REGISTERED NUMBER: 14891853 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
for |
Miller Knight Group Holdings Ltd |
REGISTERED NUMBER: 14891853 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
for |
Miller Knight Group Holdings Ltd |
Miller Knight Group Holdings Ltd (Registered number: 14891853) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Profit and Loss Account | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 |
Miller Knight Group Holdings Ltd |
Company Information |
for the Year Ended 31 March 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants |
The Mills |
Canal Street |
Derby |
DE1 2RJ |
Miller Knight Group Holdings Ltd (Registered number: 14891853) |
Group Strategic Report |
for the Year Ended 31 March 2024 |
The directors present their strategic report of the company and the group for the year ended 31 March 2024. |
REVIEW OF BUSINESS |
The last 12 months has continued the trend of exceptional profitable growth for the group with a more than 60% increase in turnover. Our unique positioning as a passive fire protection specialist with considerable experience as a principal contractor continues to be the main enabler to this growth. |
Over the year, we have further increased our strong reputation for quality and customer focus and remain confident of the ability to secure future workload from the fire remedial market. |
We have also seen growth in our regional construction refurbishment and regeneration sector focussed around the Midlands. |
As mentioned in previous strategic reports, our people are everything and our desire to reward them for their contribution has allowed us to maintain exceptionally high retention rates and attract new talent. |
Key Performance Indicators |
The group uses a number of key performance indicators to track our performance and assist us in remaining responsive to any changes in market conditions. This enables us to achieve our short and long term aspirations for the group. |
The key indicators for the period are as follows: |
31/03/2024 | 31/03/2023 |
£ | £ |
Turnover | 24,167,708 | 16,290,102 |
Gross profit | 10,923,086 | 7,021,067 |
Profit before tax | 6,596,488 | 3,823,312 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Our ability to identify and effectively manage risk is a vital part of the Group's continued success. Control measures and strategies to reduce the impact of risk are agreed as a Board and implemented where possible. The directors have identified the following key business risks that could have a material impact on the company and Group's future performance along with the controls in place to manage said risk: |
Health and safety risk: as a contractor involved in construction operations, our activities are potentially hazardous. Failure to manage this risk could result in injury to employees, subcontractors, or members of the public. This could expose the company to significant potential liability and reputational damage. Health and safety is our number one priority and we have clear and comprehensive processes in place, accredited to BS EN ISO 45001, to minimise such risks. We constantly review and monitor our safety performance and adopt a policy of continuous improvement to actively reduce the risk. |
Financial risk: the company's and Group's principal financial instruments comprise the operational bank accounts and short-term deposit accounts. The directors have maintained a conservative approach to dividends coupled with excellent financial control to ensure that cash reserves remain suitable for the continued growth of the company without the need for potentially expensive external financing. |
Market risk: the UK economy continues to remain somewhat stagnant with low growth and in the construction industry, this has the potential of causing a downward pressure on tender prices and reduced margins. Our focus on the specialist area of fire safety minimises this risk along with shrewd decisions as to which refurbishment and regeneration projects to focus on. |
Miller Knight Group Holdings Ltd (Registered number: 14891853) |
Group Strategic Report |
for the Year Ended 31 March 2024 |
Inflation risk: inflation on both wages and construction materials has improved from last year but still remains high. Careful procurement of materials and the short average duration of our projects allows us to avoid inflationary pressures on the cost of projects versus their estimated cost. |
