Company registration number 03477965 (England and Wales)
MMR HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
MMR HOLDINGS LIMITED
COMPANY INFORMATION
Director
Mr Robert Rees
Secretary
T J M Rees
Company number
03477965
Registered office
Llanelli Gate Business Park
Dafen
Llanelli
Carmarthenshire
SA14 8LQ
Auditor
Harris Bassett Limited
5 New Mill Court
Phoenix Way
Enterprise Park
Swansea
SA7 9FG
Bankers
Lloyds TSB plc
King Street
Carmarthen
HSBC Bank plc
92a Taff Street
Pontypridd
CF37 4SR
NatWest plc
Harlech House
Phoenix Way
Swansea
SA7 9FN
Solicitors
Hugh James
Two Central Square
Cardiff
CF10 1FS
MMR HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Director's responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group statement of financial position
10
Company statement of financial position
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 33
MMR HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -
The director presents the strategic report for the year ended 31 August 2024.
Review of the business
The company acts as the holding company to the MMR group of companies (Databail Limited – provider of agency workers, Securicall UK Limited- provider of static guarding services and secure storage facilities, CSA Site Services Limited- provider of plant and vehicle hire). MMR Holdings derives its main income from storage, serviced offices, commercial accommodation and the provision of management services to the group.
The director is keen that the group further diversifies its income generation and expands its trading operations.
Key financial highlights are as follows:
Year ended Year ended Year ended
2024 2023 2022
£ £ £
Gross profit 2,886,181 2,505,264 2,307,309
Gross profit % 17.73% 21.57% 23.70%
Profit before tax 1,672,717 1,742,861 1,901,831
Net assets 10,606,197 9,695,379 8,642,033
Principal risks and uncertainties
Following the country's decision to leave the European Union restrictions on the mobility of labour have had a significant effect on the supply of labour and consequently the group's ability to meet customer demand. However, this is not an isolated problem, rather one that faces all businesses within the sector, and the director is fully aware of the need to explore alternative sources of labour. In addition the group is expanding the provision of alternative services.
Increases in interest rates will have an impact on the group's profits, however, the likelihood is that there will be future increases will be modest and Debt Servicing Cover will comfortably exceed Bank requirements. Loan to value ratios are also significantly below permissible limits. To protect against future rises the director has taken out fixed rate arrangements on a proportion of the group's loans.
As the past demonstrates, the property market can be volatile and with rising interest rates likely, the recent trend of significantly increasing values may reverse. Residential property values recorded in the accounts do not reflect these short term gains and the director is satisfied that they reflect current market values. Commercial properties are not affected by short term trends in the same way, this is demonstrated by the success of the recent developments and this will be an area that the group concentrates on in the future.
Development and performance
The director is considering all options open to the group to increase revenues and enhance performance. As detailed above further commercial developments will be undertaken when sites become available which will assist with the group's other main goal of increasing trading operations through the provision of secure storage for which there is a great demand.
The group has adequate working capital and should additional funding be required then the use of fixed rate borrowing will be considered.
Key performance indicators
The director uses key performance indicators derived from the monthly production of management accounts for each of the group companies. Turnover and margins are the key indicators of performance.
MMR HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
Mr Robert Rees
Director
27 May 2025
MMR HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -
The director presents his annual report and the audited consolidated financial statements for the year ended 31 August 2024.
Principal activities
The principal activity of the company continued to be that of a holding and investment company, providing management services, secure storage facilities, and commercial accommodation. The group provides agency workers (Databail Limited), security services (Securicall UK Limited) and supply of vehicles, plant and equipment (CSA Site Services Limited).
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £255,500. The director does not recommend payment of a further dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr Robert Rees
Financial instruments
Liquidity risk
The group's principal financial instruments comprise bank balances, trade debtors, trade creditors, debt factoring and a long term bank loan. The main purpose of these instruments is to raise funds for the group's operations. The group's approach to managing other risks, applicable to the financial instruments concerned, is shown below.
In respect of bank balances, the liquidity risk is low, this is managed by ensuring that the group continually has amounts held on deposit.
Trade debtors are managed in respect of credit and cash flow risk, by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.
