MRL Group Limited
Annual report and Financial Statements
For the year ended 30 September 2024
MRL Group Limited
Company information
Director
Mr S Lightfoot
Company number
10203589
Registered office
Unit B1 Cinderhill Trading Estate
Weston Coyney Road
Longton
Stoke on Trent
ST3 5LB
Auditor
DJH Audit Limited
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
MRL Group Limited
Contents
Page
Strategic report
1 - 3
Director's report
4
Director's responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group statement of financial position
10 - 11
Company statement of financial position
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 35
MRL Group Limited
Strategic report
For the year ended 30 September 2024
- 1 -
The director presents the strategic report for the year ended 30 September 2024.
Review of the business
This report aims to provide 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 nature of our business and is written in the context of the risks and uncertainties we face.
The principal activity of the group continued to be the design, fabrication and erection of structural steel frame buildings.
We consider that our key performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover and gross margin.
Turnover decreased to £17.981M from £18.059M in the previous year. However, the gross profit percentage increased to 20.7% from 20.3% in the previous year. This has meant that the group achieved an increase in gross profit of £56K to £3.724M (2023: £3.668M).
The principal reasons for the increase in turnover are largely due to steel prices reducing from an all time high, so although the purchase price of steel has dropped, the business has been able to maintain a good rate of the sales price that is passed onto customers (within the trade of Reynolds and Litchfield Limited).
MRL Group has a long-standing relationship with the supply chain and as a result of those relationships the group have managed customer expectations.
During the year, the group invested further in new vehicles with lower emissions.
The financial position of the group remained strong at the year end, with net current assets increasing by £661K to £5.293M (2023: £4.633M).
Although the cash balance has decreased by £288K on the previous year to £3.250M (2023: £3.539M), the group overall still maintains a strong cashflow position.
At the balance sheet date, net assets have increased by £1.297M to £7.505M (2023: £6.208M).
The directors are extremely pleased with this year’s results and the financial position at the year end. A comprehensive review of costs, margins and expenses is carried out on a constant basis throughout the year.
MRL Group Limited
Strategic report (continued)
For the year ended 30 September 2024
- 2 -
Principal risks and uncertainties
The business environment remains challenging, with the group continuing to operate in a competitive landscape. In addition, our performance is influenced by consumer spending habits and purchasing policies.
As the group undertakes larger contracts, the risk of bad debts may increase, particularly where credit insurance offers limited coverage. This also raises potential exposure to cash flow fluctuations. Nonetheless, the group maintains healthy cash reserves, and the overall risk remains manageable. We look at mitigating risks with better payment terms and upfront payments.
Financial instrument risk
Credit Risk
There is an increased risk of customer default currently of companies in the construction industry.
The group has partially offset its risk with credit insurance in place on a number of customers and closely monitors outstanding debtor amounts against credit ratings. The amounts presented in the balance sheet are net of allowances for doubtful debts. The group's credit risk is spread over a large number of customers and overall the group is not concerned about it’s credit risk exposure.
Liquidity risk
The group remains liquid with sufficient funds to meet its external finance. There is a low liquidity risk present.
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 our control.
Development and performance
The group's future outlook remains highly positive, with strong order book. Ongoing investment in technology is expected to support this growth trajectory and contribute to further improvements in group margins.
During the year, Reynolds and Litchfield Holdings Limited, another subsidiary of MRL Group Limited, acquired an additional investment property. This acquisition enhances the company’s property portfolio and further strengthens the group’s asset base.
The group remains committed to investing in its systems, workforce, and operational processes to enhance its product and service offerings. This approach not only supports current operations but also positions the group to expand into new, high-potential markets offering sustainable and profitable growth.
Environmental sustainability continues to be a priority. Across all subsidiaries, the group is actively working to reduce its carbon footprint and increase recycling efforts. This includes transitioning the entire company vehicle fleet to electric and hybrid models.
Looking ahead, the group will maintain its focus on delivering high-quality, sustainable products and services, with a strong emphasis on minimizing environmental impact and enhancing social responsibility.
MRL Group Limited
Strategic report (continued)
For the year ended 30 September 2024
- 3 -
Key performance indicators
Turnover has decreased to £17.981M from £18.059M in the previous year.
