REGISTERED NUMBER: 03787259 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
MCS SOLUTIONS LIMITED |
REGISTERED NUMBER: 03787259 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
MCS SOLUTIONS LIMITED |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 | to | 3 |
Report of the Directors | 4 | to | 5 |
Report of the Independent Auditors | 6 | to | 9 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Statement of Financial Position | 12 |
Company Statement of Financial Position | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Statement of Cash Flows | 16 |
Notes to the Consolidated Statement of Cash Flows | 17 | to | 18 |
Notes to the Consolidated Financial Statements | 19 | to | 32 |
MCS SOLUTIONS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
First Floor North |
40 Oxford Road |
High Wycombe |
Buckinghamshire |
HP11 2EE |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The principal activity of the group during the year continued to be that of specialist developer of a market leading vertical market ERP business software package for Equipment Hire and Rental companies. Our software "MCS-rm" is sold worldwide including USA and Canada. MCS markets and sells the software package on a subscription basis through its branches, subsidiaries and partners. MCS provides associated consultancy, hosting, implementation & training services to ensure that the software is effective for our customers. |
The financial year has again shown a healthy trading profit before taxation amounting to £1,521,180 (2022: £1,278,845). MCS has also achieved growth in recurring revenue and has further developed its range of products offered to its customer base. |
The company has benefited from strategic planning. For example, the upgrade of our hosting environment and the ongoing development of our Mobile App and our RM Web product. In addition to this, development of our Knowledge Base (KB) is ongoing. The KB now has the French KB, where our French customers can search and read the documents in French. We are slowly moving to a position whereby any new or altered English document will be automatically translated into French. We intend to roll this out to other languages as well in 2024. |
During this financial year, the company experienced healthy growth in revenue when compared to the previous financial years. As a consequence of this, the company has also seen continuing growth in its recurring revenues which reached just over £5.5m for the year. |
PRINCIPLE RISKS AND UNCERTAINTIES |
The management of the business and the execution of the Company's strategy are subject to a number of risks. The key business risks affecting the business are set out below. Risks are formally reviewed by the Board and appropriate processes put in place to monitor and mitigate them. If more than one event occurs, it is possible that the overall effect of such events would compound the possible adverse effects on the Company. |
Cyber Attack |
The Company provides a significant number of its customers with hosting services for our software. As such, managing our own servers and software exposes the Company to various security risks, including hacking attempts, malware issues and data breaches. To mitigate these risks we have introduced MFA for all remote, privileged, administrator and supplier access to our computer system. We also undertake annual penetration testing of our systems and ensure employees undergo training, which covers, as a minimum, data privacy, phishing and IT security, at least annually, to increase their knowledge and awareness. |
Competition |
The Company operates in a competitive market particularly with rapid technological development. We continue to invest significantly in R&D with our core products and will continue to increase these investments to include performance enhancements, bug fixes and integration of new technologies to the market. |
Employees |
The Company's performance depends largely on our staff. The loss of key individuals and the inability to recruit people with the right experience and skills could adversely impact the Company's results. To mitigate these issues the Company provides comprehensive training and learning programmes for all employees alongside competitive remuneration packages designed to retain key individuals |
Foreign exchange risk |
The Company operates internationally and is exposed to foreign exchange risk arising from various currency exposures. The Company has established an in-house treasury function and uses multiple foreign currency bank accounts to reduce its exposure to foreign currency risk. |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Liquidity risk |
The ultimate parent company has significant cash balances, minimizing liquidity risks. |
KEY PERFORMANCE INDICATORS |
The main key performance indicators were as follows: |