Trade creditor's liquidity risk is managed by ensuring sufficient funds are available to meet amounts when they fall due.
In respect of debt factoring, the facility is used to aid cashflow.
The long term bank loans are managed by an agreed favourable floating interest rate as well as a proportion at fixed rates. The loans are secured against group assets.
Interest rate risk
The risk of future interest rate rises are a risk facing the company. However, the company's income streams are sufficient to provide substantial interest cover both now and in the future should rates rise and as a precaution part of the borrowing has been converted to fixed rates.
Disabled persons
The company's policy is to recruit disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.
MMR HOLDINGS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 4 -
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Future developments
The director is seeking to enhance the value and income generating potential of the property portfolio through the development of certain properties into secure storage facilities and serviced offices.
Expansion through the acquisition of businesses complementary to the company and group's activities will also be considered as diversification will help to increase the profit generating capabilities of the group.
Auditor
In accordance with the company's articles, a resolution proposing that Harris Bassett Limited be reappointed as auditor of the group will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr Robert Rees
Director
27 May 2025
MMR HOLDINGS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
- 5 -
The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
MMR HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MMR HOLDINGS LIMITED
- 6 -
Opinion
We have audited the financial statements of MMR Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2024 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group 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:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 August 2024 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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:
The information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the director's report have been prepared in accordance with applicable legal requirements.
MMR HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MMR HOLDINGS LIMITED
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines 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 director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has 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.
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 and non-compliance with laws and regulations, are set out below.
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:
Results of our enquiries of management about their own identification and assessment of the risks of irregularities;
The nature of the industry and sector, control environment and business performance;
Any matters we identified having obtained and reviewed the group’s policies and procedures relating to:
Identifying, evaluation 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;
The matters discussed among the audit engagement team including component audit teams regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
MMR HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MMR HOLDINGS LIMITED
- 8 -
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in revenue recognition. 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 group 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 local tax legislation.
Audit response to risks identified
Our procedures to respond to risks identified included the following:
Enquiry of management around potential litigation and claims.
Enquiry of entity staff to identify any instances of non-compliance with laws and regulations.
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness; and assessing whether the judgements made in making accounting estimates are indicative of a potential bias.
Our audit testing typically involves selecting a limited number of items for testing, rather than testing complete populations. We will often seek to target particular items for testing based on their size or risk characteristics. In other cases, we will use audit sampling to enable us to draw a conclusion about the population from which the sample is selected.
We also communicated relevant laws and regulations and potential fraud risks to all engagement team members and component audit teams, and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.
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.
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.
Nicholas Bassett (Senior Statutory Auditor)
For and on behalf of Harris Bassett Limited, Statutory Auditor
Chartered Accountants
5 New Mill Court
Phoenix Way
Enterprise Park
Swansea
SA7 9FG
27 May 2025
MMR HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
- 9 -
2024
2023
Notes
£
£
Revenue
3
16,275,624
11,620,998
Cost of sales
(13,389,443)
(9,115,734)
Gross profit
2,886,181
2,505,264
Distribution costs
(292)
Administrative expenses
(1,536,654)
(1,159,085)
Other operating income
16,926
-
Operating profit
4
1,366,453
1,345,887
Investment income
8
7,843
291
Finance costs
9
(211,579)
(199,592)
Other gains and losses
10
510,000
596,274
Profit before taxation
1,672,717
1,742,860
Tax on profit
11
(506,398)
(556,249)
Profit for the financial year
27
1,166,319
1,186,611
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
The income statement has been prepared on the basis that all operations are continuing operations.
MMR HOLDINGS LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2024
31 August 2024
- 10 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
13
635,195
746,396
Investment property
14
13,239,099
12,332,017
Investments
15
27,000
27,000
13,901,294
13,105,413
Current assets
Inventories
17
-
10,000
Trade and other receivables
18
3,831,636
2,924,650
Cash and cash equivalents
641,579
1,873,559
4,473,215
4,808,209
Current liabilities
19
(2,291,921)
(2,870,422)
Net current assets
2,181,294
1,937,787
Total assets less current liabilities
16,082,588
15,043,200
Non-current liabilities
20
(4,567,461)
(4,548,221)
Provisions for liabilities
Deferred tax liability
23
908,930
799,601
(908,930)
(799,601)
Net assets
10,606,197
9,695,378
Equity
Called up share capital
26
550
550
Retained earnings
27
10,605,647
9,694,828
Total equity
10,606,197
9,695,378
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved and signed by the director and authorised for issue on 27 May 2025
27 May 2025
Mr Robert Rees
Director
Company registration number 03477965 (England and Wales)
MMR HOLDINGS LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2024
31 August 2024
- 11 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
13
431,006
491,482
Investment property
14
13,239,099
12,332,017
Investments
15
27,010
27,010
13,697,115
12,850,509
Current assets
Inventories
17
-
10,000
Trade and other receivables
18
2,486,269
1,689,113
Cash and cash equivalents
430,730
1,411,843
2,916,999
3,110,956
Current liabilities
19
(2,297,321)
(2,316,211)
Net current assets
619,678
794,745
Total assets less current liabilities
14,316,793
13,645,254
Non-current liabilities
20
(4,515,128)
(4,443,756)
Provisions for liabilities
Deferred tax liability
23
862,556
753,868
(862,556)
(753,868)
Net assets
8,939,109
8,447,630
Equity
Called up share capital
26
550
550
Retained earnings
27
8,938,559
8,447,080
Total equity
8,939,109
8,447,630
As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s profit for the year was £746,978 (2023 - £969,303 profit).
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 27 May 2025
27 May 2025
Mr Robert Rees
Director
Company registration number 03477965 (England and Wales)
MMR HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 12 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 September 2022
150
8,641,882
8,642,032
Year ended 31 August 2023:
Profit and total comprehensive income
-
1,186,611
1,186,611
Issue of share capital
26
400
-
400
Dividends
12
-
(133,665)
(133,665)
Balance at 31 August 2023
550
9,694,828
9,695,378
Year ended 31 August 2024:
Profit and total comprehensive income
-
1,166,319
1,166,319
Dividends
12
-
(255,500)
(255,500)
Balance at 31 August 2024
550
10,605,647
10,606,197
MMR HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 13 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 September 2022
150
7,611,441
7,611,591
Year ended 31 August 2023:
Profit and total comprehensive income for the year
-
969,304
969,304
Issue of share capital
26
400
-
400
Dividends
12
-
(133,665)
(133,665)
Balance at 31 August 2023
550
8,447,080
8,447,630
Year ended 31 August 2024:
Profit and total comprehensive income
-
746,979
746,979
Dividends
12
-
(255,500)
(255,500)
Balance at 31 August 2024
550
8,938,559
8,939,109
MMR HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
341,783
1,790,112
Interest paid
(211,579)
(199,592)
Income taxes paid
(234,875)
(204,882)
Net cash (outflow)/inflow from operating activities
(104,671)
1,385,638
Investing activities
Purchase of property, plant and equipment
(44,014)
(326,402)
Proceeds on disposal of property, plant and equipment
9,250
56,035
Purchase of investment property
(397,075)
(1,407,244)
Proceeds on disposal of investment property
-
153,073
Proceeds from other investments and loans
(246,483)
(51,386)
Interest received
7,843
291
Net cash used in investing activities
(670,479)
(1,575,633)
Financing activities
Proceeds from issue of shares
-
400
Repayment of bank loans
(79,257)
(89,948)
Payment of finance leases obligations
(122,063)
104,260
Dividends paid to equity shareholders
(255,500)
(133,665)
Net cash used in financing activities
(456,820)
(118,953)
Net decrease in cash and cash equivalents
(1,231,970)
(308,948)
Cash and cash equivalents at beginning of year
1,873,559
2,182,506
Cash and cash equivalents at end of year
641,579
1,873,559
MMR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 15 -
1
Accounting policies
Company information
MMR Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Llanelli Gate Business Park, Dafen, Llanelli, Carmarthenshire, SA14 8LQ.
The group consists of MMR Holdings Limited and all of its subsidiaries.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
The 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 for parent company information presented within the consolidated financial statements:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
MMR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation
The consolidated financial statements incorporate those of MMR Holdings Limited and all of its material subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to 31 August 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group statement of financial position at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.4
Going concern
At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Revenue
Revenue 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.
1.6
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
MMR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 17 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
20% - 25% per annum of cost
Fixtures, fittings & equipment
10% - 25% per annum of cost
Motor vehicles
25% - 33% per annum of cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.
1.7
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.8
Non-current investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
MMR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 18 -
1.9
Impairment of non-current assets
At each reporting period end date, the group 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.10
Inventories
Inventories 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 inventories to their present location and condition.
Inventories 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 inventories 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.
1.11
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.
MMR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 19 -
1.12
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables 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.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
MMR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 20 -
Basic financial liabilities
Basic financial liabilities, including trade and other payables, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.13
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.14
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 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 group’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 if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
MMR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 21 -
1.15
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 non-current 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.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
1.18
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.
2
Judgements and key sources of estimation uncertainty
In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
MMR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 22 -
3
Revenue
An analysis of the group's revenue is as follows:
2024
2023
£
£
Revenue analysed by class of business
Supply of labour
14,470,189
10,172,376
Rent
1,713,162
1,448,622
Other
92,273
-
16,275,624
11,620,998
2024
2023
£
£
Other revenue
Interest income
7,843
291
All revenue was generated within the United Kingdom during the reporting period.
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned property, plant and equipment
91,067
85,172
Depreciation of property, plant and equipment held under finance leases
61,828
51,946
Profit on disposal of property, plant and equipment
(6,930)
(52,892)
Operating lease charges
135,683
125,014
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
14,386
15,703
Audit of the financial statements of the company's subsidiaries
17,555
16,042
31,941
31,745
MMR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 23 -
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Administration
39
14
5
5
Productive labour
362
262
-
-
Total
401
276
5
5
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
10,882,433
6,955,062
159,732
129,050
Pension costs
205,652
166,705
125,000
105,000
11,088,085
7,121,767
284,732
234,050
7
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
35,160
35,274
8
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
7,843
291
9
Finance costs
2024
2023
£
£
Interest on bank overdrafts and loans
166,837
165,701
Other interest on financial liabilities
31,996
27,847
Interest on finance leases and hire purchase contracts
12,746
7,354
Other interest
-
(1,310)
Total finance costs
211,579
199,592
MMR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 24 -
10
Other gains and losses
2024
2023
£
£
Changes in the fair value of investment properties
510,000
596,274
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
396,386
225,008
Deferred tax
Origination and reversal of timing differences
110,012
331,241
Total tax charge
506,398
556,249
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
1,672,717
1,742,860
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
418,179
435,715
Tax effect of expenses that are not deductible in determining taxable profit
39,910
39,899
Tax effect of income not taxable in determining taxable profit
(135,429)
(162,391)
Tax effect of utilisation of tax losses not previously recognised
(30,661)
Effect of change in corporation tax rate
-
22,922
Group relief
(25,204)
Permanent capital allowances in excess of depreciation
(9,462)
(75,900)
Roundings
83,871
20,676
Deferred tax movements
109,329
331,193
Taxation charge
506,398
556,249
12
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
255,500
133,665
MMR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 25 -
13
Property, plant and equipment
Group
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 September 2023
1,181,396
138,824
354,497
1,674,717
Additions
41,324
2,690
44,014
Disposals
(10,500)
(10,500)
At 31 August 2024
1,212,220
141,514
354,497
1,708,231
Depreciation and impairment
At 1 September 2023
505,834
134,984
287,503
928,321
Depreciation charged in the year
130,365
1,378
21,152
152,895
Eliminated in respect of disposals
(8,180)
(8,180)
At 31 August 2024
628,019
136,362
308,655
1,073,036
Carrying amount
At 31 August 2024
584,201
5,152
45,842
635,195
At 31 August 2023
675,562
3,840
66,994
746,396
Company
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 September 2023
656,233
123,501
134,080
913,814
Additions
9,205
9,205
At 31 August 2024
665,438
123,501
134,080
923,019
Depreciation and impairment
At 1 September 2023
192,391
122,584
107,357
422,332
Depreciation charged in the year
65,686
336
3,659
69,681
At 31 August 2024
258,077
122,920
111,016
492,013
Carrying amount
At 31 August 2024
407,361
581
23,064
431,006
At 31 August 2023
463,842
917
26,723
491,482
MMR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
13
Property, plant and equipment
(Continued)
- 26 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and machinery
83,300
113,420
Motor vehicles
15,367
40,273
98,667
153,693
-
-
14
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 September 2023
12,332,024
12,332,024
Additions through external acquisition
397,075
397,075
Net gains or losses through fair value adjustments
510,000
510,000
At 31 August 2024
13,239,099
13,239,099
Investment property comprises residential property formerly occupied by employees within the group and more recently commercial land acquired for rental or development purposes. The fair value of the investment property has been arrived at on the basis of valuations carried out at 9 May 2016, 31 August 2016, 31 August 2021, 19 January 2022, 8 June 2022 and 14 March 2025 by Lambert Smith Hampton Chartered Surveyors, who are not connected with the company. The valuations were made on an open market value basis by reference to market evidence of transaction prices for similar properties. The director considers that the valuations reflect fair value at the year end.
15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
16
27,000
27,000
27,010
27,010
MMR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
15
Fixed asset investments
(Continued)
- 27 -
Movements in non-current investments
Group
Shares in subsidiaries
£
Cost or valuation
At 1 September 2023 and 31 August 2024
27,000
Carrying amount
At 31 August 2024
27,000
At 31 August 2023
27,000
Movements in non-current investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 September 2023 and 31 August 2024
27,010
Carrying amount
At 31 August 2024
27,010
At 31 August 2023
27,010
16
Subsidiaries
Details of the company's subsidiaries at 31 August 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
CSA Site Services Limited
England and Wales
Ordinary
100.00
Databail Limited
England and Wales
Ordinary
100.00
NewEuropeanstaff.com Limited
England and Wales
Ordinary
100.00
Securicall UK Limited
England and Wales
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
CSA Site Services Limited
436,292
18,856
Databail Limited
831,047
336,095
NewEuropeanstaff.com Limited
35,502
Securicall UK Limited
399,759
64,389
The registered office of the subsidiaries is Llanelli Gate Business Park, Dafen, Llanelli SA14 8LQ.
NewEuropeanstaff.com Limited is excluded from the consolidated accounts as it is dormant and immaterial.
MMR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 28 -
17
Inventories
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
10,000
10,000
18
Trade and other receivables
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade receivables
1,213,727
1,096,410
56,551
49,585
Amounts owed by undertakings in which the company has a participating interest
422,587
422,587
422,587
422,587
Other receivables
2,185,806
1,401,005
2,007,131
1,216,941
Prepayments and accrued income
9,383
3,832
3,831,503
2,923,834
2,486,269
1,689,113
Deferred tax asset (note 23)
133
816
3,831,636
2,924,650
2,486,269
1,689,113
The gross trade receivables under the debt factoring arrangement amount to £876,996 (2023.: £923,288) within the group and nil within the company.
The amounts received under the debt factoring arrangements are included in current liabilities.
19
Current liabilities
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
21
95,485
282,140
74,652
261,307
Obligations under finance leases
22
88,158
122,066
54,360
88,268
Trade payables
98,641
258,353
33,422
62,034
Amounts owed to group undertakings
1,637,365
1,377,348
Corporation tax payable
384,795
223,284
226,205
164,591
Other taxation and social security
714,567
621,343
6,358
42,618
Deferred income
24
38,148
39,688
38,148
39,688
Other payables
192,224
628,730
64,990
80,357
Accruals and deferred income
679,903
694,818
161,821
200,000
2,291,921
2,870,422
2,297,321
2,316,211
The invoice discounting facility for the group is secured on the book debts of Databail Limited and Securicall (UK) Limited.
