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Registered number: 03279838









MARCOE ENGINEERING SERVICES LIMITED









DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2024

 
MARCOE ENGINEERING SERVICES LIMITED
 
 
COMPANY INFORMATION


Directors
Mark Stewart Crilley 
John Arthur Reynolds 




Registered number
03279838



Registered office
Unit 3 Mallow Park
Welwyn Garden City

Hertfordshire

AL7 1GX




Independent auditors
Moore Kingston Smith LLP
Chartered Accountants

4 Victoria Square

St Albans

Hertfordshire

AL1 3TF





 
MARCOE ENGINEERING SERVICES LIMITED
 

CONTENTS



Page
Directors' Report
1 - 2
Independent Auditors' Report
3 - 7
Consolidated Statement of Comprehensive Income
8
Consolidated Balance Sheet
9 - 10
Company Balance Sheet
11 - 12
Consolidated Statement of Changes in Equity
13
Company Statement of Changes in Equity
14
Consolidated Statement of Cash Flows
15
Notes to the Financial Statements
16 - 29


 
MARCOE ENGINEERING SERVICES LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

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

Directors' responsibilities statement

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

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


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

make 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 Group will continue in business.

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

Directors

The directors who served during the year were:

Mark Stewart Crilley 
John Arthur Reynolds 

Disclosure of information to auditors

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

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

Auditors

The auditorsMoore Kingston Smith LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 1

 
MARCOE ENGINEERING SERVICES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024


Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

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





Mark Stewart Crilley
Director

Date: 26 September 2025

Page 2

 
MARCOE ENGINEERING SERVICES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARCOE ENGINEERING SERVICES LIMITED
 

Opinion


We have audited the financial statements of Marcoe Engineering Services Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 September 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 30 September 2024 and of the Group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Page 3

 
MARCOE ENGINEERING SERVICES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARCOE ENGINEERING SERVICES LIMITED (CONTINUED)


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.


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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Directors' Report has been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.


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


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Group Strategic Report.


Page 4

 
MARCOE ENGINEERING SERVICES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARCOE ENGINEERING SERVICES LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 1, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 5

 
MARCOE ENGINEERING SERVICES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARCOE ENGINEERING SERVICES LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Discussions with and enquiries of management and those charged with governance were held with a view to
identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. 
The following laws and regulations were identified as being of significance to the entity: 
• Those laws and regulations considered to have a direct effect on the financial statements include UK
financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.
 
• Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the
business and therefore may have a material effect on the financial statements include health and safety
legislation, employment law and data protection.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and
non-compliance with laws and regulations) comprised of: inquiries of management and those charged with
governance as to whether the entity complies with such laws and regulations; enquiries with the same
concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of
board minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities,
including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s
controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud
might be inherently more difficult to detect than irregularities that result from error. As explained above, there is
an unavoidable risk that material misstatements may not be detected, even though the audit has been planned
and performed in accordance with ISAs (UK).


As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:


Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the
Page 6

 
MARCOE ENGINEERING SERVICES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARCOE ENGINEERING SERVICES LIMITED (CONTINUED)


effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' 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 Auditors' 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 Auditors' Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statementsWe are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.


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.


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.





Graham Wintle (Senior Statutory Auditor)
  
for and on behalf of
Moore Kingston Smith LLP
 
Chartered Accountants
  
4 Victoria Square
St Albans
Hertfordshire
AL1 3TF

26 September 2025
Page 7

 
MARCOE ENGINEERING SERVICES LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2024
2023
Note
£
£

  

Turnover
  
12,340,243
12,459,452

Cost of sales
  
(11,300,837)
(10,245,449)

Gross profit
  
1,039,406
2,214,003

Administrative expenses
  
(1,789,891)
(1,482,807)

Operating (loss)/profit
  
(750,485)
731,196

Share of profit of joint venture
  
(200)
-

Total operating (loss)/profit
  
(750,685)
731,196

Interest receivable and similar income
  
24,184
5,096

Interest payable and similar expenses
  
(17,637)
(19,994)

(Loss)/profit before taxation
  
(744,138)
716,298

Tax on (loss)/profit
 6 
16,795
68,071

(Loss)/profit for the financial year
  
(727,343)
784,369

(Loss)/profit for the year attributable to:
  

Owners of the parent Company
  
(727,343)
784,369

  
(727,343)
784,369

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

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

The notes on pages 16 to 29 form part of these financial statements.

