Company registration number 08188611 (England and Wales)
MCCARTHY MARLAND LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
MCCARTHY MARLAND LIMITED
COMPANY INFORMATION
Directors
Mr A P D Marland
Mr K D McCarthy
Mrs K M Marland
Mr J L McCarthy
Company number
08188611
Registered office
82 St John Street
London
EC1M 4JN
Auditor
Beavis Morgan Audit Limited
82 St John Street
London
EC1M 4JN
MCCARTHY MARLAND LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 32
MCCARTHY MARLAND LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Principal activities
The group trades as a full service, waste management business from three licenced properties in Bristol, Gloucestershire and Oxfordshire. It also owns its own landfill site, based in Somerset. All properties are freehold and owned by the Group.
Trading and financial position
The full integration of the 2022 Hughes & Salvidge Waste Management Ltd “H&S” acquisition took place during this financial year and the business is therefore reporting the first, full 12-month period of the combined entities. Turnover, headcount and cost all reflect the position of the combined entities.
Unfortunately, the group encountered significant accounting issues during the year which has resulted in a delay to the finalisation of the 2024 accounts and a qualified audit report for the year. However, this has been addressed with a complete change of personnel in the accounts department led by a more qualified person who is embedding tighter processes and control across the group’s financial function.
Settling in the full integration took longer than planned and at greater cost to the business than planned. Throughout the year the business has continued with the amalgamation of IT systems and restructuring operational processes to reduce direct cost. This came at considerable expense and disruption to the usual working practices of H&S. However, McCarthy Marland (Recycling) Ltd returned a positive EBITDA of £2.398m compared to £968k for the prior year on a turnover of £18.6m compared to £16.2m. The McCarthy Marland Group returned £2.47m compared to £1.41m the prior year.
Residual waste disposal costs continued to fluctuate during the year. The amount of material sent for residual waste disposal was mitigated by the improvements made to waste segregation. Logistic efficiency was a challenge during the year and took time to bed in the more effective routing of vehicles between the four operating locations.
Significant interest rate rises over the 12-month period has had a £360k negative, and unplanned, impact on the bottom line for the group. The business endured additional, and exceptional, legal & professional fees during the year of £23k whilst contemplating the disposal and restructuring of part of its operations. This did not come to fruition. Since the year end, the company has had an approach from two parties to acquire a significant proportion of the business and preliminary discussions are continuing.
The main operating site at Tetbury has been reorganised to improve efficiency and consolidate the head office move from Bristol. Unaudited management accounts for the year to 31st March, 2025 show McCarthy Marland (Recycling) Ltd turnover at £16.25m and EBITDA £2.29m. McCarthy Marland Group turnover at £16.5m and EBITDA £2.6m.
The directors are confident that the position and profitability of the company will continue to improve as new waste processing equipment is installed at Tetbury over the next 12 months. The sale of surplus office premises in Bristol reported in last year’s statement has rolled over into 2025 with £575,000 completed.
Net bank debt of £8.926m at 31st March 2024? had reduced to £7.782m by 31st May 2025. This bank debt was substantially incurred at the time of the acquisition of H&S in July, 2022, and which included the acquisition of £6.5m of two freehold properties. The shareholders feel that this level of bank debt has weakened the balance sheet, and is taking too long to pay down, and particularly with the negative impact on free cashflow from interest rates at a current level of circa 11%. Hence, the sale of surplus properties referred to above, and the shareholders are also in the process of injecting £1m of new loans at the time of this report.
These actions should substantially strengthen the balance sheet and improve the free cashflow of the business.
MCCARTHY MARLAND LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Mr A P D Marland
Director
27 June 2025
MCCARTHY MARLAND LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company is that of a holding company, whose subsidiaries trade in waste management.
Results and dividends
Ordinary dividends were paid amounting to £113,106. 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:
Mr A P D Marland
Mr K D McCarthy
Mrs K M Marland
Mr J L McCarthy
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.
On behalf of the board
Mr A P D Marland
Director
27 June 2025
MCCARTHY MARLAND LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, 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 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 and company will continue in business.
The directors are 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. They are 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.
MCCARTHY MARLAND LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MCCARTHY MARLAND LIMITED
- 5 -
Disclaimer of opinion on the financial statements
We were engaged to audit the financial statements of McCarthy Marland Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, 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).
We do not express an opinion on the accompanying financial statements. Because of the significance of the matter described in the 'Basis for Disclaimer of Opinion' section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.
Basis for disclaimer of opinion
A change in accounting system occurred during the financial year and there has been a change in finance personnel since the year-end date. Due to these changes, explanations and audit documentation has not been obtained for a significant proportion of financial statement items. The mains areas of lack of evidence were around the completeness, accuracy and cut off in relation to the purchases cycle and being able to obtain information in relation to the completeness of banking aspects of the sales cycle.
Opinions on other matters prescribed by the Companies Act 2006
Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have been unable to form an opinion, whether based on the work undertaken in the course of the audit:
the information given in the strategic report and the directors' report for the financial period 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
Notwithstanding our disclaimer of an opinion on the financial statements, in the light of the knowledge and understanding of the parent company and the group and their environment obtained in the course of the audit performed, subject to pervasive limitation described above, we have not identified material misstatements in the strategic report or the directors' report.
Arising from the limitation of our work referred to above:
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made
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 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 directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
MCCARTHY MARLAND LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MCCARTHY MARLAND LIMITED
- 6 -
Auditor's responsibilities for the audit of the financial statements
Our responsibility is to conduct an audit of the financial statements in accordance with International Standards on Auditing (UK) and to issue an auditor's report.
However, because of the matter described in the basis for disclaimer of opinion section of our report, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements.
We are independent of the parent company and the group 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.
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.
Matthew Burge (Senior Statutory Auditor)
For and on behalf of Beavis Morgan Audit Limited
27 June 2025
Chartered Accountants
Statutory Auditor
82 St John Street
London
EC1M 4JN
MCCARTHY MARLAND LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
18,646,060
16,253,079
Cost of sales
(13,028,515)
(11,783,481)
Gross profit
5,617,545
4,469,598
Administrative expenses
(4,655,626)
(4,373,315)
Other operating (expenses)/income
(403)
15,560
Operating profit
4
961,516
111,843
Interest receivable and similar income
6
6,297
169
Interest payable and similar expenses
7
(1,398,469)
(809,312)
Non-cash fair value losses on investment properties
12
(68,752)
(446,690)
Loss before taxation
(499,408)
(1,143,990)
Tax on loss
8
(3,753)
82,584
Loss for the financial year
(503,161)
(1,061,406)
Loss for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
MCCARTHY MARLAND LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
3,255,446
3,669,377
Tangible assets
11
5,352,693
4,869,286
Investment property
12
7,825,000
7,885,000
16,433,139
16,423,663
Current assets
Stocks
15
22,971
22,971
Debtors
16
3,908,343
2,697,983
Cash at bank and in hand
73,084
342,696
4,004,398
3,063,650
Creditors: amounts falling due within one year
17
(8,267,498)
(6,096,972)
Net current liabilities
(4,263,100)
(3,033,322)
Total assets less current liabilities
12,170,039
13,390,341
Creditors: amounts falling due after more than one year
18
(10,588,540)
(11,243,829)
Provisions for liabilities
Provisions
21
446,532
452,302
Deferred tax liability
22
1,744,828
1,687,804
(2,191,360)
(2,140,106)
Net (liabilities)/assets
(609,861)
6,406
Capital and reserves
Called up share capital
24
2,000
2,000
Profit and loss reserves
(611,861)
4,406
Total equity
(609,861)
6,406
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 27 June 2025 and are signed on its behalf by:
27 June 2025
Mr A P D Marland
Director
Company registration number 08188611 (England and Wales)
MCCARTHY MARLAND LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
13,920,506
13,920,506
Current assets
Debtors
16
620,048
595,229
Cash at bank and in hand
108
980
620,156
596,209
Creditors: amounts falling due within one year
17
(6,097,189)
(3,939,548)
Net current liabilities
(5,477,033)
(3,343,339)
Total assets less current liabilities
8,443,473
10,577,167
Creditors: amounts falling due after more than one year
18
(8,945,611)
(10,158,032)
Net (liabilities)/assets
(502,138)
419,135
Capital and reserves
Called up share capital
24
2,000
2,000
Profit and loss reserves
(504,138)
417,135
Total equity
(502,138)
419,135
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £808,167 (2023 - £417,315 loss).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 27 June 2025 and are signed on its behalf by:
27 June 2025
Mr A P D Marland
Director
Company registration number 08188611 (England and Wales)
MCCARTHY MARLAND LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
2,000
1,348,412
1,350,412
Year ended 31 March 2023:
Loss and total comprehensive income
-
(1,061,406)
(1,061,406)
Dividends
9
-
(282,600)
(282,600)
Balance at 31 March 2023
2,000
4,406
6,406
Year ended 31 March 2024:
Loss and total comprehensive income
-
(503,161)
(503,161)
Dividends
9
-
(113,106)
(113,106)
Balance at 31 March 2024
2,000
(611,861)
(609,861)
MCCARTHY MARLAND LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022
2,000
1,117,050
1,119,050
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
(417,315)
(417,315)
Dividends
9
-
(282,600)
(282,600)
Balance at 31 March 2023
2,000
417,135
419,135
Year ended 31 March 2024:
Loss and total comprehensive income for the year
-
(808,167)
(808,167)
Dividends
9
-
(113,106)
(113,106)
Balance at 31 March 2024
2,000
(504,138)
(502,138)
MCCARTHY MARLAND LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
2,735,203
3,476,179
Interest paid
(1,398,469)
(809,312)
Income taxes refunded
8,865
15,616
Net cash inflow from operating activities
1,345,599
2,682,483
Investing activities
Purchase of business
-
(7,943,746)
Purchase of tangible fixed assets
(377,598)
(366,670)
Proceeds from disposal of tangible fixed assets
617,964
286,867
Interest received
6,297
169
Net cash generated from/(used in) investing activities
246,663
(8,023,380)
Financing activities
Proceeds from borrowings
-
9,702,108
Repayment of borrowings
(149,144)
(3,478,796)
Repayment of bank loans
(941,719)
-
Payment of finance leases obligations
(657,907)
(569,646)
Dividends paid to equity shareholders
(113,106)
(282,600)
Net cash (used in)/generated from financing activities
(1,861,876)
5,371,066
Net (decrease)/increase in cash and cash equivalents
(269,614)
30,169
Cash and cash equivalents at beginning of year
342,696
312,527
Cash and cash equivalents at end of year
73,082
342,696
Relating to:
Cash at bank and in hand
73,084
342,696
Bank overdrafts included in creditors payable within one year
(2)
-
MCCARTHY MARLAND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
Company information
McCarthy Marland Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 82 St John Street, London, EC1M 4JN.
The group consists of McCarthy Marland Limited and all of its subsidiaries (note 15)
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’: Interest income/expense and net gains/losses for each category of financial instrument;
1.2
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company McCarthy Marland Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 March 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.
MCCARTHY MARLAND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group company and shareholders have adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
In making the above statement, the shareholders/directors are in the process of improving the liquidity and balance sheet strength of the Company and Group by the following actions:
The shareholders are injecting new funds of c.£1m.
Discussing a reshaping and restructuring of the fully secured, existing loan facilities to extend repayment terms and reduce the interest cost.
A time to pay agreement has been reached with HMRC to extend payment terms.
The intention is to reduce the EBITDA to total debt to no more than 2 times, rather than the more than 3 times since the acquisition of H & S
1.4
Turnover
Turnover represents amounts receivable for waste services provided, net of VAT and trade discounts. Turnover is recognised in the financial statements when the waste service is provided to the customer.
1.5
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.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.6
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
Straight line over 50 years
Leasehold improvements
Straight line over 50 years
Plant and equipment
25% reducing balance
Fixtures and fittings
Straight line over 7 years
Computers
25% reducing balance
Motor vehicles
25% 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 profit and loss account.
MCCARTHY MARLAND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.7
Investment properties
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. Property rented to a group entity is accounted for at fair value with changes in fair value recognised in profit or loss.
1.8
Fixed asset investments
In the parent company financial statements, investments in subsidiaries 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.
1.9
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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
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 (or cash-generating unit) 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 (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
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.
1.11
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand. Bank overdrafts are shown within borrowings in current liabilities.
MCCARTHY MARLAND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.12
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 balance sheet 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, other than those held at fair value through profit and loss, 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.
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.
MCCARTHY MARLAND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies 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.
1.13
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.
1.14
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 profit and loss account 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.
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 if, and only if, there is 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.
MCCARTHY MARLAND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.15
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. 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.
1.16
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.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
1.19
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
MCCARTHY MARLAND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’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 lives of intanigble and tangible assets
Estimation is required in determining the useful lives of such assets and their residual values. The amortisation and depreciation charge is sensitive to changes in the estimated useful economic lives of such assets. The carrying value of intangible assets and tangible assets is disclosed in notes 10 and 11 respectively.
Discounting of deferred consideration
A discount rate of 6% per annum has been used to determine the present value of deferred consideration. The carrying value of deferred consideration is sensitive to changes in the discount rate used. The carrying value of deferred consideration is disclosed in note 20.
Provision for aftercare and site restoration
Estimation is required in determining the costs required to restore the Whiscombe Hill Landfill Site upon the group ceasing to use it. The level of costs expected are uncertain. Management have estimated that ongoing leachate management will not be required beyond 30 years of the landfill site closing and that environmental and pollution monitoring and control will not be require beyond 20 years of the site closing. The Whiscombe Hill Landfill Site is estimated to close in 2036. The carrying value of the provisions is disclosed in Note 21.
3
Turnover
All turnover arises in the UK and relates to the principal activity of the group.
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Fees payable to the group's auditor for the audit of the group's financial statements
50,000
40,350
Depreciation of owned tangible fixed assets
377,617
500,714
Depreciation of tangible fixed assets held under finance leases
575,302
500,253
(Profit)/loss on disposal of tangible fixed assets
(233,507)
11,765
Amortisation of intangible assets
413,931
289,888
Operating lease charges
297,684
919,649
MCCARTHY MARLAND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
5
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
Administration
21
55
4
4
Operations
97
73
-
-
Total
118
128
4
4
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,826,387
3,424,217
Social security costs
375,687
359,005
-
-
Pension costs
162,099
139,313
4,364,173
3,922,535
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
6,297
42
Other interest income
-
127
Total income
6,297
169
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
1,139,898
668,694
Interest on invoice finance arrangements
124,893
57,143
Interest on other loans
59,850
9,000
Interest on finance leases and hire purchase contracts
73,828
74,475
Total finance costs
1,398,469
809,312
MCCARTHY MARLAND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
95,982
Adjustments in respect of prior periods
73,067
(16,591)
Total current tax
73,067
79,391
Deferred tax
Origination and reversal of timing differences
(69,314)
(161,975)
Total tax charge/(credit)
3,753
(82,584)
The actual charge/(credit) for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Loss before taxation
(499,408)
(1,143,990)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(124,852)
(217,358)
Tax effect of expenses that are not deductible in determining taxable profit
132,603
45,714
Tax effect of income not taxable in determining taxable profit
(59,179)
Adjustments in respect of prior years
(102,398)
(8,626)
Depreciation on assets not qualifying for tax allowances
6,232
Amortisation on assets not qualifying for tax allowances
103,483
55,079
Other permanent differences
357
Effect of change in deferred tax rate
(5,083)
95,197
Taxation charge/(credit)
3,753
(82,584)
9
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
113,106
282,600
MCCARTHY MARLAND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
10
Intangible fixed assets
Group
Goodwill
Negative goodwill
Total
£
£
£
Cost
At 1 April 2023 and 31 March 2024
4,139,306
(25,860)
4,113,446
Amortisation and impairment
At 1 April 2023
469,929
(25,860)
444,069
Amortisation charged for the year
413,931
413,931
At 31 March 2024
883,860
(25,860)
858,000
Carrying amount
At 31 March 2024
3,255,446
3,255,446
At 31 March 2023
3,669,377
3,669,377
The company had no intangible fixed assets at 31 March 2024 or 31 March 2023.
Goodwill includes goodwill on the acquisition of the subsidiaries, McCarthy Marland (Recycling) Limited and Westcombe Waste Limited. The carrying amount of goodwill is £18,438 (2023: £36,616) and has a remaining amortisation period of 0.75 years.
Goodwill also includes goodwill recognised on the acquisition of the subsidiary, McCarthy Marland H1 Limited (formerly Hughes & Salvidge Waste Management Limited). The carrying amount of goodwill is £3,240,030 (2023: £3,632,761) and has a remaining amortisation period of 8.25 years.
MCCARTHY MARLAND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
11
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 April 2023
807,015
982,879
4,984,153
147,036
187,979
2,396,312
9,505,374
Additions
7,475
10,951
1,392,614
114,925
11,199
283,619
1,820,783
Disposals
(433,065)
(401,263)
(834,328)
At 31 March 2024
814,490
993,830
5,943,702
261,961
199,178
2,278,668
10,491,829
Depreciation and impairment
At 1 April 2023
311,376
657,510
2,346,504
102,657
167,151
1,050,890
4,636,088
Depreciation charged in the year
23,678
19,874
574,148
23,598
12,913
298,708
952,919
Eliminated in respect of disposals
(215,154)
(234,717)
(449,871)
At 31 March 2024
335,054
677,384
2,705,498
126,255
180,064
1,114,881
5,139,136
Carrying amount
At 31 March 2024
479,436
316,446
3,238,204
135,706
19,114
1,163,787
5,352,693
At 31 March 2023
495,639
325,369
2,637,649
44,379
20,828
1,345,422
4,869,286
The company had no tangible fixed assets at 31 March 2024 or 31 March 2023.
MCCARTHY MARLAND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
11
Tangible fixed assets
(Continued)
- 24 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
1,332,958
1,386,639
Fixtures and fittings
17,446
Motor vehicles
772,348
900,111
2,122,752
2,286,750
-
-
The hire purchase liability is secured over the assets to which it belongs.
12
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 April 2023 and 31 March 2024
7,885,000
-
Additions
8,752
-
Net losses through fair value adjustments
(68,752)
-
At 31 March 2024
7,825,000
-
The investment property balance relates to properties based in the United Kingdom. These properties are used by the group for trading purposes.
The fair value of the investment property has been determined based on valuations made by a RICS certified surveyor, who is independent from the group and its directors.
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
13,920,506
13,920,506
MCCARTHY MARLAND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
13
Fixed asset investments
(Continued)
- 25 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 March 2024
13,920,506
Carrying amount
At 31 March 2024
13,920,506
At 31 March 2023
13,920,506
14
Subsidiaries
Details of the company's subsidiaries at 31 March 2024 are as follows:
Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
McCarthy Marland (Recycling) Limited
1
Waste management
Ordinary
100.00
-
Westcombe Waste Limited
2
Waste management
Ordinary
100.00
-
MM Property Assets Limited
2
Property company
Ordinary
100.00
-
McCarthy Marland H1 Limited
2
Waste management
Ordinary
100.00
-
McCarthy Marland H2 Limited
2
Waste management
Ordinary
0
100.00
Registered office addresses (all UK unless otherwise indicated):
1
Tetbury Commercial Recycling Centre, Babdown Airfield, Tetbury, Gloucester, United Kingdom, GL8 8YL
2
82 St. John Street, London, England, EC1M 4JN
The companies listed below are exempt from the requirements of UK Companies Act 2006 relating to the audit of individual financial statements by virtue of section 479A of the Act. The company has provided the subsidiaries listed below with a guarantee under section 479C of the Act thereby undertaking to guarantee all outstanding liabilities to which the subsidiary is subject to at the end of the financial period:
Register number
Company
04291229
McCarthy Marland (Recycling) Limited
02205997
Westcombe Waste Limited
10241145
MM PropertyAssets Limited
11531731
McCarthy Marland H1 limited
05997601
McCarthy Marland H2 Limited
MCCARTHY MARLAND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
22,971
22,971
-
-
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,741,464
2,014,465
Amounts owed by group undertakings
-
-
388,937
488,151
Other debtors
584,421
593,928
69,238
64,951
Prepayments and accrued income
374,684
8,154
3,700,569
2,616,547
458,175
553,102
Amounts falling due after more than one year:
Deferred tax asset (note 22)
207,774
81,436
161,873
42,127
Total debtors
3,908,343
2,697,983
620,048
595,229
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
965,780
965,778
963,842
963,842
Obligations under finance leases
19
927,850
690,952
Directors' current account
20
163,693
163,693
19,693
19,693
Trade creditors
2,289,483
1,578,157
15,516
1,954
Amounts owed to group undertakings
4,851,427
2,624,389
Corporation tax payable
352,106
270,174
Other taxation and social security
936,036
631,494
-
-
Deferred consideration
20
150,000
150,000
150,000
150,000
Other creditors
1,833,383
1,137,887
-
84,000
Accruals and deferred income
649,167
508,837
96,711
95,670
8,267,498
6,096,972
6,097,189
3,939,548
Included within other creditors is £1,383,592 (2023: £994,024) of funds owed by the group in relation to a receivables facility with Shawbrook Bank Limited. Fixed and floating charges over all property and assets of the group are held by Shawbrook Bank Limited.
MCCARTHY MARLAND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
7,796,547
8,738,266
7,796,547
8,738,266
Obligations under finance leases
19
1,492,929
935,797
Other borrowings
20
150,000
150,000
-
-
Loans from directors
20
750,856
900,000
750,856
900,000
Deferred consideration
20
398,208
519,766
398,208
519,766
10,588,540
11,243,829
8,945,611
10,158,032
19
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
927,850
690,952
In two to five years
1,492,929
935,797
2,420,779
1,626,749
-
-
Finance lease payments represent rentals payable by the group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 2 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
8,762,325
9,704,044
8,760,389
9,702,108
Bank overdrafts
2
Loans from directors
914,549
1,063,693
770,549
919,693
Deferred consideration
548,208
669,766
548,208
669,766
Other borrowings
150,000
150,000
-
-
10,375,084
11,587,503
10,079,146
11,291,567
Payable within one year
1,279,473
1,279,471
1,133,535
1,133,535
Payable after one year
9,095,611
10,308,032
8,945,611
10,158,032
MCCARTHY MARLAND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
20
Loans and overdrafts
(Continued)
- 28 -
On 17th June 2022, the entire share capital of MM Property Assets Limited was acquired by the group in exchange for £900,000 of loan notes. At the balance sheet date, the carrying value of these loan notes is £750,856 (2023: £900,000) and they are included within loans from directors above. The loan notes are unsecured and interest is payable on the loan notes at a fixed rate of 7% per annum.
Included within other borrowings is a balance of £150,000 (2023: £150,000) owed to the vendor. Interest is due on the loan at a rate of 6% per annum.
Deferred consideration relates to loan notes payable in annual installments until July 2027. Deferred consideration has been measured at present value using a discount rate of 6% per annum. A fixed charge over properties owned by MM Property Assets Limited are held by the noteholder. The deferred consideration payments are guaranteed by MM Property Assets Limited, a subsidiary of the group.
The following amounts are included within Bank loans:
Bank loans of £1,936 (2023: £1,936) have been provided to the subsidiary, Westcombe Waste Limited, under the Coronavirus Business Interruption Loan Scheme. The loan is repayable in instalments over 4 years.
At the balance sheet date, the company owed £6,370,836 (2023: £6,601,848) to Shawbrook Bank Limited for the provision of a loan facility. Interest is due on the loan at a rate of 6.5% per annum and the capital repayments are £19,209.04 per month. A fixed and floating charge against all property and assets of the group are held by Shawbrook Bank Limited for the provision of the facility.
At the balance sheet date, the company owed £2,389,553 (2023: £3,100,260) to Shawbrook Bank Limited for the provision of a cashflow loan facility. Interest is due on the loan at a rate of 7.25% per annum and capital repayments are £61,111.11 per month. A fixed and floating charge against all property and assets of the group are held by Shawbrook Bank Limited for the provision of the facility.
21
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Restoration provision
147,980
153,750
-
-
Aftercare provision
298,552
298,552
-
-
446,532
452,302
-
-
Movements on provisions:
Restoration provision
Aftercare provision
Total
Group
£
£
£
At 1 April 2023
153,750
298,552
452,302
Additional provisions in the year
(5,770)
-
(5,770)
At 31 March 2024
147,980
298,552
446,532
MCCARTHY MARLAND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
21
Provisions for liabilities
(Continued)
- 29 -
A provision has been included for the anticipated costs of restoring the Whiscombe Hill Landfill site. A number of uncertain factors can impact the actual costs incurred, such factors include the impact of changes in environmental regulation and climate change. The provision compromises managements best estimate of the financial effects of these uncertain factors, but future changes in any of the estimates could materially impact the aftercare and site restoration provision.
22
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
1,744,828
1,687,804
-
-
Tax losses
-
-
201,444
81,436
Other
-
-
6,330
-
1,744,828
1,687,804
207,774
81,436
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Tax losses
-
-
161,873
42,127
Group
Company
2024
2024
Movements in the year:
£
£
Liability/(Asset) at 1 April 2023
1,606,368
(42,127)
Credit to profit or loss
(69,314)
(119,746)
Liability/(Asset) at 31 March 2024
1,537,054
(161,873)
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
162,099
139,313
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.
MCCARTHY MARLAND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,800
1,800
1,800
1,800
Ordinary B shares of £1 each
200
200
200
200
2,000
2,000
2,000
2,000
Ordinary shares and B Ordinary shares rank pari passu in all respects save that the directors may recommend and pay a dividend on one class of shares and not the other, and vice versa.
25
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
426,523
467,579
94,383
94,383
Between two and five years
767,360
1,193,883
235,958
330,342
1,193,883
1,661,462
330,341
424,725
MCCARTHY MARLAND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
26
Related party transactions
The group has taken advantage of the exemption available in FRS 102 section 33 "Related party disclosures" whereby it has not disclosed transactions with any wholly owned subsidiary undertakings of the group.
Group
At the balance sheet date, the group owed £81,065 (2023: £81,065) to A P D Marland, a director of the company. The amount owed is included within other creditors. The loan is interest free and repayable on demand.
At the balance sheet date, the group owed £82,628 (2023: £82,628) to K D McCarthy, a director of the company. The amount owed is included within other creditors. The loan is interest free and repayable on demand.
At the balance sheet date, £12,326 (2023: £12,326) was owed by McCarthy Property Services Limited, a related party by virtue of common control. This balance is included within other debtors.
Company
At the balance sheet date, the company owed £3,065 (2023: £3,065) to A P D Marland, a director of the company. The amount owed is included within other creditors. The loan is interest free and repayable on demand.
At the balance sheet date, the company owed £16,628 (2023: £16,628) to K D McCarthy, a director of the company. The amount owed is included within other creditors. The loan is interest free and repayable on demand.
At the balance sheet date, the company and group owed an additional £750,856 (2023: £900,000) to the directors of the company in relation to loans notes exchanged for 100% of the share capital in MM Property Assets Limited. The loan notes are unsecured and interest is payable on the loan notes at a fixed rate of 7% per annum.
27
Controlling party
No individual or entity had outright control over the group at any time during the period ended 31st March 2024.
McCarthy Marland Limited is the smallest and largest group for which consolidated financial statements are prepared and are available to the public.
MCCARTHY MARLAND LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 32 -
28
Cash generated from group operations
2024
2023
£
£
Loss for the year after tax
(503,161)
(1,061,406)
Adjustments for:
Taxation charged/(credited)
3,753
(82,584)
Finance costs
1,398,469
809,312
Investment income
(6,297)
(169)
(Gain)/loss on disposal of tangible fixed assets
(233,507)
11,765
Fair value loss on investment properties
68,752
446,690
Amortisation and impairment of intangible assets
413,931
289,888
Depreciation and impairment of tangible fixed assets
952,919
1,000,967
Decrease in provisions
(5,770)
-
Movements in working capital:
Decrease in stocks
-
4,662
(Increase)/decrease in debtors
(1,084,022)
820,295
Increase in creditors
1,730,136
1,236,759
Cash generated from operations
2,735,203
3,476,179
29
Analysis of changes in net debt - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
342,696
(269,612)
73,084
Bank overdrafts
(2)
(2)
342,696
(269,614)
73,082
Borrowings excluding overdrafts
(10,754,044)
1,090,863
(9,663,181)
Obligations under finance leases
(1,626,749)
(794,030)
(2,420,779)
(12,038,097)
27,219
(12,010,878)
2024-03-312023-04-01falsefalseCCH SoftwareCCH Accounts Production 2025.100Mr A P D MarlandMr K D McCarthyMrs K M MarlandMr J L McCarthyfalse08188611bus:Consolidated2023-04-012024-03-31081886112023-04-012024-03-3108188611bus:Director12023-04-012024-03-3108188611bus:Director22023-04-012024-03-3108188611bus:Director32023-04-012024-03-3108188611bus:Director42023-04-012024-03-3108188611bus:RegisteredOffice2023-04-012024-03-3108188611bus:Consolidated2024-03-31081886112024-03-3108188611bus:Consolidated2022-04-012023-03-31081886112022-04-012023-03-3108188611core:Goodwillbus:Consolidated2024-03-3108188611core:Goodwillbus:Consolidated2023-03-3108188611core:NegativeGoodwillbus:Consolidated2024-03-3108188611core:NegativeGoodwillbus:Consolidated2023-03-3108188611bus:Consolidated2023-03-3108188611core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2024-03-3108188611core:LeaseholdImprovementsbus:Consolidated2024-03-3108188611core:PlantMachinerybus:Consolidated2024-03-3108188611core:FurnitureFittingsbus:Consolidated2024-03-3108188611core:ComputerEquipmentbus:Consolidated2024-03-3108188611core:MotorVehiclesbus:Consolidated2024-03-3108188611core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-03-3108188611core:LeaseholdImprovementsbus:Consolidated2023-03-3108188611core:PlantMachinerybus:Consolidated2023-03-3108188611core:FurnitureFittingsbus:Consolidated2023-03-3108188611core:ComputerEquipmentbus:Consolidated2023-03-3108188611core:MotorVehiclesbus:Consolidated2023-03-31081886112023-03-3108188611core:ShareCapitalbus:Consolidated2024-03-3108188611core:ShareCapitalbus:Consolidated2023-03-3108188611core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-03-3108188611core:ShareCapital2024-03-3108188611core:ShareCapital2023-03-3108188611core:RetainedEarningsAccumulatedLosses2024-03-3108188611core:RetainedEarningsAccumulatedLosses2023-03-3108188611core:ShareCapitalbus:Consolidated2022-03-31081886112022-03-3108188611core:RetainedEarningsAccumulatedLossesbus:Consolidated2024-03-3108188611core:ShareCapital2022-03-3108188611core:RetainedEarningsAccumulatedLosses2022-03-3108188611bus:Consolidated2022-03-3108188611core:Goodwill2023-04-012024-03-3108188611core:LandBuildingscore:OwnedOrFreeholdAssets2023-04-012024-03-3108188611core:LeaseholdImprovements2023-04-012024-03-3108188611core:PlantMachinery2023-04-012024-03-3108188611core:FurnitureFittings2023-04-012024-03-3108188611core:ComputerEquipment2023-04-012024-03-3108188611core:MotorVehicles2023-04-012024-03-3108188611core:UKTaxbus:Consolidated2023-04-012024-03-3108188611core:UKTaxbus:Consolidated2022-04-012023-03-3108188611bus:Consolidated12023-04-012024-03-3108188611bus:Consolidated12022-04-012023-03-3108188611bus:Consolidated22023-04-012024-03-3108188611bus:Consolidated32023-04-012024-03-3108188611bus:Consolidated22022-04-012023-03-3108188611core:Goodwillbus:Consolidated2023-03-3108188611core:NegativeGoodwillbus:Consolidated2023-03-3108188611bus:Consolidated2023-03-3108188611core:Goodwillbus:Consolidated2023-04-012024-03-3108188611core:NegativeGoodwillbus:Consolidated2023-04-012024-03-3108188611core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-03-3108188611core:LeaseholdImprovementsbus:Consolidated2023-03-3108188611core:PlantMachinerybus:Consolidated2023-03-3108188611core:FurnitureFittingsbus:Consolidated2023-03-3108188611core:ComputerEquipmentbus:Consolidated2023-03-3108188611core:MotorVehiclesbus:Consolidated2023-03-3108188611core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-04-012024-03-3108188611core:LeaseholdImprovementsbus:Consolidated2023-04-012024-03-3108188611core:PlantMachinerybus:Consolidated2023-04-012024-03-3108188611core:FurnitureFittingsbus:Consolidated2023-04-012024-03-3108188611core:ComputerEquipmentbus:Consolidated2023-04-012024-03-3108188611core:MotorVehiclesbus:Consolidated2023-04-012024-03-3108188611core:PlantMachinery2024-03-3108188611core:PlantMachinery2023-03-3108188611core:FurnitureFittings2024-03-3108188611core:FurnitureFittings2023-03-3108188611core:MotorVehicles2024-03-3108188611core:MotorVehicles2023-03-3108188611core:Subsidiary12023-04-012024-03-3108188611core:Subsidiary22023-04-012024-03-3108188611core:Subsidiary32023-04-012024-03-3108188611core:Subsidiary42023-04-012024-03-3108188611core:Subsidiary52023-04-012024-03-3108188611core:Subsidiary112023-04-012024-03-3108188611core:Subsidiary222023-04-012024-03-3108188611core:Subsidiary332023-04-012024-03-3108188611core:Subsidiary442023-04-012024-03-3108188611core:Subsidiary552023-04-012024-03-3108188611core:CurrentFinancialInstruments2024-03-3108188611core:CurrentFinancialInstruments2023-03-3108188611core:CurrentFinancialInstrumentsbus:Consolidated2024-03-3108188611core:CurrentFinancialInstrumentsbus:Consolidated2023-03-3108188611core:Non-currentFinancialInstrumentsbus:Consolidated2024-03-3108188611core:Non-currentFinancialInstrumentsbus:Consolidated2023-03-3108188611core:Non-currentFinancialInstruments2024-03-3108188611core:Non-currentFinancialInstruments2023-03-3108188611core:WithinOneYearbus:Consolidated2024-03-3108188611core:WithinOneYearbus:Consolidated2023-03-3108188611core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-3108188611core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3108188611core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2024-03-3108188611core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-03-3108188611core:Non-currentFinancialInstrumentscore:AfterOneYear2024-03-3108188611core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3108188611core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2024-03-3108188611core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-03-3108188611core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated12023-03-3108188611core:Non-currentFinancialInstrumentscore:AfterOneYear22023-03-3108188611core:WithinOneYear2024-03-3108188611core:WithinOneYear2023-03-3108188611core:BetweenTwoFiveYearsbus:Consolidated2024-03-3108188611core:BetweenTwoFiveYearsbus:Consolidated2023-03-3108188611core:BetweenTwoFiveYears2024-03-3108188611core:BetweenTwoFiveYears2023-03-3108188611bus:PrivateLimitedCompanyLtd2023-04-012024-03-3108188611bus:FRS1022023-04-012024-03-3108188611bus:Audited2023-04-012024-03-3108188611bus:ConsolidatedGroupCompanyAccounts2023-04-012024-03-3108188611bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP