FOR THE YEAR ENDED 30 SEPTEMBER 2024
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MOLSON GROUP LIMITED
COMPANY INFORMATION
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MOLSON GROUP LIMITED
CONTENTS
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MOLSON GROUP LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The directors consider that the group has performed to expectations in the 2024 financial year given the very difficult market and economic conditions that were faced. In the UK the prolonged period of elevated interest rates coupled with uncertainty over the timing of any cuts in those rates and the absence of positive economic news throughout the year stifled demand, especially amongst housebuilders. Volumes in our core excavator market declined 50% year on year, although we were able to increase our market share. The turnover of our UK business fell year on year by £31.9m to £221.4m.
In the US we completed the acquisition of the Terex Powerscreen dealer for Texas, Louisiana, Oklahoma and Arkansas in April 2024 and we now service 13 states in the US with an addressable market for our products of £15.8bn. Activity levels remained strong in the US throughout the year. However, the prolonged period of elevated interest rates coupled with uncertainty over the timing of any cuts in rates, and the political turmoil resulting from the Presidential election, led many customers to extend rental periods and defer equipment purchases which hindered the growth in our turnover. Our US turnover grew by £26.6m to £111.3m. Despite keen price competition in the UK, the group improved overall gross margin to 16.9% (2023: 15.6%) but as a result of market conditions and our continued investment in staff, brands and technology the group recorded an operating profit for the year of £1.9m (2023: £15.9m). At the year end, the group had net assets of £16.3m (2023: £27.8m). During the current financial year there are clear signs of improvement in the UK market for our products and services but those improvements, and the general macroeconomic outlook in the UK, still require a period of stability to take root. Consequently, trading remains challenging but our funders and bankers, our shareholders and our manufacturer partners remain supportive of the group and our strategy. In addition, we have an energised and motivated team that continues to deliver exceptional service for our customers. As such, the directors believe the company's position to be satisfactory.
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MOLSON GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The directors have reviewed and agreed policies for managing the financial risks, and these are summarised below:
Market Risk As with most businesses, market risk encompasses three types of risk, being price risk, interest rate risk and currency risk: - Price risk The group continues to compete effectively by continually monitoring its product range and responding to activities in the market. Since the COVID pandemic, the group has seen significant impacts to pricing caused by factors external to its market. Immediately following the COVID pandemic, supply chain issues and the Ukraine war resulted in significant increases in the cost of raw materials that drove up the price of steel and latterly weak economic growth has caused the market to reduce and drive greater price competition. In each case, the group has worked closely with its manufacturer partners to ensure the key products the group sells remain competitive and the group has been able to grow market share in these key product lines. The impact of the US government’s new approach to tariffs has yet to be felt but the group remains confident that it again will be able to navigate any market disruption through close collaboration with our partners. - Interest rate risk Group bank borrowings incur interest at market rates. The company mitigates its exposures through the ongoing monitoring of the rates being applied. Additionally, demand for the group’s products is impacted by interest rates because customers finance a significant proportion of the product that they purchase from us and, as a result, interest costs are a significant component of a customer’s total cost of ownership. In order to mitigate the impact of interest rates on our business, we adopt a variety of strategies including in depth customer engagement to understand customer perception and plans, analysis of data to identify trends and close cooperation with our manufacturer partners to adjust pricing and order intake. - Currency risk The group makes a number of purchases and sales in currencies other than sterling. The group maintains foreign currency bank accounts and through close monitoring of exchange rates aims to convert funds to sterling when rates are appropriate. The group utilises forward exchange current contracts to hedge its short-term exposure. The group has financed its US acquisitions with debt denominated in US dollars. Credit risk Credit risk is tightly controlled as machines are not usually released to the customer until paid for and most are financed by an external funder, net of any deposit paid by the customer. Customer credit risk is addressed through a mixture of credit worthiness checks and a proactive approach to cash collection. Liquidity risk The group ensures sufficient liquidity is available to meet foreseeable needs through regular cash flow forecasting and negotiation of appropriate financing arrangements.
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MOLSON GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The company uses a number of key performance indicators to monitor its performance:
The board of directors of the Group consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole and having regard (amongst other matters) to factors (a) to (f) S172 Companies Act 2006, in the decisions taken during the year ended 30 September 2024. Specifically, the Board ensure in all decisions taken that:
Business is conducted morally and ethically, in line with Molson's Code of Conduct
∙Short-term gains do not have an adverse consequence on Molson's long-term strategy, success and benefits
∙Employee welfare, training and interests are taken care of
∙Customer and supplier relationships are strong, mutually beneficial and comply with Molson's Policies (such as anti-bribery and corruption, anti-slavery and human trafficking and corporate social responsibility)
∙Any community and environmental impacts as a result of Molson's operations are considered
During the financial year, Molson:
∙Worked closely with its manufacturer partners, other suppliers and customers to meet demand for product
∙Continued the investment in its IT platform and infrastructure and continued the roll out of storeCMD (an e-commerce platform) and fleetCMD (a fleet management website) to customers
∙Continued the roll out of the Molson Academy. The Academy identifies the training and development needs of all staff across all departments and puts in place the relevant opportunities for staff to be successful in their role and career. During 2024 we delivered 6,372 hours of training.
This report was approved by the board and signed on its behalf.
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MOLSON GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The directors present their report and the financial statements for the year ended 30 September 2024.
The principal activity of the trading subsidiaries is the sale of new construction, aggregate processing and waste handling equipment supplied by a number of large international manufacturing companies, the purchase and sale of used equipment, and the sale of related parts and services. During the year being reported on we have also launched fleetCMD, a digital platform that enables our customers to utilise data to manage their fleets more efficiently and effectively, and storeCMD, an e-commerce portal.
The loss for the year, after taxation and minority interests, amounted to £9,538,000 (2023: profit £3,569,000).
The Directors have declared and paid dividends of £150,000 (2023: £150,000) in the year.
The directors who served during the year were:
The directors have engaged with employees across the business through a devolved system of management that encourages individual initiative and collaboration between all levels of the organisation to ensure employees feel empowered and valued. Molson’s success is built on great customer service and its employees are key to delivering that, so the interests of employees are always taken into account where relevant in the principal decisions taken by the company.
During this financial year, the Group has maintained its focus on the training and development of its staff and this year we added Bircham Newton and Middlesborough Colleges to our existing engineering apprenticeship partnership with Weston College. We have also continued with our support of English Premiership Rugby’s education and employability programme, HITZ, and a number of our graduates from that scheme have been awarded HITZ Ambassador status by Premiership Rugby in recognition of their ongoing contribution to the programme. Our Community Champions programme, which coordinates our charitable and community support activities, has gone from strength to strength this year with highlights including the Lighthouse “make it visible” mental health tour to all our depots, the “wear it pink” campaign we undertook with 2 of our partners, DSM Demolition Ltd and Strickland MFG UK Ltd, in support of Breast Cancer, and the 11th year participating in the MacMillan coffee morning.
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MOLSON GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
In May 2024 Molson held XPO24, a week long event at our flagship site at Dixon, California. This event, built on our successful UK Open Days, brought together customers, manufacturers and staff from across the whole of our US operations to spend an extended period of time together, with our full range of products on display on one site. Molson also attended several conferences/trade shows and manufacturer events, including Hillhead and ScotPlant with selected customers. These events give our customers an opportunity to provide direct feedback to manufacturers which in turn drives product development to ensure the products we distribute meet the market demand. We continue to work closely with businesses across the sector on our industry leading fleetCMD portal, enabling customers to access the key information on their entire plant fleet in one place, allowing them to take action to optimise efficiency and reduce emissions. Molson continues to grow the scale of its customer base, supporting and partnering with customers delivering strategic infrastructure projects for the UK and we were proud to receive two awards from Suez in the year, the first for our ESG work and the second as their overall Supplier of the Year. Molson continues to partner with progressive suppliers, allowing customers to access the most efficient machinery, including fully electric and hybrid alternatives, to support them in minimising carbon emissions.
Molson Group recognises the need to act responsibly to reduce greenhouse gases and other emissions both directly in its own consumption and indirectly by influencing its manufacturer partners and customers to reduce their emissions. In 2024 Molson continued to roll out fleetCMD as a strategic tool for customers with plant and machinery, enabling customers to gain visibility over their entire fleet and its carbon emissions, helping inform their actions on the road to net zero.
Directly, Molson Group has continued to switch its vehicle fleet to electric and hybrid power units, with 15 vehicles now in our fleet, and is rolling out electric vehicle charging points across its sites. Additionally, the Group utilises solar and biomass power at a number of sites and installed 97.99kWp of solar panel generating capacity at our Head Office during the year. Indirectly, Molson Group has been working with its manufacturer partners and the wider business community to promote the uptake of electrical powered equipment and Tier V engines as well as investigating the feasibility of hydrogen fuelled power units. In September 2024 we hosted a SevernNet community event on Decarbonising Mobile Heavy Equipment. Over 100 delegates from business and the community in and around the Avonmouth area attended an event focussed on the technology and the drive towards alternative fuel use in construction equipment. In 2022 we entered into a partnership with Treedom to plant trees in sustainable agroforestry projects around the world. As well as providing income opportunities for rural communities, the trees planted absorb CO2, emit oxygen and counteract soil erosion. Our commitment is to plant 2,000 trees by 2025 and to date we have planted 1,960. We have also recently started working with PrintReleaf to offset paper usage by planting trees.. The Group’s UK energy consumption (in KwH) and the CO2 equivalent emissions in tonnes (CO2e):
The Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 requires a Strategic report to be prepared. Where mandatory disclosures in the Directors' report are considered by the directors to be of strategic importance, these have been included in the Strategic report rather than the Directors' report.
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MOLSON GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
There are no post balance sheet events that require adjustment or disclosure in the financial statements.
The auditors, Bishop Fleming Bath Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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MOLSON GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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MOLSON GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF MOLSON GROUP LIMITED
We have audited the financial statements of Molson Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 September 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 Group's or the 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 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 Auditors' 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.
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MOLSON GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF MOLSON GROUP LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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MOLSON GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF MOLSON GROUP LIMITED (CONTINUED)
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 Auditors' 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 Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Identifying and assessing potential risks related to irregularities The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:
∙We have considered the nature of the industry and sector, control environment and business performance.
∙We have considered the results of our enquiries of management, including the Chief Operating Officer,
∙about their own identification and assessment of the risk of irregularities.
∙For any matters identified we have obtained and reviewed the Group’s documentation of their policies and
∙procedures relating to:
°Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
°Detecting and responding to the risk of fraud and whether they have knowledge of actual, suspected, or alleged fraud; and,
°The internal controls established to mitigate the risks of fraud or non-compliance with laws and regulations.
∙We have considered the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud, and incorrect recognition of revenue was identified as the greatest potential areas for fraud.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Group’s ability to operate or to avoid a material penalty. These included health and safety and employment legislation.
Audit response to risks identified
We identified recognition of revenue as a key audit matter related to the potential risk of fraud, our procedures to respond to risks identified included the following:
∙Performing various substantive tests of detail related to the recognition of revenue;
∙Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial
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MOLSON GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF MOLSON GROUP LIMITED (CONTINUED)
statements;
∙Enquiring of management concerning actual and potential litigation claims;
∙Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement or fraud; and
∙In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
10 Temple Back
BS1 6FL
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MOLSON GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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MOLSON GROUP LIMITED
REGISTERED NUMBER:06378350
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 43 form part of these financial statements.
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MOLSON GROUP LIMITED
REGISTERED NUMBER:06378350
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 43 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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MOLSON GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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MOLSON GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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MOLSON GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Molson Group Limited is a private limited company incorporated in the United Kingdom. The registered office is Unit 4, Smoke Lane Industrial Estate, Avonmouth, Bristol, BS11 0YA.
2.ACCOUNTING POLICIES
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.ACCOUNTING POLICIES (continued)
The group operated in difficult market conditions during the 2024 financial year. In the UK the prolonged period of elevated interest rates coupled with uncertainty over the timing of any cuts in those rates and the absence of positive economic news throughout the year stifled demand, especially amongst housebuilders. Volumes in our core excavator market declined 50% year on year, albeit we increased our market share. Activity levels remained strong in the US throughout the year. However, the prolonged period of elevated interest rates coupled with uncertainty over the timing of any cuts in rates, and the political turmoil resulting from the Presidential election, led many customers to extend rental periods and defer equipment purchases which hindered the growth in our turnover. Overall, our turnover declined by £5.3m to £332.7m and we reported a net loss before tax of £10.3m (2023: profit £8.2m).
At the year end, the group had net assets of £16.3m (2023: £27.8m). During the current financial year there are clear signs of improvement in the UK market for our products and services but those improvements, and the general macroeconomic outlook in the UK, still require a period of stability to take root. Consequently, trading remains challenging but our funders and bankers, our shareholders and our manufacturer partners remain supportive of the group and our strategy. In addition, we have an energised and motivated team that continues to deliver exceptional service for our customers. The directors have carefully considered all of these factors in preparing sensitised forecasts for the next 12 months that demonstrate that the group is able to realise it assets and settle its liabilities as they fall due in the normal course of business for a period of at least 12 months from the date of approval of these financial statements. Therefore these financial statements are prepared on a going concern basis.
Functional and presentation currency
Transactions and balances
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.ACCOUNTING POLICIES (continued)
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.ACCOUNTING POLICIES (continued)
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.ACCOUNTING POLICIES (continued)
GOODWILL
OTHER INTANGIBLE ASSETS
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.ACCOUNTING POLICIES (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The critical judgements made by management that have a significant effect on the amounts recognised in the financial statements are described below. Critical judgements Goodwill and other intangible assets Positive goodwill acquired on each business combination is capitalised, classified as an asset on the statement of financial position and amortised on a straight line basis over its useful life. The Group establishes an estimate of the useful life of goodwill and intangibles assets arising on business combination. This estimate is based on a variety of factors such as the expected use of the acquired business, the expected useful life of the cash generating units to which the asset is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar business.
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
3.JUDGEMENTS IN APPLYING ACCOUNTING POLICIES (CONTINUED)
Lease commitments The Group determines whether leases entered into by the Group either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis. Depreciation rates Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. Sources of estimation uncertainty Impairment of fixed assets The Group determines whether there are indicators of impairment of tangible and intangible assets, including goodwill. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit. Valuation of stock provision The Group determines whether there are conditions that exist at the balance sheet date that indicates that the net realisable value of individual stock lines are less than the carrying value. Such indicators include post year end sales, auction prices, and market demand.
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
10.TAXATION (CONTINUED)
There are no factors expected to materially affect future tax charges.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The loss after tax of the parent Company for the year was £
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Bank loans are secured by way of a fixed and floating charge over the Group's assets, all in favour of HSBC UK Bank plc as security agent.
Obligations under finance lease and hire purchase contracts are secured on the assets to which they relate. Other loans includes loans used to finance the purchase of certain stock and plant and machinery and are secured on the assets to which they relate.
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Bank loans are secured by way of a fixed and floating charge over the Group's assets, all in favour of HSBC UK Bank plc as security agent.
Obligations under finance lease and hire purchase contracts are secured on the assets to which they relate. Other loans includes loans used to finance the purchase of certain stock and plant and machinery and are secured on the assets to which they relate.
Other loans include loan notes due from BGF which are being recognised at transaction value of £5,625,000 (£2,250,000 due within one year, with £3,375,000 due in more than one year). Interest is being charged on this balance at 8%. The loan notes are due to be fully repaid by 31 March 2028. There is a premium charge on redemption of £261,336 on one of the loan notes.
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Page 38
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
23.DEFERRED TAXATION (CONTINUED)
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Share premium account
the issuing of shares are deducted from share premium.
Foreign exchange reserve
Merger Reserve
Profit and loss account
Page 40
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
26.BUSINESS COMBINATIONS (CONTINUED)
The Group participates in a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £
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MOLSON GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
There is no ultimate controlling party.
Page 43
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