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MOLSON GROUP LIMITED




ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024


































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MOLSON GROUP LIMITED

 
COMPANY INFORMATION


DIRECTORS
W Caplan 
P Oldham 
R Powell 
J Powles 
M Tucker 




COMPANY SECRETARY
A Marsh



REGISTERED NUMBER
06378350



REGISTERED OFFICE
Unit 4
Smoke Lane Industrial Est.

Avonmouth

Bristol

BS11 0YA




INDEPENDENT AUDITORS
Bishop Fleming Bath Limited
Chartered Accountants & Statutory Auditors

10 Temple Back

Bristol

BS1 6FL




BANKERS
HSBC
111 Victoria Street

Bristol

BS1 6EN






MOLSON GROUP LIMITED


CONTENTS



Page
Group strategic report
 
1 - 3
Directors' report
 
4 - 6
Directors' responsibilities statement
 
7
Independent auditors' report
 
8 - 11
Consolidated statement of comprehensive income
 
12
Consolidated statement of financial position
 
13
Company statement of financial position
 
14
Consolidated statement of changes in equity
 
15
Company statement of changes in equity
 
16
Consolidated statement of cash flows
 
17 - 18
Consolidated analysis of net debt
 
18
Notes to the financial statements
 
19 - 43



MOLSON GROUP LIMITED

 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

BUSINESS REVIEW
 
The directors consider that the group has performed to expectations in the 2024 financial year given the very difficult market and economic conditions that were faced.  In the UK the prolonged period of elevated interest rates coupled with uncertainty over the timing of any cuts in those rates and the absence of positive economic news throughout the year stifled demand, especially amongst housebuilders. Volumes in our core excavator market declined 50% year on year, although we were able to increase our market share. The turnover of our UK business fell year on year by £31.9m to £221.4m.
In the US we completed the acquisition of the Terex Powerscreen dealer for Texas, Louisiana, Oklahoma and Arkansas in April 2024 and we now service 13 states in the US with an addressable market for our products of £15.8bn. Activity levels remained strong in the US throughout the year. However, the prolonged period of elevated interest rates coupled with uncertainty over the timing of any cuts in rates, and the political turmoil resulting from the Presidential election, led many customers to extend rental periods and defer equipment purchases which hindered the growth in our turnover. Our US turnover grew by £26.6m to £111.3m.
Despite keen price competition in the UK, the group improved overall gross margin to 16.9% (2023: 15.6%) but as a result of market conditions and our continued investment in staff, brands and technology the group recorded an operating profit for the year of £1.9m (2023: £15.9m). 
At the year end, the group had net assets of £16.3m (2023: £27.8m). During the current financial year there are clear signs of improvement in the UK market for our products and services but those improvements, and the general macroeconomic outlook in the UK, still require a period of stability to take root.  Consequently, trading remains challenging but our funders and bankers, our shareholders and our manufacturer partners remain supportive of the group and our strategy. In addition, we have an energised and motivated team that continues to deliver exceptional service for our customers.  As such, the directors believe the company's position to be satisfactory.



Page 1


MOLSON GROUP LIMITED


GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024

PRINCIPAL RISKS AND UNCERTAINTIES
 
The directors have reviewed and agreed policies for managing the financial risks, and these are summarised below:
Market Risk
As with most businesses, market risk encompasses three types of risk, being price risk, interest rate risk and currency risk:
- Price risk
The group continues to compete effectively by continually monitoring its product range and responding to activities in the market. Since the COVID pandemic, the group has seen significant impacts to pricing caused by factors external to its market.  Immediately following the COVID pandemic, supply chain issues and the Ukraine war resulted in significant increases in the cost of raw materials that drove up the price of steel and latterly weak economic growth has caused the market to reduce and drive greater price competition.  In each case, the group has worked closely with its manufacturer partners to ensure the key products the group sells remain competitive and the group has been able to grow market share in these key product lines.  The impact of the US government’s new approach to tariffs has yet to be felt but the group remains confident that it again will be able to navigate any market disruption through close collaboration with our partners.
- Interest rate risk
Group bank borrowings incur interest at market rates. The company mitigates its exposures through the ongoing monitoring of the rates being applied.  Additionally, demand for the group’s products is impacted by interest rates because customers finance a significant proportion of the product that they purchase from us and, as a result, interest costs are a significant component of a customer’s total cost of ownership.  In order to mitigate the impact of interest rates on our business, we adopt a variety of strategies including in depth customer engagement to understand customer perception and plans, analysis of data to identify trends and close cooperation with our manufacturer partners to adjust pricing and order intake.
- Currency risk
The group makes a number of purchases and sales in currencies other than sterling. The group maintains foreign currency bank accounts and through close monitoring of exchange rates aims to convert funds to sterling when rates are appropriate. The group utilises forward exchange current contracts to hedge its short-term exposure. The group has financed its US acquisitions with debt denominated in US dollars.
Credit risk
Credit risk is tightly controlled as machines are not usually released to the customer until paid for and most are financed by an external funder, net of any deposit paid by the customer. Customer credit risk is addressed through a mixture of credit worthiness checks and a proactive approach to cash collection.
Liquidity risk
The group ensures sufficient liquidity is available to meet foreseeable needs through regular cash flow forecasting and negotiation of appropriate financing arrangements.

Page 2


MOLSON GROUP LIMITED


GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024

FINANCIAL KEY PERFORMANCE INDICATORS
 
The company uses a number of key performance indicators to monitor its performance:

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DIRECTORS' STATEMENT OF COMPLIANCE WITH DUTY TO PROMOTE THE SUCCESS OF THE GROUP
 
The board of directors of the Group consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole and having regard (amongst other matters) to factors (a) to (f) S172 Companies Act 2006, in the decisions taken during the year ended 30 September 2024. Specifically, the Board ensure in all decisions taken that:
 
Business is conducted morally and ethically, in line with Molson's Code of Conduct
Short-term gains do not have an adverse consequence on Molson's long-term strategy, success and benefits
Employee welfare, training and interests are taken care of
Customer and supplier relationships are strong, mutually beneficial and comply with Molson's Policies (such as anti-bribery and corruption, anti-slavery and human trafficking and corporate social responsibility)
Any community and environmental impacts as a result of Molson's operations are considered
 
During the financial year, Molson:
Worked closely with its manufacturer partners, other suppliers and customers to meet demand for product
Continued the investment in its IT platform and infrastructure and continued the roll out of storeCMD (an e-commerce platform) and fleetCMD (a fleet management website) to customers
Continued the roll out of the Molson Academy. The Academy identifies the training and development needs of all staff across all departments and puts in place the relevant opportunities for staff to be successful in their role and career. During 2024 we delivered 6,372 hours of training.
 


This report was approved by the board and signed on its behalf.



J Powles
Director

Date: 31 March 2025

Page 3


MOLSON GROUP LIMITED

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

The directors present their report and the financial statements for the year ended 30 September 2024.

PRINCIPAL ACTIVITY

The principal activity of the company is that of a holding company.
The principal activity of the trading subsidiaries is the sale of new construction, aggregate processing and waste handling equipment supplied by a number of large international manufacturing companies, the purchase and sale of used equipment, and the sale of related parts and services.  During the year being reported on we have also launched fleetCMD, a digital platform that enables our customers to utilise data to manage their fleets more efficiently and effectively, and storeCMD, an e-commerce portal.

RESULTS AND DIVIDENDS

The loss for the year, after taxation and minority interests, amounted to £9,538,000 (2023: profit £3,569,000).

The Directors have declared and paid dividends of £150,000 (2023: £150,000) in the year. 

DIRECTORS

The directors who served during the year were:

W Caplan 
P Oldham 
R Powell 
J Powles 
M Tucker 

ENGAGEMENT WITH EMPLOYEES

The directors have engaged with employees across the business through a devolved system of management that encourages individual initiative and collaboration between all levels of the organisation to ensure employees feel empowered and valued. Molson’s success is built on great customer service and its employees are key to delivering that, so the interests of employees are always taken into account where relevant in the principal decisions taken by the company.
During this financial year, the Group has maintained its focus on the training and development of its staff and this year we added Bircham Newton and Middlesborough Colleges to our existing engineering apprenticeship partnership with Weston College. We have also continued with our support of English Premiership Rugby’s education and employability programme, HITZ, and a number of our graduates from that scheme have been awarded HITZ Ambassador status by Premiership Rugby in recognition of their ongoing contribution to the programme. Our Community Champions programme, which coordinates our charitable and community support activities, has gone from strength to strength this year with highlights including the Lighthouse “make it visible” mental health tour to all our depots, the “wear it pink” campaign we undertook with 2 of our partners, DSM Demolition Ltd and Strickland MFG UK Ltd, in support of Breast Cancer, and the 11th year participating in the MacMillan coffee morning.

Page 4


MOLSON GROUP LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

In May 2024 Molson held XPO24, a week long event at our flagship site at Dixon, California.  This event, built on our successful UK Open Days, brought together customers, manufacturers and staff from across the whole of our US operations to spend an extended period of time together, with our full range of products on display on one site. Molson also attended several conferences/trade shows and manufacturer events, including Hillhead and ScotPlant with selected customers. These events give our customers an opportunity to provide direct feedback to manufacturers which in turn drives product development to ensure the products we distribute meet the market demand. We continue to work closely with businesses across the sector on our industry leading fleetCMD portal, enabling customers to access the key information on their entire plant fleet in one place, allowing them to take action to optimise efficiency and reduce emissions.  Molson continues to grow the scale of its customer base, supporting and partnering with customers delivering strategic infrastructure projects for the UK and we were proud to receive two awards from Suez in the year, the first for our ESG work and the second as their overall Supplier of the Year. Molson continues to partner with progressive suppliers, allowing customers to access the most efficient machinery, including fully electric and hybrid alternatives, to support them in minimising carbon emissions.

GREENHOUSE GAS EMISSIONS, ENERGY CONSUMPTION AND ENERGY EFFICIENCY ACTION

Molson Group recognises the need to act responsibly to reduce greenhouse gases and other emissions both directly in its own consumption and indirectly by influencing its manufacturer partners and customers to reduce their emissions. In 2024 Molson continued to roll out fleetCMD as a strategic tool for customers with plant and machinery, enabling customers to gain visibility over their entire fleet and its carbon emissions, helping inform their actions on the road to net zero. 
Directly, Molson Group has continued to switch its vehicle fleet to electric and hybrid power units, with 15 vehicles now in our fleet, and is rolling out electric vehicle charging points across its sites. Additionally, the Group utilises solar and biomass power at a number of sites and installed 97.99kWp of solar panel generating capacity at our Head Office during the year. 
Indirectly, Molson Group has been working with its manufacturer partners and the wider business community to promote the uptake of electrical powered equipment and Tier V engines as well as investigating the feasibility of hydrogen fuelled power units. In September 2024 we hosted a SevernNet community event on Decarbonising Mobile Heavy Equipment. Over 100 delegates from business and the community in and around the Avonmouth area attended an event  focussed on the technology and the drive towards alternative fuel use in construction equipment.
In 2022 we entered into a partnership with Treedom to plant trees in sustainable agroforestry projects around the world. As well as providing income opportunities for rural communities, the trees planted absorb CO2, emit oxygen and counteract soil erosion. Our commitment is to plant 2,000 trees by 2025 and to date we have planted 1,960.  We have also recently started working with PrintReleaf to offset paper usage by planting trees.. 
The Group’s UK energy consumption (in KwH) and the CO2 equivalent emissions in tonnes (CO2e):


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MATTERS COVERED IN THE STRATEGIC REPORT

The Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 requires a Strategic report to be prepared. Where mandatory disclosures in the Directors' report are considered by the directors to be of strategic importance, these have been included in the Strategic report rather than the Directors' report.

Page 5


MOLSON GROUP LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

POST BALANCE SHEET EVENTS

There are no post balance sheet events that require adjustment or disclosure in the financial statements. 

AUDITORS

The auditorsBishop Fleming Bath Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 






J Powles
Director

Date: 31 March 2025

Unit 4
Smoke Lane Industrial Est.
Avonmouth
Bristol
BS11 0YA

Page 6


MOLSON GROUP LIMITED

 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 7


MOLSON GROUP LIMITED

 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF MOLSON GROUP LIMITED
OPINION


We have audited the financial statements of Molson Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 September 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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's affairs as at 30 September 2024 and of the Group's loss 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


CONCLUSIONS RELATING TO GOING CONCERN


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


OTHER INFORMATION


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 8


MOLSON GROUP LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF MOLSON GROUP LIMITED (CONTINUED)

OPINION 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


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 Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept 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 DIRECTORS
 

As explained more fully in the Directors' responsibilities statement set out on page 7, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the 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 directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 9


MOLSON GROUP LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF MOLSON GROUP LIMITED (CONTINUED)

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 an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Identifying and assessing potential risks related to irregularities
The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

We have considered the nature of the industry and sector, control environment and business performance.
We have considered the results of our enquiries of management, including the Chief Operating Officer,
about their own identification and assessment of the risk of irregularities.
For any matters identified we have obtained and reviewed the Group’s documentation of their policies and
procedures relating to:
°Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
°Detecting and responding to the risk of fraud and whether they have knowledge of actual, suspected, or alleged fraud; and,
°The internal controls established to mitigate the risks of fraud or non-compliance with laws and regulations.
We have considered the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud, and incorrect recognition of revenue was identified as the greatest potential areas for fraud.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Group’s ability to operate or to avoid a material penalty. These included health and safety and employment legislation.

Audit response to risks identified

We identified recognition of revenue as a key audit matter related to the potential risk of fraud, our procedures to respond to risks identified included the following:

Performing various substantive tests of detail related to the recognition of revenue;
Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial
Page 10


MOLSON GROUP LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF MOLSON GROUP LIMITED (CONTINUED)

statements;
Enquiring of management concerning actual and potential litigation claims;
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement or fraud; and
In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.






Ria Burridge FCCA (Senior statutory auditor)
for and on behalf of
Bishop Fleming Bath Limited
Chartered Accountants
Statutory Auditors
10 Temple Back
Bristol
BS1 6FL

31 March 2025
Page 11


MOLSON GROUP LIMITED

 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2024
2023
Note
£000
£000

  

Turnover
 4 
332,657
337,961

Cost of sales
  
(276,383)
(285,106)

GROSS PROFIT
  
56,274
52,855

Administrative expenses
  
(54,384)
(36,933)

OPERATING PROFIT
 5 
1,890
15,922

Interest payable and similar expenses
 9 
(12,167)
(7,777)

(LOSS)/PROFIT BEFORE TAXATION
  
(10,277)
8,145

Tax on (loss)/profit
 10 
225
(4,162)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR
  
(10,052)
3,983

  

Currency translation differences
  
(1,242)
(476)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR
  
(11,294)
3,507

(LOSS)/PROFIT FOR THE YEAR ATTRIBUTABLE TO:
  

Non-controlling interests
  
(514)
414

Owners of the parent Company
  
(9,538)
3,569

  
(10,052)
3,983

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

The notes on pages 19 to 43 form part of these financial statements.

Page 12


MOLSON GROUP LIMITED
REGISTERED NUMBER:06378350

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024

2024
2023
Note
£000
£000

FIXED ASSETS
  

Intangible assets
 13 
36,164
20,621

Tangible assets
 14 
116,370
68,400

Investments
 15 
844
966

  
153,378
89,987

CURRENT ASSETS
  

Stocks
 16 
145,110
144,696

Debtors: amounts falling due within one year
 17 
72,972
62,033

Cash at bank and in hand
 18 
14,155
22,798

  
232,237
229,527

Creditors: amounts falling due within one year
 19 
(308,295)
(209,309)

NET CURRENT (LIABILITIES)/ASSETS
  
 
 
(76,058)
 
 
20,218

TOTAL ASSETS LESS CURRENT LIABILITIES
  
77,320
110,205

Creditors: amounts falling due after more than one year
 20 
(46,227)
(73,173)

Deferred taxation
 23 
(14,767)
(9,262)

NET ASSETS
  
16,326
27,770


CAPITAL AND RESERVES
  

Share premium account
 25 
905
905

Foreign exchange reserve
 25 
(684)
558

Merger reserve
 25 
1
1

Profit and loss account
 25 
12,924
22,612

Non-controlling interests
  
3,180
3,694

  
16,326
27,770


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 





J Powles
Director

Date: 31 March 2025

The notes on pages 19 to 43 form part of these financial statements.

Page 13


MOLSON GROUP LIMITED
REGISTERED NUMBER:06378350

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024

2024
2023
Note
£000
£000

FIXED ASSETS
  

Investments
 15 
22,248
22,248

  
22,248
22,248

CURRENT ASSETS
  

Debtors: amounts falling due within one year
 17 
111,272
81,962

  
111,272
81,962

Creditors: amounts falling due within one year
 19 
(129,643)
(47,672)

NET CURRENT (LIABILITIES)/ASSETS
  
 
 
(18,371)
 
 
34,290

TOTAL ASSETS LESS CURRENT LIABILITIES
  
3,877
56,538

  

Creditors: amounts falling due after more than one year
 20 
(3,375)
(47,980)

  

NET ASSETS
  
502
8,558


CAPITAL AND RESERVES
  

Share premium account
 25 
6,557
6,557

Merger reserve
 25 
100
100

Profit and loss account
 25 
(6,155)
1,901

  
502
8,558


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 





J Powles
Director

Date: 31 March 2025

The notes on pages 19 to 43 form part of these financial statements.

Page 14


MOLSON GROUP LIMITED



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024



Called up share capital
Share premium account
Foreign exchange reserve
Merger reserve
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity


£000
£000
£000
£000
£000
£000
£000
£000



At 1 October 2022
-
905
1,034
1
19,193
21,133
3,280
24,413





Profit for the year
-
-
-
-
3,569
3,569
414
3,983


Foreign exchange on consolidation
-
-
(476)
-
-
(476)
-
(476)


Dividends: Equity capital
-
-
-
-
(150)
(150)
-
(150)





At 1 October 2023
-
905
558
1
22,612
24,076
3,694
27,770





Loss for the year
-
-
-
-
(9,538)
(9,538)
(514)
(10,052)


Foreign exchange on consolidation
-
-
(1,242)
-
-
(1,242)
-
(1,242)


Dividends: Equity capital
-
-
-
-
(150)
(150)
-
(150)



AT 30 SEPTEMBER 2024
-
905
(684)
1
12,924
13,146
3,180
16,326



The notes on pages 19 to 43 form part of these financial statements.

Page 15


MOLSON GROUP LIMITED


COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024


Called up share capital
Share premium account
Merger reserve
Profit and loss account
Total equity

£000
£000
£000
£000
£000


At 1 October 2022
-
6,557
100
1,776
8,433


COMPREHENSIVE INCOME FOR THE YEAR

Profit for the year
-
-
-
275
275

Dividends: Equity capital
-
-
-
(150)
(150)



At 1 October 2023
-
6,557
100
1,901
8,558


COMPREHENSIVE INCOME FOR THE YEAR

Loss for the year
-
-
-
(7,906)
(7,906)

Dividends
-
-
-
(150)
(150)


AT 30 SEPTEMBER 2024
-
6,557
100
(6,155)
502


The notes on pages 19 to 43 form part of these financial statements.

Page 16


MOLSON GROUP LIMITED


CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2024
2023
£000
£000

CASH FLOWS FROM OPERATING ACTIVITIES

(Loss)/Profit for the year
(10,052)
3,983

ADJUSTMENTS FOR:

Amortisation of intangible assets
1,932
1,589

Depreciation of tangible assets
16,953
8,744

Loss on disposal of tangible assets
(241)
(372)

Interest charge
12,167
7,777

Taxation charge
(225)
4,162

Decrease in stocks
41,283
235

(Increase) in debtors
(5,327)
(1,038)

Increase in creditors
35,100
43,489

Corporation tax (paid)
(1,974)
(2,441)

Foreign exchange on consolidation
9,374
2,233

NET CASH GENERATED FROM OPERATING ACTIVITIES

98,990
68,361


CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of intangible fixed assets
(4,012)
(3,308)

Purchase of tangible fixed assets
(84,887)
(55,941)

Sale of tangible fixed assets
6,162
477

Purchase of fixed asset investments
-
(123)

HP interest paid
(242)
(194)

Acquisition of subsidiary
(23,544)
(13,253)

NET CASH FROM INVESTING ACTIVITIES

(106,523)
(72,342)
Page 17


MOLSON GROUP LIMITED


CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024


2024
2023

£000
£000



CASH FLOWS FROM FINANCING ACTIVITIES

New loans
57,560
53,693

Repayment of loans
(62,427)
(26,516)

(Repayment of)/new finance leases
4,736
169

Dividends paid
(150)
(150)

Interest paid
(11,758)
(7,583)

NET CASH USED IN FINANCING ACTIVITIES
(12,039)
19,613

(DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
(19,572)
15,632

Cash and cash equivalents at beginning of year
22,798
7,166

CASH AND CASH EQUIVALENTS AT THE END OF YEAR
3,226
22,798


CASH AND CASH EQUIVALENTS AT THE END OF YEAR COMPRISE:

Cash at bank and in hand
14,155
22,798

Bank overdrafts
(10,929)
-

3,226
22,798



CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 SEPTEMBER 2024







At 1 October 2023
Cash flows
Acquisition and disposal of subsidiaries
New finance leases
Other non-cash changes
At 30 September 2024
£000

£000

£000

£000

£000

£000

Cash at bank and in hand

22,798

(19,572)

-

-

-

3,226

Bank overdrafts

-

-

-

-

-

-

Debt due after 1 year

(71,814)

(57,560)

(19,462)

-

145,461

(3,375)

Debt due within 1 year

(35,988)

62,427

-

-

(145,461)

(119,022)

Finance leases

(2,754)

-

-

(4,736)

-

(7,490)



(87,758)
(14,705)
(19,462)
(4,736)
-
(126,661)

The notes on pages 19 to 43 form part of these financial statements.

Other non-cash changes relate to the change in the ageing profile of debt. 

Page 18


MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

1.


GENERAL INFORMATION

Molson Group Limited is a private limited company incorporated in the United Kingdom. The registered office is Unit 4, Smoke Lane Industrial Estate, Avonmouth, Bristol, BS11 0YA. 

2.ACCOUNTING POLICIES

 
2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

BASIS OF CONSOLIDATION

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 19


MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.ACCOUNTING POLICIES (continued)

 
2.3

GOING CONCERN

The group operated in difficult market conditions during the 2024 financial year.  In the UK the prolonged period of elevated interest rates coupled with uncertainty over the timing of any cuts in those rates and the absence of positive economic news throughout the year stifled demand, especially amongst housebuilders. Volumes in our core excavator market declined 50% year on year, albeit we increased our market share.  Activity levels remained strong in the US throughout the year. However, the prolonged period of elevated interest rates coupled with uncertainty over the timing of any cuts in rates, and the political turmoil resulting from the Presidential election, led many customers to extend rental periods and defer equipment purchases which hindered the growth in our turnover.  Overall, our turnover declined by £5.3m to £332.7m and we reported a net loss before tax of £10.3m (2023: profit £8.2m).
At the year end, the group had net assets of £16.3m (2023: £27.8m).  During the current financial year there are clear signs of improvement in the UK market for our products and services but those improvements, and the general macroeconomic outlook in the UK, still require a period of stability to take root.  Consequently, trading remains challenging but our funders and bankers, our shareholders and our manufacturer partners remain supportive of the group and our strategy.  In addition, we have an energised and motivated team that continues to deliver exceptional service for our customers.  The directors have carefully considered all of these factors in preparing sensitised forecasts for the next 12 months that demonstrate that the group is able to realise it assets and settle its liabilities as they fall due in the normal course of business for a period of at least 12 months from the date of approval of these financial statements.  Therefore these financial statements are prepared on a going concern basis.

 
2.4

FOREIGN CURRENCY TRANSLATION

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

Page 20


MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.ACCOUNTING POLICIES (continued)

 
2.5

REVENUE

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
 
Sale of goods
 
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
the Group has received payment for the goods in full; or, if agreed in writing that the goods can transfer to the purchaser before full payment has been received, it is probable that the Group will receive payment due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services
 
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.6

OPERATING LEASES: THE GROUP AS LESSEE

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

RESEARCH AND DEVELOPMENT

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 10 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.8

INTEREST INCOME

Interest income is recognised in profit or loss using the effective interest method.

Page 21


MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.ACCOUNTING POLICIES (continued)

 
2.9

FINANCE COSTS

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

BORROWING COSTS

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.11

PENSIONS

The Group participates in a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.

 
2.12

CURRENT AND DEFERRED TAXATION

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


Page 22


MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.ACCOUNTING POLICIES (continued)

 
2.13

INTANGIBLE ASSETS

GOODWILL

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life.

OTHER INTANGIBLE ASSETS

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Development expenditure
-
3-10 years
Goodwill
-
10 years
Trade agreements
-
6 years

 
2.14

TANGIBLE FIXED ASSETS

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold improvements
-
5-20% straight line
Plant and machinery
-
15-25% straight line
Motor vehicles
-
25-33% straight line
Fixtures and fittings
-
15-33% straight line
Computer equipment
-
20-67% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.15

VALUATION OF INVESTMENTS

Investments in subsidiaries are measured at cost less accumulated impairment. Where merger relief is applicable, the cost of the investment in a subsidiary undertaking is measured at the nominal value of the shares issued together with the fair value of any additional consideration paid. 

Page 23


MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.ACCOUNTING POLICIES (continued)

 
2.16

STOCKS

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.17

DEBTORS

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.18

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.19

CREDITORS

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.20

PROVISIONS FOR LIABILITIES

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

  
2.21

FINANCIAL INSTRUMENTS

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares. 

 
2.22

DIVIDENDS

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable.

Page 24


MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

3.



JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those 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.
The critical judgements made by management that have a significant effect on the amounts recognised in the financial statements are described below.
Critical judgements
Goodwill and other intangible assets
Positive goodwill acquired on each business combination is capitalised, classified as an asset on the statement of financial position and amortised on a straight line basis over its useful life.
The Group establishes an estimate of the useful life of goodwill and intangibles assets arising on business combination. This estimate is based on a variety of factors such as the expected use of the acquired business, the expected useful life of the cash generating units to which the asset is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar business.
 
Page 25


MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

3.JUDGEMENTS IN APPLYING ACCOUNTING POLICIES (CONTINUED)


Lease commitments
The Group determines whether leases entered into by the Group either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.
Depreciation rates
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Sources of estimation uncertainty
Impairment of fixed assets
The Group determines whether there are indicators of impairment of tangible and intangible assets, including goodwill. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.
Valuation of stock provision
The Group determines whether there are conditions that exist at the balance sheet date that indicates that the net realisable value of individual stock lines are less than the carrying value. Such indicators include post year end sales, auction prices, and market demand.

Page 26


MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

4.


TURNOVER

An analysis of turnover by class of business is as follows:


2024
2023
£000
£000

Sale of construction equipment
279,488
272,446

Servicing of construction equipment
20,685
41,201

Hire of equipment
31,343
22,939

Credit broking
1,141
1,375

332,657
337,961


2024
2023
£000
£000

United Kingdom
203,610
284,990

Rest of Europe
5,727
9,382

Rest of the World
123,320
43,589

332,657
337,961



5.


OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024
2023
£000
£000

Profit on disposal of fixed assets
(241)
(372)

Depreciation of tangible fixed assets
16,953
8,526

Amortisation of intangible fixed assets, including goodwill
1,932
1,589

Defined contribution pension cost
426
442

Exchange differences
(594)
(53)

Other operating lease rentals
3,575
525

Page 27


MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

6.


AUDITORS' REMUNERATION

During the year, the Group obtained the following services from the Company's auditors and their associates:


2024
2023
£000
£000

Fees payable to the Company's auditors and their associates for the audit of the consolidated and parent Company's financial statements
175
125

FEES PAYABLE TO THE GROUP'S AUDITOR AND ITS ASSOCIATES IN RESPECT OF:

Taxation compliance services
18
18


7.


EMPLOYEES

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000


Wages and salaries
31,571
24,625
2,512
2,357

Social security costs
3,061
2,074
326
189

Cost of defined contribution scheme
561
442
66
111

35,193
27,141
2,904
2,657


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Sales, Sales Support, and Servicing
368
295



Administrative
102
159

470
454

Page 28


MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

8.


DIRECTORS' REMUNERATION

2024
2023
£000
£000

Directors' emoluments
1,520
741

Group contributions to defined contribution pension schemes
56
24

1,576
765


The highest paid director received remuneration of £280,000 (2023: £280,000).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2023: £NIL).


9.


INTEREST PAYABLE AND SIMILAR EXPENSES

2024
2023
£000
£000


Bank interest payable
5,368
4,230

Other loan interest payable
6,557
3,353

Finance leases and hire purchase contracts
242
194

12,167
7,777


10.


TAXATION


2024
2023
£000
£000

CORPORATION TAX


Current tax on profits for the year
(225)
1,333

DEFERRED TAX


Origination and reversal of timing differences
-
2,829

TOTAL DEFERRED TAX
-
2,829


TAXATION ON (LOSS)/PROFIT ON ORDINARY ACTIVITIES
(225)
4,162
Page 29


MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
 
10.TAXATION (CONTINUED)


FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax assessed for the year is lower than (2023: higher than) the standard rate of corporation tax in the UK of25% (2023: 22%). The differences are explained below:

2024
2023
£000
£000


(Loss)/profit on ordinary activities before tax
(10,277)
8,145


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023: 22%)
(1,978)
1,796

EFFECTS OF:


Expenses not deductible for tax purposes
1,343
244

Fixed asset differences
144
(9)

Losses carried back
549
-

Adjustments in respect of prior periods
35
(165)

Book profit on non-taxable share issues
-
(14)

Deferred tax not recognised
163
156

Other differences leading to an increase (decrease) in the tax charge
(481)
2,154

TOTAL TAX CHARGE FOR THE YEAR
(225)
4,162


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There are no factors expected to materially affect future tax charges.


11.


DIVIDENDS

2024
2023
£000
£000


Dividends declared and paid
150
150

150
150


12.


PARENT COMPANY PROFIT FOR THE YEAR

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The loss after tax of the parent Company for the year was £5,720,000 (2023: profit £275,000).

Page 30


MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

13.


INTANGIBLE ASSETS

Group





Development expenditure
Trade agreements
Goodwill
Total

£000
£000
£000
£000



COST


At 1 October 2023
7,033
1,910
17,133
26,076


Additions
3,677
-
335
4,012


On acquisition of subsidiaries
-
-
15,469
15,469


Foreign exchange movement
(65)
-
(1,948)
(2,013)



At 30 September 2024

10,645
1,910
30,989
43,544



AMORTISATION


At 1 October 2023
1,609
1,416
2,430
5,455


Charge for the year on owned assets
98
197
1,637
1,932


Foreign exchange movement
-
-
(7)
(7)



At 30 September 2024

1,707
1,613
4,060
7,380



NET BOOK VALUE



At 30 September 2024
8,938
297
26,929
36,164



At 30 September 2023
5,424
494
14,703
20,621

See note 26 for details of goodwill arising on the acquisition of subsidiaries in the year. In addition to this, in the year the directors identified an impairment to the net assets on acquisition of a subsidiary in the prior period and have therefore capitalised additional goodwill related to this acquisition. The amounts are immaterial to the group financial statements and therefore the Directors have not restated comparative figures. 



Page 31


MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

14.


TANGIBLE FIXED ASSETS

Group






Long-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£000
£000
£000
£000
£000



COST OR VALUATION


At 1 October 2023
6,354
62,390
9,672
1,504
79,920


Additions
2,254
77,143
5,131
359
84,887


Acquisition of subsidiary
69
27,449
2,503
150
30,171


Disposals
(299)
(4,788)
(1,681)
(142)
(6,910)


Transfers between classes
-
(41,541)
-
-
(41,541)


Exchange adjustments
(26)
(10,030)
(710)
(42)
(10,808)



At 30 September 2024

8,352
110,623
14,915
1,829
135,719



DEPRECIATION


At 1 October 2023
1,936
4,239
4,358
987
11,520


Charge for the year on owned assets
726
11,987
3,815
425
16,953


Disposals
-
(3)
(948)
(38)
(989)


Transfers between classes
-
(5,937)
-
-
(5,937)


Exchange adjustments
(5)
(1,761)
(411)
(21)
(2,198)



At 30 September 2024

2,657
8,525
6,814
1,353
19,349



NET BOOK VALUE



At 30 September 2024
5,695
102,098
8,101
476
116,370



At 30 September 2023
4,418
58,151
5,314
517
68,400

Included within the net book value above is £10,735,223 (2023: £3,658,000) relating to assets held under hire purchase agreements. The depreciation charged to the financial statements in the year in respect of such assets amounted to £2,305,481 (2023: £930,000).
Transfers between classes reflects transfers to stock of assets that were held for the purpose of hire which are then subsequently sold, and therefore transferred to stock before being recognised as a sale. 

Page 32


MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

15.


FIXED ASSET INVESTMENTS

Group





Investments in associates

£000



COST


At 1 October 2023
966


Foreign exchange movement
(122)



At 30 September 2024
844






NET BOOK VALUE



At 30 September 2024
844



At 30 September 2023
966

Company





Investments in subsidiary companies
Investments in associates
Total

£000
£000
£000



COST


At 1 October 2023
21,405
843
22,248



At 30 September 2024
21,405
843
22,248






NET BOOK VALUE



At 30 September 2024
21,405
843
22,248



At 30 September 2023
21,405
843
22,248

Page 33


MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

SUBSIDIARY UNDERTAKINGS


The following were subsidiary undertakings of the Company:

Name

Principal activity

Class of shares

Holding

Molson Equipment Services Limited
Sale and repair of construction equipment
Ordinary
100%
Molson Equipment Australia Pty Limited
Dormant
Ordinary
100%
Molson Blue Limited*
Dormant
Ordinary
100%
Molson Compact Limited
Dormant
Ordinary
100%
Hydratech Limited
Dormant
Ordinary
100%
Total Attachment Company Limited*
Dormant
Ordinary
100%
A&Y Equipment Group Limited
Dormant
Ordinary
100%
Molson Compact Equipment Limited**
Dormant
Ordinary
100%
Molson Green Limited**
Dormant
Ordinary
100%
Capital Equipment Finance Limited
Credit broking
Ordinary
100%
Molson Scotland Limited
Sale of construction equipment
Ordinary
100%
Finlay Plant (UK) Limited
Dormant
Ordinary
100%
Finlay Hire Limited***
Dormant
Ordinary
100%
Finlay Plant Sales Limited***
Dormant
Ordinary
100%
Finlay Plant (Northern) Limited
Dormant
Ordinary
100%
Finlay Plant (Southern) Limited***
Dormant
Ordinary
100%
Aggregate Processing Solutions Limited***
Sale and hire of mining and quarrying equipment
Ordinary
100%
Environmental Processing Solutions Limited***
Dormant
Ordinary
100%
Finlay Washing Plant Limited***
Dormant
Ordinary
100%
Finlay Plant S.W. Limited
Dormant
Ordinary
100%
Finlay Scotland Limited
Dormant
Ordinary
100%
US Equipment Group S&B Division Inc.
Holding company
Ordinary
100%
Powerscreen of Northern California, Inc.****
Sale and hire of construction equipment
Ordinary
85%
Powerscreen of Washington, Inc.****
Sale and hire of construction equipment
Ordinary
100%
Powerscreen of Texas, Inc. ****
Sale and hire of construction equipment
Ordinary
100%











* Subsidiaries held indirectly through Molson Equipment Services Limited
** Subsidiaries held indirectly through A&Y Equipment Group Limited
*** Subsidiaries held indirectly through Finlay Plant (UK) Limited
**** Subsidiaries held indirectly through US Equipment Group S&B Division Inc. 
Page 34


MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

16.


STOCKS

Group
Group
2024
2023
£000
£000

Parts stock
26,062
21,120

Work in progress
2,713
1,938

Finished goods and goods for resale
116,335
121,638

145,110
144,696



17.


DEBTORS

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000


Trade debtors
48,804
45,516
2
95

Amounts owed by group undertakings
-
-
108,918
78,937

Other debtors
4,884
2,224
1,497
2,138

Prepayments and accrued income
19,284
14,293
851
788

Deferred taxation
-
-
4
4

72,972
62,033
111,272
81,962


Amounts owed by group undertakings are unsecured and repayable on demand. 


18.


CASH AND CASH EQUIVALENTS

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Cash at bank and in hand
14,155
22,798
-
-

Bank overdrafts
(10,929)
-
(8,264)
(298)

3,226
22,798
(8,264)
(298)


Page 35


MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

19.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Bank overdrafts
10,929
-
8,264
298

Bank loans
71,322
16,488
71,322
16,488

Other loans
9,408
19,500
2,250
1,000

Trade creditors
186,529
139,517
197
46

Amounts owed to group undertakings
-
-
45,717
28,785

Corporation tax
-
542
11
-

Other taxation and social security
4,308
5,221
169
276

Obligations under finance lease and hire purchase contracts
2,930
1,395
606
-

Other creditors
409
5,825
7
19

Accruals and deferred income
22,460
20,821
1,100
760

308,295
209,309
129,643
47,672


Amounts owed to group undertakings are unsecured and repayable on demand. 


The following liabilities were secured:
Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Bank loans
71,322
16,488
-
16,488

Obligations under finance lease and hire purchase contracts
2,930
1,395
-
-

Other loans
7,158
18,500
-
-

81,410
36,383
-
16,488

Details of security provided:

Bank loans are secured by way of a fixed and floating charge over the Group's assets, all in favour of HSBC UK Bank plc as security agent. 
Obligations under finance lease and hire purchase contracts are secured on the assets to which they relate. 
Other loans includes loans used to finance the purchase of certain stock and plant and machinery and are secured on the assets to which they relate. 

Page 36


MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

20.


CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Bank loans
-
43,105
-
43,105

Other loans
41,667
28,709
3,375
4,875

Net obligations under finance leases and hire purchase contracts
4,560
1,359
-
-

46,227
73,173
3,375
47,980



The following liabilities were secured:
Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000


Bank loans
-
43,105
-
43,105

Obligations under finance lease and hire purchase contracts
4,560
1,359
-
-

Other loans
38,292
23,834
-
-

42,852
68,298
-
43,105

Details of security provided:

Bank loans are secured by way of a fixed and floating charge over the Group's assets, all in favour of HSBC UK Bank plc as security agent. 
Obligations under finance lease and hire purchase contracts are secured on the assets to which they relate. 
Other loans includes loans used to finance the purchase of certain stock and plant and machinery and are secured on the assets to which they relate. 

Other loans include loan notes due from BGF which are being recognised at transaction value of £5,625,000 (£2,250,000 due within one year, with £3,375,000 due in more than one year). Interest is being charged on this balance at 8%. The loan notes are due to be fully repaid by 31 March 2028. There is a premium charge on redemption of £261,336 on one of the loan notes.

Page 37


MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

21.


LOANS


Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans
71,322
16,488
71,322
16,488

Other loans
9,408
19,500
2,250
1,000

AMOUNTS FALLING DUE 1-2 YEARS

Bank loans
-
11,767
-
11,767

Other loans
8,658
25,334
1,500
1,500

AMOUNTS FALLING DUE 2-5 YEARS

Bank loans
-
31,338
-
31,338

Other loans
33,009
3,375
1,875
3,375


122,397
107,802
76,947
65,468



22.


HIRE PURCHASE AND FINANCE LEASES


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2024
2023
£000
£000

Within one year
2,930
1,395

Between 1-5 years
4,560
1,359

7,490
2,754


23.


DEFERRED TAXATION


Group



2024
2023


£000

£000






At beginning of year
(9,262)
(2,731)


Charged to profit or loss
(402)
(2,443)


Arising on business combinations
(5,103)
(4,088)



AT END OF YEAR
(14,767)
(9,262)

Page 38


MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
 
23.DEFERRED TAXATION (CONTINUED)

Company


2024
2023


£000

£000






At beginning of year
4
4



AT END OF YEAR
4
4

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Accelerated capital allowances
(14,767)
(9,386)
-
-

Tax losses carried forward
-
46
-
-

Short term timing differences
-
78
4
4

(14,767)
(9,262)
4
4

Page 39


MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

24.


SHARE CAPITAL

2024
2023
£
£
ALLOTTED, CALLED UP AND FULLY PAID



239,884 (2023: 239,884) Ordinary shares of £0.0001 each
24
24
81,415 (2023: 81,415) A Ordinary shares of £0.0001 each
8
8
72,037 (2023: 72,037) A1 Ordinary shares of £0.0001 each
7
7
4,065 (2023: 4,065) B Ordinary shares of £0.0001 each
-
-
1,683 (2023: 1,683) B1 Ordinary shares of £0.0001 each
-
-
2,306 (2023: 2,306) B2 Ordinary shares of £0.0001 each
-
-

39

39

Ordinary shares and A Ordinary shares have full voting, dividend and capital distribution rights.
A1 Ordinary shares have special voting rights and are entitles to receive priority dividends on the occurrence of certain events as detailed in the company's articles of association. 
B Ordinary shares, B1 Ordinary shares, and B2 Ordinary shares all have no voting or dividend rights, but are entitled to participate in a return of capital in accordance with the company's articles of association. 



25.


RESERVES

Share premium account

This includes any premiums received on issue of share capital. Any transaction costs associated with
the issuing of shares are deducted from share premium. 

Foreign exchange reserve

This includes cumulative foreign exchange gains and losses recognised on the translation of subsidiaries financial statements from their local currency into the presentation currency of the Group. 

Merger Reserve

This includes any differences between the nominal value of shares issued during a merger and the fair value of assets transferred. 

Profit and loss account

This includes all current and prior period retained profits and losses. 

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MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

26.
 

BUSINESS COMBINATIONS

The Group made multiple acquisitions in the year, details of the acquisitions is provided below.

ACQUISITION OF POWERSCREEN TEXAS, INC.

On 4 April 2024, Molson Group completed the acquisition of 100% of the ordinary share capital of Powerscreen Texas, Inc. The Group's share of identifiable assets acquired and liabilities assumed on the acquisition of Powerscreen of Texas, LLC are as follows

RECOGNISED AMOUNTS OF IDENTIFIABLE ASSETS ACQUIRED AND LIABILITIES ASSUMED

Book value
Fair value
£000
£000

FIXED ASSETS

Tangible
30,171
30,171

30,171
30,171

CURRENT ASSETS

Stocks
6,093
6,093

Debtors
3,947
3,947

Cash at bank and in hand
8,239
8,239

TOTAL ASSETS
48,450
48,450

CREDITORS

Due within one year
(1,730)
(1,730)

Other loans
(19,462)
(19,462)

Taxation
(394)
(394)

Deferred taxation
(5,103)
(5,103)

TOTAL IDENTIFIABLE NET ASSETS
21,761
21,761


Goodwill
15,469

TOTAL PURCHASE CONSIDERATION
37,230

CONSIDERATION

£000


Cash
30,826

Deferred consideration
5,447

Directly attributable costs
957

TOTAL PURCHASE CONSIDERATION
37,230

Page 41


MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

26.BUSINESS COMBINATIONS (CONTINUED)

CASH OUTFLOW ON ACQUISITION

£000


Purchase consideration settled in cash, as above
30,826

Directly attributable costs
957

31,783

Less: Cash and cash equivalents acquired
(8,239)

NET CASH OUTFLOW ON ACQUISITION
23,544

The results of Powerscreen Texas, Inc. since acquisition are as follows:

Current period since acquisition
£000

Turnover
25,384

Profit for the period since acquisition
2,201


27.


PENSION COMMITMENTS

The Group participates in a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £426,000 (2023: £442,000). At the year end there were outstanding contributions of £99,000 (2023: £89,000).


28.


COMMITMENTS UNDER OPERATING LEASES

At 30 September 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£000
£000

Not later than 1 year
2,099
1,566

Later than 1 year and not later than 5 years
5,210
3,221

Later than 5 years
2,931
724

10,240
5,511
Page 42


MOLSON GROUP LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

29.


RELATED PARTY TRANSACTIONS

All related party transactions are on normal commercial rates and normal commercial terms.
The Group has taken advantage of the exemption available under the requirements of Section 33 Related Party Disclosures paragraph 33.1A, in not providing details of any transactions which have been eliminated on consolidation.
Related party transactions and balances are as follows:


2024
2023
£000
£000

Sales to entities under common ownership
21,323
15,261
Purchases from entities under common ownership
3,250
13,715
Owed by entities under common ownership
14,111
16,512
Owed to entities under common ownership
253
118

Key management personnel remuneration totals £810,000 (2023: £741,000).


30.


CONTROLLING PARTY

There is no ultimate controlling party.  

 
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