REGISTERED NUMBER: 14916619 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 30 June 2024 |
for |
MRM Group Holdings Limited |
REGISTERED NUMBER: 14916619 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 30 June 2024 |
for |
MRM Group Holdings Limited |
MRM Group Holdings Limited (Registered number: 14916619) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30 June 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 19 |
MRM Group Holdings Limited |
Company Information |
for the Year Ended 30 June 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Park House |
37 Clarence Street |
Leicester |
Leicestershire |
LE1 3RW |
MRM Group Holdings Limited (Registered number: 14916619) |
Group Strategic Report |
for the Year Ended 30 June 2024 |
The directors present their strategic report of the company and the group for the year ended 30 June 2024. |
MRM Group Holdings Limited is a holding company. The principal purpose of the group business is to conduct services across all disciplines within the enabling sector, comprising of demolition, deconstruction, remediation, earthworks, and haulage. |
REVIEW OF BUSINESS |
In this period MRM Group continues to embed itself within the sector and it has maintained its strong position as an enabling partner within the construction sector. |
The Group's concerted efforts in developing partnerships across the sector, have secured a healthy pipeline for the year. This tied in with the focus on its varied sales mix has delivered a strong turnover amidst a turbulent market. Key decisions on the shape of the business's resources have set a great foundation to deliver a flexible and diverse offering. This has equipped the business to ride the market conditions that have impacted many other businesses across the sector. |
Strategically the Directors see these results and the subsequent successes a direct result of its strategy and its investment in the Senior Management Team, project team and commercial teams. |
MRM continues to push on the development of its people and processes, driving as a leader and innovator across all its services within the enabling sector. |
MRM Group Holdings Limited (Registered number: 14916619) |
Group Strategic Report |
for the Year Ended 30 June 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Strategic management of risk and opportunity is at the front of the Director's agenda, and this is intertwined in all aspects of the business strategy and day to day management. The group's Senior Management Team meets monthly to consider the likelihood and possible impact of risks facing the business, and where necessary acts to mitigate the risks. The principal risks and uncertainties facing the business are: |
Competition |
The current landscape for contracting within the sector has proved to be extremely competitive within the year. The Directors believe that the current focus on a diverse sales mix and provision of a quality offering has placed the business in a secure position within the marketplace. The group has secured several strategic frameworks which help to mitigate the risks from competition. MRM has also established itself as a reliable and fair business with integrity in terms of competition. With strong values and robust processes to prevent anti-competitive practices, the business has secured strong client relationships and a large number of repeat customers. |
Economical |
The UK wide economical & political climate poses significant risk and opportunity for the sector. The business actively reviews these and forms its strategy to maximise and mitigate the effects to the business and its profitability. The impact from these risks materialise in material cost fluctuations to the business, such as fuel,and heavy fluctuation in project revenues resulting from material recovery (scrap metal recovery). The business has focused on implementing robust controls to manage these at both global and project level. |
Financial |
With the current climate, credit risk within contracting is a key risk. This has directed the group to focus |
on forming partnerships both with its clients and its supply chain. The directors have focused on working with larger clients and across a diverse client base and as such this risk is inherently lower. A large amount of our portfolio is also generally geared towards public sector clients. |
Liquidity risk is a key risk within the contracting sector. The group mitigates liquidity risk through weekly working capital reviews with its management team and operates disciplined credit control procedures. The company is also subject to price risk of scrap metal and part of the forward order book will always have an element of exposure to market volatilities. This is actively managed through active reviews of the market rates and competitive procurement for key material costs. |
People |
