REGISTERED NUMBER: NI626141 (Northern Ireland) |
MMD COMMUNICATIONS (HOLDINGS) LIMITED |
Group Strategic Report, Director's Report and |
Audited Consolidated Financial Statements for the Year Ended 31 January 2024 |
REGISTERED NUMBER: NI626141 (Northern Ireland) |
MMD COMMUNICATIONS (HOLDINGS) LIMITED |
Group Strategic Report, Director's Report and |
Audited Consolidated Financial Statements for the Year Ended 31 January 2024 |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Contents of the Consolidated Financial Statements |
FOR THE YEAR ENDED 31 JANUARY 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Director's Report | 4 |
Independent Auditors' Report | 7 |
Consolidated Income Statement | 10 |
Consolidated Statement of Financial Position | 11 |
Company Statement of Financial Position | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Statement of Cash Flows |
16 |
Notes to the Consolidated Financial Statements | 17 |
MMD COMMUNICATIONS (HOLDINGS) LIMITED |
Company Information |
FOR THE YEAR ENDED 31 JANUARY 2024 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Chartered Accountants and Statutory Auditors |
36-38 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
BANKERS: | Bank of Ireland |
11 Market Street |
Magherafelt |
Derry |
BT45 6EE |
SOLICITORS: |
42-46 Fountain Street |
Belfast |
Co. Antrim |
BT1 5EF |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Group Strategic Report |
FOR THE YEAR ENDED 31 JANUARY 2024 |
The director presents his strategic report of the Company and the Group for the year ended 31 January 2024. |
REVIEW OF THE COMPANY'S BUSINESS |
The franchise agreements operated by the groups subsidiary MMD Communications Ltd where terminated by the franchisor on 31 March 2024 and the subsidiary company has ceased to trade at that date. The financial statements for the year ended 31 January 2024 have therefore been prepared on a basis other than going concern. |
The Director considers that the key performance indicators are those that communicate the financial performance and strengths as a whole, being revenue, gross profit margin and operating profit as provided below. |
Revenue for the year has decreased by 11.4% to £21,831,754 (2023: £24,647,724). The gross profit has decreased slightly from £7,923,578 to £7,891,332, with gross profit margin increasing from 32% to 36%. Operating profit has decreased from £1,624,683 in 2023 to a loss of £730,066. The director is satisfied with the results in the year. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Management of the business and execution of the company's strategy were subject to a number of risks. The key business risks and uncertainties affecting the company related to competition. The directors carried out regular strategic reviews including assessments of competitor activity and market trends. |
BUSINESS PERFORMANCE |
The Northern Ireland and UK telecommunication industry is highly competitive, particularly in the mobile phone sector where our business is focused. |
KEY PERFORMANCE INDICATORS |
The Key Performance Indicators during the year were as follows: |
2024 | 2023 |
£ | £ |
Revenue | 21,831,754 | 24,647,724 |
Gross profit | 7,891,332 | 7,923,578 |
Profit/(loss) for the year | (1,462,510) | 1,088,855 |
Shareholders' Funds | 9,896,598 | 11,359,108 |
Average number of employees | 90 | 111 |
FUTURE DEVELOPMENTS |
The groups subsidiary company MMD Communications Ltd was bought out of its franchise agreement with O2 on 31 March 2024. The subsidiary company ceased all trading activity at this date. |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Group Strategic Report |
FOR THE YEAR ENDED 31 JANUARY 2024 |
ENVIRONMENT |
The group recognises its corporate responsibility to carry out its operations whilst ensuring that there is minimal environmental impact. The director complied with all applicable environmental legislation, prevent pollution and reduce wastage wherever possible during the year. |
HEALTH AND SAFETY |
The group are committed to achieving the highest practicable standards in health and safety management and strive to make all sites and offices safe environments for employees and customers alike. |
HUMAN RESOURCES/EMPLOYEES |
The most important resource of the group during the year was the people employed: their knowledge and experience was crucial to meeting customer requirements. Retention of key staff during the year was crucial. |
ON BEHALF OF THE BOARD: |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Director's Report |
FOR THE YEAR ENDED 31 JANUARY 2024 |
