Company registration number 00196839 (England and Wales)
MCLEAN & APPLETON LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
MCLEAN & APPLETON LIMITED
COMPANY INFORMATION
Directors
Mr G S Williams
Mr P Bennett
Secretary
Mr J S Williams Jnr
Company number
00196839
Registered office
Hatfields
Thornton Road
Pickering
North Yorkshire
England
Auditor
Barlow Andrews LLP
Carlyle House
78 Chorley New Road
Bolton
Bankers
Barclays Bank Plc
Leicester
MCLEAN & APPLETON LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
MCLEAN & APPLETON LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2025
- 1 -
The directors present the strategic report for the year ended 31 January 2025.
Review of the business
The company employs head office staff and is responsible for costs appropriate to the group as a whole including the costs of funding. Management charges are rendered and other income is received to cover those costs. Key performance indicators are:
2025 2024
Management charges rendered £3,752k £3,694k
Dividends and other receipts £7,500k £7,500k
Administration costs £2,103k £1,788k
Funding costs £514k £571k
The directors have considered the above to be the key performance indicators and are happy with the performance for the year.
Principal risks and uncertainties
Regulatory compliance risk
The company is subject to regulatory compliance risk being failure to comply with laws, regulations and codes set by the Health and Safety Executive, Financial Conduct Authority and local authorities. Non-compliance could lead to fines, public reprimand or the suspension from selling general insurance and consumer credit products.
Management risk
The company is dependent on the members of its senior management team and the loss of such individuals could have an adverse effect on the business. Furthermore, failure to attract, develop and retain staff of a sufficient calibre could affect the ability of the business to grow.
Information risk
The company is dependent on the continuous operation of its information technology and computer systems which are vulnerable to damage, failure and sabotage. Whilst safeguards, such as insurance, anti-virus software and employee awareness, are in place such a disaster could have a detrimental effect on the business.
Financial risk
The company is funded by a bank loan and overdraft. It is therefore exposed to the level and types of borrowing that in the event of anticipated interest rate rises would significantly affect the stability of the business.
Mr G S Williams
Director
6 June 2025
MCLEAN & APPLETON LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2025
- 2 -
The directors present their annual report and financial statements for the year ended 31 January 2025.
Principal activities
The principal activities of the company are the provision of management services and the holding of property and investments.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £226,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr J S Williams Snr
(Deceased 19 August 2024)
Mr G S Williams
Mr P Bennett
Supplier payment policy
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
settle the terms of payment with suppliers when agreeing the terms of each transaction;
ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
pay in accordance with the company's contractual and other legal obligations.
As a business we do not have standard payment terms for qualifying contracts. The most frequently used payment terms for purchase ledger are 30 days from the end of the month of the invoice date.
Future developments
The directors intend that the group continues to evaluate each opportunity to grow the business, the geographical location being the logical driver.
Auditor
In accordance with the company's articles, a resolution proposing that Barlow Andrews LLP be reappointed as auditor of the company will be put at a General Meeting.
Energy and carbon report
This company is a qualifying entity for the purposes of FRS 101, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company. The company has therefore taken advantage of exemptions from the disclosure requirements relating to energy and carbon reporting.
MCLEAN & APPLETON LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 3 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr G S Williams
Director
6 June 2025
MCLEAN & APPLETON LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2025
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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; and
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.
MCLEAN & APPLETON LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MCLEAN & APPLETON LIMITED
- 5 -
Opinion
We have audited the financial statements of McLean & Appleton Limited (the 'company') for the year ended 31 January 2025 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and 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 101 ‘Reduced Disclosure Framework’ (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 January 2025 and of its 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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
MCLEAN & APPLETON LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MCLEAN & APPLETON LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
MCLEAN & APPLETON LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MCLEAN & APPLETON LIMITED (CONTINUED)
- 7 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions; and
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Emma Woods (Senior Statutory Auditor)
For and on behalf of Barlow Andrews LLP, Statutory Auditor
Carlyle House
78 Chorley New Road
Bolton
6 June 2025
MCLEAN & APPLETON LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2025
- 8 -
2025
2024
Notes
£
£
Revenue
3
3,751,564
3,694,123
Cost of sales
(2,809,105)
(2,604,399)
Gross profit
942,459
1,089,724
Administrative expenses
(2,102,757)
(1,787,702)
Other operating income
92,311
760,810
Operating (loss)/profit
4
(1,067,987)
62,832
Investment income
8
9,217,976
9,386,872
Finance costs
9
(513,685)
(571,239)
Other gains and losses
10
2,278,077
Profit before taxation
7,636,304
11,156,542
Tax on profit
11
(70,241)
(413,744)
Profit and total comprehensive income for the financial year
7,566,063
10,742,798
The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.
