REGISTERED NUMBER: 01422430 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2024

FOR

MARWOOD GROUP LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

11

Other Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Cash Flow Statement

15

Notes to the Cash Flow Statement

16

Notes to the Financial Statements

17

DIRECTORS:

A R Piggott

J R Gold

J A Martin

S A Martin

K S Rahman

SECRETARY:

A R Piggott

REGISTERED OFFICE:

72 Roding Road

London Industrial Park

London

E6 6JG

REGISTERED NUMBER:

01422430 (England and Wales)

AUDITORS:

Clemence Hoar Cummings

Chartered Accountants and Statutory Auditor

Riverside House

1-5 Como Street

Romford

Essex

RM7 7DN

SOLICITORS:

Mullis & Peake

8-10 Eastern Road

Romford

Essex

RM1 3PJ

The directors present their strategic report for the year ended 31st December 2024.

The Marwood Group Limited provides specialist non-mechanical plant hire and sales mainly to the UK construction and civil engineering industries and has maintained market share in this competitive sector.

REVIEW OF BUSINESS

The construction industry remains cyclical and influenced by macroeconomic conditions. The non-mechanical plant hire market has also faced increased competitive pressure, with price sensitivity heightened by a slowdown in general construction and the continued impact of delayed projects and a downturn in some capital-intensive projects.

The Company remains agile, focusing on cost control, efficient asset utilisation, and diversification across sectors to mitigate the cyclical nature of the industry.

The Company has maintained its strategic focus on increasing stockholding of environmentally harvested products sourced from across the globe.

This diversity of clients provides a buffer against sector-specific downturns and supports a consistent flow of business.

Financial Health

The Company's financial health remains exceptionally strong, with minimal reliance on external borrowing. The gearing ratio on the balance sheet date was 0% (2023: 0%), reflecting our continued conservative approach.

PRINCIPAL RISKS AND UNCERTAINTIES

Governance and Risk Management

The Board of Directors continues to oversee the Company's governance framework and risk management procedures, ensuring they remain robust in light of evolving market challenges. This includes active monitoring of operational efficiency, supplier reliability, customer demand, and regulatory compliance.

Credit Risk Management

Credit risk remains a priority, particularly given the financial strain experienced by some construction sector clients. We have maintained strict onboarding procedures, requiring comprehensive credit checks and placing regular checks on existing customers.

Liquidity Risk

Thanks to the Company's strong cash reserves, zero gearing, and disciplined cost management, liquidity risk remains low. This financial resilience enables us to respond quickly to market changes and invest selectively in opportunities that align with our strategic priorities

STRATEGIC FRAMEWORK

The long-term strategic goals of the company are based on five key areas as follows:

Operational

Maintain market share and growth across all depots and divisions

Cost control through investment in efficient systems

Utilising IT and the new ways of remote working

Hold large stocks of all current hire lines

Maintain good relationships with suppliers to enable immediate response to new demands

Customer

Maintaining and nurturing close beneficial relationships with new and existing customers

Achievement of excellent customer satisfaction and retention

Respond to customer feed back

Innovation

Continually developing new and existing products to meet changing and new needs of customers

Responding to changing market and regulatory conditions

Design and build product suitable for the hire industry

Collaborate with partners and suppliers to produce better products

People

Attract develop and retain motivated, skilled and talented people

Encourage management team to identify and take advantage of opportunities and deal with threats effectively

Invest in training and staff development

Provide staff with the opportunity to grow within the Company

Regulatory and Governance

Promote regulatory and governance excellence

FINANCIAL AND OPERATING REVIEW

2024

2023

Change

% Change

£

£

£

Profit and Loss

Turnover

31,029

33,478

(2,449)

(7.32)

Cost of Sales

10,930

12,048

1,118

9.28

Gross Profit

20,099

21,430

(1,331)

(6.21)

Gross Profit %

64.77%

64.01%

0.76.%

1.19

EBITDA

6,113

9,869

(3,756)

(38.06)

EBITDA %

19.70%

29.48%

(9.78%)

(33.17)

Balance Sheet

Shareholders Funds

55,435

51,198

4,237

8.28

Trade Debtors Days

66.86

69.10

2.24

3.24

Trade Creditors Days

28.06

23.08

(4.98)

(21.60)

CONCLUSION

Despite 2024's more challenging market environment, the Company has sustained its operational momentum and maintained financial strength. The relocation to a larger London depot has expanded our operational reach, while our continued investment in sustainable products strengthens our competitive position. With a clear strategy, prudent financial management, and a diversified customer portfolio, the Company remains well-placed to navigate the current market cycle and capitalise on opportunities as conditions improve.

ON BEHALF OF THE BOARD:

A R Piggott - Secretary

20th August 2025

The directors present their report with the financial statements of the company for the year ended 31st December 2024.

DIVIDENDS

No dividends will be distributed for the year ended 31st December 2024.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st January 2024 to the date of this report.

A R Piggott

J R Gold

J A Martin

S A Martin

K S Rahman

Other changes in directors holding office are as follows:

J F Hannon - resigned 30th September 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

The directors confirm that they have taken steps to ensure all information relevant to the audit of these accounts has been made available to the auditors prior to the date of approval of these accounts by the board.

AUDITORS

The auditors, Clemence Hoar Cummings, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A R Piggott - Secretary

20th August 2025

Opinion

We have audited the financial statements of Marwood Group Limited (the 'company') for the year ended 31st December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31st December 2024 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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, or returns adequate for our audit have not been received from branches not visited by us; or

-	the 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 Statement of Directors' Responsibilities set out on page five, 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 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 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 company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We have designed our work to ensure that laws and regulations have been adhered to, and the transactions undertaken by the company are properly reflected in the financial statements. We have obtained a detailed understanding of the Company's internal control systems and we have used the knowledge gained to identify any areas of risk of mis-statement or fraud. We have then designed our audit tests in each area to identify whether in respect of the transactions we have selected for testing the relevant controls have operated as expected.

We plan our work specifically to identify any areas where there is a susceptibility to misstatement or fraud such as understatement of income and then design tests to mitigate this risk. Our work includes a review of the contractual terms the sales management systems to reconcile stock movement to recognition of income in the financial statements. Attendance of stock takes throughout the year at different depots to confirm procedures in place are being consistently across the nationwide depots.

We have evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

We have concluded on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We have then designed our audit tests in each area to identify whether in respect of the transactions we have selected for testing the relevant controls have operated as expected.

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.

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/auditors responsibilities. This description forms part of our Report of the Auditors.

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

David Belbin BSc FCA DChA (Senior Statutory Auditor)

for and on behalf of Clemence Hoar Cummings

Chartered Accountants and Statutory Auditor

Riverside House

1-5 Como Street

Romford

Essex

RM7 7DN

20th August 2025

REVENUE

31,029,001

33,477,665

Cost of sales

10,930,083

12,047,652

GROSS PROFIT

20,098,918

21,430,013

Administrative expenses

15,438,327

12,587,665

4,660,591

8,842,348

Other operating income

261,000

259,000

OPERATING PROFIT

5

4,921,591

9,101,348

Interest receivable and similar income

1,031,674

1,337,818

PROFIT BEFORE TAXATION

5,953,265

10,439,166

Tax on profit

6

1,716,046

2,482,074

PROFIT FOR THE FINANCIAL YEAR

4,237,219

7,957,092

PROFIT FOR THE YEAR

4,237,219

7,957,092

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

4,237,219

7,957,092

FIXED ASSETS

Intangible assets

7

-

-

Property, plant and equipment

8

21,275,400

20,935,321

21,275,400

20,935,321

CURRENT ASSETS

Inventories

9

7,244,089

7,515,410

Debtors

10

6,102,687

9,432,465

Cash at bank and in hand

27,828,346

19,026,629

41,175,122

35,974,504

CREDITORS

Amounts falling due within one year

11

6,417,968

5,315,610

NET CURRENT ASSETS

34,757,154

30,658,894

TOTAL ASSETS LESS CURRENT LIABILITIES

56,032,554

51,594,215

PROVISIONS FOR LIABILITIES

13

597,330

396,210

NET ASSETS

55,435,224

51,198,005

CAPITAL AND RESERVES

Called up share capital

14

100

100

Retained earnings

15

55,435,124

51,197,905

SHAREHOLDERS' FUNDS

55,435,224

51,198,005

The financial statements were approved by the Board of Directors and authorised for issue on 20th August 2025 and were signed on its behalf by:

K S Rahman - Director

J R Gold - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st January 2023

100

43,240,813

43,240,913

Changes in equity

Total comprehensive income

-

7,957,092

7,957,092

Balance at 31st December 2023

100

51,197,905

51,198,005

Changes in equity

Total comprehensive income

-

4,237,219

4,237,219

Balance at 31st December 2024

100

55,435,124

55,435,224

Cash flows from operating activities

Cash generated from operations

1

11,101,591

3,382,721

Tax paid

(1,799,778

)

