Company registration number 12812712 (England and Wales)
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
COMPANY INFORMATION
Directors
Mr R Murphy
Mr C Murphy
Mr J Murphy
Ms M Murphy
Company number
12812712
Registered office
Third Floor
Connexions
159 Princes Street
Ipswich
IP1 1QJ
Auditor
Ensors Accountants LLP
Connexions
159 Princes Street
Ipswich
IP1 1QJ
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Group statement of comprehensive income
10
Group balance sheet
11 - 12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Company statement of cash flows
17
Notes to the financial statements
18 - 39
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

The group is reporting another strong set of results with reported turnover being £19,155,329 and profit before taxation was reported at £2,732,415. These relatively good results are largely as a result of increased business activity and a greater market share in the industry.

 

Sales turnover growth was a result of the company securing contracts with new customers as well as expanding ranges and volumes for existing customers.

 

Key performance indicators

The board considers and monitors the key performance indicators that determine the financial performance and strength of the company as a whole; these being sales revenue, gross profit margins, overheads to sales ratios, net profit return, working capital management, cash generation and ROI.

Principal risks and uncertainties

Economic changes

 

The company continually reviews its risk to economic events. The company trades with customers in the UK and overseas, and globally spread suppliers and there remains uncertainty relating to global conditions impacting supply chains, financial markets and acts of military aggression. The board of directors works with advisors and external parties to constantly monitor and review the impacts of the various events and risks, whilst keeping up to date with current UK law and compliance.

 

Financial

 

The company’s financial assets and liabilities consist of trade debtors and creditors, bank balances and stock.

 

The board of directors manage the company’s exposure to financial risk by researching the credit worthiness of customers and by seeking advice from the company’s providers of finance and its other external advisors as the need arises.

 

The company has no significant concentration of credit risk, with exposure spread over a number of blue- chip customers.

Development and performance

Employees

The company recognizes the importance its employees play in delivering success to the business and equips them through its training and development programmes to ensure they have the best knowledge to be able to excel in their roles and deliver the best service to our customers. Our staff are our most valuable asset and we have initiatives to offer flexible working where possible, career development paths and have an inclusive, one team approach for our diverse workforce.

 

Future developments

Through our strategic vision for growth, parameters have been set to ensure future developments. The Management team continues to monitor the developments in the UK and global economy and respond in a way that ensures forward progression for the company.

MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

On behalf of the board

Mr R Murphy
Director
19 December 2024
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the group continued to be that of wholesale supply of industrial materials and construction products.

 

The principal activity of the company continued to be that of a holding company for the group.

Introduction

Royd Holdings Limited is a non-trading, family-owned parent company, with the purpose of holding investments in a number of trading companies which design, source and provide industry-leading bespoke building and construction industry products. The flagship subsidiary, Royd Toolgroup Limited, was founded in 2011 and has grown to be one of the market leaders in innovation, design and quality within the sector, providing trades people with great value high performing solutions and service. The companies sitting within the ownership of Royd Holdings include related business in the UK, EU, with the USA being added from early 2023.

 

As a passionate, family-owned business, we pride ourselves primarily in the ongoing investment in our people, branding and products, and business systems, allowing us to continually develop and grow our business in meeting the evolving needs of our customers.

 

As a service driven business, our focus is ensuring our suppliers and customers are at the forefront of innovation, supported by excellent, globally leading manufacturing partners, which continue to work to the highest quality standards and provide excellent product availability and service from our extensive UK held stocks.

 

We offer an end-to-end service, working collaboratively with our key clients helping to grow their brand and service performance. With our innovative product and production development processes, we offer sustainable solutions to the continued focus on environmental concerns, outperforming our competitors on this key aspect.

