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Registered number: 00251148









H. Marcel Guest, Limited









Annual Report and Consolidated Financial Statements

for the year ended 30 September 2024

 
H. Marcel Guest, Limited
 
 
Company Information


Directors
S B Falder 
J S Falder 
C J Falder 
J E Falder 




Company secretary
K West



Registered number
00251148



Registered office
Riverside Works
Collyhurst Road

Manchester

M40 7RU




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

3 Stockport Exchange

Railway Road

Stockport

SK1 3GG




Bankers
Lloyds Bank Plc
Third Floor

53 King Street

Manchester

M2 4LQ





 
H. Marcel Guest, Limited
 

Contents



Page
Chairman's Statement
 
1
Group Strategic Report
 
2 - 3
Directors' Report
 
4 - 5
Independent Auditors' Report
 
6 - 9
Consolidated Statement of Comprehensive Income
 
10
Consolidated Balance Sheet
 
11
Company Balance Sheet
 
12
Consolidated Statement of Changes in Equity
 
13
Company Statement of Changes in Equity
 
14
Consolidated Statement of Cash Flows
 
15
Consolidated Analysis of Net Debt
 
16
Notes to the Financial Statements
 
17 - 39


 
H. Marcel Guest, Limited
 
 
 
Chairman's Statement
for the year ended 30 September 2024

The chairman presents his statement for the period.

2024 has been a year of continuing international, political and financial turbulence. It is difficult to remember a time in the group’s 95 years of operation where there were so many global flashpoints, many with the potential to escalate dangerously and dramatically: Ukraine, Israel, Gaza, Iran, Syria, Venezuela, Taiwan…. the list is long and the spread worldwide. 
Most businesses prosper best in times of stability and optimism, and it is difficult to use those two descriptors for the world right now. The global supply chains that we rely on show patchy and ponderous betterment overall, but mergers, rebranding and business failures have created a landscape that is virtually unrecognisable compared to just a few years ago. Things are getting better, but it does appear that we may never return to the high standards of the past for the supply of raw material, packaging, and logistics fields.
Not everything is bad. Fortunately, there are signs that inflation has peaked in most of the world, giving hope for reduction in interest rates and the attendant improvement in business financing generally. 
Most importantly, notwithstanding the turbulence, the group's principal trading subsidiary, HMG Paints has had a very satisfactory year of growth and improvement including development into several niche and new markets. We continue to invest in the Riverside Works site, this year completing the refurbishment of the main store and taking back full control of the New Era site adjacent to us following temporary use by Transport for Greater Manchester for a couple of years. 
We are now just 5 years away from our centenary. All the team in HMG and Marcel Guest can take pride in where we are now and the plans we have for those next 5 years. Our home base of Collyhurst continues to evolve from a rather unsung status into a valued and valuable part of the great City of Manchester.  In that setting we fully intend to maintain our status as a leading employer, pioneering ecological agent and cheerleader for Collyhurst ….  our corporate birthplace.
2024-25 is likely to be quite an inflection point for the company as our leadership team and our next generation progress through the gears and take the business onwards and upwards. This is a time for ambition and progress for the group and will certainly be “right up the street” of the great team we have. In this note it is my pleasure to thank them for all their hard work, to congratulate them for last year’s financial result, and to encourage them to keep up the pace and the “passion for paint” that is the HMG way.


NameS Falder
Chairman

Date1 March 2025

Page 1

 
H. Marcel Guest, Limited
 
 
Group Strategic Report
for the year ended 30 September 2024

Introduction
 
The directors present their strategic report for the year ended 30 September 2024
Business review
During another year of continued economic uncertainty and political instability, the Group once again demonstrated its agility and adaptability in further diversifying its product range and managing to secure several new contracts, which have strengthened our customer base. We have continued to monitor costs and prices throughout this challenging year to navigate through the issues caused by ongoing global conflicts, increasing interest rates, persistent inflation and a change of Government.  Despite these macro-economic factors, we succeeded in increasing turnover and reporting an improvement in gross margin which is reflected in these results.
Considering this combination of extraordinary adverse and unstable conditions, turnover and profitability are deemed by the Board to be more than satisfactory given the challenges faced by the company through the year.
The Group's principal subsidiary, HMG Paints Ltd,  maintains a strategy of long-term business, at the heart of which is the aim of building security for all the company stakeholders. During 2023/24 the company has continued to maintain its performance in line with those objectives.
We have continued to invest heavily in the health and safety, technical training, and development of our people along with the continuous enhancement of our working environment. Indeed, in the year the HMG Paints Limited invested £1.2 million in capital improvements throughout the business.
Overall, we are satisfied with the performance of the group through 2023/24 and we believe that, because of the continued investment, we are well positioned to embrace the challenges which the financial year 2024/25 will bring.  
 Principal risks and uncertainties
The company’s activities expose it to several financial risks including credit risk and liquidity risk. The factors described below highlight risks and uncertainties which affect the company, but they are not intended to be an exhaustive analysis of all the potential risks which may arise in the ordinary course of business.
The directors are of the opinion that sufficient internal controls have been implemented to monitor these factors and to enable timely management action to be taken to mitigate the risks.
Political risk
The wars in Ukraine and the Middle East, plus departure of the UK from the European Union, continue to represent a period of uncertainty for the business as our supply chain relies heavily on materials from the EU. We are managing this risk by ensuring we have appropriate finance in place should it be needed, as well as increasing levels of stock so that any disruption does not leave us exposed.
Financial risk 
Our financial risk management objectives are to ensure sufficient working capital for the company and plans remain absolutely to our expectations.
Financial risks are managed through internal management controls, timely and accurate management information and by careful monitoring of sales activity and margins. The company does not feel it is necessary to hedge its currency or interest rate risk.
 
Page 2

 
H. Marcel Guest, Limited
 

Group Strategic Report (continued)
for the year ended 30 September 2024

Credit risk
The company's principal financial assets are bank balances and cash, trade, and other receivables. Its credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. The company has a credit insurance policy in place to mitigate the credit risk from trade receivables.
Liquidity risk
To maintain liquidity and to ensure that sufficient funds are available for ongoing operations and future developments the company has a mixture of long term and short-term finance.
Financial key performance indicators
The key performance indicators that are monitored on a weekly, monthly, and annual basis are revenue, profit, and cash balances, all of which are derived from the financial statements. The revenue and profit figures are stated below. 


2024
2023

£000
£000



Revenue
26,251
25,326
Gross profit 
11,330
9,983
Operating profit
2,118
1,224

 
The results were acceptable throughout the year and the performance marginally exceeded our budgeted expectations.


This report was approved by the board and signed on its behalf.


J S Falder
Director

Date: 1 March 2025

Page 3

 
H. Marcel Guest, Limited
 
 
 
Directors' Report
for the year ended 30 September 2024

The directors present their report and the financial statements for the year ended 30 September 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Group's financial statements 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 Group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £1,732,445 (2023 - £1,130,847).

The directors have declared dividends during the year of £600,000 (2023: £340,000).

Directors

The directors who served during the year were:

S B Falder 
J S Falder 
C J Falder 
J E Falder 

Future developments

The directors consider that the forthcoming financial year will be another year of solid performance, building further security for all our stakeholders. 

Research and development activities

The Group will continue to invest heavily in research and development activities in the forthcoming year to ensure that it stays at the forefront of innovation in the coatings industry. The continued investment will enable the business to offer unique innovative products for its customers.

Page 4

 
H. Marcel Guest, Limited
 
 
 
Directors' Report (continued)
for the year ended 30 September 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsHurst Accountants Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 


J S Falder
Director

Date: 1 March 2025

Page 5

 
H. Marcel Guest, Limited
 
 
 
Independent Auditors' Report to the Members of H. Marcel Guest, Limited
 

Opinion


We have audited the financial statements of H. Marcel Guest, Limited (the 'parent company') and its subsidiaries (the 'Group') for the year ended 30 September 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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's affairs as at 30 September 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 United Kingdom, including the Financial Reporting Council'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 or 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.


Page 6

 
H. Marcel Guest, Limited
 
 
 
Independent Auditors' Report to the Members of H. Marcel Guest, Limited (continued)


Other information


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


We have nothing to report in this regard.


Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report 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 Directors' Report.


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


adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the 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.


