Company registration number 03713395 (England and Wales)
THE MAILING ROOM LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
THE MAILING ROOM LIMITED
COMPANY INFORMATION
Directors
G Bevan
H Bevan
M Smith
Secretary
H Bevan
Company number
03713395
Registered office
Bevan Kidwell LLP
113-117 Farringdon Road
London
EC1R 3BX
Auditor
Lopian Gross Barnett & Co
1st Floor, Cloister House
Riverside
New Bailey Street
Manchester
M3 5FS
Business address
Southerly 7
Waterfold Business Park
Bury
BL9 7BR
THE MAILING ROOM LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 19
THE MAILING ROOM LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 1 -

The directors present the strategic report for the year ended 31 July 2024.

Review of the business

The principal activities of the company comprise of the supply and servicing of mailing equipment solutions, other office systems and consumable goods.

 

Overall, external sales decreased by 2% in the year to £15,357,947 (2023: £15,645,772), with an operating profit of £3,060,165 (2023: £2,992,743).

 

The company made charitable donations of £268,035.

Principal risks and uncertainties

The principal risks and uncertainties of the business relate to the general economic environment in the United Kingdom created by the rise in inflation. The Company continues to take substantial actions to mitigate these risks by taking tight control of cash flow and expenditure.

 

Declining postal volumes could have an adverse effect on business profits; however the rate of decline remains much slower than forecasted and new product opportunities continue to be developed.

 

The Company continues to manage and mitigate this risk by offering our customers superior customer experience and support from within the UK along with competitive pricing.

Development and performance

The financial position of the company is set out in the balance sheet on page 8. Net assets at 31 July 2024 were £5,263,381 (2023: Net assets of £4,502,128), an increase of 17% on the previous year.

 

A dividend of £1,500,000 was paid during the year (2023: £1,000,000).

Future performance

The strategy of growth through both organic and acquisitions allied with the review and refinement of our systems continues to be reflected in current performance. Trading to date is in line with our budget expectations.

On behalf of the board

M Smith
Director
22 November 2024
THE MAILING ROOM LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 July 2024.

Principal activities

The principal activity of the company continued to be that of selling postal franking machines and associated equipment.

Results and dividends

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

Ordinary dividends were paid amounting to £1,500,000. 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:

G Bevan
H Bevan
M Smith
Auditor

Lopian Gross Barnett & Co were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be reappointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
M Smith
Director
22 November 2024
THE MAILING ROOM LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JULY 2024
- 3 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

THE MAILING ROOM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF THE MAILING ROOM LIMITED
- 4 -
Opinion

We have audited the financial statements of The Mailing Room Limited (the 'company') for the year ended 31 July 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

 

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

THE MAILING ROOM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF THE MAILING ROOM LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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.

 

 

 

 

 

 

 

THE MAILING ROOM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF THE MAILING ROOM LIMITED (CONTINUED)
- 6 -

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Nathaniel Davidson BA(Hons) ACA
Senior Statutory Auditor
For and on behalf of Lopian Gross Barnett & Co
22 November 2024
Chartered Accountants
Statutory Auditor
1st Floor, Cloister House
Riverside
New Bailey Street
Manchester
M3 5FS
THE MAILING ROOM LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
15,357,947
15,645,772
Cost of sales
(6,964,838)
(8,124,385)
Gross profit
8,393,109
7,521,387
Administrative expenses
(5,362,944)
(4,573,818)
Other operating income
30,000
45,174
Operating profit
4
3,060,165
2,992,743
Interest receivable and similar income
7
-
0
3,358
Interest payable and similar expenses
8
(14,095)
(3,042)
Profit before taxation
3,046,070
2,993,059
Tax on profit
9
(784,817)
(651,776)
Profit for the financial year
2,261,253
2,341,283

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

THE MAILING ROOM LIMITED
BALANCE SHEET
AS AT
31 JULY 2024
31 July 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
485,360
236,916
Current assets
Stocks
13
328,850
575,416
Debtors
14
7,720,455
6,157,627
Cash at bank and in hand
896,404
1,579,231
8,945,709
8,312,274
Creditors: amounts falling due within one year
15
(3,998,570)
(3,974,416)
Net current assets
4,947,139
4,337,858
Total assets less current liabilities
5,432,499
4,574,774
Creditors: amounts falling due after more than one year
16
(88,515)
(51,432)
Provisions for liabilities
Deferred tax liability
18
80,603
21,214
(80,603)
(21,214)
Net assets
5,263,381
4,502,128
Capital and reserves
Called up share capital
20
1
1
Profit and loss reserves
5,263,380
4,502,127
Total equity
5,263,381
4,502,128

