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Registered number: 06000685









Medlock FRB Limited









Annual Report and Financial Statements

For the year ended 31 December 2024

 
Medlock FRB Limited
 
 
Company Information


Directors
C Drury 
M Peden 
J Harrison 
C Thornborrow-Jones (appointed 1 January 2024)
D McGuire (appointed 1 February 2024)
W Earl (appointed 14 April 2025)




Registered number
06000685



Registered office
Medlock FRB Limited
Greengate Street

Oldham

OL4 1DG




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

3 Stockport Exchange

Stockport

Cheshire

SK1 3GG




Solicitors
Gateley LLP
98 King Street

Manchester

M2 4WU





 
Medlock FRB Limited
 

Contents



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Statement of Comprehensive Income
 
9
Statement of Financial Position
 
10
Statement of Changes in Equity
 
11
Statement of Cash Flows
 
12
Analysis of Net Debt
 
13
Notes to the Financial Statements
 
14 - 28


 
Medlock FRB Limited
 
 
Strategic Report
For the year ended 31 December 2024

Introduction
 
The directors are pleased to present the Strategic Report for the year ended 31 December 2024.

Business review
 
The principal activity of the business continues to be that of a leading Specialist Fit Out Contractor operating within the Leisure and Hospitality Sector and we do not expect this to change.
We are pleased to deliver another strong set of results building upon the structural changes we implemented in 2023 and despite the continued challenging UK economic forecast and conditions. In this financial year turnover increased, gross profitability increased and both EBITDA and operating profit increased. Consequently, our strong balance sheet is testament to good governance.
Our key focus was to deliver our projects on-time, to budget, to the highest quality and safely, ultimately leading to our vision: to deliver the best projects by the best people and this will be further reinforced in 2025 with consistently strong project delivery and a high quality workload.
We remain committed to our values of being Honest, Committed, Friendly and Together across the business and in relation to our external stakeholders and the core method of operation to all three ISO standards, which we have held for a number of years, are the cornerstone of our service.
We continue to heavily invest in our people with a structured plan of role specific in house and external training. The Board remains unwaveringly committed to foster and cultivate a culture of Continuing Professional Development where Employees can achieve their maximum potential and enjoy a mutually beneficial and rewarding career, retention being a key part of our people strategy. 
The outlook for the next financial year is promising, but controlled growth remains the aim of the business achieved by partnering with key customers aligned with prudent profit realisation and accurate and timely cash management. Consequently, we continue to look to the future with optimism.
The Board of Directors wishes to extend their gratitude to everyone in the Company, employees, advisors and supply chain partners, without their professionalism we could not achieve our objectives.

Principal risks and uncertainties
 
Failure to deliver projects in line with customer’s expectations and required specifications, on time and on budget and to minimise the risk of increased costs and delay related damages. The risk is mitigated with continual assessment and development of key staff within our Pre-Construction, Project Delivery and Commercial teams and our Leadership team.
Supply Chain Partners fail to meet our operational and Commercial expectations and requirements in relation to capacity, competency, quality, financial stability, safety, environmental, social and ethical values. The Company has undertaken significant work to identify and understand who its key supply chain partners are and have reduced the number whilst initiating a core partnership. In addition to this we have introduced KPIs across all partnerships.
The Company has implemented policies and procedures that require appropriate credit checks on potential customers before projects are commenced, and concentration of credit risk is constantly under review.
In addition, the directors also consider that market risk is a key risk to the business.

Page 1

 
Medlock FRB Limited
 

Strategic Report (continued)
For the year ended 31 December 2024

Financial key performance indicators
 
The key financial performance indicators for the past three years are as follows:


2024
2023
2022




Turnover £'000
45,756
40,911
34,805
Gross profit £'000
4,301
3,771
2,654
Gross profit %
9%
9%
8%
EBITDA £'000
793
523
141
Operating profit £'000
738
468
80
Employee numbers
70
63
63
Turnover/employees £'000
654
649
552


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



C Drury
Director

Date: 11 September 2025

Page 2

 
Medlock FRB Limited
 
 
 
Directors' Report
For the year ended 31 December 2024

The directors present their report and the financial statements for the year ended 31 December 2024.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 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 for the Company's financial statements and then apply them consistently;

make judgments 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £710,877 (2023: £540,849).

Dividends of £Nil (2023: £Nil) were paid during the year. 
The directors do not recommend payment of a final dividend. 

Directors

The directors who served during the year were:

C Drury 
A Dunster (resigned 31 December 2024)
M Peden 
C Addy (resigned 21 June 2024)
N Corfield (resigned 28 February 2025)
J Harrison 
C Thornborrow-Jones (appointed 1 January 2024)
D McGuire (appointed 1 February 2024)
N Newton (appointed 1 April 2024, resigned 13 September 2024)

Future developments

Future developments of the Company have been discussed in the Strategic Report.

Page 3

 
Medlock FRB Limited
 
 
 
Directors' Report (continued)
For the year ended 31 December 2024

Research and development activities

The Company continues to develop new systems and processes which are aimed at improving quality and efficiency. 

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'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's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsHurst Accountants 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.
 





C Drury
Director

Date: 11 September 2025

Page 4

 
Medlock FRB Limited
 
 
 
Independent Auditors' Report to the Members of Medlock FRB Limited
 

Opinion


We have audited the financial statements of Medlock FRB Limited (the 'Company') for the year ended 31 December 2024, which comprise the statement of comprehensive income, the statement of financial position, the statement of cash flows, the 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 Company's affairs as at 31 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 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 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 5

 
Medlock FRB Limited
 
 
 
Independent Auditors' Report to the Members of Medlock FRB 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 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 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, 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 directors' responsibilities statement set out on page 3, 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 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.


Page 6

 
Medlock FRB Limited
 
 
 
Independent Auditors' Report to the Members of Medlock FRB 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 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:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
 
The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
The outcome of enquiries of management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud. 
Supporting documentation relating to the Company's policies and procedures for:
°Identifying, evaluating, and complying with laws and regulations
°Detecting and responding to the risks of fraud
The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, and Anti-bribery and Corruption.

Audit response to risks identified
Our procedures to respond to the risks identified included the following:

Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
Evaluation of management’s controls designed to prevent and detect irregularities.
Enquiring of management about any actual and potential litigation and claims.
Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.

 
Page 7

 
Medlock FRB Limited
 
 
 
Independent Auditors' Report to the Members of Medlock FRB Limited (continued)


We have also considered the risk of fraud through management override of controls by:
 
Testing the appropriateness of journal entries and other adjustments. We have used data analytics software to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error.
Challenging assumptions made by management in their significant accounting estimates, and 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.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them.  Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.


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.





Chris Stewardson (Senior Statutory Auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants
Statutory Auditors
3 Stockport Exchange
Stockport
Cheshire
SK1 3GG

11 September 2025
Page 8

 
Medlock FRB Limited
 
 
Statement of Comprehensive Income
For the year ended 31 December 2024

2024
2023
Note
£
£

  

Turnover
 4 
45,756,144
40,910,826

Cost of sales
  
(41,455,325)
(37,139,575)

Gross profit
  
4,300,819
3,771,251

Administrative expenses
  
(3,663,013)
(3,463,204)

Other operating income
 5 
100,000
160,000

Operating profit
 6 
737,806
468,047

Interest payable and similar expenses
 10 
(38,608)
(40,087)

Profit before tax
  
699,198
427,960

Tax on profit
 11 
11,679
112,889

Profit for the financial year
  
710,877
540,849

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 14 to 28 form part of these financial statements.

