Company Registration No. 02335832 (England and Wales)
MB ADVERTISING AND MARKETING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
MB ADVERTISING AND MARKETING LIMITED
COMPANY INFORMATION
Directors
Mr J G Bennett
Mr A J Hilton
Mr S Crace
Mr N J Evans
Mr A M Crane
Secretary
Mr J G Bennett
Company number
02335832
Registered office
MB House
248 Shepcote Lane
Sheffield
South Yorkshire
England
S9 1TP
Auditor
Knowles Warwick Audit Services Limited
Charlotte House
500 Charlotte Road
Sheffield
S2 4ER
MB ADVERTISING AND MARKETING LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 19
MB ADVERTISING AND MARKETING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
1

The directors present the strategic report for the year ended 30 April 2024.

Review of the business

MB Advertising and Marketing Ltd operates from their own offices in Sheffield. We provide fully integrated omnichannel marketing services throughout the automotive sector primarily within the UK.

 

(mbadvertising.co.uk/aboutus & blueskyinteractive.co.uk/about-us).

 

Our automotive client base remains the UK franchised retailer network, larger independent used vehicle retailers plus OEM’s and sector specific service companies. We also work with a selection of clients outside of automotive where our marketing skills align. The market has continued to transition with increased consolidation of franchised dealers, new OEM entrants, and a greater focus on EV sales driven by the ZEV mandate targets. The move towards a new car agency model has either been delayed or watered down by most manufacturers as the retail expertise in the current market has become highly valued.

Principal risks and uncertainties

New car stock availability has remained strong in the year but with the mix including more EV, which have taken a greater share of the sales albeit still heavily skewed towards fleet and business registrations. This has continued to create opportunities for us to support retail lead generation.

 

Used car stock availability also improved during the period. There has been more pre-registration stock and used EV have become more widely available and desirable due to falling residual values.

 

We have increased our relationships with OEM’s and key sector suppliers to create sales opportunity partnerships.

 

The macro-economic situation and increased business costs from the most recent budget remain concerns as we find ways to offset cost increases and subdued consumer confidence.

 

We continue to invest in digital and AI solutions to mitigate these cost pressures and to maintain our strong position in the automotive sector.

 

This on-going investment in client focused omni-channel marketing solutions gives us confidence that we are future proofing the business and mitigating risk.

Key performance indicators

The focus in the year has been sustainability and growth for the future. We have very much focussed on removing low margin business which whilst impacting turnover we have maintained our gross profit at previous levels. The new rate of corporation tax in the year reduced retained profit.

Other information and explanations

On 1 March 23 100% of the issued share capital was sold and we are now an employee-owned company within an EOT. The first year’s enterprise value payments were made to schedule and are reflected in the accounts. This is an encouraging start for our members.

 

We continue to support local and national charities during the year that resonate with either our community, our staff or our clients. Weston Park Cancer Charity continues to be our core charity with contributions over many years exceeding £200k. The shareholders also supported community projects and other charitable causes at a personal level.

On behalf of the board

Mr N J Evans
Director
7 January 2025
MB ADVERTISING AND MARKETING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
2

The directors present their annual report and financial statements for the year ended 30 April 2024.

Principal activities

The principal activity of the company continued to be that of an advertising and marketing agency

Results and dividends

The results for the year are set out on page 7.

During the year a contribution of £450,000 was made to the employee ownership trust.

Directors

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

Mr J G Bennett
Mr A J Hilton
Mr S Crace
Mr N J Evans
Mr A M Crane
Research and development

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's

strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups

(Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of

research and development, as well as future developments.

Auditor

Knowles Warwick Audit Services Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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 company’s auditor 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 company’s auditor is aware of that information.

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 N J Evans
Director
7 January 2025
MB ADVERTISING AND MARKETING LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
3

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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

MB ADVERTISING AND MARKETING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MB ADVERTISING AND MARKETING LIMITED
4
Opinion

We have audited the financial statements of MB Advertising and Marketing Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 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 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.

 

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 our audit:

MB ADVERTISING AND MARKETING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MB ADVERTISING AND MARKETING LIMITED (CONTINUED)
5
Matters on which we are required to report by exception

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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly followed auditing standards.

