Company registration number 01940659 (England and Wales)
MARREN MICROWAVE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
MARREN MICROWAVE LIMITED
COMPANY INFORMATION
Directors
I S Marren
A E Marren
M Skinner
P Jobanputra
K D Needs
Secretary
I S Marren
Company number
01940659
Registered office
40 Mallard Close
Earls Barton
Northamptonshire
NN6 0JF
Auditor
Moore
Oakley House
Headway Business Park
3 Saxon Way West
Corby
Northamptonshire
NN18 9EZ
MARREN MICROWAVE LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of income and retained earnings
9
Balance sheet
10
Statement of cash flows
12
Notes to the financial statements
13 - 24
MARREN MICROWAVE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -

The directors present the strategic report for the year ended 31 October 2024.

Review of the business

Turnover for the year ended 31 October 2024 was £10,296,794 an increase of 7% on last year (2023 £9,568,327). Operating profit was £294,739 (October 2023 £423,822). Net profit before tax for the year was £192,953 a decrease of 37% (2023 was £ 309,627)

 

Company Summary – Goals and achievements.

 

As Marren approaches its 40th year of trading, we take immense pride in our journey from a small operation to a nationwide leader in specialist service and maintenance for foodservice equipment. What started as a modest venture has grown into a trusted name across the UK, setting new standards in expertise, efficiency, and customer support. Our success has been built on a commitment to continuous improvement, investing in our people, technology, and infrastructure to ensure we deliver exceptional service. Reaching this milestone is not just a reflection of our longevity—it represents decades of dedication, innovation, and the trust our customers place in us. Additionally, our fleet of 45 fully equipped vans has been upgraded and optimised, ensuring a 95% first-time fix rate. These achievements highlight Marren’s ongoing commitment to delivering outstanding service, reinforcing why we remain a trusted partner for some of the biggest names in the industry.

Service Excellence and innovation are at the heart of everything we do. We are committed to providing reliable and efficient catering equipment repair services that maximise uptime for our customers, ensuring their businesses run smoothly. Customer satisfaction is our top priority, and we continuously strive to exceed expectations through exceptional service delivery. At the same time, we embrace innovation, always seeking new and improved ways to enhance our services. By staying ahead of industry advancements and leveraging cutting-edge technology, we deliver forward-thinking solutions that adapt to the evolving needs of our customers.

Professionalism, integrity, and accountability are the foundations of our business. We believe that treating all stakeholders—customers, partners, and employees—with respect and honesty is key to building lasting relationships and maintaining our strong industry reputation. We adhere strictly to ethical and legal standards, ensuring transparency and trust in everything we do. Our commitment to accountability means we take full responsibility for our actions and outcomes, consistently reviewing our performance metrics to identify areas for improvement. By proactively addressing challenges and refining our processes, we uphold our promise of service excellence, ensuring that our customers always receive the highest level of reliability and professionalism.

Our vision is to be the industry leader in foodservice equipment maintenance, recognised for our specialist technical expertise and reliability. We have built a reputation as the go-to service provider by consistently delivering high-quality solutions tailored to the needs of our customers. Our leadership is driven by a deep understanding of the industry. As customer needs evolve, we continuously expand our service offerings, investing in cutting-edge training, state-of-the-art equipment, and advanced service management systems. Our goal is to provide a comprehensive, nationwide solution that ensures businesses across the UK can rely on us for all their equipment repair and maintenance needs, minimising downtime and maximising efficiency.

Promoting Our Own Brand: Building on this success, we are now actively promoting ScanHeat, another model within our microwave range, targeting an entirely new segment of the industry. Unlike our core foodservice market, ScanHeat is making waves in the vending sector, where its durability, efficiency, and ease of use is a perfect fit. To drive awareness and adoption, we have been showcasing ScanHeat at industry exhibitions, positioning it as a game-changer for businesses that require reliable, high-performance microwaves with scanner technology. Our strong industry connections have played a crucial role in opening doors, allowing us to pursue exciting opportunities in the NHS and even in international markets like Norway, where demand for innovative vending solutions is growing.