The director presents his report with the financial statements of the Company and the Group for the year ended 31 January 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group is the provision of retail and corporate mobile phone solutions and the operation of a licensed premises. |
The franchise agreements operated by the groups subsidiary company MMD Communications Ltd where terminated by the franchisor on 31 March 2024 and that company has ceased to trade at that date. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 January 2024. |
No interim or final dividend was paid during the year. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTOR |
GOING CONCERN |
The franchise agreements operated by the groups subsidiary MMD Communications Ltd where terminated by the franchisor on 31 March 2024 and the company has ceased to trade at that date. The financial statements of the group for the year ended 31 January 2024 have therefore been prepared on a basis other than going concern. |
DISCLOSURES REQUIRED UNDER SCHEDULE 7 |
In accordance with Section 414C (11) of Companies Act 2006, the director has elected to disclose details of the business review, principal risk and uncertainties, employment policy and future developments in the group's Strategic Report which would otherwise be required to be disclosed in the Director's Report. |
FINANCIAL RISK MANAGEMENT |
The group's operations expose them to a variety of financial risks that include price risk, foreign exchange risk, credit risk, liquidity risk and interest rate risk. The group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group by monitoring levels of debt finance and the related finance costs. Given the size of the group, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the group's finance department. |
Price risk |
The group are exposed to commodity price risk as a result of its operations. However, given the size of the group's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the group's operations change in size or nature. |
Foreign exchange risk |
While the greater part of the group's revenues and expenses are denominated in sterling, the group are exposed to some foreign exchange risk in the normal course of business, principally on sales recorded in Euros and borrowing denominated in Euros. While the group have not used complex financial instruments to date to hedge foreign exchange exposure, it does from time to time use simple forward contracts; this position is kept constantly under review. |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Director's Report |
FOR THE YEAR ENDED 31 JANUARY 2024 |
FINANCIAL RISK MANAGEMENT CONTINUED |
Credit risk |
The group operate policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by the board. |
Liquidity risk |
The group actively maintain a mixture of long-term and short-term debt finance that is designed to ensure that the group have sufficient available funds for operations and planned expansions. |
Interest rate risk |
The group have both interest bearing assets and interest bearing liabilities. Interest bearing assets include cash balances, which earn interest at a variable rate. Interest bearing liabilities relate to shareholder loans, bank overdrafts and loans and obligations under hire purchase and finance lease agreements, which bear interest at market rates. |
DIRECTOR'S RESPONSIBILITIES STATEMENT |
The director is responsible for preparing the Group Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's and the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Group's auditors are aware of that information. |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Director's Report |
FOR THE YEAR ENDED 31 JANUARY 2024 |
AUDITORS |
The auditors, CavanaghKelly, (Chartered Accountants and Statutory Auditors) have indicated their willingness to continue in office in accordance with the provisions of Section 485 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
Independent Auditors' Report to the Members of |
MMD Communications (Holdings) Limited |
Opinion |
We have audited the financial statements of MMD Communications (Holdings) Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 January 2024 which comprise the Consolidated Income Statement, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the Group's and of the Parent Company affairs as at 31 January 2024 and of the Group's loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
We draw attention to Note 3 of the financial statements, which indicates that the accounts have not been prepared on a going concern basis due to its cessation of trade post year end. Our opinion is not modified in respect of this matter. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Director's Report, but does not include the financial statements and our Auditors' Report thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements. |
Independent Auditors' Report to the Members of |
MMD Communications (Holdings) Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Director's Report. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the Parent Company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Director's Responsibilities Statement set out on page five, the director is 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 director determines 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 director is responsible for assessing the Group's and the Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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: |
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company. |
Independent Auditors' Report to the Members of |
MMD Communications (Holdings) Limited |
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud - continued |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- | We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation; |
- | We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance; |
- | We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations; |
- | Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and |
- | Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override. |
The audit response to risks identified included: |
- | Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above; |
- | Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud; |
In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
36-38 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Consolidated |
Income Statement |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 5 | 21,831,754 | 24,647,724 |
Cost of sales | (13,940,422 | ) | (16,724,146 | ) |
GROSS PROFIT | 7,891,332 | 7,923,578 |
Administrative expenses | (9,240,040 | ) | (6,291,766 | ) |
(1,348,708 | ) | 1,631,812 |
Other operating income | 618,642 | (7,129 | ) |
OPERATING (LOSS)/PROFIT | 7 | (730,066 | ) | 1,624,683 |
Finance income | 29,643 | 2,560 |
(700,423 | ) | 1,627,243 |
Finance costs | 9 | (13,037 | ) | (58,846 | ) |
(LOSS)/PROFIT BEFORE TAXATION | (713,460 | ) | 1,568,397 |
Tax on (loss)/profit | 10 | (749,050 | ) | (479,542 | ) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(1,462,510 |
) |
1,088,855 |
(Loss)/profit attributable to: |
Owners of the parent | (1,462,510 | ) | 1,088,855 |
Total comprehensive income attributable to: |
Owners of the parent | (1,462,510 | ) | 1,088,855 |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Consolidated Statement of Financial Position |
31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
NON-CURRENT ASSETS |
Intangible assets | 12 | 147,505 | 3,575,124 |
Tangible assets | 13 | 568,054 | 1,349,027 |
Investments | 14 | - | - |
Investment property | 15 | 745,503 | 1,546,666 |
1,461,062 | 6,470,817 |
CURRENT ASSETS |
Stocks | 16 | 357,395 | 436,857 |
Receivables: amounts falling due within one year |
17 |
8,614,892 |
7,839,644 |
Cash at bank and in hand | 3,111,931 | 2,704,785 |
12,084,218 | 10,981,286 |
PAYABLES |
Amounts falling due within one year | 18 | (3,643,190 | ) | (5,714,251 | ) |
NET CURRENT ASSETS | 8,441,028 | 5,267,035 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
9,902,090 |
11,737,852 |
PAYABLES |
Amounts falling due after more than one year |
19 |
- |
(343,002 |
) |
PROVISIONS FOR LIABILITIES | 22 | (5,492 | ) | (35,742 | ) |
NET ASSETS | 9,896,598 | 11,359,108 |
CAPITAL AND RESERVES |
Called up share capital | 23 | 9,500,001 | 9,500,001 |
Retained earnings | 396,597 | 1,859,107 |
SHAREHOLDERS' FUNDS | 9,896,598 | 11,359,108 |
The financial statements were approved by the director and authorised for issue on 31 January 2025 and were signed by: |
Maurice Devlin - Director |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Company Statement of Financial Position |
31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
NON-CURRENT ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
Investment property | 15 |
CURRENT ASSETS |
Receivables: amounts falling due within one year |
17 |
Cash at bank |
PAYABLES |
Amounts falling due within one year | 18 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 23 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's (loss)/profit for the financial year |
(768,862 |
) |
88,586 |
The financial statements were approved by the director and authorised for issue on |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Consolidated Statement of Changes in Equity |
