Company registration number 07543473 (England and Wales)
MAC RESEARCH LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
MAC RESEARCH LIMITED
COMPANY INFORMATION
Directors
Dr M C Dale
Mr J Ronson
Mrs C E Dale
Mr S Higham
Company number
07543473
Registered office
19 Park Road
Lytham St. Annes
FY8 1PW
Auditor
MHA
Richard House
9 Winckley Square
Preston
PR1 3HP
MAC RESEARCH LIMITED
CONTENTS
Page
Strategic report
1 - 5
Directors' report
6 - 7
Directors' responsibilities statement
8
Independent auditor's report
9 - 11
Profit and loss account
12
Group statement of comprehensive income
13
Group balance sheet
14
Company balance sheet
15
Group statement of changes in equity
16
Company statement of changes in equity
17
Group statement of cash flows
18
Notes to the financial statements
19 - 38
MAC RESEARCH LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The directors present the strategic report for the year ended 30 June 2024.
Review of the business
MAC RESEARCH LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Review of the business continued
MAC RESEARCH LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
Development and performance
MAC RESEARCH LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
Investing in marketing technology
The business continues to embrace the opportunities provided by the digital revolution. The group invests in research and development to enhance our IT and digital skills. Our marketing strategy has seen the business rank higher for key Clinical Research search terms while growing social media communities, which in turn has led to a growth of new business.
The group also operates paperless files in much of the business and is aiming for even greater coverage by the end of the next financial year. This goes hand in hand with a significant on-going investment in stringent cyber security measures. The group is currently adding in a variety of AI solutions to improve areas of the business.
In the community
With 9 local offices in the UK, maintaining close relationships with local communities is extremely important to the business and group actively supports the community from each of our local sites.
Future outlook
The future remains increasingly competitive for the group and a flexible and innovative approach to business operations will be required. However, we remain confident that we will continue to maintain and strive to improve our current level of performance by remaining agile in our approach and therefore able to capitalise on all opportunities. MAC has a proven track record of delivering studies across a multi-site operation and is expanding into Europe and North America which will allow it to attract more international CRO opportunities from its existing client base. Along with the 9 clinical sites in the UK we have opened a US facility. The group continues to invest into internal service growth adding in our pathology and bioanalytical services in 2024 located in our MHRA accredited Manchester Early Phase Unit.
Key performance indicators
Revenue remained stable in FY24 driven primarily driven by strong performance of MAC’s CRO services.
Wages & salaries currently represent the largest cost for MAC, being c.£16.5m during FY24, of which all are recognised in overheads.
Pipeline has continued to grow significantly in past 12 months and is forecast to continue. MAC’s global reach and scale will allow it to carry out its CRO services on larger trials and this trend will continue as the business grows. MAC is a full service CRO, working with leading pharmaceutical and biotechnology companies to assist them in the development of new and improved treatments for patients on a global basis. The Group utilises its full end-to-end clinical research capabilities to accommodate the most complex Phase I trials through to Phase IV and to date has completed over 350 trials.
MAC RESEARCH LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -
Description of Principle Risks and Uncertainties
The management of the business and the execution of the group strategy are subject to a number of risks. In 2023 and 2024 the group was affected by regulatory delays within the UK of many of its projects which had an impact on FY23 Q4 revenue and 2024 Q1 Q2 and Q3 revenues. All risks are formally reviewed by the board and appropriate processes put in place to monitor and mitigate them. The key business risks affecting the group are set out below:
Financial management risks
The group's operations expose it to a variety of financial risks that include the effects of changes in liquidity risk, cash flow risk and interest risk.
The business' principal financial instruments comprise bank overdrafts and, trade debtors and trade creditors. The main purpose of these instruments is to finance the business' operations. In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. All of the business' cash balances are held in such a way that achieves a competitive rate of interest. Cash flow projections are used to manage future plans.
The group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company. The group does not use derivative financial instruments to manage interest rate costs and no such hedge accounting is applied.
Competition
The group acknowledges that the principal risk to its business is competition. The group constantly reviews its performance to ensure the level of service offered is second to none. In addition, the group continues to actively market and promote its products and services. In Q1 2024 MAC Clinical Research Finance ltd acquired intelligent clinical ltd a Glasgow based research company to further expand our geographical reach and services within the UK.