 

 

MARREN MICROWAVE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
Principal risks and uncertainties

 

Changes in Import and Export Regulations: Changes in import and export regulations can significantly impact the supply chain, affecting the availability of essential equipment and spare parts. Such disruptions can lead to delays in service delivery and increased operational costs, posing challenges for both Marren and our customers. To mitigate these risks, we closely monitor global regulatory updates and industry developments through trusted sources like the Institute of Export and International Trade and McKinsey Insights. By staying ahead of potential changes, we can proactively adapt our sourcing strategies. Additionally, we maintain strong relationships with key suppliers and continuously explore alternative sourcing options to ensure continuity in our supply chain. This proactive approach allows us to minimise delays, control costs, and continue delivering the reliable service our customers expect.

Fluctuations in the Economy: Economic fluctuations, including recessions and inflationary pressures, can have a direct impact on customer spending patterns and overall business activity, influencing the demand for our services and affecting revenue streams. To navigate these challenges, we closely monitor key economic indicators such as GDP, CPI, and PPI, allowing us to stay informed about market conditions and adjust our pricing strategies and service offerings accordingly. By remaining agile and responsive, we can ensure that our services remain competitive and accessible even in fluctuating economic climates. Additionally, we prioritise strong customer relationships and offer flexible payment options, helping businesses manage costs while ensuring continued access to our expertise. This proactive approach allows us to maintain stability and long-term growth, regardless of broader economic uncertainties.

Currency Exchange Rates & Tariffs: Fluctuations in exchange rates can significantly impact the cost of imported parts and equipment, directly affecting our profitability and pricing stability. Volatile currency movements can lead to unexpected cost increases, making it essential to manage these risks effectively. To mitigate this, we regularly monitor exchange rates using financial news platforms and currency converters, allowing us to anticipate and respond to market shifts. Additionally, we employ hedging strategies and forward contracts, helping to stabilise costs and minimise the impact of adverse currency fluctuations on our bottom line. Furthermore, with the new tariffs implemented by the USA, we are closely monitoring potential repercussions, as this may directly affect the cost of spare parts due to their sourcing from China. These additional costs could have a ripple effect on global supply chains, influencing pricing and availability. By staying informed and adaptable, we ensure that our pricing structure remains competitive while maintaining our commitment to affordable, high-quality service for our customers.

Customer Behaviour and Sustainability: As customer preferences shift towards sustainability and cost-conscious solutions, we must continually adapt our service offerings to stay ahead. Failing to meet these expectations could result in lost business and reduced market share. To address this, we have strengthened our commitment to sustainability by introducing environmentally friendly solutions, including our proprietary line of microwaves. A key advantage of our microwaves is their low cost of repair, which extends their lifespan and reduces unnecessary waste, reinforcing our sustainability efforts. Additionally, we invest in staff training initiatives and implement robust sustainability frameworks, ensuring we remain at the forefront of industry advancements.

Recruitment Challenges: Recruitment remains a challenge across the industry, but at Marren, we are proactively addressing this by promoting apprenticeships and working closely with industry associations to attract and develop new talent. We recognise the importance of investing in the next generation of engineers and service professionals, ensuring that we continue to provide high-quality expertise to our customers. Despite ongoing recruitment challenges, we see significant potential for growth and remain committed to scaling our business further by expanding our workforce. Through structured training programs, industry partnerships, and career development opportunities, we aim to bridge the skills gap and secure a strong future for both Marren and the wider foodservice equipment sector.

More Positives Within the Organisation: Our strategic approach to microwave manufacturing has yielded impressive results, particularly with the ISM-1800 Microwave model, which has gained significant acclaim and adoption among major industry players. This success highlights our commitment to delivering high-quality, customer-centric solutions that meet the evolving needs of the foodservice sector. In addition to the ISM-1800, our ScanHeat microwave has also garnered attention, with the market now fully recognising the growing demand for 24/7 hot food and unattended retail solutions. While not our newest release, ScanHeat is proving to be an increasingly vital product as businesses adapt to new consumer trends. Our ongoing collaboration with the manufacturer to enhance product features further reinforces our dedication to innovation. This proactive approach to both product development and market expansion ensures that Marren is well-positioned for sustained growth and market leadership in the microwave and unattended retail segments.

