Company registration number 15114285 (England and Wales)
MAPH UTILITIES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024
MAPH UTILITIES LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Profit and loss account
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 36
MAPH UTILITIES LIMITED
COMPANY INFORMATION
Directors
Mr J Lawton
Mr C Wood
Company number
15114285
Registered office
Riverside House
Kings Reach Business Park
Yew Street
Stockport
Cheshire
SK4 2HD
Auditor
Xeinadin Audit Limited
Riverside House, Kings Reach Business Park
Yew Street
Stockport
Cheshire
United Kingdom
SK4 2HD
MAPH UTILITIES LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 AUGUST 2024
- 1 -

The directors present the strategic report for the period ended 31 August 2024.

Business Review

The business has a long standing history within the utilities sector across the UK prior to the group structure formed in September 2023. The 11 month turnover of £20.9m is as a result of continued and sustained growth over the last 5 years.

The two brands of the business have very distinct focus: Caecillian Utilities delivers on commercial contracts specialising in the gas, water and waste water; whilst Caecillian Energy focuses on meeting the needs of our domestic and smaller business customers.

Since the management buyout (MBO) in September 2023, there have been a number of improvements to align the back office functions with the growing business. This has resulted in the set-up of the internal Finance department to process all financial data and analysis, a Plant and Fleet department to review compliance in this area centrally and the Commercial team was expanded to ensure tight controls. Additionally, there have been structure changes to solidify the Senior Management Team, bringing accountability and authority across the key areas of the business.

The directors monitor gross profit margins from continuing activities, as a key performance indicator, with current year of 20.1% principally as a result of increased back office controls. Throughout 2024, the cost of certain machinery has increased as a result of increased inflation, leading to some suppliers increasing their prices. The group was able to widened its supplier base to counteract this, and implement efficiencies on materials to improve gross margin above earlier years, something to expand on in future years as we capitalise on our economies of scale.

There is minimal bad debt, resulting with no bad debt provision being in place. As a substitute, it is standard industry practice for customers to retain a percentage of income. These retentions are reflected as an asset on the balance sheet; they are capped, timebound and reviewed periodically by the commercial team.

The directors have no concern over liquidity. The group is in a good cash position and aside from trade creditors and tax, the only significant debt is the loan for the MBO in September 2023 and the subsequent deferred consideration for the previous owners.

MAPH UTILITIES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 2 -
Principal Risks and Uncertainties

The group faces a number of business risks and uncertainties due to forthcoming commercial contracts and competition from similar providers. In view of this, the directors are looking carefully at both existing and potential new markets. In particular, this table sets out the key risks that have been identified, with the group’s approach to mitigating those risks.

Risk

Impact on the group

 

Mitigation

Macroeconomic uncertainty in UK

At present, there is an increased level of macroeconomic uncertainty, including low growth, increasing cost and wage inflation. This is starting to impact the terms of any new commercial contracts, risk of lower payment terms with suppliers and a rise in our own operational costs particularly in relation to our supply chain.

 

We are actively monitoring the situation and have contingency measures in place to manage these risks. These include reviewing the supplier base and working with those suppliers to build relationships and obtain the best possible prices and terms.
The annual budget ensured that there was minimal unforeseen impact from the statutory wage increases.

 

Diversification risk

The group has minimal diversification of services at present. As we look to expand the private work, to include more domestic and smaller business customers, the risk of non payment will increase.

 

The group is looking to introduce enhanced credit review processes to mitigate the risk of non-payment. The directors are taking a cautious approach to expansion into unknown markets, preferring to concentrate on expanding our core services to more domestic customers.

 

Labour market

The group relies heavily on sub-contractors, and whilst we do have a loyal and hard working core team, attracting similar workforce for an expanding business can prove difficult.

 

 

The management restructure has enabled the business to maintain its family feel for each contract, whilst capitalizing on being part of a larger, growing business.

Competition

Whilst new entrants to the industry are low, current competitors are also looking to expand. We have seen recent large contracts awarded to one bigger provider, rather than split into smaller contracts.

 

Caecillian have a mix of tier one and tier two contracts of work, meaning a spread of direct lead service provider and also as an agile sub-contractor. If main contracts do go to larger providers, we have the proven history, internal structure and industry contacts to flex quickly with these changes.
The business maintains a high focus on profitability at a detailed level through the rich financial analysis completed by the internal commercial team, to inform decision making. The directors recently made the decision to withdraw from a high value work program, in favour of a growth area, based on this analysis.

 

Climate risk

The group being in the utilities industry faces increasing challenges associated with environmental and health & safety compliance from national regulators, local government the Transport and Safety Commission.

 

The increased back office functions ensures the devolved responsibility measures are in place at the right level in the business to capture any potential non compliances, and take the necessary corrective action. These are reviewed monthly by the Senior Management Team.

 

MAPH UTILITIES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 3 -
Future Developments

The directors anticipate the business environment will remain competitive. They believe that the group is in a good financial position and that the risks that have been identified are being well managed. With careful focus on contract profitability and appropriate diversification, as well as continuing review of the utilities market and the activities of competitors, the directors are confident in the company's ability to maintain and build on this position with realistic growth expectations.

Financial Instruments

The group has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are conducted wholly in sterling.

Research and Development

The group is not currently undertaking any research and development.

Acquisition of Subsidiaries

On 29 September 2023, the company acquired the entire share capital of Caecillian Limited. The group's results for the period represents the period from that date to 31 August 2024. The subsidiaries trading results are for the year ended 31 August 2024.

On behalf of the board

Mr J Lawton
Director
31 March 2025
MAPH UTILITIES LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 AUGUST 2024
- 4 -

The directors present their annual report and financial statements for the period ended 31 August 2024.

Principal activities

The principal activity of the parent company is that of a holding company.

 

The principal activity of the subsidiaries continued to be that of the delivery of commercial contracts specialising in gas, water and waste water projects.

Results and dividends

The results for the period are set out on page 10.

Ordinary dividends were paid amounting to £151,200. The directors do not recommend payment of a further dividend.

Directors

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

Mr J Lawton
Mr C Wood
Post reporting date events

Caecillian Energy Limited, a wholly owned subsidiary, ceased trading as of 31 August 2024, and the trade and assets of the company have been transferred internally within the group. Following the period end, the company became dormant.

Auditor

Xeinadin Audit Limited were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr J Lawton
Director
31 March 2025
MAPH UTILITIES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 AUGUST 2024
- 5 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

MAPH UTILITIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MAPH UTILITIES LIMITED
- 6 -
Opinion

We have audited the financial statements of MAPH Utilities Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 August 2024 which comprise the group profit and loss account, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

MAPH UTILITIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MAPH UTILITIES LIMITED
- 7 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

MAPH UTILITIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MAPH UTILITIES LIMITED
- 8 -

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

MAPH UTILITIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MAPH UTILITIES LIMITED
- 9 -
Nichola Coles (FCCA) (Senior Statutory Auditor)
For and on behalf of Xeinadin Audit Limited, Statutory Auditor
Riverside House, Kings Reach Business Park
Yew Street
Stockport
Cheshire
SK4 2HD
United Kingdom
31 March 2025
MAPH UTILITIES LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 AUGUST 2024
- 10 -
11 months
ended
31 August
2024
Notes
£
Turnover
3
20,863,269
Cost of sales
(16,670,666)
Gross profit
4,192,603
Distribution costs
(1,020,708)
Administrative expenses
(2,499,604)
Operating profit
4
672,291
Interest receivable and similar income
8
2,676
Interest payable and similar expenses
9
(348,589)
Profit before taxation
326,378
Tax on profit
10
(278,077)
Profit for the financial period
48,301
Profit for the financial period is all attributable to the owners of the parent company.
MAPH UTILITIES LIMITED
GROUP BALANCE SHEET
AS AT
31 AUGUST 2024
31 August 2024
- 11 -
2024
Notes
£
£
Fixed assets
Goodwill
12
2,882,915
Tangible assets
13
867,458
Investments
14
2
3,750,375
Current assets
Stocks
16
107,250
Debtors
17
2,752,019
Cash at bank and in hand
538,455
3,397,724
Creditors: amounts falling due within one year
18
(3,236,668)
Net current assets
161,056
Total assets less current liabilities
3,911,431
Creditors: amounts falling due after more than one year
19
(3,713,831)
Provisions for liabilities
Deferred tax liability
22
200,499
(200,499)
Net liabilities
(2,899)
Capital and reserves
Called up share capital
24
100,000
Profit and loss reserves
(102,899)
Total equity
(2,899)

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 31 March 2025 and are signed on its behalf by:
31 March 2025
Mr J Lawton
Director
Company registration number 15114285 (England and Wales)
MAPH UTILITIES LIMITED
COMPANY BALANCE SHEET
AS AT 31 AUGUST 2024
31 August 2024
- 12 -
2024
Notes
£
£
Fixed assets
Investments
14
4,285,048
Current assets
-
Creditors: amounts falling due within one year
18
(705,397)
Net current liabilities
(705,397)
Total assets less current liabilities
3,579,651
Creditors: amounts falling due after more than one year
19
(3,479,166)
Net assets
100,485
Capital and reserves
Called up share capital
24
100,000
Profit and loss reserves
485
Total equity
100,485

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £151,685.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 31 March 2025 and are signed on its behalf by:
31 March 2025
Mr J Lawton
Director
Company registration number 15114285 (England and Wales)
MAPH UTILITIES LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 AUGUST 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 29 September 2023
-
0
-
0
-
0
Period ended 31 August 2024:
Profit and total comprehensive income
-
48,301
48,301
Issue of share capital
24
100,000
-
100,000
Dividends
11
-
(151,200)
(151,200)
Balance at 31 August 2024
100,000
(102,899)
(2,899)
MAPH UTILITIES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 AUGUST 2024
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 29 September 2023
-
0
-
0
-
0
Period ended 31 August 2024:
Profit and total comprehensive income
-
151,685
151,685
Issue of share capital
24
100,000
-
100,000
Dividends
11
-
(151,200)
(151,200)
Balance at 31 August 2024
100,000
485
100,485
MAPH UTILITIES LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 AUGUST 2024
- 15 -
2024
Notes
£
£
Cash flows from operating activities
Cash generated from operations
31
1,029,338
Interest paid
(348,589)
Income taxes paid
(425,927)
Net cash inflow from operating activities
254,822
Investing activities
Purchase of subsidiaries
(2,204,412)
Purchase of intangible assets
(185,053)
Purchase of tangible fixed assets
(12,513)
Purchase of investments
4
Interest received
2,676
Net cash used in investing activities
(2,399,298)
Financing activities
Proceeds from issue of shares
100,000
Proceeds from bank loans, net of repayments
2,395,833
Payment of finance leases obligations
338,298
Dividends paid to equity shareholders
(151,200)
Net cash generated from financing activities
2,682,931
Net increase in cash and cash equivalents
538,455
Cash and cash equivalents at beginning of period
-
0
Cash and cash equivalents at end of period
538,455
MAPH UTILITIES LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 AUGUST 2024
- 16 -
2024
Notes
£
£
Cash flows from operating activities
Cash generated from operations
32
1,670,173
Interest paid
(315,758)
Net cash inflow from operating activities
1,354,415
Investing activities
Purchase of subsidiaries
(4,285,048)
Dividends received
586,000
Net cash used in investing activities
(3,699,048)
Financing activities
Proceeds from issue of shares
100,000
Proceeds from bank loans, net of repayments
2,395,833
Dividends paid to equity shareholders
(151,200)
Net cash generated from financing activities
2,344,633
Net increase in cash and cash equivalents
-
Cash and cash equivalents at beginning of period
-
0
Cash and cash equivalents at end of period
-
0
MAPH UTILITIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024
- 17 -
1
Accounting policies
Company information

MAPH Utilities Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Riverside House, Kings Reach Business Park, Yew Street, Stockport, Cheshire, SK4 2HD.

 

The group consists of MAPH Utilities Limited and all of its subsidiaries.

1.1
Reporting period

The company was incorporated on 5 September 2023, therefore the financial statements are drawn up for a period shorter than one year.

1.2
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

 

No profit and loss account is presented for MAPH Utilities Limited, as permitted by section 408 of the Companies Act 2006.

1.3
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

MAPH UTILITIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 18 -
1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company MAPH Utilities Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

Capture Smart Limited, a dormant subsidiary is excluded from consolidation as it's inclusion is not material for the purpose of presenting a true and fair view.

 

All financial statements are made up to 31 August 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.5
Going concern

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

 

In concluding the group is a going concern, the directors have made the following considerations:

 

The directors have reviewed a 2 year cashflow forecast and statement of profit and loss forecast for a period

ending 31st August 2026, which was prepared by management. The results of the forecasts led management to conclude the group could continue to exist for a period of at least 12 months from the date of the audit report.

1.6
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

Further information in relation to revenue recognition is contained within section 1.12 construction contracts.

MAPH UTILITIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 19 -
1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
15% Reducing Balance
Fixtures and fittings
15% Reducing Balance
Motor vehicles
25% Reducing Balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

MAPH UTILITIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 20 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

MAPH UTILITIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 21 -
1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Cost is determined using the average cost (AVCO) method.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

The group issue self billing invoices after the work agreed is complete. The work completed to date is accrued and recognised at the point of the work being carried out. Retentions are recognised in turnover when the work has been carried out in accordance with each contract.

 

The group recognises revenue when:

1.13
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

MAPH UTILITIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 22 -
1.14
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

MAPH UTILITIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 23 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.15
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.16
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

MAPH UTILITIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 24 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.17
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.18
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.19
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

MAPH UTILITIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 25 -
3
Turnover and other revenue
2024
£
Turnover analysed by class of business
Provision of Utility Services
20,863,269
2024
£
Other revenue
Interest income
2,676

Turnover arises from operations within the UK and is all generated through the group's principal activity as stated above.

4
Operating profit
2024
£
Operating profit for the period is stated after charging:
Depreciation of owned tangible fixed assets
157,789
Amortisation of intangible assets
290,936
Operating lease charges
1,358,068
5
Auditor's remuneration
2024
Fees payable to the company's auditor and associates:
£
For audit services
Audit of the financial statements of the group and company
14,000
Audit of the financial statements of the company's subsidiaries
23,500
37,500
6
Employees

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

Group
Company
2024
2024
Number
Number
36
2
MAPH UTILITIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
6
Employees
(Continued)
- 26 -

Their aggregate remuneration comprised:

Group
Company
2024
2024
£
£
Wages and salaries
1,468,977
-
0
Social security costs
165,276
-
Pension costs
32,251
-
0
1,666,504
-
0
7
Directors' remuneration
2024
£
Remuneration for qualifying services
24,869
8
Interest receivable and similar income
2024
£
Interest income
Interest on bank deposits
2,676
2024
Investment income includes the following:
£
Interest on financial assets not measured at fair value through profit or loss
2,676
9
Interest payable and similar expenses
2024
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
322,028
Other finance costs:
Interest on finance leases and hire purchase contracts
26,544
Other interest
17
Total finance costs
348,589
MAPH UTILITIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 27 -
10
Taxation
2024
£
Current tax
UK corporation tax on profits for the current period
252,940
Deferred tax
Origination and reversal of timing differences
25,137
Total tax charge
278,077

The actual charge for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:

2024
£
Profit before taxation
326,378
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00%
81,595
Tax effect of expenses that are not deductible in determining taxable profit
15,967
Tax effect of utilisation of tax losses not previously recognised
(1,084)
Group relief
279
Permanent capital allowances in excess of depreciation
35,275
Amortisation on assets not qualifying for tax allowances
72,734
Deferred tax adjustments in respect of prior years
25,137
Effect of small profit corporation tax rate - Caecillian Energy Limited
(621)
Pre-acquisition profit - Caecillian Limited
49,171
Pre-acquisition loss - Caecillian Energy Limited
(376)
Taxation charge
278,077
11
Dividends
2024
Recognised as distributions to equity holders:
£
Final paid
151,200
MAPH UTILITIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 28 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 29 September 2023
-
0
Additions
3,173,851
At 31 August 2024
3,173,851
Amortisation and impairment
At 29 September 2023
-
0
Amortisation charged for the period
290,936
At 31 August 2024
290,936
Carrying amount
At 31 August 2024
2,882,915
The company had no intangible fixed assets at 31 August 2024.

 

13
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 29 September 2023
-
0
-
0
-
0
-
0
Additions
3,569
8,942
-
0
12,511
Business combinations
934,555
26,639
51,542
1,012,736
At 31 August 2024
938,124
35,581
51,542
1,025,247
Depreciation and impairment
At 29 September 2023
-
0
-
0
-
0
-
0
Depreciation charged in the period
140,183
4,722
12,884
157,789
At 31 August 2024
140,183
4,722
12,884
157,789
Carrying amount
At 31 August 2024
797,941
30,859
38,658
867,458
The company had no tangible fixed assets at 31 August 2024.

Included within the net book value of tangible fixed assets is £480,752 (2023: £565,590) in respect of assets held under hire purchase contracts. Depreciation for the year on these assets was £84,839 (2023: £99,060).

MAPH UTILITIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 29 -
14
Fixed asset investments
Group
Company
2024
2024
Notes
£
£
Investments in subsidiaries
15
2
4,285,048
Movements in fixed asset investments
Group
Shares in subsidiaries
£
Cost or valuation
At 29 September 2023
-
Additions
2
At 31 August 2024
2
Carrying amount
At 31 August 2024
2
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 29 September 2023
-
Additions
4,285,048
At 31 August 2024
4,285,048
Carrying amount
At 31 August 2024
4,285,048
15
Subsidiaries

Details of the company's subsidiaries at 31 August 2024 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
Caecillian Limited
*
Utility Services
Ordinary
100.00
-
Caecillian Energy Limited
*
Utility Services
Ordinary
0
100.00
Capture Smart Limited
*
Dormant
Ordinary
0
100.00

Registered office addresses (all UK unless otherwise indicated):

*
Riverside House, Kings Reach Business Park, Yew Street, Stockport, Cheshire, United Kingdom, SK4 2HD
MAPH UTILITIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 30 -
16
Stocks
Group
Company
2024
2024
£
£
Raw materials and consumables
107,250
-
17
Debtors
Group
Company
2024
2024
Amounts falling due within one year:
£
£
Trade debtors
225,722
-
0
Amounts owed by contract customers
2,121,669
-
0
Corporation tax recoverable
164,535
-
0
Other debtors
9,213
-
0
Prepayments and accrued income
32,827
-
0
2,553,966
-
Amounts falling due after more than one year:
Trade debtors
198,053
-
0
Total debtors
2,752,019
-
18
Creditors: amounts falling due within one year
Group
Company
2024
2024
Notes
£
£
Bank loans
20
416,667
416,667
Obligations under finance leases
21
169,377
-
0
Trade creditors
1,431,723
-
0
Amounts owed to group undertakings
-
0
270,511
Corporation tax payable
252,941
-
0
Other taxation and social security
218,301
-
Other creditors
207,971
-
0
Accruals and deferred income
539,688
18,219
3,236,668
705,397
MAPH UTILITIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 31 -
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2024
Notes
£
£
Bank loans and overdrafts
20
1,979,166
1,979,166
Obligations under finance leases
21
168,921
-
0
Other creditors
1,565,744
1,500,000
3,713,831
3,479,166
20
Loans and overdrafts
Group
Company
2024
2024
£
£
Bank loans
2,395,833
2,395,833
Payable within one year
416,667
416,667
Payable between one to two years
416,667
416,667
Payable between two to five years
1,562,499
1,562,499
Payable after more than five years
-
-

The company has a long-term bank loan that bears interest at a rate of 8.5% plus the central bank floating rate. The loan is repayable in quarterly instalments and a final payment (the remaining principal balance) is due at the loan’s maturity. Interest is charged monthly and immediately expensed. The long-term loan is secured by fixed and floating charges over the property and assets of the company.

21
Finance lease obligations
Group
Company
2024
2024
£
£
Future minimum lease payments due under finance leases:
Within one year
169,377
-
0
In two to five years
168,921
-
0
338,298
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term remaining is 1.7 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

MAPH UTILITIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 32 -
22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
2024
Group
£
Accelerated capital allowances
200,499
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the period:
£
£
Asset at 29 September 2023
-
-
Charge to profit or loss
200,499
-
Liability at 31 August 2024
200,499
-

Deferred tax is expected to reverse in the subsequent periods as accelerated capital allowances reduce.

23
Retirement benefit schemes
2024
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
32,251

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
Group and company
2024
2024
Ordinary share capital
Number
£
Issued and fully paid
Ordinary Shares of £1 each
100,000
100,000
MAPH UTILITIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 33 -
25
Acquisition of a business

On 29 September 2023 the group acquired 100 percent of the issued capital of Caecillian Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
1,012,736
-
1,012,736
Investments
4
-
4
Inventories
96,774
-
96,774
Trade and other receivables
2,278,952
-
2,278,952
Cash and cash equivalents
395,588
-
395,588
Trade and other payables
(2,236,097)
-
(2,236,097)
Tax liabilities
(260,400)
-
(260,400)
Deferred tax
(176,355)
-
(176,355)
Total identifiable net assets
1,111,202
-
1,111,202
Goodwill
3,173,846
Total consideration
4,285,048
The consideration was satisfied by:
£
Cash
2,600,000
Deferred consideration
1,500,000
Acquisition costs
185,048
4,285,048
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
20,863,268
Profit after tax
773,552
MAPH UTILITIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 34 -
26
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2024
£
£
Within one year
77,334
-
Between two and five years
8,299
-
85,633
-

The amount charged to the profit and loss in the year in respect of operating leases was £80,513.

27
Events after the reporting date

Caecillian Energy Limited, a wholly owned subsidiary, ceased trading as of 31 August 2024, and the trade and assets of the company have been transferred internally within the group. Following the period end, the company became dormant.

28
Related party transactions

The group has taken advantage of the exemption allowed by Financial Reporting Standard 102, "Related part disclosures" Section 33.1A not to disclose details of related party transactions with entities that are 100% owned members of the same group. There are no other related party transactions other than as disclosed.

29
Directors' transactions

Dividends totalling £151,200 were paid in the year in respect of shares held by the company's directors.

30
Controlling party

At the balance sheet date, in the opinion of the directors there is no ultimate controlling party as no shareholder holds an overall majority.

MAPH UTILITIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 35 -
31
Cash generated from/(absorbed by) group operations
2024
£
Profit for the period after tax
48,301
Adjustments for:
Taxation charged
278,077
Finance costs
348,589
Investment income
(2,676)
Amortisation and impairment of intangible assets
290,936
Depreciation and impairment of tangible fixed assets
157,789
Deferred consideration for purchase of subsidiaries
(1,500,000)
Movements in working capital:
Increase in stocks
(10,476)
Increase in debtors
(308,532)
Increase in creditors
1,727,330
Cash generated from/(absorbed by) operations
1,029,338
32
Cash generated from operations - company
2024
£
Profit after taxation
151,685
Adjustments for:
Finance costs
315,758
Investment income
(586,000)
Movements in working capital:
Increase in creditors
1,788,730
Cash generated from operations
1,670,173
33
Analysis of changes in net debt - group
29 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
-
538,455
538,455
Borrowings excluding overdrafts
-
(2,395,833)
(2,395,833)
Obligations under finance leases
-
(338,298)
(338,298)
-
(2,195,676)
(2,195,676)
MAPH UTILITIES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 36 -
34
Analysis of changes in net debt - company
29 September 2023
Cash flows
31 August 2024
£
£
£
Borrowings excluding overdrafts
-
(2,395,833)
(2,395,833)
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