the
Company secretary and director
M&E Global Resources Limited
Directors' Report for the Year Ended 31 December 2023
The directors present their report and the financial statements for the year ended 31 December 2023.
Directors of the company
The directors who held office during the year were as follows:
Matters covered in the strategic report
Information on the engagement with contractors, suppliers, customers and others is included in the strategic report in s172(1) statement. The Company's business environment and risks, together with details of monitoring undertaken by the directors and future developments are dealt with elsewhere in the Strategic Report.
Financial instruments
Objectives and policies
The Company's financial statements comprise cash and liquid resources, and various other items such as trade debtors, trade creditors that arise directly from operations. The main purpose of these financial instruments is to finance the operations of the Company. The main rises arising from the Company financial instruments are set out below.
Price risk, credit risk, liquidity risk and foreign exchange risk
Credit risk
The Company's principal financial assets are bank balances, cash, trade and other debtors. The Company's credit risk is primarily attributable to its trade receivables. The Company's policies are aimed at minimising such losses through satisfactory credit worthiness procedures. The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The Company aims to mitigate liquidity risk by managing cash generation by its operations and an invoice discounting facility. The Company constantly monitors the trading results to ensure that the Company can meet its future obligations as they fall due.
Price risk
Through careful monitoring of the Company’s market place and competitors the Company’s exposure to price risk is kept to a minimum.
Foreign exchange risk
The Company is exposed to foreign exchange risk as a large proportion of sales are made in US dollars. The Company aims to mitigate this by hedging foreign exchange risk through forward contracts where applicable.
Employment of disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the Company continues and that the appropriate training is arranged. It is the policy of the Company that the training, career development and promotion of disabled persons should, as afar as possible, be identical to that of other employees.
M&E Global Resources Limited
Directors' Report for the Year Ended 31 December 2023
Energy and Emissions Report
Under the Streamlined Energy and Carbon Reporting regulations the company must report annually on greenhouse gas emissions from scope 1 and scope 2 electricity, gas and transport. The report includes M&E Global (Staffing) Solutions Limited consolidated emissions as it is not practical to reasonably split emissions per entity.
2023 |
2022 |
|||
Energy consumption used to calculate emissions |
kWh |
30,610 |
29,547 |
|
Scope 1 emissions |
tonnes CO2e |
- |
- |
|
Scope 2 emissions |
tonnes CO2e |
6.30 |
5.70 |
|
Scope 3 emissions |
tonnes CO2e |
336.00 |
210.30 |
|
Total greenhouse emissions |
tonnes CO2e |
342.00 |
216.00 |
|
Greenhouse gas emission per thousand kilometres travelled |
tonnes CO2e |
0.207 |
0.179 |
|
Data is provided as tonnes of carbon dioxide equivalent (C02e) for all operations. The Company does not incur any scope 1 emissions. Scope 2 emissions are from purchased electricity at the Company’s head office and scope 3 emissions are from employee travel. The Company’s chosen intensity ratio is emissions per kilometre travelled.
The report data has been collated internally with the assistance of a consultant. The data used to establish the emissions reported was obtained from supplier invoices, half hourly electricity data and fuel and milage records maintained by the Company. Conversion of energy use to CO2e has been calculated using the UK Government GHG Conversion Factors for Company Reporting, published by BEIS and DEFRA.
We have reported on the emissions sources required under the Companies Act 2006 (Strategic Report and Directors Report) Regulations 2013.
UK energy consumption levels remain low, and there is an ongoing energy reduction plan to improve the head office consumption relative to the volume of work undertaken. The business endeavours to make use of virtual meeting wherever possible and this method of communication is used unless site visits are absolutely necessary. Car sharing is also actively encouraged whenever there is a need for more than one person to travel to the same location. Travel to and from the sites where the work activities are undertaken is an essential element of the companies and its employees / contractors’ activities. Wherever possible, direct flights are arranged to minimise the kilometres travelled and where practical, economy seats are booked to reduce the per passenger impact associated with our employees.
Going concern
The directors have prepared forecast information which considers the ongoing challenges with its reliance on key customer contracts, in particular, the APS-2 contract, which underpins significant revenue in the forecasts. The contract was recently retendered under the LOGCAP V Program and is likely to transition away from the EAGLE Program, however, this has currently been extended until November 2025. The business continues to offer value added and competitive solutions and has established robust businesses in Germany and Poland to meet the future requirements of this and other projects and remains confident that it will continue to be the selected partner on these key contracts but has also modelled its business to scale down costs, where required to do so. In making this assessment management have taken into consideration current and future contracted revenue and the cost base of the business. The forecasts indicate that the company will remain within its existing facilities and have sufficient resources to enable the company to trade for a period of at least 12 months post signing of the financial statements. Based on this information, the directors consider it appropriate to prepare the financial statements on a going concern basis.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
M&E Global Resources Limited
Directors' Report for the Year Ended 31 December 2023
Directors' liabilities
The Company has indemnified, by means of directors’ and officers’ liability insurance, the Directors of the Company against liability in respect of proceedings brought by third parties, subject to the conditions set out in section 234 of the Companies Act. Such qualifying third party indemnity provision was in force during the year and is in force at the date of approving the Directors’ Report.
Reappointment of auditors
Hazlewoods LLP have expressed their willingness to continue in office.
Approved by the
Company secretary and director
M&E Global Resources Limited
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 apply them consistently; |
• | make judgements and accounting estimates that are reasonable and prudent; |
• | state whether applicable UK Accounting Standards has been followed, subject to any material departures disclosed and explained in the financial statements; and |
• | 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.
M&E Global Resources Limited
Independent Auditor's Report to the Members of M&E Global Resources Limited
Opinion
We have audited the financial statements of M&E Global Resources Limited (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and 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 company's affairs as at 31 December 2023 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
M&E Global Resources Limited
Independent Auditor's Report to the Members of M&E Global Resources Limited
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
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, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 7, 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’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
In common with all audits conducted in accordance with ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
• |
reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
• |
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud; |
M&E Global Resources Limited
Independent Auditor's Report to the Members of M&E Global Resources Limited
• |
enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and |
• |
reading minutes of meetings of those charged with governance. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of this 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’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
For and on behalf of
Staverton Court
Staverton
GL51 0UX
M&E Global Resources Limited
Profit and Loss Account for the Year Ended 31 December 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar charges |
( |
( |
|
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no other comprehensive income for the year.
M&E Global Resources Limited
(Registration number: 07286894)
Balance Sheet as at 31 December 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Intangible assets |
- |
- |
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
Approved and authorised by the
Company secretary and director
M&E Global Resources Limited
Statement of Changes in Equity for the Year Ended 31 December 2023
Share capital |
Profit and loss account |
Total |
|
At 1 January 2023 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 31 December 2023 |
|
|
|
Share capital |
Profit and loss account |
Total |
|
At 1 January 2022 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 31 December 2022 |
|
|
|
M&E Global Resources Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the Company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Summary of disclosure exemptions
M & E Global Resources Limited meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its financial statements. Exemptions have been taken in relation to financial instruments and presentation of a cash flow statement.
Name of parent of group
These financial statements are consolidated in the financial statements of M & E Global (Staffing) Solutions Limited.
The financial statements of M & E Global (Staffing) Solutions Limited may be obtained from companies house.
Going concern
The directors have prepared forecast information which considers the ongoing challenges with its reliance on key customer contracts, in particular, the APS-2 contract, which underpins significant revenue in the forecasts. The contract was recently retendered under the LOGCAP V Program and is likely to transition away from the EAGLE Program, however, this has currently been extended until November 2025. The business continues to offer value added and competitive solutions and has established robust businesses in Germany and Poland to meet the future requirements of this and other projects and remains confident that it will continue to be the selected partner on these key contracts but has also modelled its business to scale down costs, where required to do so. In making this assessment management have taken into consideration current and future contracted revenue and the cost base of the business. The forecasts indicate that the company will remain within its existing facilities and have sufficient resources to enable the company to trade for a period of at least 12 months post signing of the financial statements. Based on this information, the directors consider it appropriate to prepare the financial statements on a going concern basis.
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 amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
M&E Global Resources Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Judgements
No significant judgements have been made by management in preparing these financial statements. |
Key sources of estimation uncertainty
No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Fixtures and fittings |
25% straight line |
Computer equipment |
25% straight line |
Intangible assets
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the Company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.