MARREN MICROWAVE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
Industry Recognition is a testament to our unwavering commitment to service excellence and innovation. Winning the Service and Maintenance Provider of the Year award at the 2024 Catering Insight Awards marks our nearly five-year streak, with only one year in between, further demonstrating our dedication to consistently delivering exceptional service and exceeding customer expectations. These accolades not only bolster our reputation but also affirm our position as a trusted partner in the foodservice sector. Through meticulous risk management and seizing emerging opportunities, we remain focused on sustainable growth and customer satisfaction. The continued recognition we receive—voted by our customers—is a direct reflection of our efforts.
Key performance indicators

The director has monitored the progress of overall company strategy and the individual strategic

elements by reference to certain key performance indicators:

- Turnover for the year amounted to £10,296,794 (2023 £9,568,327)

- Operating profit for the year was £294,739 (2023 £423,822)

- EBITDA for the year was a profit of £664,250 (2023 £843,349)

On behalf of the board

I S Marren
Director
15 May 2025
MARREN MICROWAVE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -

The directors present their annual report and financial statements for the year ended 31 October 2024.

Principal activities

The principal activity of the company is the supply and maintenance of commercial microwave ovens.

 

There has not been any significant change in this activity during the year.

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:

I S Marren
A E Marren
M Skinner
P Jobanputra
K D Needs
Auditor

The auditor, Moore, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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
I S Marren
Director
15 May 2025
MARREN MICROWAVE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 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 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.

MARREN MICROWAVE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MARREN MICROWAVE LIMITED
- 6 -
Opinion

We have audited the financial statements of Marren Microwave Limited (the 'company') for the year ended 31 October 2024 which comprise the statement of income and retained earnings, the balance sheet, the 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 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 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:

MARREN MICROWAVE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MARREN MICROWAVE LIMITED (CONTINUED)
- 7 -
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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

 

Our approach was as follows:

 

 

 

 

 

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

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.

Amanda Etty (Senior Statutory Auditor)
For and on behalf of Moore
Chartered Accountants
Statutory Auditor
Oakley House
Headway Business Park
3 Saxon Way West
Corby
Northamptonshire
NN18 9EZ
15 May 2025
MARREN MICROWAVE LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
2
10,296,794
9,568,327
Cost of sales
(4,617,501)
(4,011,377)
Gross profit
5,679,293
5,556,950
Distribution costs
(366,267)
(273,993)
Administrative expenses
(5,018,287)
(4,859,135)
Operating profit
3
294,739
423,822
Interest receivable and similar income
6
1,910
1,909
Interest payable and similar expenses
7
(103,696)
(116,104)
Profit before taxation
192,953
309,627
Tax on profit
8
(27,366)
(84,660)
Profit for the financial year
165,587
224,967
Retained earnings brought forward
2,184,716
1,959,749
Retained earnings carried forward
2,350,303
2,184,716

The profit and loss account has been prepared on the basis that all operations are continuing operations.

MARREN MICROWAVE LIMITED
BALANCE SHEET
AS AT 31 OCTOBER 2024
31 October 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
2,241,512
2,435,288
Current assets
Stocks
10
1,782,558
1,586,160
Debtors
11
1,593,679
1,586,685
Cash at bank and in hand
485,730
545,935
3,861,967
3,718,780
Creditors: amounts falling due within one year
12
(2,100,849)
(2,179,068)
Net current assets
1,761,118
1,539,712
Total assets less current liabilities
4,002,630
3,975,000
Creditors: amounts falling due after more than one year
13
(1,385,149)
(1,550,471)
Provisions for liabilities
Deferred tax liability
16
257,178
229,813
(257,178)
(229,813)
Net assets
2,360,303
2,194,716
Capital and reserves
Called up share capital
18
10,000
10,000
Profit and loss reserves
2,350,303
2,184,716
Total equity
2,360,303
2,194,716