Employee risks
The group acknowledges that employees are key to the success of the business and ensures that appropriate training and support are provided to secure longevity of service.
Economy
The Board is aware of risks associated with the general economic outlook and will continue to review the situation.
Analysis of Development and Performance
A number of projects started during the year that have continued post year end with the aim to streamline operations and improve internal efficiencies.
Dr M C Dale
Director
29 October 2024
MAC RESEARCH LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the company and group continued to be that of the management and consultancy of Clinical Trials.
Results and dividends
The results for the year are set out on page 12.
No ordinary dividends were paid. 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:
Dr M C Dale
Mr J Ronson
Mrs C E Dale
Mr S Higham
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Auditor
MHA were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the 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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
MAC RESEARCH LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
On behalf of the board
Dr M C Dale
Director
29 October 2024
MAC RESEARCH LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
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.
MAC RESEARCH LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MAC RESEARCH LIMITED
- 9 -
Opinion
We have audited the financial statements of MAC Research Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the group profit and loss account, 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 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 June 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.
MAC RESEARCH LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MAC RESEARCH LIMITED
- 10 -
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.
In the light of the knowledge and understanding of the group and 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.
Matters on which we are required to report by exception
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:
Enquiries with management about any known or suspected instances of non-compliance with laws and regulations;
Enquires with management about any known or suspected instances of fraud;
Auditing the risk of fraud in revenue by way of cut off testing, testing the deferral of income for invoices spanning the year end as well as sales transaction testing to obtain evidence that revenue is complete and recognised in the correct accounting period;
Examination of journal entries and other adjustments to test for appropriateness and identify any instances of management override of controls; and
Review of legal and professional expenditure to identify any evidence of ongoing litigation or enquiries.
MAC RESEARCH LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MAC RESEARCH LIMITED
- 11 -
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
Karen Hain BA FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Preston, United Kingdom
29 October 2024
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
MAC RESEARCH LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
2024
2023
Notes
£
£
Turnover
3
22,409,698
22,648,208
Cost of sales
(2,313,323)
(2,260,470)
Gross profit
20,096,375
20,387,738
Administrative expenses
(22,121,975)
(19,869,431)
Operating (loss)/profit
4
(2,025,600)
518,307
Interest receivable and similar income
6
30,331
36,568
Interest payable and similar expenses
7
(64,059)
(7,241)
Amounts written off investments
8
237,552
-
(Loss)/profit before taxation
(1,821,776)
547,634
Tax on (loss)/profit
9
2,706,277
1,744,664
Profit for the financial year
884,501
2,292,298
Profit for the financial year is all attributable to the owners of the parent company.
MAC RESEARCH LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
2024
2023
£
£
Profit for the year
884,501
2,292,298
Other comprehensive income
-
-
Total comprehensive income for the year
884,501
2,292,298
Total comprehensive income for the year is all attributable to the owners of the parent company.