Page 7

 
H. Marcel Guest, Limited
 
 
 
Independent Auditors' Report to the Members of H. Marcel Guest, Limited (continued)


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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Identifying and assessing potential risks related to irregularities
In identifying and assessing the 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 in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge if any actual, suspected, or alleged fraud. 
Supporting documentation relating to the Company's policies and procedures for:
°Identifying, evaluating, and complying with laws and regulations.
°Detecting and responding to the risks of fraud.
The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements and Anti-bribery and Corruption.

Audit response to risks identified
Our procedures to respond to the risks identified included the following:
 
Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
Evaluation of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
Enquiring of management about any actual and potential litigation and claims.
Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
Reading minutes of meetings of those charges with governance.
Page 8

 
H. Marcel Guest, Limited
 
 
 
Independent Auditors' Report to the Members of H. Marcel Guest, Limited (continued)


We have also considered the risk of fraud through management override of controls by:
 
Testing the appropriateness of journal entries and other adjustments; we have used data analytics software to run tests designed to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error;
Challenging assumptions made by management in their significant accounting estimates, and 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.

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 non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them.  Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.


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 Auditors' Report.


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 2006Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.



Helen Besant Roberts (Senior Statutory Auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors
3 Stockport Exchange
Railway Road
Stockport
SK1 3GG

10 March 2025
Page 9

 
H. Marcel Guest, Limited
 
 
Consolidated Statement of Comprehensive Income
for the year ended 30 September 2024

2024
2023
Note
£
£

  

Turnover
 4 
26,251,319
25,325,744

Cost of sales
  
(14,920,886)
(15,342,455)

Gross profit
  
11,330,433
9,983,289

Distribution costs
  
(3,232,220)
(3,247,584)

Administrative expenses
  
(5,982,960)
(5,511,782)

Other operating income
 5 
2,513
-

Operating profit
 6 
2,117,766
1,223,923

Gain/(loss) on financial assets at fair value through profit and loss
  
25,362
24,053

Interest receivable and similar income
 10 
608
4,536

Interest payable and similar expenses
 11 
(2,861)
(1,855)

Profit before taxation
  
2,140,875
1,250,657

Tax on profit
 12 
(408,430)
(119,810)

Profit for the financial year
  
1,732,445
1,130,847

Profit for the year attributable to:
  

Owners of the parent company
  
1,732,445
1,130,847

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 17 to 39 form part of these financial statements.

Page 10

 
H. Marcel Guest, Limited
Registered number: 00251148

Consolidated Balance Sheet
As at 30 September 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 14 
-
-

Tangible fixed assets
 15 
4,253,094
3,696,589

Fixed asset investments
 16 
646,765
621,404

  
4,899,859
4,317,993

Current assets
  

Stocks
 17 
4,983,619
4,709,681

Debtors: amounts falling due after more than one year
 18 
203,853
266,863

Debtors: amounts falling due within one year
 18 
5,588,699
4,853,496

Cash at bank and in hand
 19 
3,400,691
3,198,596

  
14,176,862
13,028,636

Creditors: amounts falling due within one year
 20 
(5,340,034)
(4,832,401)

Net current assets
  
 
 
8,836,828
 
 
8,196,235

Total assets less current liabilities
  
13,736,687
12,514,228

Provisions for liabilities
  

Deferred tax
 22 
(631,847)
(541,833)

Net assets
  
13,104,840
11,972,395


Capital and reserves
  

Called up share capital 
 23 
1,000,000
1,000,000

Profit and loss account
 24 
12,104,840
10,972,395

  
13,104,840
11,972,395


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


J S Falder
Director

Date: 1 March 2025

Page 11

 
H. Marcel Guest, Limited
Registered number: 00251148

Company Balance Sheet
As at 30 September 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 14 
-
-

Tangible assets
 15 
424,919
448,678

Fixed asset investments
 16 
2,652,889
2,627,528

  
3,077,808
3,076,206

Current assets
  

Debtors: amounts falling due after more than one year
 18 
150,139
199,720

Debtors: amounts falling due within one year
 18 
369,408
258,839

Cash at bank and in hand
 19 
296,640
479,422

  
816,187
937,981

Creditors: amounts falling due within one year
 20 
(717,036)
(757,332)

Net current assets
  
 
 
99,151
 
 
180,649

Total assets less current liabilities
  
3,176,959
3,256,855

  

  

Net assets
  
3,176,959
3,256,855


Capital and reserves
  

Called up share capital 
 23 
1,000,000
1,000,000

Profit and loss account brought forward
  
2,256,855
2,352,555

Profit for the year
  
520,104
244,300

Dividends

 13 

(600,000)
(340,000)

Profit and loss account carried forward
  
2,176,959
2,256,855

  
3,176,959
3,256,855


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


J S Falder
Director

Date: 1 March 2025

The notes on pages 17 to 39 form part of these financial statements.

