Registration number:
for the
Year Ended 30 June 2024
McBraida Holdings Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Statement of Comprehensive Income |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
McBraida Holdings Limited
Company Information
Directors |
M P McBraida I J McBraida |
Registered office |
|
Bankers |
|
Auditors |
|
McBraida Holdings Limited
Strategic Report for the Year Ended 30 June 2024
The directors present their strategic report for the year ended 30 June 2024.
Principal activity
The principal activity of the Company is the management of the McBraida Group. The principal activity of the Group is precision engineering of high technology industries. Trading is undertaken through operating units in Bristol, UK and Rzeszów, Poland.
Fair review of the business
The results for the year, which are set out in the profit and loss account, show turnover of £29.09m (2023 - £22.37m) and an operating profit of £2.90m (2023 - £2.98m). At 30 June 2024, the group had net assets of £46.57m (2023 - £42.92m). The directors are satisfied with the performance of the group during the year and the results it has achieved.
The results this year reflect the continued impact of Covid-19 on the aerospace industry and the ongoing disruptions to supply chains and cost increases. While the aerospace industry is recovering, demand is returning to the sector, yet it is still facing these challenges. The fast and effective actions that the Directors took, including aggressive cost reductions, have been crucial in navigating these conditions.
Strategic actions to diversify the customer and product base, though still primarily within the aerospace sector, have continued and help to spread risk. The Group has maintained strong relationships with its principal customers and continues to provide an excellent level of service. Further investments in production facilities, processes, and staff will ensure flexibility as the industry continues to recover from extraordinary changes.
Future developments
While the aerospace industry continues to recover from disruptions to supply, shortages of skilled labour, and inflationary pressures, the Group remains robust with good management and financial resilience. The Directors are confident that the Group is well-placed to deliver excellent service, invest in its facilities and staff, and capitalise on opportunities in existing markets. Current industry predictions suggest that the impact will persist into 2024 and 2025. Prudent financial management has enabled the Group to remain stable over this extended period.
Financial key performance indicators
The Group uses several key financial and other performance indicators. Turnover and gross profit margins are the main financial measures the Directors use to judge the Group's performance.
Principal risks and uncertainties
The principal risks and uncertainties facing the Group concern changes in the aerospace industry due to prevailing economic circumstances and their impact on demand for the Group's products. This has been highlighted by the decline in airline passenger numbers and the demand for aerospace components during the pandemic. However, the mothballing of old aircraft and the availability of new, more cost-effective, and environmentally friendly aircraft are positive signs for the industry's long-term prospects. Difficult trading conditions often present opportunities for businesses with the reserves to emerge in good financial health, like McBraida. The risks are mitigated by continued significant investment in production facilities and staff to support customers and maintain performance relative to competitors in the industry.
Financial instruments
A commentary on the financial instruments held by the Group and the Group's exposure to price, credit, interest rate and liquidity risk is provided in note 22 to the financial statements.
Research and development
The Group undertakes research and development activities primarily in relation to its involvement in the high technology industry in which it is engaged to ensure it maintains its competitive position.
McBraida Holdings Limited
Strategic Report for the Year Ended 30 June 2024
Going concern
In accordance with Financial Reporting Council's 'Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2006' the directors of all companies are now required to provide disclosures regarding the adoption of the going concern basis of accounting.
After reviewing the Group's forecasts and projections, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its financial statements.
Approved by the
Director
McBraida Holdings Limited
Directors' Report for the Year Ended 30 June 2024
The directors present their report and the for the year ended 30 June 2024.
Directors of the company
The Directors who held office during the year were as follows:
Dividends
Dividends of £534k were payable in the year (2023 - £501k).
Charitable donations
During the year the Group made charitable donations totalling £300k (2023 - £375k) to a charity supporting humanitarian causes.
