Company registration number 03703848 (England and Wales)
M&M INVESTMENT COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
M&M INVESTMENT COMPANY LIMITED
COMPANY INFORMATION
Directors
M Sheppard
P Sheppard
Secretary
P Sheppard
Company number
03703848
Registered office
12a Princes Gate Mews
London
SW7 2PS
Auditor
Azets Audit Services
Ship Canal House
98 King Street
Manchester
M2 4WU
Portfolio Manager
M & L Capital Management Limited
12a Princes Gate Mews
London
SW7 2PS
Bankers
National Westminster Bank Plc
19 Market Street
Manchester
M1 1WR
M&M INVESTMENT COMPANY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Statement of financial position
10 - 11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 26
M&M INVESTMENT COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2025
- 1 -

The Directors present their Strategic Report and financial statements for the year ending 31 January 2025.

 

The purpose of the Strategic Report is to provide a business review of the Company by:

 

 

Corporate Information

The Company is domiciled in the United Kingdom with company registration number 03703848.

Principal activities

The principal activity of the Company comprises the holding of equity focused investment funds, property investments and private equity investments.

Net Asset Growth

The Company’s net assets as at 31 January 2025 amounted to £182m compared with £152m as at 31 January 2024, an increase of 19.7 per cent (2024: increase of 38.9 per cent). The increase is due primarily to the increase in value of the Company’s flagship fund Manchester & London Investment Trust plc following a period of increasing valuation for global Artificial Intelligence companies.

Operational Cost Management

The Company's operating expenses for the year ended 2025 amounted to £0.2m (2024: £0.3m). The static operating costs demonstrates strong cost management for the year.

Net Earnings

The Company's net profit after taxation for the year was £32.4m (2024: £45.8m).

 

Investment record for the last ten years

Year Ended

Total Return

Total Assets Less Liabilities

Net Asset Value Per Share

 

 

 

 

 

£'000

£'000

£'000

 

 

 

 

31 January 2025

31 January 2024

34,132

45,780

183,786

152,267

2,647

2,181

31 January 2023

(27,112)

109,351

1,535

31 January 2022

(7,696)

138,888

1,904

31 January 2021

17,022

147,588

2,004

31 January 2020

8,143

122,032

1,765

31 January 2019

5,692

110,472

1,647

31 January 2018

14,926

91,913

1,555

31 January 2017 (six month period)

3,908

71,185

1,290

31 July 2016

10,193

66,678

1,224

 

 

 

 

 

M&M INVESTMENT COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 2 -
Going Concern

Going concern The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

 

Principal risks and uncertainties associated with the Company

The Company holds investments primarily in equity focused investment funds, property investments and private equity investments. The Company may also invest in derivatives, money market instruments and currency instruments including equity swaps, futures, forwards and options.

 

Potential risks associated with investments held may include: .

 

 

Whilst the use of borrowing by the Company should generally enhance the net asset value of the ordinary shares when the value of the Company's underlying assets is rising, it will have the opposite effect when the underlying asset values are falling.

 

Risk management

The Company manages the risks inherent in its investments by investing in a range of underlying and varying extents of leverage in relation to the Directors' assessment of overall market conditions.

 

Social, ethical and environmental policy

As an Investment Holding Company there are no direct social, environmental or community responsibilities. Its ethical policy is focused on ensuring that the Company's resources are properly managed and invested within the guidelines approved by the Board.

The Directors ensure that investments are made in companies that it considers to be well managed and subject to appropriate corporate governance. A well-managed company is considered to be one that complies with all the relevant legislation and that meets the environmental, social, community and ethical requirements of the country in which it operates.

The management of the listed investment portfolio is undertaken by M & L Capital Management Limited which has a defined social, ethical and environmental policy detailed on its web site, www.mlcapman.com. The ethos of this specific policy is followed by the Company as well when considering investments.

Future development

The Board is constantly reviewing the investment portfolio of the Company, to maximise returns.