Page 12

 
H. Marcel Guest, Limited
 

Consolidated Statement of Changes in Equity
for the year ended 30 September 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 October 2023
1,000,000
10,972,395
11,972,395


Comprehensive income for the year

Profit for the year
-
1,732,445
1,732,445


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
1,732,445
1,732,445


Contributions by and distributions to owners

Dividends: Equity capital
-
(600,000)
(600,000)


Total transactions with owners
-
(600,000)
(600,000)


At 30 September 2024
1,000,000
12,104,840
13,104,840



Consolidated Statement of Changes in Equity
for the year ended 30 September 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 October 2022
1,000,000
10,181,548
11,181,548


Comprehensive income for the year

Profit for the year
-
1,130,847
1,130,847


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
1,130,847
1,130,847


Contributions by and distributions to owners

Dividends: Equity capital
-
(340,000)
(340,000)


Total transactions with owners
-
(340,000)
(340,000)


At 30 September 2023
1,000,000
10,972,395
11,972,395


The notes on pages 17 to 39 form part of these financial statements.

Page 13

 
H. Marcel Guest, Limited
 

Company Statement of Changes in Equity
for the year ended 30 September 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 October 2023
1,000,000
2,256,855
3,256,855


Comprehensive income for the year

Profit for the year
-
520,104
520,104


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
520,104
520,104


Contributions by and distributions to owners

Dividends: Equity capital
-
(600,000)
(600,000)


Total transactions with owners
-
(600,000)
(600,000)


At 30 September 2024
1,000,000
2,176,959
3,176,959



Company Statement of Changes in Equity
for the year ended 30 September 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 October 2022
1,000,000
2,352,555
3,352,555


Comprehensive income for the year

Profit for the year
-
244,300
244,300


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
244,300
244,300


Contributions by and distributions to owners

Dividends: Equity capital
-
(340,000)
(340,000)


Total transactions with owners
-
(340,000)
(340,000)


At 30 September 2023
1,000,000
2,256,855
3,256,855


The notes on pages 17 to 39 form part of these financial statements.

Page 14

 
H. Marcel Guest, Limited
 

Consolidated Statement of Cash Flows
for the year ended 30 September 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
1,732,445
1,130,847

Adjustments for:

Amortisation of intangible assets
-
14,314

Depreciation of tangible assets
600,361
572,821

Impairments of fixed asset investments
25
-

Loss/(Profit) on disposal of tangible assets
398
(4,821)

Interest paid
2,861
1,855

Interest received
(608)
(4,536)

Taxation charge
408,430
119,810

(Increase) in debtors
(663,049)
(171,370)

(Increase) in amounts owed by associates
(9,144)
(11,478)

Increase/(decrease) in creditors
331,549
(484,729)

Net fair value (gains) recognised in P&L
(25,386)
(24,053)

Corporation tax (paid)/received
(142,332)
32,306

Decrease / (increase) in stock
(273,938)
1,181,069

Net cash generated from operating activities

1,961,612
2,352,035


Cash flows from investing activities

Purchase of tangible fixed assets
(1,159,764)
(422,531)

Sale of tangible fixed assets
2,500
35,808

Interest received
608
4,536

Net cash used in investing activities

(1,156,656)
(382,187)

Cash flows from financing activities

Dividends paid
(600,000)
(340,000)

Interest paid
(2,861)
(1,855)

Net cash used in financing activities
(602,861)
(341,855)

Net increase in cash and cash equivalents
202,095
1,627,993

Cash and cash equivalents at beginning of year
3,198,596
1,570,603

Cash and cash equivalents at the end of year
3,400,691
3,198,596


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,400,691
3,198,596


Page 15

 
H. Marcel Guest, Limited
 

Consolidated Analysis of Net Debt
for the year ended 30 September 2024




At 1 October 2023
Cash flows
At 30 September 2024
£

£

£

Cash at bank and in hand

3,198,596

202,095

3,400,691

Debt due within 1 year

-

-

-


3,198,596
202,095
3,400,691

The notes on pages 17 to 39 form part of these financial statements.