2023 | 2022 |
£ | £ |
Revenue | 8,573,135 | 7,286,658 |
Recurring revenue | 6,436,740 | 4,416,136 |
Net profit margin | 17.81% | 14.01% |
Net profit before tax | 1,527,092 | 1,020,563 |
Net profit after tax | 1,219,727 | 813,144 |
The key performance indicators are monitored by the Board to ensure that they are progressing as planned in a timely manner. At this stage the Board is confident that these targets are being met. |
SECTION 172(1) STATEMENT |
The Directors consider that they have acted in a way they consider, in good faith, would be most likely to promote the success of the Company for its members as a whole (having regard to the stakeholders and matters set out in s172(1) Companies Act 2006 in the decisions taken during the year ended 31 December 2023. |
ON BEHALF OF THE BOARD: |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 December 2023 will be £230,000 (2022: £185,000) |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
QUALIFYING THIRD PARTY INDEMNITY PROVISIONS |
The company has put in place qualifying third party indemnity provisions for all of the directors of MCS Solutions Limited. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group 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; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MCS SOLUTIONS LIMITED |
Opinion |
We have audited the financial statements of MCS Solutions Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 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. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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. |
Other matter |
The financial statements for the year ended 31 December 2022, forming the corresponding figures of the financial statements for the year ended 31 December 2023, are unaudited as the directors claimed exemption from audit under section 477 of the Companies Act 2006 relating to small companies. |
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 the 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MCS SOLUTIONS LIMITED |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit; or |
- | the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Group Strategic Report. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MCS SOLUTIONS LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
- the nature of the industry and sector, control environment and business performance including the design of the Group's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets; |
- results of our enquiries of management about their own identification and assessment of the risks of irregularities; |
- any matters we identified having obtained and reviewed the Group's documentation of their policies and procedures relating to: - identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; - detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; - the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation. |
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Group's ability to operate. |
Audit response to risks identified |
As a result of performing the above, our procedures to respond to risks identified included the following: |
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
- enquiring of management and external legal advisors concerning actual and potential litigation and claims; |
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- reading minutes of meetings of those charged with governance; |
- obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and |
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MCS SOLUTIONS LIMITED |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
First Floor North |
40 Oxford Road |
High Wycombe |
Buckinghamshire |
HP11 2EE |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ | £ | £ |
TURNOVER | 4 | 8,573,135 | 7,286,658 |
Cost of sales | 542,869 | 561,470 |
GROSS PROFIT | 8,030,266 | 6,725,188 |
Administrative expenses | 6,633,853 | 5,402,522 |
GROUP OPERATING PROFIT | 6 | 1,396,413 | 1,322,666 |
Share of operating loss in |
Associates | (5,912 | ) | (18,256 | ) |
Income from fixed asset investments | 2,427 | - |
Interest receivable and similar income | 115,216 | 24,543 |
117,643 | 24,543 |
1,508,144 | 1,328,953 |
Gain/loss on revaluation of assets | 18,948 | (308,049 | ) |
1,527,092 | 1,020,904 |
Interest payable and similar expenses | 7 | - | 341 |
PROFIT BEFORE TAXATION | 1,527,092 | 1,020,563 |
Tax on profit | 8 | 307,365 | 207,419 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,175,938 | 771,182 |
Non-controlling interests | 43,789 | 41,962 |
1,219,727 | 813,144 |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
as | restated |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,219,727 | 813,144 |
OTHER COMPREHENSIVE INCOME |
Unrealised loss on exchange | (11,322 | ) | (354 | ) |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(11,322 |