MMR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 29 -
20
Non-current liabilities
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
4,496,831
4,389,433
4,478,498
4,352,766
Obligations under finance leases
22
70,630
158,788
36,630
90,990
4,567,461
4,548,221
4,515,128
4,443,756
21
Borrowings
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
4,592,316
4,671,573
4,553,150
4,614,073
Payable within one year
95,485
282,140
74,652
261,307
Payable after one year
4,496,831
4,389,433
4,478,498
4,352,766
The long-term loans are secured by fixed charges over the investment properties owned by the group. Interest rates on the loans are a combination of both fixed and variable rates.
22
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
88,158
122,066
54,360
88,268
In two to five years
70,630
158,788
36,630
90,990
158,788
280,854
90,990
179,258
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
MMR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 30 -
23
Deferred taxation
Deferred tax assets and liabilities are offset where the group or 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:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
150,164
168,335
133
816
Revaluations
758,766
631,266
-
-
908,930
799,601
133
816
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances
103,790
122,602
-
-
Revaluations
758,766
631,266
-
-
862,556
753,868
-
-
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 September 2023
798,785
753,868
Charge to profit or loss
110,012
108,688
Liability at 31 August 2024
908,797
862,556
The deferred tax asset set out above is expected to reverse within 24 months and relates to decelerated capital allowances. The deferred tax liability set out above relates in part to accelerated capital allowances that are expected to reverse within the short term and provision for tax on property gains should those properties be disposed of.
24
Deferred income
Group
Company
2024
2023
2024
2023
£
£
£
£
Other deferred income
38,148
39,688
38,148
39,688
MMR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 31 -
25
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
205,652
166,705
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
26
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
100
100
500
500
Ordinary B Shares of £1 each
50
50
50
50
150
150
550
550
27
Reserves
Called up share capital - represents the nominal value of shares that have been issued.
Other reserves - represents the revaluation surplus arising on the reclassification of the group/company's properties as Investment Properties and is a non-distributable reserve.
Retained earnings - represents the accumulated profits, losses and distributions of the group/company.
28
Operating lease commitments
Lessee
The group rents its premises from the MMR Holdings Limited Retirement Benefits Scheme. Rent for the group amounted to £47,000 (company £6,000). There is no formal lease agreement in place.
29
Related party transactions
Transactions with related parties
MMR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
29
Related party transactions
(Continued)
- 32 -
At the year end, a debtor of £2,270 (2023: £12,309 creditor) was owed from MMR Holdings Ltd RBS, a related entity.
At the year end, a debtor of £103,445 (2023: £103,445) was owed by Swihart-Rees Limited, a company connected by virtue of family relationship to the group director.
At the year end, a debtor of £1,095,273 (2023: £594,923) was owed by Rees Building & Development Ltd, a company controlled by the group director.
At the year end, a debtor of £9,734 (2023: £9,734) was owed by Farmer Rees, a company controlled by the group director.
At the year end, a debtor of £2,985 (2023: £2,985) was owed by Labourforce, a company controlled by the group director.
At the year end, a creditor of £183,366 (2023: £10,673) was owed to Blackhorse Marketing Limited, a company controlled by the group director.
30
Directors' transactions
At the year end, the director owed the company £669,519 (2023: £423,036), these loans are interest-free, unsecured and repayable on demand.
31
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,166,319
1,186,611
Adjustments for:
Taxation charged
506,398
556,249
Finance costs
211,579
199,592
Investment income
(7,843)
(291)
Gain on disposal of property, plant and equipment
(6,930)
(52,892)
Depreciation and impairment of property, plant and equipment
152,895
137,118
Other gains and losses
(510,000)
(596,274)
Movements in working capital:
Decrease in inventories
10,000
-
(Increase) in trade and other receivables
(662,017)
(635,762)
(Decrease)/increase in trade and other payables
(517,078)
956,074
(Decrease)/increase in deferred income
(1,540)
39,688
Cash generated from operations
341,783
1,790,113
MMR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 33 -
32
Analysis of changes in net debt - group
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
1,873,559
(1,231,980)
641,579
Borrowings excluding overdrafts
(4,671,573)
79,257
(4,592,316)
Obligations under finance leases
(280,854)
122,066
(158,788)
(3,078,868)
(1,030,657)
(4,109,525)
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