Group M Services Limited
Annual Report and Financial Statements
For the year ended 30 September 2024
Company Registration No. 03705227 (England and Wales)
Group M Services Limited
Company Information
Directors
M C Denmark
R W G Whitehair
R E Elliot
C N C Denmark
T C M Denmark
Secretary
R W G Whitehair
Company number
03705227
Registered office
47 Great Marlborough Street
London
W1F 7JP
Auditor
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
Group M Services Limited
Contents
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 21
Group M Services Limited
Strategic Report
For the year ended 30 September 2024
Page 1
The directors present the strategic report for the year ended 30 September 2024.
Fair review of the business
The company's principal activity is that of group management services on behalf of the Media Concierge (Holdings) Group. There have been no significant changes in these activities during the year ending 30 September 2024.
Principal risks and uncertainties
The company provides the business services to the Media Concierge (Holding) Group. There has been no significant change to those activities being services provided to the UK and ROI business and with the group trading profitability in both regions the company will continue to provide those services.
Some of the services are provided to the ROI and as such there is some risk in relation to foreign currency rates. These risks are minimised by matching where possible payments and receipts in local currencies. The company does not make use of derivatives or other financial instruments.
The company had net cash at 30 September 2024 of £3.6m (2023: £2.5m). In addition, the company owns on behalf of the group two Freehold Land and Buildings with a combined NBV of £4.2m (2023: £3.7m).
R E Elliot
Director
28 March 2025
Group M Services Limited
Directors' Report
For the year ended 30 September 2024
Page 2
The directors present their 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 management services for associated group companies.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £1,500,000 (2023: £4,000,000). The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
M C Denmark
R W G Whitehair
R E Elliot
C N C Denmark
T C M Denmark
Auditor
The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
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;
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.
Group M Services Limited
Directors' Report (Continued)
For the year ended 30 September 2024
Page 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
R E Elliot
Director
28 March 2025
Group M Services Limited
Independent Auditor's Report
To the Member of Group M Services Limited
Page 4
Opinion
We have audited the financial statements of Group M Services Limited (the 'company') for the year ended 30 September 2024 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 September 2024 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.
Group M Services Limited
Independent Auditor's Report (Continued)
To the Member of Group M Services Limited
Page 5
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.
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.
Group M Services Limited
Independent Auditor's Report (Continued)
To the Member of Group M Services Limited
Page 6
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.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Group M Services Limited
Independent Auditor's Report (Continued)
To the Member of Group M Services Limited
Page 7
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
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 objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Paul Springfield
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
31 March 2025
Chartered Accountants
Statutory Auditor
6th Floor
9 Appold Street
London
EC2A 2AP
Group M Services Limited
Statement of Comprehensive Income
For the year ended 30 September 2024
Page 8
2024
2023
Notes
£
£
Turnover
3
9,074,258
10,370,635
Administrative expenses
(7,621,986)
(6,696,138)
Other operating income
139,519
22,500
Operating profit
4
1,591,791
3,696,997
Interest payable and similar expenses
8
(150,000)
(102,778)
Profit before taxation
1,441,791
3,594,219
Tax on profit
9
(676,251)
(836,032)
Profit for the financial year
765,540
2,758,187
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Group M Services Limited
Balance Sheet
As at 30 September 2024
Page 9
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
7,877,408
6,055,360
Current assets
Debtors
12
10,223,777
12,719,619
Cash at bank and in hand
3,645,803
2,518,860
13,869,580
15,238,479
Creditors: amounts falling due within one year
13
(19,808,264)
(18,707,837)
Net current liabilities
(5,938,684)
(3,469,358)
Total assets less current liabilities
1,938,724
2,586,002
Provisions for liabilities
Provisions
14
(218,654)
(218,654)
Deferred tax liability
15
(87,182)
(305,836)
(218,654)
Net assets
1,632,888
2,367,348
Capital and reserves
Called up share capital
17
100
100
Profit and loss reserves
1,632,788
2,367,248
Total equity
1,632,888
2,367,348
The financial statements were approved by the board of directors and authorised for issue on 28 March 2025 and are signed on its behalf by:
R E Elliot
Director
Company Registration No. 03705227
Group M Services Limited
Statement of Changes in Equity
For the year ended 30 September 2024
Page 10
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
100
3,609,061
3,609,161
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
2,758,187
2,758,187
Dividends
10
-
(4,000,000)
(4,000,000)
Balance at 30 September 2023
100
2,367,248
2,367,348
Year ended 30 September 2024:
Profit and total comprehensive income for the year
-
765,540
765,540
Dividends
10
-
(1,500,000)
(1,500,000)
Balance at 30 September 2024
100
1,632,788
1,632,888
Group M Services Limited
Notes to the Financial Statements
For the year ended 30 September 2024
Page 11
1
Accounting policies
Company information
Group M Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is 47 Great Marlborough Street, London, W1F 7JP.
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.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors of the parent company, Media Concierge (Holdings) Limited, have prepared a cash flow forecast for a period of 12 months from the date of approval of these financial statements which indicates that the group and company will have sufficient funds to meet liabilities as they fall due for that period. The cash flow forecast has assessed the impacts of external factors and has concluded that there is no significant impact to the going concern status of the company. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.true
1.3
Turnover
Turnover is recognised at the fair value of consideration received or receivable for management services provided in the normal course of business, and is shown net of VAT and other sales related taxes with any amounts unbilled at the end of the period fully accrued. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
Over 50 years
Leasehold land and buildings
Over the length of the lease
Fixtures and fittings
8 years straight line
Computers
3 - 5 years straight line
Motor vehicles
2 - 4 years 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 credited or charged to profit or loss.
1.5
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.
Group M Services Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
Page 12
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the fair value of proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Group M Services Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
Page 13
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other periods 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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.9
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company 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. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Group M Services Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
Page 14
1.12
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 leases 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 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 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.
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.
Useful economic life of tangible assets
The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 11 for the carrying amount of the property, plant and equipment and note 1.4 for the useful economic lives for each class of asset.
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Group recharges
9,074,258
10,370,635
Group M Services Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2024
Page 15
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
161,882
(133,380)
Depreciation of owned tangible fixed assets
1,048,467
660,046
Profit on disposal of tangible fixed assets
(265,000)
-
Operating lease charges
619,795
659,386
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
250,000
280,000
For other services
Taxation compliance services
20,000
18,000
Other taxation services
-
9,000
Accountancy services
12,000
15,000
All other non-audit services
-
20,000
32,000
62,000
The audit fees and other compliance fees reported above are for the group and are borne by this entity.
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
29
31
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
901,255
985,461
Social security costs
214,867
227,026
Pension costs
39,159
44,298
1,155,281
1,256,785
Group M Services Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2024
Page 16
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
526,608
590,529
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
191,333
213,962
8
Interest payable and similar expenses
2024
2023
£
£
Other interest
150,000
102,778
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
517,468
836,032
Adjustments in respect of prior periods
(99,873)
Total current tax
417,595
836,032
Deferred tax
Origination and reversal of timing differences
258,656
Total tax charge
676,251
836,032
Group M Services Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2024
9
Taxation
(Continued)
Page 17
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,441,791
3,594,219
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
360,448
898,555
Tax effect of expenses that are not deductible in determining taxable profit
86,775
46,558
Adjustments in respect of prior years
(99,873)
Depreciation on assets not qualifying for tax allowances
328,901
Tax at marginal rate
(109,081)
Taxation charge for the year
676,251
836,032
10
Dividends
2024
2023
£
£
Final paid
1,500,000
4,000,000
Group M Services Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2024
Page 18
11
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 October 2023
4,431,810
1,584,567
768,547
1,137,128
3,000,844
10,922,896
Additions
794,035
652,032
469,951
114,403
840,094
2,870,515
Disposals
(531,092)
(531,092)
At 30 September 2024
5,225,845
2,236,599
1,238,498
1,251,531
3,309,846
13,262,319
Depreciation and impairment
At 1 October 2023
711,953
357,053
377,721
897,187
2,523,622
4,867,536
Depreciation charged in the year
277,332
219,611
151,727
103,285
296,512
1,048,467
Eliminated in respect of disposals
(531,092)
(531,092)
At 30 September 2024
989,285
576,664
529,448
1,000,472
2,289,042
5,384,911
Carrying amount
At 30 September 2024
4,236,560
1,659,935
709,050
251,059
1,020,804
7,877,408
At 30 September 2023
3,719,857
1,227,514
390,826
239,941
477,222
6,055,360
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
51,814
Corporation tax recoverable
483,317
483,317
Amounts owed by group undertakings
5,770,836
7,956,228
Other debtors
3,469,696
3,673,315
Prepayments and accrued income
448,114
435,285
10,223,777
12,548,145
Deferred tax asset (note 15)
171,474
10,223,777
12,719,619
Group M Services Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2024
Page 19
13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
145,740
237,964
Amounts owed to group undertakings
17,341,382
15,336,624
Corporation tax
868,092
1,591,014
Other taxation and social security
209,681
209,279
Other creditors
43,506
24,221
Accruals and deferred income
1,199,863
1,308,735
19,808,264
18,707,837
14
Provisions for liabilities
2024
2023
£
£
Dilapidations provision
218,654
218,654
Movements on provisions:
Dilapidations provision
£
At 1 October 2023 and 30 September 2024
218,654
The provisions relate to the obligation under operating leases to correct any damage caused on expiry of lease. This is expected to be utilised within 2 to 5 years.
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
87,182
-
-
171,474
Group M Services Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2024
15
Deferred taxation
(Continued)
Page 20
2024
Movements in the year:
£
Asset at 1 October 2023
(171,474)
Charge to profit or loss
258,656
Liability at 30 September 2024
87,182
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
39,159
44,298
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.
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
18
Financial commitments, guarantees and contingent liabilities
The bank overdraft facilities are secured by way of a fixed and floating charge and a composite accounting agreement between all group companies with a bank account. An unlimited cross guarantee in respect of these companies has been given to the bank. The total outstanding liability for the group in respect of the overdraft facility is £nil (2023: £nil).
Revolving Credit Facility
On the 16 December 2024 Media Concierge (Holdings) Limited signed a Revolving Credit Facility with HSBC UK Bank plc and Barclays Bank for £10m, the facility to be used primarily to fund future acquisitions and working capital requirements.
The following group companies are guarantors for the revolving credit facility: Media Concierge (Holdings) Limited, Group M Services Limited, Mediaforce (London) Limited, Mediaforce Representation Limited, Leaflet Co Limited (The), Mediaforce (Representation) Digital Limited, Formpress Publishing Limited and Iconic Newspapers Limited.
Group M Services Limited
Notes to the Financial Statements (Continued)
For the year ended 30 September 2024
Page 21
19
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
457,168
677,250
Between two and five years
3,417
507,938
460,584
1,185,188
20
Related party transactions
The company has taken advantage of the exemption available under paragraph 33.1A of the Financial Reporting Standard 102 not to disclose transactions with any wholly owned members of the group.
At the balance sheet date the company was owed £2,541,369 by the directors (2023: £2,668,907).
At the balance sheet date the company was owed £32,529 (2023: £3,488) from companies under common control.
At the balance sheet date the company owed £37,874 (2023: £5,000) to companies under common control.
21
Ultimate controlling party
The immediate and ultimate parent company is Media Concierge (Holdings) Limited, a company incorporated in England and Wales.
The smallest and largest entity preparing consolidated accounts is Media Concierge (Holdings) Limited. The consolidated group accounts are available from 47 Great Marlborough Street, London, W1F 7JP.
The ultimate controlling party is M C Denmark by virtue of his shareholding in Media Concierge (Holdings) Limited.
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