We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur, by;

In response to the risk of revenue recognition, we;

In response to the risk of fraud through management bias and override of controls, we:

MB ADVERTISING AND MARKETING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MB ADVERTISING AND MARKETING LIMITED (CONTINUED)
6

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

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.

Steven Knowles FCA
Senior Statutory Auditor
For and on behalf of Knowles Warwick Audit Services Limited
7 January 2025
Chartered Accountants
Statutory Auditor
Charlotte House
500 Charlotte Road
Sheffield
S2 4ER
MB ADVERTISING AND MARKETING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
7
2024
2023
Notes
£
£
Turnover
2
14,793,132
18,225,094
Cost of sales
(13,082,821)
(16,282,163)
Gross profit
1,710,311
1,942,931
Administrative expenses
(745,385)
(1,020,598)
Other operating income
74,665
94,942
Operating profit
3
1,039,591
1,017,275
Interest receivable and similar income
6
36,012
87,485
Profit before taxation
1,075,603
1,104,760
Tax on profit
7
(273,085)
(91,748)
Profit for the financial year
802,518
1,013,012

The profit and loss account has been prepared on the basis that all operations are continuing operations.

MB ADVERTISING AND MARKETING LIMITED
BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
8
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
8
44,711
22,836
Current assets
Debtors
9
5,485,989
5,855,546
Cash at bank and in hand
1,521,344
1,554,158
7,007,333
7,409,704
Creditors: amounts falling due within one year
10
(2,490,110)
(3,234,302)
Net current assets
4,517,223
4,175,402
Total assets less current liabilities
4,561,934
4,198,238
Provisions for liabilities
Deferred tax liability
11
11,178
-
0
(11,178)
-
Net assets
4,550,756
4,198,238
Capital and reserves
Called up share capital
13
10,000
10,000
Profit and loss reserves
4,540,756
4,188,238
Total equity
4,550,756
4,198,238

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

The financial statements were approved by the board of directors and authorised for issue on 7 January 2025 and are signed on its behalf by:
Mr N J Evans
Director
Company registration number 02335832 (England and Wales)
MB ADVERTISING AND MARKETING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
9
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 May 2022
10,000
8,607,937
8,617,937
Year ended 30 April 2023:
Profit and total comprehensive income
-
1,013,012
1,013,012
Contribution to EOT
-
(5,432,711)
(5,432,711)
Balance at 30 April 2023
10,000
4,188,238
4,198,238
Year ended 30 April 2024:
Profit and total comprehensive income
-
802,518
802,518
Contribution to EOT
-
(450,000)
(450,000)
Balance at 30 April 2024
10,000
4,540,756
4,550,756
MB ADVERTISING AND MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
10
1
Accounting policies
Company information

MB Advertising and Marketing Limited is a private company limited by shares incorporated in England and Wales. The registered office is MB House, 248 Shepcote Lane, Sheffield, South Yorkshire, England, S9 1TP.

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

This 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:

 

 

The financial statements of the company are consolidated in the financial statements of MB Group (UK) Limited. These consolidated financial statements are available from its registered office.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
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.

 

1.4
Tangible fixed assets

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

MB ADVERTISING AND MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
11

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

Fixtures, fittings & equipment
25% - 50% straight line
Motor vehicles
35% reducing balance

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 credited or charged to profit or loss.

During the year the directors revised the estimate in respect of the depreciation rate of Fixtures, fittings and equipment from straight line over 12 months to 25% - 50% straight line. The change in estimate was made to more accurately reflect the consumption of the assets.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

 

1.6
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.

1.7
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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.

MB ADVERTISING AND MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
12
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 company 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 company 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.

MB ADVERTISING AND MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
13
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
Equity instruments

Equity instruments issued by the company 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 company.

1.9
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 company’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.

1.10
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.

1.11
Retirement benefits

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

1.12
Leases

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 leases asset are consumed.

1.13
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the

dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in

foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising

on translation in the period are included in profit or loss.