MCLEAN & APPLETON LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 JANUARY 2025
31 January 2025
- 9 -
2025
2024
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
13
27,197,725
28,209,823
Investment property
14
933,347
220,000
Investments
15
3,370,817
3,410,708
31,501,889
31,840,531
Current assets
Trade and other receivables
17
35,267,419
28,806,182
Cash and cash equivalents
302,403
3,129,964
35,569,822
31,936,146
Current liabilities
21
(35,545,511)
(38,218,849)
Net current assets/(liabilities)
24,311
(6,282,703)
Total assets less current liabilities
31,526,200
25,557,828
Non-current liabilities
21
(5,812,500)
(7,062,500)
Provisions for liabilities
Deferred tax liabilities
22
(848,851)
(970,542)
Net assets
24,864,849
17,524,786
Equity
Called up share capital
24
50,000
50,000
Retained earnings
24,814,849
17,474,786
Total equity
24,864,849
17,524,786
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 6 June 2025 and are signed on its behalf by:
Mr G S Williams
Director
Company registration number 00196839 (England and Wales)
MCLEAN & APPLETON LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2025
- 10 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 February 2023
50,000
14,957,988
15,007,988
Year ended 31 January 2024:
Profit and total comprehensive income
-
10,742,798
10,742,798
Transactions with owners:
Dividends
12
-
(8,226,000)
(8,226,000)
Balance at 31 January 2024
50,000
17,474,786
17,524,786
Year ended 31 January 2025:
Profit and total comprehensive income
-
7,566,063
7,566,063
Transactions with owners:
Dividends
12
-
(226,000)
(226,000)
Balance at 31 January 2025
50,000
24,814,849
24,864,849
MCLEAN & APPLETON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
- 11 -
1
Accounting policies
Company information
McLean & Appleton Limited is a private company limited by shares domiciled and incorporated in England and Wales. The registered office is Hatfields, Thorton Road, Pickering, North Yorkshire.
1.1
Accounting convention
The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.
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 on the historical cost convention, modifed to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The following exemptions from the requirements of IFRS have been applied in the preparation of these financial statements, in accordance with FRS 101:
Cash flow statement and related notes
Comparative period reconciliations for property and equipment under operating leases, other property and equipment and intangible assets
Disclosures in respect of transactions with wholly owned subsidiaries
Disclosures in respect of capital management
The effects of new but not yet effective IFRSs
Disclosures in respect of the compensation of Key Management Personnel
Disclosures of key assumptions (including sensitivities) and valuation technique used in the determination of recoverable amount for impairment purposes
As the consolidated financial statements of the ultimate parent undertaking include the equivalent disclosures, the Company has also taken the exemptions under FRS 101 available in respect of the following disclosures:
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
McLean & Appleton Limited is a wholly owned subsidiary of McLean and Appleton (Holdings) Limited and the results of McLean & Appleton Limited are included in the consolidated financial statements of McLean and Appleton (Holdings) Limited which are available from their registered office, Hatfields, Thornton Road, Pickering.
1.2
Going concern
The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
MCLEAN & APPLETON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 12 -
1.3
Revenue
Revenue is measured based on the consideration specified in the contract with a customer. The company recognises revenue when (or as) it satisfies a performance obligation by transferring control of the promised services to the customer.
Revenue from management charges is recognised when the service has been performed.