Workforce and supply chain risk: the construction industry continues to have a shortage of skilled labour. The training and development of our staff enables us to attract high calibre candidates. By treating our supply chain fairly, we can ensure excellent working relationships, ensuring continuity of resources. |
Credit risk: our credit worthiness has the potential to affect our lines of credit with our supply chain. Our credit worthiness is regularly checked and action taken where necessary. Good fiscal management and profitability maximise our credit score. |
ORGANISATION |
The directors continue to monitor the Group's organisation and profitability within a competitive industry. Changes are implemented where deemed appropriate in order to minimise the effects of the risks and uncertainties the Group faces. |
ON BEHALF OF THE BOARD: |
Miller Knight Group Holdings Ltd (Registered number: 14891853) |
Report of the Directors |
for the Year Ended 31 March 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2024. |
INCORPORATION |
The company was incorporated on 24 May 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of building contracting with a specialism in passive fire protection focussing on remedial fire and refurbishment projects. |
DIVIDENDS |
Interim dividends of £1,153.44 per share on the A Ordinary shares were paid throughout the period. |
Interim dividends of £1,076.51 per share on the B Ordinary shares were paid throughout the period. |
Interim dividends of £1,256.00 per share on the C Ordinary shares were paid throughout the period. |
Interim dividends of £2,998.77 per share on the D Ordinary shares were paid throughout the period. |
Interim dividends of £30,000.00 per share on the E1 Ordinary shares were paid throughout the period. |
Interim dividends of £25,666.67 per share on the E2 Ordinary shares were paid throughout the period. |
Interim dividends of £28,666.67 per share on the E3 Ordinary shares were paid throughout the period. |
Interim dividends of £96,000.00 per share on the E4 Ordinary shares were paid throughout the period. |
The total distribution of dividends for the period ended 31 March 2024 will be £523,936. |
DIRECTORS |
The directors who have held office during the period from 1 April 2023 to the date of the report are as follows: |
A M Burns - appointed 8 June 2023 |
D F Dickson - appointed 24 May 2023 |
J M Warman - appointed 8 June 2023 |
A M Burns ceased to be a director after 31 March 2024 but prior 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. |
Miller Knight Group Holdings Ltd (Registered number: 14891853) |
Report of the Directors |
for the Year Ended 31 March 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Miller Knight Group Holdings Ltd |
Opinion |
We have audited the financial statements of Miller Knight Group Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Consolidated Profit and Loss Account, 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 Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
_ |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Miller Knight Group Holdings Ltd |
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. |
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. |
Based on our understanding of the company and industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the power services industry and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. Audit procedures performed by the engagement team included: |
- | Enquiry of management around actual and potential litigation and claims; |
- | Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; |
- | Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; |
- | Reviewing minutes of meetings of those charged with governance. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Miller Knight Group Holdings Ltd |
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 |
Chartered Accountants |
The Mills |
Canal Street |
Derby |
DE1 2RJ |
Miller Knight Group Holdings Ltd (Registered number: 14891853) |
Consolidated |
Profit and Loss Account |
for the Year Ended 31 March 2024 |
Period |
1.3.22 |
Year Ended | to |
31.3.24 | 31.3.23 |
Notes | £ | £ |
TURNOVER | 24,167,708 | 16,290,102 |
Cost of sales | 13,244,622 | 9,269,035 |
GROSS PROFIT | 10,923,086 | 7,021,067 |
Administrative expenses | 4,370,257 | 3,182,285 |
OPERATING PROFIT | 4 | 6,552,829 | 3,838,782 |
Interest receivable and similar income | 48,685 | 10,726 |
6,601,514 | 3,849,508 |
Interest payable and similar expenses | 5 | 5,026 | 26,196 |
PROFIT BEFORE TAXATION | 6,596,488 | 3,823,312 |
Tax on profit | 6 | 1,328,992 | 1,052,854 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
5,267,496 |
2,770,458 |
Profit attributable to: |
Owners of the parent | 5,267,496 | 2,770,458 |
Total comprehensive income attributable to: |
Owners of the parent | 5,267,496 | 2,770,458 |
Miller Knight Group Holdings Ltd (Registered number: 14891853) |
Consolidated Balance Sheet |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 | 1,222,808 | 1,127,782 |
Investments | 10 | - | - |
1,222,808 | 1,127,782 |
CURRENT ASSETS |
Stocks | 11 | 1,250,277 | 853,778 |
Debtors | 12 | 8,531,640 | 5,813,352 |
Cash at bank | 5,899,243 | 3,326,840 |
15,681,160 | 9,993,970 |
CREDITORS |
Amounts falling due within one year | 13 | 6,544,052 | 3,504,719 |
NET CURRENT ASSETS | 9,137,108 | 6,489,251 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
10,359,916 |
7,617,033 |
CREDITORS |
Amounts falling due after more than one year |
14 |
(4,276 |
) |
(447,695 |
) |
PROVISIONS FOR LIABILITIES | 18 | (64,828 | ) | (1,431,910 | ) |
NET ASSETS | 10,290,812 | 5,737,428 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 140 | 140 |
Merger reserve | 20 | 56,300 | 56,300 |
Retained earnings | 20 | 10,234,372 | 5,680,988 |
SHAREHOLDERS' FUNDS | 10,290,812 | 5,737,428 |
The financial statements were approved by the Board of Directors and authorised for issue on 27 November 2024 and were signed on its behalf by: |
J M Warman - Director |
Miller Knight Group Holdings Ltd (Registered number: 14891853) |
Company Balance Sheet |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors | 12 |
Cash at bank |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 3,675,656 | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
Miller Knight Group Holdings Ltd (Registered number: 14891853) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 March 2024 |
Called up |
share | Retained | Merger | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 March 2022 | 140 | 3,481,890 | 56,300 | 3,538,330 |
Changes in equity |
Dividends | - | (571,360 | ) | - | (571,360 | ) |
Total comprehensive income | - | 2,770,458 | - | 2,770,458 |
Balance at 31 March 2023 | 140 | 5,680,988 | 56,300 | 5,737,428 |
Changes in equity |
Dividends | - | (714,112 | ) | - | (714,112 | ) |
Total comprehensive income | - | 5,267,496 | - | 5,267,496 |
Balance at 31 March 2024 | 140 | 10,234,372 | 56,300 | 10,290,812 |
Miller Knight Group Holdings Ltd (Registered number: 14891853) |
Company Statement of Changes in Equity |
for the Year Ended 31 March 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Changes in equity |
Balance at 31 March 2023 |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2024 |
Miller Knight Group Holdings Ltd (Registered number: 14891853) |
Consolidated Cash Flow Statement |
for the Year Ended 31 March 2024 |
Period |
1.3.22 |
Year Ended | to |
31.3.24 | 31.3.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 22 | 5,808,448 | 1,239,595 |
Interest paid | (5,026 | ) | (26,196 | ) |
Tax paid | (1,807,574 | ) | (373,534 | ) |
Net cash from operating activities | 3,995,848 | 839,865 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (216,717 | ) | (148,187 | ) |
Sale of tangible fixed assets | - | 2,917 |
Interest received | 48,685 | 10,726 |
Net cash from investing activities | (168,032 | ) | (134,544 | ) |
Cash flows from financing activities |
Capital repayments in year | (566,029 | ) | (127,475 | ) |
Amount introduced by directors | 29,471 | 631 |
Amount withdrawn by directors | (4,743 | ) | (34,423 | ) |
Equity dividends paid | (714,112 | ) | (571,360 | ) |
Net cash from financing activities | (1,255,413 | ) | (732,627 | ) |
Increase/(decrease) in cash and cash equivalents | 2,572,403 | (27,306 | ) |
Cash and cash equivalents at beginning of year |
23 |
3,326,840 |
3,354,146 |
Cash and cash equivalents at end of year |
23 |
5,899,243 |
3,326,840 |
Miller Knight Group Holdings Ltd (Registered number: 14891853) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 March 2024 |
1. | STATUTORY INFORMATION |
Miller Knight Group Holdings Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated accounts incorporate the accounts of Miller Knight Group Holdings Limited and its subsidiary undertakings. Merger accounting has been adopted. |