M&E Global Resources Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
20% straight line |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the Company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
M&E Global Resources Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Financial instruments
Classification
Recognition and measurement
Impairment
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
M&E Global Resources Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Revenue |
The analysis of the company's revenue for the year from continuing operations is as follows:
2023 |
2022 |
|
Rendering of services |
|
|
The analysis of the company's turnover for the year by market is as follows:
2023 |
2022 |
|
Europe |
|
|
Rest of world |
|
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2023 |
2022 |
|
Management charges received |
|
|
Operating profit |
Arrived at after charging/(crediting):
2023 |
2022 |
|
Depreciation expense |
|
|
Foreign exchange (gains)/losses |
( |
|
Operating lease expense - property |
|
|
Operating lease expense - other |
3,120 |
3,120 |
Fair value (gain)/loss on financial derivatives |
1,382,261 |
(1,351,668) |
Other interest receivable and similar income |
2023 |
2022 |
|
Interest income |
|
|
Interest payable and similar expenses |
2023 |
2022 |
|
Other interest payable |
|
|
M&E Global Resources Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
44,978,184 |
35,541,201 |
Social security costs |
2,483,191 |
1,970,082 |
Pension costs, defined contribution scheme |
38,279 |
35,312 |
47,499,654 |
37,546,595 |
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2023 |
2022 |
|
Administration and support |
|
|
Employee contractors |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
|
|
During the year the number of directors who were receiving benefits and share incentives was as follows:
2023 |
2022 |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
2023 |
2022 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
Auditors' remuneration |
2023 |
2022 |
|
Audit of the financial statements |
|
|
Taxation |
6,750 |
6,000 |
Non-audit services |
|
|
|
|
M&E Global Resources Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Taxation |
Tax charged in the profit and loss account
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
- |
|
1,513,831 |
1,111,939 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Effect of tax rate change on opening balance |
- |
662 |
Total deferred taxation |
|
|
Tax expense in the profit & loss statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
2022 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Tax increase (decrease) from effect of capital allowances and depreciation |
- |
(259) |
Effect of expense not deductible in determining taxable profit (tax loss) |
12,634 |
414 |
Increase (decrease) in UK and foreign current tax from adjustment for prior periods |
- |
483 |
Deferred tax expense (credit) from unrecognised temporary difference from a prior period |
- |
662 |
UK deferred tax expense (credit) relating to changes in tax rates or laws |
- |
1,730 |
Tax increase (decrease) arising from group relief |
- |
(720) |
Total tax charge |
|
|
Deferred tax
Deferred tax assets and liabilities
2023 |
Liability |
Fixed asset timing differences |
( |
Short term timing differences |
|
( |
2022 |
Liability |
Fixed asset timing differences |
( |
Short term timing differences |
|
( |
M&E Global Resources Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Intangible assets |
Goodwill |
|
Cost |
|
At 1 January 2023 |
|
Amortisation |
|
At 1 January 2023 |
|
Carrying amount |
|
At 31 December 2023 |
- |
Tangible assets |
Fixtures and fittings |
Computer equipment |
Total |
|
Cost |
|||
At 1 January 2023 |
|
|
|
Additions |
|
|
|
At 31 December 2023 |
|
|
|
Depreciation |
|||
At 1 January 2023 |
|
|
|
Charge for the year |
|
|
|
At 31 December 2023 |
|
|
|
Carrying amount |
|||
At 31 December 2023 |
|
|
|
At 31 December 2022 |
|
|
|
Debtors |
2023 |
2022 |
|
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Other debtors |
|
|
Prepayments |
|
|
Derivative financial instruments |
|
|
Corporation tax asset |
360,368 |
325,926 |
|
|
M&E Global Resources Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Cash and cash equivalents |
2023 |
2022 |
|
Cash on hand |
|
|
Cash at bank |
|
|
|
|
|
Bank overdrafts |
- |
( |
Cash and cash equivalents |
4,768,717 |
3,689,809 |
Cash at bank includes an invoice discounting facility in a surplus of £878,551 (2022 - £1,759,184). This facility is secured against particular trade debtors of the company.
Creditors |
2023 |
2022 |
|
Due within one year |
||
Loans and borrowings |
- |
|
Trade creditors |
|
|
Amounts due to group undertakings |
|
|
Social security and other taxes |
|
|
Outstanding defined contribution pension costs |
|
|
Other creditors |
|
|
Accrued expenses |
|
|
|
|
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
135,100 |
|
135,100 |
Reserves |
Called up share capital
This represents the nominal value of the issued share capital
Profit and loss account
This represents the cumulative profit or losses, net of dividends and other adjustments.
Obligations under operating leases |
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
M&E Global Resources Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Dividends |
2023 |
2022 |
|
Dividends declared |
|
|
Related party transactions |
Summary of transactions with group undertakings
Amounts due from/to group undertakings are disclosed in note 14 and 16 of these financial statements.
Summary of transactions of Companies with Directors in common
During the year, the company was charged rent of £38,500 (2022 - £38,500) and property service charges of £2,140 (2022 - £1,981) from companies with directors in common. At the balance sheet date the amount due to these companies was £nil (2022 - £nil).
Parent and ultimate parent undertaking |
The company's ultimate parent is M & E Global (Staffing) Solutions Limited which is controlled by The Trustees of the Gary Attwood Discretionary Will Trust.