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 22 November 2024 and are signed on its behalf by:
M Smith
Director
Company registration number 03713395 (England and Wales)
THE MAILING ROOM LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 August 2022
1
3,160,844
3,160,845
Year ended 31 July 2023:
Profit and total comprehensive income
-
2,341,283
2,341,283
Dividends
10
-
(1,000,000)
(1,000,000)
Balance at 31 July 2023
1
4,502,127
4,502,128
Year ended 31 July 2024:
Profit and total comprehensive income
-
2,261,253
2,261,253
Dividends
10
-
(1,500,000)
(1,500,000)
Balance at 31 July 2024
1
5,263,380
5,263,381
THE MAILING ROOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 10 -
1
Accounting policies
Company information

The Mailing Room Limited is a private company limited by shares incorporated in England and Wales. The registered office is Bevan Kidwell LLP, 113-117 Farringdon Road, London, EC1R 3BX C/O Bevan Kidwell, 113-117 Farringdon Road, London, EC1R 3BX.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of The Mailing Room Holdings Limited. These consolidated financial statements are available from its registered office, Bevan Kidwell LLP, 113-117 Farringdon Road, London, EC1R 3BX.

1.2
Going concern

At the time of preparing the financial statements the directors have considered thattrue the company will have adequate resources to continue trading for the foreseeable future. As a result the directors have continued to adopt the going concern basis in preparing the financial statements.

1.3
Turnover

Revenue represents the amounts received or receivable for the rental of postal franking machines and the sale of associated equipment and is recognised net of VAT.

1.4
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.

 

Software
Straight line basis over 4 years
1.5
Tangible fixed assets

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

THE MAILING ROOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 11 -

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

Leasehold land and buildings
25% straight line
Plant and equipment
25% straight line
Fixtures and fittings
15% straight line
Computers
33% 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 credited or charged to profit or loss.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

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.

1.7
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.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

THE MAILING ROOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 12 -
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.

Derecognition of financial liabilities

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

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled.

1.11
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.

1.12
Retirement benefits

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

THE MAILING ROOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 13 -
1.13
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.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
15,357,947
15,645,772
2024
2023
£
£
Turnover analysed by geographical market
UK
15,357,947
15,645,772
2024
2023
£
£
Other revenue
Interest income
-
3,358
THE MAILING ROOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 14 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
39,500
29,001
Depreciation of owned tangible fixed assets
81,077
59,047
Depreciation of tangible fixed assets held under finance leases
55,294
45,715
(Profit)/loss on disposal of tangible fixed assets
(1,646)
5,318
Amortisation of intangible assets
-
13,338
Operating lease charges
95,251
82,423
5
Employees

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

2024
2023
Number
Number
58
58

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
6,367,174
5,458,166
Social security costs
499,824
397,189
Pension costs
131,667
128,364
6,998,665
5,983,719
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
1,292,216
878,822
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
522,075
367,359
THE MAILING ROOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 15 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
-
0
3,358
8
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
5,641
3,042
Other interest
8,454
-
0
14,095
3,042
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
725,428
651,116
Deferred tax
Origination and reversal of timing differences
59,389
(5,831)
Changes in tax rates
-
0
6,491
Total deferred tax
59,389
660
Total tax charge
784,817
651,776

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
3,046,070
2,993,059
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.00%)
761,518
628,542
Tax effect of expenses that are not deductible in determining taxable profit
504
3,140
Permanent capital allowances in excess of depreciation
(36,594)
(19,263)
Other adjustments
59,389
39,357
Taxation charge for the year
784,817
651,776
THE MAILING ROOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 16 -
10
Dividends
2024
2023
£
£
Final paid
1,500,000
1,000,000
11
Intangible fixed assets
Software
£
Cost
At 1 August 2023 and 31 July 2024
50,714
Amortisation and impairment
At 1 August 2023 and 31 July 2024
50,714
Carrying amount
At 31 July 2024
-
0
At 31 July 2023
-
0

 