Page 16

 
H. Marcel Guest, Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2024

1.


General information

H Marcel Guest Limited is a private company limited by shares, incorporated in England. The registered office is Riverside Works, Collyhurst Road, Manchester, M40 7RU. 
The principal activity is the manufacture of paints, surface coatings and related products and services.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
Parent company disclosure exemptions
In preparing the separate financial statements of the parent company, advantage has been taken of the following disclosure exemptions available to qualifying entities:
 
No cash flow statement or net debt reconciliation has been presented for the parent company;
No statement of comprehensive income has been presented for the parent company;
Disclosure in respect of the parent company's income, expense, net gains and net losses on financial instruments measured at amortised cost have not been presented as equivalent disclosures have been provided in respect of the group as a whole; and 
No disclosure has been given for the aggregate remuneration of the key management personnel of the parent company as their remuneration is included in the totals for the group as a whole.

  
2.2

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.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The 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.

Page 17

 
H. Marcel Guest, Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2024

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.5

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 18

 
H. Marcel Guest, Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2024

2.Accounting policies (continued)

 
2.6

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Pensions

Defined contribution pension plan
The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations.
The contributions are recognised as an expense in the profit and loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the group in independently administered funds.
Scheme membership and benefits
The group also operates a hybrid arrangement scheme with both benefit and defined contribution elements. The benefits of "director members" are provided on a money purchase basis, but such benefits are restricted to the net assets available, having first made full provision for the benefits of all defined benefit members.
The principal employer is H Marcel Guest Limited and the participating employer is HMG Paints Limited.

Page 19

 
H. Marcel Guest, Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2024

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.11

Intangible assets

Acquired trademarks are shown at historical cost. The trademark is being amortised over the 10 years. This is also subject to an annual impairment review.

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 20

 
H. Marcel Guest, Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2024

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Freehold property
-
2%
straight line
Plant and machinery
-
15%
reducing balance
Motor vehicles
-
25%
reducing balance
Fixtures and fittings & office equipment
-
20%
reducing balance / 33.33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.
Investments in unlisted group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated profit and loss the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
Investments in listed company shares are remeasured to market value at each Balance Sheet date. Gains and losses on remeasurement are recognised in profit and loss for the period.

 
2.14

Associates and joint ventures

An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the Group to undertake an economic activity that is subject to joint control.

An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.
In the consolidated accounts, where material, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Statement of Comprehensive Income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Balance Sheet, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition.
Any premium on acquisition is dealt with in accordance with the goodwill policy.

Page 21

 
H. Marcel Guest, Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2024

2.Accounting policies (continued)

 
2.15

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Finished goods include labour and attributable overheads.
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.

 
2.16

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.17

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.18

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.19

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 22

 
H. Marcel Guest, Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2024

2.Accounting policies (continued)

 
2.20

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.



 
Page 23

 
H. Marcel Guest, Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2024

2.Accounting policies (continued)


2.20
Financial instruments (continued)

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

 
2.21

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 24

 
H. Marcel Guest, Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. The nature of estimation means that actual outcomes could different from those estimates. The items in the financial statements where these judgements and estimates have been made include:
Stock provision
Stock is reviewed to assess obsolescence on a regular basis. In determining whether provision for obsolescence should be recorded in profit and loss, the company makes judgements as to whether there is any observable data indicating that there is any future saleability of the product and the estimated net realisable value for such product. Accordingly, provision for impairment is made where the net realisable value is less than the cost based on best estimates by the management. The provision for obsolescence of stock is based on the ageing and historical sales pattern. As at 30 September 2024, the value of stock net of provision was £4,983,619 (2023: £4,709,681).
Stock valuation and overhead absorption
Stock is valued including raw material costs, production labour and an allocation of production related overheads. The overhead calculation is based on a judgement of the production element of certain overheads which may differ from the actual.  As at 30 September 2024, the value of labour and overheads included in stock was £738,005 (2023: £677,951).


4.


Turnover

The whole of the turnover is attributable to the sales of paint products.

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
25,129,042
24,387,271

Rest of Europe
988,754
875,257

Rest of the world
133,523
63,216

26,251,319
25,325,744



5.


Other operating income

2024
2023
£
£

Other operating income
2,513
-


Page 25

 
H. Marcel Guest, Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2024

6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Amortisation of intangible assets, including goodwill
-
14,314

Defined contribution pension cost
471,992
244,033

Depreciation of tangible fixed assets
600,361
572,821

Exchange differences
24,666
16,330

Research & development charged as an expense
18,951
6,470

Other operating lease rentals
153,703
117,704


7.


Auditors' remuneration

During the year, the Group obtained the following services from the company's auditors:


2024
2023
£
£

Audit of the Group's and subsidiary annual financial statements
36,550
35,450

Fees payable to the Group's auditor and its associates in respect of:

Taxation compliance services
3,750
3,300

Other services relating to taxation
14,695
11,500

The auditing of a pension scheme associated with the company pursuant to legislation
8,300
8,300

All other services
1,100
975

Page 26

 
H. Marcel Guest, Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2024

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

  

Wages and salaries
  
6,600,515
6,282,594
85,831
105,901

Social security costs
  
627,674
619,352
4,294
4,383

Cost of defined contribution scheme
  
471,992
244,033
-
-

  
7,700,181
7,145,979
90,125
110,284


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Production
77
72



Selling and distribution
72
71



Administration
33
31



Research and development
16
16

198
190


9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
149,826
172,929


During the year retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution pension schemes.


10.


Interest receivable

2024
2023
£
£


Other interest receivable
608
4,536

Page 27

 
H. Marcel Guest, Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2024

11.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
1,078
-

Other interest payable
1,783
1,855

2,861
1,855


12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
318,416
142,332


Total current tax
318,416
142,332

Deferred tax


Origination and reversal of timing differences
90,014
(22,522)

Total deferred tax
90,014
(22,522)


Taxation on profit on ordinary activities
408,430
119,810
Page 28

 
H. Marcel Guest, Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 22%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
2,140,875
1,250,657


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 22%)
535,219
275,145

Effects of:


Non-tax deductible amortisation of goodwill and impairment
-
14,314

Expenses not deductible for tax purposes
4,261
3,441

Fixed asset timing differences
20,685
16,419

Marginal relief
-
(465)

Adjustment in research and development tax credit leading to a (decrease) in the tax charge
(151,735)
(169,799)

Adjustments in respect of a change in corporation tax rate
-
(19,245)

Total tax charge for the year
408,430
119,810


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


13.


Dividends

2024
2023
£
£


Dividends payable on equity shares
600,000
340,000

Page 29

 
H. Marcel Guest, Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2024

14.


Intangible assets

Group and Company





Trademarks

£



Cost


At 1 October 2023
273,195



At 30 September 2024

273,195



Amortisation


At 1 October 2023
273,195



At 30 September 2024

273,195



Net book value



At 30 September 2024
-



At 30 September 2023
-

The trademark represents the payments under the terms of the contract to acquire the Gipgloss trademark and related nitrocellulose technology.



Page 30

 
H. Marcel Guest, Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2024

15.


Tangible fixed assets

Group






Freehold property
Property improve-  ments
Plant and machinery
Motor vehicles
Fixtures and fittings and Office equipment
Total

£
£
£
£
£
£



Cost or valuation


At 1 October 2023
1,157,447
1,585,520
6,305,550
429,834
1,298,449
10,776,800


Additions
-
532,511
479,381
83,357
64,515
1,159,764


Disposals
-
-
-
(30,808)
-
(30,808)



At 30 September 2024

1,157,447
2,118,031
6,784,931
482,383
1,362,964
11,905,756



Depreciation


At 1 October 2023
711,211
569,399
4,327,811
231,029
1,240,761
7,080,211


Charge for the year
23,149
133,674
335,998
60,076
47,464
600,361


Disposals
-
-
-
(27,910)
-
(27,910)



At 30 September 2024

734,360
703,073
4,663,809
263,195
1,288,225
7,652,662



Net book value



At 30 September 2024
423,087
1,414,958
2,121,122
219,188
74,739
4,253,094



At 30 September 2023
446,236
1,016,121
1,977,739
198,805
57,688
3,696,589

Page 31

 
H. Marcel Guest, Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2024

           15.Tangible fixed assets (continued)


Company






Freehold property
Motor vehicles
Total

£
£
£

Cost or valuation


At 1 October 2023
1,157,447
10,320
1,167,767



At 30 September 2024

1,157,447
10,320
1,167,767



Depreciation


At 1 October 2023
711,211
7,878
719,089


Charge for the year
23,149
610
23,759



At 30 September 2024

734,360
8,488
742,848



Net book value



At 30 September 2024
423,087
1,832
424,919



At 30 September 2023
446,236
2,442
448,678






Page 32

 
H. Marcel Guest, Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2024

16.


Fixed asset investments

Group





Investments in associates
Listed investments
Unlisted investments
Total

£
£
£
£



Cost or valuation


At 1 October 2023
24,500
546,879
50,025
621,404


Foreign exchange movement
-
(20,345)
-
(20,345)


Revaluations
-
45,731
-
45,731



At 30 September 2024

24,500
572,265
50,025
646,790



Impairment


Charge for the period
-
-
25
25



At 30 September 2024

-
-
25
25



Net book value



At 30 September 2024
24,500
572,265
50,000
646,765



At 30 September 2023
24,500
546,879
50,025
621,404

The group holds a 49% equity investment in Vintro Paints Limited, a 25% equity investment in CC Solutions Limited and a 51% equity investment in Preservation Paints Limited. These investments are accounted for on a cost basis. 

Page 33

 
H. Marcel Guest, Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2024
Company





Investments in subsidiary companies
Investments in associates
Listed investments
Unlisted investments
Total

£
£
£
£
£



Cost or valuation


At 1 October 2023
2,361,115
24,500
546,879
50,025
2,982,519


Foreign exchange movement
-
-
(20,345)
-
(20,345)


Revaluations
-
-
45,731
-
45,731



At 30 September 2024

2,361,115
24,500
572,265
50,025
3,007,905



Impairment


At 1 October 2023
354,991
-
-
-
354,991


Charge for the period
-
-
-
25
25



At 30 September 2024

354,991
-
-
25
355,016



Net book value



At 30 September 2024
2,006,124
24,500
572,265
50,000
2,652,889



At 30 September 2023
2,006,124
24,500
546,879
50,025
2,627,528


Subsidiary undertakings


The following were subsidiary undertakings of the company:

Name

Registered office

Principal activity

Class of shares

Holding

HMG Paints Limited
Manufacture of paints, surface coatings and related products and services.
Ordinary
100%
Cadulac Chemicals Limited
Dormant
Ordinary
100%
HMG Coatings (London) Limited
Dormant
Ordinary
100%
HMG Paints (Europe) Limited
Snowflake, Main Street, Clonmany, Co. Donegal, Donegal, Ireland, F93 R6X0
Dormant
Ordinary
100%
W.H. Screeton Associates Limited
Dormant
Ordinary
100%

Unless stated, the registered address of the subsidiary companies is Riverside Works, Collyhurst Road, Manchester M40 7RU.

Page 34

 
H. Marcel Guest, Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2024

Associates


The following were associates of the company:


Name

Registered office

Class of shares

Holding

CC Solutions Limited
349 Bury Old Road, Prestwich, 
Manchester M25 1PY
Ordinary
25%
Preservation Paints Limited
Riverside Works, Collyhurst Road, Manchester M40 7RU
Ordinary
51%
Vintro Paint Limited
707c Street 3, 
Thorp Arch Estate, 
Wetherby LS23 7FF
Ordinary
49%


17.


Stocks

Group
Group
2024
2023
£
£

Raw materials and consumables
2,834,224
2,544,900

Finished goods and goods for resale
2,149,395
2,164,781

4,983,619
4,709,681


The carrying value of stocks are stated net of impairment losses totaling £306,291 (2023: £299,311). Impairment losses totaling £6,980 (2023: gain £74,314) were recognised in the profit and loss.


