REGISTERED NUMBER: 12508086 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2024 |
FOR |
MACL HOLDINGS LIMITED |
REGISTERED NUMBER: 12508086 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2024 |
FOR |
MACL HOLDINGS LIMITED |
MACL HOLDINGS LIMITED (REGISTERED NUMBER: 12508086) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 October 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 4 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
MACL HOLDINGS LIMITED |
COMPANY INFORMATION |
for the year ended 31 October 2024 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Mr Paul Dell FCA |
AUDITORS: |
8th Floor, Becket House |
36 Old Jewry |
London |
EC2R 8DD |
MACL HOLDINGS LIMITED (REGISTERED NUMBER: 12508086) |
GROUP STRATEGIC REPORT |
for the year ended 31 October 2024 |
The director presents his strategic report of the company and the group for the year ended 31 October 2024. |
REVIEW OF BUSINESS |
The group has had a very successful year with turnover increasing by 17% to £34.4m (2023: £29.3m). Gross margin reduced to 27.0% (2023: 29.7%) |
Operating profit was £6.03m (2023: £5.77m). The state of affairs at the balance sheet date is considered to be satisfactory with net assets of £10.15m (2023: £7.66m). |
The key financial performance indicators for the group are as follows:- |
2024 | 2023 | Measure |
Gross Profit Margin | 27.0% | 29.7% | Gross Profit/Turnover |
Debtors days | 57 days | 73 days | Trade Debtors/Turnover |
Creditor days | 74 days | 115 days | Trade Creditors / Cost of Sales |
Debtor and creditor days do not include related party balances. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties affecting the business include:- |
- Regulatory - the group operates in a highly regulated area. It maintains extremely high standards of quality control over its products and services. |
- Retention of customers - the group maintains strong relationships with each of its key customers and has established procedures for monitoring performance and service levels. |
- Competitive risk - the group's reliance on any single customer has reduced over the past few years as part of its strategy to mitigate its risk in this area. |
- Market conditions - the group's ability to adapt quickly to changes in the marketplace, mitigates the risk of this area. |
- Exchange rate risk - the group trades in dollars and maintains its banking and financing in dollar denominated accounts where possible to mitigate any exchange rate risk. There are translation differences at each year end but these are accounting adjustments for statutory reporting purposes. |
The director believes that the group has adequate financial resources in place to meet its forecast trading requirements and all risks and uncertainties are managed appropriately. |
FUTURE DEVELOPMENTS |
The group will continue to expand its product range whilst concentrating on products and services that deliver higher margins. |
The director is confident of delivering sustainable future growth in its sector. |
FINANCIAL INSTRUMENTS |
The group had banking facilities in place with IGF Business Credit during the year and operated within its facility limits. In February 2025, the group refinanced with HSBC to raise additional funds as part of its expansion plans. |
The group has not entered into any hedging arrangements as the director perceives the exchange rate risk to the business to be low. Although the reporting currency is in sterling, the operational currency is predominantly the US dollar. There are accounting adjustments in the accounts in relation to the translation of currency balances at the period end. |
ON BEHALF OF THE BOARD: |
5 May 2025 |
MACL HOLDINGS LIMITED (REGISTERED NUMBER: 12508086) |
REPORT OF THE DIRECTOR |
for the year ended 31 October 2024 |
The director presents his report with the financial statements of the company and the group for the year ended 31 October 2024. |
DIVIDENDS |
An interim dividend of £1336 per share was paid on 30 June 2024. The director recommends that no final dividend be paid. |
The total distribution of dividends for the year ended 31 October 2024 will be £ 1,202,485 . |
DIRECTOR |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Xeinadin Audit Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MACL HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of MACL Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 October 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MACL HOLDINGS LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MACL HOLDINGS LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the company through discussions with the director and other management, and from our commercial knowledge and experience of the company's sector; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, employment, health and safety legislation. |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where necessary. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected transactions; |
- tested the appropriateness of journal entries; |
- tested authorisation of expenditure; |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
To address the risk that revenue could be misstated due to fraud, we: |
- obtained an understanding of the company's revenue recognition policies and compared these to the accounting standard; |
- performed a walkthrough to confirm our understanding of the processes and controls through which the business initiates, records, processes and reports revenue transactions; |
- tested a sample of revenue transactions to supporting evidence; and |
- tested, on a sample basis, revenue related balances in the balance sheet. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- reading the minutes of meetings of those charged with governance; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC and relevant regulators. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MACL HOLDINGS LIMITED |
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 Report of the Auditors. |
Use of our 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 a Report of the Auditors 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 |
8th Floor, Becket House |
36 Old Jewry |
London |
EC2R 8DD |
MACL HOLDINGS LIMITED (REGISTERED NUMBER: 12508086) |
CONSOLIDATED |
INCOME STATEMENT |
for the year ended 31 October 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 4 | 34,428,122 | 29,344,962 |
Cost of sales | (25,157,792 | ) | (20,618,090 | ) |
GROSS PROFIT | 9,270,330 | 8,726,872 |
Administrative expenses | (3,370,677 | ) | (3,161,730 | ) |
5,899,653 | 5,565,142 |
Other operating income | 133,649 | 200,482 |
OPERATING PROFIT | 6 | 6,033,302 | 5,765,624 |
Interest payable and similar expenses | 7 | (804,443 | ) | (300,391 | ) |
PROFIT BEFORE TAXATION | 5,228,859 | 5,465,233 |
Tax on profit | 8 | (1,535,189 | ) | (1,428,935 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 3,693,670 | 4,036,298 |
MACL HOLDINGS LIMITED (REGISTERED NUMBER: 12508086) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
for the year ended 31 October 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 3,693,670 | 4,036,298 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
3,693,670 |
4,036,298 |
Total comprehensive income attributable to: |
Owners of the parent | 3,693,670 | 4,036,298 |
MACL HOLDINGS LIMITED (REGISTERED NUMBER: 12508086) |
CONSOLIDATED BALANCE SHEET |
31 October 2024 |
2024 | 2023 |
Notes | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | 4,542,504 | 5,381,121 |
Tangible assets | 12 | 70,803 | 53,531 |
Investments | 13 | - | - |
4,613,307 | 5,434,652 |
CURRENT ASSETS |
Stocks | 14 | 23,974,811 | 15,442,945 |
Debtors | 15 | 9,114,005 | 8,753,683 |
Cash at bank | 200,813 | 100,320 |
33,289,629 | 24,296,948 |
CREDITORS |
Amounts falling due within one year | 16 | 27,742,537 | 22,049,203 |
NET CURRENT ASSETS | 5,547,092 | 2,247,745 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
10,160,399 |
7,682,397 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(6,667 |
) |
(16,667 |
) |
PROVISIONS FOR LIABILITIES | 20 | (6,743 | ) | (9,926 | ) |
NET ASSETS | 10,146,989 | 7,655,804 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 900 | 900 |
Share premium | 22 | 2,639,100 | 2,639,100 |
Retained earnings | 22 | 7,506,989 | 5,015,804 |
SHAREHOLDERS' FUNDS | 10,146,989 | 7,655,804 |
The financial statements were approved by the director and authorised for issue on 5 May 2025 and were signed by: |
Mr N G Harvey - Director |
MACL HOLDINGS LIMITED (REGISTERED NUMBER: 12508086) |
COMPANY BALANCE SHEET |
31 October 2024 |
2024 | 2023 |
Notes | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Debtors | 15 |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Share premium |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit/(loss) for the financial year | 1,104,348 | (2,332 | ) |
The financial statements were approved by the director and authorised for issue on |
MACL HOLDINGS LIMITED (REGISTERED NUMBER: 12508086) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 October 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 November 2022 | 900 | 979,506 | 2,639,100 | 3,619,506 |
Changes in equity |
Total comprehensive income | - | 4,036,298 | - | 4,036,298 |
Balance at 31 October 2023 | 900 | 5,015,804 | 2,639,100 | 7,655,804 |
Changes in equity |
Dividends | - | (1,202,485 | ) | - | (1,202,485 | ) |
Total comprehensive income | - | 3,693,670 | - | 3,693,670 |
Balance at 31 October 2024 | 900 | 7,506,989 | 2,639,100 | 10,146,989 |
MACL HOLDINGS LIMITED (REGISTERED NUMBER: 12508086) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 October 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 November 2022 |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 October 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 October 2024 |
MACL HOLDINGS LIMITED (REGISTERED NUMBER: 12508086) |
CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 October 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (2,342,815 | ) | 1,378,143 |
Interest paid | (804,443 | ) | (300,391 | ) |
Tax paid | (759,709 | ) | (333,324 | ) |
Net cash from operating activities | (3,906,967 | ) | 744,428 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (52,689 | ) | (3,790 | ) |
Net cash from investing activities | (52,689 | ) | (3,790 | ) |
Cash flows from financing activities |
New loans in year | 5,301,948 | 414,477 |
Loan repayments in year | (10,000 | ) | - |
Amount introduced by directors | 1,135,680 | - |
Amount withdrawn by directors | (1,164,994 | ) | (1,135,680 | ) |
Equity dividends paid | (1,202,485 | ) | - |
Net cash from financing activities | 4,060,149 | (721,203 | ) |
Increase in cash and cash equivalents | 100,493 | 19,435 |
Cash and cash equivalents at beginning of year |
2 |
100,320 |
80,885 |
Cash and cash equivalents at end of year | 2 | 200,813 | 100,320 |
MACL HOLDINGS LIMITED (REGISTERED NUMBER: 12508086) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 October 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 5,228,859 | 5,465,233 |
Depreciation charges | 874,034 | 882,106 |
Finance costs | 804,443 | 300,391 |
6,907,336 | 6,647,730 |
Increase in stocks | (8,531,866 | ) | (6,139,310 | ) |
Increase in trade and other debtors | (331,007 | ) | (3,803,116 | ) |
(Decrease)/increase in trade and other creditors | (387,278 | ) | 4,672,839 |
Cash generated from operations | (2,342,815 | ) | 1,378,143 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 October 2024 |
31.10.24 | 1.11.23 |
£ | £ |
Cash and cash equivalents | 200,813 | 100,320 |
Year ended 31 October 2023 |
31.10.23 | 1.11.22 |
£ | £ |
Cash and cash equivalents | 100,320 | 80,885 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.11.23 | Cash flow | At 31.10.24 |
£ | £ | £ |
Net cash |
Cash at bank | 100,320 | 100,493 | 200,813 |
100,320 | 100,493 | 200,813 |
Debt |
Debts falling due within 1 year | (2,733,184 | ) | (5,301,948 | ) | (8,035,132 | ) |
Debts falling due after 1 year | (16,667 | ) | 10,000 | (6,667 | ) |
(2,749,851 | ) | (5,291,948 | ) | (8,041,799 | ) |
Total | (2,649,531 | ) | (5,191,455 | ) | (7,840,986 | ) |
MACL HOLDINGS LIMITED (REGISTERED NUMBER: 12508086) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 October 2024 |
1. | STATUTORY INFORMATION |
MACL Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements include the financial statements of the company and its subsidiary undertakings made up to 31 October 2024. A subsidiary is an entity that is controlled by the parent. The results of subsidiary undertakings are included in the consolidated profit and loss account from the date that control commences until the date that control ceases. Control is established when the company has the power to govern the operating and financial policies of an entity so as to obtain benefits from its activities. In assessing control, the group takes into consideration potential voting rights that are currently exercisable. |
In the parent financial statements, investments in subsidiaries are carried at cost less impairment. |
Turnover |
Turnover represents the invoiced value of goods and services supplied to external customers, excluding value added tax. Turnover is recognised and a debtor recorded as accrued income once all obligations under the sales order have been performed. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Short leasehold | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. The group assesses at each reporting date whether tangible fixed assets are fully impaired. |
Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since last annual reporting date in the pattern by which the group expects to consume an asset's future economic benefits. |
MACL HOLDINGS LIMITED (REGISTERED NUMBER: 12508086) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 October 2024 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell (net realisable value). Costs, which comprise direct production costs, are based on the method most appropriate to the type of inventory class. Overheads are charged to profit or loss as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs. |
When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of stocks recognised as an expense in the period in which the reversal occurs. |
Financial instruments |
Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price, 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. |
Such assets are subsequently carried at amortised cost using the effective interest method. |
Basic financial liabilities, including trade and other payables, bank loans and loans from fellow Group companies that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
The financial statements are presented in sterling. The company's functional currency is the US dollar. Monetary items denominated in other currencies are translated at the rate prevailing at the end of the reporting period. All resulting translation differences are taken to the profit and loss account. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
MACL HOLDINGS LIMITED (REGISTERED NUMBER: 12508086) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 October 2024 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Fixed asset investments |
Fixed asset investments are shown at acquisition cost subject to any provisions for permanent diminution in value. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the Group's accounting policies, which are described above, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
Outright sales | 11,361,280 | 24,179,541 |
Repairs | 8,951,312 | 3,160,928 |
Exchange | 14,115,530 | 2,004,493 |
34,428,122 | 29,344,962 |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 5,508,500 | 4,011,267 |
Europe | 16,869,780 | 10,155,705 |
Rest of the World | 12,049,842 | 15,177,990 |
34,428,122 | 29,344,962 |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 1,084,631 | 792,036 |
Social security costs | 140,300 | 74,307 |
Other pension costs | 22,658 | 26,076 |
1,247,589 | 892,419 |
MACL HOLDINGS LIMITED (REGISTERED NUMBER: 12508086) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 October 2024 |
5. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2024 | 2023 |
Administration and management | 7 | 6 |
Operations | 7 | 6 |
Sales | 8 | 7 |
The average number of employees by undertakings that were proportionately consolidated during the year was 22 (2023 - 19 ) . |
2024 | 2023 |
£ | £ |
Directors' remuneration | 349,667 | 230,400 |
Information regarding the highest paid director for the year ended 31 October 2024 is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc. | 260,000 | 116,400 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 24,725 | 14,495 |
Other operating leases | 349,885 | 309,130 |
Depreciation - owned assets | 35,417 | 43,489 |
Goodwill amortisation | 838,617 | 838,616 |
Auditors' remuneration | 31,000 | 30,000 |
Foreign exchange differences | (129,356 | ) | (198,255 | ) |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Interest payable | 792,904 | 300,391 |
Other interest payable | 11,539 | - |
804,443 | 300,391 |
MACL HOLDINGS LIMITED (REGISTERED NUMBER: 12508086) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 October 2024 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 1,538,372 | 1,434,532 |
Deferred tax | (3,183 | ) | (5,597 | ) |
Tax on profit | 1,535,189 | 1,428,935 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 5,228,859 | 5,465,233 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 22.518 %) |
1,307,215 |
1,230,661 |
Effects of: |
Expenses not deductible for tax purposes | 253,981 | 195,712 |
Depreciation in excess of capital allowances | 4,553 | 8,292 |
Deferred tax | (3,183 | ) | (5,597 | ) |
Unrelieved losses carried forward | - | 676 |
Change in tax rate | - | (809 | ) |
Other adjustments | (4,977 | ) | - |
Utilisation of tax losses | (22,400 | ) | - |
Total tax charge | 1,535,189 | 1,428,935 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
10. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Interim | 1,202,485 | - |
MACL HOLDINGS LIMITED (REGISTERED NUMBER: 12508086) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 October 2024 |
11. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 November 2023 |
and 31 October 2024 | 8,386,162 |
AMORTISATION |
At 1 November 2023 | 3,005,041 |
Amortisation for year | 838,617 |
At 31 October 2024 | 3,843,658 |
NET BOOK VALUE |
At 31 October 2024 | 4,542,504 |
At 31 October 2023 | 5,381,121 |
12. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Short | and | Motor | Computer |
leasehold | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 November 2023 | 34,484 | 150,288 | 6,595 | 62,863 | 254,230 |
Additions | 1,100 | 3,375 | 44,000 | 4,214 | 52,689 |
At 31 October 2024 | 35,584 | 153,663 | 50,595 | 67,077 | 306,919 |
DEPRECIATION |
At 1 November 2023 | 15,230 | 126,896 | 6,595 | 51,978 | 200,699 |
Charge for year | 3,559 | 21,001 | 2,933 | 7,924 | 35,417 |
At 31 October 2024 | 18,789 | 147,897 | 9,528 | 59,902 | 236,116 |
NET BOOK VALUE |
At 31 October 2024 | 16,795 | 5,766 | 41,067 | 7,175 | 70,803 |
At 31 October 2023 | 19,254 | 23,392 | - | 10,885 | 53,531 |
MACL HOLDINGS LIMITED (REGISTERED NUMBER: 12508086) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 October 2024 |
13. | FIXED ASSET INVESTMENTS |
Company |
Unlisted |
investments |
£ |
COST |
At 1 November 2023 |
and 31 October 2024 |
NET BOOK VALUE |
At 31 October 2024 |
At 31 October 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
MEL Aviation Components Limited |
Registered office: Unit 2 Centron, Crompton Way, Crawley, West Sussex, England, RH10 9QR |
Nature of business: Aviation engineering |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves | 13,012,584 | 9,584,444 |
Profit for the year | 4,630,425 | 4,877,245 |
14. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Finished goods | 23,974,811 | 15,442,945 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 5,327,732 | 5,886,888 |
Other debtors | 2,361,626 | 1,527,492 |
Directors' current accounts | 1,164,995 | 1,135,680 | - | - |
VAT | 25,929 | 110,498 |
Prepayments | 233,723 | 93,125 |
9,114,005 | 8,753,683 |
MACL HOLDINGS LIMITED (REGISTERED NUMBER: 12508086) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 October 2024 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 8,035,132 | 2,733,184 |
Trade creditors | 5,102,816 | 6,489,893 |
Amounts owed to group undertakings | - | - |
Tax | 2,588,786 | 1,858,511 |
Social security and other taxes | 51,131 | 22,090 |
Other creditors | 9,559,099 | 9,861,615 |
Accruals and deferred income | 2,405,573 | 1,083,910 |
27,742,537 | 22,049,203 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Bank loans (see note 18) | 6,667 | 16,667 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 8,035,132 | 2,733,184 |
Amounts falling due between one and two | years: |
Bank loans | 6,667 | 16,667 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Bank loans | 8,041,799 | 2,749,851 |
IGF Business Credit Limited hold fixed and floating charges over the assets of the group in support of banking and invoice discounting facilities. |
The finance lease liabilities are secured on the related assets. |
MACL HOLDINGS LIMITED (REGISTERED NUMBER: 12508086) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 October 2024 |
20. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax | 6,743 | 9,926 |
Group |
Deferred |
tax |
£ |
Balance at 1 November 2023 | 9,926 |
Provided during year | (3,183 | ) |
Balance at 31 October 2024 | 6,743 |
21. | CALLED UP SHARE CAPITAL |
Allotted and issued: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Share capital 1 | £1 | 900 | 900 |
22. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 November 2023 | 5,015,804 | 2,639,100 | 7,654,904 |
Profit for the year | 3,693,670 | 3,693,670 |
Dividends | (1,202,485 | ) | (1,202,485 | ) |
At 31 October 2024 | 7,506,989 | 2,639,100 | 10,146,089 |
23. | PENSION COMMITMENTS |
The group operates a fully insured defined contribution pension scheme for certain members of staff and the director. The pension charge represents the amounts paid by the group to the fund during the year. Payments during the year, amounted to £36,389 (2023: £26,076). These contributions are invested separately from the group's assets. |
MACL HOLDINGS LIMITED (REGISTERED NUMBER: 12508086) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 October 2024 |
24. | DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31 October 2024 and 31 October 2023: |
2024 | 2023 |
£ | £ |
N G Harvey |
Balance outstanding at start of year | 1,135,680 | - |
Amounts advanced | 1,164,995 | 1,135,680 |
Amounts repaid | (1,135,680 | ) | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 1,164,995 | 1,135,680 |
The loan will be repaid within 9 months of the balance sheet date. |
25. | RELATED PARTY DISCLOSURES |
The group has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Included in other creditors, there is a balance of £1,855,000 (2023:£1,855,000) owed to Mr G W Harvey, the father of Mr N Harvey. |