Company registration number 02481929 (England and Wales)
MARTON GEOTECHNICAL SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
MARTON GEOTECHNICAL SERVICES LIMITED
COMPANY INFORMATION
Directors
Mr A M Osborne
Mr M A Clegg
Mr A Stupak
Secretary
Mr A M Osborne
Company number
02481929
Registered office
Geotechnical Centre
Rougham Industrial Estate
Rougham
Bury St Edmunds
IP30 9ND
Auditor
Ensors Accountants LLP
Saxon House
Moseley's Farm Business Centre
Fornham All Saints
Bury St Edmunds
IP28 6JY
MARTON GEOTECHNICAL SERVICES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 37
MARTON GEOTECHNICAL SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
The directors present the strategic report for the year ended 30 April 2024.
Review of the business
The directors note the group turnover fell slightly whilst gross margins remain steady following the strengthening of the management team and their focus on cost control, process efficiency and customer service. Turnover is down by 7.6% at £17,720,055 (2023: £19,170,892) with gross profit increasing by 3.1% to £4,436,152 (2023: £4,304,296).
The company’s strategic business plan continues to focus on increasing market share through product innovation, supply chain improvements, and continuously improving the customer experience. The company also remains committed to streamlining internal processes, reducing the operational carbon footprint, and managing costs.
Principal risks and uncertainties
The directors consider that the principal risks impacting the group are around rising interest rates, uncertainty in the economic and political landscape, exposure to gains and losses as a result of foreign currency transactions, fluctuations in material costs, and inflationary pressures on costs. The group uses forward currency and forward material purchases to try and mitigate currency risk. The group will continue to monitor the political uncertainty surrounding high inflation rates and the impact on wage, material, overheads, and interest costs.
The measures used by the directors to manage risks include the preparation of profit and loss and cash-flow budgets and the regular monitoring of actual performance against these.
Credit risk, as identified by the directors, arises from the group’s trade debtors. In order to manage credit risk, the directors set limits for customers and ensure the credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history. The UK debt is further protected by credit insurance on key accounts.
In respect of price risk, the directors forward purchase the majority of materials necessary to trade to limit their exposure to fluctuation in material costs.
The rising interest rates risk is being managed by reviewing borrowing levels, strict cash control and increased focus on credit control.
Development and performance
The directors consider they are in a strong position to take advantage of business opportunities as they arise, whilst aiming to remain competitive in existing markets.
Key performance indicators
The directors consider the following key performance indicators to be important to the business:
These are monitored on a month by month and annual basis.
Despite the directors being disappointed in the decreased sales turnover from 2023 to 2024, they are pleased that gross profit improved. This was the result of increased sales of more profitable product lines. The Current ratio is 1.63:1 (2023: 2.03:1) and liquidity remains positive. Total net assets have increased to £5.85m (2023: £5.51m).
MARTON GEOTECHNICAL SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Group Commentary
MGS Europe GmbH turnover significantly decreased this year by 17.1% to £4,154,522 (2023: £5,014,392) and has made a loss before tax of £110,989 (2023: £260,796). The directors noted that this was an expected result primarily due to decreased heat pump demand in a weakened economy and building sector, especially in Germany and the Netherlands.
Mr A Stupak
Director
31 January 2025
MARTON GEOTECHNICAL SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 April 2024.
Principal activities
The principal activity of the company and group continued to be that of manufacture and supply of products for geotechnical and geoenvironmental engineering.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £200,000. 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:
Mr A M Osborne
Mr M A Clegg
Mr A Stupak
Auditor
The auditor, Ensors Accountants LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect oftrue the business and principal risks review and future developments.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
On behalf of the board
Mr A Stupak
Director
31 January 2025
MARTON GEOTECHNICAL SERVICES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
MARTON GEOTECHNICAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MARTON GEOTECHNICAL SERVICES LIMITED
- 5 -
Opinion
We have audited the financial statements of Marton Geotechnical Services Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 30 April 2024 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
MARTON GEOTECHNICAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MARTON GEOTECHNICAL SERVICES LIMITED
- 6 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
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 extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our audit was designed to include tests of detail together with an assessment of the control environment to enable us to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement due to fraud. This included work on areas where we consider there is a higher risk of fraud including revenue recognition, management override of systems and control, transactions with related parties, commitments and contingencies and accounting estimates.
We also obtained an understanding of the legal and regulatory framework that the company operates in, through discussions with the directors and other management, and from our own knowledge and experience of the sector
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
MARTON GEOTECHNICAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MARTON GEOTECHNICAL SERVICES LIMITED
- 7 -
• Obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company are complying with the legal and regulatory framework both at the planning stage and reminded to remain alert throughout the audit;
• Inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
• Audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;
• Reviewing minutes of those charged with governance;
• Discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud;
• Robustly challenged accounting estimates to ensure no indication of management bias.
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Christopher Barrett (Senior Statutory Auditor)
For and on behalf of Ensors Accountants LLP
31 January 2025
Chartered Accountants
Statutory Auditor
Saxon House
Moseley's Farm Business Centre
Fornham All Saints
Bury St Edmunds
IP28 6JY
MARTON GEOTECHNICAL SERVICES LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
17,720,055
19,170,892
Cost of sales
(13,283,903)
(14,866,596)
Gross profit
4,436,152
4,304,296
Distribution costs
(801,541)
(685,235)
Administrative expenses
(2,905,728)
(2,839,522)
Other operating income
128,380
116,318
Operating profit
4
857,263
895,857
Interest receivable and similar income
8
7,380
2,063
Interest payable and similar expenses
9
(117,707)
(85,389)
Profit before taxation
746,936
812,531
Tax on profit
10
(218,293)
(202,328)
Profit for the financial year
27
528,643
610,203
Other comprehensive income
Currency translation gain/(loss) taken to retained earnings
6,972
(6,119)
Total comprehensive income for the year
535,615
604,084
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
MARTON GEOTECHNICAL SERVICES LIMITED
GROUP BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
1,818
2,410
Tangible assets
13
3,019,690
3,416,878
Investments
14
171,197
3,192,705
3,419,288
Current assets
Stocks
17
4,122,933
3,875,815
Debtors
18
3,534,836
3,222,787
Cash at bank and in hand
660,906
297,729
8,318,675
7,396,331
Creditors: amounts falling due within one year
19
(5,110,071)
(3,650,241)
Net current assets
3,208,604
3,746,090
Total assets less current liabilities
6,401,309
7,165,378
Creditors: amounts falling due after more than one year
20
(490,964)
(1,572,609)
Provisions for liabilities
Deferred tax liability
23
61,649
79,688
(61,649)
(79,688)
Net assets
5,848,696
5,513,081
Capital and reserves
Called up share capital
26
200
200
Profit and loss reserves
27
5,848,496
5,512,881
Total equity
5,848,696
5,513,081
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:
31 January 2025
Mr A Stupak
Director
Company registration number 02481929 (England and Wales)
MARTON GEOTECHNICAL SERVICES LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
1,818
2,410
Tangible assets
13
2,467,702
2,812,182
Investments
14
189,421
18,224
2,658,941
2,832,816
Current assets
Stocks
17
3,329,169
3,079,965
Debtors
18
3,910,948
3,237,782
Cash at bank and in hand
508,872
7,994
7,748,989
6,325,741
Creditors: amounts falling due within one year
19
(4,451,985)
(2,623,534)
Net current assets
3,297,004
3,702,207
Total assets less current liabilities
5,955,945
6,535,023
Creditors: amounts falling due after more than one year
20
(85,863)
(1,123,859)
Provisions for liabilities
Deferred tax liability
23
61,649
63,674
(61,649)
(63,674)
Net assets
5,808,433
5,347,490
Capital and reserves
Called up share capital
26
200
200
Profit and loss reserves
27
5,808,233
5,347,290
Total equity
5,808,433
5,347,490
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £660,943 (2023 - £444,305 profit).
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:
31 January 2025
Mr A Stupak
Director
Company registration number 02481929 (England and Wales)
MARTON GEOTECHNICAL SERVICES LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
200
5,108,797
5,108,997
Year ended 30 April 2023:
Profit for the year
-
610,203
610,203
Other comprehensive income:
Currency translation differences
-
(6,119)
(6,119)
Total comprehensive income
-
604,084
604,084
Dividends
11
-
(200,000)
(200,000)
Balance at 30 April 2023
200
5,512,881
5,513,081
Year ended 30 April 2024:
Profit for the year
-
528,643
528,643
Other comprehensive income:
Currency translation differences
-
6,972
6,972
Total comprehensive income
-
535,615
535,615
Dividends
11
-
(200,000)
(200,000)
Balance at 30 April 2024
200
5,848,496
5,848,696
MARTON GEOTECHNICAL SERVICES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
200
5,102,985
5,103,185
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
444,305
444,305
Dividends
11
-
(200,000)
(200,000)
Balance at 30 April 2023
200
5,347,290
5,347,490
Year ended 30 April 2024:
Profit and total comprehensive income
-
660,943
660,943
Dividends
11
-
(200,000)
(200,000)
Balance at 30 April 2024
200
5,808,233
5,808,433
MARTON GEOTECHNICAL SERVICES LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
34
239,430
496,016
Interest paid
(117,707)
(85,389)
Income taxes paid
(160,163)
(238,173)
Net cash (outflow)/inflow from operating activities
(38,440)
172,454
Investing activities
Purchase of intangible assets
(1,295)
(620)
Purchase of tangible fixed assets
(198,546)
(400,196)
Proceeds from disposal of tangible fixed assets
594,604
689
Purchase of investments
(171,197)
-
Interest received
7,380
2,063
Net cash generated from/(used in) investing activities
230,946
(398,064)
Financing activities
Movement of other borrowings
522,940
168,234
Proceeds from new bank loans
-
181,826
Repayment of bank loans
(153,504)
(147,151)
Payment of finance leases obligations
(22,554)
(30,520)
Dividends paid to equity shareholders
(200,000)
(200,000)
Directors loan accounts
7,471
(7,471)
Net cash generated from/(used in) financing activities
154,353
(35,082)
Net increase/(decrease) in cash and cash equivalents
346,859
(260,692)
Cash and cash equivalents at beginning of year
297,729
583,969
Effect of foreign exchange rates
16,318
(25,548)
Cash and cash equivalents at end of year
660,906
297,729
MARTON GEOTECHNICAL SERVICES LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
35
177,398
301,319
Interest paid
(100,913)
(72,943)
Income taxes paid
(66,311)
(201,585)
Net cash inflow from operating activities
10,174
26,791
Investing activities
Purchase of intangible assets
(1,295)
(620)
Purchase of tangible fixed assets
(135,818)
(129,397)
Proceeds from disposal of tangible fixed assets
581,008
Purchase of investments
(171,197)
Interest received
16,154
5,745
Net cash generated from/(used in) investing activities
288,852
(124,272)
Financing activities
Movement of other borrowings
522,940
168,234
Repayment of bank loans
(115,382)
(122,826)
Payment of finance leases obligations
(13,177)
(13,637)
Dividends paid to equity shareholders
(200,000)
(200,000)
Directors loan account
7,471
(7,471)
Net cash generated from/(used in) financing activities
201,852
(175,700)
Net increase/(decrease) in cash and cash equivalents
500,878
(273,181)
Cash and cash equivalents at beginning of year
7,994
281,175
Cash and cash equivalents at end of year
508,872
7,994
MARTON GEOTECHNICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
1
Accounting policies
Company information
Marton Geotechnical Services Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Geotechnical Centre, Rougham Industrial Estate, Rougham, Bury St Edmunds, IP30 9ND.
The group consists of Marton Geotechnical Services Limited and all of its subsidiaries. The UK subsidiaries all have the same registered office as the parent. The trading address for MGS Europe Gmbh is Brusseler Allee 21C 41812 Erkelenz Germany
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Basis of consolidation
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
The consolidated group financial statements consist of the financial statements of the parent company Marton Geotechnical Services Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 April 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
MARTON GEOTECHNICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Going concern
At the time of approving the financial statements, the directors have assessed their future performance across the group based on budgeted forecasts and cash flows. As a result of these, the Directors have reasonable expectation that the group 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.
1.4
Turnover
Revenue is measured as the fair value of the consideration received or receivable, net of discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
the group has transferred the significant risks and rewards of ownership to the buyer (usually on dispatch of the goods);
the group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
its probable that the group will receive the consideration due under the transaction;
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Patents & licences
5 years straight line
1.6
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:
Freehold buildings
2% - 10% straight line
Installation equipment and racking
25% straight line
Office furniture and equipment
10% - 33% straight line
Motor vehicles
17% - 25% straight line
Rental equipment
20% straight line with 50% residual value on rigs
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
MARTON GEOTECHNICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
1.7
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.10
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.
MARTON GEOTECHNICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 18 -
1.11
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
MARTON GEOTECHNICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 19 -
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 group's contractual obligations expire or are discharged or cancelled.
1.12
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
MARTON GEOTECHNICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 20 -
1.13
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.15
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.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
MARTON GEOTECHNICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 21 -
1.17
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
1.18
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.19
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.
1.20
Research & development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable
development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
MARTON GEOTECHNICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 22 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Stock provision
The group sells products which are subject to changing consumer demands. As a result it is necessary to consider the recoverability of the cost of the stock and the associated provision required. When calculating the provision, management considers the nature and age of the stock as well as applying assumptions around anticipated saleability of stock.
Bad debt provision
There is a risk that trade debtor balances may not be wholly recoverable. As a result bad debts are considered a key accounting estimate and it is necessary to consider the recoverability of the trade debtors and the associated provision required. When calculating the provision, management considers the age of the trade debtors as well as reviewing the likelihood of recoverability from various sources.
3
Turnover and other revenue
An analysis of the group's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
17,720,055
19,170,892
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
12,717,223
13,055,325
Middle East
660,795
824,157
Asia
6,217
24,738
Rest of World including Europe
4,335,820
5,266,672
17,720,055
19,170,892
2024
2023
£
£
Other revenue
Interest income
7,380
2,063
MARTON GEOTECHNICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
49,318
68,777
Depreciation of owned tangible fixed assets
260,393
258,562
Depreciation of tangible fixed assets held under finance leases
14,167
19,688
(Profit)/loss on disposal of tangible fixed assets
(282,776)
4,241
Amortisation of intangible assets
1,887
1,825
Operating lease charges
316,442
258,493
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
14,750
11,550
Audit of the financial statements of the company's subsidiaries
9,995
8,745
24,745
20,295
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Cost of sales
26
29
22
25
Distribution
12
11
9
9
Administrative
30
33
26
27
Total
68
73
57
61
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,426,226
2,300,866
2,096,210
1,992,662
Social security costs
291,090
269,335
218,412
205,965
Pension costs
45,787
94,027
45,441
92,752
2,763,103
2,664,228
2,360,063
2,291,379
MARTON GEOTECHNICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
114,739
103,410
Company pension contributions to defined contribution schemes
1,321
51,321
116,060
154,731
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
1,458
2,063
Other interest income
5,922
-
Total income
7,380
2,063
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
1,458
2,063
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
114,754
82,824
Other interest on financial liabilities
472
-
115,226
82,824
Other finance costs:
Interest on finance leases and hire purchase contracts
2,481
2,565
Total finance costs
117,707
85,389
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
223,062
200,733
Foreign current tax on profits for the current period
(2,744)
(2,886)
Total current tax
220,318
197,847
MARTON GEOTECHNICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
10
Taxation
2024
2023
£
£
(Continued)
- 25 -
Deferred tax
Origination and reversal of timing differences
(2,025)
4,481
Total tax charge
218,293
202,328
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
746,936
812,531
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.50%)
186,734
158,444
Tax effect of expenses that are not deductible in determining taxable profit
26,139
24,074
Unutilised tax losses carried forward
27,747
Capital gain
(24,202)
Other adjustments
1,875
19,810
Taxation charge
218,293
202,328
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
200,000
200,000
MARTON GEOTECHNICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 26 -
12
Intangible fixed assets
Group
Patents & licences
£
Cost
At 1 May 2023
32,560
Additions
1,295
At 30 April 2024
33,855
Amortisation and impairment
At 1 May 2023
30,150
Amortisation charged for the year
1,887
At 30 April 2024
32,037
Carrying amount
At 30 April 2024
1,818
At 30 April 2023
2,410
Company
Patents & licences
£
Cost
At 1 May 2023
32,560
Additions
1,295
At 30 April 2024
33,855
Amortisation and impairment
At 1 May 2023
30,150
Amortisation charged for the year
1,887
At 30 April 2024
32,037
Carrying amount
At 30 April 2024
1,818
At 30 April 2023
2,410
MARTON GEOTECHNICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 27 -
13
Tangible fixed assets
Group
Freehold buildings
Installation equipment and racking
Office furniture and equipment
Motor vehicles
Rental equipment
Total
£
£
£
£
£
£
Cost
At 1 May 2023
4,003,472
1,786,800
351,232
192,664
5,673
6,339,841
Additions
126,169
40,731
31,646
198,546
Disposals
(350,000)
(281,959)
(24,606)
(656,565)
Exchange adjustments
(1,696)
(18,448)
1,372
(3,292)
(22,064)
At 30 April 2024
3,651,776
1,612,562
393,335
196,412
5,673
5,859,758
Depreciation and impairment
At 1 May 2023
1,139,026
1,346,944
271,079
162,099
3,815
2,922,963
Depreciation charged in the year
81,461
127,009
42,232
22,000
1,858
274,560
Eliminated in respect of disposals
(70,000)
(250,139)
(24,606)
(344,745)
Exchange adjustments
(836)
(5,361)
(4,070)
(2,443)
(12,710)
At 30 April 2024
1,149,651
1,218,453
309,241
157,050
5,673
2,840,068
Carrying amount
At 30 April 2024
2,502,125
394,109
84,094
39,362
3,019,690
At 30 April 2023
2,864,446
439,856
80,153
30,565
1,858
3,416,878
MARTON GEOTECHNICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
13
Tangible fixed assets
(Continued)
- 28 -
Company
Freehold buildings
Installation equipment and racking
Office furniture and equipment
Motor vehicles
Rental equipment
Total
£
£
£
£
£
£
Cost
At 1 May 2023
3,643,357
1,334,527
299,837
74,053
5,673
5,357,447
Additions
99,677
36,141
135,818
Disposals
(350,000)
(269,790)
(619,790)
At 30 April 2024
3,293,357
1,164,414
335,978
74,053
5,673
4,873,475
Depreciation and impairment
At 1 May 2023
1,058,145
1,162,953
246,299
74,053
3,815
2,545,265
Depreciation charged in the year
74,014
76,240
28,536
1,858
180,648
Eliminated in respect of disposals
(70,000)
(250,140)
(320,140)
At 30 April 2024
1,062,159
989,053
274,835
74,053
5,673
2,405,773
Carrying amount
At 30 April 2024
2,231,198
175,361
61,143
2,467,702
At 30 April 2023
2,585,212
171,574
53,538
1,858
2,812,182
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
as restated
£
£
£
£
Installation equipment and racking
19,452
50,113
11,175
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
18,224
18,224
Unlisted investments
171,197
171,197
171,197
189,421
18,224
MARTON GEOTECHNICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
14
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 May 2023
-
Additions
171,197
At 30 April 2024
171,197
Carrying amount
At 30 April 2024
171,197
At 30 April 2023
-
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 May 2023
18,224
-
18,224
Additions
-
171,197
171,197
At 30 April 2024
18,224
171,197
189,421
Carrying amount
At 30 April 2024
18,224
171,197
189,421
At 30 April 2023
18,224
-
18,224
15
Subsidiaries
Details of the company's subsidiaries at 30 April 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Agru Environmental Technology Limited
England
Ordinary
100.00
Geothermal Supplies Limited
England
Ordinary
100.00
Lionteam Limited
England
Ordinary
100.00
MGS Europe GmbH
Germany
Ordinary
100.00
Vaston Limited
England
Ordinary
100.00
Thermal E Limited
England
Ordinary
100.00
The UK subsidiaries all have the same registered office as the parent. The trading address for MGS Europe Gmbh is Brusseler Allee 21C 41812 Erkelenz Germany. All subsidiaries have been included in the consolidated financial statements.
MARTON GEOTECHNICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 30 -
16
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
2,966,200
2,900,822
3,432,858
2,944,158
Carrying amount of financial liabilities
Measured at amortised cost
4,775,126
4,630,503
3,734,276
3,275,071
17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
4,086,152
3,875,815
3,292,388
3,079,965
Work in progress
36,781
-
36,781
-
4,122,933
3,875,815
3,329,169
3,079,965
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,764,068
2,876,758
2,581,432
2,567,206
Corporation tax recoverable
4,801
Amounts owed by group undertakings
-
-
649,294
352,888
Other debtors
202,132
24,064
202,132
24,064
Prepayments and accrued income
563,835
321,965
478,090
293,624
3,534,836
3,222,787
3,910,948
3,237,782
MARTON GEOTECHNICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 31 -
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
21
1,161,694
253,030
1,088,786
177,802
Obligations under finance leases
22
17,778
22,255
10,229
13,176
Other borrowings
21
691,174
168,234
691,174
168,234
Trade creditors
2,105,866
2,305,457
1,618,315
1,534,875
Amounts owed to group undertakings
105
105
Corporation tax payable
161,062
80,092
161,062
7,055
Other taxation and social security
619,834
465,842
597,497
418,854
Government grants
24
1,400
1,400
1,400
1,400
Other creditors
30,113
25,034
30,113
25,034
Accruals and deferred income
321,150
328,897
253,304
276,999
5,110,071
3,650,241
4,451,985
2,623,534
Hire purchase creditors are secured on the assets to which they relate.
20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
444,423
1,506,591
42,250
1,068,616
Obligations under finance leases
22
2,928
21,005
10,230
Government grants
24
43,613
45,013
43,613
45,013
490,964
1,572,609
85,863
1,123,859
Hire purchase creditors are secured on the assets to which they relate.
Amounts included above which fall due after five years are as follows:
Payable by instalments
155,554
159,439
-
-
MARTON GEOTECHNICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 32 -
21
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
1,606,117
1,759,621
1,131,036
1,246,418
Other loans
691,174
168,234
691,174
168,234
2,297,291
1,927,855
1,822,210
1,414,652
Payable within one year
1,852,868
421,264
1,779,960
346,036
Payable after one year
444,423
1,506,591
42,250
1,068,616
There was a bank loan amounting to £1,049,786 (2023: £1,126,168) at the year end, this has a term of 3 years and repayments have been calculated on the basis of a 15 year repayment profile. Interest is charged at a floating rate but will not be below the margin of 2.25%.
The Coronavirus Business Interruption Loan (CBILS) obtained amounts to £81,250 (2023: £120,250) at the year end. Repayments have been calculated on the basis of a 5 year repayment profile, with interest payable charged at a rate of 4.08%.
All the company's bank loans are secured by a fixed and floating charge over the company's assets.
There were five (2023: three) bank loans brought forward in the subsidiary amounting to £452,340 (2022: £337,073) and a new loan issued of £22,741 (2023: two new loans issued of £176,130) at the year end. Interest is being charged on these five loans at rates between 1%-6.75% (2023: 1%-2.89%).
All the subsidiary's bank loans are secured by a fixed and floating charge over a freehold property and a number of items of plant and machinery.
22
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
17,778
22,255
10,229
13,176
In two to five years
2,928
21,005
10,230
20,706
43,260
10,229
23,406
Finance lease payments represent rentals payable by the group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
MARTON GEOTECHNICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 33 -
23
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
61,649
79,688
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
61,649
63,674
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 May 2023
79,688
63,674
Credit to profit or loss
(18,039)
(2,025)
Liability at 30 April 2024
61,649
61,649
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
24
Deferred grants
Group
Company
2024
2023
2024
2023
£
£
£
£
Arising from government grants
45,013
46,413
45,013
46,413
Deferred income is included in the financial statements as follows:
Current liabilities
1,400
1,400
1,400
1,400
Non-current liabilities
43,613
45,013
43,613
45,013
45,013
46,413
45,013
46,413
The Government grant is being released over the life of the relevant asset being freehold buildings which are being depreciated over 50 years.
MARTON GEOTECHNICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 34 -
25
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
45,787
94,027
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
26
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
200
200
200
200
The company has one class of ordinary shares which carry no right to fixed income. Each ordinary share ranks pari passu in regards to voting rights and the right to a dividend.
27
Profit and loss reserves
The profit and loss account includes all current and prior period retained profits and losses.
28
Financial commitments, guarantees and contingent liabilities
At the year end the company had outstanding forward currency contracts for the purposes of paying its creditors. The total commitments are for €Nil (2023: €Nil) and $75,000 (2023: $Nil), for 1 month after the year end). The effect of the contracts are to hedge the company's exposure to fluctuation in the exchange rates.
29
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
313,676
325,633
313,676
325,633
Between two and five years
255,489
554,523
255,489
554,523
In over five years
-
1,635
-
1,635
569,165
881,791
569,165
881,791
Elizabeth House was sold in the financial year on 30th April 2024, however on the 7th May 2024 an operating lease agreement was drawn up to lease Elizabeth House for a period of 12 years at £48,000 per annum.
MARTON GEOTECHNICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 35 -
30
Capital commitments
Amounts contracted for but not provided in the financial statements:
Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
104,611
-
-
-
31
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Group
Entities under common control
162,009
139,133
3,770
15,311
Other related parties
-
-
112,000
112,210
Company
Entities under common control
162,009
139,133
3,770
15,311
Other related parties
-
-
112,000
177,106
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2024
2023
£
£
Group
Entities under common control
-
11,828
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Entities under common control
-
3,951
Other related parties
200,000
-
Company
Entities under common control
-
15,789
Other related parties
200,000
-
MARTON GEOTECHNICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 36 -
32
Directors' transactions
Dividends totalling £200,000 (2023 - £200,000) were paid in the year in respect of shares held by the company's directors.
At 30 April 2024 the directors current accounts amounted to £21,843 creditor (2023: £7,471 debtor) included in other creditors.
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Mr A M Osborne -
-
2,051
89,643
(100,000)
(8,306)
Mr M A Clegg -
-
5,420
81,043
(100,000)
(13,537)
7,471
170,686
(200,000)
(21,843)
33
Ultimate controlling party
The directors consider the ultimate controlling party to be A M Osborne & M A Clegg, by virtue of their shareholding in the company.
The Consolidated accounts of Marton Geotechnical Services Limited are the smallest and largest group into with the results of the company for the year ended 30 April 2024 are consolidated. Copies of the consolidated accounts are available from Companies House, Crown Way, Cardiff, CF14 3UZ.
34
Cash generated from group operations
2024
2023
£
£
Profit after taxation
528,643
610,203
Adjustments for:
Taxation charged
218,293
202,328
Finance costs
117,707
85,389
Investment income
(7,380)
(2,063)
(Gain)/loss on disposal of tangible fixed assets
(282,776)
4,241
Amortisation and impairment of intangible assets
1,887
1,825
Depreciation and impairment of tangible fixed assets
274,560
278,250
Movements in working capital:
(Increase)/decrease in stocks
(247,118)
349,069
Increase in debtors
(314,719)
(282,582)
Decrease in creditors
(48,267)
(749,244)
Decrease in deferred income
(1,400)
(1,400)
Cash generated from operations
239,430
496,016
MARTON GEOTECHNICAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 37 -
35
Cash generated from operations - company
2024
2023
£
£
Profit after taxation
660,943
444,305
Adjustments for:
Taxation charged
218,293
131,876
Finance costs
100,913
72,943
Investment income
(16,154)
(5,745)
Gain on disposal of tangible fixed assets
(281,358)
-
Amortisation and impairment of intangible assets
1,887
1,825
Depreciation and impairment of tangible fixed assets
180,648
193,023
Movements in working capital:
(Increase)/decrease in stocks
(249,204)
274,497
Increase in debtors
(680,637)
(246,710)
Increase/(decrease) in creditors
243,467
(563,295)
Decrease in deferred income
(1,400)
(1,400)
Cash generated from operations
177,398
301,319
36
Analysis of changes in net debt - group
1 May 2023
Cash flows
Exchange rate movements
30 April 2024
£
£
£
£
Cash at bank and in hand
297,729
346,859
16,318
660,906
Borrowings excluding overdrafts
(1,927,855)
(369,436)
-
(2,297,291)
Obligations under finance leases
(43,260)
22,554
-
(20,706)
(1,673,386)
(23)
16,318
(1,657,091)
37
Analysis of changes in net debt - company
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
7,994
500,878
508,872
Borrowings excluding overdrafts
(1,414,652)
(407,558)
(1,822,210)
Obligations under finance leases
(23,406)
13,177
(10,229)
(1,430,064)
106,497
(1,323,567)
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