) |
(354 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,208,405 |
812,790 |
Note |
Prior year adjustment | 11 | (287,736 | ) |
TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT |
920,669 |
Total comprehensive income attributable to: |
Owners of the parent | 876,880 | 770,828 |
Non-controlling interests | 43,789 | 41,962 |
920,669 | 812,790 |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | 60,436 | 96,845 |
Tangible assets | 13 | 485,786 | 294,981 |
Investments | 14 | 50,000 | 50,000 |
596,222 | 441,826 |
CURRENT ASSETS |
Stocks | 15 | - | 79 |
Debtors | 16 | 1,487,094 | 1,267,905 |
Investments | 17 | 2,048,672 | 1,253,952 |
Cash at bank | 2,421,964 | 2,426,061 |
5,957,730 | 4,947,997 |
CREDITORS |
Amounts falling due within one year | 18 | 2,096,372 | 1,954,494 |
NET CURRENT ASSETS | 3,861,358 | 2,993,503 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,457,580 |
3,435,329 |
PROVISIONS FOR LIABILITIES | 20 | 94,685 | 50,839 |
NET ASSETS | 4,362,895 | 3,384,490 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 24,000 | 24,000 |
Share premium | 22 | 367,572 | 367,572 |
Revaluation reserve | 22 | (36,731 | ) | (49,767 | ) |
Capital redemption reserve | 22 | 7,187 | 7,187 |
Retained earnings | 22 | 3,829,154 | 2,907,574 |
SHAREHOLDERS' FUNDS | 4,191,182 | 3,256,566 |
NON-CONTROLLING INTERESTS | 23 | 171,713 | 127,924 |
TOTAL EQUITY | 4,362,895 | 3,384,490 |
The financial statements were approved by the Board of Directors and authorised for issue on 3 March 2025 and were signed on its behalf by: |
Mr R S Van Der Knaap - Director |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
COMPANY STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
CURRENT ASSETS |
Debtors | 16 |
Investments | 17 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 18 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Share premium | 22 |
Revaluation reserve | 22 | ( |
) | ( |
) |
Capital redemption reserve | 22 |
Retained earnings | 22 | 750,009 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 93,519 | 863,022 |
The financial statements were approved by the Board of Directors and authorised for issue on |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Share | Revaluation |
capital | earnings | premium | reserve |
£ | £ | £ | £ |
Balance at 1 January 2022 | 24,000 | 2,271,979 | 367,572 | - |
Changes in equity |
Dividends | - | (185,000 | ) | - | - |
Total comprehensive income | - | 1,108,331 | - | (49,767 | ) |
Balance at 31 December 2022 | 24,000 | 3,195,310 | 367,572 | (49,767 | ) |
Prior year adjustment | - | (287,736 | ) | - | - |
As restated | 24,000 | 2,907,574 | 367,572 | (49,767 | ) |
Changes in equity |
Dividends | - | (230,000 | ) | - | - |
Total comprehensive income | - | 1,151,580 | - | 13,036 |
Balance at 31 December 2023 | 24,000 | 3,829,154 | 367,572 | (36,731 | ) |
Capital |
redemption | Non-controlling | Total |
reserve | Total | interests | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 | 7,187 | 2,670,738 | 85,962 | 2,756,700 |
Changes in equity |
Dividends | - | (185,000 | ) | - | (185,000 | ) |
Total comprehensive income | - | 1,058,564 | 41,962 | 1,100,526 |
Balance at 31 December 2022 | 7,187 | 3,544,302 | 127,924 | 3,672,226 |
Prior year adjustment | - | (287,736 | ) | - | (287,736 | ) |
As restated | 7,187 | 3,256,566 | 127,924 | 3,384,490 |
Changes in equity |
Dividends | - | (230,000 | ) | - | (230,000 | ) |
Total comprehensive income | - | 1,164,616 | 43,789 | 1,208,405 |
Balance at 31 December 2023 | 7,187 | 4,191,182 | 171,713 | 4,362,895 |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | - |
Total comprehensive income | - | - |
Balance at 31 December 2022 |
Prior year adjustment | - | ( |
) | - |
As restated |
Changes in equity |
Dividends | - | ( |
) | - |
Total comprehensive income | - | - |
Balance at 31 December 2023 |
Capital |
Revaluation | redemption | Total |
reserve | reserve | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | - | ( |
) |
Total comprehensive income | ( |
) |
Balance at 31 December 2022 | ( |
) |
Prior year adjustment | - | - | ( |
) |
As restated | ( |
) |
Changes in equity |
Dividends | - | - | ( |
) |
Total comprehensive income |
Balance at 31 December 2023 | ( |
) |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
as | restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,392,142 | 1,676,790 |
Interest paid | - | (341 | ) |
Tax paid | (143,440 | ) | (162,782 | ) |
Net cash from operating activities | 1,248,702 | 1,513,667 |
Cash flows from investing activities |
Purchase of intangible fixed assets | - | (104,938 | ) |
Purchase of tangible fixed assets | (364,947 | ) | (78,977 | ) |
Sale of tangible fixed assets | 16,250 | 4,500 |
Purchase of current asset investments | (1,324,845 | ) | (1,028,344 | ) |
Sale of current asset investments | 543,161 | 396,820 |