 

Our ongoing investment and growth in the period has resulted in an expansion in our warehousing operations, research and development capability and talent management, and IT systems and resources, providing a strong base for the further growth of the business in the future.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £227,570. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr R Murphy
Mr C Murphy
Mr J Murphy
Ms M Murphy
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

 

 

 

On behalf of the board
Mr R Murphy
Director
19 December 2024
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MURFY HOLDINGS LIMITED
- 6 -

Qualified opinion on financial statements

We have audited the financial statements of Royd Holdings Limited (the ‘parent company’) and its subsidiaries (the ‘group’) for the period ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice)

In our opinion, except for the effects on the corresponding figures of the of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

• give a true and fair view of the state of the group and company’s affairs as at 31 December 2023 and of the group and company’s profit for the period 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 qualified opinion

We were appointed as auditor for the group and parent company’s first statutory audit for the period ended 31 December 2022. As a result of the prior period being unaudited and the nature of the Company's accounting records, we were unable to obtain sufficient appropriate evidence concerning the opening balances at 1 May 2022 and the consequent effect on the income statement for the period ended 31 December 2022. Had we been able to obtain sufficient appropriate evidence concerning the opening balances at 1 May 2022 we might have identified material adjustments to the amounts reported thereon.

 

Our opinion on the current period’s financial statements is also modified because of the possible effect of this matter on the comparability of the current period’s figures and the corresponding figures.

 

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’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and the parent 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 qualified opinion on the group and parent company financial statements.

Material uncertainty in relation to going concern

We would like to draw your attention to note 1.4 of the financial statements, in the period after the end of the year, the company disposed of its subsidiaries to third parties. This resulted in a material uncertainty as the disposals of these subsidiaries have a significant impact upon the future of the company and whether or not it can be considered as a going concern. Our opinion is not modified in respect of this matter.

 

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

MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MURFY HOLDINGS LIMITED
- 7 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

As described in the basis for adverse opinion section of our report, the group and parent financial statements do no include comparative information. We have concluded that the other information is materially misleading for the same reason with respect to the amounts or other items in the annual report affected by the failure to include comparative infromation

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In respect solely of the limitation on our work relating to opening balances, described above:

 

Except for the matters described in the basis for adverse opinion section of our report, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.

MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MURFY HOLDINGS LIMITED
- 8 -
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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our audit was designed to include tests of detail together with an assessment of the control environment to enable us to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement due to fraud. This included work on areas where we consider there is a higher risk of fraud including transactions with related parties, revenue recognition, management override of systems and control and accounting estimates.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 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.

 

 

 

 

 

 

 

 

 

 

MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MURFY HOLDINGS LIMITED
- 9 -
Barry Gostling (Senior Statutory Auditor)
For and on behalf of Ensors Accountants LLP, Statutory Auditor
Chartered Accountants
Connexions
159 Princes Street
Ipswich
IP1 1QJ
19 December 2024
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
as restated
Notes
£
£
Turnover
3
19,155,328
18,651,250
Cost of sales
(10,640,323)
(11,815,805)
Gross profit
8,515,005
6,835,445
Distribution costs
(686,229)
(84,766)
Administrative expenses
(5,711,697)
(4,591,527)
Other operating income
-
0
30,736
Exceptional item
4
624,325
-
0
Operating profit
5
2,741,404
2,189,888
Share of profits of associates
72,442
374,408
Interest receivable and similar income
9
-
0
1,684
Interest payable and similar expenses
10
(81,431)
(144,491)
Profit before taxation
2,732,415
2,421,489
Tax on profit
11
(740,641)
(438,435)
Profit for the financial year
27
1,991,774
1,983,054
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(3,241)
139
Total comprehensive income for the year
1,988,533
1,983,193
Profit for the financial year is attributable to:
- Owners of the parent company
1,774,313
1,664,612
- Non-controlling interests
217,461
318,442
1,991,774
1,983,054
Total comprehensive income for the year is attributable to:
- Owners of the parent company
1,771,072
1,664,751
- Non-controlling interests
217,461
318,442
1,988,533
1,983,193
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
13
454,704
7,700
Tangible assets
14
194,391
135,142
Investments
17
455,188
382,746
1,104,283
525,588
Current assets
Stocks
19
3,889,649
4,801,713
Debtors
18
4,338,230
3,273,092
Cash at bank and in hand
4,228,506
987,522
12,456,385
9,062,327
Creditors: amounts falling due within one year
20
(7,189,620)
(4,346,836)
Net current assets
5,266,765
4,715,491
Total assets less current liabilities
6,371,048
5,241,079
Creditors: amounts falling due after more than one year
21
(477,644)
(780,233)
Provisions for liabilities
Deferred tax liability
24
49,267
33,786
(49,267)
(33,786)
Net assets
5,844,137
4,427,060
Capital and reserves
Called up share capital
26
200
200
Profit and loss reserves
27
5,022,958
3,479,456
Equity attributable to owners of the parent company
5,023,158
3,479,656
Non-controlling interests
820,979
947,404
Total equity
5,844,137
4,427,060
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 19 December 2024 and are signed on its behalf by:
19 December 2024
Mr R Murphy
Director
Company registration number 12812712 (England and Wales)
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 13 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Investments
17
468,245
468,245
Current assets
Debtors
18
935,212
74,428
Cash at bank and in hand
70
130
935,282
74,558
Creditors: amounts falling due within one year
20
(1,010,814)
(143,030)
Net current liabilities
(75,532)
(68,472)
Net assets
392,713
399,773
Capital and reserves
Called up share capital
26
200
200
Profit and loss reserves
27
392,513
399,573
Total equity
392,713
399,773

