REGISTERED NUMBER: 13736171 (England and Wales) |
Group Strategic Report, Directors' Report and |
Consolidated Financial Statements |
for the Year Ended 30 June 2024 |
for |
MWA Group Limited |
REGISTERED NUMBER: 13736171 (England and Wales) |
Group Strategic Report, Directors' Report and |
Consolidated Financial Statements |
for the Year Ended 30 June 2024 |
for |
MWA Group Limited |
MWA Group Limited (Registered number: 13736171) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30 June 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Directors' Report | 3 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Income and Retained Earnings |
8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Cash Flow Statement | 11 |
Notes to the Consolidated Cash Flow Statement | 12 |
Notes to the Consolidated Financial Statements | 13 |
MWA Group Limited |
Company Information |
for the Year Ended 30 June 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
BUSINESS ADDRESS: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Hazlemere |
70 Chorley New Road |
Bolton |
Lancashire |
BL1 4BY |
BANKERS: | Lloyds Bank |
MWA Group Limited (Registered number: 13736171) |
Group Strategic Report |
for the Year Ended 30 June 2024 |
The directors present their strategic report of the company and the group for the year ended 30 June 2024. |
REVIEW OF BUSINESS |
We have traded well throughout the financial period, delivering a strong operating performance and a group profit before tax of over £1.9m. |
We continue to invest in a financially disciplined way to underpin our future growth and deliver improvements across all aspects of the business. |
The group remains in a healthy financial position with shareholders funds at 30 June 2024 in excess of £3.7m and a substantial year end net cash balance. Current trading is strong, we are confident on the outlook and we have a clear business strategy in place which means that we expect to make good progress in the financial year ahead. |
PRINCIPAL RISKS AND UNCERTAINTIES |
As with any business we face risks and uncertainties, both operationally and commercially, on a daily basis. It |
is the effective management of these risks that places us in a better position to be able to achieve our |
strategic objectives and embrace opportunities as they arise. |
The principal risks to the business are the current economic environment, health and safety, liquidity and credit risk. |
The group requires access to adequate financial resources in order to trade and manage its working |
capital requirements and the directors will always ensure that profit is backed by cash availability. |
KEY PERFORMANCE INDICATORS |
The group uses various Key Performance Indicators (KPIs) of both a financial and non-financial nature to |
measure its day-to-day operational activities and the longer-term health of the business. |
Gross profit % was 27.11% (2023 - 30.83%) and the consolidated operating profit was £1.8m (2023 - £2.2m). |
When considering future outlook and the goals to be achieved, our efforts are focussed on those areas of |
greatest significance to the business and our employees. |
ON BEHALF OF THE BOARD: |
MWA Group Limited (Registered number: 13736171) |
Directors' Report |
for the Year Ended 30 June 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 June 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of builders and plumbers merchants and commercial plumbing services. |
DIVIDENDS |
No interim dividends were paid during the year ended 30 June 2024. |
The directors recommend final dividends per share as follows: |
Ordinary A Shares 50p shares | 175000 |
Ordinary B Shares 50p shares | 175000 |
The total distribution of dividends for the year ended 30 June 2024 will be £ 350,000 . |
DIRECTORS |
The directors during the year under review were: |
The beneficial interests of the directors holding office on 30 June 2024 in the issued share capital of the company were as follows: |
30.6.24 | 1.7.23 |
Ordinary A Shares 50p shares |
50 | 50 |
- | - |
Ordinary B Shares 50p shares |
- | - |
50 | 50 |
DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the Group Strategic Report, the 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 group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
MWA Group Limited (Registered number: 13736171) |
Directors' Report |
for the Year Ended 30 June 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, DonnellyBentley Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
MWA Group Limited |
Opinion |
We have audited the financial statements of MWA Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
_ |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 June 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other matter |
The corresponding figures for the year to 30 June 2023 have not been audited as the group was small and so took exemption from audit under S479 of the Companies Act 2006. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Directors' Report, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Report of the Independent Auditors to the Members of |
MWA Group Limited |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report. |
We have nothing to report in respect of the following matters 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 Directors' Responsibilities Statement set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
MWA Group Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We obtained an understanding of the legal and regulatory framework applicable to the group and the |
sector in which it operates and considered the risk of non - compliance with applicable laws or regulations. |
We determined that the following laws and regulations were most significant: the Companies Act 2006, UK |
corporate taxation laws, health and safety regulations, employment law and landlord regulations. We designed audit procedures to respond to the risk, recognizing that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, for example, forgery or intentional misrepresentations, or through collusion. |
We obtained an understanding of how the group is complying with those legal and regulatory frameworks by making enquiries of the management. |
Our tests also included agreeing the financial statements disclosures to underlying supporting documentation. |
There are inherent limitations in the audit procedures described above and, the further removed |
non-compliance with laws and regulations is from the events and transactions reflected in the financial |
statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. |
We also addressed the risk of management override of internal controls, including testing journals and |
evaluating whether there was evidence of bias by the directors that represented a risk of material |
misstatement due to fraud. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
Hazlemere |
70 Chorley New Road |
Bolton |
Lancashire |
BL1 4BY |
MWA Group Limited (Registered number: 13736171) |
Consolidated |
Statement of Income and |
Retained Earnings |
for the Year Ended 30 June 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 13,416,085 | 12,542,635 |
Cost of sales | (9,779,001 | ) | (8,675,757 | ) |
GROSS PROFIT | 3,637,084 | 3,866,878 |
Administrative expenses | (1,834,242 | ) | (1,616,397 | ) |
1,802,842 | 2,250,481 |
Other operating income | 14,175 | - |
OPERATING PROFIT | 4 | 1,817,017 | 2,250,481 |
Gain/loss on revaluation of investment property |
211,242 |
- |
2,028,259 | 2,250,481 |
Interest payable and similar expenses | 5 | (65,913 | ) | (60,172 | ) |
PROFIT BEFORE TAXATION | 1,962,346 | 2,190,309 |
Tax on profit | 6 | (441,178 | ) | (453,460 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year | 2,618,050 | 1,115,201 |
Dividends | 8 | (350,000 | ) | (234,000 | ) |
RETAINED EARNINGS FOR THE GROUP AT END OF YEAR |
3,789,218 |
2,618,050 |
Profit attributable to: |
Owners of the parent | 1,521,168 | 1,736,849 |
MWA Group Limited (Registered number: 13736171) |
Consolidated Balance Sheet |
30 June 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 | 1,883,554 | 1,805,480 |
Investments | 10 | 100 | - |
Investment property | 11 | 944,999 | 210,438 |
2,828,653 | 2,015,918 |
CURRENT ASSETS |
Stocks | 12 | 600,653 | 413,962 |
Debtors | 13 | 2,145,323 | 1,352,636 |
Cash at bank and in hand | 1,227,743 | 1,812,635 |
3,973,719 | 3,579,233 |
CREDITORS |
Amounts falling due within one year | 14 | 2,246,685 | 2,203,146 |
NET CURRENT ASSETS | 1,727,034 | 1,376,087 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,555,687 |
3,392,005 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(595,430 |
) |
(654,321 |
) |
PROVISIONS FOR LIABILITIES | 19 | (170,939 | ) | (119,534 | ) |
NET ASSETS | 3,789,318 | 2,618,150 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 100 | 100 |
Retained earnings | 21 | 3,789,218 | 2,618,050 |
SHAREHOLDERS' FUNDS | 3,789,318 | 2,618,150 |
The financial statements were approved by the Board of Directors and authorised for issue on 28 March 2025 and were signed on its behalf by: |
M K Norton - Director |
MWA Group Limited (Registered number: 13736171) |
Company Balance Sheet |
30 June 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
Investment property | 11 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,116,644 | 1,057,139 |
The financial statements were approved by the Board of Directors and authorised for issue on |
MWA Group Limited (Registered number: 13736171) |
Consolidated Cash Flow Statement |
for the Year Ended 30 June 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,026,152 | 2,468,463 |
Interest paid | (49,262 | ) | (42,486 | ) |
Interest element of hire purchase payments paid |
(16,651 |
) |
(17,686 |
) |
Tax paid | (452,596 | ) | (53,967 | ) |
Net cash from operating activities | 507,643 | 2,354,324 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (231,868 | ) | (1,802,681 | ) |
Purchase of fixed asset investments | (100 | ) | - |
Purchase of investment property | (452,905 | ) | (210,438 | ) |
Sale of tangible fixed assets | 12,500 | 1,000 |
Net cash from investing activities | (672,373 | ) | (2,012,119 | ) |
Cash flows from financing activities |
Capital repayments in year | (73,109 | ) | (108,779 | ) |