Interest received | 115,216 | 24,543 |
Dividends received | 2,427 | - |
Net cash from investing activities | (1,012,738 | ) | (786,396 | ) |
Cash flows from financing activities |
Equity dividends paid | (230,000 | ) | (185,000 | ) |
Net cash from financing activities | (230,000 | ) | (185,000 | ) |
Increase in cash and cash equivalents | 5,964 | 542,271 |
Cash and cash equivalents at beginning of year |
2 |
2,426,061 |
1,884,796 |
Effect of foreign exchange rate changes | (10,061 | ) | (1,006 | ) |
Cash and cash equivalents at end of year |
2 |
2,421,964 |
2,426,061 |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
as | restated |
£ | £ |
Profit before taxation | 1,527,092 | 1,020,563 |
Depreciation charges | 170,846 | 139,961 |
Profit on disposal of fixed assets | (12,956 | ) | (4,500 | ) |
(Gain)/loss on revaluation of fixed assets | (18,948 | ) | 308,049 |
Amortisation | 35,148 | 8,745 |
Share of operating loss in Associates | 5,912 | 18,256 |
Finance costs | - | 341 |
Finance income | (117,643 | ) | (24,543 | ) |
1,589,451 | 1,466,872 |
Decrease in stocks | 79 | 30 |
Increase in trade and other debtors | (209,229 | ) | (396,752 | ) |
Increase in trade and other creditors | 11,841 | 606,640 |
Cash generated from operations | 1,392,142 | 1,676,790 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 2,421,964 | 2,426,061 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
as restated |
£ | £ |
Cash and cash equivalents | 2,426,061 | 1,884,796 |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank | 2,426,061 | (4,097 | ) | 2,421,964 |
2,426,061 | (4,097 | ) | 2,421,964 |
Liquid resources |
Current asset investments | 1,253,952 | 794,720 | 2,048,672 |
1,253,952 | 794,720 | 2,048,672 |
Total | 3,680,013 | 790,623 | 4,470,636 |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | GENERAL INFORMATION |
MCS Solutions Limited is a private company limited by shares and incorporated in England and Wales. The address of the company's registered office is Oakwood, Grove Business Park, White Waltham, Berkshire, SL6 3LW. The registered number is 03787259. |
The presentation currency of these financial statements is Sterling (£), being the currency of the primary economic market in which the entity operates (its functional currency). All amounts in these financial statements have been rounded to the nearest pound unless stated otherwise. |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements incorporate the financial statements of the company and its subsidiary undertakings as at 31 December 2023. The results of subsidiaries acquired or disposed of during the year are included from, or up to the date of acquisition or disposal. |
Acquisitions have been included in the group financial statements using the purchase method of accounting. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition. |
The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual statement of comprehensive income. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales tax. |
In respect of contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of contracts for on-going services is recognised by reference to the stage of completion. |
Goodwill |
Goodwill arising on the acquisition of business is capitalised, classified as an asset at the statement of financial position date and amortised on a straight line basis over its estimated useful life. The period chosen for the amortisation of goodwill is 10 years. Estimates of the useful economic life of goodwill are based on a variety of factors such as the expected use of the acquired business, the expected useful life of the cash generating units to which the goodwill is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses. |
The directors review impairment annually and subsequently a provision is recognised if required. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. |
The group assesses at each reporting date whether the tangible fixed assets are impaired. |
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimate useful life: |
Fixtures and fittings - straight line - 25% |
Motor vehicles - straight line - 25% |
Computer equipment - straight line - 33.33% |
Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since the last annual reporting date in the pattern by which the group expected to consume an asset's future economic benefits. |
Investments in associates |
Investments in associate undertakings are recognised at cost less any provision for impairment. |
Associates are all entities over which the group has significant influence but no control, generally accompanying a shareholding between 20% and 50% of the voting rights. The group's share of its associates' post acquisition profits after tax is recognised in the group income statement as share of operating loss in associates, and its share of movement in associates' net liabilities is reflected in the investment's carrying value in the Group statement of financial position. |
Other investments |
Other investments are initially recognised at fair value which is usually the transaction price (excluding any transaction costs). Subsequently, the investments are measured at fair value through profit or loss except for those shares which cannot be publicly traded or where fair value cannot be reliably measured. |
If reliable measurement of fair value cannot be obtained or this measure is no longer available, the investment's cost is deemed to be the fair value at the last point to which a reliable measurement was obtained. These instruments are recognised at cost less impairment until a reliable measure of fair value becomes available. |
Stocks |
Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, cost of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out principle. |
Provision is made for damaged, obsolete and slow-moving stock where appropriate. |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The group has applied the provisions of Section 11 "Basic Financial Instruments" and Section 12 "Other Financial Instrument Issues" of FRS 102 to its financial statements. |
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or the equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the statement of financial position. Finance costs and gains or losses relating to financial liabilities are included in the income statement. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. |
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends are distributions relating to equity instruments are debited direct to equity. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. Where no distinction can be made between the research and development phase, the expenditure is recognised as if it were research costs and so is expensed in the year. |
Foreign currencies |
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | CRITICAL ACCOUNTING 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 amounts 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 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
as | restated |
£ | £ |
Software and ongoing services | 8,573,135 | 7,286,658 |
8,573,135 | 7,286,658 |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
as | restated |
£ | £ |
United Kingdom | 4,478,584 | 4,063,034 |
Overseas | 4,094,551 | 3,223,624 |
8,573,135 | 7,286,658 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
as | restated |
£ | £ |
Wages and salaries | 4,286,288 | 3,593,890 |
Social security costs | 425,676 | 378,322 |
Other pension costs | 102,858 | 86,354 |
4,814,822 | 4,058,566 |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
5. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2023 | 2022 |
as | restated |
Sales and administration | 66 | 55 |
Management | 4 | 4 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 412,250 | 432,674 |
Directors' pension contributions to money purchase schemes | 16,601 | 14,670 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
as | restated |
£ | £ |
Depreciation - owned assets | 170,848 | 139,961 |
Profit on disposal of fixed assets | (12,956 | ) | (4,500 | ) |
Customer base amortisation | 35,148 | 8,745 |
Auditors' remuneration | 17,000 | - |
Auditors' remuneration - other services | 25,697 | 26,850 |
Foreign exchange differences | 58,633 | 4,290 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
as | restated |
£ | £ |
Other interest | - | 341 |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
as | restated |
£ | £ |
Current tax: |
UK corporation tax | 198,074 | 89,243 |
Over/under provision in prior year | - | (226 | ) |
Foreign tax | 64,425 | 120,074 |
Total current tax | 262,499 | 209,091 |
Deferred tax | 44,866 | (1,672 | ) |
Tax on profit | 307,365 | 207,419 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
as | restated |
£ | £ |
Profit before tax | 1,527,092 | 1,020,563 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.500 % (2022 - 19 %) |
358,867 |
193,907 |
Effects of: |
Expenses not deductible for tax purposes | 2,645 | 79,470 |
Income not taxable for tax purposes | (2,245 | ) | (3,837 | ) |
Capital allowances in excess of depreciation | (38,980 | ) | - |
Depreciation in excess of capital allowances | - | 4,297 |
Adjustments to tax charge in respect of previous periods | - | (226 | ) |
Changes in tax rate | 1,042 | - |
Overseas taxation | 70,390 | 42,305 |
Accelerated capital allowances | 43,846 | (1,673 | ) |
Enhancement of research and development expense | (128,200 | ) | (106,824 | ) |
Total tax charge | 307,365 | 207,419 |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Unrealised loss on exchange | (11,322 | ) | - | (11,322 | ) |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
