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Company registration number: 00856716
Morgan Marine Limited
Financial statements
30 June 2024
Morgan Marine Limited
Contents
Directors and other information
Strategic report
Directors report
Independent auditor's report to the members
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Morgan Marine Limited
Directors and other information
Directors D H Jones
R M Jones
E L Thomas
M A Thomas
H E Morse
Company number 00856716
Registered office Llandybie
Ammanford
Carmarthenshire
SA18 3GY
Business address Llandybie
Ammanford
Carmarthenshire
SA18 3GY
Auditor Morgan Hemp & Co Limited
103-104 Walter Road
Swansea
SA1 5QF
Bankers Barclays Bank plc
262 Oxford Street
Swansea
SA1 3BR
Morgan Marine Limited
Strategic report
Year ended 30 June 2024
The Directors present their strategic report for the year ended 30th June 2024
Principal activity
The principal activity of the company during the year was manufacture of Glass Reinforced Polymer (GRP) and fabricated Steel products.
Fair review of the business
The results for the year and financial position of the company are as shown in the annexed financial statements.
We continue to build strong relationships with out customers and suppliers; working with them to develop solutions to the increasing environmental, physical and commercial challenges.
Principal risks and uncertainties
The principal risks and uncertainties are:
The Company's operations expose it to a variety of financial risks that include the effects of changes in market prices, credit risk and interest rate risk. The Company has in place a risk management programme that seeks to limit adverse effects on the financial performance of the company. Given the size of the Company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the Company's finance department. The company does not use derivative financial instruments for speculative purposes.
Liquidity risk
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.
Credit risk
The company's principal financial assets are cash and trade debtors. The principal credit risk arises from its trade debtors. In order to manage credit risk, the company sets limits for customers based on a combination of payment history and third-party credit references. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt ageing and collection history.
Interest rate risk
The company has limited its interest rate risk by continuing to hold sufficient cash balances to meet its needs without the need for further financing.
Financial key performance indicators
The key performance indicators are set out below:
2024 2023 Variance
Turnover £20.7m £17.5m £3.2m
Gross profit £6.4m £4.4m £2m
Gross profit % 30.9% 25.1% 5.8%
Profit before taxation £1.7m £900k £800k
Profit before taxation % 8% 4.9% 3.1%
Research & Development
During the accounting period the Company continued to invest in Research & Development. The objective being to continue to develop its product range and remain a leading provider of advanced GRP & Steel solutions.
This report was approved by the board of directors on 26 March 2025 and signed on behalf of the board by:
D H Jones
Director
R M Jones
Director
Morgan Marine Limited
Directors report
Year ended 30 June 2024
The directors present their report and the financial statements of the company for the year ended 30 June 2024.
Directors
The directors who served the company during the year were as follows:
D H Jones
R M Jones
E L Thomas
M A Thomas
H E Morse
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Future developments
The company will continually invest in Research & Development to improve our range of products as well as diversifying to enable us to move into new markets.
Financial instruments
The Company's operations expose it to a variety of financial risks that include the effects of changes in market prices, credit risk and interest rate risk. The Company has in place a risk management programme that seeks to limit adverse effects on the financial performance of the company. Given the size of the Company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the Company's finance department. The company does not use derivative financial instruments for speculative purposes.
Disclosure of information in the strategic report.
The company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008
Directors responsibilities statement
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 company and the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent; 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 company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 26 March 2025 and signed on behalf of the board by:
D H Jones R M Jones
Director Director
Morgan Marine Limited
Independent auditor's report to the members of
Morgan Marine Limited
Year ended 30 June 2024
Opinion
We have audited the financial statements of Morgan Marine Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, 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 FRS 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 company's affairs as at 30 June 2024 and of its 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’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the 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 strategic report and the directors' report has 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and the 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, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK Health and Safety legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006.We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial performance and misappropriation of assets. Audit procedures performed included:Discussions with management, including consideration of known or suspected instances of noncompliance with laws and regulation and fraud;Reviewing the company's accident book;Reviewing relevant meeting minutes of the board of directors;Identifying and reviewing journal entries to ensure that we understood the reasoning behind them and agreed that they were appropriate;Selecting a sample of transactions and tracing to documentation to establish that they are bonafide business transactions; andDesigning audit procedures to incorporate unpredictability around the nature, timing or extent of our testing.There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in 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.
Richard Reeves (Senior Statutory Auditor)
For and on behalf of
Morgan Hemp & Co Limited
Chartered Certified Accountant and Statutory Auditior
103-104 Walter Road
Swansea
SA1 5QF
27 March 2025
Morgan Marine Limited
Statement of comprehensive income
Year ended 30 June 2024
2024 2023
Note £ £
Turnover 4 20,692,379 17,511,655
Cost of sales ( 14,296,999) ( 13,119,331)
_______ _______
Gross profit 6,395,380 4,392,324
Administrative expenses ( 4,648,074) ( 3,558,365)
Other operating income 5 27,304 107,582
_______ _______
Operating profit 6 1,774,610 941,541
Other interest receivable and similar income 9 11,671 ( 146)
Interest payable and similar expenses 10 ( 132,527) ( 88,952)
_______ _______
Profit before taxation 1,653,754 852,443
Tax on profit 11 ( 372,291) ( 188,570)
_______ _______
Profit for the financial year and total comprehensive income 1,281,463 663,873
_______ _______
Morgan Marine Limited
Statement of financial position
30 June 2024
2024 2023
Note £ £ £ £
Fixed assets
Intangible assets 13 4,087 4,087
Tangible assets 14 1,949,729 2,056,235
_______ _______
1,953,816 2,060,322
Current assets
Stocks 15 348,529 531,969
Debtors 16 5,180,168 4,489,974
Cash at bank and in hand 1,647,531 106,728
_______ _______
7,176,228 5,128,671
Creditors: amounts falling due
within one year 17 ( 3,935,048) ( 3,034,134)
_______ _______
Net current assets 3,241,180 2,094,537
_______ _______
Total assets less current liabilities 5,194,996 4,154,859
Creditors: amounts falling due
after more than one year 18 ( 1,657,686) ( 1,780,726)
Provisions for liabilities 21 ( 37,966) ( 156,252)
_______ _______
Net assets 3,499,344 2,217,881
_______ _______
Capital and reserves
Called up share capital 25 12,442 12,442
Share premium account 26 12,453 12,453
Revaluation reserve 26 120,887 131,877
Capital redemption reserve 26 25,291 25,291
Profit and loss account 26 3,328,271 2,035,818
_______ _______
Shareholders funds 3,499,344 2,217,881
_______ _______
These financial statements were approved by the board of directors and authorised for issue on 26 March 2025 , and are signed on behalf of the board by:
D H Jones R M Jones
Director Director
Company registration number: 00856716
Morgan Marine Limited
Statement of changes in equity
Year ended 30 June 2024
Called up share capital Share premium account Revaluation reserve Capital redemption reserve Profit and loss account Total
£ £ £ £ £ £
At 1 July 2022 12,442 12,453 142,867 25,291 4,335,955 4,529,008
Profit for the year 663,873 663,873
Other comprehensive income for the year:
Transfer ( 10,990) ( 10,990)
Transfer - - - - 10,990 10,990
_______ _______ _______ _______ _______ _______
Total comprehensive income for the year - - ( 10,990) - 674,863 663,873
Dividends paid and payable ( 2,975,000) ( 2,975,000)
_______ _______ _______ _______ _______ _______
Total investments by and distributions to owners - - - - ( 2,975,000) ( 2,975,000)
_______ _______ _______ _______ _______ _______
At 30 June 2023 and 1 July 2023 12,442 12,453 131,877 25,291 2,035,818 2,217,881
Profit for the year 1,281,463 1,281,463
Other comprehensive income for the year:
Transfer ( 10,990) ( 10,990)
Transfer - - - - 10,990 10,990
_______ _______ _______ _______ _______ _______
Total comprehensive income for the year - - ( 10,990) - 1,292,453 1,281,463
_______ _______ _______ _______ _______ _______
At 30 June 2024 12,442 12,453 120,887 25,291 3,328,271 3,499,344
_______ _______ _______ _______ _______ _______
Morgan Marine Limited
Statement of cash flows
Year ended 30 June 2024
2024 2023
£ £
Cash flows from operating activities
Profit for the financial year 1,281,463 663,873
Adjustments for:
Depreciation of tangible assets 159,185 120,027
Government grant income ( 4,251) ( 3,783)
Other interest receivable and similar income ( 11,671) 146
Interest payable and similar expenses 132,527 88,952
Tax on profit 372,291 188,570
Accrued expenses/(income) 634,435 ( 160,110)
Changes in:
Stocks 183,440 192,827
Trade and other debtors ( 689,074) 269,239
