| REGISTERED NUMBER: |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 MAY 2024 |
| FOR |
| MACPHERSON & COLBURN LIMITED |
| REGISTERED NUMBER: |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 MAY 2024 |
| FOR |
| MACPHERSON & COLBURN LIMITED |
| MACPHERSON & COLBURN LIMITED (REGISTERED NUMBER: 01168510) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 MAY 2024 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 3 |
| Report of the Independent Auditors | 4 |
| Statement of Comprehensive Income | 6 |
| Balance Sheet | 7 |
| Statement of Changes in Equity | 8 |
| Cash Flow Statement | 9 |
| Notes to the Cash Flow Statement | 10 |
| Notes to the Financial Statements | 11 |
| MACPHERSON & COLBURN LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 MAY 2024 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Statutory Auditors |
| Statutory Auditor |
| 15 West Street |
| Brighton |
| East Sussex |
| BN1 2RL |
| MACPHERSON & COLBURN LIMITED (REGISTERED NUMBER: 01168510) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 MAY 2024 |
| We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face. |
| The Company maintains its position as one of the largest UK based Vehicle Rescue and Recovery operators and is the clear market leader in Southern England. |
| The core product is the roadside breakdown element of the business, ancillary services continue to develop primarily in the mobile service and repair sector. Additional services have been added with higher potential margins once fully established. |
| The company's activities are organised into the following four divisions: |
| - Roadside Repair, Recovery and Transportation of all vehicles |
| - Secure Parking and Storage including forensic examination facilities |
| - Workshop and on site based service and repair for all vehicles |
| - Specialist Motorsport preparation |
| We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover, gross margin and return on capital employed. |
| The trading year was a difficult one with significant rises in both labour costs and raw materials. Despite strong representation it took until August 2024 for our major customers to recognise these increased costs of working. We continue to review financial costs and future legislation changes impacting labour costs on a regular basis. |
| 2023 also saw significant investment to extend the working area into Kent and South East London with the addition of an additional operating site in Wrotham, Kent. |
| Strategically the Company continues to develop ways to earn additional revenue from individual customers following many of the 170,000 breakdowns attended annually. |
| Operationally there is still significant additional market share available if the Company choose to increase capacity. |
| Transportation continues to be an integral part of the Company's business as we seek to use of economies of scale to bring together other forms of vehicles movements outside of rescue recovery, in doing so lowering our cost base. |
| Clean air legislation in many UK cities has increased the requirement to replace vehicle fleet and now the Company operates one of the most low emission compliant rescue fleets in the UK. |
| The labour market in Southern England continues to be extremely challenging and the Company is seeking to improve staff retention in our challenging 24/7 industry. |
| Continued investment in training new recruits is a key strategic objective. |
| As for many businesses of our size, the business environment in which we operate continues to be challenging. The rescue recovery market in the UK is highly competitive and margins continue to be tight. We continue to face competition from smaller less compliant operators. We are of course also subject to consumer spending patterns and consumers' overall level of disposal income within our economy. |
| With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control. |
| ON BEHALF OF THE BOARD: |
| MACPHERSON & COLBURN LIMITED (REGISTERED NUMBER: 01168510) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 MAY 2024 |
| The directors present their report with the financial statements of the company for the year ended 31 May 2024. |
| PRINCIPAL ACTIVITY |
| The principal activity of the company in the year under review was that of vehicle rescue and recovery operators. |
| DIVIDENDS |
| No dividends will be distributed for the year ended 31 May 2024. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 June 2023 to the date of this report. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Strategic Report, the Report of the Directors 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: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| 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. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| AUDITORS |