8. | TAXATION - continued |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Unrealised loss on exchange | (354 | ) | - | (354 | ) |
Factors that may affect future tax charge |
The main rate of corporation tax prevailing during the period was 25%. |
In the Budget of 3 March 2021 (and subsequently confirmed in the Autumn Statement on 17 November 2022) it was announced that the main rate of corporation tax would increase to 25% from 1 April 2023; this was substantively enacted on 24 May 2021. |
The 23.5% rate used above reflects 9 months of this new rate and 3 months of the previous rate of 19% |
Deferred tax balances included within the accounts have been calculated with reference to the rate expected to be applicable at the date of reversal (2022: 25%). |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
10. | DIVIDENDS |
2023 | 2022 |
as | restated |
£ | £ |
Ordinary shares of £1 each |
Interim | 230,000 | 185,000 |
11. | PRIOR YEAR ADJUSTMENT |
The prior year adjustment disclosed in the financial statements relates to a correction for an impairment of investments in associates which was omitted from the financial statements for the year to 31 December 2022 in error. |
The results for the comparative period have therefore been restated to reflect the correction of this omission. |
The effect of the restatement on the group and parent company statement of financial position and income statement has been to: |
Increase impairment charge for the year ended 31 December 2022 by | £287,736 |
Decrease the investment in associates as at 31 December 2022 by | £287,736 |
Decrease shareholders' funds as at 31 December 2022 by | £287,736 |
The are no tax implications of the prior year adjustment. |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Customer |
base |
£ |
COST |
At 1 January 2023 | 105,649 |
Exchange differences | (2,046 | ) |
At 31 December 2023 | 103,603 |
AMORTISATION |
At 1 January 2023 | 8,804 |
Amortisation for year | 35,148 |
Exchange differences | (785 | ) |
At 31 December 2023 | 43,167 |
NET BOOK VALUE |
At 31 December 2023 | 60,436 |
At 31 December 2022 | 96,845 |
13. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 | 278,758 | 126,297 | 780,323 | 1,185,378 |
Additions | - | 57,300 | 307,647 | 364,947 |
Disposals | - | (33,317 | ) | - | (33,317 | ) |
At 31 December 2023 | 278,758 | 150,280 | 1,087,970 | 1,517,008 |
DEPRECIATION |
At 1 January 2023 | 159,354 | 87,674 | 643,369 | 890,397 |
Charge for year | 37,768 | 23,891 | 109,189 | 170,848 |
Eliminated on disposal | - | (30,023 | ) | - | (30,023 | ) |
At 31 December 2023 | 197,122 | 81,542 | 752,558 | 1,031,222 |
NET BOOK VALUE |
At 31 December 2023 | 81,636 | 68,738 | 335,412 | 485,786 |
At 31 December 2022 | 119,404 | 38,623 | 136,954 | 294,981 |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
14. | FIXED ASSET INVESTMENTS |
Group |
Interest |
in | Unlisted |
associate | investments | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | 258,282 | 50,000 | 308,282 |
Additions | (5,912 | ) | - | (5,912 | ) |
At 31 December 2023 | 252,370 | 50,000 | 302,370 |
PROVISIONS |
At 1 January 2023 | 258,282 | - | 258,282 |
Impairments | (5,912 | ) | - | (5,912 | ) |
At 31 December 2023 | 252,370 | - | 252,370 |
NET BOOK VALUE |
At 31 December 2023 | - | 50,000 | 50,000 |
At 31 December 2022 | - | 50,000 | 50,000 |
Company |
Shares in | Interest |
group | in | Unlisted |
undertakings | associate | investments | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
and 31 December 2023 | 1,906,145 |
PROVISIONS |
At 1 January 2023 |
and 31 December 2023 | - | 287,736 | - | 287,736 |
NET BOOK VALUE |
At 31 December 2023 | 1,618,409 |
At 31 December 2022 | 1,618,409 |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
14. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiary |
MCS Rental Software Limited |
Registered office: Oakwood, Grove Business Park, White Waltham, Maidenhead, Berkshire, England, SL6 3LW |
Nature of business: supply of IT application software products |
% |
Class of shares | holding |
Ordinary | 100.00 |
The company's financial year end is 31 December 2023 |
MCS Rental Solutions (Pty) Limited |
Registered office: PO Box 786741, Sandton 2146, South Africa |
Nature of business: supply of IT application software products |
% |
Class of shares | holding |
Ordinary | 74.00 |
The company's financial year end is 30 September 2023 |
MCSANZ (Pty) Limited |
Registered office: Suite 4, 151-153 Pacific Highway, Hornsby, NSW 2077, Australia |
Nature of business: supply of IT application software products |
% |
Class of shares | holding |
Ordinary | 57.14 |
The company's financial year end is 30 June 2023 |
MCS Rental Software GmbH |
Registered office: Nettelbeckstrasse 1, 40477 Dusseldorf |
Nature of business: supply of IT application software products |
% |
Class of shares | holding |
Ordinary | 100.00 |
The company's financial year end is 31 December 2023 |
MCS Rental Software Espana S.L |
Registered office: C/ de Villalar, 7, Salamanca, 28001 Madrid, Spain |
Nature of business: supply of IT application software products |
% |
Class of shares | holding |
Ordinary | 51.00 |
The company's financial year end is 30 September 2023 |
MCS Rental Software Inc |
Registered office: 4000 Eagle Point Corporate Drive, Birmingham, AL 35242 |
Nature of business: supply of IT application software products |
% |
Class of shares | holding |
Ordinary | 94.00 |
The company's financial year end is 31 December 2023 |
Associate Undertakings |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
14. | FIXED ASSET INVESTMENTS - continued |
The group and company have a 30% interest in Tendereyes Software Limited, a company registered in England and Wales. This company prepares their accounts to 31 December. |
15. | STOCKS |
Group |
2023 | 2022 |
as | restated |
£ | £ |
Finished goods | - | 79 |
16. | DEBTORS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
as restated |
as restated |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 1,100,062 | 931,067 |
Other debtors | 209,463 | 139,744 |
Corporation tax | 9,960 | - |
Prepayments and accrued income | 144,874 | 174,359 |
1,464,359 | 1,245,170 |
Amounts falling due after more than one | year: |
Prepayments and accrued income | 22,735 | 22,735 |
Aggregate amounts | 1,487,094 | 1,267,905 |
17. | CURRENT ASSET INVESTMENTS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
as restated |
as restated |
£ | £ | £ | £ |
Other | 2,048,672 | 1,253,952 |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
as restated |
as restated |
£ | £ | £ | £ |
Trade creditors | 147,041 | 307,991 |
Amounts owed to group undertakings | - | - |
Corporation tax | 236,312 | 106,273 |
Social security and other taxes | 159,217 | 105,088 |
VAT | 217,365 | 203,305 | - | - |
Other creditors | 180,344 | 169,114 |
Accruals and deferred income | 1,156,093 | 1,062,723 |
2,096,372 | 1,954,494 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Within one year | 83,743 | 83,743 | - | - |
Between one and five years | 83,743 | 167,486 | - | - |
167,486 | 251,229 | - | - |
The lease payments recognised as an expense during the year total £86,093 (2022: £93,022) |
20. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
as | restated |
£ | £ |
Deferred tax | 94,685 | 50,839 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 50,839 |
Charge to Income Statement during year | 43,846 |
Balance at 31 December 2023 | 94,685 |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | as restated |
£ | £ |
Ordinary | £1 | 24,000 | 24,000 |
22. | RESERVES |
Called up share capital - This represents the nominal value of shares that have been issued. |
Share premium - This represents the consideration received for shares above the nominal value. |
Retained earnings - This distributable reserve records retained earnings and accumulated losses. |
Capital redemption reserve - This reserves records the nominal value of share repurchased by the company. |
Revaluation reserve - This reserve records the value of asset revaluations movements on assets recognised in other comprehensive income. |
23. | NON-CONTROLLING INTERESTS |
Non controlling interest in the net assets of consolidated subsidiaries are identified separately from the Group's equity. Non controlling interest consist of the amount of those interest at the date of the original business combination and the minority's share of changes in equity since the date of combination. |
The proportions of profit or loss and changes in equity allocated to the owners of the parent and to the non controlling interests determined on the basis of existing ownership interests and do not reflect the possible exercise or conversion of options or convertible instruments. |
24. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
As at 31 December 2024 an associate of the company, Tendereyes Software Limited, owed MCS Solutions Limited £32,141 (2022: £27,065). Interest on this loan is payable on demand at 7% per annum. |
During the year the group made donations of £120,000 (2022 - £90,000). to MCS Foundation. Two directors of MCS Solutions Limited are also trustees of MCS Foundation. |
Key management personnel |
The directors are considered to be the only key management personnel of the company and details of their remuneration are disclosed in note 5. |
25. | POST BALANCE SHEET EVENTS |
After the reporting period MCS Rental Software purchased the remaining 42.86% issued share capital of MCSANZ Pty Limited. Following this MCS Rental Software Ltd now owns 100% of the share capital of that company. |
MCS SOLUTIONS LIMITED (REGISTERED NUMBER: 03787259) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
26. | ULTIMATE CONTROLLING PARTY |
The controlling party is R S Van Der Knaap. |