Gross margin percentage, however, has increased this year to 20.7% from 20.3% from in the previous year. The group has also incurred an increase in gross profit of £56.2K to £3.724M (2023: £3.668M).
Administrative expenses were £1.630M compared to £1.492M the previous year, an increase of £138K (9%).
Operating profit for the year was £2.327M (2023: £2.305M).
Group Net Current Assets were £5.293M as at 30th September 2024, a significant increase over the previous year (FY23: £4.633M).
Mr S Lightfoot
Director
24 June 2025
MRL Group Limited
Director's report
For the year ended 30 September 2024
- 4 -
The director presents his annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company continued to be that of a holding company.
The principal activity of the group continued to be that of the design, fabrication and erection of structural steel.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £178,800 (2023 - £125,000). 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 S Lightfoot
Strategic report
The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
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 S Lightfoot
Director
24 June 2025
MRL Group Limited
Director's responsibilities statement
For the year ended 30 September 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;
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.
MRL Group Limited
Independent auditor's report
To the members of MRL Group Limited
- 6 -
Opinion
We have audited the financial statements of MRL Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 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 30 September 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.
MRL Group Limited
Independent auditor's report (continued)
To the members of MRL Group Limited
- 7 -
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.
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.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- 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;
- 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 legislation such as the Companies Act 2006, taxation legislation, data protection, employment, and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations through making enquiries of management and reviewing legal and professional fee invoices.
MRL Group Limited
Independent auditor's report (continued)
To the members of MRL Group Limited
- 8 -
We assessed the susceptibility of the 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 posted during the year and at the year end to identify unusual transactions;
- investigated the rationale behind significant or unusual transactions; and
- performed walkthrough tests on major transaction cycles; and
- performed detailed testing on the significant accounting estimates used by management in evaluating long term contract progress and profitability.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual and potential litigation and claims;
- reviewing correspondence with HMRC; and
- reviewing legal and professional fees incurred during the year to identify any potential indications of non-compliance with laws and regulations.
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.
Nicola Johnson (Senior Statutory Auditor)
For and on behalf of DJH Audit Limited
25 June 2025
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
MRL Group Limited
Group statement of comprehensive income
For the year ended 30 September 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
17,980,858
18,058,634
Cost of sales
(14,256,699)
(14,390,661)
Gross profit
3,724,159
3,667,973
Administrative expenses
(1,630,239)
(1,492,346)
Other operating income
233,271
129,472
Operating profit
4
2,327,191
2,305,099
Interest receivable and similar income
8
33,819
19,801
Interest payable and similar expenses
9
(91,077)
(59,996)
Profit before taxation
2,269,933
2,264,904
Tax on profit
10
(639,619)
(433,637)
Profit for the financial year
26
1,630,314
1,831,267
Profit for the financial year is attributable to:
- Owner of the parent company
1,556,894
1,744,778
- Non-controlling interests
73,420
86,489
1,630,314
1,831,267
Total comprehensive income for the year is attributable to:
- Owner of the parent company
1,556,894
1,744,778
- Non-controlling interests
73,420
86,489
1,630,314
1,831,267
MRL Group Limited
Group statement of financial position
As at 30 September 2024
30 September 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
159,745
179,105
Tangible assets
13
1,109,170
1,027,674
Investment property
14
2,342,000
1,495,000
3,610,915
2,701,779
Current assets
Stocks
17
176,793
174,243
Debtors falling due after more than one year
18
279,603
405,760
Debtors falling due within one year
18
5,232,241
3,955,034
Cash at bank and in hand
3,250,601
3,539,389
8,939,238
8,074,426
Creditors: amounts falling due within one year
19