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £220,510 (2022 - £399,573 profit).

The financial statements were approved by the board of directors and authorised for issue on 19 December 2024 and are signed on its behalf by:
19 December 2024
Mr R Murphy
Director
Company registration number 12812712 (England and Wales)
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 September 2021
200
1,814,705
1,814,905
728,601
2,543,506
Year ended 31 December 2022:
Profit for the year
-
1,664,612
1,664,612
318,442
1,983,054
Other comprehensive income:
Currency translation differences
-
139
139
-
139
Total comprehensive income
-
1,664,751
1,664,751
318,442
1,983,193
Dividends
12
-
-
-
(99,639)
(99,639)
Balance at 31 December 2022
200
3,479,456
3,479,656
947,404
4,427,060
Year ended 31 December 2023:
Profit for the year
-
1,774,313
1,774,313
217,461
1,991,774
Other comprehensive income:
Currency translation differences
-
(3,241)
(3,241)
-
(3,241)
Total comprehensive income
-
1,771,072
1,771,072
217,461
1,988,533
Dividends
12
-
(227,570)
(227,570)
(343,886)
(571,456)
Balance at 31 December 2023
200
5,022,958
5,023,158
820,979
5,844,137
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 September 2021
200
-
0
200
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
399,573
399,573
Balance at 31 December 2022
200
399,573
399,773
Year ended 31 December 2023:
Profit and total comprehensive income
-
220,510
220,510
Dividends
12
-
(227,570)
(227,570)
Balance at 31 December 2023
200
392,513
392,713
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
5,338,259
85,478
Interest paid
(99,023)
(126,899)
Income taxes (paid)/refunded
(896,608)
194,819
Net cash inflow from operating activities
4,342,628
153,398
Investing activities
Purchase of business
(5,704)
-
0
Purchase of tangible fixed assets
(95,926)
(4,034)
Interest received
-
0
1,684
Net cash used in investing activities
(101,630)
(2,350)
Financing activities
Proceeds from borrowings
10,000
-
0
Proceeds from new bank loans
186,900
-
Repayment of bank loans
(614,084)
931,407
Payment of finance leases obligations
(14,682)
(8,976)
Dividends paid to equity shareholders
(227,570)
-
0
Dividends paid to non-controlling interests
(343,886)
(99,639)
Net cash (used in)/generated from financing activities
(1,003,322)
822,792
Net increase in cash and cash equivalents
3,237,676
973,840
Cash and cash equivalents at beginning of year
974,179
200
Effect of foreign exchange rates
(3,241)
139
Cash and cash equivalents at end of year
4,208,614
974,179
Relating to:
Cash at bank and in hand
4,228,506
987,522
Bank overdrafts included in creditors payable within one year
(19,892)
(13,343)
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
35
(60)
63,092
Investing activities
Proceeds from disposal of subsidiaries
-
0
(467,900)
Proceeds from disposal of associates
-
0
(45)
Dividends received
227,570
404,783
Net cash generated from/(used in) investing activities
227,570
(63,162)
Financing activities
Dividends paid to equity shareholders
(227,570)
-
Net cash used in financing activities
(227,570)
-
Net decrease in cash and cash equivalents
(60)
(70)
Cash and cash equivalents at beginning of year
130
200
Cash and cash equivalents at end of year
70
130
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
1
Accounting policies
Company information