18.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Due after more than one year

Other debtors
203,853
266,863
150,139
199,720


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Due within one year

Trade debtors
4,584,490
4,284,012
-
-

Amounts owed by group undertakings
-
-
191,416
136,067

Amounts owed by joint ventures and associated undertakings
165,290
156,146
36,088
35,480

Other debtors
220,592
187,419
127,206
75,308

Prepayments and accrued income
618,327
225,919
13,991
11,174
Page 35

 
H. Marcel Guest, Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2024

18.Debtors (continued)


Deferred taxation
-
-
707
810

5,588,699
4,853,496
369,408
258,839


An impairment gain was recognised in the year against trade debtors of £4,003 (2023: loss of £10,437). Additionally, an impairment gain was recognised in the year against amounts owed by associated undertakings of £5,250 (2023: £4,000).


19.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
3,400,691
3,198,596
296,640
479,422



20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Trade creditors
3,402,893
2,858,230
18,191
27,854

Amounts owed to group undertakings
-
-
486,605
188,277

Corporation tax
318,416
142,332
51,780
4,209

Other taxation and social security
694,632
769,379
3,176
2,421

Other creditors
229,953
620,523
148,484
525,371

Accruals and deferred income
694,140
441,937
8,800
9,200

5,340,034
4,832,401
717,036
757,332



21.


Financial instruments

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
572,265
546,879
572,265
546,879




Financial assets measured at fair value through profit or loss comprise listed fixed asset investments.

Page 36

 
H. Marcel Guest, Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2024

22.


Deferred taxation


Group



2024
2023


£

£






At beginning of year
(541,833)
(564,355)


(Charged)/credited to profit or loss
(90,014)
22,522



At end of year
(631,847)
(541,833)

Company


2024
2023


£

£






At beginning of year
810
919


Charged to profit or loss
(103)
(109)



At end of year
707
810

The provision for deferred taxation is made up as follows:

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Accelerated capital allowances
(644,233)
(551,462)
707
810

Other timing differences
12,386
9,629
-
-

(631,847)
(541,833)
707
810


23.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1,000,000 (2023 - 1,000,000) Ordinary shares of £1.00 each
1,000,000
1,000,000


Page 37

 
H. Marcel Guest, Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2024

24.


Reserves

Profit and loss account
The profit and loss account includes all current and prior period retained profits and losses after dividends paid.


25.


Pension commitments

The group operates a defined contribution pension scheme and also a hybrid arrangement with both defined benefit and defined contribution elements. The assets of the schemes are held separately from those of the company in individual independently administered funds. The pension cost charge represents contributions payable by the group to the fund and amounted to £471,992 (2023: £244,033) in relation to defined contribution schemes. Contributions totalling £49,588 (2023: £38,518) were payable to the funds at the balance sheet date.


26.


Commitments under operating leases

At 30 September 2024 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£
£

Not later than 1 year
381,377
287,767

Later than 1 year and not later than 5 years
651,659
486,225

1,033,036
773,992
Page 38

 
H. Marcel Guest, Limited
 
 
 
Notes to the Financial Statements
for the year ended 30 September 2024

27.


Related party transactions

The group has taken advantage of the exemptions available under FRS 102 Section 33 "Related Party Transactions" not to disclose transactions with other wholly owned group companies.
During the year the group made sales to associated companies totalling £210,128 
(2023: £161,038).
During the year the group made purchases from associated companies totalling £152,321 
(2023: £154,817).
At 30 September 2024 amounts due to the group from associated companies totalled £165,290
 (2023: £249,258) and amounts due from the group to associated companies totalled £1,890 (2023: £2,400).
At 30 September 2024 the group has a provision against trade receivables from companies with common directors totalling £Nil 
(2023: £92,206).
Group key management personnel remuneration totalled £2,169,254, relating to 36 personnel 
(2023: £1,827,765, personnel:34).
Company
During the year the company made purchases from associated companies totalling £126,274 (2023: £121,601), and the company made sales to associated companies totalling £2,640 (2023: £2,640).
At 30 September 2024 amounts due to the company from associated companies totalled £36,088 
(2023: £72,376). At 30 September 2024 the company has a provision against trade receivables from associated companies totalling £Nil (2023: £36,000). 
Included in other debtors are amounts totalling £50,000 
(2023: £nil) due from Aspira Aerial Applications Limited which is considered a related party due to common shareholders and directors.The amount is unsecured, repayable on demand and interest free.


28.


Controlling party

In the opinion of the directors, the ultimate controlling party, by virtue of their shareholding is the Falder family.

 
Page 39