| The auditors, Galloways Accounting (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| MACPHERSON & COLBURN LIMITED |
| Opinion |
| We have audited the financial statements of Macpherson & Colburn Limited (the 'company') for the year ended 31 May 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the company's affairs as at 31 May 2024 and of its loss for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| 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 Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the 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 directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| MACPHERSON & COLBURN LIMITED |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| Based on our understanding of the company and industry, we considered the risk of non-compliance with laws and regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as Companies Act 2006 and FRS 102. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that principal risks were related to revenue recognition, under-provision of accruals and estimation of provisions. Audit procedures performed included: |
| - Enquiring of management whether there were instances of non-compliance with laws and regulation or fraud; |
| - Review of legal expenses for evidence of fees relating to non-compliance; |
| - Challenging assumptions and judgements made by management in determining significant accounting estimates; |
| - Reviewing journal entries for unusual accounting estimates; |
| - Substantive procedures to test that sales occured and were recognised as revenue in the financial statements in the correct period; and |
| - Substantive procedures to test that accrued expenses recognised were complete. |
| There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
| for and on behalf of |
| Statutory Auditors |
| Statutory Auditor |
| 15 West Street |
| Brighton |
| East Sussex |
| BN1 2RL |
| MACPHERSON & COLBURN LIMITED (REGISTERED NUMBER: 01168510) |
| STATEMENT OF COMPREHENSIVE |
| INCOME |
| FOR THE YEAR ENDED 31 MAY 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| TURNOVER | 3 |
| Cost of sales | ( |
) | ( |
) |
| GROSS PROFIT |
| Administrative expenses | ( |
) | ( |
) |
| (436,388 | ) | 841,068 |
| Other operating income |
| OPERATING (LOSS)/PROFIT | 5 | ( |
) |
| Interest payable and similar expenses | 6 | ( |
) | ( |
) |
| (LOSS)/PROFIT BEFORE TAXATION | ( |
) |
| Tax on (loss)/profit | 7 | ( |
) |
| (LOSS)/PROFIT FOR THE FINANCIAL YEAR | ( |
) |
| OTHER COMPREHENSIVE INCOME |
| Fair value reserve |
| Income tax relating to other comprehensive income | ( |
) |
| OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR | ( |
) |
| MACPHERSON & COLBURN LIMITED (REGISTERED NUMBER: 01168510) |
| BALANCE SHEET |
| 31 MAY 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| FIXED ASSETS |
| Intangible assets | 8 |
| Tangible assets | 9 |
| Investment property | 10 |
| CURRENT ASSETS |
| Stocks | 11 |
| Debtors | 12 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 13 | ( |
) | ( |
) |
| NET CURRENT LIABILITIES | ( |
) | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year | 14 | ( |
) | ( |
) |
| PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 19 |
| Capital redemption reserve |
| Fair value reserve |
| Retained earnings |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| MACPHERSON & COLBURN LIMITED (REGISTERED NUMBER: 01168510) |
| STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 MAY 2024 |
| Called up | Capital | Fair |
| share | Retained | redemption | value | Total |
| capital | earnings | reserve | reserve | equity |
| £ | £ | £ | £ | £ |
| Balance at 1 June 2022 |
| Changes in equity |
| Total comprehensive income | - |
| Balance at 31 May 2023 |
| Changes in equity |
| Total comprehensive income | - | ( |
) | ( |
) |
| Balance at 31 May 2024 |
| MACPHERSON & COLBURN LIMITED (REGISTERED NUMBER: 01168510) |
| CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 MAY 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 |
| Net cash from operating activities |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Sale of tangible fixed assets |
| Net cash from investing activities | ( |
) | ( |
) |
| Cash flows from financing activities |
| Loan repayments in year | ( |
) | ( |
) |
| Finance lease and HP repayments in year | ( |
) | ( |
) |
| Interest paid | ( |
) | ( |
) |