The Directors 5-year plan focuses on the importance of its people. A significant proportion of the group's employees are skilled operatives, and being able to retain and attract sufficient numbers is essential to maintaining the growth of the business. In addition to the competencies of its people, the people values required for the business are key to its success. |
The required set of core skills is also vital to the delivery of our specialist projects and undertakings. As such the group has acquired a strong set of new staff, delivered an apprenticeship programme, and heavily invested in training and development of existing staff. This has seen an increase in capability and |
competence within the business both at operational and managerial level. |
MRM Group Holdings Limited (Registered number: 14916619) |
Group Strategic Report |
for the Year Ended 30 June 2024 |
FINANCIAL KEY PERFORMANCE INDICATORS |
The Directors have set a continual improvement which has led to a performance driven business. The |
business works with a number of key performance indicators (KPI's) and the management team measure and review the movements in these on a regular basis. The main KPIs are as follows: |
Cash - the business monitors and forecast this on a regular basis, not only with short term tactical cash flows but also in its medium and longer terms forecasting and reporting process. We continue to work very closely with our bankers with whom we share our regular management information and enjoy a good working relationship. |
Sales - we monitor our pipeline of enquiries and tenders in the market place as well as the jobs in progress very closely and we work in partnership with our major customers to understand their schedule of projects that are being planned in the short to medium term. |
Profit - the business uses a comprehensive set of management information to monitor profitability, forecasting the medium to long term performance of the business, keeping tight controls on margin performance and cost control to underpin the long-term health of the business. This includes a thorough CVR process to understand the profitability of each contract. We have a policy of continuous review of management information used within the business and as a result continue to develop our reporting systems and processes. |
QUALITY, HEALTH, SAFETY & ENVIRONMENT |
The organisation has been (and continues to be) renowned for driving standards and innovation in the |
industry. The Directors are committed to adopting and raising industry best practices for health, safety and the environment across the whole of the sector. Further, the company sets clear objectives and targets with the aim of ensuring continual improvement of its performance. The setting and focus on objectives for the quality of service are an intrinsic part of the business operating system. The system focuses on the impacts of our undertakings for all stakeholders including customers, employees, the surrounding environment and the surrounding communities. |
The effectiveness of the system is regularly monitored (both internally and externally) to ensure the efficacy of the preventative and protective measures. This is also subject to continual review to ensure that it is in line with all ISO standards, industry best practice and legislative requirements. |
FUTURE DEVELOPMENTS |
The group continues to push as a leader and innovator in the demolition sector within the UK, whilst providing the highest standards of customer service. |
ON BEHALF OF THE BOARD: |
MRM Group Holdings Limited (Registered number: 14916619) |
Report of the Directors |
for the Year Ended 30 June 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 June 2024. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 June 2024 will be £250,800. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report. |
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. |
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 |
MRM Group Holdings Limited |
Opinion |
We have audited the financial statements of MRM Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 30 June 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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. |
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. |
Report of the Independent Auditors to the Members of |
MRM Group Holdings Limited |
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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 |
MRM Group Holdings 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: |
Extent to which the audit was considered capable of detecting irregularities, including fraud |
The capability to detect irregularities is based on the auditor identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error, and then designing and performing audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
a) 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, the following approach was taken: |