Prior to the merger, the companies were owned by the shareholders in the same proportions. During the year, the merger took place and the transaction was treated as a group reconstruction when the company obtained 100% control of the other companies. The results for the comparative periods are therefore stated as if the subsidiaries acquired had always been a member of the group. |
Turnover |
Other than on certain long term contracts, turnover represents the amounts (excluding value added tax) derived from the provision of goods and services. Turnover is recognised when the company has transferred the significant risks and rewards of ownership to the buyer and it is probable that the company will receive the agreed upon payment. |
Revenue on long term contracts is recognised in accordance with the stage of completion of contractual obligations to the customer. The stage of completion is assessed by reference to the value of work done. |
Tangible fixed assets |
Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Freehold property | - 2% on cost |
Motor vehicles | - 33% straight line or 25% reducing balance |
Plant and machinery | - 15% reducing balance |
Computer equipment | - 15% reducing balance |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within 'administrative expenses' in the profit and loss account. |
Stocks |
Work in progress is valued at the lower of cost and net realisable value. Net realisable value is based on the estimated selling price less further costs to be incurred to completion. |
Miller Knight Group Holdings Ltd (Registered number: 14891853) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Deferred taxation |
Deferred tax arises from timing differences that are differences between taxable total profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. |
A deferred tax asset is recognised only when it is more likely than not that there will be suitable taxable profits from which the future reversal of underlying timing differences and losses can be deducted. |
Provision is made at current rates for taxation deferred in respect of all material timing differences. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Judgements in applying accounting policies and key sources of estimation |
In the application of the group's accounting policies the directors are required to make judgement estimates and assumptions about the carrying amounts of the group's assets and liabilities. These are based on historical experience and other factors that are considered relevant and are reviewed on a regular basis and recognised in the period in which the estimate is revised. Actual results may differ from these estimates. |
The following are the critical judgements and where relevant the key sources of estimation uncertainty: |
Tangible fixed assets are depreciated over their useful economic lives taking in to account their residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing the asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken in to account. Residual values consider such things as future market conditions, the remaining life of the asset and projected disposal values. |
The recoverability of debtors is assessed on the likelihood and circumstances of the particular cost. |
Long term contracts are those extending in excess of 12 months and any of a shorter duration which are material to the activity of the period. Attributable profit is recognised once the outcome of a long term contract can be assessed with reasonable certainty. Attributable profit is recognised on the cost percentage completion method. Immediate provision is made for all foreseeable losses if a contract is assessed as unprofitable. |
Miller Knight Group Holdings Ltd (Registered number: 14891853) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
3. | EMPLOYEES AND DIRECTORS |
Period |
1.3.22 |
Year Ended | to |
31.3.24 | 31.3.23 |
£ | £ |
Wages and salaries | 2,778,559 | 2,081,170 |
Social security costs | 273,963 | 214,541 |
Other pension costs | 50,660 | 38,767 |
3,103,182 | 2,334,478 |
The average number of employees during the year was as follows: |
Period |
1.3.22 |
Year Ended | to |
31.3.24 | 31.3.23 |
Directors | 3 | 3 |
Management | 5 | 7 |
Administration | 44 | 33 |
Period |
1.3.22 |
Year Ended | to |
31.3.24 | 31.3.23 |
£ | £ |
Directors' remuneration | 25,266 | 26,612 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
Period |
1.3.22 |
Year Ended | to |
31.3.24 | 31.3.23 |
£ | £ |
Hire of plant and machinery | 402,748 | 280,902 |
Depreciation - owned assets | 105,360 | 46,176 |
Depreciation - assets on hire purchase contracts | 16,331 | 25,214 |
Profit on disposal of fixed assets | - | (2,917 | ) |
Auditors' remuneration | 26,250 | 15,000 |
Auditors' remuneration for non audit work | 8,750 | 4,580 |
Operating lease payments | 132,047 | 103,656 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1.3.22 |
Year Ended | to |
31.3.24 | 31.3.23 |
£ | £ |
Bank loan interest | 5,026 | 26,196 |
Miller Knight Group Holdings Ltd (Registered number: 14891853) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
Period |
1.3.22 |
Year Ended | to |
31.3.24 | 31.3.23 |
£ | £ |
Current tax: |
UK corporation tax | 1,296,000 | 1,021,000 |
Prior year adjustment | 74 | (56 | ) |
Total current tax | 1,296,074 | 1,020,944 |
Deferred tax | 32,918 | 31,910 |
Tax on profit | 1,328,992 | 1,052,854 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
1.3.22 |
Year Ended | to |
31.3.24 | 31.3.23 |
£ | £ |
Profit before tax | 6,596,488 | 3,823,312 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
1,649,122 |
726,429 |
Effects of: |
Expenses not deductible for tax purposes | (329,208 | ) | 279,400 |
Capital allowances in excess of depreciation | (23,840 | ) | (20,232 | ) |
Other permanent differences | - | 35,347 |
Deferred tax | 32,918 | 31,910 |
Total tax charge | 1,328,992 | 1,052,854 |
7. | INDIVIDUAL PROFIT AND LOSS ACCOUNT |
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. |
Miller Knight Group Holdings Ltd (Registered number: 14891853) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
8. | DIVIDENDS |
Period |
1.3.22 |
Year ended | to |
31.3.24 | 31.3.23 |
£ | £ |
A Ordinary shares of £1 each |
Interim | 235,160 | 531,360 |
B Ordinary shares of £1 each |
Interim | 41,984 | 40,000 |
C Ordinary shares of £1 each | - |
Interim | 48,984 |
D Ordinary shares of £1 each | - |
Interim | 38,984 |
E1 Ordinary shares of £1 each | - |
Interim | 90,000 |
E2 Ordinary shares of £1 each | - |
Interim | 77,000 |
E3 Ordinary shares of £1 each | - |
Interim | 86,000 |
E4 Ordinary shares of £1 each | - |
Interim | 96,000 |
714,112 | 571,360 |
9. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Plant and | Motor | Computer |
property | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2023 | 1,001,225 | 30,430 | 328,385 | 24,613 | 1,384,653 |
Additions | - | - | 216,717 | - | 216,717 |
At 31 March 2024 | 1,001,225 | 30,430 | 545,102 | 24,613 | 1,601,370 |
DEPRECIATION |
At 1 April 2023 | 18,866 | 30,430 | 182,962 | 24,613 | 256,871 |
Charge for year | 18,865 | - | 102,826 | - | 121,691 |
At 31 March 2024 | 37,731 | 30,430 | 285,788 | 24,613 | 378,562 |
NET BOOK VALUE |
At 31 March 2024 | 963,494 | - | 259,314 | - | 1,222,808 |
At 31 March 2023 | 982,359 | - | 145,423 | - | 1,127,782 |
Included in cost of freehold property is freehold land of £600,000 (2023 - £600,000) which is not depreciated. |
The net book value of tangible fixed assets includes £5,836 (2023 - £22,167) in respect of assets held under hire purchase contracts. |
Miller Knight Group Holdings Ltd (Registered number: 14891853) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
10. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
Additions |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Unit 2b Sherwood Oaks Close, Sherwood Oaks Business Park, Mansfield, NG18 4TB |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Ransom Hall, Southwell Road West, Rainworth, Mansfield, NG21 0HJ |
Nature of business: |
% |
Class of shares: | holding |
11. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Work-in-progress | 1,250,277 | 853,778 |
Miller Knight Group Holdings Ltd (Registered number: 14891853) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
12. | DEBTORS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 3,619,509 | 1,977,358 |
Amounts owed by group undertakings | - | - |
Amounts recoverable on contract | 1,843,822 | 1,037,617 |
Other debtors | 152,905 | 125,082 |
Directors' current accounts | 4,743 | 29,471 | - | - |
Prepayments | 266,497 | 188,045 |
Owed by related parties | 2,412,205 | 2,367,682 | - | - |
8,299,681 | 5,725,255 |
Amounts falling due after more than one | year: |
Trade debtors | 231,959 | 88,097 |
Aggregate amounts | 8,531,640 | 5,813,352 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 15) | - | 116,665 |
Hire purchase contracts (see note 16) | 10,224 | 16,169 |