| Interest element of HP payments paid | ( |
) | ( |
) |
| Net cash from financing activities | ( |
) | ( |
) |
| Decrease in cash and cash equivalents | ( |
) | ( |
) |
| Cash and cash equivalents at beginning of year | 2 | 706,762 |
| Cash and cash equivalents at end of year | 2 | 499,035 | 619,476 |
| MACPHERSON & COLBURN LIMITED (REGISTERED NUMBER: 01168510) |
| NOTES TO THE CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31 MAY 2024 |
| 1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2024 | 2023 |
| £ | £ |
| (Loss)/profit before taxation | ( |
) |
| Depreciation charges |
| Profit on disposal of fixed assets | ( |
) | ( |
) |
| Finance costs | 188,560 | 160,618 |
| 504,589 | 1,627,340 |
| (Increase)/decrease in stocks | ( |
) |
| Increase in trade and other debtors | ( |
) | ( |
) |
| Increase in trade and other creditors |
| Cash generated from operations |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 31 May 2024 |
| 31.5.24 | 1.6.23 |
| £ | £ |
| Cash and cash equivalents | 499,035 | 619,476 |
| Year ended 31 May 2023 |
| 31.5.23 | 1.6.22 |
| £ | £ |
| Cash and cash equivalents | 619,476 | 706,762 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| Non-cash |
| At 1.6.23 | Cash flow | movements | At 31.5.24 |
| £ | £ | £ | £ |
| Net cash |
| Cash at bank |
| and in hand | 619,476 | (120,441 | ) | - | 499,035 |
| 619,476 | ( |
) | - | 499,035 |
| Debt |
| Finance leases | (2,208,630 | ) | 894,724 | (1,281,533 | ) | (2,595,439 | ) |
| Debts falling due |
| within 1 year | (146,491 | ) | 145,416 | (148,549 | ) | (149,624 | ) |
| Debts falling due |
| after 1 year | (627,771 | ) | - | 148,549 | (479,222 | ) |
| (2,982,892 | ) | 1,040,140 | (1,281,533 | ) | (3,224,285 | ) |
| Total | (2,363,416 | ) | 919,699 | (1,281,533 | ) | (2,725,250 | ) |
| MACPHERSON & COLBURN LIMITED (REGISTERED NUMBER: 01168510) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 MAY 2024 |
| 1. | STATUTORY INFORMATION |
| Macpherson & Colburn Limited is a |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets. |
| The financial statements are presented in Sterling (£) and rounded to the nearest £1. |
| Significant judgements and estimates |
| The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
| Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: |
| The company has an investment property which is measured at fair value. This requires management to make judgements and estimates of the fair value of the property based on similar property values in the location of the property. At 31 May 2024, the investment property was valued at £900,000 (2023: £900,000). |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. |
| Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer; the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. |
| Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable. Revenue from the provision of services is recognised at the point the service is delivered which is when the vehicle is rescued or recovered. |
| Goodwill |
| Tangible fixed assets |
| Tangible fixed assets are recognised at cost with the exception of freehold property which is at valuation. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter. |
| Freehold property | - Straight line over 50 years |
| Improvements to property | - Straight line over 7 years |
| Plant and machinery | - 25% on reducing balance |
| Fixtures and fittings | - 25% on reducing balance |
| Motor vehicles | - 20% on reducing balance |
| Freehold land held by the company is not depreciated. |
| Investment property |
| Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss. |
| Stocks |
| Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| Stock is calculated on a first in, first out basis. |
| MACPHERSON & COLBURN LIMITED (REGISTERED NUMBER: 01168510) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Hire purchase and leasing commitments |
| Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
| The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability. |
| Pension costs and other post-retirement benefits |
| The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
| Sales invoice discount advances |
| The company has a recourse sales invoice discounting agreement in place. The discounter has been assigned certain book trade debts, in return for a credit facility to the company. The discounter has the right to require the company to repurchase unpaid debts and therefore the company has retained the significant benefits and risks relating to the debts. The amortised cost of the credit facility is recognised in liabilities. All charges and interest payable are charged to the profit and loss account. |
| 3. | TURNOVER |
| The turnover and loss (2023-profit) before taxation are attributable to the one principal activity of the company and arose wholly within the United Kingdom. |
| 4. | EMPLOYEES AND DIRECTORS |
| 2024 | 2023 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| MACPHERSON & COLBURN LIMITED (REGISTERED NUMBER: 01168510) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2024 |
| 4. | EMPLOYEES AND DIRECTORS - continued |
| The average number of employees during the year was as follows: |
| 2024 | 2023 |
| Management staff | 2 | 2 |
| Direct staff | 242 | 218 |
| 2024 | 2023 |
| £ | £ |
| Directors' remuneration |
| Directors' pension contributions to money purchase schemes |
| 5. | OPERATING (LOSS)/PROFIT |
| The operating loss (2023 - operating profit) is stated after charging/(crediting): |
| 2024 | 2023 |
| £ | £ |
| Hire of plant and machinery |
| Depreciation - owned assets |
| Depreciation - assets on hire purchase contracts |
| Profit on disposal of fixed assets | ( |
) | ( |
) |
| Auditors' remuneration |
| 6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2024 | 2023 |
| £ | £ |
| Bank interest |
| Hire purchase |
| 7. | TAXATION |
| Analysis of the tax (credit)/charge |
| The tax (credit)/charge on the loss for the year was as follows: |
| 2024 | 2023 |
| £ | £ |
| Deferred tax | ( |
) |
| Tax on (loss)/profit | ( |
) |
| UK corporation tax was charged at 25%) in 2023. |
| MACPHERSON & COLBURN LIMITED (REGISTERED NUMBER: 01168510) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2024 |
| 7. | TAXATION - continued |
| Reconciliation of total tax (credit)/charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2024 | 2023 |
| £ | £ |
| (Loss)/profit before tax | ( |
) |
| (Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
| Effects of: |
| Expenses not deductible for tax purposes |
| Utilisation of tax losses |
| Fixed asset difference | 9,392 | (9,933 | ) |
| Total tax (credit)/charge | (112,971 | ) | 226,159 |
| Tax effects relating to effects of other comprehensive income |
| 2024 |
| Gross | Tax | Net |
| £ | £ | £ |
| Fair value reserve | (91,303 | ) | 308,096 |
| 8. | INTANGIBLE FIXED ASSETS |
| Goodwill |
| £ |
| COST |
| At 1 June 2023 |
| and 31 May 2024 |
| AMORTISATION |
| At 1 June 2023 |
| and 31 May 2024 |
| NET BOOK VALUE |
| At 31 May 2024 |
| At 31 May 2023 |
| MACPHERSON & COLBURN LIMITED (REGISTERED NUMBER: 01168510) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2024 |
| 9. | TANGIBLE FIXED ASSETS |
| Improvements |
| Freehold | Short | to |
| property | leasehold | property |
| £ | £ | £ |
| COST OR VALUATION |
| At 1 June 2023 |
| Additions |
| Disposals |
| Revaluations |
| At 31 May 2024 |
| DEPRECIATION |
| At 1 June 2023 |
| Charge for year |
| Eliminated on disposal |
| Revaluation adjustments | ( |
) |
| At 31 May 2024 |
| NET BOOK VALUE |
| At 31 May 2024 |
| At 31 May 2023 |
| Fixtures |
| Plant and | and | Motor |
| machinery | fittings | vehicles | Totals |
| £ | £ | £ | £ |
| COST OR VALUATION |
| At 1 June 2023 |
| Additions |
| Disposals | ( |
) | ( |
) |
| Revaluations |
| At 31 May 2024 |
| DEPRECIATION |
| At 1 June 2023 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) |
| Revaluation adjustments | ( |
) |
| At 31 May 2024 |
| NET BOOK VALUE |
| At 31 May 2024 |
| At 31 May 2023 |
| Freehold properties are revalued annually and subsequently depreciated. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date. |
| Fair values are determined from market based evidence normally undertaken by professionally qualified valuers. This is based on a valuation undertaken by Crickmay Chartered Surveyors Limited in August 2024. |
| Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss. |
| The directors have chosen to adopt a revaluation model for its freehold properties during the year having previously carried them at historic cost. If the properties were at cost, the net book value would be £535,601 (2023: £546,997). |
| MACPHERSON & COLBURN LIMITED (REGISTERED NUMBER: 01168510) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2024 |
| 9. | TANGIBLE FIXED ASSETS - continued |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Motor |
| vehicles |
| £ |
| COST OR VALUATION |
| At 1 June 2023 |
| Additions |
| Disposals | ( |
) |
| Transfer to ownership | (446,396 | ) |
| At 31 May 2024 |
| DEPRECIATION |
| At 1 June 2023 |
| Charge for year |
| Eliminated on disposal | ( |
) |
| Transfer to ownership | (279,642 | ) |
| At 31 May 2024 |
| NET BOOK VALUE |
| At 31 May 2024 |
| At 31 May 2023 |
| 10. | INVESTMENT PROPERTY |
| Total |
| £ |
| FAIR VALUE |
| At 1 June 2023 |
| and 31 May 2024 |
| NET BOOK VALUE |
| At 31 May 2024 |
| At 31 May 2023 |
| The investment property was subject to valuation by R J Colburn, a director who is not a professionally qualified valuer. The methods and significant assumptions used to ascertain the fair value of £900,000 are as follows: |
| The valuation is an estimated amount for which the property should exchange on the valuation date between a willing buyer and a willing seller in an arm's-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion. |
| The valuation assumes that the property complies in all respects with all legislation, statutory provisions and regulations relating to its construction, use and occupation and that no notices are outstanding against the property. |
| 11. | STOCKS |
| The total carrying amount of stock pledged as security for liabilities was £82,264 (2023: £79,433). |
| 12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade debtors |
| Other debtors |
| Accrued income |
| Prepayments |
| MACPHERSON & COLBURN LIMITED (REGISTERED NUMBER: 01168510) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2024 |
| 13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Bank loans and overdrafts (see note 15) |
| Hire purchase contracts (see note 16) |
| Trade creditors |
| Social security and other taxes |
| VAT | 793,543 | 672,020 |
| Other creditors |
| Directors' loan accounts | 10,584 | 10,584 |
| Deferred income |
| Accrued expenses |
| Included within other creditors is an amount of £119,546 (2023: £55,567) which is secured on the trade debtors amount. |
| 14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Bank loans (see note 15) |
| Hire purchase contracts (see note 16) |
| 15. | LOANS |
| An analysis of the maturity of loans is given below: |
| 2024 | 2023 |
| £ | £ |
| Amounts falling due within one year or on demand: |
| Bank loans |
| Amounts falling due between one and two years: |
| Bank loans - 1-2 years |
| Amounts falling due between two and five years: |
| Bank loans - 2-5 years |
| Amounts falling due in more than five years: |
| Repayable by instalments |
| Bank loans more 5 yr by instal | 170,985 | 227,126 |
| MACPHERSON & COLBURN LIMITED (REGISTERED NUMBER: 01168510) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2024 |
| 16. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Hire purchase contracts |
| 2024 | 2023 |
| £ | £ |
| Gross obligations repayable: |
| Within one year |
| Between one and five years |
| In more than five years |
| Finance charges repayable: |
| Within one year |
| Between one and five years |
| In more than five years |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| In more than five years |
| Non-cancellable operating | leases |
| 2024 | 2023 |
| £ | £ |
| Within one year |
| Between one and five years |
| In more than five years |
| 17. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| 2024 | 2023 |
| £ | £ |
| Bank loans |
| Hire purchase contracts | 2,595,439 | 2,208,630 |
| The bank loans are secured by a first legal charge over the property owned by the company, an unlimited debenture, and an all monies joint and several guarantee from the directors for a principal amount of £45,000. |
| The hire purchase and finance lease liabilities are secured on the assets to which they relate. |
| MACPHERSON & COLBURN LIMITED (REGISTERED NUMBER: 01168510) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 MAY 2024 |
| 18. | PROVISIONS FOR LIABILITIES |
| 2024 | 2023 |
| £ | £ |
| Deferred tax |
| Accelerated capital allowances |
| Tax losses carried forward | ( |
) | ( |
) |
| Fair value adjustment of |
| property | 198,560 | 107,258 |
| 351,466 | 373,134 |
| Deferred |
| tax |
| £ |
| Balance at 1 June 2023 |
| Provided during year | ( |
) |
| Balance at 31 May 2024 |
| 19. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| Ordinary | 1 | 1,000 | 1,000 |
| 20. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| During the year, R J Colburn maintained his loan to the company. As at 31 May 2024, the company owed him £10,583 (2023: £10,583). This balance represented the maximum amount outstanding during the year and the loan is interest free and repayable on demand. |
| 21. | RELATED PARTY DISCLOSURES |
| During the year there were gross sales of £88,104 to Westbourne Motor sports, a company controlled by the director R J Colburn and close family members and a balance of £38,104 (2023: £nil) was outstanding at the year end. |
| 22. | ULTIMATE CONTROLLING PARTY |
| The ultimate controlling party is |
| This was by virtue of his 51% holding of the issued share capital. |