Disclosure of information to the auditor
Each Director has taken the steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Group's auditor is aware of that information. The Directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditors
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Hazlewoods LLP as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
Approved by the
Director
McBraida Holdings Limited
Statement of Directors' Responsibilities
The Directors are responsible for preparing the Strategic Report, Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and 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 apply them consistently; |
• | make judgements and accounting estimates that are reasonable and prudent; |
• | state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• | 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 Group's and the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
McBraida Holdings Limited
Independent Auditor's Report to the Members of McBraida Holdings Limited
Opinion
We have audited the financial statements of McBraida Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and 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 the parent company's affairs as at 30 June 2024 and of the group's profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
McBraida Holdings Limited
Independent Auditor's Report to the Members of McBraida Holdings Limited
Opinion on other matter 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and 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 our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
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 5, 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.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Extent to which the audit was capable of detecting irregularities, including fraud
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:
We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
McBraida Holdings Limited
Independent Auditor's Report to the Members of McBraida Holdings Limited
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgments made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
• |
reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
• |
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;. |
• |
enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and |
• |
reading minutes of meetings of those charged with governance. |
A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of this report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
For and on behalf of
Staverton Court
Staverton
GL51 0UX
McBraida Holdings Limited
Consolidated Profit and Loss Account for the Year Ended 30 June 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Distribution costs |
( |
( |
|
Administrative expenses |
( |
( |
|
Operating profit |
|
|
|
Income from and revaluation of other fixed asset investments |
|
|
|
Interest receivable and similar income |
|
|
|
2,968 |
1,351 |
||
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
|
Profit attributable to: |
|||
Owners of the company |
|
|
The above results were derived from continuing operations.
McBraida Holdings Limited
Consolidated Statement of Comprehensive Income for the Year Ended 30 June 2024
2024 |
2023 |
|
Profit for the year |
|
|
Foreign currency translation gains |
( |
( |
Total comprehensive income for the year |
|
|
Total comprehensive income attributable to: |
||
Owners of the company |
|
|
McBraida Holdings Limited
(Registration number: 07571422)
Consolidated Balance Sheet as at 30 June 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Tangible assets |
3,387 |
3,688 |
|
Other financial assets |
14,404 |
12,215 |
|
17,791 |
15,903 |
||
Current assets |
|||
Stocks |
4,540 |
4,792 |
|
Debtors |
8,717 |
5,492 |
|
Investments |
18,522 |
18,052 |
|
Cash at bank and in hand |
5,861 |
6,320 |
|
37,640 |
34,656 |
||
Creditors: Amounts falling due within one year |
(7,906) |
(7,240) |
|
Net current assets |
29,734 |
27,416 |
|
Total assets less current liabilities |
47,525 |
43,319 |
|
Deferred taxation |
(951) |
(399) |
|
Other provisions |
- |
- |
|
Net assets |
46,574 |
42,920 |
|
Capital and reserves |
|||
Called up share capital |
501 |
501 |
|
Merger reserve |
(450) |
(450) |
|
Profit and loss account |
46,523 |
42,869 |
|
Equity attributable to owners of the company |
46,574 |
42,920 |
|
Total equity |
46,574 |
42,920 |
Approved and authorised by the
Director
McBraida Holdings Limited
(Registration number: 07571422)
Balance Sheet as at 30 June 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Investments |
|
|
|
Other financial assets |
14,381 |
12,192 |
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Investments |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a profit after tax for the financial year of £2,035k (2023 - profit of £3,332k).
Approved and authorised by the
Director
McBraida Holdings Limited
Consolidated Statement of Changes in Equity for the Year Ended 30 June 2024
Equity attributable to the parent company
Share capital |
Merger reserve |
Profit and loss account |
Total |
|
At 1 July 2022 |
|
( |
|
|
Profit for the year |
- |
- |
|
|
Foreign currency translation |
- |
- |
( |
( |
Total comprehensive income |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 30 June 2023 |
|
( |
|
|
Share capital |
Merger reserve |
Profit and loss account |
Total |
|
At 1 July 2023 |
|
( |
|
|
Profit for the year |
- |
- |
|
|
Foreign currency translation |
- |
- |
( |
( |
Total comprehensive income |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 30 June 2024 |
|
( |
|
|
McBraida Holdings Limited
Statement of Changes in Equity for the Year Ended 30 June 2024
Share capital |
Profit and loss account |
Total |
|
At 1 July 2022 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 30 June 2023 |
|
|
|
Share capital |
Profit and loss account |
Total |
|
At 1 July 2023 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 30 June 2024 |
|
|
|
McBraida Holdings Limited
Consolidated Statement of Cash Flows for the Year Ended 30 June 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Loss on disposal of tangible assets |
- |
|
|
Profit from disposals of investments |
( |
( |
|
Finance income |
( |
( |
|
Income tax expense |
|
|
|
Foreign exchange losses |
( |
( |
|
|
|
||
Working capital adjustments |
|||
Decrease/(increase) in stocks |
|
( |
|
(Increase)/decrease in trade debtors |
( |
|
|
Increase in trade creditors |
|
|
|
Cash generated from operations |
( |
|
|
Income taxes paid |
- |
( |
|
Net cash flow from operating activities |
( |
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Dividend income |
|
|
|
Acquisition of investments |
( |
( |
|
Proceeds from disposal of investments |
|
|
|
Net cash flows from investing activities |
|
( |
|
Cash flows from financing activities |
|||
Dividends paid |
( |
( |
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 July |
|
|
|
Cash and cash equivalents at 30 June |
5,861 |
6,320 |
McBraida Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Basis of consolidation
The group financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 June 2024.
No income statement is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a profit after tax for the financial year of £2,035,000 (2023 - profit of £3,332,000).
In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 1 July 2014.
Therefore, the group continues to recognise a merger reserve which arose on a past business combination that was accounted for as a merger in accordance with UK GAAP as applied at that time.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
McBraida Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
2 |
Accounting policies (continued) |
Going concern
As noted in the strategic report, after reviewing the Group's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its financial statements.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the Group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Judgements
Valuation of stocks, and measurement of provision for impairment (see note 14): |
The cost of work in progress and finished goods includes labour and attributable overheads. These estimates are based on factors that include the labour time spent bringing those stocks into their current location and condition, and an estimate of the overhead costs incurred during that period. Judgement is also required regarding the classification of labour and overhead costs between those that are attributable to production activity, and those that are non-production costs. |
At each reporting date, stocks are assessed for impairment. The carrying values of stocks are compared to their net realisable values, being the estimate sales price less costs to complete and sell. This requires judgements regarding the expected future usage and / or sale of individual stock lines. |
Key sources of estimation uncertainty
Tangible fixed assets (see note 11):
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on the number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Investments (see note 12):
In relation to the determination of carrying value of investments at fair value through the Statement of Comprehensive Income, the Group applies the overriding concept that fair value is the amount for which an asset can be exchanged between knowledgeable willing parties in an arm's length transaction. The nature, facts and circumstances of each investment drives the valuation methodology.
Listed investments are valued at the quoted bid price at the balance sheet date. Unquoted investments are valued using a price/earnings multiple methodology. The relevant price/earnings multiple is determined by reference to those applying to quoted companies. This multiple is then applied to the earnings of the investee company in the year, after adjustments for one-off unusual income or expenditure in the year.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.
The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.
McBraida Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
2 |
Accounting policies (continued) |
Government grants
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.
Foreign currency transactions and balances
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 the Consolidated Statement of Comprehensive Income.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs’. All other foreign exchange gains and losses are presented in the Consolidated Statement of Comprehensive Income within 'administrative expenses'.
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
McBraida Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
2 |
Accounting policies (continued) |
Depreciation
Depreciation is provided on the following basis:
Asset class |
Depreciation method and rate |
Freehold property |
4% straight line |
Leasehold improvements |
8.33% straight line |
Plant & machinery |
15-19% reducing balance |
Motor vehicles |
25% reducing balance |
Fixtures & fittings |
20% reducing balance |
Computer equipment |
33.33% straight line |
Short life plant & ancillary equipment |
20% straight line |
Intangible assets
Asset class |
Amortisation method and rate |
Patents |
20% straight line |
Investments
Investments in subsidiaries are measured at cost less accumulated impairment. Where merger relief is applicable, the cost of the investment in a subsidiary undertaking is measured at the nominal value of the shares issued together with the fair value of any additional consideration paid.
Investments in unlisted 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 Statement of Comprehensive Income for 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 the Consolidated Statement of Comprehensive Income.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the debtors.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.
McBraida Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
2 |
Accounting policies (continued) |
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Interest income
Interest income is recognised in the Consolidated Statement of Comprehensive Income using the effective interest method.
Financial Instruments
Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.
McBraida Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
2 |
Accounting policies (continued) |
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the balance sheet when, and only when, there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.
Non-financial assets:
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
Financial assets:
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
McBraida Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Turnover |
Turnover is attributable to one class of business.
The analysis of the group's turnover for the year by market is as follows:
2024 |
2023 |
|
UK |
|
|
Europe |
|
|
Rest of world |
|
|
|
|
Operating profit |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Foreign exchange (gains)/losses |
( |
|
Operating lease expense - property |
|
|
Auditors' remuneration |
2024 |
2023 |
|
Audit of these financial statements |
39 |
37 |
Other fees to auditors |
||
All other non-audit services |
|
|
McBraida Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Staff costs |
Group
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Factory |
|
|
Sales and administration |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2024 |
2023 |
|
Directors' emoluments |
|
|
Contributions paid to money purchase schemes |
- |
60 |
578 |
553 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2024 |
2023 |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
2024 |
2023 |
|
Remuneration |
|
|
McBraida Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Interest receivable and similar income |
2024 |
2023 |
|
Interest income on investments |
578 |
3 |
Interest income on bank deposits |
|
|
Dividend income |
|
- |
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
2024 |
2023 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
|
( |
1,117 |
646 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
( |
Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods |
(98) |
(35) |
Total deferred taxation |
|
( |
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2023 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of revenues exempt from taxation |
( |
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
( |
( |
UK deferred tax expense/(credit) relating to changes in tax rates or laws |
|
( |
Increase/(decrease) in UK and foreign current tax from adjustment for prior periods |
|
( |
Tax increase from effect of capital allowances and depreciation |
|
|
Total tax charge |
|
|
McBraida Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
9 |
Taxation (continued) |
Deferred tax
Group
Deferred tax assets and liabilities
2024 |
Asset |
Liability |
Accelerated capital allowances |
- |
|
Investments held at valuation |
- |
|
Other timing differences |
|
- |
|
|
2023 |
Asset |
Liability |
Accelerated capital allowances |
- |
|
Investments held at valuation |
- |
|
Other timing differences |
|
- |
|
|
Company
Deferred tax assets and liabilities
2024 |
Asset |
Liability |
Investments held at valuation |
- |
|
Other timing differences |
|
- |
|
|
2023 |
Liability |
Investments held at valuation |
|
|
McBraida Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Tangible assets |
Group
Land and buildings |
Leasehold Improvements |
Plant & Machinery |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
Cost |
||||||
At 1 July 2023 |
|
577 |
|
|
|
|
Additions |
- |
- |
|
- |
|
|
At 30 June 2024 |
|
577 |
|
|
|
|
Depreciation |
||||||
At 1 July 2023 |
|
574 |
|
|
|
|
Charge for the year |
|
1 |
|
|
|
|
At 30 June 2024 |
|
575 |
|
|
|
|
Carrying amount |
||||||
At 30 June 2024 |
|
|
|
|
|
|
At 30 June 2023 |
|
|
|
|
|
|
Although the Group holds no formal lease to the premises from which it operates, the Group is assured of its tenure by the Landlord and Tennant Act 1954.
McBraida Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Investments |
Company
2024 |
2023 |
|
Investments in subsidiaries |
|
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Country of incorporation |
Holding |
Proportion of voting rights and shares held |
|
2024 |
2023 |
Subsidiary undertakings |
||||
|
England |
Ordinary |
|
|
|
Poland |
Ordinary |
|
|
Subsidiary undertakings |
McBraida Plc The principal activity of McBraida Plc is |
McBraida Polska Sp. z o.o. The principal activity of McBraida Polska Sp. z o.o. is |
McBraida Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Other financial assets |
Group
Listed investments |
Unlisted investments |
Total |
|
Non-current financial assets |
|||
Cost or valuation |
|||
At 1 July 2023 |
11,373 |
842 |
12,215 |
Revaluations |
2,327 |
(50) |
2,277 |
Additions |
3,111 |
- |
3,111 |
Disposals |
(2,990) |
(209) |
(3,199) |
At 30 June 2024 |
|
|
14,404 |
Company
Listed investments |
Unlisted investments |
Total |
|
Non-current financial assets |
|||
Cost or valuation |
|||
At 1 July 2023 |
11,373 |
819 |
12,192 |
Revaluations |
2,327 |
(50) |
2,277 |
Additions |
3,111 |
- |
3,111 |
Disposals |
(2,990) |
(209) |
(3,199) |
At 30 June 2024 |
|
|
14,381 |
Stocks |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Raw materials and consumables |
4,213 |
3,642 |
- |
- |
Finished goods and goods for resale |
|
|
- |
- |
|
|
- |
- |
McBraida Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Debtors |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Trade debtors |
|
|
- |
- |
Amounts owed by related parties |
- |
- |
|
|
Other debtors |
|
|
|
- |
Prepayments |
|
|
- |
- |
Corporation tax asset |
- |
678 |
403 |
564 |
Total current trade and other debtors |
|
|
|
|
Current asset investments |
Group |
Company |
|||
2024 |
Restated |
2024 |
Restated |
|
Short term liquid investments |
|
|
|
|
Creditors |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Due within one year |
||||
Loans and borrowings |
|
|
- |
- |
Trade creditors |
|
|
- |
- |
Social security and other taxes |
|
|
- |
- |
Outstanding defined contribution pension costs |
|
|
- |
- |
Other creditors |
|
|
- |
- |
Accrued expenses |
|
|
|
|
Corporation tax liability |
439 |
- |
- |
- |
|
|
|
|
Financial instruments |
Group
Categorisation of financial instruments
2024 |
2023 |
|
Financial assets measured at fair value through profit or loss |
|
|
Financial assets that are debt instruments measured at amortised cost |
|
|
|
|
|
Financial liabilities measured at amortised cost |
( |
( |
McBraida Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
17 |
Financial instruments (continued) |
Company
Categorisation of financial instruments
2024 |
2023 |
|
Financial assets measured at fair value through profit or loss |
|
|
|
|
|
Financial assets that are debt instruments measured at amortised cost |
4,123 |
4,522 |
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group faces interest rate risk through holding cash and cash equivalents with financial institutions.
Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with its financial liabilities. The Group's financial liabilities include its trade creditors, other creditors and accruals.
Sensitivity analysis
No sensitivity analysis has been disclosed as there would not be a material impact on the profit and loss account from a change in either equity prices or interest rates.
Fair values
The carrying amount of short term trade debtors and trade creditors is considered to be a reasonable approximation of their fair value.
Financial assets measured at fair value through profit and loss comprise investments and current asset investments.
Financial assets measured at amortised cost comprise trade debtors, amounts owed by group undertakings, other debtors and cash at bank and in hand.
Financial liabilities measured at amortised cost comprise trade creditors, amounts owed to group undertakings, government grants received and other creditors.
The Group faces price risk, credit risk, interest rate risk and liquidity risk as a result of its financial assets and liabilities. There is no significant currency risk, being the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.
Price risk
Price risk is the risk that an entity will suffer a financial loss through the fall in the price of an asset. The Group is exposed to equity security price risk because of equity investments held by the Group that are included as fixed asset investments on the statement of financial position. The Group seeks to manage the price risk by having a diverse portfolio of investments held for the long term and investing in a number of different sectors.
Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Group faces credit risk as a result of offering credit terms to its customers and holding cash and cash equivalents with financial institutions. The Group seeks to mitigate the risk that arises from offering credit terms by performing credit checks before terms are advanced and thereafter actively monitoring amounts receivable and denying additional credit when appropriate. The Group's maximum exposure to credit risk is equal to the value of trade debtors, other debtors, prepayments and accrued income and cash and cash equivalents.
McBraida Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Loans and borrowings |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Current loans and borrowings |
||||
Other borrowings |
|
|
- |
- |
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
Deferred tax and other provisions |
Company
Deferred tax |
Total |
|
At 1 July 2023 |
|
|
Increase (decrease) in existing provisions |
|
|
At 30 June 2024 |
|
|
|
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. 000 |
£ 000 |
No. 000 |
£ 000 |
|
501,000 Ordinary shares of £1 each |
501 |
501 |
501 |
501 |
McBraida Holdings Limited
Notes to the Financial Statements for the Year Ended 30 June 2024
Related party transactions |
Summary of transactions with key management
Other transactions with directors
During the year, rent totalling £175k (2023 - £175k) has been charged to the Group by M P McBraida, a director, in respect of the land and factory owed by M P McBraida from which the Group operates.
Summary of transactions with other related parties
The group has taken advantage of the exemption available under Section 33.1A of FRS 102 whereby it has not disclosed transactions with any wholly owned subsidiary undertaking of the group.
Parent and ultimate parent undertaking |
The company is controlled by its directors Michael and Ian McBraida and is majority owned by them.
Reserves |
Merger reserve
The merger reserve arose on a past business combination that was accounted for as a merger in accordance with UK GAAP as applied at that time.
Profit and loss account
Profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments.