Company registration number 03681149 (England and Wales)
MORRIS VERMAPORT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
MORRIS VERMAPORT LIMITED
COMPANY INFORMATION
Directors
L Turton
P J Marsden
Secretary
P J Marsden
Company number
03681149
Registered office
MV House
14 Vickery Way
Chetwynd Business Park
Chilwell
Nottingham
Nottinghamshire
NG9 6RY
Auditor
BHP LLP
One Waterside Place
Basin Square
Brimington Road
Chesterfield
Derbyshire
S41 7FH
MORRIS VERMAPORT LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
MORRIS VERMAPORT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The directors present the strategic report for the year ended 30 June 2024.
Business Strategy
The company operates in the UK Lift Market. In order to stand out in our chosen markets we pride ourselves with industry leading workmanship and reliable, dependable and excellent service striving to exceed our customers’ demands. We believe in pricing our services fairly and honestly whilst being open and transparent. Delivering the services our customers expect without hidden charges.
The directors’ primary objectives for the year were to maintain the profitability of its contracts, steady sustainable and profitable growth, and to prepay its bank facilities ahead of schedule to mitigate rising interest costs.
The UK lift market continues to remain highly competitive, particularly in the sectors where our business is focused. Many companies tender for the same work giving rise to aggressive pricing structures and increasing pressure on our margins year on year.
Business Review
The directors are pleased with the results for the Group for the financial year ended 30 June 2024.
The company’s main divisions are
Lift Servicing: comprising planned preventative maintenance, emergency call out & repair
Capital Projects: comprising new & replacement lift installation and modernisation
Both divisions performed better than expected, with a turnover of £18.8m (£12.7m in FY23) and a gross margin of 33.21% (compared to 35.15% in FY23). The company achieved a profit after tax of £2.9m (compared to £2.0m in FY23), and the net debt EBITDA leverage was 0.15x (compared to 0.63x in FY23).
Principal risks and uncertainties
The company is exposed to a number of business risks and uncertainties and has plans in place mitigate these risks as much as practically possible
The company has a supply chain based in Europe. As a result, the group is exposed to movements in foreign currency exchange rates primarily the Euro. The company manages this risk through the use the Group’s £300,000 multi-currency overdraft and utilising receipts in Euro’s and USD to settle liabilities in those currencies and avoiding potential foreign currency exchange losses.
Competition is a significant risk to the company. Our focus is to provide consistently good quality service and products to retain existing customers, as well as attract new ones.
The company is exposed to a moderate level of price risk, credit risk, liquidity risk and cash flow risk. The group manages these risks by financing its operations through retained profits, supplemented by a multi-currency bank overdraft when necessary to fund growth.
The company makes limited use of derivative financial instruments (forward exchange contracts), no forward exchange contracts have been entered into at the balance sheet date.
Future Developments
The directors anticipate the UK lift market will remain highly competitive, particularly in the sectors where our business is focused. Many companies tender for the same work giving rise to aggressive pricing structures and increasing pressure on our margins year on year.
We believe that the company is in a good financial position and that the risks identified are being well managed. With continued focus on delivering an industry leading level of service, quality and communication the directors are confident in the company's ability to maintain and build on its success.
MORRIS VERMAPORT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
.............................................
P J Marsden
Director
31 January 2025
MORRIS VERMAPORT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the company continued to be that of the installation, modernisation, repair and maintenance of lifts.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid to Chanderhill Limited amounting to £2,835,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
L Turton
P J Marsden
Auditor
The auditor, BHP LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s 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.
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.
MORRIS VERMAPORT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
On behalf of the board
..............................................
P J Marsden
Director
31 January 2025
MORRIS VERMAPORT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MORRIS VERMAPORT LIMITED
- 5 -
Opinion
We have audited the financial statements of Morris Vermaport Limited (the 'company') for the year ended 30 June 2024 which comprise the profit and loss account, 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:
give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
MORRIS VERMAPORT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MORRIS VERMAPORT LIMITED (CONTINUED)
- 6 -
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 and 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with management, and from our commercial knowledge and experience of the steel manufacturing and treatment and coating of metals sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environments and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
MORRIS VERMAPORT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MORRIS VERMAPORT LIMITED (CONTINUED)
- 7 -
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias;
investigated the rationale behind significant or unusual transactions; and
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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.
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.
Daniel Sowden
Senior Statutory Auditor
For and on behalf of BHP LLP
31 January 2025
Chartered Accountants
Statutory Auditor
One Waterside Place
Basin Square
Brimington Road
Chesterfield
Derbyshire
S41 7FH
MORRIS VERMAPORT LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
18,764,445
12,690,116
Cost of sales
(12,533,065)
(8,229,570)
Gross profit
6,231,380
4,460,546
Administrative expenses
(2,465,969)
(1,998,084)
Operating profit
4
3,765,411
2,462,462
Interest receivable and similar income
7
17,355
7,234
Interest payable and similar expenses
8
(22,218)
(13,840)
Profit before taxation
3,760,548
2,455,856
Tax on profit
9
(828,654)
(422,000)
Profit for the financial year
2,931,894
2,033,856
The profit and loss account has been prepared on the basis that all operations are continuing operations.