Page 9

 
Medlock FRB Limited
Registered number: 06000685

Statement of Financial Position
As at 31 December 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
972,501
979,941

Current assets
  

Debtors: amounts falling due within one year
 13 
9,358,242
7,751,609

Cash at bank and in hand
 14 
1,495,739
1,923,643

  
10,853,981
9,675,252

Creditors: amounts falling due within one year
 15 
(9,095,421)
(8,063,856)

Net current assets
  
 
 
1,758,560
 
 
1,611,396

Total assets less current liabilities
  
2,731,061
2,591,337

Creditors: amounts falling due after more than one year
 16 
(382,347)
(322,185)

Provisions for liabilities
  

Deferred tax
 19 
(24,716)
(23,578)

Net assets
  
2,323,998
2,245,574


Capital and reserves
  

Called up share capital 
 20 
22,225
22,225

Revaluation reserve
 21 
494,000
504,000

Other reserves
 21 
(2,597,453)
(1,965,000)

Profit and loss account
 21 
4,405,226
3,684,349

  
2,323,998
2,245,574


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




C Drury
Director

Date: 11 September 2025

The notes on pages 14 to 28 form part of these financial statements.

Page 10

 
Medlock FRB Limited
 

Statement of Changes in Equity
For the year ended 31 December 2024


Called up share capital
Revaluation reserve
Other reserves
Profit and loss account
Total equity

£
£
£
£
£

At 1 January 2024
22,225
504,000
(1,965,000)
3,684,349
2,245,574


Comprehensive income for the year

Profit for the year
-
-
-
710,877
710,877
Total comprehensive income for the year
-
-
-
710,877
710,877


Contributions by and distributions to owners

Transfer from revaluation reserve
-
-
-
10,000
10,000

Transfer to profit and loss account
-
(10,000)
-
-
(10,000)

Contribution to employee ownership trust
-
-
(632,453)
-
(632,453)


Total transactions with owners
-
(10,000)
(632,453)
10,000
(632,453)


At 31 December 2024
22,225
494,000
(2,597,453)
4,405,226
2,323,998



Statement of Changes in Equity
For the year ended 31 December 2023


Called up share capital
Revaluation reserve
Other reserves
Profit and loss account
Total equity

£
£
£
£
£

At 1 January 2023
22,225
514,000
(1,740,000)
3,133,500
1,929,725


Comprehensive income for the year

Profit for the year
-
-
-
540,849
540,849
Total comprehensive income for the year
-
-
-
540,849
540,849


Contributions by and distributions to owners

Transfer from revaluation reserve
-
-
-
10,000
10,000

Transfer to profit and loss account
-
(10,000)
-
-
(10,000)

Contribution to employee ownership trust
-
-
(225,000)
-
(225,000)


Total transactions with owners
-
(10,000)
(225,000)
10,000
(225,000)


At 31 December 2023
22,225
504,000
(1,965,000)
3,684,349
2,245,574


The notes on pages 14 to 28 form part of these financial statements.

Page 11

 
Medlock FRB Limited
 

Statement of Cash Flows
For the year ended 31 December 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
710,877
540,849

Adjustments for:

Depreciation of tangible assets
54,918
54,648

Interest paid
38,608
40,087

Taxation charge
(11,679)
(112,889)

(Increase) in debtors
(1,282,579)
(162,241)

(Increase) in amounts owed by related parties
(324,054)
(100,911)

Increase in creditors
1,051,981
725,155

Corporation tax received
103,952
755,077

Net cash generated from operating activities

342,024
1,739,775


Cash flows from investing activities

Purchase of tangible fixed assets
(47,478)
(52,081)

Net cash from investing activities

(47,478)
(52,081)

Cash flows from financing activities

Repayment of loans
(42,389)
(31,840)

Repayment of hire purchase contracts
(9,000)
(7,250)

Interest paid
(36,000)
(39,435)

HP interest paid
(2,608)
(652)

Contributions to employee ownership trust
(632,453)
(225,000)

Net cash used in financing activities
(722,450)
(304,177)

Net (decrease)/increase in cash and cash equivalents
(427,904)
1,383,517

Cash and cash equivalents at beginning of year
1,923,643
540,126

Cash and cash equivalents at the end of year
1,495,739
1,923,643


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,495,739
1,923,643


The notes on pages 14 to 28 form part of these financial statements.