Trade and other creditors 30,874 ( 1,284,374)
_______ _______
Cash generated from operations 2,089,219 75,367
Interest paid ( 132,527) ( 88,952)
Interest received 11,671 ( 146)
Tax paid ( 255,311) ( 61,614)
_______ _______
Net cash from/(used in) operating activities 1,713,052 ( 75,345)
_______ _______
Cash flows from investing activities
Purchase of tangible assets ( 52,578) ( 112,802)
_______ _______
Net cash used in investing activities ( 52,578) ( 112,802)
_______ _______
Cash flows from financing activities
Proceeds from borrowings 929 1,748,565
Repayments of borrowings ( 110,000) ( 17,087)
Government grant income 4,251 3,783
Payment of finance lease liabilities ( 14,851) -
Equity dividends paid - ( 2,975,000)
_______ _______
Net cash used in financing activities ( 119,671) ( 1,239,739)
_______ _______
Net increase/(decrease) in cash and cash equivalents 1,540,803 ( 1,427,886)
Cash and cash equivalents at beginning of year 106,728 1,534,614
_______ _______
Cash and cash equivalents at end of year 1,647,531 106,728
_______ _______
Morgan Marine Limited
Notes to the financial statements
Year ended 30 June 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Llandybie, Ammanford, Carmarthenshire, SA18 3GY.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgementsThe judgments (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:Useful economic lives of tangible assetsThe annual depreciation charge of tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed periodically.Amounts recoverable on contractsDuring the year and at the balance sheet date the directors quantify the amounts recoverable on each contract in progress. Cost of work done to date including materials and staff costs is taken into consideration before arriving at a valuation by reference to the stage of completion. The company includes provisions in their valuations for unforeseen costs based on their risk and likelihood of them occurring. Provision against potential bad debtsDuring the year and at the balance sheet date the directors quantify the amounts recoverable on each contract in progress and any debtors still outstanding.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
In respect of contracts, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of contracts recognised by reference to the stage of completion.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to profit or loss.
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at a revalued amount, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill - 10 % straight line
Patents, trademarks and licences - 20 % straight line
Research and development - 20 % straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property - 2%, 5%, 10% and 20%
Plant and machinery - 10% and 33%
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Hire purchase and finance leases
Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.
Government grants are recognised using the accrual model.
Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.
Grants relating to assets are recognised in income on a systematic basis 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 and not deducted from the carrying amount of the asset.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.
4. Turnover
Turnover arises from:
2024 2023
£ £
Sale of goods 20,692,379 17,511,655
_______ _______
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2024 2023
£ £
United Kingdom 20,411,663 17,047,590
Europe 280,716 464,065
_______ _______
20,692,379 17,511,655
_______ _______
5. Other operating income
2024 2023
£ £
Rental income 23,053 37,448
Government grant income 4,251 3,783
Other operating income - 66,351
_______ _______
27,304 107,582
_______ _______
6. Operating profit
Operating profit is stated after charging/(crediting):
2024 2023
£ £
Depreciation of tangible assets 159,185 120,027
Impairment of trade debtors 142,778 89,275
Foreign exchange differences ( 480) -
