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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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MARLIN INDUSTRIES LIMITED
COMPANY INFORMATION
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MARLIN INDUSTRIES LIMITED
CONTENTS
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MARLIN INDUSTRIES LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors present their report and the financial statements of the Group and Company for the year ended 31 December 2024.
Marlin Industries is at the forefront in the delivery of end-to-end packaging and logistics solutions to the cable industry.
Our mission is to apply innovation, investment and effective partnering to bring circular economy best practice and create sustainable opportunity.
While H1 2024 was expected to be challenging, it was viewed that the second half of the year would show demand improvement. This was not the case. The construction sector experienced further contraction, while much of the telecoms market continued with depressed demand as network build slowed. For the power sector, business levels remained relatively static with expectations of growth pushed back into 2025. The reduction in sales revenues to £13.3M from £14.9M in 2023 represents a major departure from trading history over recent years.
Unlike 2023, where government support was available helping offset the dramatic increases in energy costs, the full impact of significantly higher energy costs were felt through 2024. In response, further electricity monitoring at the Wrexham site was introduced in Q2 2024, which did highlight a number of areas where future savings could be made. The 9.8% increase in National Living Wage effective from April 2024 required an across the board pay review, significantly lifting payroll costs for the balance of the year. Between the continued high cost of energy and payroll increases, cost of sales increased to 65% of total revenue, compared to 62% for 2023. The reduction in revenues combined with the identified cost increases made for a disappointing performance for the year. On a more positive note, while the reduction in revenues for 2024 is disappointing the fundamentals and long term prospects of the business remain encouraging. Environmental legislation through Extended Producer Responsibilities and waste segregation regulations in Wales were successfully navigated in 2024. Increasing environmental legislation positively impacts on the recycling functions provided by Marlin Industries. New contracts within the reel manufacturing and cable logistics functions were secured in late 2024, with commencement in early 2025. Through the year, continued development of the vehicle fleet has increased flexibility and created more opportunity to operate both in and external to the cable industry. Although no significant investment was made in the plastics recycling function, process refinement continued, resulting in better control of costs, reduced wastage and improved product quality. Research into other markets and products in addition to the Revivareel product has been conducted through the year, with a number of opportunities being actively explored. While average staffing levels were consistent with the previous year, reductions were experienced in the latter months of 2024, however the policy of maintaining the necessary experience and expertise was continued due to an expectation of improving market conditions in 2025.
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MARLIN INDUSTRIES LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The combined impact of reduced sales activity coupled to increased costs is the major challenge to resolve for 2025. Moving the Group back to a profitable position through rebuilding sales levels and introducing cost control/reduction measures is the primary objective for the year.
As previously mentioned, new contracts are due to come on stream in early 2025, supplementing existing workload. Further growth within the transport function is also expected, utilising the increased flexibility of the vehicle fleet to take on work outside of the traditional cable industry supply chain. Regarding cost control, it is evident from the 2024 results that effectiveness of personnel and reducing energy usage are a high priority. Further payroll increases through ENIC and NLW will bring further challenge through 2025. To offset these increases, carefully matching staffing levels to demand and generating individual productivity gains are required. Q4 2024 saw the introduction of personal development plans (PDP’s) for the management team, with positive results. Extending to all personnel through the organisation is a key requirement for 2025. As a Group, Marlin Industries has a wide range of activities and having PDP’s aligned to company objectives brings focus and clarity of purpose. Routes to achieve further reductions in energy usage are successfully being generated through close monitoring of consumption. The introduction of additional meters during 2024 have been used to identify departmental electricity consumption and in turn identify measures to bring further reductions. Extending the monitoring of energy usage to include all sites will be a requirement for 2025. In certain areas there is an expectation that raw material prices will reduce through 2025, which is turn will mean passing on those reductions in the form of lower selling prices for certain items. Lifting prices for transport and high labour content services/products will be required for 2025 to take into account NLW and ENIC uplifts. Based on sales activity to date the plastic recycling activity needs a review of processing routes and final products. To assist with that review external expert support is to be obtained. Exploring additional markets and expanding the processing capability is seen as the next step for larger scale development of the plastics recycling activity. Financial forecasts continue to be produced and updated in line with industry knowledge and reports. The Directors continually monitor risks and in response manage the business prudently and with flexibility. Regular communication to clients and employees is recognised as playing an instrumental part in maintaining the solid reputation gained over the decades of operation.
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MARLIN INDUSTRIES LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Group measures its financial performance and position by reference to key performance indicators (KPI's). The KPI's used by the business include those relating to turnover, gross profit, operating profit, net assets and net current assets. An analysis of the performance of the Group during the year and its position at the year end using these KPI's is included in the business review above.
The Group uses a variety of non-financial KPI's to monitor and measure success which covers the whole business operating spectrum.
This report was approved by the board and signed on its behalf.
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MARLIN INDUSTRIES 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.
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
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 2006. They 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.
The loss for the year, after taxation, amounted to £356,163 (2023 - profit £517,616).
Dividends declared in the year were £286,896 (2023: £316,896).
The directors who served during the year were:
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MARLIN INDUSTRIES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Energy security, greenhouse gas emission reductions and high speed broadband continue to provide a solid platform for Marlin Industries to extend client base and revenues.
In support of the 2030 Net Zero target, formal analysis of carbon emissions has been introduced with scope 1 & 2 audits completed at the Wrexham site for 2022. Measures and techniques to produce year on year reductions are being identified and introduced, with, in many cases, complimentary reductions in costs. Extending the determination of GHG emissions from energy and fuel will be extended to the Hawick site in 2023. Work has commenced on scope 3, I.e. quantifying embedded emissions in the products produced by Marlin Industries. Already evident is the significant benefit the introduction of Revivareel can bring in lowering embedded GHG emissions. Utilising waste materials arising from the cable industry and converting into fully reusable reels is now realisable. GHG emission reductions and sales growth are expected to become very closely linked, especially as Marlin Industries derives most of its sales from organisations with already well-defined target dates to achieve net zero.
Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
There have been no significant events affecting the Group since the year end.
The auditors, WR Partners, will 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.
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MARLIN INDUSTRIES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARLIN INDUSTRIES LIMITED
We have audited the financial statements of Marlin Industries Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 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 policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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.
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.
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MARLIN INDUSTRIES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARLIN INDUSTRIES LIMITED (CONTINUED)
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 Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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MARLIN INDUSTRIES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARLIN INDUSTRIES LIMITED (CONTINUED)
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MARLIN INDUSTRIES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARLIN INDUSTRIES LIMITED (CONTINUED)
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:
The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and the Group and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR). We understood how the Company and the Group are complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We also reviewed board minutes to identify any recorded instances of irregularity or non compliance that might have a material impact on the financial statements. We assessed the susceptibility of the Company and Group's financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
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MARLIN INDUSTRIES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARLIN INDUSTRIES LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
Belmont House
Shrewsbury Business Park
Shropshire
SY2 6LG
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MARLIN INDUSTRIES LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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MARLIN INDUSTRIES LIMITED
REGISTERED NUMBER: 03687239
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024
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MARLIN INDUSTRIES LIMITED
REGISTERED NUMBER: 03687239
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 21 to 45 form part of these financial statements.
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MARLIN INDUSTRIES LIMITED
REGISTERED NUMBER: 03687239
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
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MARLIN INDUSTRIES LIMITED
REGISTERED NUMBER: 03687239
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 21 to 45 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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