Company Registration No. 11311396 (England and Wales)
MD HOLDINGS (LONDON) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
MD HOLDINGS (LONDON) LIMITED
COMPANY INFORMATION
Director
Ms A Malcoci
(Appointed 10 November 2023)
Company number
11311396
Registered office
Old Bank House
57 Church Street
Staines
United Kingdom
TW18 4XS
Auditor
David Howard
1 Park Road
Hampton Wick
Kingston Upon Thames
KT1 4AS
MD HOLDINGS (LONDON) LIMITED
CONTENTS
Page
Strategic report
1 - 5
Director's report
6
Director's responsibilities statement
7
Independent auditor's report
8 - 11
Group profit and loss account
12
Group statement of comprehensive income
13
Group balance sheet
14 - 15
Company balance sheet
16 - 17
Group statement of changes in equity
18
Company statement of changes in equity
19
Group statement of cash flows
20
Notes to the financial statements
21 - 41
MD HOLDINGS (LONDON) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The director presents the strategic report for the year ended 30 September 2024.
Business Review
The principal activity of the group is the provision of brickwork and block work services on a subcontractor basis to our long-term contractors which subsequently develop new residential properties ranging from starter homes to executive houses and commercial premises.
In 2024, the group continued to deliver high-quality brickwork and block work services on a subcontractor basis to our long-term contractors, contributing to the construction of new residential properties from starter homes to executive houses, as well as commercial developments.
This year brought with it a challenging economic climate, marked by sustained increases in the cost of materials and labour. In addition, the UK construction industry faced a significant shortage of skilled workers, creating operational pressures across the sector.
Despite these hurdles, the group remained resilient and proactive. It operated across 52 live sites, completing 2,701 plots, supported by a team that dedicated 1,023,000 working hours. These efforts underscore our unwavering commitment to meeting client demands with efficiency and exceptional workmanship.
In summary, 2024 was a year defined by adaptability and strategic action. The group navigated supply and workforce constraints without compromising on quality, further cementing our reputation as a trusted subcontractor. It looks ahead with confidence, ready to embrace future opportunities and continue building with excellence.
Principal risks and uncertainties
Credit Risk:
The group’s credit risk is attributable to its trade debtors, who are now credit checked before the group engages in business.
The debtors are continuously monitored for a change in credit history, which allows the group to adapt and change rapidly if it deems that the customer may become a risk. This helps to minimize any potential bad debt. The group primarily trades with blue chip companies thereby reducing the risk of bad debts further. The credit control function is continually monitoring the trade debtors and constantly chasing debts as the fall due.
The group has long stood and strong relationships with customers thus reducing the credit risk even further.
Market Fluctuations:
Economic conditions and market demand can fluctuate, affecting the availability of projects and pricing for brickwork services.
Mortgage constraints, applied through appropriate regulation and sensible lending criteria, provide a sustainable base for the housing market. However, the housing industry is sensitive to economic conditions such as changes in employment levels, interest rates and consumer confidence. The current 'cost of living' crisis, high inflation and energy costs together with increases to interest rates present a risk to the business through reduced affordability for borrowers.
Any deterioration in the UK economy may have a detrimental effect on the demand and pricing for new homes, which could have a significant decrease in the demand of the construction services the group is providing and a subsequent material effect on it’s turnover and profitability.
MD HOLDINGS (LONDON) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Liquidity Risk:
The group's cash position is strong, In the short and long term the group procedures cash flow forecasts weekly, quarterly and annually, these are used as a tool to monitor the group's liquidity position constantly. Into management and the director take an active interest and review the group's forecasts and offer strategic input and advice.
Interest Rate Risk:
The group has set loan agreements and hire purchase agreements at standard interest rates; therefore, it is not affected by interest rate fluctuations.
Political Risk:
At the time of presenting this report, the group does not envisage a change in government in the UK in the coming year. What was not foreseen is higher inflation, higher cost of borrowing, and low confidence in the UK as a financially stable country thus negatively effecting investment and causing delay to project start dates.
Supply Chain Disruptions:
Delays or disruptions in the supply chain for bricks, mortar, and other materials can impact project timelines and costs.
Regulatory Compliance:
Non-compliance with building codes, zoning regulations, and safety standards can result in fines, legal liabilities, and project delays.
Labour Shortages:
As production of new houses increases across the sector, demand for our group's services also increases and this sometimes leads to labour shortages. Finding skilled bricklayers and other construction workers can be challenging, leading to potential delays and increased labour costs.
Health and Safety Risks:
Construction sites inherently pose risks to workers' health and safety. Accidents or injuries can lead to legal liabilities and increased insurance premiums.
Weather Conditions:
Adverse weather, such as heavy rain or extreme temperatures, can delay projects and affect the quality of brickwork.
Contract Disputes:
Disagreements with clients, subcontractors, or suppliers over project specifications, timelines, or payments can lead to disputes and legal actions.
Competition:
Competing with other brickwork businesses for projects can lead to pricing pressure and potentially reduced profit margins.
Technological Changes:
Advancements in construction technology and techniques may require ongoing training and investment in new equipment to remain competitive.
MD HOLDINGS (LONDON) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
Environmental Regulations:
Increasing emphasis on sustainability and environmental considerations may require compliance with additional regulations and the adoption of eco-friendly practices.
Project Delays:
Unforeseen circumstances, such as permitting issues or unexpected site conditions, can lead to delays in project completion.
Client Solvency:
The financial stability of clients can impact payment timelines, especially if a client encounters financial difficulties during a project.
Political and Economic Stability:
Political instability, policy changes, or economic crises in a region can impact the construction industry and project opportunities.
Technological Risks:
Reliance on technology for project management, design, and communication introduces the risk of technical failures or cybersecurity breaches.
Development and performance
MD Holdings (London) Limited mitigates these risks by implementing strategies such as thorough project planning, maintaining strong relationships with suppliers and clients regarding volume requirements, negotiating contract pricing and duration as appropriate.
This risk is managed by maintaining regular contact with suppliers regarding volume requirements and negotiating contract pricing and duration as appropriate. As part of the subcontractor selection process key competencies are considered, particularly in relation to health and safety and quality of work. Investing in employee training and staying informed about industry trends and regulatory changes is at the core of our group values. Additionally we have also created a robust risk management plan and appropriate insurance coverage to ensure a vigorous level of protection against unforeseen events.
MD HOLDINGS (LONDON) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
Key performance indicators
MD Holdings (London) Limited drive operational efficiencies from strong construction and specification controls, in time delivery of the projects and best expertise in the field.
The key performance indicators are given below:
Turnover £36,716,043 (2023: £39,007,742)
Profit before taxation £1,131,364 (2023: £3,354,156)
Tax on profit £370,119 (2023: £665,063)
Profit for the financial year £761,245 (2023: £2,689,093)
Turnover and profit before taxation:
Turnover and profit before taxation have decreased because during the year the there were less projects available at lower margins, due to the concern over interest rates and rising costs of materials and labour. The company overall remains highly liquid with a healthy cash balance and banking facilities. Tight cost control and cash management has enabled the business to maintain a strong cash position within the current economic landscape. The net assets of the business also continue to grow in line with trading activities.
Director’s statement of compliance with duty to promote the success.
I, the director of MD Holdings, hereby affirm my commitment to comply with the duty set forth in section 172 of the Companies Act 2006.
I acknowledge that, as director, I have a statutory duty to act in a way that I consider, in good faith, would be most likely to promote the success of MD Holdings for the benefit of its shareholders. In fulfilling this duty, I will consider the following factors:
- Promotion of the Group's Success: I will make decisions that are intended to promote the long-term success of MD Holdings, taking into consideration the interests of shareholders, employees, customers, suppliers, the community, and the environment.
- Consideration of Stakeholder Interests: I will give due regard to the interests of stakeholders and aim to maintain a balanced and sustainable relationship with them.
- Impact on Employees: I will seek to foster a positive working environment, ensure the well-being of employees, and consider their interests in decision-making processes.
- Relationship with Customers and Suppliers: I will endeavour to maintain positive and mutually beneficial relationships with customers and suppliers, ensuring that transactions are conducted fairly and transparently.
-Environmental and Social Impact: I will consider the group's impact on the community and the environment, striving for ethical and sustainable practices.
- Compliance with Legal Obligations: I will ensure that MD Holdings operates in compliance with all relevant laws, regulations, and industry standards.
- Exercise of Independent Judgment: I will apply independent judgment in making decisions and avoid conflicts of interest that could compromise the best interests of the group.
MD HOLDINGS (LONDON) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
I affirm that I will discharge my duties with diligence, care, and skill, in accordance with the highest standards of professional conduct. I will regularly review and assess the group's strategies and operations to ensure they align with the best interests of MD Holdings and its stakeholders.
Environmental Policy:
I am fully cognisant of the potential impact of the group on the wider environment and the people I engage with. I follow up to date environmental and health and safety policy and practice with a team of qualified professionals employed to ensure I fulfil my responsibilities.
Future developments:
The group is in a strong position to trade profitably through the current market conditions. The group's focus on its markets, costs and cash generation will continue to help us remain competitive and successful.
Health and safety will remain core to the group's business principles. We will continue to develop our formal health and safety management systems to reflect the growth of the business and changing regulatory requirements. We look forward to delivering more new homes in 2025 and beyond creating high-quality homes across UK.
Ms A Malcoci
Director
27 June 2025
MD HOLDINGS (LONDON) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 6 -
The director presents his annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company and group continued to be that of building services.
Results and dividends
The results for the year are set out on page 12.
Ordinary dividends were paid amounting to £63,000. The director does not recommend payment of a further dividend.
Future developments
The group is in a strong position to trade profitably through the current market conditions. The group's focus on its markets, costs and cash generation will continue to help us remain competitive and successful.
Health and safety will remain core to the group's business principles. We will continue to develop our formal health and safety management systems to reflect the growth of the business and changing regulatory requirements. We look forward to delivering more new homes in 2024 and beyond creating high-quality homes across UK.
Director
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr I Ionas
(Resigned 10 November 2023)
Ms A Malcoci
(Appointed 10 November 2023)
Energy and carbon report
As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumptions or energy efficiency activities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving the report is aware, there is no relevant audit information of which the group's auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the group's auditor is aware of that information.
On behalf of the board
Ms A Malcoci
Director
27 June 2025
MD HOLDINGS (LONDON) LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 7 -
The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
MD HOLDINGS (LONDON) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MD HOLDINGS (LONDON) LIMITED
- 8 -
Opinion
We have audited the financial statements of MD Holdings (London) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group profit and loss account, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 30 September 2024 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
MD HOLDINGS (LONDON) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MD HOLDINGS (LONDON) LIMITED
- 9 -
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the director's report.
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 directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
MD HOLDINGS (LONDON) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MD HOLDINGS (LONDON) LIMITED
- 10 -
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional is representations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those that relate to the reporting framework (United Kingdom Generally Accepted Accounting Practice and the Companies Act 2006) and relevant tax compliance regulations in the United Kingdom.
We understood how MD Holdings (London) Ltd is complying with those frameworks by making enquiries of management to understand how the Company maintains and communicates its policies and procedures relating to these areas and corroborated this by reviewing supporting documentation. We assessed the culture and entity level control framework of the Company to consider if appropriate measures are in place around fraud prevention. We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by considering the risk of management override. We performed journal entry testing by specific risk criteria, with a focus on journals indicating large or unusual transactions based on our understanding of the business.
Based on this understanding we designed our audit procedures to identify noncompliance with such laws and regulations. Our procedures involved inquiries of management and those charged with governance, review of legal and professional expenses and review of board meeting minutes.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
MD HOLDINGS (LONDON) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MD HOLDINGS (LONDON) LIMITED
- 11 -
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Nicola King
Senior Statutory Auditor
For and on behalf of David Howard
27 June 2025
Chartered Accountants
Statutory Auditor
1 Park Road
Hampton Wick
Kingston Upon Thames
KT1 4AS
MD HOLDINGS (LONDON) LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
2024
2023
Notes
£
£
Turnover
3
36,716,043
39,007,744
Cost of sales
(29,885,560)
(29,711,607)
Gross profit
6,838,601
9,309,713
Administrative expenses
(5,484,670)
(5,941,356)
Interest receivable and similar income
7
15,450
12,456
Interest payable and similar expenses
8
(236,629)
(234,646)
Change in fair value of investment property
9
(1,388)
207,989
Profit before taxation
1,131,364
3,354,156
Tax on profit
10
(370,119)
(665,063)
Profit for the financial year
761,245
2,689,093
Profit for the financial year is all attributable to the owners of the parent company.
MD HOLDINGS (LONDON) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
2024
2023
£
£
Profit for the year
761,245
2,689,093
Other comprehensive income
-
-
Total comprehensive income for the year
761,245
2,689,093
Total comprehensive income for the year is all attributable to the owners of the parent company.
MD HOLDINGS (LONDON) LIMITED
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 14 -
2024
2023
Restated
Notes
£
£
£
£
Fixed assets
Intangible assets
12
455
937
Tangible assets
13
7,014,890
8,015,268
Investment properties
14
900,000
900,000
Investments
15
214
7,915,345
8,916,419
Current assets
Stocks
18
749,275
1,286,147
Debtors
19
9,071,195
7,810,036
Investments
102,300
Cash at bank and in hand
1,099,162
1,240,849
10,919,632
10,439,332
Creditors: amounts falling due within one year
20
(5,956,112)
(6,533,556)
Net current assets
4,963,520
3,905,776
Total assets less current liabilities
12,878,865
12,822,195
Creditors: amounts falling due after more than one year
(1,754,040)
(2,147,234)
Provisions for liabilities
Deferred tax liability
23
(58,241)
80,919
58,241
(80,919)
Net assets
11,183,066
10,594,042
Capital and reserves
Called up share capital
25
187
200
Profit and loss reserves
11,182,879
10,593,842
Total equity
11,183,066
10,594,042
MD HOLDINGS (LONDON) LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
30 SEPTEMBER 2024
30 September 2024
- 15 -
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
Ms A Malcoci
Director
MD HOLDINGS (LONDON) LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 16 -
2024
2023
Restated
Notes
£
£
£
£
Fixed assets
Investments
15
416
416
Current assets
Debtors
19
882,703
962,192
Cash at bank and in hand
17,242
23,161
899,945
985,353
Creditors: amounts falling due within one year
20
(95,904)
(113,432)
Net current assets
804,041
871,921
Net assets
804,457
872,337
Capital and reserves
Called up share capital
25
200
200
Profit and loss reserves
804,257
872,137
Total equity
804,457
872,337
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 £4,880 (2023 - £1,096,137 profit).
For the financial year ended 30 September 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies and was also entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
MD HOLDINGS (LONDON) LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2024
30 September 2024
- 17 -
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
Ms A Malcoci
Director
Company Registration No. 11311396
MD HOLDINGS (LONDON) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
200
8,128,749
8,128,949
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
2,689,093
2,689,093
Dividends
11
-
(224,000)
(224,000)
Balance at 30 September 2023
200
10,593,842
10,594,042
Year ended 30 September 2024:
Profit and total comprehensive income for the year
-
761,245
761,245
Dividends
11
-
(63,000)
(63,000)
Balance at 30 September 2024
200
11,292,087
11,292,287
MD HOLDINGS (LONDON) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
200
200
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
1,096,137
1,096,137
Dividends
11
-
(224,000)
(224,000)
Balance at 30 September 2023
200
872,137
872,337
Year ended 30 September 2024:
Loss and total comprehensive income for the year
-
(4,880)
(4,880)
Dividends
11
-
(63,000)
(63,000)
Balance at 30 September 2024
200
804,257
804,457
MD HOLDINGS (LONDON) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
2,478,428
8,231,925
Interest paid
(236,629)
(234,646)
Income taxes paid
(882,175)
(471,949)
Net cash inflow from operating activities
1,359,624
7,525,330
Investing activities
Purchase of intangible assets
-
(1,041)
Purchase of tangible fixed assets
(2,093,036)
(3,411,220)
Proceeds on disposal of tangible fixed assets
1,066,444
237,286
Proceeds on disposal of subsidiaries
214
-
Proceeds on disposal of investments
100,912
-
Receipts arising from loans made
13,955
57,547
Interest received
26,782
23,788
Net cash used in investing activities
(884,729)
(3,093,640)
Financing activities
Repayment of borrowings
-
50,000
Repayment of bank loans
(199,373)
276,239
Payment of finance leases obligations
(353,874)
177,789
Dividends paid to equity shareholders
(63,000)
(224,000)
Net cash (used in)/generated from financing activities
(616,247)
280,028
Net (decrease)/increase in cash and cash equivalents
(141,352)
4,711,718
Cash and cash equivalents at beginning of year
1,240,514
(3,471,204)
Cash and cash equivalents at end of year
1,099,162
1,240,514
Relating to:
Cash at bank and in hand
1,099,162
1,240,849
Bank overdrafts included in creditors payable within one year
-
(335)
MD HOLDINGS (LONDON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
1
Accounting policies
Company information
MD Holdings (London) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Old Bank House, 57 Church Street, Staines, Middlesex, United Kingdom, TW18 4XS.
The group consists of MD Holdings (London) Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. 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’ and Section 12 ‘Other Financial Instrument Issues: The disclosure requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b), and 12.29A;
Section 26 ‘Share based Payment’: Share based payment arrangements required under FRS 102 paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
MD HOLDINGS (LONDON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 22 -
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company MD Holdings (London) 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 30 September 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
MD HOLDINGS (LONDON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 23 -
1.4
Going concern
At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
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
No depreciation
Plant and equipment
20% straight line
Fixtures and fittings
20% straight line
Computers
20% straight line
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.
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.
MD HOLDINGS (LONDON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 24 -
1.8
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
The loan in MDP is fixed against the property and HP loans are secured against the assets to which they relate.
MD HOLDINGS (LONDON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 25 -
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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
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, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
MD HOLDINGS (LONDON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 26 -
1.12
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
MD HOLDINGS (LONDON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 27 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
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.
MD HOLDINGS (LONDON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 28 -
1.15
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.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Finance 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.
1.18
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.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
MD HOLDINGS (LONDON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 29 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
36,716,043
39,007,744
2024
2023
£
£
Other significant revenue
Interest income
15,450
12,456
2024
2023
£
£
Turnover analysed by geographical market
UK
32,336,896
36,070,297
Europe
4,379,147
2,937,447
36,716,043
39,007,744
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
34,967
(89,082)
Depreciation of owned tangible fixed assets
991,165
988,421
(Profit)/loss on disposal of tangible fixed assets
(22,201)
70,885
Amortisation of intangible assets
270
281
Operating lease charges
63,986
128,481
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
21,500
41,500
Audit of the financial statements of the company's subsidiaries
26,500
65,000
48,000
106,500
MD HOLDINGS (LONDON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
5
Auditor's remuneration
(Continued)
- 30 -
For services in respect of associated pension schemes
Audit
-
100
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
93
103
1
1
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,993,953
2,379,836
Social security costs
390,596
223,922
-
-
Pension costs
43,155
58,347
3,427,704
2,662,105
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
10
Other interest income
15,450
12,446
Total income
15,450
12,456
MD HOLDINGS (LONDON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 31 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
45,595
52,322
Other interest on financial liabilities
97,316
46,969
Interest on finance leases and hire purchase contracts
39,344
75,105
Other interest
54,374
60,250
Total finance costs
236,629
234,646
9
Amounts written off investments
2024
2023
£
£
Loss on disposal of investments held at fair value
(1,388)
-
Changes in the fair value of investment properties
-
207,989
(1,388)
207,989
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
509,280
747,804
Adjustments in respect of prior periods
(121,743)
Total current tax
509,280
626,061
Deferred tax
Origination and reversal of timing differences
(139,161)
39,002
Total tax charge
370,119
665,063
MD HOLDINGS (LONDON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
10
Taxation
(Continued)
- 32 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,131,364
3,354,156
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.01%)
282,841
738,250
Tax effect of expenses that are not deductible in determining taxable profit
36,517
(247,290)
Gains not taxable
(2,877)
6,023
Group relief
(66,814)
(35,711)
Permanent capital allowances in excess of depreciation
(64,611)
(54,095)
Depreciation on assets not qualifying for tax allowances
48,921
41,606
Effect of overseas tax rates
274,218
47,152
Deferred tax adjustments in respect of prior years
(139,160)
(82,741)
Dividend income
-
251,662
Timing difference
1,084
207
Taxation charge
370,119
665,063
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
63,000
224,000
MD HOLDINGS (LONDON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 33 -
12
Intangible fixed assets
Group
Software
£
Cost
At 1 October 2023
1,543
Exchange adjustments
(224)
At 30 September 2024
1,319
Amortisation and impairment
At 1 October 2023
606
Amortisation charged for the year
270
Exchange adjustments
(12)
At 30 September 2024
864
Carrying amount
At 30 September 2024
455
At 30 September 2023
937
MD HOLDINGS (LONDON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 34 -
13
Tangible fixed assets
Group
Freehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 October 2023
514,553
1,179,438
6,808,423
116,293
52,852
1,404,387
10,075,946
Additions
998,039
950,536
22,683
7,030
114,748
2,093,036
Disposals
(896,374)
(153,596)
(16,148)
(74,342)
(1,140,460)
Exchange adjustments
(74,707)
(171,243)
(920,686)
(2,463)
(28,352)
(1,197,451)
At 30 September 2024
439,846
1,109,860
6,684,677
120,365
59,882
1,416,441
9,831,071
Depreciation and impairment
At 1 October 2023
1,191,911
62,532
24,305
781,930
2,060,678
Depreciation charged in the year
748,944
20,861
11,168
210,192
991,165
Eliminated in respect of disposals
(46,157)
(50,060)
(96,217)
Exchange adjustments
(133,786)
(634)
(5,025)
(139,445)
At 30 September 2024
1,760,912
82,759
35,473
937,037
2,816,181
Carrying amount
At 30 September 2024
439,846
1,109,860
4,923,765
37,606
24,409
479,404
7,014,890
At 30 September 2023
514,553
1,179,438
5,616,512
53,761
28,547
622,457
8,015,268
MD HOLDINGS (LONDON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
13
Tangible fixed assets
(Continued)
- 35 -
The total net book value of motor vehicles held under hire purchase is £134,283 (2023 - £133,844) and total net book value of plant & machinery held under hire purchase is £89,900 (2023 - £8,437.50).
14
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 October 2023 and 30 September 2024
900,000
-
Investment property comprises Unit 5 Britannia Court, The Green, West Drayton, UB7 7PN
15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
16
214
416
416
Movements in fixed asset investments
Group
Shares in subsidiaries
£
Cost or valuation
At 1 October 2023
214
Eliminated group balances
(214)
At 30 September 2024
-
Carrying amount
At 30 September 2024
-
At 30 September 2023
214
MD HOLDINGS (LONDON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
15
Fixed asset investments
(Continued)
- 36 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2023 and 30 September 2024
416
Carrying amount
At 30 September 2024
416
At 30 September 2023
416
MD HOLDINGS (LONDON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 37 -
16
Subsidiaries
Details of the company's subsidiaries at 30 September 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
House Brickwork Limited
Old Bank House, 57 Church Street, Staines, Middlesex, United Kingdom, TW18 4XS
Ordinary Shares
100.00
MD Properties (London) Ltd
Old Bank House, 57 Church Street, Staines, United Kingdom, TW18 4XS
Ordinary Shares
100.00
MD Developments (London) Ltd
Old Bank House, 57 Church Street, Staines, Middlesex, TW18 4XS
Ordinary Shares
100.00
ICS Service Tulis SRL
Costesti, Ialoveni, Moldova
Ordinary Shares
88.15
MD Brickwork (London) Limited
Unit 5, Britannia Court, The Green, West Drayton, Middlesex, United Kingdom, UB7 7PN
Ordinary Shares
100.00
Nikolas Homes Limited
Unit 5, Britannia Court, The Green, West Drayton, Middlesex, UB7 7PN
Ordinary Shares
100.00
17
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
-
102,300
-
-
18
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Work in progress
749,275
1,286,147
-
-
19
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,315,295
2,167,130
Corporation tax recoverable
80,440
120,710
Amounts owed by group undertakings
206,585
16,158
-
132,530
Other debtors
6,087,993
5,281,032
881,327
829,662
Prepayments and accrued income
380,882
225,006
1,376
9,071,195
7,810,036
882,703
962,192
MD HOLDINGS (LONDON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 38 -
20
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
174,382
184,717
Obligations under finance leases
22
193,680
343,733
Other borrowings
21
50,000
50,000
Trade creditors
1,968,614
1,693,975
Amounts owed to group undertakings
779,807
991,502
112,228
63,100
Corporation tax payable
1,013,593
1,426,759
Other taxation and social security
77,228
139,761
-
-
Other creditors
785,437
485,326
(16,426)
35,732
Accruals and deferred income
913,371
1,217,783
102
14,600
5,956,112
6,533,556
95,904
113,432
Finance lease payments represent rentals payable by the company or 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 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The HP loans are secured against the assets to which they relate.
The long-term bank loans are secured by fixed charges over the fixed assets of the company.
21
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
1,318,359
1,517,732
Bank overdrafts
335
Other loans
50,000
50,000
1,368,359
1,568,067
-
-
Payable within one year
224,382
234,717
Payable after one year
1,143,977
1,333,350
The long-term bank loans are secured by fixed charges over the fixed assets of the company.
MD HOLDINGS (LONDON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 39 -
22
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
193,680
343,733
In two to five years
610,063
813,884
803,743
1,157,617
-
-
Finance lease payments represent rentals payable by the company or 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 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The loan in MDP is fixed against the property. The HP loans are secured against the assets to which they relate.
The long-term bank loans are secured by fixed charges over the fixed assets of the company.
23
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
(58,241)
80,919
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 October 2023
80,919
-
Credit to profit or loss
(139,160)
-
Asset at 30 September 2024
(58,241)
-
MD HOLDINGS (LONDON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
23
Deferred taxation
(Continued)
- 40 -
The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
43,155
58,347
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.
25
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
200
200
200
200
26
Related party transactions
During the year under review, the company paid rent to M D Properties (London) Limited, a company under common control. The balance due from the M D Properties (London) Limited at the yearend was £435,799 (2023 - £433,578).
During the year under review, the company traded with M D Residential (London) Limited, a company in which the director has an interest. The balance due to the company at the yearend was £15,154 (2023 - £17,522).
The company has made a loan to M D Transport & Haulage Limited, a company in which the director has an interest. The balance due from the company at the yearend was £76,068 (2023 - £69,768).
The company has taken a loan from M D Scaffolding Limited, a company in which the director has an interest. The balance due to the company at the yearend was £200,000 (2023 - £150,000).
The company has made a loan to Service Tulis SRL, a company in which the director has an interest. The balance due to the company at the year end was £6,974,752 (2023 - £7,533,790).
MD HOLDINGS (LONDON) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 41 -
27
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
761,245
2,689,093
Adjustments for:
Taxation charged
370,119
665,063
Finance costs
236,629
234,646
Investment income
(15,450)
(12,456)
(Gain)/loss on disposal of tangible fixed assets
(22,201)
70,885
Amortisation and impairment of intangible assets
270
281
Depreciation and impairment of tangible fixed assets
991,165
988,421
Other gains and losses
1,388
(207,989)
Pension scheme non-cash movement
(101)
101
Movements in working capital:
Decrease/(increase) in stocks
536,872
(1,286,147)
(Increase)/decrease in debtors
(1,326,716)
2,323,889
(Decrease)/increase in creditors
(330,131)
2,766,138
Cash generated from operations
1,203,089
8,231,925
28
Analysis of changes in net debt - group
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
1,240,849
(141,687)
1,099,162
Bank overdrafts
(335)
335
1,240,514
(141,352)
1,099,162
Borrowings excluding overdrafts
(1,567,732)
199,373
(1,368,359)
Obligations under finance leases
(1,157,617)
353,874
(803,743)
(1,484,835)
411,895
(1,072,940)
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