Page 8

 
MARCOE ENGINEERING SERVICES LIMITED
REGISTERED NUMBER: 03279838

CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 9 
100,020
17,703

  
100,020
17,703

Current assets
  

Stocks
 11 
65,000
65,000

Debtors due after more than one year
  
34,309
74,993

Debtors due within one year
  
3,410,646
2,246,349

Cash at bank and in hand
 13 
795,245
1,990,428

  
4,305,200
4,376,770

Creditors: amounts falling due within one year
 14 
(2,457,250)
(1,608,049)

Net current assets
  
 
 
1,847,950
 
 
2,768,721

Total assets less current liabilities
  
1,947,970
2,786,424

Creditors: amounts falling due after more than one year
 15 
-
(111,111)

Provisions for liabilities
  

Net assets
  
1,947,970
2,675,313


Capital and reserves
  

Called up share capital 
  
3
3

Profit and loss account
  
1,947,967
2,675,310

Equity attributable to owners of the parent Company
  
1,947,970
2,675,313

  
1,947,970
2,675,313


Page 9

 
MARCOE ENGINEERING SERVICES LIMITED
REGISTERED NUMBER: 03279838
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2024

The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

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




Mark Stewart Crilley
Director

Date: 26 September 2025

The notes on pages 16 to 29 form part of these financial statements.

Page 10

 
MARCOE ENGINEERING SERVICES LIMITED
REGISTERED NUMBER: 03279838

COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 10 
3,500,000
3,500,000

  
3,500,000
3,500,000

Current assets
  

Debtors
 12 
-
1,000

Cash at bank and in hand
 13 
256,806
505,099

  
256,806
506,099

Creditors: amounts falling due within one year
 14 
(1,667,162)
(1,418,162)

Net current liabilities
  
 
 
(1,410,356)
 
 
(912,063)

Total assets less current liabilities
  
2,089,644
2,587,937

  

Creditors: amounts falling due after more than one year
 15 
-
(500,000)

  

Net assets excluding pension asset
  
2,089,644
2,087,937

Net assets
  
2,089,644
2,087,937


Capital and reserves
  

Called up share capital 
  
3
3

Profit and loss account carried forward
  
2,089,641
2,087,934

  
2,089,644
2,087,937


Page 11

 
MARCOE ENGINEERING SERVICES LIMITED
REGISTERED NUMBER: 03279838
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2024

The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

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


Mark Stewart Crilley
Director

Date: 26 September 2025

The notes on pages 16 to 29 form part of these financial statements.

Page 12

 
MARCOE ENGINEERING SERVICES LIMITED
 

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


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 October 2022
3
1,890,941
1,890,944


Comprehensive income for the year

Profit for the year
-
784,369
784,369



At 1 October 2023
3
2,675,310
2,675,313


Comprehensive income for the year

Loss for the year
-
(727,343)
(727,343)


At 30 September 2024
3
1,947,967
1,947,970


The notes on pages 16 to 29 form part of these financial statements.

Page 13

 
MARCOE ENGINEERING SERVICES LIMITED
 

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


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 October 2022
3
-
3


Comprehensive income for the year

Profit for the year
-
2,087,934
2,087,934



At 1 October 2023
3
2,087,934
2,087,937


Comprehensive income for the year

Profit for the year
-
1,707
1,707


At 30 September 2024
3
2,089,641
2,089,644


The notes on pages 16 to 29 form part of these financial statements.

Page 14

 
MARCOE ENGINEERING SERVICES LIMITED
 

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

2024
2023
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(727,343)
784,369

Adjustments for:

Amortisation of intangible assets
-
(72,515)

Depreciation of tangible assets
19,734
7,611

Interest paid
17,637
19,994

Interest received
(24,184)
(5,096)

Taxation charge
(16,795)
(68,071)

(Increase)/decrease in debtors
(1,054,010)
2,157,935

(Increase)/decrease in amounts owed by participating ints
(69,603)
-

Increase/(decrease) in creditors
922,520
(1,245,181)

Share of operating profit in joint ventures
200
-

Corporation tax (paid)/received
(968)
24,680

Net cash generated from operating activities

(932,812)
1,603,726


Cash flows from investing activities

Purchase of tangible fixed assets
(102,051)
-

Purchase of share in joint ventures
(200)
-

Interest received
24,184
5,096

Net cash from investing activities

(78,067)
5,096

Cash flows from financing activities

Repayment of loans
(166,667)
(166,666)

Interest paid
(17,637)
(19,994)

Net cash used in financing activities
(184,304)
(186,660)

Net (decrease)/increase in cash and cash equivalents
(1,195,183)
1,422,162

Cash and cash equivalents at beginning of year
1,990,428
568,266

Cash and cash equivalents at the end of year
795,245
1,990,428


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
795,245
1,990,428


The notes on pages 16 to 29 form part of these financial statements.

Page 15

 
MARCOE ENGINEERING SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

1.


General information

Marcoe Engineering Services Limited is a company limited by shares incorporated in England and Wales under the Companies Act 2006. The address of the registered office is Unit 3 Mallow Park, Welwyn Garden City, AL1 1GX. The principal activity of the company is that of being a holding company.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

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

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102. .

 
2.3

Going concern

The financial statements have been prepared on the going concern basis as the Directors are satisfied that the Group will continue to have access to sufficient resources to meet the working capital requirements of the Group for a period of at least twelve months from the date of signing of these financial statements.

Page 16

 
MARCOE ENGINEERING SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

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

 
2.5

Operating leases: the Group as lessee

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

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

 
2.6

Interest income

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

 
2.7

Finance costs

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

Page 17

 
MARCOE ENGINEERING SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.8

Borrowing costs

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

 
2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.10

Taxation

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 balance sheet date in the countries where the Company and the Group operate and generate income.


 
2.11

Intangible assets

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

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

 
2.12

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 18

 
MARCOE ENGINEERING SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)


2.12
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Motor vehicles
-
25%
on reducing balance
Fixtures and fittings
-
25%
on reducing balance
Office equipment
-
50%
on cost

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.

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
2.14

Stocks

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

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

 
2.15

Debtors

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

Page 19

 
MARCOE ENGINEERING SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.16

Cash and cash equivalents

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

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

 
2.17

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.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and
assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and
the amounts reported for revenues and expenses during the year. The nature of estimation means the
actual outcomes could differ from those estimates.
The main area of estimation uncertainty are the construction contracts. The profitability of contracts is
estimated which affects both costs and revenues included in the accounts. Stage of completion is also
estimated to determine whether and how much income should be brought into the current period. These
judgements are made by quarterly surveyors, so the decisions made are from a professional, reliable
source.


4.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the Group's auditors for the audit of the Group's financial statements
20,600
19,650

Page 20

 
MARCOE ENGINEERING SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

5.


Employees

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



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Marcoe Engineering Limited employees
43
38
-
-



Directors
2
2
2
2

45
40
2
2


6.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
-
17,763

Adjustments in respect of previous periods
(16,795)
(85,834)


(16,795)
(68,071)


Total current tax
(16,795)
(68,071)
Page 21

 
MARCOE ENGINEERING SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
 
6.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 22%). The differences are explained below:

2024
2023
£
£


(Loss)/profit on ordinary activities before tax
(744,138)
716,298


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 22%)
(186,035)
158,554

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
10,611
(11,130)

Capital allowances for year in excess of depreciation
-
1,610

Utilisation of tax losses
-
(128,759)

Short-term timing difference leading to an increase (decrease) in taxation
-
(2,512)

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
(16,795)
(85,834)

Unrelieved tax losses carried forward
175,424
-

Total tax charge for the year
(16,795)
(68,071)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


7.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the parent Company for the year was £1,707 (2023 - £2,087,934).

Page 22

 
MARCOE ENGINEERING SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

8.


Intangible assets

Group and Company





Goodwill
Negative goodwill
Total

£
£
£



Cost


At 1 October 2023
2,086,651
(1,196,596)
890,055


Disposals
(1,286,651)
-
(1,286,651)



At 30 September 2024

800,000
(1,196,596)
(396,596)



Amortisation


At 1 October 2023
2,086,651
(1,196,596)
890,055


On disposals
(1,286,651)
-
(1,286,651)



At 30 September 2024

800,000
(1,196,596)
(396,596)



Net book value



At 30 September 2024
-
-
-



At 30 September 2023
-
-
-



Page 23

 
MARCOE ENGINEERING SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

9.