12
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 August 2023
77,715
175,456
86,347
240,632
281,208
861,358
Additions
146,429
20,703
15,191
13,094
244,841
440,258
Disposals
(61,275)
(90,374)
(75,073)
(14,511)
(119,530)
(360,763)
At 31 July 2024
162,869
105,785
26,465
239,215
406,519
940,853
Depreciation and impairment
At 1 August 2023
67,264
135,906
69,784
235,939
115,549
624,442
Depreciation charged in the year
16,416
18,351
10,258
4,454
86,892
136,371
Eliminated in respect of disposals
(61,275)
(87,537)
(70,324)
(14,511)
(71,673)
(305,320)
At 31 July 2024
22,405
66,720
9,718
225,882
130,768
455,493
Carrying amount
At 31 July 2024
140,464
39,065
16,747
13,333
275,751
485,360
At 31 July 2023
10,451
39,550
16,563
4,693
165,659
236,916
THE MAILING ROOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
12
Tangible fixed assets
(Continued)
- 17 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Motor vehicles
190,802
119,365
13
Stocks
2024
2023
£
£
Machine Stock
328,850
575,416
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
784,970
666,012
Amounts owed by group undertakings
6,830,735
5,403,569
Other debtors
17,986
11,368
Prepayments and accrued income
86,764
76,678
7,720,455
6,157,627
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
17
64,802
51,529
Trade creditors
443,377
659,355
Amounts owed to group undertakings
250,319
232,192
Corporation tax
278,427
435,794
Other taxation and social security
666,126
437,870
Other creditors
47,213
111,112
Accruals and deferred income
2,248,306
2,046,564
3,998,570
3,974,416
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
17
88,515
51,432
THE MAILING ROOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 18 -
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
64,802
51,529
In two to five years
88,515
51,432
153,317
102,961

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

18
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
80,603
21,214
2024
Movements in the year:
£
Liability at 1 August 2023
21,214
Charge to profit or loss
59,389
Liability at 31 July 2024
80,603

 

19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
131,667
128,364

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

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
1
1
1
1
THE MAILING ROOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
20
Share capital
(Continued)
- 19 -
21
Related party transactions

Dividends of £1,500,000 were paid out to shareholders (2023: £1,000,000).

 

During the period the company made donations of £40,000 (2023: £240,000) to a registered society where one of the directors is a registered member.

 

There were no other related party transactions outside the normal course of business.

22
Events after the reporting date

There were no events after the reporting period date which require disclosure at the balance sheet date.

23
Ultimate controlling party

The company is a wholly owned subsidiary of The Mailing Room Holdings Limited. The registered office of The Mailing Room Holdings Limited is Bevan Kidwell LLP, 113-117 Farringdon Road, London, EC1R 3BX.

The ultimate controlling parties are G Bevan and H Bevan.

THE MAILING ROOM LIMITED
MANAGEMENT INFORMATION
FOR THE YEAR ENDED 31 JULY 2024
THE MAILING ROOM LIMITED
DETAILED TRADING AND PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JULY 2024
2024
2023
£
£
£
£
Turnover
Sales of goods
15,357,947
15,645,772
Cost of sales
Raw materials purchases
3,979,637
5,284,820
Staff commissions payable
2,985,201
2,839,565
(6,964,838)
(8,124,385)
Gross profit
8,393,109
7,521,387
Other operating income
Management charge receivable from group companies
30,000
45,174
Administrative expenses
(5,362,944)
(4,573,818)
Operating profit
3,060,165
2,992,743
Investment revenues
Bank interest received
-
3,358
-
3,358
Interest payable and similar expenses
Hire purchase interest payable
5,641
3,042
Interest on overdue taxation - not financial liabilities
8,454
-
(14,095)
(3,042)
Profit before taxation
3,046,070
2,993,059
THE MAILING ROOM LIMITED
SCHEDULES TO THE PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JULY 2024
2024
2023
£
£
Administrative expenses
Wages and salaries
2,089,757
1,739,779
Social security costs
499,824
397,189
Staff recruitment costs
7,364
6,248
Staff welfare
5,447
12,993
Staff training
10,613
17,611
Staff pension costs defined contribution
131,667
128,364
Directors' remuneration
1,292,216
878,822
Management charge - group
68,555
78,216
Rent re operating leases
95,251
82,423
Rates
29,243
8,695
Cleaning
13,656
11,834
Power, light and heat
72,042
79,869
Property repairs and maintenance
4,580
611
Premises insurance
21,171
13,972
Equipment repairs
2,139
4,121
Computer running costs
82,161
83,803
Motor running expenses
80,715
111,861
Travelling expenses
13,704
21,955
Accommodation and subsistence
18,378
13,888
Postage, courier and delivery charges
27,470
22,711
Professional subscriptions
4,337
7,851
Legal and professional fees
47,049
100,797
Consultancy fees
119,392
164,299
Audit fees
39,500
29,001
Charitable donations
268,035
285,280
Bank charges
9,822
7,988
Bad and doubtful debts
10,901
24,458
Printing and stationery
12,536
10,264
Advertising
64,142
100,392
Website costs
28,006
30,147
Telecommunications
34,177
41,019
Entertaining
3,097
1,392
Sundry expenses
21,272
(67,453)
Amortisation
-
13,338
Depreciation
136,371
104,762
Profit or loss on sale of tangible assets (non exceptional)
(1,646)
5,318
5,362,944
4,573,818
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