2
Turnover and other revenue
MB ADVERTISING AND MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
2
Turnover and other revenue
(Continued)
14
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
14,793,132
18,225,094
2024
2023
£
£
Other revenue
Interest income
36,012
87,485
3
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
14,000
18,450
Depreciation of owned tangible fixed assets
30,327
19,835
Profit on disposal of tangible fixed assets
(5,204)
(5,926)
Operating lease charges
60,644
62,992
4
Employees

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

2024
2023
Number
Number
Administration
5
4
Sales and production
46
48
Total
51
52

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,678,715
1,732,595
Social security costs
150,034
151,245
Pension costs
30,294
44,979
1,859,043
1,928,819
MB ADVERTISING AND MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
15
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
127,400
17,136
Company pension contributions to defined contribution schemes
1,321
220
128,721
17,356
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
36,012
87,485
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
261,907
85,785
Deferred tax
Origination and reversal of timing differences
11,178
5,963
Total tax charge
273,085
91,748
MB ADVERTISING AND MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
7
Taxation
(Continued)
16

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:

2024
2023
£
£
Profit before taxation
1,075,603
1,104,760
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
268,901
215,318
Tax effect of expenses that are not deductible in determining taxable profit
7,582
11,227
Tax effect of income not taxable in determining taxable profit
(1,301)
-
0
Group relief
-
0
(48,515)
Research and development tax credit
-
0
(85,815)
Fixed asset differences
-
0
(1,825)
Movement in deferred tax not recognised
-
0
47
Remeasurement of deferred tax for changes in tax rates
-
0
1,311
Deferred tax
11,178
-
0
Capital allowances
(13,275)
-
0
Taxation charge for the year
273,085
91,748
8
Tangible fixed assets
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
Cost
At 1 May 2023
309,481
29,750
339,231
Additions
53,099
-
0
53,099
Disposals
(123,082)
(15,250)
(138,332)
At 30 April 2024
239,498
14,500
253,998
Depreciation and impairment
At 1 May 2023
289,211
27,184
316,395
Depreciation charged in the year
29,687
640
30,327
Eliminated in respect of disposals
(123,082)
(14,353)
(137,435)
At 30 April 2024
195,816
13,471
209,287
Carrying amount
At 30 April 2024
43,682
1,029
44,711
At 30 April 2023
20,270
2,566
22,836
MB ADVERTISING AND MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
17
9
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,714,957
2,168,234
Corporation tax recoverable
-
0
15,898
Amounts owed by group undertakings
3,740,854
3,638,361
Prepayments and accrued income
30,178
33,053
5,485,989
5,855,546
10
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,001,833
2,587,782
Corporation tax
171,009
-
0
Other taxation and social security
253,823
254,196
Other creditors
5,889
-
0
Accruals and deferred income
1,057,556
392,324
2,490,110
3,234,302
11
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
11,178
-
2024
Movements in the year:
£
Liability at 1 May 2023
-
Charge to profit or loss
11,178
Liability at 30 April 2024
11,178

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.

MB ADVERTISING AND MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
18
12
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
30,294
44,979

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

13
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,000
10,000
10,000
10,000
14
Financial commitments, guarantees and contingent liabilities

The bank has a debenture over the assets and undertakings of the company in respect of facilities provided to MB Advertising and Marketing Ltd and fellow group companies.

15
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the company for certain assets including vehicles. Leases are negotiated for an average term of 3 years.

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

2024
2023
£
£
Within one year
52,922
57,800
Between two and five years
29,032
81,679
81,954
139,479
16
Related party transactions

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due to related parties
£
£
Other subsidiary entities within the same group
22,751
-
MB ADVERTISING AND MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
16
Related party transactions
(Continued)
19

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
3,740,854
3,638,361
17
Ultimate controlling party

The company's parent company is MBM Holdings Limited, a company incorporated and registered in England.

 

The smallest and largest group into which the results of the company are consolidated is MB Group (UK) Limited. Copies of the group accounts can be obtained from the group's registered office.

 

The shares in MB Group (UK) Limited are owned via an employee ownership trust. MB Bluesky Trustees Limited is the trustee body responsible for governing the trust on behalf of the employees. As MB Bluesky Trustees Limited has the power to appoint and remove directors amongst other powers, it is determined as the controlling party.

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