Tangible fixed assets

Group






Motor vehicles
Fixtures and fittings
Office equipment
Total

£
£
£
£



Cost or valuation


At 1 October 2023
93,798
14,729
22,926
131,453


Additions
-
102,051
-
102,051



At 30 September 2024

93,798
116,780
22,926
233,504



Depreciation


At 1 October 2023
78,144
12,680
22,926
113,750


Charge for the year on owned assets
3,914
15,820
-
19,734



At 30 September 2024

82,058
28,500
22,926
133,484



Net book value



At 30 September 2024
11,740
88,280
-
100,020



At 30 September 2023
15,654
2,049
-
17,703

Page 24

 
MARCOE ENGINEERING SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

10.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 October 2023
3,500,000



At 30 September 2024
3,500,000





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

MSC Enterprises Limited
Unit 3 Mallow Park, AL71GX
Ordinary
100%
Marcoe Engineering Ltd
Unit 3 Mallow Park, AL71GX
Ordinary
100%

The aggregate of the share capital and reserves as at 30 September 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

MSC Enterprises Limited
154
-

Marcoe Engineering Limited
3,358,372
(728,850)


11.


Stocks

Group
Group
2024
2023
£
£

Finished goods and goods for resale
65,000
65,000


The difference between purchase price or production cost of stocks and their replacement cost is not material.

Page 25

 
MARCOE ENGINEERING SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

12.


Debtors

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

Due after more than one year

Trade debtors
34,309
74,993
-
-

34,309
74,993
-
-

Due within one year

Trade debtors
1,125,080
1,153,091
-
-

Amounts owed by joint ventures and associated undertakings
72,237
-
-
-

Other debtors
107,560
25,985
-
1,000

Prepayments and accrued income
1,226,064
717,247
-
-

Amounts recoverable on long-term contracts
879,705
350,026
-
-

3,444,955
2,321,342
-
1,000



13.


Cash and cash equivalents

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

Cash at bank and in hand
795,245
1,990,428
256,806
505,099


Page 26

 
MARCOE ENGINEERING SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

14.


Creditors: Amounts falling due within one year

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

Bank loans
111,111
166,667
-
-

Trade creditors
1,801,180
1,124,055
-
-

Amounts owed to group undertakings
-
-
1,561,442
1,411,474

Corporation tax
-
17,763
-
968

Other taxation and social security
98,716
73,599
-
-

Other creditors
417,204
105,896
105,720
5,720

Accruals and deferred income
29,039
120,069
-
-

2,457,250
1,608,049
1,667,162
1,418,162



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

Bank Loans
111,111
166,667

Details of security provided:

There is security over the bank loan in the form of a debenture.


15.


Creditors: Amounts falling due after more than one year

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

Bank loans
-
111,111
-
-

Amounts owed to group undertakings
-
-
-
500,000

-
111,111
-
500,000



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


Bank loans
-
111,111

Details of security provided:

There is security over the bank loan in the form of a debenture covering the undertaking of the company. 

Page 27

 
MARCOE ENGINEERING SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

16.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2024
2023
£
£

Amounts falling due within one year

Bank loans
111,111
166,667

Amounts falling due 1-2 years

Bank loans
-
111,111

Amounts falling due 2-5 years


111,111
277,778



17.


Pension commitments

The Company operates a defined contributions pension scheme for all qualifying employees. The assets of the scheme are held seperately from those of the company in an independently administered fund.
During the year there were contributions of £46,383 (2023: £43,377) to the pension scheme.  Contributions of £9,965 (2023: £1,674) were owed to the scheme at the balance sheet date.


18.


Commitments under operating leases

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


Group
Group
2024
2023
£
£

Not later than 1 year
131,652
131,652

Later than 1 year and not later than 5 years
475,940
485,419

Later than 5 years
235,600
353,400

843,192
970,471

Page 28

 
MARCOE ENGINEERING SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

19.


Related party transactions

During the year £Nil (2023: £3,600) of building cost recharges were received from JBOS Holding Limited, a related party due to common ownership.
During the year £113,477 (2023: £122,905) of rent was charged from JBOS Holdings Limited, a related party due to common ownership. 
All transactions were at an arms length basis.
Included in other creditors is a loan from a director of £100,000 (2023: included in other debtors £1,000).
At the year end MSC Enterprises Limited was owed £154 (2023: £154) by Marcoe Engineering Services Limited. 
At the year end Marcoe Engineering Services Limited owed £1,561,288 (2023: £1,911,320) to Marcoe Engineering Limited. 
The Group has taken advantage of the exception available under FRS 102 paragraph 33.1a whereby it
has not disclosed transactions between the ultimate parent company or any wholly owned subsidiary
undertaking of the group.


20.


Controlling party

The ultimate controlling party in the current and prior year is Mark Crilley.

 
Page 29