FOR THE YEAR ENDED 31 JANUARY 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 February 2022 | 9,500,001 | 770,252 | 10,270,253 |
Changes in equity |
Total comprehensive income | - | 1,088,855 | 1,088,855 |
Balance at 31 January 2023 | 9,500,001 | 1,859,107 | 11,359,108 |
Changes in equity |
Total comprehensive income | - | (1,462,510 | ) | (1,462,510 | ) |
Balance at 31 January 2024 | 9,500,001 | 396,597 | 9,896,598 |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Company Statement of Changes in Equity |
FOR THE YEAR ENDED 31 JANUARY 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 February 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 January 2023 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 January 2024 |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Consolidated Statement of Cash Flows |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,298,299 | 3,207,113 |
Interest paid | (100 | ) | (46,990 | ) |
Interest element of hire purchase payments paid |
(12,937 |
) |
(11,856 |
) |
Tax paid | (952,053 | ) | (1,121,841 | ) |
Net cash from operating activities | 333,209 | 2,026,426 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (27,195 | ) | (481,421 | ) |
Purchase of investment property | (37,000 | ) | - |
Sale of tangible fixed assets | 156,177 | 2,200 |
Interest received | 29,643 | 2,560 |
Net cash from investing activities | 121,625 | (476,661 | ) |
Cash flows from financing activities |
Loan repayments in year | - | (2,534,265 | ) |
Capital repayments in year | (47,688 | ) | (10,310 | ) |
Net cash from financing activities | (47,688 | ) | (2,544,575 | ) |
Increase/(decrease) in cash and cash equivalents | 407,146 | (994,810 | ) |
Cash and cash equivalents at beginning of year |
2 |
2,704,785 |
3,699,595 |
Cash and cash equivalents at end of year |
2 |
3,111,931 |
2,704,785 |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Notes to the Consolidated Statement of Cash Flows |
FOR THE YEAR ENDED 31 JANUARY 2024 |
1. | RECONCILIATION OF (LOSS)/PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
(Loss)/profit for the financial year | (1,462,510 | ) | 1,088,855 |
Depreciation charges | 1,987,781 | 2,035,606 |
Profit on disposal of fixed assets | (26,195 | ) | (1,280 | ) |
Impairment losses | 2,956,187 | - |
Finance costs | 13,037 | 58,846 |
Finance income | (29,643 | ) | (2,560 | ) |
Taxation | 749,050 | 479,542 |
4,187,707 | 3,659,009 |
Decrease/(increase) in stocks | 79,462 | (37,778 | ) |
Increase in trade and other debtors | (775,248 | ) | (469,816 | ) |
(Decrease)/increase in trade and other creditors | (2,193,622 | ) | 55,698 |
Cash generated from operations | 1,298,299 | 3,207,113 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 January 2024 |
31/1/24 | 1/2/23 |
£ | £ |
Cash and cash equivalents | 3,111,931 | 2,704,785 |
Year ended 31 January 2023 |
31/1/23 | 1/2/22 |
£ | £ |
Cash and cash equivalents | 2,704,785 | 3,699,595 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/2/23 | Cash flow | At 31/1/24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,704,785 | 407,146 | 3,111,931 |
2,704,785 | 407,146 | 3,111,931 |
Debt |
Finance leases | (174,050 | ) | 47,688 | (126,362 | ) |
(174,050 | ) | 47,688 | (126,362 | ) |
Total | 2,530,735 | 454,834 | 2,985,569 |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Notes to the Consolidated Financial Statements |
FOR THE YEAR ENDED 31 JANUARY 2024 |
1. | STATUTORY INFORMATION |
MMD Communications (Holdings) Limited is a |
2. | STATEMENT OF COMPLIANCE |
The financial statements of the company for the year ended 31 January 2024 have been prepared in accordance with the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS 102) issued by the Financial Reporting Council and in accordance with the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The franchise agreements operated by the groups subsidiary company MMD Communications Ltd where terminated by the franchisor on 31 March 2024 and the company has ceased to trade at that date. The financial statements of the group for the year ended 31 January 2024 have therefore been prepared on a basis other than going concern. |
The financial statements have been prepared in accordance with the historical cost convention except for certain properties and financial instruments that are measured at revalued amounts or fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the group financial statements. |
Basis of consolidation |
The consolidated income statement, consolidated statement of changes in equity, consolidated balance sheet and consolidated statement of cash flows the financial statements of the company and its subsidiary's undertakings made up to 31 January 2024. Inter-company transactions, balances and cash flows between group companies are eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. |
Revenue |
The turnover shown in the Income Statement represents amounts received or receivable for goods and services provided for in the normal course of business, exclusive of value added tax. In respect of contracts for the provision of ongoing services, turnover is recognised over the life of the contract. For the supply of goods, turnover is recognised upon delivery of goods to the customer. |
Goodwill |
Purchased goodwill arising on the acquisition of a business represents the excess of the acquisition cost over the fair value of the identifiable net assets including other intangible fixed assets when they were acquired. Purchased goodwill is capitalised in the Statement of Financial Position and amortised on a straight line basis over its economic useful life of 5 years, which is estimated to be the period during which benefits are expected to arise. On disposal of a business any goodwill not yet amortised is included in determining the profit or loss on sale of the business. |
Goodwill is reviewed for impairment at the end of the first full financial year following acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable. |
Goodwill was impaired at the year end as a result of a group company ceasing to trade post year end. |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
3. | ACCOUNTING POLICIES - continued |
Goodwill on consolidation |
Goodwill on Consolidation is valued at cost less accumulated amortisation. |
Amortisation is calculated to write off the cost in equal annual instalments over their estimated useful life of 10 years. |
Goodwill on consolidation was impaired at the year end as a result of a group company ceasing to trade post year end. |
Investments |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Amortisation is not provided on franchise fees. |
Franchise fees where impaired at the year end as a result of the company ceasing to trade post year end. |
Property, plant and equipment |
Property, plant and equipment are stated at cost or at valuation, less accumulated depreciation. The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows: |
Long leasehold property | - 2% Straight line |
Plant and machinery | - 25% Reducing balance |
Fixtures, fittings and equipment | - 25% Reducing balance / |
33% Straight line |
Motor vehicles | - 25% Reducing balance |
The carrying values of property, plant and equipment are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable. |
Property, plant and equipment that where not disposed post year end have been impaired at the year end as a result of a group company ceasing to trade post year end. |
Investment property |
Investment property whose fair value can be measured reliably without undue cost or effort is measured at fair value with changes in fair value recognised in the Income Statement. Revalued investment properties are not depreciated or amortised, unless the fair value cannot be measured reliably or without undue cost or effort. |
Not depreciating or amortising property is a departure from the requirement of Company Law to provide depreciation on all fixed assets which have a limited useful life. However, these investment properties are not held for consumption but for investment and the director considers that systematic annual depreciation would be inappropriate. The accounting policy adopted is therefore necessary for the financial statements to give a true and fair view. If depreciation were to be provided it would be provided at a rate of 4% Straight line per annum on the revalued amount. |
Inventories |
Inventories are valued at the lower of cost and net realisable value. Cost comprises expenditure incurred in the normal course of business in bringing stocks to their present location and condition. Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling. |
Exceptional Items |
Exceptional items are those that the directors' view are required to be separately disclosed by virtue of their size or incidence to enable a full understanding of the group's financial performance. |
During the current year the franchise agreement for several stores was not renewed and post year end the group was bought out of its remaining franchise agreements by the franchisor. The costs and compensation for this event have been disclosed separately. |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company and group have chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. |
(i) Financial assets |
Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by related parties and are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 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. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other payables, bank loans and overdrafts and amounts owed to related parties 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates. |
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
(iii) Offsetting |
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. |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
3. | ACCOUNTING POLICIES - continued |
Taxation and deferred taxation |
Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Statement of Financial Position date. |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements. |
Deferred tax is measured on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Leasing |
Rentals payable under operating leases are dealt with in the Income Statement as incurred over the period of the rental agreement. |
Leasing and hire purchases |
Property, plant and equipment held under leasing and Hire Purchases arrangements which transfer substantially all the risks and rewards of ownership to the company are capitalised and included in the Statement of Financial Position at their cost or valuation, less depreciation. The corresponding commitments are recorded as liabilities. Payments in respect of these obligations are treated as consisting of capital and interest elements, with interest charged to the Income Statement. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Employee benefits |
The group operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the group. Annual contributions payable to the group's pension scheme are charged to the Income Statement in the period to which they relate. |
Going concern |
The financial statements have not been prepared on the going concern basis as post year end, the principal franchisor of one of the groups subsidiaries bought the company out of its franchise agreement. |
The director of the group believes the company has the ability to discharge all of its debts on the cessation of its trade. |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
4. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
The preparation of the financial statements in accordance with generally accepted accounting principles requires management to make estimates, judgements and assumptions that affect the reported amounts of assets and liabilities, income and expenditure in the reporting period. Actual results could differ from those estimates. Therefore, management believe the critical accounting policies where estimates, judgements and assumptions are necessarily applied are summarised below: |
Impairment of Fixed Assets: |
The group's property, plant and equipment are stated at cost less accumulated depreciation. The assets are depreciated over their estimated useful economic lives. The carrying values of such assets are reviewed annually for any indications of impairment. The carrying value of assets is tested for impairment where events or changes in circumstances indicate the carrying value is incorrectly stated. If such a review indicates the carrying value is overstated, the value of the asset is restated to its deemed recoverable amount. Recoverable amount is deemed to be the higher of the asset's fair value less costs to sell, or its value in use. Value in use is calculated based on the discontinued future cash flows of the asset, or of the cash generating unit to which the asset belongs. |
5. | TURNOVER |
The turnover and loss (2023 - profit) before taxation are attributable to the one principal activity of the Group. |
The whole of the company's turnover is attributable to its market in the United Kingdom and is derived from the principal activity of the provision of retail and corporate mobile phone solutions and the operation of a licensed premises. |
6. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 2,263,661 | 2,302,566 |
Social security costs | 176,665 | 209,826 |
Other pension costs | 39,888 | 123,053 |
2,480,214 | 2,635,445 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Employees |
2024 | 2023 |
£ | £ |
Director's remuneration | 41,124 | 47,332 |
7. | OPERATING (LOSS)/PROFIT |
The operating loss (2023 - operating profit) is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Commissions payable | 499,949 | 507,087 |
Depreciation - owned assets | 267,312 | 315,135 |
Profit on disposal of fixed assets | (26,195 | ) | (1,280 | ) |
Goodwill amortisation | 49,168 | 49,168 |
Goodwill on consolidation amortisation | 1,671,302 | 1,671,302 |
The auditing of accounts of any associate of the company | 12,000 | 12,000 |
Impairment of goodwill on consolidation | 1,674,149 | - |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
8. | EXCEPTIONAL ITEMS |
Included within other income: |
2024 | 2023 |
£ | £ |
Store Closure Bonus | 618,642 | - |
Included within expenditure: |
2024 | 2023 |
£ | £ |
Redundancy costs | 8,730 | - |
Lease renunciation | 200,000 | - |
Dilapidation | 34,000 | - |
Loss on disposal of tangible fixed assets | 97,258 | - |
Impairment losses for intangible fixed assets | 33,000 | - |
Impairment losses for tangible fixed assets | 410,874 | - |
Impairment losses for investment property | 838,163 | - |
Impairment losses for goodwill on consolidation | 1,674,149 |
3,296,174 | - |
9. | FINANCE COSTS |
2024 | 2023 |
£ | £ |
Bank interest | 100 | 27,463 |
Bank loan interest | - | 11,567 |
Other interest payable | - | 7,960 |
Hire purchase interest | 12,937 | 11,856 |
13,037 | 58,846 |
10. | TAXATION |
Analysis of the tax charge |
The tax charge on the loss for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 779,300 | 592,962 |
Adjustments in respect of |
prior periods | - | (68,568 | ) |
Total current tax | 779,300 | 524,394 |
Deferred tax | (30,250 | ) | (44,852 | ) |
Tax on (loss)/profit | 749,050 | 479,542 |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
10. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
(Loss)/profit before tax | (713,460 | ) | 1,568,397 |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 24.030 % (2023 - 19 %) |
(171,444 |
) |
297,995 |
Effects of: |
Expenses not deductible for tax purposes | 24,051 | 296 |
Adjustments to tax charge in respect of previous periods | - | (141,857 | ) |
Group Relief | 65 | - |
Non-relevant depreciation | 7,792 | 7,282 |
Impact of super-deduction | - | (16,592 | ) |
Impact of rate change | (99 | ) | 6,825 |
Movement in unrecognised deferred tax | 475,256 | (1,296 | ) |
Amortisation | 413,429 | 326,889 |
Total tax charge | 749,050 | 479,542 |
11. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
12. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill on |
Goodwill | Franchises | consolidation | Totals |
£ | £ | £ | £ |
COST |
At 1 February 2023 | 5,509,505 | 33,000 | 16,713,018 | 22,255,523 |
Disposals | (1,949,999 | ) | - | - | (1,949,999 | ) |
Impairments | (3,067,825 | ) | (33,000 | ) | (1,674,149 | ) | (4,774,974 | ) |
At 31 January 2024 | 491,681 | - | 15,038,869 | 15,530,550 |
AMORTISATION |
At 1 February 2023 | 5,312,832 | - | 13,367,567 | 18,680,399 |
Amortisation for year | 49,168 | - | 1,671,302 | 1,720,470 |
Eliminated on disposal | (1,949,999 | ) | - | - | (1,949,999 | ) |
Impairments | (3,067,825 | ) | - | - | (3,067,825 | ) |
At 31 January 2024 | 344,176 | - | 15,038,869 | 15,383,045 |
NET BOOK VALUE |
At 31 January 2024 | 147,505 | - | - | 147,505 |
At 31 January 2023 | 196,673 | 33,000 | 3,345,451 | 3,575,124 |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
13. | PROPERTY, PLANT AND EQUIPMENT |
Group |
Fixtures |
Long | Plant and | and | Motor |
leasehold | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 February 2023 | 1,003,104 | 116,676 | 2,892,001 | 555,293 | 4,567,074 |
Additions | - | - | 27,195 | - | 27,195 |
Disposals | - | - | (755,511 | ) | (86,320 | ) | (841,831 | ) |
Impairments | (724,357 | ) | (116,676 | ) | (2,027,613 | ) | - | (2,868,646 | ) |
At 31 January 2024 | 278,747 | - | 136,072 | 468,973 | 883,792 |
DEPRECIATION |
At 1 February 2023 | 489,254 | 112,416 | 2,424,980 | 191,397 | 3,218,047 |
Charge for year | 58,113 | 1,066 | 125,340 | 82,793 | 267,312 |
Eliminated on disposal | - | - | (658,253 | ) | (53,596 | ) | (711,849 | ) |
Impairments | (550,021 | ) | (113,482 | ) | (1,794,269 | ) | - | (2,457,772 | ) |
At 31 January 2024 | (2,654 | ) | - | 97,798 | 220,594 | 315,738 |
NET BOOK VALUE |
At 31 January 2024 | 281,401 | - | 38,274 | 248,379 | 568,054 |
At 31 January 2023 | 513,850 | 4,260 | 467,021 | 363,896 | 1,349,027 |
Company |
Fixtures |
and |
fittings |
£ |
COST |
At 1 February 2023 |
and 31 January 2024 |
DEPRECIATION |
At 1 February 2023 |
Charge for year |
At 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
14. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 February 2023 |
and 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
Holdings in related undertakings |
The company holds 20% or more of the share capital of the following companies: |
Name |
Country of incorporation |
Nature ofbusiness |
Details of investment |
Proportion held bycompany |
Subsidiary undertaking |
MMD Communications Ltd | Northern Ireland | Telecommunication | Ordinary | 100% |
Kilmegan Ltd | Northern Ireland | Licensed premises | Ordinary | 100% |
In the opinion of the director, the value to the company of the unlisted investments is not less than the book amount shown above. |
15. | INVESTMENT PROPERTY |
Group |
Total |
£ |
COST |
At 1 February 2023 | 1,546,666 |
Additions | 37,000 |
Impairments | (838,163 | ) |
At 31 January 2024 | 745,503 |
NET BOOK VALUE |
At 31 January 2024 | 745,503 |
At 31 January 2023 | 1,546,666 |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
15. | INVESTMENT PROPERTY - continued |
Company |
Total |
£ |
FAIR VALUE |
At 1 February 2023 |
Additions |
Impairments | (838,163 | ) |
At 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
16. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Inventories | 357,395 | 436,857 |
17. | RECEIVABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade receivables | 1,390,350 | 2,090,475 |
Other receivables | 7,207,363 | 5,731,990 |
Prepayments and accrued income | 17,179 | 17,179 |
8,614,892 | 7,839,644 |
Amounts owed by connected companies are repayable on demand and no interest has been charged in respect of such advances. |
18. | PAYABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Hire purchase contracts (see note 20) | 126,362 | 37,216 |
Trade payables | 2,164,882 | 3,465,763 |
Amounts owed to group undertakings | - | - |
Tax | 55,604 | 228,357 |
Social security and other taxes | 47,775 | 53,688 |
VAT | 798,723 | 1,116,993 | 4,330 | - |
Other payables | 182,908 | 284,865 |
Accruals and deferred income | 266,936 | 527,369 |
3,643,190 | 5,714,251 |
Amounts owed to group companies are repayable on demand and no interest has been charged in respect of such advances. |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
19. | PAYABLES: AMOUNTS FALLING DUE AFTER ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 20) | - | 136,834 |
Accruals and deferred income | - | 206,168 |
- | 343,002 |
20. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase | contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 126,362 | 37,216 |
Between one and five years | - | 136,834 |
126,362 | 174,050 |
21. | FINANCIAL INSTRUMENTS |
2024 | 2023 |
£ | £ |
Carrying amount of financial assets in the group |
Measured at fair value through the income statement | 8,597,713 | 7,367,351 |
Carrying amount of financial liabilities |
Measured at amortised cost | 2,741,087 | 5,803,040 |
22. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax | 5,492 | 35,742 |
Group |
Deferred tax |
£ |
Balance at 1 February 2023 | 35,742 |
Credit to Income Statement during year | (30,250 | ) |
Balance at 31 January 2024 | 5,492 |
23. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary Share | 1.00 | 9,500,001 | 9,500,001 |
MMD COMMUNICATIONS (HOLDINGS) LIMITED (REGISTERED NUMBER: NI626141) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
24. | CAPITAL COMMITMENTS |
Group |
The group had no material capital commitments at the year-ended 31 January 2024. |
Company |
The company had no material capital commitments at the year-ended 31 January 2024. |
25. | OTHER FINANCIAL COMMITMENTS |
Total future minimum lease payments under non-cancellable operating leases are as follows: |
2024 | 2023 |
£ | £ |
Due: |
Within one year | 166,774 | 503,885 |
Between one and five years | - | 1,135,281 |
In over five years | - | 36,288 |
166,774 | 1,675,453 |
26. | POST BALANCE SHEET EVENTS |
The franchise agreements operated by the groups subsidiary company, MMD Communications Ltd, where terminated by the franchisor on 31 March 2024 and the company has ceased to trade at that date. The financial statements of the group for the year ended 31 January 2024 have therefore been prepared on a basis other than going concern. |
27. | PENSIONS - DEFINED CONTRIBUTION |
The company operates a defined contribution pension scheme in respect of the directors and employees. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the company and amounted to £139,888 (2023: £123,053). |
28. | RELATED PARTY TRANSACTIONS |
The company has availed of the exemption under FRS 102 in relation to the disclosure of transactions with group companies. |
Balance | Balance |
2024 | 2023 |
£ | £ |
Sea Eagle Properties Ltd | 6,431,247 | 5,338,323 |
Sea Eagle Properties Ltd is a company incorporated in Northern Ireland and under common control. Included in other debtors, the above amounts were advanced to Sea Eagle Properties Ltd by the group in respect of expenses and fees paid on behalf of the company. No interest has been charged in respect of same and the director considers such amounts to be repayable on demand. |
29. | ULTIMATE CONTROLLING PARTY |
The company's ultimate controlling party is Mr Maurice Devlin by virtue of his shareholding in the company. |