 

On behalf of the board

M Sheppard
Director
27 March 2025
M&M INVESTMENT COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2025
- 3 -

The directors present their annual report and financial statements for the year ended 31 January 2025.

 

Investment objective

The investment objective of the company is to achieve capital appreciation and a reasonable level of income.

 

Investment policy

Asset allocation and risk diversification

The Company’s investment objective is sought to be achieved through a policy of actively investing in equity focused investment funds, UK and overseas equities, fixed interest securities, property related investments and private equity investments. The Company seeks to predominantly invest in companies whose shares are admitted to trading on a regulated market or are Undertakings for the Collective Investment of Transferable Securities (“UCITs”) funds. However, it may invest in equities and fixed interest securities of companies whose capital is not admitted to trading on a regulated market. The Company may also own several private company investments and direct and indirect property investments.

 

The Company intends to maintain a focused portfolio.

 

The Company may invest in derivatives, money market instruments and currency instruments including equity swaps, futures, forwards and options.

 

Management of financial risk

The main risk arising from the Company's investments is financial market volatility risk. There is also exposure to interest rate risk and currency risk. The management of these risks by the Directors is explained in note 16 to the financial statements.

 

Financial risk management objectives and policies

The Company holds or issues financial instruments and investments in order to achieve its main objectives, being:

 

  1. To achieve capital appreciation;

  2. to finance its operations;

  3. to manage its exposure to interest and currency risks arising from its operations and from its sources of finance; and

  4. for investment purposes.

 

In addition, the Company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from the Company's operations.

 

Transactions in financial instruments result in the Company assuming or transferring to another party one or more of the financial risks described below.

 

Credit risk

Investments of cash surpluses and borrowings are made through banks and companies which must fulfil credit rating criteria approved by the board. Trade and other receivables are reviewed on a regular basis and provision is made for doubtful debts whenever considered necessary.

 

Liquidity Risk

The Company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the Company has sufficient liquid resources to meet the operating needs of the business.

 

Interest Rate Risk

The Company is exposed to fair value interest rate risk on any borrowings and cash flow interest rate risk on any bank overdrafts and loans. The Company manages its cash flow so as to minimise its exposure to changes in interest rates.

M&M INVESTMENT COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 4 -

Subsequent events

There have been no events since the period end that are material enough to require disclosure

 

Gearing

The Company may borrow to leverage returns when it considers it to be in shareholders’ interests to do so.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Share Issue and buy back

During the year 898 (2024:1,570) “A” ordinary shares were bought back at an average price of £2,895.35 per share (2024: £1,815.66 per share) and cancelled.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

M Sheppard
P Sheppard
Statement of directors' responsibilities

The directors are responsible for preparing the annual 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 International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. 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 of the profit or loss of the company for that period. In preparing these financial statements, International Accounting Standard 1 requires that directors:

 

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.

M&M INVESTMENT COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 5 -
Statement of disclosure to auditor

Each director in office at the date of approval of this annual report confirms that:

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

On behalf of the board
M Sheppard
Director
27 March 2025
M&M INVESTMENT COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF M&M INVESTMENT COMPANY LIMITED
- 6 -
Opinion

We have audited the financial statements of M&M Investment Company Limited (the 'company') for the year ended 31 January 2025 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards.

In our opinion the financial statements:

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 contained within the annual report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

M&M INVESTMENT COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF M&M INVESTMENT COMPANY LIMITED
- 7 -
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 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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.

A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

M&M INVESTMENT COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF M&M INVESTMENT COMPANY LIMITED
- 8 -

Extent to which the audit was considered 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 and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we 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.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk 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.

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 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.

Graham Rigby (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
27 March 2025
Chartered Accountants
Statutory Auditor
Ship Canal House
98 King Street
Manchester
M2 4WU
M&M INVESTMENT COMPANY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2025
- 9 -
2025
2024
Notes
£'000
£'000
Income/(expenses) related to ordinary activities (Revenue)
Ordinary dividend income
4,755
3,153
Bank interest income
11
23
Property rent and service charges
159
97
Revaluation gains/(losses)
178
(178)
Other operating expenses
(195)
(164)
Finance costs
4
(61)
(52)
Operating profit/(loss)
3
4,847
2,879
Income related to ordinary activities (Capital)
Profit/(loss) on investments
2
39,026
57,604
Return on ordinary activities before tax
43,873
60,483
Tax Income/ (expense) (Capital)
7
(9,741)
(14,703)
Profit and total comprehensive income for the year
34,132
45,780
M&M INVESTMENT COMPANY LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 JANUARY 2025
31 January 2025
- 10 -
2025
2024
Notes
£'000
£'000
Fixed Assets
Property, plant and equipment
8
3,955
3,955
Investments
Current and Non Current Investments
10
202,935
161,170
Investment property
820
642
207,710
165,767
Current assets
Trade and other receivables
12
1,661
1,605
Cash and cash equivalents
768
1,177
2,429
2,782
Total assets
210,139
168,549
EQUITY
Called up share capital
16
69
70
Share premium account
43,639
43,639
Capital redemption reserve
5
4
Realised capital reserve
28,280
30,862
Unrealised capital reserve
74,619
45,365
Retained earnings
37,174
32,327
Total equity
183,786
152,267
LIABILITIES
Non-current liabilities
Borrowings
14
1,613
1,431
Deferred tax liabilities
15
23,770
14,029
25,383
15,460
Current liabilities
Trade and other payables
13
652
514
Borrowings
14
318
308
970
822
Total liabilities
26,353
16,282
Total equity and liabilities
210,139
168,549
M&M INVESTMENT COMPANY LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 JANUARY 2025
31 January 2025
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 27 March 2025 and are signed on its behalf by:
M Sheppard
Director
Company registration number 03703848
M&M INVESTMENT COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2025
- 12 -
Share capital
Share premium account
Capital Redemption Reserve
Capital reserve- realised
Capital reserve- unrealised
Retained earnings
Total
£'000
£'000
£'000
£'000
£'000
£'000
£'000
Balance at 1 February 2023
71
43,639
3
33,861
2,329
29,448
109,351
Total comprehensive income/ (loss)
-
-
-
(135)
43,036
2,879
45,780
Ordinary shares repurchased
(1)
-
1
(2,864)
-
-
(2,864)
Balance at 1 February 2024
70
43,639
4
30,862
45,365
32,327
152,267
Total comprehensive income/ (loss)
-
-
-
31
29,254
4,847
34,132
Ordinary shares repurchased
(1)
1
(2,613)
(2,613)
Balance at 31 January 2025
69
43,639
5
28,280
74,619
37,174
183,786
M&M INVESTMENT COMPANY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2025
- 13 -
2025
2024
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Return on ordinary activities before tax
43,873
60,483
Loss/ (profit) on investments
(39,026)
(57,782)
Valuation loss / (gain) on freehold property
(178)
178
Interest received
(11)
(23)
Interest charged
61
52
Decrease in trade and other receivables
-
1,236
Increase/ (decrease) in trade and other payables
47
(57)
Depreciation charged
-
2
Net cash inflow from operating activities
4,766
4,089
Investing activities
Purchase of shares in Investment Funds
(2,522)
(537)
Purchase of current money market fund investments
(2,141)
(1,359)
Proceeds from disposal of current money market fund investments
1,888
1,679
Acquisition of own shares
(2,613)
(2,865)
Purchase of investment property
-
(820)
Net movement on connected party loans
35
(22)
Net cash used in investing activities
(5,353)
(3,924)
Financing activities
New bank loan drawn down
500
-
Repayment of borrowings
(272)
(300)
Interest received
11
23
Interest paid
(61)
(52)
Net cash generated from/(used in) financing activities
178
(329)
Net decrease in cash and cash equivalents
(409)
(164)
Cash and cash equivalents at beginning of year
1,177
1,341
Cash and cash equivalents at end of year
768
1,177
M&M INVESTMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
- 14 -
1
Accounting policies
Company information

M&M Investment Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is 12a Princes Gate Mews, London SW7 2PS . The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Accounting convention

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

The financial statements have been prepared under the historical cost convention except for the revaluation of certain financial instruments (IAS 32 and 39) and investment properties. The principal accounting policies adopted are set out below.

As permitted by IFRS 10 consolidated accounts have not been prepared as the Company is an investment entity, which holds a number of investments upon which it is primarily attempting to maximise gains.

New standards and interpretations not applied

The IASB and IFRIC have issued the following standards and interpretations with an effective date of adoption for annual periods beginning on or after the effective date shown:

 

Accounting Standards

Effective date

IAS 21

The effect of changes in foreign exchange rates

1 January 2025

 

 

 

 

 

 

 

 

 

The Directors have chosen not to early adopt the above standards and interpretations and do not anticipate that they would have a material impact on the Company’s financial statements in the period of initial application. The Company will apply all new accounting standards in the first accounting period to which they apply.

1.2
Going concern

The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Revenue

Revenue is recognised when it is probable that economic benefits associated with a transaction will flow to the Company and the revenue can be reliably measured.

 

Dividend income from investments is recognised when the shareholders' right to receive payment has been established, normally the ex-dividend date. Special dividends that represent a return of capital are credited to capital reserves.

1.4
Presentation of statement of comprehensive income

The statement of comprehensive income reflects the total income of the Company, including both realised and unrealised gains on investments.

M&M INVESTMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 15 -
1.5
Property, plant and equipment

All property, plant and equipment, other than investment and freehold property, is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the asset. Subsequent costs are included in the asset's carrying value or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the asset will flow to the Company and the cost of the asset can be measured reliably.

 

Where a property is being developed for continued use, the property remains within fixed assets and any development expenditure is capitalised.

Freehold property is not depreciated and is held at valuation. This is a departure from the requirements of the Companies Act, but the directors consider it necessary for a true and fair view.

 

Property, plant and equipment are written off using the straight-line method over their expected useful economic lives as follows:

Fixtures and fittings
33% per annum
1.6
Investment property

Investment properties are held for long term yields, or capital appreciation, or for both.

Investment properties are measured initially at cost. After initial recognition, investment properties are measured and carried at fair value.

The fair value of the investment properties reflects market conditions at the balance sheet date. Changes in fair values are recorded in the statement of comprehensive income as investment properties fair value adjustments.

On disposal of an investment property, or when it is permanently withdrawn from use and future economic benefits no longer are expected from the property concerned, it shall be derecognised. The difference between the net disposal proceeds and the carrying value is recognised in the statement of comprehensive income in the period of the retirement or disposal.

1.7
Investments

Investments are held at fair value and changes in fair value are passed through profit or loss; fair value being the consideration provided and excluding transaction or other dealing costs associated with the investment.

 

Gains or losses on investments designated as at fair value through profit or loss are recognised as a capital item in the Income Statement.

 

Valuation methodologies are as follows:

All purchases and sales of investments are recognised on the trade date i.e. the date that the Company commits to purchase or sell an asset.

1.8
Cash and cash equivalents

Cash and short- term deposits in the statement of financial position comprise cash at bank, short-term deposits with an original maturity of three months or less and cash held in highly liquid cash investment accounts.

M&M INVESTMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 16 -
1.9
Dividends payable to shareholders

No equity dividend is accrued unless the shareholders' right to receive payment is established in the period.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the period. Taxable profit differs from profit before tax as reported in the statement of comprehensive income because it excludes items of income or expense that are taxable or deductible in other periods and it further excludes items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting period.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the balance sheet liability method. Deferred tax liabilities are recognised for taxable temporary differences where, in the opinion of the directors, the temporary difference is expected to be realised, and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled, or the asset is realised. Deferred tax is charged or credited in the statement of comprehensive income, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are not discounted.

1.11
Finance costs

Finance costs are accrued at the effective interest rate.

 

Finance costs of debt, insofar as they relate to the financing of the Company's investments or to financing activities aimed at maintaining or enhancing the value of the Company's investments, are allocated through profit or loss.

1.12
Foreign exchange

In preparing the financial statements, transactions in currencies other than pounds sterling are recorded at the actual rate of exchange prevailing on the dates of the transactions. At each reporting period, monetary assets and liabilities that are denominated in foreign currencies are translated at the rates prevailing at the end of the reporting period.

 

Foreign exchange gains and losses arising from the settlement of foreign currency transactions and from the translation of monetary assets and liabilities in foreign currencies are recognised in the statement of comprehensive income.

M&M INVESTMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 17 -
2
Profit on investments at fair value through profit or loss - capital reserve
2025
2024
£'000
£'000
Net (decrease)/increase in unrealised appreciation in investments
38,995
57,739
Deferred tax relating to unrealised losses/(gains)
(11,471)
(14,703)
Unrealised capital gain/(loss)
27,524
43,036
Realised gain on sale of investments
31
43
Fair value gain/(loss) on investment property
-
(178)
Realised capital gain/(loss)
31
(135)
27,555
42,901
3
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£'000
£'000
Fees payable to the company's auditor for the audit of the company's financial statements
25
24
Fees payable for services related to taxation
8
7
Loss on disposal of property, plant and equipment
1
-
4
Finance costs
2025
2024
£' 000
£ '000
Bank loan interest
61
52
M&M INVESTMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 18 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2025
2024
Number
Number
Management
2
2
Administrative
-
1
Total
2
3

Their aggregate remuneration comprised:

2025
2024
£'000
£'000
Wages and salaries
76
129
Social security costs
4
16
80
145
6
Directors' emoluments
2025
2024
£'000
£'000
Aggregate emoluments
80
62
7
Income tax expense
2025
2024
£
£
Deferred tax
Origination and reversal of temporary differences
9,736
14,740
Adjustment in respect of prior periods
5
(37)
9,741
14,703
M&M INVESTMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
7
Income tax expense
(Continued)
- 19 -

The charge for the year can be reconciled to the profit per the income statement as follows:

2025
2024
£
£
Profit before taxation
43,873
60,483
Expected tax charge based on a corporation tax rate of 25.00% (2024: 24.03%)
10,969
14,534
Effect of expenses not deductible in determining taxable profit
-
0
44
Income not taxable
(1,243)
(758)
Effect of change in UK corporation tax rate
-
0
572
Group relief
10
-
0
Under/(over) provided in prior years
5
(37)
Impairment loss not subject to tax
-
0
348
Taxation charge for the year
9,741
14,703
M&M INVESTMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 20 -
8
Property, plant and equipment
Freehold land and buildings
Fixtures and fittings
Total
£
£
£
Cost or valuation
At 1 February 2023 and 1 February 2024
3,957
26
3,983
Disposals
-
0
(26)
(26)
At 31 January 2025
3,957
-
0
3,957
Accumulated depreciation and impairment
At 1 February 2023
2
24
26
Charge for the year
-
0
2
2
At 31 January 2024
2
26
28
Eliminated on disposal
-
0
(26)
(26)
At 31 January 2025
2
-
0
2
Carrying amount
At 31 January 2025
3,955
-
3,955
At 31 January 2024
3,955
-
3,955

Freehold property is not depreciated and is held at current valuation. The property was subjected to a valuation review by the Directors at the period end, utilising valuation tools available from Zoopla. co.uk and information from the Land Registry. The property is currently valued at £3,954,741, with a historic cost (including stamp duty paid, legal costs and subsequent development expenditure) of £3,957,579.

Bank borrowings are secured on the Company's freehold property.

9
Investment property
2025
£'000
Fair value as at 31 January 2025
820

During the prior year, the Company acquired an investment property for total consideration of £820,000 which was then subject to an immediate impairment which reduced the carrying value to £642,000. During the current year, the directors have revisited the valuation with reference to similar properties in the area and concluded that a valuation of £820,000 is more appropriate, on an open market basis for existing use. Accordingly a revaluation gain of £178,000 has been recognised in the year.

 

M&M INVESTMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 21 -
10
Investments
Money Market Fund
Investment Funds
Private Equity Companies
Non Current Unlisted
Total
£'000
£'000
£'000
£'000
£'000
Book Cost
At 1 February 2023
891
98,947
1,049
628
101,515
Additions at cost
1,359
537
-
-
1,896
Disposals
(1,636)
-
-
-
(1,636)
At 31 January 2024
614
99,484
1,049
628
101,775
Additions at cost
2,141
2,521
-
0
-
0
4,663
Disposals
(1,888)
-
0
-
0
-
0
(1,888)
At 31 January 2025
867
102,005
1,049
628
104,549
Unrealised Appreciation
At 1 February 2023
(23)
(2,368)
4,174
(127)
1,656
Increase/ (decrease) in unrealised appreciation
17
59,562
(1,450)
(390)
57,739
At 31 January 2024
(6)
57,194
2,724
(517)
59,395
Increase/ (decrease) in unrealised appreciation
20
39,060
-
(90)
38,990
At 31 January 2025
14
96,254
2,724
(607)
98,385
Closing book cost
867
102,005
1,049
628
104,549
Closing unrealised appreciation
14
96,254
2,724
(607)
98,385
Closing fair value at 31 January 2025
881
198,259
3,773
21
202,934
Investments comprised:
2025
2024
Classification
£'000
£'000
Manchester & London Investment Trust Plc*
Fund
198,260
156,678
M&L Capital Management Ltd
Private equity investment
3,463
3,463
B S Sheppard & Granddaughters Nutrition Ltd
Private equity investment
310
310
Park Hyatt Development
Unlisted
10
10
Other investments
Various
11
101
Money Market Fund
Fund
881
608
202,935
161,170
*The holding in Manchester & London Investment Trust Plc is valued at net asset value, representing the aggregate of the market values of the underlying readily realisable and distributable investments within the vehicle.  The shares are traded on the London Stock Exchange at a discount to net asset value.
M&M INVESTMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
10
Investments
(Continued)
- 22 -
Acquisition of shares in Manchester & London Investment Trust Plc
2025
2024
No. of shares
No. of shares
Number of shares brought forward
22,388,977
22,273,827
Acquired during the year
357,652
115,150
Number of shares carried forward
22,746,629
22,388,977
Total shares in issue
39,775,645
40,193,018
Holdings as at reporting year end
57.19%
55.70%
The cost of the Manchester & London Investment Trust Plc shares acquired during the year, including purchase expenses, was £2,522,000  (2024:  £537,000).
11
Investments with substantial shareholding
Details of investments in which the Company has a substantial shareholding are given below
Country of incorporation & operation
Principal activities
% Held
Direct
Manchester & London Investment Trust Plc
England
Investment trust
57.19
M&L Capital Management Limited
England
Fund Management
100.00
B S Sheppard & Granddaughters Nutrition Ltd
England
Arable farm
100.00
-
-
The aggregate capital and reserves and the result for the year of the investments noted above was as follows:
Capital and Reserves
Profit/(Loss)
£'000
£'000
Manchester & London Investment Trust Plc
359,600
78,300
M&L Capital Management Limited
3,455
1,585
B S Sheppard & Granddaughters Nutrition Ltd
283
(57)
12
Trade and other receivables
2025
2024
£'000
£'000
Amounts due from related parties
1,661
1,605
M&M INVESTMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 23 -
13
Trade and other payables
2025
2024
£'000
£'000
Trade payables
51
5
Other payables
3
2
Amounts owed to related parties
598
507
652
514
14
Bank Loan
2025
2024
£'000
£'000
Bank loans due in < 1 year
318
308
Amount due between 1 and 5 years
1,613
1,337
Amounts due > 5 years
-
94
1,931
1,739

 

In February 2022, a bank loan was issued for £2,250,000, secured upon the Company's freehold property, incurring interest of 3.28% fixed for 7 years.

 

In November 2024, another bank loan was issued for £500,000 secured upon the Company's freehold property, incurring interest of 1.75% over base rate for 5 years.

15
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

Tax losses
Unrealised (loss)/gain on investments
Total
£
£
£
Liability at 1 February 2023
(82)
(592)
(674)
Deferred tax movements in prior year
Charge/(credit) to profit or loss
(57)
14,760
14,703
Liability at 1 February 2024
(139)
14,168
14,029
Deferred tax movements in current year
Charge/(credit) to profit or loss
(5)
9,746
9,741
Liability at 31 January 2025
(144)
23,914
23,770
M&M INVESTMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 24 -
16
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
"A" Ordinary shares of £1 each
68,784
69,682
69,682
69,682
"B" Ordinary shares of £1 each
136
136
136
136
"C" Ordinary shares of £1 each
1
1
1
1
68,921
69,819
69
70

During the year, the Company repurchased and cancelled 898 (2024: 1,570) of its “A” Ordinary shares for a value of £2,613,000 (2024: £2,865,000).

All the assets of the Company, other than £136 in cash (the "B" assets), are deemed to be attributable to the "A" and “C” ordinary shares. At the end of each financial period the profit or loss attributable to the "A" and “C” assets is debited or credited to the "A" and “C” reserves and likewise the profit or loss attributable to the "B" assets is debited or credited to the "B" reserves.

 

Holders of "A" shares shall have the sole right to vote on matters concerning the "A" assets and holders of "B" shares the sole right to vote on matters concerning the "B" assets. “C” ordinary shares shall rank the same in all respects with the other ordinary shares in the capital of the Company (other than “B” ordinary shares) except in respect to voting rights. As regards to voting, on a resolution proposed at a general meeting on a poll, every member (whether present in person, by proxy or authorised representative) shall have 200,000 votes in respect of each “C” ordinary share held.

M&M INVESTMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 25 -
17
Related party transactions

Transactions with companies in which the company or its directors owns the entire issued shares, a controlling interest or is able to exert significant influence, other than as disclosed elsewhere in these financial statements, were as follows:

 

M & L Capital Management Limited.

 

The amount due from M&L Capital Management Limited at the period end included in trade and other receivables is £17,000 (2024: £nil).

 

The Barns At Piggotts Hall Ltd

 

The amount due to The Barns At Piggotts Hall Ltd as at the period end, included in trade and other payables is £nil (2024: £15,000).

 

B S Sheppard 2003 Discretionary Trust of which M. Sheppard is a trustee.

The amount due to the B S Sheppard 2003 Discretionary Trust as at the period end, included in trade and other payables is £29,000 (2024: £29,000).

 

B S Sheppard 1991 Discretionary Trust of which M. Sheppard is a trustee.

 

The amount due to the B S Sheppard 1991 Discretionary Trust as at the period end, included in trade and other payables is £61,000 (2024: £61,000).

 

The Goodwin 1999 Discretionary Trust of which M. Sheppard is a trustee.

The amount due to the Goodwin 1999 Discretionary Trust as at the period end included in trade and other payables is £21,000 (2024: £21,000).

M&M INVESTMENT COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
17
Related party transactions
(Continued)
- 26 -

Mark Sheppard Bare Trust 2017 of which M. Sheppard is a trustee.

The amount due to the Mark Sheppard Bare Trust 2017 as at the period end included in trade and other payables is £295,000 (2024: £155,000).

 

M. Sheppard and close family members.

The amount due to M. Sheppard and close family members as at the period end included in trade and other payables is £183,000 ( 2024: £216,000)

 

B S Sheppard & Granddaughters Nutrition Ltd.

 

The amount due from B S Sheppard & Granddaughters Nutrition Ltd as at the period end included in trade and other receivables is £1,625,000 (2024: £1,606,000).

 

Piggotts Hall Property Management Ltd.

 

The amount due to Piggotts Hall Property Management Company Ltd as at the period end included in trade and other payables is £11,000 (2024: £12,000).

18
Ultimate Controlling Party

M&M Investment Company Ltd is under the control of M. Sheppard by virtue of his own direct and beneficial shareholdings in the Company.

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