(1,930,959

)

Net cash from operating activities

9,301,813

1,451,762

Cash flows from investing activities

Purchase of tangible fixed assets

(1,651,118

)

(18,680,081

)

Sale of tangible fixed assets

119,348

277,497

Interest received

1,031,674

1,337,818

Net cash from investing activities

(500,096

)

(17,064,766

)

Increase/(decrease) in cash and cash equivalents

8,801,717

(15,613,004

)

Cash and cash equivalents at beginning of year

2

19,026,629

34,639,633

Cash and cash equivalents at end of year

2

27,828,346

19,026,629

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit before taxation

5,953,265

10,439,166

Depreciation charges

1,162,445

816,233

Loss/(profit) on disposal of fixed assets

29,246

(48,098

)

Finance income

(1,031,674

)

(1,337,818

)

6,113,282

9,869,483

Decrease/(increase) in inventories

271,321

(847,394

)

Decrease/(increase) in trade and other debtors

3,329,778

(2,631,322

)

Increase/(decrease) in trade and other creditors

1,387,210

(3,008,046

)

Cash generated from operations

11,101,591

3,382,721

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

27,828,346

19,026,629

Year ended 31st December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

19,026,629

34,639,633

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

19,026,629

8,801,717

27,828,346

19,026,629

8,801,717

27,828,346

Total

19,026,629

8,801,717

27,828,346

1.	STATUTORY INFORMATION

Marwood Group Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover represents the net invoiced sale of goods sold. Plant on hire is recognised on a straight - line basis over the period the equipment is on hire less any returns and rebates.

Goodwill

Goodwill relates to the acquisition cost of Railtec Ltd and Europalite Ltd (£70,000 & £3,500 respectively). These have been fully amortised over their estimated useful life.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

10% on reducing balance and 2% on cost

Short leasehold

-

10% on reducing balance

Plant and machinery

-

25% on reducing balance, 10% on cost and 4% on cost

Fixtures and fittings

-

25% on reducing balance and 10% on reducing balance

Motor vehicles

-

25% on reducing balance

Included in fixed assets are items of plant that are available for both hire and sale to customers. As it is not possible to identify the use of such items at acquisition the company employs a policy of including individually identifiable items as fixed assets however on disposal to customers in the normal course of business the surplus or deficit is shown in the trading account.

Stocks

Sales stock are valued at lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

As the majority of bulk stock items purchased are available for both hire and sale it is not always possible to identify if they should be treated as stock or fixed assets. The company therefore employs a policy of treating individually identifiable items as fixed assets and bulk items as stock. The items treated as stock are written down to reflect their value as used items and introduce an element of cost for the use of items when hired to customer's.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme.

The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge in the profit and loss account represents contributions payable by the Company to the fund.

3.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

7,843,839

6,801,685

Social security costs

918,700

722,460

Other pension costs

656,910

598,386

9,419,449

8,122,531

The average number of employees during the year was as follows:

2024

2023

Directors

6

6

Employees

190

181

196

187

4.	DIRECTORS' EMOLUMENTS

2024

2023

£

£

Directors' remuneration

500,399

496,136

Directors' pension contributions to money purchase schemes

212,724

166,753

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

Information regarding the highest paid director is as follows:

2024

2023

£

£

Emoluments etc

128,369

116,873

Pension contributions to money purchase schemes

59,920

49,920

5.	OPERATING PROFIT

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

2024

2023

£

£

Hire of plant and machinery

1,950

2,340

Depreciation - owned assets

1,162,445

816,236

Loss/(profit) on disposal of fixed assets

29,246

(48,098

)

Auditors remuneration

36,305

25,125

Foreign exchange differences

1,527

2,884

During the year £2,200 was charged as audit fees to the Marwood Group Pension Fund.

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

1,514,926

2,391,447

Deferred taxation

201,120

90,627

Tax on profit

1,716,046

2,482,074

UK corporation tax has been charged at 25% .

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024

2023

£

£

Profit before tax

5,953,265

10,439,166

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.520%)

1,488,316

2,455,292

Effects of:

Expenses not deductible for tax purposes

22,120

720

Depreciation in excess of capital allowances

52,170

8,784

Itemised plant adjustment

(47,680

)

(73,349

)

Deferred tax movement

201,120

90,627

Total tax charge

1,716,046

2,482,074