(3,645,671)
(3,441,856)
Net current assets
5,293,567
4,632,570
Total assets less current liabilities
8,904,482
7,334,349
Creditors: amounts falling due after more than one year
20
(751,455)
(697,708)
Provisions for liabilities
Provisions
22
390,100
211,500
Deferred tax liability
23
258,034
217,218
(648,134)
(428,718)
Net assets
7,504,893
6,207,923
Capital and reserves
Called up share capital
25
400,001
400,001
Profit and loss reserves
26
7,011,380
5,633,286
Equity attributable to owner of the parent company
7,411,381
6,033,287
Non-controlling interests
93,512
174,636
7,504,893
6,207,923
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
MRL Group Limited
Group statement of financial position (continued)
As at 30 September 2024
30 September 2024
- 11 -
The financial statements were approved and signed by the director and authorised for issue on 24 June 2025
24 June 2025
Mr S Lightfoot
Director
Company registration number 10203589 (England and Wales)
MRL Group Limited
Company statement of financial position
As at 30 September 2024
30 September 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
734,816
678,369
Investments
15
1,815,193
1,815,509
2,550,009
2,493,878
Current assets
Debtors
18
2,659,783
1,918,265
Cash at bank and in hand
1,023,631
1,112,510
3,683,414
3,030,775
Creditors: amounts falling due within one year
19
(693,638)
(920,372)
Net current assets
2,989,776
2,110,403
Total assets less current liabilities
5,539,785
4,604,281
Creditors: amounts falling due after more than one year
20
(339,331)
(409,944)
Provisions for liabilities
Deferred tax liability
23
71,179
57,113
(71,179)
(57,113)
Net assets
5,129,275
4,137,224
Capital and reserves
Called up share capital
25
400,001
400,001
Profit and loss reserves
26
4,729,274
3,737,223
Total equity
5,129,275
4,137,224
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,170,851 (2023 - £1,234,697 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved and signed by the director and authorised for issue on 24 June 2025
24 June 2025
Mr S Lightfoot
Director
Company registration number 10203589 (England and Wales)
MRL Group Limited
Group statement of changes in equity
For the year ended 30 September 2024
- 13 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 October 2022
400,001
4,013,508
4,413,509
117,867
4,531,376
Year ended 30 September 2023:
Profit and total comprehensive income
-
1,744,778
1,744,778
86,489
1,831,267
Dividends
11
-
(125,000)
(125,000)
(29,720)
(154,720)
Balance at 30 September 2023
400,001
5,633,286
6,033,287
174,636
6,207,923
Year ended 30 September 2024:
Profit and total comprehensive income
-
1,556,894
1,556,894
73,420
1,630,314
Dividends
11
-
(178,800)
(178,800)
(154,544)
(333,344)
Balance at 30 September 2024
400,001
7,011,380
7,411,381
93,512
7,504,893
MRL Group Limited
Company statement of changes in equity
For the year ended 30 September 2024
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
400,001
2,627,526
3,027,527
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
1,234,697
1,234,697
Dividends
11
-
(125,000)
(125,000)
Balance at 30 September 2023
400,001
3,737,223
4,137,224
Year ended 30 September 2024:
Profit and total comprehensive income
-
1,170,851
1,170,851
Dividends
11
-
(178,800)
(178,800)
Balance at 30 September 2024
400,001
4,729,274
5,129,275
MRL Group Limited
Group statement of cash flows
For the year ended 30 September 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
1,594,288
2,489,369
Income taxes paid
(648,566)
(415,520)
Net cash inflow from operating activities
945,722
2,073,849
Investing activities
Purchase of tangible fixed assets
(194,703)
(224,699)
Proceeds from disposal of tangible fixed assets
28,666
10,023
Purchase of investment property
(748,707)
(84,406)
Proceeds from disposal of investment property
-
315,419
Purchase of subsidiaries, net of cash acquired
-
(678,895)
Repayment of loans to a director
-
(24,326)
Interest received
33,819
19,801
Net cash used in investing activities
(880,925)
(667,083)
Financing activities
Proceeds from new bank loans
319,000
721,250
Repayment of bank loans
(248,164)
(217,455)
Interest paid
(91,077)
(59,996)
Dividends paid to equity shareholders
(178,800)
(125,000)
Dividends paid to non-controlling interests
(154,544)
(29,720)
Net cash (used in)/generated from financing activities
(353,585)
289,079
Net (decrease)/increase in cash and cash equivalents
(288,788)
1,695,845
Cash and cash equivalents at beginning of year
3,539,389
1,843,544
Cash and cash equivalents at end of year
3,250,601
3,539,389
MRL Group Limited
Notes to the group financial statements
For the year ended 30 September 2024
- 16 -
1
Accounting policies
Company information
MRL Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit B1 Cinderhill Trading Estate, Weston Coyney Road, Longton, Stoke on Trent, Staffordshire, ST3 5LB.
The group consists of MRL Group 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. 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 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
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.
MRL Group Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company MRL Group Limited together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 30 September 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.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
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
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated on a survey basis by quantity surveyors. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
Amounts recoverable on construction contracts are included in debtors and are valued, inclusive of profit, at work executed at contract prices plus variations. Any work invoiced in advance of the work being completed is recorded in creditors. Contracts are valued based on managements judgement for each individual contract.
Turnover and costs on contracts are recognised as activity progresses once the outcome can be assessed with reasonable certainty. Full provision is made for anticipated future losses. Where contract payments received exceed amounts recoverable, these amounts are included in creditors.
Other income from rentals of property are recognised when the amount of income can be measured reliably, it is probable that the economical benefits associated with the transactions will flow to the entity and the costs incurred in respect of the transaction can be measured reliably.
MRL Group Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
- 18 -
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
1.7
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Freehold buildings
2% straight line
Electrical Installation
10%/20% on reducing balance
Leasehold improvements
10% on reducing balance
Plant and equipment
10% on reducing balance/25% straight line
Fixtures and fittings
10% on reducing balance/15% straight line
Computers
10% on reducing balance/25% straight line
Motor vehicles
25% on reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.
1.8
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.
1.9
Fixed asset investments
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.
1.10
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Recoverable amount is the higher of fair value less costs to sell and value in use.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.
MRL Group Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
- 19 -
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 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 in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
1.11
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Cost is calculated using the first in first out method.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.12
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks.
1.13
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets 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.
MRL Group Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
- 20 -
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.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.14
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.
1.15
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.
MRL Group Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
- 21 -
1.16
Provisions
Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
1.17
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.
1.18
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.19
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
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
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the director is 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.
Critical judgements in applying the Group's accounting policies
In the director's opinion there are no critical judgements, apart from those involving estimations (dealt with separately below), that they have made in applying group's accounting policies and that have had a significant effect on the amounts recognised in the financial statements.
MRL Group Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 22 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Valuation of contracts
Management review each construction contract ongoing at the year end in order to obtain an accurate valuation of the work completed to date and therefore any profits or losses on contract to recognise. Management recognise profits on contracts once the outcome can be measured with reasonable certainty. Management will review the level of work completed and the costs incurred on each individual contract at the year end and then estimate the likelihood of recoverability of the applied for balances in excess of the certified amounts (confirmed directly by the customer) with reference to post year end certifications. The contract valuation will be adjusted based on this, with any balances that are unlikely to be recovered being provided against.
Any anticipated future losses are provided for in full. Uncertainties in the valuation of individual contracts relate to the actual values recoverable on each contract.
Ageing of retentions
Management have estimated that 50% of the retentions balance on ongoing contracts will not be due within the next 12 months on the basis that half of the retention is released on completion of a contract, whilst the remaining half is released 12 to 24 months after this date.
Uncertainties in the ageing of this retention balance relate to the actual timing of the contract completion dates.
Valuation of investment properties
Investment properties are measured using the fair value model and as such this requires significant estimation from the director. The valuations are based on the director's knowledge of the portfolio of investment properties, taking account of geographical locations and estimated rental values and, where relevant, recent valuations performed by external experts.
Contract cost provision
A contract cost provision has been included, which management has calculated based on actual rectification works after date, along with an estimation of additional costs that they expect to be incurred in the next 12 months.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Construction
16,064,627
14,583,454
Steel sales
1,916,231
3,475,180
17,980,858
18,058,634
MRL Group Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
3
Turnover and other revenue
(Continued)
- 23 -
2024
2023
£
£
Other revenue
Interest income
33,819
19,801
Grants received
1,500
500
Increase in fair value of investment property
98,293
30,594
Rental income
133,478
98,378
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(1,500)
(500)
Depreciation of owned tangible fixed assets
87,304
55,030
(Profit)/loss on disposal of tangible fixed assets
(2,763)
1,193
(Profit)/loss on disposal of investment property
9,581
Amortisation of intangible assets
19,360
15,981
Operating lease charges
105,311
67,020
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
6,500
5,000
Audit of the financial statements of the company's subsidiaries
35,000
33,000
41,500
38,000
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
Directors
1
1
-
-
Administration
13
14
-
-
Direct salaries
28
22
-
-
Total
42
37
MRL Group Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
6
Employees
(Continued)
- 24 -
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,547,192
1,279,075
Social security costs
161,204
136,020
-
-
Pension costs
165,728
92,947
1,874,124
1,508,042
7
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
53,271
11,627
Company pension contributions to defined contribution schemes
100,295
60,000
153,566
71,627
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
25,837
12,379
Other interest income
7,982
7,422
Total income
33,819
19,801
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
70,865
59,996
Other interest
20,212
-
Total finance costs
91,077
59,996
MRL Group Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
- 25 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
538,376
400,995
Adjustments in respect of prior periods
59,319
Total current tax
597,695
400,995
Deferred tax
Origination and reversal of timing differences
40,816
32,642
Adjustment in respect of prior periods
1,108
Total deferred tax
41,924
32,642
Total tax charge
639,619
433,637
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
2,269,933
2,264,904
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
567,483
566,226
Tax effect of expenses that are not deductible in determining taxable profit
5,219
2,253
Effect of change in corporation tax rate
-
(62,333)
Depreciation on assets not qualifying for tax allowances
41
46
Amortisation on assets not qualifying for tax allowances
4,840
3,995
Other permanent differences
(13,654)
Under/(over) provided in prior years
60,427
Deferred tax adjustments in respect of prior years
(552)
648
Enhanced capital allowances
(2,591)
Deferred tax under provided for current year
2,161
(223)
Corporation tax under provided for current year
(60,730)
Taxation charge
639,619
433,637
MRL Group Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
- 26 -
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
178,800
125,000
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 October 2023 and 30 September 2024
195,086
Amortisation and impairment
At 1 October 2023
15,981
Amortisation charged for the year
19,360
At 30 September 2024
35,341
Carrying amount
At 30 September 2024
159,745
At 30 September 2023
179,105
The company had no intangible fixed assets at 30 September 2024 or 30 September 2023.
MRL Group Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
- 27 -
13
Tangible fixed assets
Group
Freehold buildings
Electrical Installation
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
£
Cost
At 1 October 2023
600,000
1,101
79,491
335,287
88,822
178,948
306,860
1,590,509
Additions
87,333
7,564
5,811
93,995
194,703
Disposals
(31,250)
(58,415)
(89,665)
At 30 September 2024
600,000
1,101
79,491
391,370
96,386
184,759
342,440
1,695,547
Depreciation and impairment
At 1 October 2023
9,830
1,101
39,101
239,133
28,424
64,789
180,457
562,835
Depreciation charged in the year
12,058
4,038
12,416
9,943
11,772
37,077
87,304
Eliminated in respect of disposals
(17,798)
(45,964)
(63,762)
At 30 September 2024
21,888
1,101
43,139
233,751
38,367
76,561
171,570
586,377
Carrying amount
At 30 September 2024
578,112
36,352
157,619
58,019
108,198
170,870
1,109,170
At 30 September 2023
590,170
40,390
96,154
60,398
114,159
126,403
1,027,674
MRL Group Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
- 28 -
Company
Freehold buildings
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 October 2023
602,879
19,552
18,330
54,060
694,821
Additions
80,000
80,000
At 30 September 2024
602,879
99,552
18,330
54,060
774,821
Depreciation and impairment
At 1 October 2023
330
6,463
6,304
3,355
16,452
Depreciation charged in the year
12,058
5,221
1,203
5,071
23,553
At 30 September 2024
12,388
11,684
7,507
8,426
40,005
Carrying amount
At 30 September 2024
590,491
87,868
10,823
45,634
734,816
At 30 September 2023
602,549
13,089
12,026
50,705
678,369
14
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 October 2023
1,495,000
-
Additions through external acquisition
748,707
-
Net gains or losses through fair value adjustments
98,293
-
At 30 September 2024
2,342,000
-
The fair value of the investment property has been arrived at on the basis of a valuation carried out at the year end by the director. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties, and, in some instances, advice from external experts.
The historic cost of investment properties as at 30 September 2024 was £1,921,645 (2023 - £1,172,938).
15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
16
1,815,193
1,815,509
MRL Group Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
15
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2023 and 30 September 2024
1,815,509
Impairment
At 1 October 2023
-
Impairment losses
316
At 30 September 2024
316
Carrying amount
At 30 September 2024
1,815,193
At 30 September 2023
1,815,509
16
Subsidiaries
Details of the company's subsidiaries at 30 September 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Reynolds and Litchfield Limited
Unit B1 Cinderhill Industrial Estate, Weston Coyney Road, Stoke-On-Trent, Staffordshire, ST3 5LB
Construction of steel structures
Ordinary A & B
95.00
Reynolds and Litchfield Structures Limited
As above
Dormant company
Ordinary
100.00
Reynolds & Litchfield Holdings Limited
As above
Property rental
Ordinary A & B
100.00
A.D.Hall Limited
Chemical Lane, Longbridge Hayes Industral Estate, Stoke-On-Trent, Staffordshire, England, ST6 4PB
Steel stockholders
Ordinary A
95.00
Reynolds & Litchfield Holdings Limited (company no 09644986) is exempt from audit by virtue of section 479A of the Companies Act 2006.
17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
86,154
85,135
-
-
Finished goods and goods for resale
90,639
89,108
176,793
174,243
-
-
MRL Group Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
- 30 -
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,359,173
2,468,072
Amounts recoverable on contract
300,166
629,557
Corporation tax recoverable
96,508
93,065
96,508
93,065
Amounts owed by group undertakings
-
-
1,552,269
1,534,103
Other debtors
1,405,757
696,448
1,011,006
291,097
Prepayments and accrued income
70,637
67,892
5,232,241
3,955,034
2,659,783
1,918,265
Amounts falling due after more than one year:
Trade debtors
279,603
405,760
Total debtors
5,511,844
4,360,794
2,659,783
1,918,265
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
21
48,853
31,764
22,839
14,871
Payments received on account
15,700
Trade creditors
2,929,241
2,771,030
15,191
Amounts owed to group undertakings
646,665
870,665
Corporation tax payable
362,031
408,351
3,443
8,210
Other taxation and social security
53,329
30,430
-
80
Other creditors
51,425
37,441
16,667
Accruals and deferred income
185,092
162,840
5,500
9,879
3,645,671
3,441,856
693,638
920,372
20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
21
751,455
697,708
339,331
409,944
MRL Group Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
20
Creditors: amounts falling due after more than one year
(Continued)
- 31 -
Amounts included above which fall due after five years are as follows:
Payable by instalments
494,384
289,702
257,981
154,560
Payable other than by instalments
89,405
101,321
-
-
583,789
391,023
257,981
154,560
21
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
800,308
729,472
362,170
424,815
Payable within one year
48,853
31,764
22,839
14,871
Payable after one year
751,455
697,708
339,331
409,944
The long-term loans are secured by way of fixed and floating charges and a negative pledge over all assets owned by the company and a legal charge over property at Chemical lane.
The director has also given a limited guarantee of £100,000.
The long-term bank loans are for mixed periods of 12.56, 15, 20 or 25 years from the initial date of drawdown. 3 loans are interest rates plus basic rate.
There are two loans that require repayment at the end of their 25 year term, in June 2045 & February 2046. Interest is paid on these loans at a rate of 3.78% & 3.29% respectively on an interest only basis.
A loan was taken out during last year that requires repayment at the end of its 20 year term, in September 2043. Interest paid on this loan is at a rate of 5% on an interest only basis.
Two further new loans were taken out during the year where payments are on a repayment basis, both over a term of 15 years. Interest is being paid on both of the the loans at a rate of 2.5% and both are due to be fully repaid by December 2037.
22
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Contract cost provision
390,100
211,500
-
-
MRL Group Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
22
Provisions for liabilities
(Continued)
- 32 -
Movements on provisions:
Contract cost provision
Group
£
At 1 October 2023
211,500
Additional provisions in the year
178,600
At 30 September 2024
390,100
The contract cost provision is made up of amounts provided for in relation to estimated future costs to be incurred on the completion of contracts, based on the expected profitability of each contract.
23
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
122,464
136,718
Revaluations
143,829
80,500
Retirement benefit obligations
(8,259)
-
258,034
217,218
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
71,179
57,113
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 October 2023
217,218
57,113
Charge to profit or loss
40,816
14,066
Liability at 30 September 2024
258,034
71,179
MRL Group Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
- 33 -
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
165,728
92,947
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. Contributions totalling £37,108 (2023 - £6,083) were payable to the fund at the balance sheet date and are included in creditors.
25
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
400,001
400,001
400,001
400,001
Each ordinary share has full voting rights, full dividend rights and the right to participate in distributions on winding up.
26
Reserves
Profit and loss reserves
Profit and loss reserves are made up of accumulated profits less accumulated losses and distributions up to the reporting date. This is a distributable reserve.
27
Related party transactions
Transactions with group companies
During the year, MRL Group Limited received dividends totalling £1,240,000 (2023 - £1,250,000) from Reynolds and Litchfield Limited. Total balances outstanding from this company at the year-end totalled £585,933 (2023 - £1,093,876).
Transactions with other related parties
During the prior year, the company received loan repayments from a company with a common director and shareholder (2023 - £Nil).
The total balance outstanding from this company at the year-end totalled £7,500 (2023 - £7,500).
Compensation to key management personnel in the year amounted to £152,944 (2023 - £103,672).
Compensation to close family members of key management personnel in the year amounted to £132,150 (2023 - £88,434).
During the year, the company loaned £691,086 to a company under common control of director and shareholder. The amount due from the company at the year end was £691,086 (2023 - £Nil). The loan is interest free and repayable on demand.
MRL Group Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
- 34 -
28
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
58,887
74,122
-
-
Between two and five years
87,111
92,417
-
-
145,998
166,539
-
-
29
Non-controlling interests
Reynolds and Litchfield Limited is a 95% subsidiary of MRL Group Limited and during the year, A.D Hall also became a 95% subsidiary of MRL Group Limited. The non-controlling interest at the financial year-end was £93,512 (2023 - £174,636) and the share of profit on ordinary activities after taxation was £73,420 (2023 - £86,489). Dividends were also paid to the non-controlling interest during the year of £154,544 (2023 - £29,720).
30
Directors' transactions
Dividends totalling £178,800 (2023 - £125,000) were paid in the year in respect of shares held by the company's directors.
Loans have been granted to the director on the basis that interest is charged at HMRC's official rate of interest per annum, where the balance exceeds £10,000.
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Mr S Lightfoot - Directors loan account
2.25
283,598
182,920
6,081
(178,800)
293,799
283,598
182,920
6,081
(178,800)
293,799
31
Controlling party
The ultimate controlling party of the group is S Lightfoot.
MRL Group Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
- 35 -
32
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,630,314
1,831,267
Adjustments for:
Taxation charged
639,619
433,637
Finance costs
91,077
59,996
Investment income
(33,819)
(19,801)
(Gain)/loss on disposal of tangible fixed assets
(2,763)
1,193
(Gain)/loss on disposal of investment property
9,581
Fair value gain on investment properties
(98,293)
(30,594)
Amortisation and impairment of intangible assets
19,360
15,981
Depreciation and impairment of tangible fixed assets
87,304
55,030
Increase in provisions
178,600
211,500
Movements in working capital:
(Increase)/decrease in stocks
(2,550)
1,206
(Increase)/decrease in debtors
(1,147,607)
1,652,872
Increase/(decrease) in creditors
233,046
(1,732,499)
Cash generated from operations
1,594,288
2,489,369
33
Analysis of changes in net funds - group
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
3,539,389
(288,788)
3,250,601
Borrowings excluding overdrafts
(729,472)
(70,836)
(800,308)
2,809,917
(359,624)
2,450,293
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