MORRIS VERMAPORT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
2024
2023
£
£
Profit for the year
2,931,894
2,033,856
Other comprehensive income
-
-
Total comprehensive income for the year
2,931,894
2,033,856
MORRIS VERMAPORT LIMITED
BALANCE SHEET
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
581,466
402,582
Investments
12
100
100
581,566
402,682
Current assets
Stocks
119,676
90,087
Debtors
14
6,436,698
5,670,580
Cash at bank and in hand
608,146
484,721
7,164,520
6,245,388
Creditors: amounts falling due within one year
15
(5,002,280)
(4,152,531)
Net current assets
2,162,240
2,092,857
Total assets less current liabilities
2,743,806
2,495,539
Creditors: amounts falling due after more than one year
16
(343,894)
(254,282)
Provisions for liabilities
Provisions
18
241,541
179,780
(241,541)
(179,780)
Net assets
2,158,371
2,061,477
Capital and reserves
Called up share capital
19
37,145
37,145
Share premium account
9,547
9,547
Capital redemption reserve
20,092
20,092
Profit and loss reserves
2,091,587
1,994,693
Total equity
2,158,371
2,061,477
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 31 January 2025 and are signed on its behalf by:
..............................................
P J Marsden
Director
Company registration number 03681149 (England and Wales)
MORRIS VERMAPORT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2022
37,145
9,547
20,092
1,784,387
1,851,171
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
-
2,033,856
2,033,856
Dividends
-
-
-
(1,823,550)
(1,823,550)
Balance at 30 June 2023
37,145
9,547
20,092
1,994,693
2,061,477
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
-
2,931,894
2,931,894
Dividends
-
-
-
(2,835,000)
(2,835,000)
Balance at 30 June 2024
37,145
9,547
20,092
2,091,587
2,158,371
MORRIS VERMAPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
1
Accounting policies
Company information
Morris Vermaport Limited is a private company limited by shares incorporated in England and Wales. The registered office is MV House, 14 Vickery Way, Chetwynd Business Park, Chilwell, Nottingham, NG9 6RY.
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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Morris Vermaport Limited is a wholly owned subsidiary of EKJT Limited and the results of Morris Vermaport Limited are included in the consolidated financial statements of EKJT Limited which are available from Companies House.
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
MORRIS VERMAPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
The company recognises income for capital contracts as it meets certain contractual milestones. Where costs have exceeded the contractual milestone an amount recoverable under contract will be recognised, such an amount is based on actual costs incurred at the balance sheet date. Where profits are greater than the expected margin, costs for completion will be accrued.
1.4
Intangible fixed assets - goodwill
Goodwill arising on the acquisition of trade and assets etc represents the excess of the fair value of the consideration over the fair value of the identifiable assets and liabilities acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
1.5
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.
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 and fittings
25% reducing balance
Motor vehicles
25% 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.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.8
Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value. Cost is based on the cost of purchase on a first in, first out basis. Net realisable value means estimated selling price less all further costs to completion.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
MORRIS VERMAPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
1.9
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.
1.10
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.
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.
MORRIS VERMAPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.12
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.
MORRIS VERMAPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
1.14
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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
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.
1.17
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.
MORRIS VERMAPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The significant estimates and assumptions which are currently applicable are outlined below.
Profits recognised long term contracts
A material Income stream is generated from long term projects. The company recognises a budgeted contribution for each contract on a straight line basis over the life of the contract when contract milestones are achieved and invoiced - this is adjusted through the 'Amounts recoverable on contracts' and 'cost to complete' provisions. At the end of the contract/ upon revision of budgeted outcomes reviewed regularly the difference between the budgeted margin and the actual margin achieved is released to profit and loss. When contract losses are anticipated these are recognised in full at the time of identification in so far as they can be measured reliably.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Projects
9,027,711
5,272,128
Services
9,736,734
7,417,988
18,764,445
12,690,116
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
18,764,445
12,690,116
2024
2023
£
£
Other revenue
Interest income
17,355
7,234
MORRIS VERMAPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(1,226)
4,246
Fees payable to the company's auditor for the audit of the company's financial statements
26,250
25,000
Depreciation of owned tangible fixed assets
221,333
112,188
Profit on disposal of tangible fixed assets
(7,491)
(14,798)
Operating lease charges
58,000
58,000
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Average number of employed
99
87
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
4,356,576
3,363,379
Pension costs
135,062
182,389
4,491,638
3,545,768
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
74,393
82,276
Company pension contributions to defined contribution schemes
108,000
37,933
182,393
120,209
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
17,355
7,234
MORRIS VERMAPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
-
13,840
Interest on finance leases and hire purchase contracts
22,218
-
22,218
13,840
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
828,654
422,000
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
3,760,548
2,455,856
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
940,137
503,450
Tax effect of expenses that are not deductible in determining taxable profit
6,758
8,967
Adjustments in respect of prior years
(55,715)
Group relief
(42,850)
(58,256)
Fixed asset differences
(5,121)
Remeasurement of deferred tax for changes in tax rates
5,942
Movement in deferred tax not recognised
(19,676)
(32,982)
Taxation charge for the year
828,654
422,000
MORRIS VERMAPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
10
Intangible fixed assets
Goodwill
£
Cost
At 1 July 2023 and 30 June 2024
894,505
Amortisation and impairment
At 1 July 2023 and 30 June 2024
894,505
Carrying amount
At 30 June 2024
At 30 June 2023
11
Tangible fixed assets
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 1 July 2023
192,536
577,277
769,813
Additions
10,846
396,160
407,006
Disposals
(18,364)
(35,262)
(53,626)
At 30 June 2024
185,018
938,175
1,123,193
Depreciation and impairment
At 1 July 2023
177,387
189,844
367,231
Depreciation charged in the year
10,112
211,221
221,333
Eliminated in respect of disposals
(18,364)
(28,473)
(46,837)
At 30 June 2024
169,135
372,592
541,727
Carrying amount
At 30 June 2024
15,883
565,583
581,466
At 30 June 2023
15,149
387,433
402,582
12
Fixed asset investments
2024
2023
Notes
£
£
Shares in group undertaking and participanting interests
13
100
100
MORRIS VERMAPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
13
Subsidiaries
These financial statements are separate company financial statements for Morris Vermaport Limited.
Details of the company's subsidiaries at 30 June 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Scarborough Lifts
England & Wales
Ordinary shares
100.00
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,279,121
2,570,463
Amounts owed by group undertakings
1,773,638
1,906,620
Other debtors
1,364,773
1,167,722
Prepayments and accrued income
19,166
25,775
6,436,698
5,670,580
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
17
179,861
98,251
Trade creditors
1,492,235
822,621
Amounts owed to group undertakings
100
100
Corporation tax
553,088
294,435
Other taxation and social security
556,289
567,068
Other creditors
68,969
41,775
Accruals and deferred income
2,151,738
2,328,281
5,002,280
4,152,531
All amounts due to group undertakings are unsecured, interest free and repayable on demand.
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
17
343,894
254,282
MORRIS VERMAPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
179,861
108,697
In two to five years
343,894
243,836
523,755
352,533
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
18
Provisions for liabilities
2024
2023
£
£
Other provisions
241,541
179,780
Movements on provisions:
Other provisions
£
At 1 July 2023
179,780
Movement in provisions
61,761
At 30 June 2024
241,541
The provisions in the accounts relate to Warranty provisions £126,206 (2023: £75,267), Dilapidations provisions £49,965 (2023: £48,510) and holiday pay provisions of £65,369 (2023: £56,003).
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
3,714,500 Ordinary shares of 1p each
3,714,500
3,714,500
37,145
37,145
20
Financial commitments, guarantees and contingent liabilities
Contingent liabilities exist by the virtue of cross guarantees over the bank indebtedness of Morris Vermaport Ltd’s ultimate parent company, EKJT Limited. At the year end there was a bank loan outstanding in the ultimate parent company of £nil (2023: £812,499). A fixed and floating charge over the assets of Morris Vermaport Ltd exists as security against the parent company debt.
Contingent liabilities exist by the virtue of cross guarantees over deferred consideration in the ultimate parent company, EKJT Limited. At the balance sheet date the maximum contingent liability under the cross guarantee amounted to £nil (2023: £800,00).
MORRIS VERMAPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
21
Operating lease commitments
Lessee
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
109,791
119,980
Between two and five years
269,445
305,196
In over five years
72,500
379,236
497,676
22
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
During the year the Company paid remuneration of £106,433 (2023 - £111,510) to people related to the directors.
During the year the Company paid expenses of £4,036 (2023: £nil) on behalf of a company ultimately owned by the Directors. At the year end a debtor was held in the accounts of £4,036 (2023: £nil).
Other information
Dividends totaling £2,835,000 (2023 - £1,823,550) were paid to Chanderhill Limited in the year in respect of shares held.
The company has taken advantage of the exemption provided by FRS102 from the requirement to report transactions with other group companies that are 100% subsidiaries of the parent company EKJT Limited.
23
Ultimate controlling party
The immediate parent company of Morris Vermaport Limited is Chanderhill Limited, a company incorporated in England and Wales. The Ultimate Parent Company is EKJT Limited, a company incorporated in England and Wales.
The ultimate controlling party is Phillip Marsden by virtue of his majority shareholding in EKJT Limited.
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