Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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MJT SECURITIES LIMITED
COMPANY INFORMATION
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MJT SECURITIES LIMITED
CONTENTS
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MJT SECURITIES LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The group’s principal activities during the year continued to be the sale and leasing of motor vehicles, the exporting of general merchandise, the provision and management of sheltered accommodation, property development and the letting of property.
The MJT Securities group comprises four main divisions :
Motor Retail Division The Motor Division expanded during 2024 with the opening of our second MG franchise in Southend and partnering with Omoda / Jaecoo in Brentwood. These two new Chinese brands launched in the UK in September 2024 and January 2025 respectively. We have also extended our partnership with Stellantis, opening a FIAT dealership within the multi franchise Stellantis building in Basildon. During 2024 we continued to invest in our facilities, allowing us to partner with additional manufacturers using our existing property footprint. During the year we completed the refurbishment of the Nissan and Hyundai dealerships in Basildon and replicated our multi franchise Stellantis concept in Southend by bringing Peugeot and Vauxhall under the same roof. Also during the year we relocated our bodyshop and refurbished the existing building to create a trade parts distribution hub which will house the trade parts operations for all brands. New vehicle sales increased by 7% from 2023, although we were 2% behind on a like for like basis when changes in dealership operations are taken into account. The new car market was very dynamic during the year as manufacturers looked to achieve the EV mandate introduced by the government in 2024. Used vehicle sales for the year increased by 5% compared to 2023 and were also 3% ahead on a like for like basis. After the disruption seen at the end of 2023 when used vehicle values fell dramatically, used vehicle values remained stable during the year. The service departments, which have struggled in recent years due to the national shortage of trained technicians, improved significantly. Rather than increasing technician numbers the improvement is the result of investment in the management of the departments, this has improved our customer satisfaction scores and increased the manufacturer bonuses. The parts departments remain the most profitable departments within the company, led by the trade parts business which relocated into the new trade parts hub between Christmas and New Year. The performance of the service departments also benefited the volume of parts sales through our own workshop. The petrol filing stations witnessed a reduction in fuel volume in the year as increasing numbers of fully electric vehicles and hybrids replace ICE vehicles. This will be a long term trend and we expect to partner with an EV charging supplier in 2025 to bring charging to both sites. The division enters 2025 well placed to benefit from the investment in facilities and the introduction of new brands during 2024. At the start of 2025 we welcomed another new brand, Leap Motors, a joint venture between Stellantis and a Chinese EV manufacturer. Vehicle Leasing Division Despite a reduction in profitability for the year, a result of market factors affecting the entire industry, 2024 was a successful year for the company.
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MJT SECURITIES LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Toomey Leasing Group has continued to increase the size of the sales team with the ultimate intention to build the fleet size further. During 2024 our fleet size increased every month and we ended the year with total fleet growth of 11%. The Sailsbury office recorded 76% fleet growth during the year and will be relocating to larger premises in 2025.
The improvement in new vehicle supply in 2023 triggered a realignment in used vehicle values at the end of 2023, resulting in our average end of contract profit per unit falling by 40% in 2024 compared to previous year. This was expected and budgeted for in 2024 and whilst lower than 2023, is still ahead of the average pre pandemic. Used electric vehicle prices have been significantly affected by the price realignment and on average we recorded a loss for each end of contract electric vehicle disposal. As a business we are protected from the reduction in electric vehicle prices as electric vehicles represent only 12% of the fleet, much lower than many of our competitors. Whilst we continue to see limited demand for fully electric vehicles, demand for plug in hybrids continues to increase and 45% of our vehicle additions were plug in hybrids during 2024. Plug in hybrids now represent 36% of our fleet and has resulted in the average emissions for our car fleet falling to 66g CO2/km, from 71g CO2/km last year and over 100g CO2/km previously. Increased fleet growth together with an increase in the average vehicle funded value has seen an increase in our borrowing. During 2024 all of our funders increased their facilities and together with the introduction of a new funder, we are confident we have sufficient headroom in our facilities to achieve our fleet growth aspirations. Exporting Division After improvements during recent years as the company recovered from the disruptions to supply chains which resulted from the pandemic, 2024 was a challenging year for Unit Export. Although the company reported a loss for the year, this was a result of delays in two major contracts which we expected to complete in the second half of 2024. Both of these projects will now be completed and the profit recognised in 2025. During the year Unit Export delivered two electric buses to the pacific island nation of Nauru, the first public transport ever introduced to the nation which has only 30 Km of paved roads. We also delivered 15 ambulances to the Bahamas. We have continued to invest in our staff, with a number of them obtaining the Prince 2 project management qualification during the year. Unit Export has carried £5.6m of contracts into 2025. Property Division The property division comprises MJT Securities Limited, Laindon Holdings Limited and George Martin Limited. The division owns properties which the trading entities operate from and commercial and residential properties with external tenants. The division also undertakes some property development. 2024 was a busy year for Laindon Holdings as it continues to undertake a strategic review of the property portfolio. George Martin continued to implement the five year property strategy developed during 2022. In 2024 George Martin project managed the sale of apartments at the Dunton Court development and commenced the New Century Road development of four houses, which will be completed and sold in 2025.
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MJT SECURITIES LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
George Martin remains heavily involved in investigating potential opportunities to develop and improve wider MJT Securities Group property portfolio, together with external property specialists.
Also in the year George Martin undertook a number of projects for Toomey Motor Group Limited, completing the refurbishment of the Hyundai and Nissan dealerships in Basildon and converting our old bodyshop into a multi-brand trade parts hub.
The principal risks and uncertainties facing the group are broadly grouped as competitive, legislative and financial instrument risks.
Competititive risks The group has contracts with a number of major customers that are subject to periodic competitive tender. However, the board believe that the group's diversity of both customers and products substantially mitigate any uncertainties caused by the renewal of these contracts. Legislative risks Road pricing and the reduction in carbon emissions are matters that are currently being debated by UK legislators. This may result in a more punitive tax regime for the motorist and a fall in demand for the group's products. However, the group continues to put environmental responsibilities high on the agenda and are able to supply many of the most fuel efficient and least polluting products currently available. Financial instrument risks The group is currently financing its business development programme by utilising borrowed funds and has therefore established a risk and financial management framework whose primary objectives are to protect the group from events that hinder the achievement of the group's performance objectives. The objectives aim to limit undue counterparty exposure, ensure sufficient working capital exists and monitor the management of risk at a business unit level. Use of financial instruments The group uses forward foreign currency contracts to reduce exposure to the variability of foreign exchange rates by fixing the rate of any material payments in foreign currency. A large part of the group borrowings is at fixed rates of interest, thus minimising interest rate exposures. Exposure to price, credit, liquidity and cash flow risk Price risk arises on financial instruments because of changes in, for example, finished goods prices. The group has policies in place to ensure stocks are held for a minimum period of time and therefore price risk exposure is very limited. Credit risk is the risk that one party to a financial instrument will cause a financial loss to the other party by failing to discharge an obligation. Group policies are aimed at minimising such losses, and require that deferred terms are only granted to customers that demonstrate an appropriate payment history and satisfy creditworthiness procedures. Details of the group's debtors are shown in note 16 to the financial statements. Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The group aims to mitigate liquidity risk by managing cash generation by its operations, applying cash collection targets throughout the group. The group also manages liquidity risk via revolving credit facilities and long term debt.
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MJT SECURITIES LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Cash flow risk is the risk of exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability. The group manages this risk by the use of vehicle stocking loans and by use of financial instruments explained above.
During the year the group continued to develop the culture to improve engagement and retention of staff. During 2024 the number of employees who started and left within a twelve month period reduced by 8%. The group also invested in training, sending forty managers and future managers of the group on external training courses.
The group continues to invest in digital marketing and brand awareness, our website recorded 2.2M active user visits during 2024, a 10.9% increase. Social media plays an important role in the development of the Toomey brand and the company has posted content on Facebook, TickTock, Instagram and linkedin. Over the course of the year the group achieved over 55 million social impressions.
When making decisions, the Directors consider what is likely to lead to the success of the group and to be of benefit to the members as a whole over the long term. When making such decisions, the Directors also consider the interests of other key stakeholders and seek to arrive at conclusions which do not adversely impact those groups as a whole. For the purposes of decision making, the Directors have identified key stakeholder groups, have evaluated their interests, and describe below how they have engaged with, and responded to, the interests of those stakeholders during the year. The areas below demonstrate the board's commitment to maintaining high standards of business conduct and professionalism.
Customers - Dealing with a trusted organisation and maintaining a relationship over the longer term. - Dealing with knowledgeable staff and receiving balanced advice when purchasing goods or services. - Obtaining good value for money. - Having clarity over the pricing of goods and services. This is achieved by: - Obtaining frequent customer satisfaction surveys. - Monitoring customer complaints and addressing any common themes that may arise. - Maintaining strong relationships with the group's suppliers to deliver the best value for money to customers. Employees - Providing a safe working environment. - Being part of a successful and secure organisation.
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MJT SECURITIES LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
This is achieved by:
- Providing diversity within the workplace. - Maintaining a friendly working environment, with organisational values and working policies. - Providing adequate training to staff to ensure they are well equipped to fulfill their roles. - Providing health and safety training to promote safe working practices. Suppliers - Prompt, clear and regular communication with suppliers. - Developing an open and collaborative relationship. This is achieved by: - Maintaining strong relationships with major suppliers through regular meetings with senior management. - Long term partnerships with major suppliers whose principles are aligned with our own. Communities - Delivery of employment opportunities. This is achieved by: - Providing direct employment to nearly 400 employees and indirect employment to many more. Funders - Maintaining open, longstanding and strong relationships with funders. This is achieved by: - Maintaining strong relationships through regular meetings with senior management. - Providing regular operational data. - Strong day to day working relationships with operational staff. Shareholders - Strong return on investment and continued growth. - Financial discipline and strong internal controls. This is achieved by: - Regular board meetings where periodic financials are presented. - Clear and transparent annual reporting.
This report was approved by the board and signed on its behalf.
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MJT SECURITIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors present their report and the financial statements for the year ended 31 December 2024.
The Directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 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.
The profit for the year, after taxation, amounted to £4,381,341 (2023 - £5,234,026).
The Directors who served during the year were:
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MJT SECURITIES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors do not anticipate any significant changes in the principal activities of the parent company or its subsidiary undertakings.
Qualifying third party indemnity provisions
During the year end up to the date of this report, the group maintained liability insurance and third party indemnification provisions for its Directors, under which the group has agreed to indemnify the Directors to the extent permitted by law in respect of all liabilities to third parties arising out of, or in connection with, the execution of their powers, duties and responsibilities as Directors of the group. Disabled employees The group gives full and fair consideration of applications for employment made by disabled persons, having regard to their particular aptitudes and abilities where the requirements of the job can be adequately fulfilled by a disabled person. Where existing employees become disabled, it is the group's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate.
Regular meetings are held betweeen local management and employees to allow a free flow of information and views. The group operates a number of bonus schemes designed to encourage employee involvement in the group's performance.
Information with regard to these matters is contained on pages 5 and 6.
The board believes good environmental practices, such as the recycling of paper waste, engine oil and tyres and conservation of energy usage, will support its strategy of enhancing the reputation of the group. During the year the group has taken a number of measures to improve energy efficiency. These include:
- ensuring all equipment is regularly maintained to ensure better operating efficiency,
- greater use of electric vehicles within the group's fleet, - installation of energy efficient lighting, - installation of movement detectors so that lighting is automatically turned off when not in use.
The methodology for the gas and electricity usage are taken from utility bills. For transport, this data is taken from either fuel consumption data or logged mileage claims. This data was converted using the 2024 government conversion factors.
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MJT SECURITIES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
UK energy use was as follows:
There have been no significant events affecting the Group since the year end.
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MJT SECURITIES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The auditor, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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MJT SECURITIES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MJT SECURITIES LIMITED
We have audited the financial statements of MJT Securities Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting 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).
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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
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MJT SECURITIES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MJT SECURITIES LIMITED (CONTINUED)
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.
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.
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.
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MJT SECURITIES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MJT SECURITIES LIMITED (CONTINUED)
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 Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
· Enquiry of management and those charged with governance around actual and potential litigation and claims;
· Enquiry of staff to identify any instances of non-compliance with laws and regulations; · Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; · Reviewing financial statement disclosures and testing to supporting documentation to access compliance with applicable laws and regulations.
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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditor's Report.
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MJT SECURITIES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MJT SECURITIES LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditors
Colchester United Kingdom
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MJT SECURITIES LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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MJT SECURITIES LIMITED
REGISTERED NUMBER: 02602675
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024
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MJT SECURITIES LIMITED
REGISTERED NUMBER: 02602675
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 24 to 48 form part of these financial statements.
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MJT SECURITIES LIMITED
REGISTERED NUMBER: 02602675
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
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MJT SECURITIES LIMITED
REGISTERED NUMBER: 02602675
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 24 to 48 form part of these financial statements.
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MJT SECURITIES LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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MJT SECURITIES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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MJT SECURITIES LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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MJT SECURITIES LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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MJT SECURITIES LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
MJT Securities Limited is a private company, incorporated in England, limited by shares and registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.
The presentation currency of the financial statements is the Pound Sterling (£). The group’s principal activities during the year continued to be the sale and leasing of motor vehicles, the exporting of general merchandise, the provision and management of sheltered accommodation, property development and the letting of property. The principal activities of the company during the year continued to be the provision of advisory and consultancy services and parking and valeting services.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
At the time of approving the financial statements the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future.
This judgement has been reached having produced budgets, reviewed positive post year end trading and reviewed the financing facilities available to the group. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: (a) the Group has transferred the significant risks and rewards of ownership to the buyer; (b) the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; (c) the amount of revenue can be measured reliably; (d) it is probable that the Group will receive the consideration due under the transaction; and (e) the costs incurred or to be incurred in respect of the transaction can be measured reliably. Rendering of services Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: (a) the amount of revenue can be measured reliably; (b) it is probable that the Group will receive the consideration due under the contract; (c) the stage of completion of the contract at the end of the reporting period can be measured reliably; and (d) the costs incurred and the costs to complete the contract can be measured reliably. Sale and buy-back Retirement properties are leased to tenants and subsequently repurchased by the group for a predetermined sum defined in the lease. The significant risks and rewards of ownership are deemed not to have transferred outside the group and consequently no sale is recognised. The initial amounts received in consideration from the leases are held as deferred income and taken to revenue on a straight line basis in line with the residual buy back value. Rental and leasing income All rental and leasing income is recognised on a straight-line basis over the period of the lease. Construction contracts Contract revenue and associated costs are recognised on architects certification of the stage of completion of the contract. Commission income and manufacturer bonuses Commissions receivable for arranging financing and related insurance products are included in revenue. Manufacturer bonuses are considered a reduction in the cost of vehicles sold, and hence are credited against cost of sales in the income statement.
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Where the group enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease. The asset is recorded on the balance sheet as a tangible asset and is depreciated in accordance with the above depreciation policies. Future instalments under such leases, net of finance charges, are included within creditors. Rentals payable are apportioned between the finance element, which is charged to the Income Statement on a straight line basis, and the capital element which reduces the outstanding obligation for future instalments.
The group operates a defined contribution pension scheme. Contributions payable to the Company's pension scheme are charged to the Income Statement in the period to which they relate.
Investment property Investment property represents a significant proportion of the asset base of the group and properties are regularly valued by third party professionals competent to undertake such valuations. Where individual properties have not been professionally valued within the current reporting period, the Directors assess fair value using current rental yields and comparisons with similar properties within the locality. Used vehicle valuation Used vehicle stock is a depreciating stock item and devalues monthly, making the estimated stock value uncertain. Consideration has been given by the Directors to the level of provision against vehicle stocks. In determining the provision required, the Directors have used guidance from independent valuation tools and their knowledge of their industry. Residual value of contract hire vehicles Applying residual values to assets that will not be disposed of for a number of years makes the estimated value uncertain and requires careful consideration and judgement. Consequently consideration has been given by the Directors to the residual values applied to the group's fleet using guidance from independent valuation tools and their extensive knowledge of the industry.
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 31
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 32
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 33
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
10.Taxation (continued)
There were no factors that may affect future tax charges.
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 36
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
11.Tangible fixed assets (continued)
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
11.Tangible fixed assets (continued)
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 39
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The group's portfolio of properties has been revalued by experienced, independent valuers who hold recognised and relevant professional qualifications. All valuations were carried out on the basis of market value and were undertaken between January 2017 and October 2024. The directors have concluded that there has been no material change in the value of these properties since the last full valuation. The original cost and net book value of these properties was £34,306,658.
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 41
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 42
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The preference shares issued in November 2021 are classified as a "financing transaction" under section 11.13 of FRS102. As a result, the company is required to recognise the net present value of assumed future dividend payments.
The net present value of future preference share dividends due in two to five years is £1,794,370 (2023 - £1,735,368). The net present value of future preference share dividends due in more than five years is £3,017,590 (2023 - £3,017,590). Future preference dividend distributions will be made in accordance with the Memorandum and Articles of Association which set out a dividend policy designed to provide a sustainable income stream for the family of the founder of the group, whilst ensuring the group has adequate financial resources to expand and develop.
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 44
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 45
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Revaluation reserve
Preference share obligation reserve
The preference shares are treated as a financing transaction under section 11.13 of FRS102, which necessitates the recognition of future dividends in the balance sheet. The movement in the preference share obligation reserve will be recognised in the profit and loss account each year, with a subsequent transfer to the preference share obligation reserve.
Other reserve
Profit and loss account
The Financial Conduct Authority (FCA) is currently investigating Discretionary Commission Arrangements (“DCAs”) within automotive finance. Under such arrangements, automotive dealers received variable commissions from lenders in respect of brokering finance for customers. Preliminary findings from the FCA review suggest that motor finance providers, and motor finance credit brokers (including motor dealers), who have engaged in motor finance agreements involving DCAs could be impacted and an update on this investigation is expected to be made by December 2025.
As this investigation is still ongoing, the Group does not have sufficient certainty over the nature, timing or value of any potential financial impact to be able to estimate the liability, if any, that may arise for the Group. As a result, no liability has been recognised at 31 December 2024 in respect of this investigation. The group has contingent liabilities in respect of retention guarantees, letters of credit, performance bonds and tender bonds amounting to £2,148,115 (2023 - £2,448,036). The company has guaranteed the bank overdrafts provided to subsidiary undertakings amounting to £3,425,882 (2023 - £3,820,827).
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 47
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MJT SECURITIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors consider that there is no single ultimate controlling party of the group.
Whilst the ordinary share capital is held by the Joseph Toomey Charitable Foundation, the charity does not have the power to govern and direct the financial or operational activities of MJT Securities Limited under any statute or agreement. The operational policies of MJT Securities Limited are determined and directed by the Directors of MJT Securities Limited.
Page 48
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