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 15 May 2025 and are signed on its behalf by:
I S Marren
Director
Company registration number 01940659 (England and Wales)
MARREN MICROWAVE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 November 2022
10,000
1,959,749
1,969,749
Year ended 31 October 2023:
Profit and total comprehensive income
-
224,967
224,967
Balance at 31 October 2023
10,000
2,184,716
2,194,716
Year ended 31 October 2024:
Profit and total comprehensive income
-
165,587
165,587
Balance at 31 October 2024
10,000
2,350,303
2,360,303
MARREN MICROWAVE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
339,916
1,041,312
Interest paid
(103,696)
(116,104)
Income taxes paid
-
0
(14,003)
Net cash inflow from operating activities
236,220
911,205
Investing activities
Purchase of tangible fixed assets
(223,062)
(620,468)
Proceeds from disposal of tangible fixed assets
36,617
78,765
Interest received
1,910
1,909
Net cash used in investing activities
(184,535)
(539,794)
Financing activities
Movement of borrowings
(157,993)
(263,482)
Movement of bank loans
213,176
(33,617)
Payment of finance leases obligations
(167,073)
(78,374)
Net cash used in financing activities
(111,890)
(375,473)
Net decrease in cash and cash equivalents
(60,205)
(4,062)
Cash and cash equivalents at beginning of year
545,935
549,997
Cash and cash equivalents at end of year
485,730
545,935
MARREN MICROWAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 13 -
1
Accounting policies
Company information

Marren Microwave Limited is a private company limited by shares incorporated in England and Wales. The registered office is 40 Mallard Close, Earls Barton, Northamptonshire, NN6 0JF.

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.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

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.

The company recognises revenue from the following major sources:

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Sale of ovens

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.

Servicing of products

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 are recoverable.

1.4
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.

MARREN MICROWAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 14 -

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:

Freehold property
2% per annum on cost
Integral features
10% per annum reducing balance
Fixtures and fittings
10% - 25% per annum straight line
Motor vehicles
25% - 30% per annum 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 credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

1.6
Stocks

Stocks are stated at the lower of cost (on a first in, first out basis) and estimated selling price less costs to complete and sell. Cost comprises direct materials.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and 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.

1.7
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.

MARREN MICROWAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 15 -
1.8
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 balance sheet 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.

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.

MARREN MICROWAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 16 -
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 or are discharged or cancelled.

1.9
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.

1.10
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.

1.11
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

MARREN MICROWAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 17 -
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 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.

1.12
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.

1.13
Retirement benefits

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

1.14
Leases
As lessee

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 leases asset are consumed.

1.15
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 profit or loss.

MARREN MICROWAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 18 -
2
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
UK Sales
10,296,794
9,568,327
2024
2023
£
£
Other revenue
Interest income
1,910
1,909
3
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(5,690)
(13,379)
Fees payable to the company's auditor for the audit of the company's financial statements
16,136
9,695
Depreciation of owned tangible fixed assets
369,511
419,527
Loss/(profit) on disposal of tangible fixed assets
10,709
(28,637)
Operating lease charges
21,855
16,562
4
Employees

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

2024
2023
Number
Number
Directors
5
5
Direct
39
40
Admin, sales and other
30
28
Total
74
73

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,045,632
3,015,680
Social security costs
342,905
331,594
Pension costs
141,055
100,738
3,529,592
3,448,012
MARREN MICROWAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 19 -
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
741,475
831,323
Company pension contributions to defined contribution schemes
91,869
52,929
833,344
884,252
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
232,079
217,188
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
1,910
1,909
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
1,910
1,909
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
60,866
38,591
Interest on invoice finance arrangements
-
0
34,000
60,866
72,591
Other finance costs:
Interest on finance leases and hire purchase contracts
42,830
43,513
103,696
116,104
8
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
27,366
84,660
MARREN MICROWAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
8
Taxation
(Continued)
- 20 -

