REGISTERED NUMBER: 10690668 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JULY 2024 |
FOR |
MELLING PROPERTY HOLDINGS (WIGAN) LTD |
REGISTERED NUMBER: 10690668 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JULY 2024 |
FOR |
MELLING PROPERTY HOLDINGS (WIGAN) LTD |
MELLING PROPERTY HOLDINGS (WIGAN) LTD (REGISTERED NUMBER: 10690668) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 31 July 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 4 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
MELLING PROPERTY HOLDINGS (WIGAN) LTD |
COMPANY INFORMATION |
for the Year Ended 31 July 2024 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Chartered Accountants |
Douglas Bank House |
Wigan Lane |
Wigan |
Lancashire |
WN1 2TB |
BANKERS: | Lloyds TSB |
3rd Floor |
53 King Street |
Manchester |
M60 2LE |
MELLING PROPERTY HOLDINGS (WIGAN) LTD (REGISTERED NUMBER: 10690668) |
GROUP STRATEGIC REPORT |
for the Year Ended 31 July 2024 |
REVIEW OF BUSINESS |
The Group trading as Westwood Motor Group, has found the last financial year extremely challenging in many respects. The industry faced many difficulties, with the biggest being the adjustments we have had to make to the standing values of our used vehicles. During the first half of the financial year manufacturers significantly reduced prices of newly registered vehicles which in turn had a huge effect on the value of our used stock. The rate in depreciation of these vehicles especially over the first 12 months took a massive tumble and we had no option but to readjust the retail value of such vehicles in order to re-set and adjust to the market place. This obviously had a significant impact on our profit levels, even though overall turnover has exceeded £25 million, which is satisfying in the circumstances. |
Although manufacturers offered little or no support to the rental industry in the first half of the year we have now seen significant improvements in terms of discounts and support which we are now taking advantage of. We are now feeling confident in the pricing again and profit levels in rental and retail have resumed to a sustainable level. |
Interest rates have remained high in comparison to previous years which has also been challenging. We have had to spend a lot more time negotiating better rates with lenders in order to stay as competitive as possible. Profit margins have remained tight as a result of this. |
We have seen a slight decline in sales of new and used vehicles which we believe is down to the uncertainty of the economy. We see companies trying to cut costs especially in anticipation of wage bill rises and national insurance hikes that are due to come in the near future. As a result of this, companies are not changing over their fleet of vehicles as regularly as they perhaps would have. However, we see the rental side becoming more attractive as it allows companies to have flexibility in their transport costs. |
We have suffered an element of bad debt this year despite our tight internal controls and procedures. Again we feel that many companies are finding the economy difficult, especially with interest rates, utility costs and wage & PAYE/NI rises. |
The EV market has suffered even further in terms of residual value. This was a concern last year but has continued to decline further. We have therefore had to make further adjustments to our electric cars and vans values, in order to reflect their true position. |
As we look to the future, we feel confident that the market place is now beginning to stabilise. In the year ending July 2024 we have still suffered the repercussions of Covid19 and supply issues -specifically in relation to the company having no choice but to overpay for stock when supply was low. Although initially we experienced high profit margins post Covid19 when disposing of second hand vehicles - we have more than paid this back when having to adjust for the extra depreciation in the overpriced stock we had to purchase in order to replace these. |
Key performance indicators |
KPI's include sales, margins, wages and overheads and cash flow which are regularly monitored by senior management. |
2024 | 2023 |
£'000 | £'000 |
Turnover | 25,967 | 24,527 |
Gross profit | 9,599 | 9,916 |
Gross margin (%) | 36.9% | 40.4% |
EBITDA | 7,636 | 7,798 |
MELLING PROPERTY HOLDINGS (WIGAN) LTD (REGISTERED NUMBER: 10690668) |
GROUP STRATEGIC REPORT |
for the Year Ended 31 July 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The UK automotive industry and Rental Sector is highly competitive and management are mindful of the need for regular review of market pricing, contract profitability and competitor activity within the sector. |
The group uses various financial instruments, which include cash and asset financing arrangements together with other items such as trade debtors and trade creditors that arise directly from its operations. |
The existence of these financial instruments exposes the group to a number of financial risks. These include supply and stock holding issues and liquidity and credit risks. The director reviews and agrees policies for managing each of these risks and they are summarised below. |
Supply and stock holdings |
Constraints on lead times and delivery schedules, both commercial and contractual are putting a strain on supply of vehicles to our customers, and this is being managed with regular management meetings and dialogue with key suppliers. |
Liquidity risk |
Liquidity risk is the risk that the group will encounter difficulty in meeting obligations associated with financial liabilities. The director manages liquidity risk by maximising cash generation from its operations and short-term flexibility is achieved through the company's asset finance arrangements. |
Credit risk |
The group's main assets are it's hire fleet, stocks and debtors. The group's trade debtors relate to amounts owed by individuals, SME's and large national corporates. Given the current economic uncertainty, the director and management carefully monitor any default credit risk on an ongoing basis. |
We would like to thank, once again, our dedicated team members, suppliers, manufacturers and funding partners for their ongoing support. |
ON BEHALF OF THE BOARD: |
27 March 2025 |
MELLING PROPERTY HOLDINGS (WIGAN) LTD (REGISTERED NUMBER: 10690668) |
REPORT OF THE DIRECTOR |
for the Year Ended 31 July 2024 |
The director presents his report with the financial statements of the company and the group for the year ended 31 July 2024. |
PRINCIPAL ACTIVITY |
The company acts as a property management and holding company for its trading subsidiary, Melling Commercial Limited. The principal activity of the trading company was that of the sale and lease of motor vehicles, including contract hire and rentals. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 July 2024 will be £228,793 (2023: £296,000). |
DIRECTOR |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 group and company will continue in business. |
The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is 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 he 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. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MELLING PROPERTY HOLDINGS (WIGAN) LTD |
Opinion |
We have audited the financial statements of Melling Property Holdings (Wigan) Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, 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 31 July 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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. |
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 Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MELLING PROPERTY HOLDINGS (WIGAN) LTD |
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 Report of the Director. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MELLING PROPERTY HOLDINGS (WIGAN) LTD |
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 identified the laws and regulations applicable to the group through discussions with the director and other management, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on it's operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation, employment legislation and Health and Safety regulations. |
- we enquired of the director and reviewed correspondence with HMRC for evidence of non-compliance with laws and regulations. We also reviewed controls the directors have in place to ensure compliance. |
We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias. |
- we reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above; |
- we enquired of the director about actual and potential litigation and claims. |
Due to inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MELLING PROPERTY HOLDINGS (WIGAN) LTD |
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 |
Statutory Auditor |
Chartered Accountants |
Douglas Bank House |
Wigan Lane |
Wigan |
Lancashire |
WN1 2TB |
MELLING PROPERTY HOLDINGS (WIGAN) LTD (REGISTERED NUMBER: 10690668) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
for the Year Ended 31 July 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 25,966,851 | 24,527,046 |
Cost of sales | 16,367,397 | 14,611,461 |
GROSS PROFIT | 9,599,454 | 9,915,585 |
Administrative expenses | 7,647,059 | 6,049,151 |
1,952,395 | 3,866,434 |
Other operating income | 35,958 | 25,940 |
OPERATING PROFIT | 4 | 1,988,353 | 3,892,374 |
Interest receivable and similar income | 51,008 | - |
2,039,361 | 3,892,374 |
Gain/loss on revaluation of investment property |
- |
12,138 |
2,039,361 | 3,904,512 |
Interest payable and similar expenses | 5 | 1,732,583 | 1,145,156 |
PROFIT BEFORE TAXATION | 306,778 | 2,759,356 |
Tax on profit | 6 | (169,100 | ) | 640,451 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
475,878 |
2,118,905 |
Profit attributable to: |
Owners of the parent | 475,878 | 2,118,905 |
Total comprehensive income attributable to: |
Owners of the parent | 475,878 | 2,118,905 |
MELLING PROPERTY HOLDINGS (WIGAN) LTD (REGISTERED NUMBER: 10690668) |
CONSOLIDATED BALANCE SHEET |
31 July 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 | 24,399,237 | 23,450,682 |
Investments | 10 | - | - |
Investment property | 11 | 225,000 | 225,000 |
24,624,237 | 23,675,682 |
CURRENT ASSETS |
Stocks | 12 | 109,469 | 1,175,185 |
Debtors | 13 | 3,087,778 | 1,842,760 |
Cash at bank and in hand | 2,936,959 | 5,785,691 |
6,134,206 | 8,803,636 |
CREDITORS |
Amounts falling due within one year | 14 | 12,843,277 | 13,154,648 |
NET CURRENT LIABILITIES | (6,709,071 | ) | (4,351,012 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
17,915,166 |
19,324,670 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(6,436,664 |
) |
(7,779,212 |
) |
PROVISIONS FOR LIABILITIES | 19 | (2,189,581 | ) | (2,503,622 | ) |
NET ASSETS | 9,288,921 | 9,041,836 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 100 | 100 |
Revaluation reserve | 21 | 9,103 | 9,103 |
Merger reserve | 21 | 1,073,678 | 1,073,678 |
Retained earnings | 21 | 8,206,040 | 7,958,955 |
SHAREHOLDERS' FUNDS | 9,288,921 | 9,041,836 |
The financial statements were approved by the director and authorised for issue on 27 March 2025 and were signed by: |
C Melling - Director |
MELLING PROPERTY HOLDINGS (WIGAN) LTD (REGISTERED NUMBER: 10690668) |
COMPANY BALANCE SHEET |
31 July 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 | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 19 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Revaluation reserve | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 186,537 | 313,362 |
The financial statements were approved by the director and authorised for issue on |
MELLING PROPERTY HOLDINGS (WIGAN) LTD (REGISTERED NUMBER: 10690668) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 July 2024 |
Called up |
share | Retained | Revaluation | Merger | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 August 2022 | 100 | 6,145,153 | - | 1,073,678 | 7,218,931 |
Changes in equity |
Dividends | - | (296,000 | ) | - | - | (296,000 | ) |
Total comprehensive income | - | 2,109,802 | 9,103 | - | 2,118,905 |
Balance at 31 July 2023 | 100 | 7,958,955 | 9,103 | 1,073,678 | 9,041,836 |
Changes in equity |
Dividends | - | (228,793 | ) | - | - | (228,793 | ) |
Total comprehensive income | - | 475,878 | - | - | 475,878 |
Balance at 31 July 2024 | 100 | 8,206,040 | 9,103 | 1,073,678 | 9,288,921 |
MELLING PROPERTY HOLDINGS (WIGAN) LTD (REGISTERED NUMBER: 10690668) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 July 2024 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 August 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 July 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 July 2024 |
MELLING PROPERTY HOLDINGS (WIGAN) LTD (REGISTERED NUMBER: 10690668) |
CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 31 July 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 9,713,896 | 7,489,632 |
Interest paid | (26 | ) | - |
Interest element of hire purchase payments paid |
(1,732,557 |
) |
(1,145,156 |
) |
Tax paid | (238,793 | ) | (346,998 | ) |
Net cash from operating activities | 7,742,520 | 5,997,478 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (17,716,550 | ) | (22,150,035 | ) |
Sale of tangible fixed assets | 11,120,215 | 11,422,730 |
Interest received | 51,008 | - |
Net cash from investing activities | (6,545,327 | ) | (10,727,305 | ) |
Cash flows from financing activities |
New loans in year | - | 8,300,444 |
Loan repayments in year | (131,687 | ) | (406,771 | ) |
Capital repayments in year | (2,398,937 | ) | (3,277,021 | ) |
Amount introduced by director | 136,680 | 496,000 |
Amount withdrawn by director | (1,423,188 | ) | (497,442 | ) |
Equity dividends paid | (228,793 | ) | (296,000 | ) |
Net cash from financing activities | (4,045,925 | ) | 4,319,210 |
Decrease in cash and cash equivalents | (2,848,732 | ) | (410,617 | ) |
Cash and cash equivalents at beginning of year |
2 |
5,785,691 |
6,196,308 |
Cash and cash equivalents at end of year | 2 | 2,936,959 | 5,785,691 |
MELLING PROPERTY HOLDINGS (WIGAN) LTD (REGISTERED NUMBER: 10690668) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the Year Ended 31 July 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 306,778 | 2,759,356 |
Depreciation charges | 5,647,780 | 3,905,393 |
Gain on revaluation of fixed assets | - | (12,138 | ) |
Finance costs | 1,732,583 | 1,145,156 |
Finance income | (51,008 | ) | - |
7,636,133 | 7,797,767 |
Decrease/(increase) in stocks | 1,065,716 | (347,269 | ) |
Decrease/(increase) in trade and other debtors | 466,268 | (45,946 | ) |
Increase in trade and other creditors | 545,779 | 85,080 |
Cash generated from operations | 9,713,896 | 7,489,632 |
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 31 July 2024 |
31/7/24 | 1/8/23 |
£ | £ |
Cash and cash equivalents | 2,936,959 | 5,785,691 |
Year ended 31 July 2023 |
31/7/23 | 1/8/22 |
£ | £ |
Cash and cash equivalents | 5,785,691 | 6,196,308 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/8/23 | Cash flow | At 31/7/24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 5,785,691 | (2,848,732 | ) | 2,936,959 |
5,785,691 | (2,848,732 | ) | 2,936,959 |
Debt |
Finance leases | (10,942,626 | ) | 2,398,937 | (8,543,689 | ) |
Debts falling due within 1 year | (4,254,502 | ) | (117,159 | ) | (4,371,661 | ) |
Debts falling due after 1 year | (4,045,942 | ) | 248,846 | (3,797,096 | ) |
(19,243,070 | ) | 2,530,624 | (16,712,446 | ) |
Total | (13,457,379 | ) | (318,108 | ) | (13,775,487 | ) |
MELLING PROPERTY HOLDINGS (WIGAN) LTD (REGISTERED NUMBER: 10690668) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 31 July 2024 |
1. | STATUTORY INFORMATION |
Melling Property Holdings (Wigan) Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The group financial statements consolidate the financial statements of Melling Property Holdings (Wigan) Limited and its subsidiary, Melling Commercial Limited for the year ended 31 July 2024 using the merger method of accounting, using accounting policies consistent with those of the parent. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. |
The consolidated financial statements include the results of the activities described in the Report of the Director. |
The company acts as a property management and holding company for its subsidiary Melling Commercial Limited. |
In the company financial statements, investments in subsidiary undertakings are included at cost less any impairment. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
The company has taken advantage of the disclosure exemption under section 7 Statement of Cash Flows for the company Melling Property Holdings (Wigan) Limited only. |
Significant judgements and estimates |
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements are estimates have been made include: |
a) Depreciation |
The useful economic lives of Vehicles on Rental are assessed as being in line with the underlying lease agreement with depreciation being calculated straight line over that period. The residual values of certain |
Vehicles on Rental are assessed on an annual basis based on the latest available information. |
Turnover |
Turnover represents the fair value of income received from the sale and rental of motor vehicles, excluding discounts and value added tax. |
The group recognises revenue from the sales of stock items when the vehicles have been delivered and the title has passed. |
The group recognises revenue from vehicle rentals on a straight line basis over the hire term. |
MELLING PROPERTY HOLDINGS (WIGAN) LTD (REGISTERED NUMBER: 10690668) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 July 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Vehicles on rental | - |
Computer equipment | - |
Tangible fixed assets are stated at cost or valuation, less depreciation and impairment. |
Impairment of assets |
At each reporting date assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the profit and loss. |
Where an impairment loss subsequently reverses, the carrying amount of each asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately. |
Investment property |
Investment property is either stated at cost or professional valuation less any impairment. |
Stocks |
Stocks of motor vehicles for sale are valued at the lower of cost and estimated selling price less costs to sell, after making due allowance for obsolete and slow moving items. |
Financial instruments |
Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost using effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts. |
Short term trade creditors are measured at transaction price. Financial liabilities that have no stated interest rate and are payable within one year shall be measured at the undiscounted amount due. |
Related party loans have no stated interest rate, are payable on demand and are measured at the undiscounted amount due. |
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. |
MELLING PROPERTY HOLDINGS (WIGAN) LTD (REGISTERED NUMBER: 10690668) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 July 2024 |
2. | ACCOUNTING POLICIES - continued |
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. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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 payable under operating leases are charged to the profit or loss on a straight line basis over the term of the lease. |
Short term employee benefits |
Short-term employee benefits are recognised as an expense in the period in which they are incurred. |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 742,846 | 1,092,910 |
Social security costs | 89,244 | 63,931 |
Other pension costs | 39,185 | 211,376 |
871,275 | 1,368,217 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Administration |
2024 | 2023 |
£ | £ |
Director's remuneration | 9,096 | 9,097 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
MELLING PROPERTY HOLDINGS (WIGAN) LTD (REGISTERED NUMBER: 10690668) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 July 2024 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets | 599,628 | 976,353 |
Depreciation - assets on hire purchase contracts | 5,048,152 | 2,929,041 |
Auditors' remuneration | 26,500 | 25,000 |
Foreign exchange differences | 6,000 | (15,913 | ) |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Corporation tax interest | 26 | - |
Hire purchase interest | 1,199,713 | 699,381 |
Other loan interest | 532,844 | 445,775 |
1,732,583 | 1,145,156 |
6. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 101,685 | 127,169 |
Under provision in prior year | 43,256 | (36,239 | ) |
Total current tax | 144,941 | 90,930 |
Deferred tax | (314,041 | ) | 549,521 |
Tax on profit | (169,100 | ) | 640,451 |
MELLING PROPERTY HOLDINGS (WIGAN) LTD (REGISTERED NUMBER: 10690668) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 July 2024 |
6. | TAXATION - continued |
Reconciliation of total tax (credit)/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 | 306,778 | 2,759,356 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 21.005 %) |
76,695 |
579,603 |
Effects of: |
Expenses not deductible for tax purposes | 42,748 | 11,672 |
Income not taxable for tax purposes | (7,661 | ) | (5,807 | ) |
Depreciation in excess of capital allowances | 14,567 | 10,797 |
Adjustments to tax charge in respect of previous periods | 43,256 | (36,239 | ) |
Movement in deferred tax not recognised | (329,783 | ) | (2,796 | ) |
Chargeable gain | 108,385 | 435,274 |
Remeasurement of Deferred tax | - | 33,700 |
Fixed asset differences | - | 8,669 |
Other tax adjustments, reliefs and transfers | (117,307 | ) | (394,422 | ) |
Total tax (credit)/charge | (169,100 | ) | 640,451 |
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 |
£ | £ |
Interim | 228,793 | 296,000 |
MELLING PROPERTY HOLDINGS (WIGAN) LTD (REGISTERED NUMBER: 10690668) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 July 2024 |
9. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1 August 2023 | 2,020,948 | 178,492 | 40,697 |
Additions | - | 67,617 | 3,999 |
Disposals | - | - | - |
At 31 July 2024 | 2,020,948 | 246,109 | 44,696 |
DEPRECIATION |
At 1 August 2023 | 100,252 | 33,670 | 27,030 |
Charge for year | 40,419 | 19,872 | 3,400 |
Eliminated on disposal | - | - | - |
At 31 July 2024 | 140,671 | 53,542 | 30,430 |
NET BOOK VALUE |
At 31 July 2024 | 1,880,277 | 192,567 | 14,266 |
At 31 July 2023 | 1,920,696 | 144,822 | 13,667 |
Fixtures |
and | Vehicles | Computer |
fittings | on rental | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 August 2023 | 305,323 | 23,952,683 | 66,179 | 26,564,322 |
Additions | 20,104 | 17,619,495 | 5,335 | 17,716,550 |
Disposals | - | (14,388,472 | ) | - | (14,388,472 | ) |
At 31 July 2024 | 325,427 | 27,183,706 | 71,514 | 29,892,400 |
DEPRECIATION |
At 1 August 2023 | 138,731 | 2,770,777 | 43,180 | 3,113,640 |
Charge for year | 22,532 | 5,556,006 | 5,551 | 5,647,780 |
Eliminated on disposal | - | (3,268,257 | ) | - | (3,268,257 | ) |
At 31 July 2024 | 161,263 | 5,058,526 | 48,731 | 5,493,163 |
NET BOOK VALUE |
At 31 July 2024 | 164,164 | 22,125,180 | 22,783 | 24,399,237 |
At 31 July 2023 | 166,592 | 21,181,906 | 22,999 | 23,450,682 |
The net book value of assets held under finance amounts to £19,724,591 (2023 - £12,078,161). |
MELLING PROPERTY HOLDINGS (WIGAN) LTD (REGISTERED NUMBER: 10690668) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 July 2024 |
9. | TANGIBLE FIXED ASSETS - continued |
Company |
Improvements | Fixtures |
Freehold | to | and |
property | property | fittings | Totals |
£ | £ | £ | £ |
COST |
At 1 August 2023 |
and 31 July 2024 |
DEPRECIATION |
At 1 August 2023 |
Charge for year |
At 31 July 2024 |
NET BOOK VALUE |
At 31 July 2024 |
At 31 July 2023 |
10. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 August 2023 |
and 31 July 2024 |
NET BOOK VALUE |
At 31 July 2024 |
At 31 July 2023 |
Subsidiary |
Principal activity |
% Holding |
Direct/ indirect Holding |
Melling Commercial Limited |
Sale and lease of motor vehicles, including contract hire and rentals |
100 |
Direct |
MELLING PROPERTY HOLDINGS (WIGAN) LTD (REGISTERED NUMBER: 10690668) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 July 2024 |
11. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 August 2023 |
and 31 July 2024 | 225,000 |
NET BOOK VALUE |
At 31 July 2024 | 225,000 |
At 31 July 2023 | 225,000 |
Company |
Total |
£ |
FAIR VALUE |
At 1 August 2023 |
and 31 July 2024 |
NET BOOK VALUE |
At 31 July 2024 |
At 31 July 2023 |
In the opinion of the director, the fair value of the company's/Group's investment property at 31 July 2024 is not materially different from the net book value as stated in the these financial statements. |
Fair value at 31 July 2024 is represented by: |
£ |
Valuation in 2024 | 12,138 |
Cost | 212,862 |
225,000 |
12. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Stocks | 109,469 | 1,175,185 |
MELLING PROPERTY HOLDINGS (WIGAN) LTD (REGISTERED NUMBER: 10690668) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 July 2024 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 1,118,599 | 1,440,125 |
Other debtors | 243,909 | 324,118 |
Director's current account | 1,285,783 | - | 1,260,751 | - |
Tax | 425,503 | - |
Prepayments | 13,984 | 78,517 |
3,087,778 | 1,842,760 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Other loans (see note 16) | 4,371,661 | 4,254,502 |
Hire purchase contracts (see note 17) | 5,904,121 | 7,209,356 |
Trade creditors | 340,962 | 387,116 |
Amounts owed to group undertakings | - | - |
Tax | 527,188 | 195,537 |
Social security and other taxes | 641,441 | 20,045 |
VAT | - | - | 7,618 | 3,083 |
Other creditors | 521,098 | 511,209 |
Director's current account | - | 725 | - | - |
Deferred income | 198,980 | 214,034 |
Accrued expenses | 337,826 | 362,124 |
12,843,277 | 13,154,648 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Other loans (see note 16) | 3,797,096 | 4,045,942 |
Hire purchase contracts (see note 17) | 2,639,568 | 3,733,270 |
6,436,664 | 7,779,212 |
MELLING PROPERTY HOLDINGS (WIGAN) LTD (REGISTERED NUMBER: 10690668) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 July 2024 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on | demand: |
Other loans | 4,371,661 | 4,254,502 |
Amounts falling due between one and two | years: |
Other loans | 3,797,096 | 4,045,942 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 5,904,121 | 7,209,356 |
Between one and five years | 2,639,568 | 3,733,270 |
8,543,689 | 10,942,626 |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 357,010 | 453,240 |
Between one and five years | 465,924 | 393,750 |
822,934 | 846,990 |
The company has a lease fleet rental facility of up to £23.75m. |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Other loans | 8,168,757 | 8,300,444 |
Hire purchase contracts | 8,543,689 | 10,942,626 |
16,712,446 | 19,243,070 |
Hire Purchase and other loan liabilities are secured by a fixed charge over the asset concerned together with a debenture over the assets of the group. |
MELLING PROPERTY HOLDINGS (WIGAN) LTD (REGISTERED NUMBER: 10690668) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 July 2024 |
19. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax | 2,189,581 | 2,503,622 | - | 3,035 |
Group |
Deferred |
tax |
£ |
Balance at 1 August 2023 | 2,503,622 |
Credit to Statement of Comprehensive Income during year | (314,041 | ) |
Balance at 31 July 2024 | 2,189,581 |
Company |
Deferred |
tax |
£ |
Balance at 1 August 2023 |
Credit to Income Statement during year | ( |
) |
Balance at 31 July 2024 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary A | £1.00 | 100 | 100 |
21. | RESERVES |
Group |
Retained | Revaluation | Merger |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 August 2023 | 7,958,955 | 9,103 | 1,073,678 | 9,041,736 |
Profit for the year | 475,878 | - | - | 475,878 |
Dividends | (228,793 | ) | - | - | (228,793 | ) |
At 31 July 2024 | 8,206,040 | 9,103 | 1,073,678 | 9,288,821 |
MELLING PROPERTY HOLDINGS (WIGAN) LTD (REGISTERED NUMBER: 10690668) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 July 2024 |
21. | RESERVES - continued |
Company |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 August 2023 | 698,976 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 July 2024 | 656,720 |
Retained earnings includes all current and prior retained profits and losses. |
Revaluation reserves are non-distributable and relate to the revaluation gains on investment properties, net of deferred tax. |
22. | DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31 July 2024 and 31 July 2023: |
2024 | 2023 |
£ | £ |
C Melling |
Balance outstanding at start of year | - | - |
Amounts advanced | 1,428,463 | - |
Amounts repaid | (142,680 | ) | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 1,285,783 | - |
Interest is charged at 2.25% on any overdrawn amounts. |
23. | RELATED PARTY DISCLOSURES |
During the year the group paid dividends of £228,793 (2023: £296,000) to the director and his wife, Mrs S Melling. |
24. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is Mr C Melling, by virtue of his majority shareholding. |