Payments on account | 262,266 | 55,000 |
Trade creditors | 3,556,061 | 1,026,733 |
Tax | 509,500 | 1,021,000 |
Social security and other taxes | 1,130,219 | 634,269 |
Other creditors | 5,287 | - |
Directors' current accounts | 210 | 210 |
Accrued expenses | 1,070,285 | 634,673 |
6,544,052 | 3,504,719 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Bank loans (see note 15) | - | 432,876 |
Hire purchase contracts (see note 16) | 4,276 | 14,819 |
4,276 | 447,695 |
Miller Knight Group Holdings Ltd (Registered number: 14891853) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or | on demand: |
Bank loans | - | 116,665 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | - | 117,301 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | - | 176,455 |
Amounts falling due in more than five | years: |
Repayable by instalments |
No description | - | 139,120 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 10,224 | 16,169 |
Between one and five years | 4,276 | 14,819 |
14,500 | 30,988 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Bank loans | - | 549,541 |
Hire purchase contracts | 14,500 | 30,988 |
14,500 | 580,529 |
Loans have been repaid during the year. |
Hire purchase balances are secured on the assets to which they relate. |
Miller Knight Group Holdings Ltd (Registered number: 14891853) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
18. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax | 64,828 | 31,910 |
Other provisions | - | 1,400,000 |
Aggregate amounts | 64,828 | 1,431,910 |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 April 2023 | 31,910 | 1,400,000 |
Provided during year | 32,918 | - |
Utilised during year | - | (1,400,000 | ) |
Balance at 31 March 2024 | 64,828 | - |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal value: | 2024 | 2023 |
£ | £ |
39 | A Ordinary | £1 | 39 | 100 |
39 | B Ordinary | £1 | 39 | 40 |
39 | C Ordinary | £1 | 39 | - |
13 | D Ordinary | £1 | 13 | - |
3 | E1 Ordinary | £1 | 3 | - |
3 | E2 Ordinary | £1 | 3 | - |
3 | E3 Ordinary | £1 | 3 | - |
1 | E4 Ordinary | £1 | 1 | - |
140 | 140 |
1 Ordinary £1 share was issued on incorporation. During the year, 139 shares were issued through a share for share exchange as part of the group restructure. |
20. | RESERVES |
Group |
Retained | Merger |
earnings | reserve | Totals |
£ | £ | £ |
At 1 April 2023 | 5,680,988 | 56,300 | 5,737,288 |
Profit for the year | 5,267,496 | 5,267,496 |
Dividends | (714,112 | ) | (714,112 | ) |
At 31 March 2024 | 10,234,372 | 56,300 | 10,290,672 |
Miller Knight Group Holdings Ltd (Registered number: 14891853) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
20. | RESERVES - continued |
Company |
Retained |
earnings |
£ |
Profit for the year |
Dividends | ( |
) |
At 31 March 2024 |
21. | ULTIMATE PARENT COMPANY |
Post year end, following restructure of the group, the new ultimate parent company is Miller Knight Group Limited. |
22. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1.3.22 |
Year Ended | to |
31.3.24 | 31.3.23 |
£ | £ |
Profit before taxation | 6,596,488 | 3,823,312 |
Depreciation charges | 121,691 | 71,389 |
Profit on disposal of fixed assets | - | (2,917 | ) |
Other provisions release | (1,400,000 | ) | - |
Finance costs | 5,026 | 26,196 |
Finance income | (48,685 | ) | (10,726 | ) |
5,274,520 | 3,907,254 |
Increase in stocks | (396,499 | ) | (853,778 | ) |
Increase in trade and other debtors | (2,743,016 | ) | (2,785,650 | ) |
Increase in trade and other creditors | 3,673,443 | 971,769 |
Cash generated from operations | 5,808,448 | 1,239,595 |
23. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2024 |
31.3.24 | 1.4.23 |
£ | £ |
Cash and cash equivalents | 5,899,243 | 3,326,840 |
Period ended 31 March 2023 |
31.3.23 | 1.3.22 |
£ | £ |
Cash and cash equivalents | 3,326,840 | 3,354,146 |
Miller Knight Group Holdings Ltd (Registered number: 14891853) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 March 2024 |
24. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.4.23 | Cash flow | At 31.3.24 |
£ | £ | £ |
Net cash |
Cash at bank | 3,326,840 | 2,572,403 | 5,899,243 |
3,326,840 | 2,572,403 | 5,899,243 |
Debt |
Finance leases | (30,988 | ) | 16,488 | (14,500 | ) |
Debts falling due within 1 year | (116,665 | ) | 116,665 | - |
Debts falling due after 1 year | (432,876 | ) | 432,876 | - |
(580,529 | ) | 566,029 | (14,500 | ) |
Total | 2,746,311 | 3,138,432 | 5,884,743 |