Company registration number 02787157 (England and Wales)
MAPAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
MAPAL LIMITED
COMPANY INFORMATION
Directors
Mr W E Whitehouse
Dr J Kress
Secretary
Palmerston Secretaries Limited
Company number
02787157
Registered office
Palmerston House
814 Brighton Road
Purley
Surrey
CR8 2BR
Auditor
Turpin Barker Armstrong
Allen House
1 Westmead Road
Sutton
Surrey
SM1 4LA
Bankers
HSBC Bank plc
75 High Street
SUTTON
Surrey
SM1 1DU
MAPAL LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Income statement
9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Notes to the financial statements
13 - 26
MAPAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The Directors present the strategic report for the year ended 31 December 2024.

Review of the business

The business of Mapal Limited continues to grow despite an increasingly difficult competitive market in which the company operates. This has resulted in an increase in turnover to £10.3m from £9.6m in 2023. This steady increase in the markets has allowed the company to continue to stabilise its position.

Mapal Limited is confident that despite the current economic climate, growth will continue. Customer orders have continued to steadily increase regardless of the current economic position.

The current uncertainty regarding the worldwide issue due to the events in Ukraine and the Israel-Hamas war continues to affect the group globally. Issues such as inflation and high interest rates have been a concern alongside rising costs, including high energy prices. As the US look to intervene in potential peace deals which could result in a cease fire in both wars, there is the anticipation that costs and inflation will continue to reduce therefore increasing the income of orders.

As the demand for E mobility continues to increase from the combustion engine the company continue to adapt to the market’s needs.

The Mapal Group continued in 2024 to invest in the future and strive for the organisation to be in line with the changing market. Mapal continued to develop a whole range of product innovations and enhancements as well as dedicated solutions for focus topics. The Global Group also continues to optimise their working capital to increase their liquidity, define and maintain optimal working capital levels and to ensure effective use of resources and stable cashflows. Mapal also continue to invest in their staff by employing and training apprentices, who will eventually provide comprehensive knowledge and innovation.

The gross profit has shown a slight decrease from £4m to £3.9m. The overall gross margin percentage has also decreased from 41.85% to 37.6% as a result of Mapal being part of a very competitive market. The margin varies depending on products & size of the individual projects taken on during the year as in previous years and choice of manufacturing location either domestic or at the competence centres. In addition, the company did suffer a theft of stock resulting in a subsequent insurance claim. Security measures, that were already in place, have been increased still further to ensure there will be less risk of a recurrence.

The administrative expenses have increased by 3.8% which would be expected with the higher turnover. The majority of the increase in administrative expenses relates to wages and salaries, this increase runs in a similar percentage increase to the latest inflation figures. The remaining increase in administrative expenses relates to the property repairs and maintenance due to refurbishment of part of the building. The company have also increased their vehicle leasing which has increased by 107% from 2023 following the continuing policy to not outrightly own company vehicles.

Due to the increase in the pound value to the Euro currency exchange, the company has a gain of £50.1k in relation to foreign exchange (2023: Gain £27k)

The Company's liquidity continues to be good, assisted by the increase in turnover, with a small increase in liquid funds held. The company continue to provide support to the subsidiary company in Northern Ireland to enable them to become a more prominent supplier in the market.

Mapal Limited purchased the company Arinday Limited in 2015. This was the holding company for John Rainey and Son Limited. On the 16th December, a Hive-Up Agreement was set up for the purpose of simplifying the group so that Mapal Limited would directly own John Rainey & Son Limited.

Overall, the results for the year and the financial position at the year end were considered adequate by the directors considering all the previously mentioned mitigating factors.

Due to all the above mentioned points, the directors therefore expect the company to continue to be profitable in the foreseeable future.

 

MAPAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

On behalf of the board

Mr W E Whitehouse
Director
24 April 2025
MAPAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

The Director's present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the Company continued to be that of the manufacture and supply of precision tooling equipment.

Results and dividends

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

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

Directors

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

Mr W E Whitehouse
Dr J Kress
Auditor

In accordance with the company's articles, a resolution proposing that Turpin Barker Armstrong be reappointed as auditor of the company 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 company’s auditor 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 company’s auditor 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 W E Whitehouse
Director
24 April 2025
MAPAL LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

MAPAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MAPAL LIMITED
- 5 -
Opinion

We have audited the financial statements of Mapal Limited (the 'company') for the year ended 31 December 2024 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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 FRS 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the Annual Report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the in the financial statements or a material misstatement of the other information. 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.

MAPAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MAPAL LIMITED
- 6 -

Opinions on other matters prescribed by Companies Act 2006

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

 

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

 

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:

 

Extent to which the audit was considered capable of detecting irregularities, including fraud

 

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

 

MAPAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MAPAL LIMITED
- 7 -

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

 

 

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

 

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and UK tax legislation.

 

Audit response to risks identified

 

Our procedures to respond to risks identified as a result of performing the above included the following:

 

 

 

 

 

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.

 

 

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

 

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

 

 

 

 

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

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.

Mr David Alan Payne BA (Hon) FCA (Senior Statutory Auditor)
For and on behalf of Turpin Barker Armstrong
29 April 2025
Chartered Certified Accountants
Statutory Auditor
Allen House
1 Westmead Road
Sutton
Surrey
SM1 4LA
MAPAL LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
10,369,381
9,609,918
Cost of sales
(6,467,195)
(5,588,355)
Gross profit
3,902,186
4,021,563
Administrative expenses
(4,143,509)
(3,993,472)
Other operating income
100,354
6,026
Operating (loss)/profit
4
(140,969)
34,117
Interest receivable and similar income
7
288,138
101,113
Interest payable and similar expenses
8
(283)
(206)
Amounts written off investments
9
(163,313)
-
(Loss)/profit before taxation
(16,427)
135,024
Tax on (loss)/profit
10
175,376
69
Profit for the financial year
158,949
135,093

The income statement has been prepared on the basis that all operations are continuing operations.

MAPAL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
£
£
Profit for the year
158,949
135,093
Other comprehensive income
-
-
Total comprehensive income for the year
158,949
135,093
MAPAL LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
258,727
-
0
Tangible assets
12
1,212,656
1,488,243
Investments
13
163,363
422,090
1,634,746
1,910,333
Current assets
Stocks
15
1,668,363
1,789,158
Debtors falling due after more than one year
16
288,924
277,004
Debtors falling due within one year
16
2,699,863
2,307,993
Cash at bank and in hand
2,473,395
2,348,793
7,130,545
6,722,948
Creditors: amounts falling due within one year
17
(1,379,921)
(1,403,432)
Net current assets
5,750,624
5,319,516
Total assets less current liabilities
7,385,370
7,229,849
Creditors: amounts falling due after more than one year
18
-
0
(3,428)
Net assets
7,385,370
7,226,421
Capital and reserves
Called up share capital
22
5,000
5,000
Profit and loss reserves
23
7,380,370
7,221,421
Total equity
7,385,370
7,226,421

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 24 April 2025 and are signed on its behalf by:
Mr W E Whitehouse
Director
Company registration number 02787157 (England and Wales)
MAPAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
5,000
7,086,328
7,091,328
Year ended 31 December 2023:
Profit and total comprehensive income
-
135,093
135,093
Balance at 31 December 2023
5,000
7,221,421
7,226,421
Year ended 31 December 2024:
Profit and total comprehensive income
-
158,949
158,949
Balance at 31 December 2024
5,000
7,380,370
7,385,370
MAPAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
1
Accounting policies
Company information

Mapal Limited is a private company limited by shares incorporated in England and Wales. The registered office is Palmerston House, 814 Brighton Road, Purley, Surrey, CR8 2BR.

1.1
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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

The financial statements present information about the Company as separate financial statements and not as UK group consolidated financial statements because the Company qualifies for the exemption from preparing UK group consolidated financial statements under section 401 of the Companies Act 2006. The Company's ultimate controlling party, Mapal Fabrik für Präzisionswerkzeuge Dr. Kress KG, includes the Company in its consolidated financial statements.

 

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards and are available to the public from its registered office, Obere Bahnstrasse 13, D-73431 Aalen, Germany.

1.2
Going concern

Atruet the time of approving the financial statements, the Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. This is despite the effect during the year of the events in Ukraine / Palestine and their effect on the global economy. Thus the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.

MAPAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.3
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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 4 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.

1.5
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:

Land and buildings freehold
Straight line over 40-50 years
Plant and machinery
16.66% straight line
Fixtures, fittings & equipment
16.66% straight line
Computer equipment
16.66% straight line
Motor vehicles
25% straight line

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 credited or charged to profit or loss.

MAPAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

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 Company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

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

1.7
Impairment of fixed assets

At each reporting period end date, the company 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.

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.

1.8
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.

 

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.

MAPAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.9
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.

1.10
Financial instruments

The company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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 company 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.

MAPAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
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 company after deducting all of its liabilities.

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 company's contractual obligations expire, are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the company 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 company.

1.12
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.13
Taxation

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

MAPAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 Company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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 income statement, 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 when the company has 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.

1.14
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.

1.15
Retirement benefits

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

1.16
Leases

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 leases asset are consumed.

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in the profit or loss.

MAPAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Sale of goods
10,369,381
9,609,918
2024
2023
£
£
Turnover analysed by geographical market
Europe (not including Germany)
10,309,800
9,529,561
Germany
22,643
40,590
Asia
21,658
19,840
USA
14,924
19,688
China
356
239
10,369,381
9,609,918
2024
2023
£
£
Other revenue
Interest income
134,329
101,113
Dividends received
153,809
-
4
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(50,168)
(27,725)
Fees payable to the company's auditor for the audit of the company's financial statements
18,126
16,412
Depreciation of owned tangible fixed assets
333,044
494,706
Profit on disposal of tangible fixed assets
(875)
(1,000)
Operating lease charges
87,267
42,141
MAPAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
5
Employees

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

2024
2023
Number
Number
Management and administration
16
16
Production, installation and sales
39
38
Total
55
54

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,076,768
1,937,138
Social security costs
220,103
209,223
Pension costs
199,663
202,103
2,496,534
2,348,464
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
150,470
111,926
Company pension contributions to defined contribution schemes
49,333
91,740
199,803
203,666

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
130,973
96,752
Interest receivable from group companies
2,075
4,361
Other interest income
1,281
-
0
Total interest revenue
134,329
101,113
Income from fixed asset investments
Income from shares in group undertakings
153,809
-
0
Total income
288,138
101,113
MAPAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
206
206
Other interest
77
-
0
283
206
9
Amounts written off investments
2024
2023
£
£
Amounts written off investments held at fair value
(163,313)
-
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
59,564
78,643
Adjustments in respect of prior periods
(193,421)
-
0
Total current tax
(133,857)
78,643
Deferred tax
Origination and reversal of timing differences
(41,519)
(78,712)
Total tax credit
(175,376)
(69)

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

2024
2023
£
£
(Loss)/profit before taxation
(16,427)
135,024
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
(4,107)
31,758
Tax effect of expenses that are not deductible in determining taxable profit
91,911
127,696
Adjustments in respect of prior years
(193,421)
-
0
Permanent capital allowances in excess of depreciation
(28,240)
(80,811)
Other non-reversing timing differences
(41,519)
(78,712)
Taxation credit for the year
(175,376)
(69)
MAPAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
11
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2024
-
0
Transfers
258,727
At 31 December 2024
258,727
Amortisation and impairment
At 1 January 2024 and 31 December 2024
-
0
Carrying amount
At 31 December 2024
258,727
At 31 December 2023
-
0
12
Tangible fixed assets
Land and buildings freehold
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2024
1,367,544
4,694,119
441,915
8,564
195,347
6,707,489
Additions
37,994
16,793
3,345
-
0
-
0
58,132
Disposals
-
0
(2,018)
(15,947)
-
0
(38,873)
(56,838)
At 31 December 2024
1,405,538
4,708,894
429,313
8,564
156,474
6,708,783
Depreciation and impairment
At 1 January 2024
382,274
4,286,660
393,776
6,898
149,638
5,219,246
Depreciation charged in the year
53,572
235,638
22,816
1,428
19,590
333,044
Eliminated in respect of disposals
-
0
(1,457)
(15,833)
-
0
(38,873)
(56,163)
At 31 December 2024
435,846
4,520,841
400,759
8,326
130,355
5,496,127
Carrying amount
At 31 December 2024
969,692
188,053
28,554
238
26,119
1,212,656
At 31 December 2023
985,270
407,459
48,139
1,666
45,709
1,488,243
13
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
14
163,363
422,090
MAPAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
13
Fixed asset investments
(Continued)
- 23 -
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024
422,090
Valuation changes
(258,727)
At 31 December 2024
163,363
Carrying amount
At 31 December 2024
163,363
At 31 December 2023
422,090
14
Subsidiaries

Separate company financial statements are required to be prepared by law. Consolidated financial statements for the Mapal Group are prepared and publicly available.

These financial statements are separate company financial statements for 2024.

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Arinday Limited
United Kingdom
Ordinary Shares
100.00
John Rainey & Son Limited
United Kingdom
Ordinary Shares
100.00

John Rainey & Son Limited was a wholly owned subsidiary of Arinday Limited. Following a hive up of the assets of Arinday Limited into Mapal Limited during the year, John Rainey & Son Limited is now a 100% owned subsidiary of Mapal Limited. This group reorganisation resulted in a dividend payment to Mapal Ltd (note 3), Investment write off (note 9) and Goodwill (note 11),

 

Arinday Limited is a now a non trading subsidiary of Mapal Limited which will be dissolved from the Companies House register in 2025.

15
Stocks
2024
2023
£
£
Work in progress
1,668,363
1,789,158
MAPAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,660,825
1,476,563
Corporation tax recoverable
86,530
-
0
Amounts owed by group undertakings
844,791
724,878
Other debtors
23,717
35,558
Prepayments and accrued income
84,000
70,994
2,699,863
2,307,993
2024
2023
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
235,742
265,341
Deferred tax asset (note 20)
53,182
11,663
288,924
277,004
Total debtors
2,988,787
2,584,997

Included within amounts owed by group undertakings are loans to John Rainey & Son Limited.

The amount due within a year is £29,599 (2023 - £53,919)

The amount due after more than 1 year is £235,742 (2023 - £265,341)

The interest rates are 0.36417% and 8.50% ,

17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
19
3,428
6,856
Trade creditors
139,123
89,739
Amounts owed to group undertakings
687,080
754,795
Corporation tax
-
0
59,766
Other taxation and social security
420,056
349,589
Accruals and deferred income
130,234
142,687
1,379,921
1,403,432
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
19
-
0
3,428
MAPAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
3,428
6,856
In two to five years
-
0
3,428
3,428
10,284

Finance lease payments represent rentals payable by the company under a hire purchase agreement to purchase a vehicle. The agreement includes a purchase option at the end of the lease period, and no restrictions are placed on the use of the assets. The agreement is for 37 months. The leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

20
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Assets
Assets
2024
2023
Balances:
£
£
ACAs
53,182
11,663
2024
Movements in the year:
£
Asset at 1 January 2024
(11,663)
Credit to profit or loss
(41,519)
Asset at 31 December 2024
(53,182)
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
199,663
202,103

The Company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

MAPAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
22
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
5,000 Ordinary shares of £1 each
5,000
5,000
5,000
5,000
23
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
7,221,421
7,086,328
Profit for the year
158,949
135,093
At the end of the year
7,380,370
7,221,421
24
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the company for vehicles.

 

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

2024
2023
£
£
Within one year
48,202
53,653
Between two and five years
70,817
95,719
119,019
149,372
26
Ultimate controlling party

The ultimate parent undertaking is Mapal Fabrik für Präzisionswerkzeuge Dr. Kress KG, organised and existing under the laws of Germany.

 

Mapal Fabrik für Präzisionswerkzeuge Dr. Kress KG prepares group financial statements and copies can be obtained from Obere Bahnstrasse 13, D-73431 Aalen, Germany.

MAPAL LIMITED
MANAGEMENT INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2024
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