Fees payable for the audit of the financial statements 18,880 22,000
_______ _______
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024 2023
Production staff 165 134
Administrative staff 36 36
Management 5 12
_______ _______
206 182
_______ _______
The aggregate payroll costs incurred during the year were:
2024 2023
£ £
Wages and salaries 5,735,594 4,611,179
Social security costs 437,688 371,052
Other pension costs 192,332 108,925
_______ _______
6,365,614 5,091,156
_______ _______
8. Directors remuneration
The directors aggregate remuneration in respect of qualifying services was:
2024 2023
£ £
Remuneration 326,031 245,392
Company contributions to pension schemes in respect of qualifying services 49,000 12,899
_______ _______
375,031 258,291
_______ _______
The number of directors who accrued benefits under company pension plans was as follows:
2024 2023
Number Number
Defined contribution plans 5 5
_______ _______
Remuneration of the highest paid directors in respect of qualifying services:
2024 2023
£ £
Aggregate remuneration 73,921 65,000
Company contributions to pension plans in respect of qualifying services 25,000 1,321
_______ _______
98,921 66,321
_______ _______
9. Other interest receivable and similar income
2024 2023
£ £
Bank deposits 10,050 ( 146)
Other interest receivable and similar income 1,621 -
_______ _______
11,671 (146)
_______ _______
10. Interest payable and similar expenses
2024 2023
£ £
Bank loans and overdrafts 132,527 86,921
Other interest payable and similar expenses - 2,031
_______ _______
132,527 88,952
_______ _______
11. Tax on profit
Major components of tax expense
2024 2023
£ £
Current tax:
UK current tax expense 490,577 170,311
_______ _______
Deferred tax:
Origination and reversal of timing differences ( 118,286) 18,259
_______ _______
Tax on profit 372,291 188,570
_______ _______
Reconciliation of tax expense
The tax assessed on the profit for the year is lower than (2023: higher than) the standard rate of corporation tax in the UK of 25.00 % (2023: 20.50%).
2024 2023
£ £
Profit before taxation 1,653,754 852,443
_______ _______
Profit multiplied by rate of tax 413,439 174,751
Effect of expenses not deductible for tax purposes 49,194 11,407
Effect of capital allowances and depreciation ( 89,279) -
Rounding on tax charge - ( 34)
Rate changes - 2,446
Capital Element of Grant Release ( 1,063) -
_______ _______
Tax on profit 372,291 188,570
_______ _______
12. Dividends
Equity dividends
2024 2023
£ £
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year) - 2,975,000
_______ _______
13. Intangible assets
Goodwill Development costs Total
£ £ £
Cost
At 1 July 2023 and 30 June 2024 7,620 203,964 211,584
_______ _______ _______
Amortisation
At 1 July 2023 and 30 June 2024 3,533 203,964 207,497
_______ _______ _______
Carrying amount
At 30 June 2024 4,087 - 4,087
_______ _______ _______
At 30 June 2023 4,087 - 4,087
_______ _______ _______
14. Tangible assets
Freehold property Plant and machinery Total
£ £ £
Cost
At 1 July 2023 2,665,786 112,802 2,778,588
Additions - 53,686 53,686
Disposals ( 925) ( 183) ( 1,108)
_______ _______ _______
At 30 June 2024 2,664,861 166,305 2,831,166
_______ _______ _______
Depreciation
At 1 July 2023 721,646 707 722,353
Charge for the year 145,327 13,732 159,059
Disposals - 25 25
_______ _______ _______
At 30 June 2024 866,973 14,464 881,437
_______ _______ _______
Carrying amount
At 30 June 2024 1,797,888 151,841 1,949,729
_______ _______ _______
At 30 June 2023 1,944,140 112,095 2,056,235
_______ _______ _______
On transition to UK GAAP FRS 102 the Company opted to use revalued amount as deemed cost for the freehold properties held in the accounts and as such does not require any further revaluations to take place going forward.An amount equal to the excess of the annual depreciation charge on revalued assets over the notional historical cost depreciation charge on those assets is transferred annually from the revaluation reserve to the profit and loss reserve.
