IRIS Accounts Production v24.3.2.46 10690668 director 31.7.24 1.8.23 31.7.24 31.7.24 true true false true true false false true false Fair value model Ordinary A 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh106906682023-07-31106906682024-07-31106906682023-08-012024-07-31106906682022-07-31106906682022-08-012023-07-31106906682023-07-3110690668ns15:EnglandWales2023-08-012024-07-3110690668ns14:PoundSterling2023-08-012024-07-3110690668ns10:Director12023-08-012024-07-3110690668ns10:Consolidated2024-07-3110690668ns10:ConsolidatedGroupCompanyAccounts2023-08-012024-07-3110690668ns10:PrivateLimitedCompanyLtd2023-08-012024-07-3110690668ns10:Consolidatedns10:FRS1022023-08-012024-07-3110690668ns10:Consolidatedns10:Audited2023-08-012024-07-3110690668ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-08-012024-07-3110690668ns10:LargeMedium-sizedCompaniesRegimeForAccounts2023-08-012024-07-3110690668ns10:Consolidatedns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-08-012024-07-3110690668ns10:LargeMedium-sizedCompaniesRegimeForAccountsns10:Consolidated2023-08-012024-07-3110690668ns10:FullAccounts2023-08-012024-07-3110690668ns10:OrdinaryShareClass12023-08-012024-07-3110690668ns10:Consolidated2023-08-012024-07-3110690668ns10:RegisteredOffice2023-08-012024-07-3110690668ns10:Consolidated2022-08-012023-07-3110690668ns5:CurrentFinancialInstruments2024-07-3110690668ns5:CurrentFinancialInstruments2023-07-3110690668ns5:ShareCapital2024-07-3110690668ns5:ShareCapital2023-07-3110690668ns5:RevaluationReserve2024-07-3110690668ns5:RevaluationReserve2023-07-3110690668ns5:RetainedEarningsAccumulatedLosses2024-07-3110690668ns5:RetainedEarningsAccumulatedLosses2023-07-3110690668ns5:ShareCapital2022-07-3110690668ns5:RetainedEarningsAccumulatedLosses2022-07-3110690668ns5:RevaluationReserve2022-07-3110690668ns5:RetainedEarningsAccumulatedLosses2022-08-012023-07-3110690668ns5:RevaluationReserve2022-08-012023-07-3110690668ns5:RetainedEarningsAccumulatedLosses2023-08-012024-07-3110690668ns5:RevaluationReserve2023-08-012024-07-3110690668ns5:OwnedOrFreeholdAssetsns5:LandBuildings2023-08-012024-07-3110690668ns5:LeaseholdImprovements2023-08-012024-07-3110690668ns5:PlantMachinery2023-08-012024-07-3110690668ns5:FurnitureFittings2023-08-012024-07-3110690668ns5:MotorVehicles2023-08-012024-07-3110690668ns5:ComputerEquipment2023-08-012024-07-3110690668ns5:LandBuildings2023-07-3110690668ns5:LeaseholdImprovements2023-07-3110690668ns5:FurnitureFittings2023-07-3110690668ns5:LandBuildings2023-08-012024-07-3110690668ns5:LandBuildings2024-07-3110690668ns5:LeaseholdImprovements2024-07-3110690668ns5:FurnitureFittings2024-07-3110690668ns5:LandBuildings2023-07-3110690668ns5:LeaseholdImprovements2023-07-3110690668ns5:FurnitureFittings2023-07-3110690668ns5:CostValuation2023-07-3110690668ns5:CurrentFinancialInstrumentsns5:WithinOneYear2024-07-3110690668ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-07-3110690668ns5:DeferredTaxation2023-07-3110690668ns5:DeferredTaxation2023-08-012024-07-3110690668ns5:DeferredTaxation2024-07-3110690668ns10:OrdinaryShareClass12024-07-3110690668ns5:RetainedEarningsAccumulatedLosses2023-07-3110690668ns5:RevaluationReserve2023-07-31
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: C Melling



REGISTERED OFFICE: Westwood Motor Group
272 Manchester Road
Ince
Wigan
Lancashire
WN2 2ED



REGISTERED NUMBER: 10690668 (England and Wales)



AUDITORS: Fairhurst Audit Services Ltd
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:





C Melling - Director


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
C Melling held office during the whole of the period from 1 August 2023 to the date of this report.

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:





C Melling - Director


27 March 2025

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.




John B S Fairhurst BA(Hons) FCA (Senior Statutory Auditor)
for and on behalf of Fairhurst Audit Services Ltd
Statutory Auditor
Chartered Accountants
Douglas Bank House
Wigan Lane
Wigan
Lancashire
WN1 2TB

27 March 2025

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 475,878 2,118,905

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 2,023,980 2,083,627
Investments 10 100 100
Investment property 11 225,000 225,000
2,249,080 2,308,727

CURRENT ASSETS
Debtors 13 1,686,942 2,368
Cash at bank 7,494 12,567
1,694,436 14,935
CREDITORS
Amounts falling due within one year 14 3,286,696 1,621,551
NET CURRENT LIABILITIES (1,592,260 ) (1,606,616 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

656,820

702,111

PROVISIONS FOR LIABILITIES 19 - 3,035
NET ASSETS 656,820 699,076

CAPITAL AND RESERVES
Called up share capital 20 100 100
Revaluation reserve 21 9,103 9,103
Retained earnings 21 647,617 689,873
SHAREHOLDERS' FUNDS 656,820 699,076

Company's profit for the financial year 186,537 313,362

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)

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 100 681,614 - 681,714

Changes in equity
Dividends - (296,000 ) - (296,000 )
Total comprehensive income - 304,259 9,103 313,362
Balance at 31 July 2023 100 689,873 9,103 699,076

Changes in equity
Dividends - (228,793 ) - (228,793 )
Total comprehensive income - 186,537 - 186,537
Balance at 31 July 2024 100 647,617 9,103 656,820

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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - 2% on cost
Improvements to property - 10% on cost
Plant and machinery - 20% on reducing balance
Fixtures and fittings - 15% on reducing balance
Vehicles on rental - 33% on cost and over the remaining term of the lease
Computer equipment - 20% on reducing balance

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 30 25

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 2,020,948 178,492 30,525 2,229,965
DEPRECIATION
At 1 August 2023 100,252 33,670 12,416 146,338
Charge for year 40,419 17,849 1,379 59,647
At 31 July 2024 140,671 51,519 13,795 205,985
NET BOOK VALUE
At 31 July 2024 1,880,277 126,973 16,730 2,023,980
At 31 July 2023 1,920,696 144,822 18,109 2,083,627

10. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 August 2023
and 31 July 2024 100
NET BOOK VALUE
At 31 July 2024 100
At 31 July 2023 100



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 225,000
NET BOOK VALUE
At 31 July 2024 225,000
At 31 July 2023 225,000

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 - 425,503 -
Prepayments 13,984 78,517 688 2,368
3,087,778 1,842,760 1,686,942 2,368

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 1,474 105
Amounts owed to group undertakings - - 2,841,977 1,607,567
Tax 527,188 195,537 428,840 5,798
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 6,787 4,998
12,843,277 13,154,648 3,286,696 1,621,551

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 3,035
Credit to Income Statement during year (3,035 )
Balance at 31 July 2024 -

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
100 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 689,873 9,103 698,976
Profit for the year 186,537 186,537
Dividends (228,793 ) (228,793 )
At 31 July 2024 647,617 9,103 656,720

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.