Murfy Holdings Limited (previously Royd Holdings Limited) (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Ensors Chartered Accountants, Third Floor, Connexions, 159 Princes Street, Ipswich, IP1 1QJ.

 

The group consists of Murfy Holdings Limited and all of its subsidiaries.

 

The company's and the group's principal activities are disclosed in the Directors' report. The nature of the company's operations and the group's operations continue to be that of the wholesale supply of industrial materials and construction products.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. The group ceased to meet the criteria in the Companies Act 2006 to be able to take exemption from the requirement to produce group consolidated financial statements, or to obtain audited accounts, for the first time in respect of the period ended 31 December 2022.

The financial statements have been prepared under the historical cost convention.The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Murfy Holdings Limited (previously Royd Holdings Limited), together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the future of the company is uncertain. In the period after the year end, the flagship subsidiary of the group, Royd Toolgroup UK Limited, and the second largest subsidiary, Aspro Tools Limited, were sold to third parties. Another subsidiary, Royd USA, was dissolved. This has significantly impacted the group's ability to continue as a going concern.

 

The directors have a reasonable expectation that Murfy Holdings Limited will be a going concern with the support formally expressed by its shareholder. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements. The directors have considered the impact the company’s future development, performance, cashflows and financial position along with the company’s current liquidity in forming their conclusion on the applicability of the going concern basis.

 

The group is reliant upon the continued support of its parent undertaking to enable the group to continue in its changed structure. Should continuing support not be forthcoming from the parent undertaking then there would be a risk of a material uncertainty with regards to the applicability of the going concern basis. The directors have reached their conclusion that the company remains a going concern partly based upon the expressed intention of the parent undertaking to provide the financial support necessary.

 

Consideration has been made that the group does not own any immovable property.

MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost , net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Plant and equipment
20% straight line
Fixtures and fittings
14% straight line
Computers
33% straight line
Motor vehicles
20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

 

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 24 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 25 -
1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

Valuation of stocks

The company’s principal activity is that of buying and selling industrial spares and tooling. From time to time, some of the stocks become unsellable for varied reasons including changes in technology or customer preferences, therefore some of the stocks become obsolete and the provision for obsolete stocks (valuation) has been considered to be an area of key estimation uncertainty.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sales of goods
19,055,135
18,591,325
Other services income
100,193
59,925
19,155,328
18,651,250
2023
2022
£
£
Turnover analysed by geographical market
UK sales
17,712,701
17,256,705
EU sales
1,147,036
1,050,945
Rest of the world sales
295,591
343,600
19,155,328
18,651,250
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 26 -
2023
2022
£
£
Other revenue
Interest income
-
1,684
4
Intellectual property
2023
2022
£
£
Sale of intellectual property
624,325

Profit on transfer of brand intellectual property value to related party.

5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(9,644)
310,710
Research and development costs
23,299
109,602
Fees payable to the group's auditor for the audit of the group's financial statements
7,000
5,140
Depreciation of owned tangible fixed assets
42,330
28,414
Depreciation of tangible fixed assets held under finance leases
9,624
6,060
Amortisation of intangible assets
34,662
2,200
Operating lease charges
366,235
261,097
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
7,000
5,140
Audit of the financial statements of the company's subsidiaries
29,500
17,825
36,500
22,965
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
7
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management
4
2
-
-
Sales and operations
24
18
-
-
Support
22
18
-
-
Total
50
38
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,025,551
2,021,788
-
0
-
0
Social security costs
224,562
224,859
-
-
Pension costs
23,366
30,009
-
0
-
0
2,273,479
2,276,656
-
0
-
0
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
38,749
33,498

4 directors have been remunerated throughout the financial period.

9
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest receivable from group companies
-
0
1,684
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
-
1,684
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
10
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
3,030
Other finance costs:
Interest on finance leases and hire purchase contracts
2,228
2,114
Other interest
79,203
139,347
Total finance costs
81,431
144,491
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
730,095
435,476
Deferred tax
Origination and reversal of timing differences
10,546
2,959
Total tax charge
740,641
438,435

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
2,732,415
2,421,489
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
642,664
460,083
Tax effect of expenses that are not deductible in determining taxable profit
146,899
302,010
Tax effect of income not taxable in determining taxable profit
(53,525)
-
0
Adjustments in respect of prior years
-
0
275,211
Effect of change in corporation tax rate
(105)
-
Depreciation on assets not qualifying for tax allowances
219
(7,610)
Other non-reversing timing differences
7,946
9,493
Other permanent differences
(5,223)
(600,752)
1,766
-
0
Taxation charge
740,641
438,435
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid to shareholders of the company
227,570
-
Final paid to minority shareholders
343,886
99,639
571,456
99,639
13
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023
33,000
Additions - business combinations
481,666
At 31 December 2023
514,666
Amortisation and impairment
At 1 January 2023
25,300
Amortisation charged for the year
34,662
At 31 December 2023
59,962
Carrying amount
At 31 December 2023
454,704
At 31 December 2022
7,700
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.

The addition to intangible assets relates to goodwill on business combinations. It is comprised of goodwill on the acquisition of Aspro Tools Limited by Royd Toolgroup Limited, a subsidiary of Murfy Holdings Limited, on 14 March 2023, and goodwill on the acquisition of the trade and assets of Tradetidy Limited by Aspro Tools Limited on 15 December 2023.

 

MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
14
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
45,529
125,928
48,157
24,012
243,626
Additions
49,431
14,738
31,757
-
0
95,926
Business combinations
-
0
-
0
526
14,751
15,277
At 31 December 2023
94,960
140,666
80,440
38,763
354,829
Depreciation and impairment
At 1 January 2023
12,698
49,327
34,396
12,063
108,484
Depreciation charged in the year
11,028
15,290
12,258
13,378
51,954
At 31 December 2023
23,726
64,617
46,654
25,441
160,438
Carrying amount
At 31 December 2023
71,234
76,049
33,786
13,322
194,391
At 31 December 2022
32,831
76,601
13,761
11,949
135,142
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Royd Toolgroup Limited
1
Ordinary shares
92.59
Royd EU B.V.
2
Ordinary shares
80.00
Royd USA LLC
3
Ordinary shares
100.00
Aspro Tools Limited
4
Ordinary shares
92.59

Registered office addresses:

1
159 Princes Street, Ipswich, Suffolk, England, IP1 1QJ
2
Oud Camp 22, 3155 Maasland, Nederland
3
31435 Stephenson Hwy, Madison Heights, MI 48071
4
Saxon House, 23 Springfield Lyons Approach, Chelmsford, Essex, England, CM2 5LB
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Subsidiaries
(Continued)
- 31 -

Following the year end, there were some changes to the Murfy Holdings Limited group. Listed above is the registered address for each entity as at the date of consolidation.

 

The sale of the shares of Royd Toolgroup Limited to a third party was completed, and the entity ceased to be a subsidiary of Murfy Holdings Limited. The registered address for the entity was changed to Newland House, Weaver Road, Lincoln, Lincolnshire, England, LN6 3QN.

 

The sale of Royd EU B.V. was completed alongside the sale of Royd Toolgroup Limited, and subsequently the entity ceased to be a member of the group.

 

The shares of Aspro Tools Limited were sold to a related party, and the entity ceased to be a member of the group. There was no change to the registered office.

 

Royd USA LLC was dissolved after the year end.

 

16
Associates

Details of associates at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Smart Tool Group Global Limited
159 Princes Street, Ipswich, Suffolk, IP1 1QJ
Ordinary
45
17
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
468,200
468,200
Investments in associates
16
455,188
382,746
45
45
455,188
382,746
468,245
468,245
Movements in fixed asset investments
Group
Shares in associates
£
Cost or valuation
At 1 January 2023
382,746
Additions
72,442
At 31 December 2023
455,188
Carrying amount
At 31 December 2023
455,188
At 31 December 2022
382,746
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
17
Fixed asset investments
(Continued)
- 32 -
Movements in fixed asset investments
Company
Shares in subsidiaries and associates
£
Cost or valuation
At 1 January 2023 and 31 December 2023
468,245
Carrying amount
At 31 December 2023
468,245
At 31 December 2022
468,245
18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,828,284
2,808,782
-
0
-
0
Corporation tax recoverable
10,181
1,543
-
0
-
0
Amounts owed by group undertakings
-
0
-
301,998
74,428
Other debtors
1,367,531
320,170
633,214
-
0
Prepayments and accrued income
132,234
142,597
-
0
-
0
4,338,230
3,273,092
935,212
74,428
19
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
3,889,649
4,801,713
-
-
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
20
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
23
718,016
182,497
-
0
-
0
Obligations under finance leases
22
26,708
37,153
-
0
-
0
Other borrowings
23
10,000
-
0
-
0
-
0
Trade creditors
3,371,853
2,094,452
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
661,702
28,488
Corporation tax payable
491,868
601,011
-
0
-
0
Other taxation and social security
400,298
430,184
-
-
Other creditors
282,209
131,591
336,972
109,402
Accruals and deferred income
1,888,668
869,948
12,140
5,140
7,189,620
4,346,836
1,010,814
143,030
21
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
23
463,901
762,253
-
0
-
0
Obligations under finance leases
22
13,743
17,980
-
0
-
0
477,644
780,233
-
-
22
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
26,708
37,798
-
0
-
0
In two to five years
13,743
17,335
-
0
-
0
40,451
55,133
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
23
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
1,162,025
931,407
-
0
-
0
Bank overdrafts
19,892
13,343
-
0
-
0
Other loans
10,000
-
0
-
0
-
0
1,191,917
944,750
-
-
Payable within one year
728,016
182,497
-
0
-
0
Payable after one year
463,901
762,253
-
0
-
0

The long-term loans are both secured by fixed charges over the fixed assets to which they relate, and unsecured.

Bank loans comprise of eleven loans, all with different repayment profiles, all fully repayable within 5 years. The weighted average interest rate on these loans during the year was 5.13%.

24
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
49,267
33,786
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
33,786
-
Charge to profit or loss
15,481
-
Liability at 31 December 2023
49,267
-

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
25
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
23,366
30,009

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

26
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
200
200
200
200
27
Reserves
Profit and loss reserves

The profit and loss reserves account represents cumulative profit and loss net of distributions to owners.

28
Acquisition of a business

On 14 March 2023 the group acquired 100 percent of the issued capital of Aspro Tools Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
16,603
-
16,603
Inventories
446,597
-
446,597
Trade and other receivables
353,688
-
353,688
Cash and cash equivalents
17,396
-
17,396
Borrowings
(657,802)
-
(657,802)
Trade and other payables
(540,874)
-
(540,874)
Tax liabilities
(53,667)
-
(53,667)
Total identifiable net assets
(418,059)
-
(418,059)
Goodwill
418,159
Total consideration
100
The consideration was satisfied by:
£
Cash
100
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
28
Acquisition of a business
(Continued)
- 36 -
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
1,002,618
Profit after tax
23,451
29
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
459,369
479,200
-
-
Between two and five years
1,171,264
1,315,556
-
-
In over five years
490,375
686,525
-
-
2,121,008
2,481,281
-
-
30
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Associated entities
130,358
-
2,940,368
-
Sale of intellectual property
2023
2022
£
£
Group
Associated entities
624,325
-
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
30
Related party transactions
(Continued)
- 37 -

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Associated entities
1,226,052
-

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Associated entities
633,410
-
31
Directors' transactions

Dividends totalling £227,570 (2022 - £0) were paid in the year in respect of shares held by the company's directors.