15. Stocks
2024 2023
£ £
Raw materials and consumables 348,529 493,080
Work in progress - 38,889
_______ _______
348,529 531,969
_______ _______
16. Debtors
2024 2023
£ £
Trade debtors 2,560,741 2,205,866
Amounts owed by group undertakings 1,006,259 773,603
Prepayments and accrued income 1,520,302 1,499,958
Other debtors 92,866 10,547
_______ _______
5,180,168 4,489,974
_______ _______
The debtors above include the following amounts falling due after more than one year:
2024 2023
£ £
Trade debtors 35,118 -
_______ _______
17. Creditors: amounts falling due within one year
2024 2023
£ £
Bank loans and overdrafts 120,000 120,000
Payments received on account 761,572 -
Trade creditors 1,106,321 802,237
Amounts owed to group undertakings - 50,908
Accruals and deferred income 1,032,588 1,008,389
Corporation tax 405,577 170,311
Social security and other taxes 404,782 247,192
Obligations under finance leases 14,990 14,990
Director loan accounts 11,657 10,728
Other creditors 77,561 609,379
_______ _______
3,935,048 3,034,134
_______ _______
18. Creditors: amounts falling due after more than one year
2024 2023
£ £
Accruals and deferred income 168,962 167,151
Obligations under finance leases 38,724 53,575
Other creditors 1,450,000 1,560,000
_______ _______
1,657,686 1,780,726
_______ _______
19. Obligations under finance leases
Company lessee
The total future minimum lease payments under finance lease agreements are as follows:
2024 2023
£ £
Not later than 1 year 381,697 14,990
Later than 1 year and not later than 5 years 823,350 53,575
_______ _______
1,205,047 68,565
_______ _______
Present value of minimum lease payments 1,205,047 68,565
_______ _______
20. Secured Debts
On the 24 August 2017 a charge was entered into with Carmarthenshire County Council which included a negative pledge over land and buildings held within the company.On the 16th July 2019 a fixed and floating charge, including a negative pledge was entered into with Barclays Bank PLC.On the 1st August 2022 a legal charge was entered into with Morgan GRP Ltd over the land and buildings held within the company. On the 24th October 2024 a fixed and floating charge, including a negative pledge was entered into with Barclays Bank PLC.
21. Provisions
Deferred tax (note 22) Total
£ £
At 1 July 2023 156,252 156,252
Unused amounts reversed ( 118,286) ( 118,286)
_______ _______
At 30 June 2024 37,966 37,966
_______ _______
22. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024 2023
£ £
Included in provisions (note 21) 37,966 156,252
_______ _______
The deferred tax account consists of the tax effect of timing differences in respect of:
2024 2023
£ £
Provisions 37,966 156,252
_______ _______
23. Employee benefits
The amount recognised in profit or loss in relation to defined contribution plans was £ 192,332 (2023: £ 108,925 ).
24. Government grants
2024 2023
£ £
At start of year 167,151 170,935
Grants received or receivable 9,532 (-)
Released to the profit or loss (4,251) (3,784)
_______ _______
At end of year 172,432 167,151
_______ _______
25. Called up share capital
Issued, called up and fully paid
2024 2023
No £ No £
Ordinary shares of £ 1.00 each 709 709 709 709
Ordinary A shares of £ 1.00 each 691 691 691 691
Ordinary B shares of £ 1.00 each 30 30 30 30
Ordinary C shares of £ 1.00 each 12 12 12 12
Ordinary E shares of £ 0.01 each 1,100,000 11,000 1,100,000 11,000
_______ _______ _______ _______
1,101,442 12,442 1,101,442 12,442
_______ _______ _______ _______
All classes of shares held rank pari passu to ordinary shares except for voting rights. Ordinary A,B,C & E shares have no voting rights.
26. Reserves
Share premium account:This reserve records the amount above the nominal value received for shares sold, less transaction costs.Revaluation reserve:This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income. Capital redemption reserve:This reserve records the nominal value of shares repurchased by the company.Profit and loss account:This reserve records retained earnings and accumulated losses.
27. Analysis of changes in net debt
At 1 July 2023 Cash flows At 30 June 2024
£ £ £
Cash and cash equivalents 106,728 1,540,803 1,647,531
Debt due within one year (720,397) 585,407 (134,990)
Debt due after one year (1,613,575) 124,851 (1,488,724)
_______ _______ _______
( 2,227,244) 2,251,061 23,817
_______ _______ _______
28. Related party transactions
Included in creditors is an amount of £11,657 (2023: £10,728) owed to a director.During the year rent of £160,151 (2023: £103,167) was paid to a pension scheme of which directors are a member of. Exemption under Section 33.1A has been claimed to not disclose transactions for 100% group companies.
29. Controlling party
The directors believe there to be no ultimate controlling party. JMMT Holdings Ltd is the parent company of Morgan Marine Ltd.