- | Understanding the nature of the industry and sector, control environment and business performance; |
- | Consideration of the results of our enquiries of management and those charged with governance about their own identification and assessment of the risks of irregularities; |
- | Understanding the group's policies and procedures on compliance with laws and regulations and management of fraud risk, including documentation of instances of non-compliance of laws and regulations and instances of actual, suspected or alleged fraud; |
- | Consideration of matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud; |
- | Understanding the legal and regulatory frameworks that the company operates in through enquiry of management and those charged with governance and understanding the group's industry and sector. The key laws and regulations that were considered to have an effect on material amounts and disclosures in the financial statements included the Companies Act and tax legislation. |
b) Audit response to risks identified |
Based on this understanding, the following audit procedures were designed and performed to respond to the risks identified: |
- | Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations described as having a direct effect on the financial statement; |
- | Enquiring of management, those charged with governance and, where applicable, the group's solicitors 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; |
- | Reviewing minutes of meetings of those charged with governance and, where applicable, correspondence with regulators; |
- | Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business; |
- | Communication of potential fraud risks to all engagement team members and remaining alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
Report of the Independent Auditors to the Members of |
MRM Group Holdings Limited |
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. |
Other matters which we are required to address |
The financial statements for period ended 30 June 2024 are the first financial statements of the group. As a result the comparatives shown in these financial statements are not audited. |
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 |
Statutory Auditor |
Park House |
37 Clarence Street |
Leicester |
Leicestershire |
LE1 3RW |
MRM Group Holdings Limited (Registered number: 14916619) |
Consolidated |
Income Statement |
for the Year Ended 30 June 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ |
TURNOVER | 3 | 22,557,477 | 12,976,390 |
Cost of sales | (17,197,409 | ) | (11,280,012 | ) |
GROSS PROFIT | 5,360,068 | 1,696,378 |
Administrative expenses | (2,118,344 | ) | (1,710,512 | ) |
3,241,724 | (14,134 | ) |
Other operating income | - | 11,650 |
OPERATING PROFIT/(LOSS) | 5 | 3,241,724 | (2,484 | ) |
Interest receivable and similar income | 4 | 2 |
3,241,728 | (2,482 | ) |
Interest payable and similar expenses | 6 | (192,650 | ) | (114,825 | ) |
PROFIT/(LOSS) BEFORE TAXATION | 3,049,078 | (117,307 | ) |
Tax on profit/(loss) | 7 | (849,618 | ) | 41,963 |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
Profit/(loss) attributable to: |
Owners of the parent | 2,199,460 | (75,344 | ) |
MRM Group Holdings Limited (Registered number: 14916619) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 30 June 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ |
PROFIT/(LOSS) FOR THE YEAR | 2,199,460 | (75,344 | ) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
2,199,460 |
(75,344 |
) |
Total comprehensive income attributable to: |
Owners of the parent | 2,199,460 | (75,344 | ) |
MRM Group Holdings Limited (Registered number: 14916619) |
Consolidated Balance Sheet |
30 June 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | (151,735 | ) | (230,219 | ) |
Tangible assets | 11 | 5,363,974 | 2,942,454 |
Investments | 12 | - | - |
5,212,239 | 2,712,235 |
CURRENT ASSETS |
Stocks | 13 | 6,510,399 | 29,370 |
Debtors | 14 | 3,506,662 | 2,506,005 |
Cash at bank and in hand | 1,341,615 | 104,525 |
11,358,676 | 2,639,900 |
CREDITORS |
Amounts falling due within one year | 15 | (10,581,099 | ) | (3,675,757 | ) |
NET CURRENT ASSETS/(LIABILITIES) | 777,577 | (1,035,857 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
5,989,816 |
1,676,378 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(3,074,193 |
) |
(1,407,197 |
) |
PROVISIONS FOR LIABILITIES | 20 | (983,901 | ) | (134,284 | ) |
NET ASSETS | 1,931,722 | 134,897 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 60 | 60 |
Merger reserve | 91,125 | 242,960 |
Retained earnings | 1,840,537 | (108,123 | ) |
1,931,722 | 134,897 |
The financial statements were approved by the Board of Directors and authorised for issue on 5 March 2025 and were signed on its behalf by: |
M W Henderson - Director |
MRM Group Holdings Limited (Registered number: 14916619) |
Company Balance Sheet |
30 June 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 | ( |