32
Cash generated from group operations
2023
2022
£
£
Profit after taxation
1,991,774
1,983,054
Adjustments for:
Share of results of associates and joint ventures
(72,442)
(374,408)
Taxation charged
740,641
438,435
Finance costs
81,431
144,491
Investment income
-
0
(1,684)
Amortisation and impairment of intangible assets
34,662
2,200
Depreciation and impairment of tangible fixed assets
51,954
34,474
Decrease in provisions
(71,900)
-
Movements in working capital:
Decrease/(increase) in stocks
1,390,054
(5,021,795)
Increase in debtors
(702,812)
(597,764)
Increase in creditors
1,894,897
3,478,475
Cash generated from operations
5,338,259
85,478
MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 38 -
33
Analysis of changes in net funds/(debt) - group
1 January 2023
Cash flows
Exchange rate movements
31 December 2023
£
£
£
£
Cash at bank and in hand
987,522
3,244,225
(3,241)
4,228,506
Bank overdrafts
(13,343)
(6,549)
-
(19,892)
974,179
3,237,676
(3,241)
4,208,614
Borrowings excluding overdrafts
(931,407)
(240,618)
-
(1,172,025)
Obligations under finance leases
(55,133)
14,682
-
(40,451)
(12,361)
3,011,740
(3,241)
2,996,138
34
Analysis of changes in net funds - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
130
(60)
70
35
Cash (absorbed by)/generated from operations - company
2023
2022
£
£
Profit after taxation
220,510
399,573
Adjustments for:
Investment income
(227,570)
(404,783)
Movements in working capital:
(Increase)/decrease in debtors
(860,784)
63,217
Increase in creditors
867,784
5,085
Cash (absorbed by)/generated from operations
(60)
63,092
36
Subsequent Events

The board have completed the sale of the intellectual property and trading activity of its woodscrew business to a UK third party to enable it to concentrate on the continued growth of the company’s other brands.

 

In November 2023, the board commenced discussions with a larger international third party for the sale of the shares of Royd Toolgroup Limited and Royd EU B.V. On 04 November 2024, the deal was completed and the shares were purchased. Royd Toolgroup Limited and Royd EU B.V. ceased to be members of the group.

 

On 06 November 2024, the shares of Aspro Tools Limited were purchased by a related party. Aspro Tools Limited ceased to be a member of the group at this date.

 

Following the sale of all other subsidiaries, Royd USA LLC was dissolved.

MURFY HOLDINGS LIMITED
(PREVIOUSLY ROYD HOLDINGS LIMITED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 39 -
37
Prior period adjustment

Reclassification of expenses

The treatment of certain expenses in the Income Statement has changed from 1 January 2023 onwards. The comparative Income Statement has been restated to enable better comparison between accounting periods. Comparative cost of sales have been reduced by £628,659, distribution costs have increased by £384,246, and administrative expenses have been increased by £244,413 compared with the previously signed financial statements for the period ended 31 December 2022. The misstatement has a £nil effect on reported profits.

Prior period dividends

The financial statements have been adjusted in order to correct a fundamental accounting error in prior period. Historically dividends between the Murfy Holdings Limited, the parent and its subsidiary, Royd Toolgroup Limited have not been correctly accounted for resulting in unreported dividends between the two companies in unaudited prior periods amounting to £633,214

Adjustments to equity - group
The prior period adjustments do not give rise to any effect upon equity.
Adjustments to profit for the previous financial period
2022
£
Adjustments to prior year
Total adjustments
-
Adjustments to equity - company
The prior period adjustments do not give rise to any effect upon equity.
Adjustments to profit for the previous financial period
2022
£
Adjustments to prior year
Total adjustments
-
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