1.4
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.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings
Land is not depreciated and buildings 2% straight line
Plant and machinery
20%-33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of comprehensive income.
1.5
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value as at the reporting end date. Changes in fair value are recognised in profit or loss.
1.6
Non-current investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Impairment of tangible and intangible assets
At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.8
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
MCLEAN & APPLETON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 13 -
1.9
Financial instruments
Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially recognised at their fair value plus directly attributable transaction costs for all financial assets or financial liabilities not classified at fair value through profit or loss.
Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when the company has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when the contractual rights to the cash flows from the financial assets expire or when the entity transfers the financial asset and the transfer qualifies for derecognition. Financial liabilities are derecognised when they are extinguished. This occurs when the obligation specified in the contract is discharged, cancelled or expires.
Classification of financial assets
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value.
Debt instruments that meet the following conditions are subsequently measured at amortised cost:
the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
The business model
An assessment of business models for managing financial assets is fundamental to the classification of a financial asset. The company determines the business models at a level that reflects how the group of financial assets are managed together to achieve a particular business objective.
The company’s business model does not depend on management’s intentions for an individual instrument, therefore the business model assessment is performed at a higher level of aggregation rather than on an instrument-by-instrument basis.
Debt instruments measured at amortised cost
The following financial assets are classified within this category - trade receivables, other receivables and cash at bank. Appropriate allowances for expected credit losses (‘ECLs’) are recognised in profit or loss.
Financial liabilities and equity
Trade and other payables are classified with current liabilities and are stated at their nominal value.
Borrowings are initially measured at fair value and subsequently measured at amortised cost using the effective interest method, with interest recognised on an effective yield basis.
Ordinary shares issued by the company are classified as equity instruments.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
MCLEAN & APPLETON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 14 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the statement of comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
When the company acts as a lessor, leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees, over the major part of the economic life of the asset. All other leases are classified as operating leases. If an arrangement contains lease and non-lease components, the group applies IFRS 15 to allocate the consideration in the contract.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
2
Critical accounting estimates and judgements
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
MCLEAN & APPLETON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 15 -
3
Revenue
2025
2024
£
£
Revenue analysed by class of business
Management charges
3,751,564
3,694,123
2025
2024
£
£
Revenue analysed by geographical market
United Kingdom
3,751,564
3,694,123
4
Operating (loss)/profit
2025
2024
£
£
Operating (loss)/profit for the year is stated after charging:
Depreciation of property, plant and equipment
455,227
455,073
Impairment of investments
120,000
10,000
5
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
11,500
11,000
For other services
Tax services
22,150
20,900
Other services
13,175
12,825
Total non-audit fees
35,325
33,725
MCLEAN & APPLETON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 16 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2025
2024
Number
Number
Administration and management
25
23
Their aggregate remuneration comprised:
2025
2024
£
£
Wages and salaries
1,634,805
1,632,141
Social security costs
195,240
187,472
Pension costs
230,233
26,123
2,060,278
1,845,736
7
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
674,946
657,015
Company pension contributions to defined contribution schemes
7,044
7,044
681,990
664,059
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
Remuneration for qualifying services
535,359
513,583
Company pension contributions to defined contribution schemes
3,522
3,522
MCLEAN & APPLETON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 17 -
8
Investment income
2025
2024
£
£
Interest income
Interest on bank deposits
173,861
199,048
Other interest income
1,544,115
1,687,824
Total interest revenue
1,717,976
1,886,872
Income from fixed asset investments
Income from shares in group undertakings
7,500,000
7,500,000
Total income
9,217,976
9,386,872
9
Finance costs
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
513,685
571,239
10
Other gains and losses
2025
2024
£
£
Amounts written off group loans
-
2,278,077
MCLEAN & APPLETON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 18 -
11
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
191,932
367,977
Deferred tax
Origination and reversal of temporary differences
(121,691)
45,767
Total tax charge
70,241
413,744
The rate of corporation tax increased from 19% to 25% from 1 April 2023.
The charge for the year can be reconciled to the profit per the income statement as follows:
2025
2024
£
£
Profit before taxation
7,636,304
11,156,542
Expected tax charge based on a corporation tax rate of 25.00% (2024: 24.03%)
1,909,076
2,680,932
Effect of expenses not deductible in determining taxable profit
103,318
12,972
Income not taxable
(1,875,000)
(1,802,260)
Gains not taxable
-
(547,425)
Permanent capital allowances in excess of depreciation
(67,153)
69,525
Taxation charge for the year
70,241
413,744
12
Dividends
2025
2024
2025
2024
Amounts recognised as distributions:
per share
per share
Total
Total
£
£
£
£
Ordinary shares
Interim dividend paid
4.52
164.52
226,000
8,226,000
MCLEAN & APPLETON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 19 -
13
Property, plant and equipment
Land and buildings
Assets under construction
Plant and machinery
Total
£
£
£
£
Cost
At 1 February 2024
30,586,813
281,493
30,868,306
Additions
245,653
30,823
276,476
Disposals
(58,548)
(58,548)
Transfer to investment property
(936,450)
(936,450)
At 31 January 2025
29,650,363
245,653
253,768
30,149,784
Accumulated depreciation and impairment
At 1 February 2024
2,526,764
131,719
2,658,483
Charge for the year
397,061
58,166
455,227
Eliminated on disposal
(58,548)
(58,548)
On assets reclassified as investment property
(103,103)
(103,103)
At 31 January 2025
2,820,722
131,337
2,952,059
Carrying amount
At 31 January 2025
26,829,641
245,653
122,431
27,197,725
At 31 January 2024
28,060,049
149,774
28,209,823
Included within land and buildings above is land, with an estimated value of £10.0m (2024: £10.6m) which is not depreciated.
Included within land and buildings above is a leasehold land and building, with a net book value of £10.5m (2024: £10.7m).
14
Investment property
2025
£
Fair value
At 1 February 2024
220,000
Transfers from owner-occupied property
833,347
At 31 January 2025
1,053,347
Accumulated depreciation
Impairment losses
120,000
At 31 January 2025
120,000
Carrying value
At 31 January 2025
933,347
At 31 January 2024
220,000
MCLEAN & APPLETON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
14
Investment property
(Continued)
- 20 -
The historical cost of the investment property held throughout the year is £220,000.
Also included in investment property is a transfer from fixed assets with a historical cost of £936,450.
The directors have assessed the fair value of the investment properties as at the reporting date and believe that the carrying amount approximates fair value. This assessment was based on market data, recent transactions, and other relevant valuation inputs.
15
Investments
Current
Non-current
2025
2024
2025
2024
£
£
£
£
Investments in subsidiaries
3,103,063
3,103,063
Other investments
-
-
267,754
307,645
3,370,817
3,410,708
The company has not designated any financial assets that are not classified as held for trading as financial assets at fair value through profit or loss.
Fair value of financial assets carried at amortised cost
The directors believe that the carrying amounts of financial assets carried at amortised cost in the financial statements are approximate to their fair values.
Movements in non-current investments
Shares in group undertakings
Other
Total
£
£
£
Cost or valuation
At 1 February 2024
3,103,063
307,645
3,410,708
Disposals
-
(39,891)
(39,891)
At 31 January 2025
3,103,063
267,754
3,370,817
Carrying amount
At 31 January 2025
3,103,063
267,754
3,370,817
At 31 January 2024
3,103,063
307,645
3,410,708
MCLEAN & APPLETON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 21 -
16
Subsidiaries
Details of the company's subsidiaries at 31 January 2025 are as follows:
Name of undertaking
Registered office
Principal activities
% Held
Direct
Voting
Warrington Garages Limited
See below
Garage proprietors
99.95
99.95
Nationwide Motor Contracts Limited
See below
Administration of the Employee Car Ownership Scheme
100.00
100.00
Hatfields Garages Limited
See below
Garage proprietors
100.00
100.00
Ernest W Hatfield Limited
See below
Dormant
100.00
100.00
Halifax Garages Limited
See below
Dormant
100.00
100.00
All of the subsidiaries have the same registered office being Hatfields, Thornton Road, Pickering.
17
Trade and other receivables
2025
2024
£
£
Trade receivables
127,685
112,319
VAT recoverable
459,956
292,978
Amounts owed by group undertakings
31,283,511
24,951,166
Other receivables
3,130,955
3,130,955
Prepayments and accrued income
265,312
318,764
35,267,419
28,806,182
Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost.
Amounts owed from group undertakings are unsecured, interest free and repayable on demand.
18
Fair value of financial liabilities
The directors consider that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.
19
Borrowings
Current
Non-current
2025
2024
2025
2024
£
£
£
£
Borrowings held at amortised cost:
Bank overdrafts
28,163,475
22,571,632
-
-
Bank loans
1,250,000
1,250,000
5,812,500
7,062,500
Other loans
489,639
778,454
-
-
MCLEAN & APPLETON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
19
Borrowings
(Continued)
- 22 -
2025
2024
£
£
Secured borrowings included above:
Bank overdrafts
28,163,475
22,571,632
Bank loans
7,062,500
8,312,500
Other loans
489,639
778,454
35,715,614
31,662,586
The bank overdraft facilities are secured by unscheduled mortgage debentures incorporating a fixed and floating charge over all current and future assets of the group. The bank also holds a first legal charge over a number of the company's properties.
Bank loans are repayable in quarterly instalments with final payment in 2027. Interest is charged on a floating rate basis, under which the interest rate will never be less than 1.45%.
Other loans are not subject to interest and are secured by unscheduled mortgage debentures incorporating a fixed and floating charge over all current and future assets of the group.
20
Trade and other payables
2025
2024
£
£
Trade payables
290,081
210,998
Amounts owed to group undertakings
4,851,705
12,851,705
Accruals and deferred income
434,757
238,953
5,576,543
13,301,656
Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
21
Liabilities
Current
Non-current
2025
2024
2025
2024
Notes
£
£
£
£
Borrowings
29,903,114
24,600,086
5,812,500
7,062,500
Trade and other payables
20
5,576,543
13,301,656
Corporation tax
7,944
262,352
-
-
Other taxation and social security
57,910
54,755
-
-
35,545,511
38,218,849
5,812,500
7,062,500
MCLEAN & APPLETON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 23 -
22
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
ACAs
£
Liability at 1 February 2023
924,775
Deferred tax movements in prior year
Charge to profit or loss
45,767
Liability at 1 February 2024
970,542
Deferred tax movements in current year
Charge to profit or loss
(121,691)
Liability at 31 January 2025
848,851
23
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
230,233
26,123
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
24
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50,000
50,000
50,000
50,000
The holders of ordinary shares are entitled to receive dividends. All ordinary shares rank equally with regard to the Company's residual assets.
25
Contingent liabilities
The company is party to composite guarantees given to its bankers in respect of overdrafts and loans granted to its parent company and fellow subsidiaries. The maximum involved under these guarantees at 31 January 2025 was £nil (2024: £nil).
MCLEAN & APPLETON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 24 -
26
Other leasing information
Lessor
The operating lease represents the lease of the investment property to third party. The lease is on a rolling basis and therefore, there are no commitments at the year end.
27
Related party transactions
Rent of £180k was paid to a trust in which a director is a trustee. At the year end a balance of £83k was owed to the trust (2024: £164k).
The company owes amounts to the directors and their family members. At the year end these balances totalled £0.4m (2024: £0.6m).
At the year end amounts were owed from companies in which Mr G Williams has significant influence of £3.1m (2024: £3.1m). No interest is payable on the loans which are repayable on demand.
During the year, family members of directors received employee benefits of £360k (2024: £164k).
28
Controlling party
The company's parent is McLean & Appleton (Holdings) Limited and it is under the ultimate control of Mr G S Williams.
The company is included in the consolidated accounts of McLean & Appleton (Holdings) Limited available from its registered office, Hatfields, Calder Island way, Denby Dale Road, Wakefield.
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