Amount introduced by directors | 350,000 | 434,000 |
Amount withdrawn by directors | (347,053 | ) | (427,001 | ) |
Bank loan advances | - | 550,638 |
Hire purchase advances | - | 161,996 |
Equity dividends paid | (350,000 | ) | (234,000 | ) |
Net cash from financing activities | (420,162 | ) | 376,854 |
(Decrease)/increase in cash and cash equivalents | (584,892 | ) | 719,059 |
Cash and cash equivalents at beginning of year |
2 |
1,812,635 |
1,093,576 |
Cash and cash equivalents at end of year |
2 |
1,227,743 |
1,812,635 |
MWA Group Limited (Registered number: 13736171) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 June 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 1,962,346 | 2,190,309 |
Depreciation charges | 136,689 | 95,163 |
Loss on disposal of fixed assets | 4,607 | 2,013 |
Gain on revaluation of fixed assets | (211,242 | ) | - |
Finance costs | 65,913 | 60,172 |
1,958,313 | 2,347,657 |
Increase in stocks | (186,691 | ) | (140,515 | ) |
Increase in trade and other debtors | (792,687 | ) | (464,820 | ) |
Increase in trade and other creditors | 47,217 | 726,141 |
Cash generated from operations | 1,026,152 | 2,468,463 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2024 |
30.6.24 | 1.7.23 |
£ | £ |
Cash and cash equivalents | 1,227,743 | 1,812,635 |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 1,812,635 | 1,093,576 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.7.23 | Cash flow | At 30.6.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,812,635 | (584,892 | ) | 1,227,743 |
1,812,635 | (584,892 | ) | 1,227,743 |
Debt |
Finance leases | (155,633 | ) | 13,260 | (142,373 | ) |
Debts falling due within 1 year | (105,114 | ) | 20,262 | (84,852 | ) |
Debts falling due after 1 year | (511,948 | ) | 39,585 | (472,363 | ) |
(772,695 | ) | 73,107 | (699,588 | ) |
Total | 1,039,940 | (511,785 | ) | 528,155 |
MWA Group Limited (Registered number: 13736171) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 June 2024 |
1. | STATUTORY INFORMATION |
MWA Group Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements include the results of the Company and its subsidiary undertakings made up to the same accounting date and reflecting a uniform set of accounting policies. |
These consolidated accounts include the results of MWA Eco Systems Limited and Riverside Plumbing Supplies Limited. |
The consolidated accounts do not include the results of Bee Recruitment Limited as the group has taken advantage of Section 405 of the Companies Act 2006 to exclude the results of this company on the grounds that consolidation of its results is not material for the purpose of giving a true and fair view . |
Significant judgements and estimates |
The preparation of these financial statements requires certain judgements, estimates and assumptions |
that affect the reported amounts of assets, liabilities, income and expenses. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
MWA Group Limited (Registered number: 13736171) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade |
discounts. Turnover is recognised as follows: |
Sales of goods and services |
Turnover from the sale of goods and services is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the cost incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods or completion of the service. |
Contracting activities and revenue recognition |
When the outcome of a construction contract can be estimated reliably, contract costs and turnover |
are recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to a contract valuation. |
Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the |
period in which they are incurred and contract turnover is recognised to the extent of costs incurred |
that it is probable will be recoverable. |
When it is probable that contract costs will exceed the total contract turnover, the expected loss is |
recognised as an expense immediately, with a corresponding provision. |
Rental income |
Rental income is invoiced in the month in which it falls due. |
Remedial costs |
Costs associated with remedial work, to the extent not recoverable from customers by way of specific charge, are written off during the year in which they occur. |
No provision is made for expenditure on future remedial work unless the company has an obligation at the year end, it is probable that the company will be required to transfer economic benefits in settlement and the cost can be estimated reliably. |
Tangible fixed assets |
Long leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Investment property |
Investment properties are measured at fair value at each reporting date with changes in fair value recognised in profit or loss. |
Where a group member rents investment property to another group entity, the property is recognised at cost and is included as freehold property within tangible fixed assets. |
MWA Group Limited (Registered number: 13736171) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Stock expensed in the year is included in cost of sales. |
Debtors and creditors payable / receivable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Provisions |
Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. |
MWA Group Limited (Registered number: 13736171) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Change in accounting policy |
During the year to 30 June 2024 there has been a change in accounting policy relating to investment property owned by a group member and rented to another group member. Previously such property was held at fair value and included within investment property. Such property has now been recognised at cost and is included as freehold property within tangible fixed assets. |
The directors believe this change in accounting policy to be more appropriate. |
As a result of this change in accounting policy, the value of investment property in the accounts for the year to 30 June 2023 has been reduced by £1,045,223 and the value of freehold property within tangible fixed assets has been increased by the same amount. |
In the accounts for the year to 30 June 2024, as a result of this change in accounting policy, the value of investment property has been reduced by £1,202,105 and the value of freehold property within tangible fixed assets has been increased by the same amount. |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 2,376,834 | 1,715,087 |
Social security costs | 237,803 | 176,571 |
Other pension costs | 163,003 | 407,297 |
2,777,640 | 2,298,955 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Directors | 2 | 2 |
Plumbing staff | 53 | 40 |
Sales and administration | 11 | 11 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 331,943 | 162,635 |
Directors' pension contributions to money purchase schemes | 120,000 | 350,218 |
Information regarding the highest paid director for the year ended 30 June 2024 is as follows: |
2024 |
£ |
Emoluments etc | 169,574 |
Pension contributions to money purchase schemes | 60,000 |
MWA Group Limited (Registered number: 13736171) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 179,459 | 105,594 |
Depreciation - owned assets | 96,709 | 53,081 |
Depreciation - assets on hire purchase contracts | 39,978 | 42,082 |
Loss on disposal of fixed assets | 4,607 | 2,013 |
Auditors' remuneration | 29,000 | - |
Auditors' remuneration for non audit work | 12,825 | - |
Stock recognised as an expense | 6,109,087 | 5,523,104 |
Stock provision - movement | 100,524 | 75,663 |
Retentions provision - movement | 71,061 | 171,377 |
Contributions to money purchase pension schemes | 163,003 | 407,297 |
Auditors' remuneration comprises £5,000 for the audit of MWA Group Limited and £24,000 for the audit of the subsidiary companies. |
The amount of key management personnel compensation is the same as directors' remuneration |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest | 47,299 | 41,461 |
HMRC interest | 1,772 | 413 |
Mortgage interest | 191 | 612 |
Hire purchase interest | 16,651 | 17,686 |
65,913 | 60,172 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 460,187 | 372,112 |
Underprovision in prior year | - | (19,000 | ) |
Total current tax | 460,187 | 353,112 |
Deferred tax | (19,009 | ) | 100,348 |
Tax on profit | 441,178 | 453,460 |
MWA Group Limited (Registered number: 13736171) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
6. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 1,962,346 | 2,190,309 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 25 %) |
490,587 |
547,577 |
Effects of: |
Expenses not deductible for tax purposes | 1,519 | 2,577 |
Depreciation in excess of capital allowances | 1,883 | 4,080 |
Effect of change in rate of corporation tax | - | (81,774 | ) |
Adjustment re prior year | - | (19,000 | ) |
Surplus on revaluation of investment property less deferred tax provided thereon | (52,811 |
) |
- |
Total tax charge | 441,178 | 453,460 |
7. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary A Shares shares of 50p each |
Final | 175,000 | 117,000 |
Ordinary B Shares shares of 50p each |
Final | 175,000 | 117,000 |
350,000 | 234,000 |
MWA Group Limited (Registered number: 13736171) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
9. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Long | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST |
At 1 July 2023 | 1,045,223 | 289,480 | 28,884 |
Additions | 156,883 | - | 2,689 |
Disposals | - | - | - |
At 30 June 2024 | 1,202,106 | 289,480 | 31,573 |
DEPRECIATION |
At 1 July 2023 | - | 4,343 | 21,229 |
Charge for year | - | 5,789 | 2,933 |
Eliminated on disposal | - | - | - |
At 30 June 2024 | - | 10,132 | 24,162 |
NET BOOK VALUE |
At 30 June 2024 | 1,202,106 | 279,348 | 7,411 |
At 30 June 2023 | 1,045,223 | 285,137 | 7,655 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 July 2023 | 86,855 | 502,244 | 13,595 | 1,966,281 |
Additions | 5,831 | 63,245 | 3,220 | 231,868 |
Disposals | - | (19,502 | ) | - | (19,502 | ) |
At 30 June 2024 | 92,686 | 545,987 | 16,815 | 2,178,647 |
DEPRECIATION |
At 1 July 2023 | 20,610 | 104,637 | 9,982 | 160,801 |
Charge for year | 17,497 | 108,962 | 1,506 | 136,687 |
Eliminated on disposal | - | (2,395 | ) | - | (2,395 | ) |
At 30 June 2024 | 38,107 | 211,204 | 11,488 | 295,093 |
NET BOOK VALUE |
At 30 June 2024 | 54,579 | 334,783 | 5,327 | 1,883,554 |
At 30 June 2023 | 66,245 | 397,607 | 3,613 | 1,805,480 |
MWA Group Limited (Registered number: 13736171) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
9. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 | 201,993 |
DEPRECIATION |
At 1 July 2023 | 42,082 |
Charge for year | 39,978 |
At 30 June 2024 | 82,060 |
NET BOOK VALUE |
At 30 June 2024 | 119,933 |
At 30 June 2023 | 159,911 |
Company |
Freehold |
property |
£ |
COST |
At 1 July 2023 |
Additions |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
10. | FIXED ASSET INVESTMENTS |
Group |
Shares in |
group |
undertakings |
£ |
COST |
Additions | 100 |
At 30 June 2024 | 100 |
NET BOOK VALUE |
At 30 June 2024 | 100 |
MWA Group Limited (Registered number: 13736171) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
10. | FIXED ASSET INVESTMENTS - continued |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2023 |
Additions |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 70 Chorley New Road, Bolton, BL1 4BY |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Unit 6, Eclipse Works, Bradford Street, Wigan WN3 4HT |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Hazlemere, 70 Chorley New Road, Bolton, Lancashire BL1 4BY |
Nature of business: |
% |
Class of shares: | holding |
Bee Recruitment Limited was incorporated on 4th February 2024 and has not traded since that date. The company has not yet prepared its accounts for the period from incorporation to 28th February 2025. |
11. | INVESTMENT PROPERTY |
The investment properties were valued on an open market basis by Sapphire Homes (North) Limited. |
MWA Group Limited (Registered number: 13736171) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
11. | INVESTMENT PROPERTY - continued |
Group |
Fair value at 30 June 2024 is represented by: |
£ |
Valuation in 2024 | 281,656 |
Cost | 663,343 |
944,999 |
If investment property had not been revalued it would have been included at the following historical cost: |
2024 | 2023 |
£ | £ |
Cost | 663,343 | 210,438 |
Company |
Total |
£ |
COST OR VALUATION |
At 1 July 2023 |
Additions |
Revaluations |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
12. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Raw materials | 600,653 | 413,962 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 1,941,793 | 1,167,031 |
Amounts owed by group undertakings | - | - |
Other debtors | 153,097 | 129,269 |
VAT | 46,102 | 54,166 |
Prepayments | 4,331 | 2,170 |
2,145,323 | 1,352,636 |
MWA Group Limited (Registered number: 13736171) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 84,800 | 84,800 |
Other loans (see note 16) | 52 | 20,314 |
Hire purchase contracts (see note 17) | 19,306 | 13,260 |
Trade creditors | 686,144 | 655,132 |
Amounts owed to group undertakings | - | - |
Tax | 440,187 | 432,596 |
Social security and other taxes | 103,827 | 80,844 |
VAT | - | - | 10,048 | 4,453 |
Other creditors | 24,660 | 11,187 |
Directors' loan accounts | 14,650 | 11,703 | 3,939 | - |
Accrued expenses | 873,059 | 893,310 |
2,246,685 | 2,203,146 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 16) | 472,363 | 511,948 |
Hire purchase contracts (see note 17) | 123,067 | 142,373 |
595,430 | 654,321 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Bank loans | 84,800 | 84,800 |
Other loans | 52 | 20,314 |
84,852 | 105,114 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 89,800 | 84,800 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 194,400 | 219,400 |
Amounts falling due in more than five | years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 188,163 | 207,748 | 188,163 | 207,748 |
MWA Group Limited (Registered number: 13736171) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase | contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 19,306 | 13,260 |
Between one and five years | 123,067 | 142,373 |
142,373 | 155,633 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Bank loans | 557,163 | 596,748 |
Hire purchase contracts | 142,373 | 155,633 |
699,536 | 752,381 |
Lloyds Bank PLC holds fixed and floating charges covering all the property and undertakings of the group. |
The hire purchase creditors are secured on the assets being financed. |
19. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax | 170,939 | 119,534 | 70,414 | - |
Group |
Deferred |
tax |
£ |
Balance at 1 July 2023 | 119,534 |
Provided during year | 51,405 |
Balance at 30 June 2024 | 170,939 |
MWA Group Limited (Registered number: 13736171) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2024 |
19. | PROVISIONS FOR LIABILITIES - continued |
Company |
Deferred |
tax |
£ |
Provided during year |
Balance at 30 June 2024 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary A Shares | 50p | 50 | 50 |
Ordinary B Shares | 50p | 50 | 50 |
100 | 100 |
21. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 July 2023 | 2,618,050 |
Profit for the year | 1,521,168 |
Dividends | (350,000 | ) |
At 30 June 2024 | 3,789,218 |
22. | CAPITAL COMMITMENTS |
2024 | 2023 |
£ | £ |
Contracted but not provided for in the |
financial statements | 295,000 | - |