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

2024
2023
£
£
Profit before taxation
192,953
309,627
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
48,238
77,407
Tax effect of expenses that are not deductible in determining taxable profit
1,785
190
Effect of change in corporation tax rate
(29,104)
28,845
Depreciation on assets not qualifying for tax allowances
6,814
6,145
Other permanent differences
(367)
(2,252)
Super deduction capital allowances
-
0
(25,675)
Taxation charge for the year
27,366
84,660
9
Tangible fixed assets
Freehold property
Integral features
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 November 2023
1,270,192
168,770
792,987
1,364,216
3,596,165
Additions
-
0
13,405
86,950
122,706
223,061
Disposals
-
0
(1,794)
-
0
(121,781)
(123,575)
At 31 October 2024
1,270,192
180,381
879,937
1,365,141
3,695,651
Depreciation and impairment
At 1 November 2023
154,540
5,914
554,867
445,556
1,160,877
Depreciation charged in the year
25,404
3,069
69,604
271,434
369,511
Eliminated in respect of disposals
-
0
(42)
-
0
(76,207)
(76,249)
At 31 October 2024
179,944
8,941
624,471
640,783
1,454,139
Carrying amount
At 31 October 2024
1,090,248
171,440
255,466
724,358
2,241,512
At 31 October 2023
1,115,652
162,856
238,120
918,660
2,435,288
MARREN MICROWAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 21 -
10
Stocks
2024
2023
£
£
Raw materials and consumables
1,782,558
1,586,160
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,477,091
1,463,081
Other debtors
8,730
4,875
Prepayments and accrued income
107,858
118,729
1,593,679
1,586,685
12
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
14
62,715
25,835
Obligations under finance leases
15
182,706
166,154
Trade creditors
756,829
748,342
Amounts owed to group undertakings
184,308
184,308
Taxation and social security
374,390
337,250
Other creditors
486,859
699,960
Accruals and deferred income
53,042
17,219
2,100,849
2,179,068

Included in other creditors are hire purchase balances of £182,706 (2023 £166,154). These amounts are secured over the assets to which they relate.

 

Of the bank loans held, £62,715 (2023 £25,835) is secured over the company's freehold property.

13
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
14
782,669
606,373
Obligations under finance leases
15
284,816
468,441
Other borrowings
14
317,664
475,657
1,385,149
1,550,471
Creditors which fall due after five years are payable as follows:
Payable by instalments
506,033
479,243
MARREN MICROWAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
13
Creditors: amounts falling due after more than one year
(Continued)
- 22 -

Included in other creditors are hire purchase balances of £284,816 (2023 £468,441). These amounts are secured over the assets to which they relate.

 

Of the bank loans held, £782,669 (2023 606,373) is secured over the company's freehold property.

14
Loans and overdrafts
2024
2023
£
£
Bank loans
845,384
632,208
Other loans
317,664
475,657
1,163,048
1,107,865
Payable within one year
62,715
25,835
Payable after one year
1,100,333
1,082,030

The long-term loans are secured by fixed charges over the property.

15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
182,706
166,154
In two to five years
284,816
468,441
467,522
634,595

Finance lease payments represent rentals payable by the company 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. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

16
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
265,604
321,975
Tax losses
(6,789)
(88,750)
Short term timing differences
(1,637)
(3,412)
257,178
229,813
MARREN MICROWAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
16
Deferred taxation
(Continued)
- 23 -
2024
Movements in the year:
£
Liability at 1 November 2023
229,813
Charge to profit or loss
27,365
Liability at 31 October 2024
257,178

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
141,055
100,738

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.

18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
9,900
9,900
9,900
9,900
'A' Ordinary shares of £1 each
100
100
100
100
10,000
10,000
10,000
10,000
19
Financial commitments, guarantees and contingent liabilities

Total financial commitments which are not included in the balance sheet amount to £621,344 (2023 £114,577).

20
Operating lease commitments

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 1 year
13,332
22,220
MARREN MICROWAVE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 24 -
21
Cash generated from operations
2024
2023
£
£
Profit after taxation
165,587
224,967
Adjustments for:
Taxation charged
27,366
84,660
Finance costs
103,696
116,104
Investment income
(1,910)
(1,909)
Loss/(gain) on disposal of tangible fixed assets
10,709
(28,637)
Depreciation and impairment of tangible fixed assets
369,511
419,527
Movements in working capital:
(Increase)/decrease in stocks
(196,398)
105,729
Increase in debtors
(6,994)
(132,618)
(Decrease)/increase in creditors
(131,651)
253,489
Cash generated from operations
339,916
1,041,312
22
Analysis of changes in net debt
1 November 2023
Cash flows
31 October 2024
£
£
£
Cash at bank and in hand
545,935
(60,205)
485,730
Borrowings excluding overdrafts
(1,107,865)
(55,183)
(1,163,048)
Lease liabilities
(634,595)
167,073
(467,522)
(1,196,525)
51,685
(1,144,840)
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