REGISTERED NUMBER: 01405254 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

MERTON GROUP (UK) LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mr P S Tipton

Mr P G Cheeseman

Mr M Maybury

SECRETARY:

Mr P S Tipton

REGISTERED OFFICE:

Unit 9

Foxholes Road

Merton Business Park

Leicester

LE3 1TH

REGISTERED NUMBER:

01405254 (England and Wales)

ACCOUNTANTS:

Magma Audit LLP

Unit 2 Charnwood Edge Business Park

Syston Road, Leicester

LE7 4UZ

Magma Audit LLP is part

Of the Dains Group

FIXED ASSETS

Tangible assets

4

3,701,919

3,084,909

CURRENT ASSETS

Stocks

890,474

1,137,928

Debtors

5

1,824,502

1,514,865

Cash at bank and in hand

19,586

135,235

2,734,562

2,788,028

CREDITORS

Amounts falling due within one year

6

(2,411,291

)

(2,566,775

)

NET CURRENT ASSETS

323,271

221,253

TOTAL ASSETS LESS CURRENT LIABILITIES

4,025,190

3,306,162

CREDITORS

Amounts falling due after more than one year

7

(86,116

)

(232,781

)

PROVISIONS FOR LIABILITIES

(194,000

)

(58,600

)

NET ASSETS

3,745,074

3,014,781

CAPITAL AND RESERVES

Called up share capital

3,502

3,502

Revaluation reserve

1,733,400

1,125,400

Retained earnings

2,008,172

1,885,879

3,745,074

3,014,781

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 10 September 2025 and were signed on its behalf by:

Mr P S Tipton - Director

1.	STATUTORY INFORMATION

Merton Group (UK) Limited is a private limited company, limited by shares, registered in England and Wales. Its registered office address is Unit 9, Foxholes Road, Merton Business Park, Leicester, LE3 1TH and the registered number is 01405254.

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The presentation currency of the financial statements is the Pound Sterling (£).

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts and is recognised when goods are despatched.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets

Tangible fixed assets other than freehold land and buildings are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:

Freehold property

Not depreciated

Computer equipment

20% on cost

Plant, fixtures & fittings

10% and 20% on cost

The company's freehold properties are not depreciated as they are the subject of a continuous maintenance and refurbishment development programme. The directors are of the opinion that the properties are stated at fair values.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Financial instruments

(i) Financial assets

Basic financial assets, including trade and other debtors, cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest rate method.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

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

Taxation

The tax expense for the year comprises current and deferred tax.

Tax is recognised in profit or loss except that a change 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.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet 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.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Operating leases

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

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments 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. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 40 (2023 - 41 ) .

4.	TANGIBLE FIXED ASSETS

Plant,

Freehold

Computer

fixtures

property

equipment

& fittings

Totals

£

£

£

£

COST OR VALUATION

At 1 January 2024

2,942,000

285,695

509,439

3,737,134

Additions

-

14,437

24,439

38,876

Disposals

-

(27,677

)

(2,789

)

(30,466

)

Revaluations

608,000

-

-

608,000

At 31 December 2024

3,550,000

272,455

531,089

4,353,544

DEPRECIATION

At 1 January 2024

-

236,737

415,488

652,225

Charge for year

-

12,332

17,534

29,866

Eliminated on disposal

-

(27,677

)

(2,789

)

(30,466

)

At 31 December 2024

-

221,392

430,233

651,625

NET BOOK VALUE

At 31 December 2024

3,550,000

51,063

100,856

3,701,919

At 31 December 2023

2,942,000

48,958

93,951

3,084,909

Freehold land and buildings with a carrying amount of £2,150,000 (2023 - £2,942,000) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

Freehold land and buildings were revalued on an open market basis on 31 December 2024 by Ward Surveyors Ltd, Chartered Commercial Property Surveyors.The directors consider this to be the fair value of the properties.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

1,736,157

1,441,056

Other debtors

-

560

Directors' current accounts

15,791

-

Prepayments and accrued income

72,554

73,249

1,824,502

1,514,865

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Bank loans and overdrafts

92,276

120,653

Other loans

54,389

54,389

Trade creditors

1,189,317

1,266,657

Tax

156,310

56,700

Social security and other taxes

33,935

37,105

VAT

124,539

120,362

Other creditors

309,395

551,610

Directors' current accounts

155,511

283,319

Accruals and deferred income

295,619

75,980

2,411,291

2,566,775

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Bank loans - 1-2 years

-

92,276

Other loans - 1-2 years

86,116

140,505

86,116

232,781

Included in other creditors is £303,715 (2023: £546,199) relating to amounts due to the invoice finance company. These amounts are secured by a fixed charge over the trade debtors of the company.

8.	LEASING AGREEMENTS

Operating lease payments represent rental expenses incurred by the company for its motor vehicle fleet, commercial motor vehicles, forklift trucks, and certain computer equipment. These leases are typically negotiated for terms ranging from 3 to 6 years, with fixed rental payments throughout the lease term.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases totalling £135,744 (2023 - £189,642).

9.	SECURED DEBTS

The following secured debts are included within creditors:

2024

2023

£

£

Bank loans

92,276

212,929

Other loans

140,505

194,894

232,781

407,823

The bank loan is secured by a debenture over all assets of the company dated 29 July 2002 along with legal charges over one of the company's freehold property at Unit 9 Foxholes Road, Leicester LE3 1TH dated 14 July 2010. The bank loan attracts interest at 1.5% above SONIA and is repayable by quarterly instalments over 15 years following drawdown and is therefore fully repayable by 13 July 2025.

Other loans are secured by a legal charge over all of the intellectual property rights of the company.

10.	OTHER FINANCIAL COMMITMENTS

At the year end the company had a financial commitment to purchase forward exchange contracts of €NIL (2023 - €NIL) which was the equivalent of £NIL (2023 - £NIL).

11.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 December 2024 and 31 December 2023:

2024

2023

£

£

Mr P G Cheeseman

Balance outstanding at start of year

(31,695

)

(35,190

)

Amounts advanced

165,170

90,371

Amounts repaid

(117,684

)

(86,876

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

15,791

(31,695

)

12.	RELATED PARTY TRANSACTIONS

In July 2022 the company received a loan of £221,945 from Merton Cleaning Supplies (Leicester) Limited No 2 Retirement Benefit Scheme. At 31 December 2024 the total amount outstanding was £140,505 (2023 - £194,894). Interest is charged at 2.0% over the 5 year term and the loan is unsecured.