MAC RESEARCH LIMITED
GROUP BALANCE SHEET
- 14 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
775,355
491,488
Tangible assets
11
1,846,067
1,272,711
Investments
13
4,002,088
1,311,908
6,623,510
3,076,107
Current assets
Debtors
15
10,889,082
10,855,690
Cash at bank and in hand
14,540
2,335,351
10,903,622
13,191,041
Creditors: amounts falling due within one year
16
(6,350,127)
(6,609,003)
Net current assets
4,553,495
6,582,038
Total assets less current liabilities
11,177,005
9,658,145
Creditors: amounts falling due after more than one year
17
(668,817)
(425,126)
Provisions for liabilities
Deferred tax liability
20
382,433
(382,433)
-
Net assets
10,125,755
9,233,019
Capital and reserves
Called up share capital
21
18,900
18,900
Other reserves
26,685
18,450
Profit and loss reserves
10,080,170
9,195,669
Total equity
10,125,755
9,233,019
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 29 October 2024 and are signed on its behalf by:
29 October 2024
Dr M C Dale
Director
Company registration number 07543473 (England and Wales)
MAC RESEARCH LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 15 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
532
532
Current assets
Debtors
15
76,142
40,034
Creditors: amounts falling due within one year
16
(6)
(6)
Net current assets
76,136
40,028
Net assets
76,668
40,560
Capital and reserves
Called up share capital
21
18,900
18,900
Other reserves
26,685
18,450
Profit and loss reserves
31,083
3,210
Total equity
76,668
40,560
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 £27,873 (2023 - £7,513 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 29 October 2024 and are signed on its behalf by:
29 October 2024
Dr M C Dale
Director
Company registration number 07543473 (England and Wales)
MAC RESEARCH LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
Share capital
Share option reserves
Profit and loss reserves
Total
£
£
£
£
Balance at 1 July 2022
18,900
7,213
6,903,371
6,929,484
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
2,292,298
2,292,298
Transfers
-
11,237
-
11,237
Balance at 30 June 2023
18,900
18,450
9,195,669
9,233,019
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
884,501
884,501
Transfers
-
8,235
-
8,235
Balance at 30 June 2024
18,900
26,685
10,080,170
10,125,755
MAC RESEARCH LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
Share capital
Share option reserves
Profit and loss reserves
Total
£
£
£
£
Balance at 1 July 2022
18,900
7,213
(4,303)
21,810
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
-
7,513
7,513
Transfers
-
11,237
-
11,237
Balance at 30 June 2023
18,900
18,450
3,210
40,560
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
27,873
27,873
Transfers
-
8,235
-
8,235
Balance at 30 June 2024
18,900
26,685
31,083
76,668
MAC RESEARCH LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
25
(1,677,094)
1,795,106
Interest paid
(64,059)
(7,241)
Income taxes refunded
2,051,632
1,281,989
Net cash inflow from operating activities
310,479
3,069,854
Investing activities
Purchase of business
(5,100)
-
Purchase of intangible assets
(283,867)
(304,835)
Purchase of tangible fixed assets
(1,063,155)
(1,190,743)
Purchase of investments
(2,452,628)
(1,311,908)
Interest received
30,331
36,568
Net cash used in investing activities
(3,774,419)
(2,770,918)
Financing activities
Payment of finance leases obligations
351,551
539,641
Net cash generated from financing activities
351,551
539,641
Net (decrease)/increase in cash and cash equivalents
(3,112,389)
838,577
Cash and cash equivalents at beginning of year
2,335,351
1,496,774
Cash and cash equivalents at end of year
(777,038)
2,335,351
Relating to:
Cash at bank and in hand
14,540
2,335,351
Bank overdrafts included in creditors payable within one year
(791,578)
-
MAC RESEARCH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
1
Accounting policies
Company information
MAC Research Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 19 Park Road, Lytham St. Annes, FY8 1PW. The principle place of business is Kaman Court, 1 Faraday Way, Blackpool, FY2 0JH.
The group consists of MAC Research Limited and all of its subsidiaries.
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.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
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 group has been in existence as a group in the current format for a number of years. The group was previously a small group and consolidated financial statements were not required. As a result, these consolidated financial statements have been accounted for using merger accounting principles. Therefore, although the group has not previously presented consolidated financial statements, these consolidated financial statements are presented as if they have.
MAC RESEARCH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 20 -
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company MAC Research 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.
The financial statements of the Parent Company and its trading subsidiaries are made up to 30 June 2024. The Company has five dormant subsidiaries whose financial statements are made up to 30 November 2021, however these companies have never traded and so their results would not impact on the consolidated financial statements. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.4
Going concern
At the time of approving the financial statements, the directors have a 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.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
MAC RESEARCH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 21 -
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.6
Intangible fixed assets - goodwill
Negative goodwill represents the excess of the fair value of net assets acquired over the purcahse price. It is initially recognised 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 one year.
1.7
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:
Software
25% straight line
1.8
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
25% straight line
Plant and equipment
25% straight line
Motor vehicles
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.9
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
MAC RESEARCH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 22 -
1.10
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.11
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.
1.12
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.
MAC RESEARCH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 23 -
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.
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.
MAC RESEARCH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 24 -
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.
1.13
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.14
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.
MAC RESEARCH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 25 -
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
Share-based payments
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Net Assets basis of valuation. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
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.
MAC RESEARCH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 26 -
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Revenue recogntion
Income from contracts is taken as the work is carried out and once certain milestones have been reached. These milestones are set out in each respective contract. The profit is calculated on a prudent basis to reflect the proportion of work carried out by the year end by recording turnover and related costs as contract activity progresses.
Amounts recoverable on contracts are amounts not yet invoiced for which work has been completed but not yet invoiced.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Provision of services
22,409,698
22,648,208
2024
2023
£
£
Turnover analysed by geographical market
UK
2,345,636
6,324,000
Europe
4,791,209
2,077,958
Rest of world
15,272,853
14,246,250
22,409,698
22,648,208
2024
2023
£
£
Other revenue
Interest income
30,331
36,568
MAC RESEARCH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
4
Operating (loss)/profit
2024
2023
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Fees payable to the group's auditor for the audit of the group's financial statements
-
3,500
Depreciation of owned tangible fixed assets
497,376
193,348
Amortisation of intangible assets
(1,762)
-
Share-based payments
8,235
11,237
5
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
Management
40
36
4
4
Operational staff
329
321
-
-
Total
369
357
4
4
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
15,068,297
13,772,880
8,235
11,237
Social security costs
1,590,924
1,443,924
-
-
16,659,221
15,216,804
8,235
11,237
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
30,331
36,568
MAC RESEARCH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 28 -
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
23,552
459
Interest on finance leases and hire purchase contracts
40,507
6,782
Total finance costs
64,059
7,241
8
Amounts written off investments
2024
2023
£
£
Fair value gains/(losses) on financial instruments
Gain on financial assets held at fair value through profit or loss
237,552
-
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(2,724,127)
(1,744,664)
Adjustments in respect of prior periods
(347,225)
Total current tax
(3,071,352)
(1,744,664)
Deferred tax
Origination and reversal of timing differences
128,587
Adjustment in respect of prior periods
236,488
Total deferred tax
365,075
Total tax credit
(2,706,277)
(1,744,664)
MAC RESEARCH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
9
Taxation
(Continued)
- 29 -
The actual credit for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
(Loss)/profit before taxation
(1,821,776)
547,634
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
(455,444)
136,909
Tax effect of expenses that are not deductible in determining taxable profit
8,964
5,433
Tax effect of income not taxable in determining taxable profit
(2,629)
Research and development tax credit
(2,240,404)
(1,850,395)
Superdeduction
594
(39,420)
Share option payments
(17,358)
2,809
Taxation credit
(2,706,277)
(1,744,664)
10
Intangible fixed assets
Group
Negative goodwill
Software
Total
£
£
£
Cost
At 1 July 2023
683,484
683,484
Additions
(1,762)
283,867
282,105
At 30 June 2024
(1,762)
967,351
965,589
Amortisation and impairment
At 1 July 2023
191,996
191,996
Amortisation charged for the year
(1,762)
(1,762)
At 30 June 2024
(1,762)
191,996
190,234
Carrying amount
At 30 June 2024
775,355
775,355
At 30 June 2023
491,488
491,488
The company had no intangible fixed assets at 30 June 2024 or 30 June 2023.
MAC RESEARCH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 30 -
11
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2023
467,983
2,744,265
20,500
3,232,748
Additions
68,797
1,001,935
1,070,732
At 30 June 2024
536,780
3,746,200
20,500
4,303,480
Depreciation and impairment
At 1 July 2023
288,261
1,651,276
20,500
1,960,037
Depreciation charged in the year
59,653
437,723
497,376
At 30 June 2024
347,914
2,088,999
20,500
2,457,413
Carrying amount
At 30 June 2024
188,866
1,657,201
1,846,067
At 30 June 2023
179,722
1,092,989
1,272,711
The company had no tangible fixed assets at 30 June 2024 or 30 June 2023.
12
Subsidiaries
Details of the company's subsidiaries at 30 June 2024 are as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
SMO Group Limited
1
Ordinary
100.00
-
SMO Research Innovations Ltd
1
Ordinary
100.00
-
Early Phase Services Limited
1
Ordinary
100.00
-
The Physiotherapy Group Ltd
1
Ordinary
100.00
-
The Manufacturing Group Ltd
1
Ordinary
100.00
-
The Radiology Group Ltd
1
Ordinary
100.00
-
Device Innovations Ltd
1
Ordinary
100.00
-
CRO Informatics Ltd
1
Ordinary
100.00
-
SMO Services Limited
1
Ordinary
100.00
-
SMO Outsourcing Limited
1
Ordinary
100.00
-
TABA Limited
3
Ordinary
100.00
-
MAC Research Corporation
2
Ordinary
100.00
-
MAC Clinical Research PTY Ltd
4
Ordinary
100.00
-
MAC Clinical Research Finance Ltd
1
Ordinary
100.00
-
Intelligent Clinical Limited
5
Ordinary
-
100.00
MAC RESEARCH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
12
Subsidiaries
(Continued)
- 31 -
Registered office addresses (all UK unless otherwise indicated):
1
19 Park Road, Lytham St. Annes, FY8 1PW
2
Jenkins Court, Suite 400, 610 Old York Road, Jenkintown, PA 19046, USA
3
E2 Nutgrove Office Park, Rathfamham, Dublin Ireland
4
Level 10, 171 Clarence Street, Sydney, NSW 2000, Australia
5
Ground floor Flemming Pavillion Todd campus, West Scotland Business Park, Glasgow, G20 0XA
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
12
532
532
Unlisted investments
1,764,536
1,311,908
Listed investments
2,237,552
4,002,088
1,311,908
532
532
Movements in fixed asset investments
Group
Investments
Listed investments
Total
£
£
£
Cost or valuation
At 1 July 2023
1,311,908
-
1,311,908
Additions
452,628
2,000,000
2,452,628
Valuation changes
-
237,552
237,552
At 30 June 2024
1,764,536
2,237,552
4,002,088
Carrying amount
At 30 June 2024
1,764,536
2,237,552
4,002,088
At 30 June 2023
1,311,908
1,311,908
MAC RESEARCH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
13
Fixed asset investments
(Continued)
- 32 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2023 and 30 June 2024
532
Carrying amount
At 30 June 2024
532
At 30 June 2023
532
14
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
1,764,536
1,311,908
-
-
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,682,801
4,049,950
Gross amounts owed by contract customers
522,739
2,190,261
Corporation tax recoverable
2,764,384
1,744,664
Amounts owed by group undertakings
-
-
56,984
38,234
Other debtors
2,234,534
2,190,542
1,800
1,800
Prepayments and accrued income
667,266
680,273
10,871,724
10,855,690
58,784
40,034
Deferred tax asset (note 20)
17,358
17,358
10,889,082
10,855,690
76,142
40,034
MAC RESEARCH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 33 -
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
791,578
Obligations under finance leases
19
222,375
114,515
Trade creditors
2,837,315
1,758,891
Amounts owed to related parties
472,849
Other taxation and social security
459,306
434,616
-
-
Other creditors
83,864
54,762
6
6
Accruals and deferred income
1,955,689
3,773,370
6,350,127
6,609,003
6
6
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
19
668,817
425,126
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank overdrafts
791,578
Payable within one year
791,578
Bank loans and overdrafts are secured by way of a fixed and floating charge over all the property and undertakings of the company and group.
19
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
222,375
114,515
In two to five years
668,817
425,126
891,192
539,641
-
-
MAC RESEARCH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
19
Finance lease obligations
(Continued)
- 34 -
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
435,306
-
-
-
Tax losses
(45,967)
-
-
-
Share based payments
-
-
17,358
-
Short term timing differences
(6,906)
-
-
-
382,433
-
17,358
-
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Share based payments
-
-
17,358
-
Group
Company
2024
2024
Movements in the year:
£
£
Asset at 1 July 2023
-
-
Charge/(credit) to profit or loss
365,075
(17,358)
Liability/(Asset) at 30 June 2024
365,075
(17,358)
MAC RESEARCH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 35 -
21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 0.01p each
171,000,000
171,000,000
17,100
17,100
Ordinary A of 0.01p each
3,800,000
3,800,000
380
380
Ordinary B of 0.01p each
14,200,000
14,200,000
1,420
1,420
189,000,000
189,000,000
18,900
18,900
On 1 February 2022 the company issued a bonus issue of shares at the rate of 845 new Ordinary Shares for every 1 existing Ordinary Share. This created 17,080 new £1 Ordinary Shares.
On 1 February 2022 the share capital was subdivided into 171,000,000 £0.0001 Ordinary Shares.
On the 1 February 2022 3,800,000 £0.0001 A Ordinary shares and 14,200,000 £0.0001 B Ordinary Shares were issued at par.
22
Share-based payment transactions
The parent company granted Enterprise Management Incentive (EMI) scheme options on 7 February 2022. The scheme gives employees the grant of an option to acquire 2,000,000 A Ordinary shares at £0.001 per share. The maximum term of the options is 10 years from the grant date, 1,000,000 are exercisable now and 1,000,000 are only exercisable on the sale of the company.
The company granted Enterprise Management Incentive (EMI) scheme options on 7 February 2022. The scheme gives employees the grant of an option to acquire 9,000,000 Ordinary shares at £0.001 per share. The maximum term of the options is 10 years from the grant date and they are only exercisable on the sale of the company.
Group
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£
£
Outstanding at 1 July 2023 and 30 June 2024
11,000,000
11,000,000
0.0001
-
Granted
-
-
-
0.0001
Exercisable at 30 June 2024
1,000,000
1,000,000
-
-
The options outstanding at 30 June 2024 had an exercise price ranging of £0.001, and a remaining contractual life of 8 years and 8 months.
MAC RESEARCH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
22
Share-based payment transactions
(Continued)
- 36 -
Company
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£
£
Outstanding at 1 July 2023 and 30 June 2024
11,000,000
11,000,000
0.0001
-
Granted
-
-
-
0.0001
Exercisable at 30 June 2024
1,000,000
1,000,000
-
-
The options outstanding at 30 June 2024 had an exercise price of £0.001, and a remaining contractual life of 8 years 8 months.
Company
The fair value of the share options was calculated using the Net Assets basis, which the Directors believe to be the most appropriate method.
Group
Company
2024
2023
2024
2023
£
£
£
£
Expenses recognised in the year
Arising from equity settled share based payment transactions
8,235
11,237
8,235
11,237
23
Acquisition of a business
On 15 March 2024 the group acquired 100 percent of the issued capital of Intelligent Clinical Limited.
Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
7,577
-
7,577
Inventories
822
-
822
Trade and other receivables
57,577
-
57,577
Cash and cash equivalents
5,000
-
5,000
Trade and other payables
(33,486)
-
(33,486)
Total identifiable net assets
37,490
-
37,490
Goodwill
(1,762)
Total consideration
35,728
MAC RESEARCH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
23
Acquisition of a business
(Continued)
- 37 -
The consideration was satisfied by:
£
Cash
10,100
Deferred consideration
25,628
35,728
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
36,270
Loss after tax
(6,532)
24
Operating lease commitments
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
387,982
556,732
-
-
Between two and five years
398,021
750,003
-
-
In over five years
63,000
99,000
-
-
849,003
1,405,735
-
-
MAC RESEARCH LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 38 -
25
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Profit for the year after tax
884,501
2,292,298
Adjustments for:
Taxation credited
(2,706,277)
(1,744,664)
Finance costs
64,059
7,241
Investment income
(30,331)
(36,568)
Amortisation and impairment of intangible assets
(1,762)
-
Depreciation and impairment of tangible fixed assets
497,376
193,348
Other gains and losses
(237,552)
-
Equity settled share based payment expense
8,235
11,237
Decrease in provisions
(25,628)
-
Movements in working capital:
Decrease in stocks
822
-
Decrease/(increase) in debtors
1,061,263
(1,217,176)
(Decrease)/increase in creditors
(1,191,800)
2,289,390
Cash (absorbed by)/generated from operations
(1,677,094)
1,795,106
26
Analysis of changes in net funds/(debt) - group
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
2,335,351
(2,320,811)
14,540
Bank overdrafts
(791,578)
(791,578)
2,335,351
(3,112,389)
(777,038)
Obligations under finance leases
(539,641)
(351,551)
(891,192)
1,795,710
(3,463,940)
(1,668,230)
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