) |
NET CURRENT LIABILITIES | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings |
Company's profit for the financial year | 132,718 | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
MRM Group Holdings Limited (Registered number: 14916619) |
Consolidated Statement of Changes in Equity |
for the Year Ended 30 June 2024 |
Called up |
share | Retained | Merger | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 July 2022 | 60 | 218,021 | 242,960 | 461,041 |
Changes in equity |
Dividends | - | (250,800 | ) | - | (250,800 | ) |
Total comprehensive income | - | (75,344 | ) | - | (75,344 | ) |
Balance at 30 June 2023 | 60 | (108,123 | ) | 242,960 | 134,897 |
Changes in equity |
Group reconstruction | - | - | (151,835 | ) | (151,835 | ) |
Dividends | - | (250,800 | ) | - | (250,800 | ) |
Total comprehensive income | - | 2,199,460 | - | 2,199,460 |
Balance at 30 June 2024 | 60 | 1,840,537 | 91,125 | 1,931,722 |
MRM Group Holdings Limited (Registered number: 14916619) |
Company Statement of Changes in Equity |
for the Year Ended 30 June 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Changes in equity |
Balance at 30 June 2023 |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2024 |
MRM Group Holdings Limited (Registered number: 14916619) |
Consolidated Cash Flow Statement |
for the Year Ended 30 June 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,985,095 | 9,994 |
Interest received | 2 | 2 |
Tax paid | - | 190,625 |
Net cash from operating activities | 1,985,097 | 200,621 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (83,251 | ) | (284,211 | ) |
Sale of tangible fixed assets | 37,463 | 649,707 |
Net cash from investing activities | (45,788 | ) | 365,496 |
Cash flows from financing activities |
Loan repayments in year | (32,974 | ) | (31,821 | ) |
Amount introduced by directors | 150,000 | - |
Hire purchase capital repayments | (837,067 | ) | (394,978 | ) |
Hire purchase interest paid | (166,921 | ) | (94,942 | ) |
Loan interest paid | (25,729 | ) | (19,883 | ) |
Equity dividends paid | (250,800 | ) | (250,800 | ) |
Net cash from financing activities | (1,163,491 | ) | (792,424 | ) |
Increase/(decrease) in cash and cash equivalents | 775,818 | (226,307 | ) |
Cash and cash equivalents at beginning of year |
2 |
(203,968 |
) |
22,339 |
Cash and cash equivalents at end of year |
2 |
571,850 |
(203,968 |
) |
MRM Group Holdings Limited (Registered number: 14916619) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 June 2024 |
1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.6.24 | 30.6.23 |
£ | £ |
Profit/(loss) before taxation | 3,049,078 | (117,307 | ) |
Depreciation charges | 562,161 | 489,577 |
Profit on disposal of fixed assets | (21,331 | ) | (174,745 | ) |
Finance costs | 192,650 | 114,825 |
Finance income | (4 | ) | (2 | ) |
3,782,554 | 312,348 |
(Increase)/decrease in stocks | (6,481,029 | ) | 91,874 |
Increase in trade and other debtors | (1,000,657 | ) | (167,489 | ) |
Increase/(decrease) in trade and other creditors | 5,684,227 | (226,739 | ) |
Cash generated from operations | 1,985,095 | 9,994 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2024 |
30.6.24 | 1.7.23 |
£ | £ |
Cash and cash equivalents | 1,341,615 | 104,525 |
Bank overdrafts | (769,765 | ) | (308,493 | ) |
571,850 | (203,968 | ) |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 104,525 | 148,287 |
Bank overdrafts | (308,493 | ) | (125,948 | ) |
(203,968 | ) | 22,339 |
MRM Group Holdings Limited (Registered number: 14916619) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 June 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.7.23 | Cash flow | At 30.6.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 104,525 | 1,237,090 | 1,341,615 |
Bank overdrafts | (308,493 | ) | (461,272 | ) | (769,765 | ) |
(203,968 | ) | 775,818 | 571,850 |
Debt |
Finance leases | (1,711,027 | ) | (2,157,979 | ) | (3,869,006 | ) |
Debts falling due within 1 year | (36,387 | ) | (3,907 | ) | (40,294 | ) |
Debts falling due after 1 year | (116,427 | ) | 36,881 | (79,546 | ) |
(1,863,841 | ) | (2,125,005 | ) | (3,988,846 | ) |
Total | (2,067,809 | ) | (1,349,187 | ) | (3,416,996 | ) |
MRM Group Holdings Limited (Registered number: 14916619) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 June 2024 |
1. | STATUTORY INFORMATION |
MRM Group Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. |
On 10 November 2023, as part of a group restructure MRM Group Holdings Limited acquired 100% of the ordinary share capital of MRM Group Limited and became the ultimate parent company of the group. |
The introduction of the new holding company has been accounted for using the principles of merger accounting. The restructuring of the group did not meet the definition of a group reconstruction per FRS 102 para 19.27 which would have the restructuring to be accounted for under acquisition accounting principles. The directors of the group do not believe that this would have given a true and fair view of the state of affairs of the group and its results as, in substance, the change in shareholdings arising on the restructuring was incidental to the main purpose of the restructuring rather than the acquisition of a business by MRM Group Holdings Limited and disposal by MRM Group Limited. |
Consequently, the restructuring has been accounted for using merger accounting as the directors of the company consider this is necessary to meet the overriding requirements of the Companies Act 2006 to show a true and fair view. The directors of the company consider that it is not practicable to quantify the effect of this departure from the detailed accounting requirements. |
In accordance with merger accounting principles the financial statements have been prepared as if MRM Group Holdings Limited was in existence throughout the years ended 30 June 2024 and 30 June 2023. |
The consolidated financial statements incorporate the results of the original business combination, being the acquisition of A R Demolition Limited and A R Plant Limited by MRM Group Limited using the purchase method. In the Balance Sheet, the acquirees' identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The combined results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases. |
Related party exemption |
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. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
MRM Group Holdings Limited (Registered number: 14916619) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of financial statements requires the group's directors to make judgements, assumptions and estimates that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on a regular basis. |
The group does not have any key assumptions concerning the future, or other key sources of estimation uncertainty in the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. |
Notwithstanding this, the group's activities are undertaken through construction contracts and the company is required to make estimates in accounting for revenue and margin. These estimates may depend upon the outcome of future events and may need to be revised as circumstances change. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. |
Construction contracts |
When the outcome of a construction contract can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to costs incurred for work performed to date bear to the estimated total costs. |
Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable. |
When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision. |
The amount by which recorded turnover on long term contracts is in excess of payments on account is included in debtors as amounts recoverable on contracts. Where payments on account is in excess of recorded turnover the amount is included in creditors as payments on account. |
Goodwill |
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. |
Tangible fixed assets |
Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price and costs directly attributable to bringing the asset to its working condition for its intended use. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life: |
Improvements to property | - 10 - 20% on reducing balance |
Plant and machinery | - 10 - 25% on reducing balance |
Motor vehicles | - 20 - 25% on reducing balance |
Tools and equipment | - 10 - 50% on reducing balance and 50% on cost |
The expected useful lives of assets are reviewed and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively. |
MRM Group Holdings Limited (Registered number: 14916619) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. |
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. |
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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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. |
MRM Group Holdings Limited (Registered number: 14916619) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
3. | TURNOVER |
The group's revenue for the year from continuing operations is as follows: |
30.6.24 | 30.6.23 |
£ | £ |
Rendering of services | 13,922,402 | 10,501,827 |
Sale of goods | 8,635,075 | 2,474,563 |
CONSTRUCTION CONTRACTS |
30.6.24 | 30.6.23 |
£ | £ |
Amounts due from customers for construction contracts (note 14) | 719,306 | 688,469 |
Amounts due to customers for construction contracts (note 15) | (3,599,405 | ) | (169,810 | ) |
Contract revenue recognised as revenue during the year | 13,261,850 | 9,916,171 |
4. | EMPLOYEES AND DIRECTORS |
30.6.24 | 30.6.23 |
£ | £ |
Wages and salaries | 3,147,377 | 2,890,517 |
Social security costs | 341,611 | 324,013 |
Other pension costs | 62,764 | 59,858 |
3,551,752 | 3,274,388 |
The average number of employees during the year was as follows: |
30.6.24 | 30.6.23 |
Administration | 25 | 24 |
Production | 55 | 53 |
30.6.24 | 30.6.23 |
£ | £ |
Directors' remuneration | 40,367 | 39,043 |
Directors' pension contributions to money purchase schemes | 562 | 518 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 3 | 3 |
5. | OPERATING PROFIT/(LOSS) |
The operating profit (2023 - operating loss) is stated after charging/(crediting): |
30.6.24 | 30.6.23 |
£ | £ |
Depreciation - owned assets | 132,085 | 183,304 |
Depreciation - assets on hire purchase contracts | 508,560 | 384,758 |
Profit on disposal of fixed assets | (21,331 | ) | (174,745 | ) |
Goodwill amortisation | (78,484 | ) | (78,484 | ) |
Auditors' remuneration | 41,342 | 34,808 |
MRM Group Holdings Limited (Registered number: 14916619) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.6.24 | 30.6.23 |
£ | £ |
Bank loan interest | 25,729 | 19,883 |
Hire purchase | 166,921 | 94,942 |
192,650 | 114,825 |
7. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
30.6.24 | 30.6.23 |
£ | £ |
Deferred tax | 849,618 | (41,963 | ) |
Tax on profit/(loss) | 849,618 | (41,963 | ) |
UK corporation tax has been charged at 25 % (2023 - 20.50 %). |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
30.6.24 | 30.6.23 |
£ | £ |
Profit/(loss) before tax | 3,049,078 | (117,307 | ) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 20.500 %) |
762,270 |
(24,048 |
) |
Effects of: |
Expenses not deductible for tax purposes | 5,420 | 6,338 |
Adjustments to tax charge in respect of previous periods | 101,549 | (789 | ) |
Adjustments to deferred tax rate | - | (7,375 | ) |
Non-taxable consolidation adjustments | (19,621 | ) | (16,089 | ) |
Total tax charge/(credit) | 849,618 | (41,963 | ) |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
30.6.24 | 30.6.23 |
£ | £ |
Interim | 250,800 | 250,800 |
MRM Group Holdings Limited (Registered number: 14916619) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 | (392,419 | ) |
AMORTISATION |
At 1 July 2023 | (162,200 | ) |
Amortisation for year | (78,484 | ) |
At 30 June 2024 | (240,684 | ) |
NET BOOK VALUE |
At 30 June 2024 | (151,735 | ) |
At 30 June 2023 | (230,219 | ) |
11. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
to | Plant and | Motor | Tools and |
property | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 July 2023 | 378,015 | 4,251,742 | 917,776 | 195,932 | 5,743,465 |
Additions | - | 2,304,787 | 773,510 | - | 3,078,297 |
Disposals | - | (72,670 | ) | - | - | (72,670 | ) |
At 30 June 2024 | 378,015 | 6,483,859 | 1,691,286 | 195,932 | 8,749,092 |
DEPRECIATION |
At 1 July 2023 | 196,141 | 2,060,794 | 400,543 | 143,533 | 2,801,011 |
Charge for year | 25,816 | 448,227 | 156,398 | 10,204 | 640,645 |
Eliminated on disposal | - | (56,538 | ) | - | - | (56,538 | ) |
At 30 June 2024 | 221,957 | 2,452,483 | 556,941 | 153,737 | 3,385,118 |
NET BOOK VALUE |
At 30 June 2024 | 156,058 | 4,031,376 | 1,134,345 | 42,195 | 5,363,974 |
At 30 June 2023 | 181,874 | 2,190,948 | 517,233 | 52,399 | 2,942,454 |
The net book value of assets held under finance leases or hire purchase contracts, included above, is £4,634,806 (2023 - £2,084,569). |
MRM Group Holdings Limited (Registered number: 14916619) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
Additions |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 36 Main Street, Carlton, Nuneaton, Warwickshire, CV13 0EZ |
Nature of business: |
% |
Class of shares: | holding |
30.6.24 | 30.6.23 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: 36 Main Street, Carlton, Nuneaton, Warwickshire, CV13 0EZ |
Nature of business: |
% |
Class of shares: | holding |
30.6.24 | 30.6.23 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: 36 Main Street, Carlton, Nuneaton, Warwickshire, CV13 0EZ |
Nature of business: |
% |
Class of shares: | holding |
30.6.24 | 30.6.23 |
£ | £ |
Aggregate capital and reserves | ( |
) |
Profit/(loss) for the year | ( |
) |
MRM Group Holdings Limited (Registered number: 14916619) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
12. | FIXED ASSET INVESTMENTS - continued |
Acquisitions during the year |
On 10 November 2023 the MRM Group Holdings Limited purchased 100% of the Ordinary share capital of MRM Group Limited via share for share exchange of 57 own shares and £150,000 of deferred cash consideration. |
13. | STOCKS |
Group |
30.6.24 | 30.6.23 |
£ | £ |
Stocks | 76,622 | 29,370 |
Contract work-in-progress | 6,433,777 | - |
6,510,399 | 29,370 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.6.24 | 30.6.23 | 30.6.24 | 30.6.23 |
£ | £ | £ | £ |
Trade debtors | 2,328,135 | 1,231,738 |
Amounts owed by group undertakings | - | - |
Amounts recoverable on contracts | 719,306 | 688,469 |
Other debtors | 219,572 | 297,571 |
Prepayments and accrued income | 239,649 | 288,227 |
3,506,662 | 2,506,005 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.6.24 | 30.6.23 | 30.6.24 | 30.6.23 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 779,999 | 318,472 |
Other loans (see note 17) | 30,060 | 26,408 |
Hire purchase contracts (see note 18) | 999,359 | 470,257 |
Payments on account | 3,599,405 | 169,810 |
Trade creditors | 3,430,085 | 1,868,072 |
Corporation tax | 100 | 100 |
Social security and other taxes | 1,214,857 | 474,328 |
Other creditors | 38,879 | 44,197 |
Directors' current accounts | 50,000 | - | 50,000 | - |
Accruals and deferred income | 438,355 | 304,113 |
10,581,099 | 3,675,757 |
MRM Group Holdings Limited (Registered number: 14916619) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
30.6.24 | 30.6.23 | 30.6.24 | 30.6.23 |
£ | £ | £ | £ |
Bank loans (see note 17) | 11,375 | 21,609 |
Other loans (see note 17) | 68,171 | 94,818 |
Hire purchase contracts (see note 18) | 2,869,647 | 1,240,770 |
Other creditors | 25,000 | 50,000 |
Directors' loan accounts | 100,000 | - | 100,000 | - |
3,074,193 | 1,407,197 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
30.6.24 | 30.6.23 |
£ | £ |
Amounts falling due within one year or | on demand: |
Bank overdrafts | 769,765 | 308,493 |
Bank loans | 10,234 | 9,979 |
Other loans | 30,060 | 26,408 |
810,059 | 344,880 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 10,234 | 10,234 |
Other loans - 1-2 years | 30,060 | 30,060 |
40,294 | 40,294 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 1,141 | 11,375 |
Other loans - 2-5 years | 38,111 | 64,758 |
39,252 | 76,133 |
The bank loan is unsecured and is guaranteed under the Bounce Back Loan Scheme. The loan is repayable in equal instalments over five years. Interest is charged at 2.5% per annum. |
The other loan is unsecured and repayable in equal instalments over 5 years. Interest is charged at 7.3% per annum. |
MRM Group Holdings Limited (Registered number: 14916619) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
30.6.24 | 30.6.23 |
£ | £ |
Net obligations repayable: |
Within one year | 999,359 | 470,257 |
Between one and five years | 2,869,647 | 1,240,770 |
3,869,006 | 1,711,027 |
Group |
Non-cancellable | operating leases |
30.6.24 | 30.6.23 |
£ | £ |
Within one year | 122,993 | 172,332 |
Between one and five years | 116,784 | 144,832 |
239,777 | 317,164 |
The hire purchase loans are repayable monthly over periods ranging from 3 to 5 years at interest rates between 0% and 6% per annum. |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
30.6.24 | 30.6.23 |
£ | £ |
Bank overdraft | 769,765 | 308,493 |
Hire purchase contracts | 3,869,006 | 1,711,027 |
4,638,771 | 2,019,520 |
The bank overdraft is a financing arrangement secured by a fixed and floating charge over the assets of the assets of various group companies. |
Obligations under hire purchase contracts are secured on the assets to which they relate. |
20. | PROVISIONS FOR LIABILITIES |
Group |
30.6.24 | 30.6.23 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 1,178,303 | 701,829 |
Tax losses carried forward | (194,402 | ) | (567,545 | ) |
983,901 | 134,284 |
MRM Group Holdings Limited (Registered number: 14916619) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
20. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 July 2023 | 134,284 |
Charge to Income Statement during year | 849,617 |
Balance at 30 June 2024 | 983,901 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Nominal | 30.6.24 | 30.6.23 |
Number: | Class: | value: | £ | £ |
20 | Ordinary A Shares | £1 | 20 | 20 |
20 | Ordinary B Shares | £1 | 20 | 20 |
20 | Ordinary C Shares | £1 | 20 | 20 |
60 | 100 |
The following shares were issued during the year for cash at par: |
1 Ordinary A share of £1 |
1 Ordinary B share of £1 |
1 Ordinary C share of £1 |
The following shares were issued during the year in a share for share exchange at par: |
19 Ordinary A share of £1 |
19 Ordinary B share of £1 |
19 Ordinary C share of £1 |
All share classes carry full voting rights with no restrictions and have no restrictions on the repayment of capital. The directors are entitled to vote an individual dividend on one class of share without the same dividend being voted to any other type of share. |
22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
A R Demolition has given a guarantee of £398,323 in respect of a property loan taken out by a partnership which includes the director, R Dolman. |
23. | RELATED PARTY DISCLOSURES |
Key management personnel of the entity or its parent (in the aggregate) |
30.6.24 | 30.6.23 |
£ | £ |
Dividends | 250,800 | 250,800 |
Amount due from related party | 1,364 | 864 |
Amount due to related party | 149,483 | - |
MRM Group Holdings Limited (Registered number: 14916619) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
23. | RELATED PARTY DISCLOSURES - continued |
Other related parties |
30.6.24 | 30.6.23 |
£ | £ |
Sales | 117,581 | 69,694 |
Purchases | 240,777 | 171,714 |
Loans written off | - | 26,990 |
Amount due from related party | 82,459 | 55,925 |
Amount due to related party | 35,905 | 38,847 |
Other related parties are entities under common control. |