Page 12

 
Medlock FRB Limited
 

Analysis of Net Debt
For the year ended 31 December 2024





At 1 January 2024
Cash flows
Other non-cash changes
At 31 December 2024
£

£

£

£

Cash at bank and in hand

1,923,643

(427,904)

-

1,495,739

Debt due after 1 year

(286,848)

-

(69,980)

(356,828)

Debt due within 1 year

(166,333)

42,389

69,980

(53,964)

Hire purchase contracts

(42,750)

9,000

-

(33,750)


1,427,712
(376,515)
-
1,051,197

The notes on pages 14 to 28 form part of these financial statements.

Page 13

 
Medlock FRB Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

1.


General information

Medlock FRB Limited is a private company limited by shares and incorporated in England and Wales. The address of the registered office and principal place of business is Greengate Street, Oldham, Lancashire, OL4 1DG. The company's registered number is 06000685. 
The nature of the Company's operations and its principal activity is that of construction and refurbishment contracts. 

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 management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company 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:

Construction contracts
Revenue from a contract to provide construction 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 company 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.

Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Revenue is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Full provision is made for losses on all contracts in the year in which they are first foreseen.
Amounts recoverable on contracts are included in current assets and represent revenue recognised in excess of payments on account.

 
2.3

Operating leases: the Company as lessee

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

Page 14

 
Medlock FRB Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

2.Accounting policies (continued)

 
2.4

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. 

 
2.5

Borrowing costs

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

 
2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Company in independently administered funds.

 
2.7

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 operates and generates 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; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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.


 
2.8

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.

Page 15

 
Medlock FRB Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

2.Accounting policies (continued)


2.8
Tangible fixed assets (continued)

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:

Freehold property
-
50 years
Fixtures, plant and equipment
-
5 - 10 years

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.

 
2.9

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the reporting date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.10

Debtors

Short-term debtors are measured at transaction price, less any impairment.

 
2.11

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.
In the 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 Company's cash management. 

 
2.12

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.

Page 16

 
Medlock FRB Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

2.Accounting policies (continued)

 
2.13

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.

 
2.14

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Page 17

 
Medlock FRB Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

2.Accounting policies (continued)


2.14
Financial instruments (continued)

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.15

Employee ownership trust

Investments in the Company's own shares which are held for the benefit of the beneficiaries of the Medlock FRB Employee Ownership Trust are shown as a deduction from shareholder's funds in a separate reserve.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Management discussed with the directors the development, selection and disclosure of the Company's critical accounting policies and estimates and the application of these policies and estimates. The key sources of estimation, uncertainty and critical accounting judgements in applying the company's policies are discussed below.
The Company's revenue recognition and margin recognition policies, which are set out in note 2.2, are central to how the Company values the work it has carried out in each financial year. These policies require forecasts to be made of the outcomes of long-term construction contracts. Amounts recoverable on long term contracts included in debtors totalled £7,503,308 
(2023: £5,523,484).


4.


Turnover

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


2024
2023
£
£

Contract fit out, refurbishment, build and manufactured joinery
45,756,144
40,910,826


All turnover arose within the United Kingdom.

Page 18

 
Medlock FRB Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

5.


Other operating income

2024
2023
£
£

Central service fees receivable
100,000
160,000



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Operating lease rentals - land and building
29,333
28,000

Operating lease rentals - other
108,656
35,292

Depreciation of tangible fixed assets
54,918
54,648


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
15,275
14,025

Fees payable to the Company's auditors for taxation compliance services
1,300
1,200

Fees payable to the Company's auditors for all other services
12,375
3,425
Page 19

 
Medlock FRB Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

8.


Employees

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


2024
2023
£
£

Wages and salaries
3,515,419
3,020,428

Social security costs
403,577
368,077

Cost of defined contribution scheme
167,275
101,804

4,086,271
3,490,309


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


        2024
        2023
            No.
            No.







Sales, administrative and operations
70
63


9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
543,282
550,969

Company contributions to defined contribution pension schemes
64,417
51,773

607,699
602,742


During the year retirement benefits were accruing to 7 directors (2023 -3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £106,829 (2023 -£157,924).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £19,468 (2023 -£17,110).


10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
36,000
39,435

Finance leases and hire purchase contracts
2,608
652

38,608
40,087

Page 20

 
Medlock FRB Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
193,778
102,643

Adjustments in respect of previous periods
(206,595)
(233,149)


Total current tax
(12,817)
(130,506)

Deferred tax


Origination and reversal of timing differences
3,682
17,617

Adjustments in respect of previous periods
(2,544)
-

Total deferred tax
1,138
17,617


Tax on profit
(11,679)
(112,889)

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 -lower than) the standard rate of corporation tax in the UK of 25% (2023 -23.5%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
699,198
427,960


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 -23.5%)
174,800
100,571

Effects of:


Expenses not deductible for tax purposes
18,160
14,456

Capital allowances for year in excess of depreciation
4,500
5,233

Adjustments to tax charge in respect of prior periods
(209,139)
(233,149)

Total tax charge for the year
(11,679)
(112,889)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 21

 
Medlock FRB Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

12.


Tangible fixed assets





Freehold property
Plant and machinery
Total

£
£
£



Cost or valuation


At 1 January 2024
900,000
430,006
1,330,006


Additions
-
47,478
47,478



At 31 December 2024

900,000
477,484
1,377,484



Depreciation


At 1 January 2024
36,000
314,065
350,065


Charge for the year
18,000
36,918
54,918



At 31 December 2024

54,000
350,983
404,983



Net book value



At 31 December 2024
846,000
126,501
972,501



At 31 December 2023
864,000
115,941
979,941

Cost or valuation at 31 December 2024 is as follows:

Freehold property
£


At cost
377,201
At valuation:

Market value for current use - 16 June 2022
522,799



900,000

The freehold property was valued on 16 June 2022 by Longden & Cook Real Estate, Chartered Surveyors at £900,000 which is considered its fair value. 

If the freehold property had not been included at valuation they would have been included under the historical cost convention as follows:

2024
2023
£
£



Cost
377,201
377,201

Accumulated depreciation
(132,248)
(124,804)

Net book value
244,953
252,397

Page 22

 
Medlock FRB Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

13.


Debtors

2024
2023
£
£


Trade debtors
1,218,574
1,956,381

Amounts owed by related parties
507,893
183,839

Prepayments and accrued income
128,467
87,905

Amounts recoverable on long-term contracts
7,503,308
5,523,484

9,358,242
7,751,609



14.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
1,495,739
1,923,643


Page 23

 
Medlock FRB Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

15.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
53,964
166,333

Trade creditors
6,191,090
5,092,653

Corporation tax
193,778
102,643

Other taxation and social security
1,200,117
1,226,256

Obligations under hire purchase contracts
8,231
7,413

Other creditors
16,779
18,936

Accruals and deferred income
1,431,462
1,449,622

9,095,421
8,063,856


Obligations under hire purchase contracts are secured against the assets to which they relate.
Bank loans are secured by a legal charge over the Company's property, and by a debenture creating fixed and floating charges over all the Company’s assets, both present and future.
The Company originally entered into a loan facility of £209,000 in March 2019. The loan was repayable by way of 59 monthly instalments, with a final lump sum repayment due in February 2024. Interest was charged at a rate of 2% per annum above the Bank of England base rate. In May 2024, the outstanding balance of £141,598 was refinanced under a new facility. The new loan is repayable by way of 59 monthly instalments, with a final lump sum payment due in April 2029. Interest is charged at 2.75% per annum above the Bank of England base rate.
The Company entered into another loan facility of £337,000 in August 2022. The loan is repayable over a period of 120 months by way of 119 monthly instalments, with a final lump sum payment due in August 2032. Interest is charged at 3% per annum above the Bank of England base rate.


16.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
356,828
286,848

Net obligations under hire purchase contracts
25,519
35,337

382,347
322,185


The aggregate amount of liabilities repayable wholly or in part more than five years after the reporting date is:

2024
2023
£
£


Bank loans repayable by instalments
127,123
202,159

Details regarding bank loans and hire purchase contracts are disclosed in note 15.

Page 24

 
Medlock FRB Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

17.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
53,964
166,333

Amounts falling due 1-2 years

Bank loans
57,479
18,643

Amounts falling due 2-5 years

Bank loans
172,226
66,046

Amounts falling due after more than 5 years

Bank loans
127,123
202,159

410,792
453,181


Details regarding bank loans are disclosed in note 15.


18.


Hire purchase


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
11,608
11,608

Between 1-5 years
31,923
43,531

43,531
55,139

Page 25

 
Medlock FRB Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

19.


Deferred taxation




2024
2023


£

£






Liability at beginning of year
(23,578)
(5,961)


Charged to profit or loss
(1,138)
(17,617)



Liability at end of year
(24,716)
(23,578)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
28,589
28,312

Other timing differences
(3,873)
(4,734)

24,716
23,578


20.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



6,667 (2023 -6,667) Ordinary A shares of £1.00 each
6,667
6,667
6,667 (2023 -6,667) Ordinary B shares of £1.00 each
6,667
6,667
6,667 (2023 -6,667) Ordinary C shares of £1.00 each
6,667
6,667
1,112 (2023 -1,112) Ordinary D shares of £1.00 each
1,112
1,112
1,112 (2023 -1,112) Ordinary E shares of £1.00 each
1,112
1,112

22,225

22,225



21.


Reserves

Non-distributable reserves
A revaluation reserve arose on a revaluation of a property in accordance with UK GAAP.
Profit and loss account
The profit and loss account includes all current and prior period retained profit and losses net of dividends.
Other reserves
Other reserves include contributions made to the Medlock FRB Employee Ownership Trust. 

Page 26

 
Medlock FRB Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

22.


Pension commitments

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 charged represents contributions payable by the Company to the fund and amounted to £129,807 (2023 - £85,251). Contributions totalling £15,492 (2023 - £18,936) were payable to the fund at the balance sheet date.
During the year, the company made contributions of £37,468 
(2023 - £16,553) to the directors personal pension funds. Contributions totalling £NIL (2023 - £Nil) were payable to the fund at the balance sheet date.


23.


Commitments under operating leases

At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£

Land and buildings


Not later than 1 year
30,000
9,333

Later than 1 year and not later than 5 years
42,500
-

72,500
9,333

2024
2023

£
£

Other


Not later than 1 year
130,760
71,563

Later than 1 year and not later than 5 years
187,048
119,116

317,808
190,679


24.


Transactions with directors

Included within prepayments and accrued income brought forward was an amount due from a director of £5,292, which was interest free and repayable on demand. This has been fully repaid during the year. 


25.


Related party transactions

A company manages the individual SIPPs of two directors, which owns the property from which Medlock FRB Limited trades. The company charged Medlock FRB Limited £29,333 (2023 - £53,112).
At the year end, a company related to Medlock FRB Limited through common control charged £60,480 
(2023 - £60,480) to Medlock FRB Limited and was charged £509,780 (2023 - £348,660) by Medlock FRB Limited. The company owes £507,893 (2023 - £193,718) to Medlock FRB Limited at the balance sheet date.
Key management personnel remuneration totalled £607,699 
(2023 - £602,742). The directors consider there are no further key management in addition to the directors.

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Medlock FRB Limited
 
 
 
Notes to the Financial Statements
For the year ended 31 December 2024

26.


Controlling party

The Company is wholly owned by the Medlock FRB Employee Ownership Trust.

 
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