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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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MISCO TECHNOLOGIES LIMITED
COMPANY INFORMATION
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MISCO TECHNOLOGIES LIMITED
CONTENTS
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MISCO TECHNOLOGIES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company’s principal activity during the year continued to be that of a value added reseller of IT solutions and services.
A dividend of £3,059,987 was declared during the year. Key financial and other performance indicators during the year were as follows: 2024 2023 Change £’000 £'000 % Turnover 85,691 71,350 20% Operating profit excluding exceptional items 6,117 4,689 30% Profit after tax 2,528 3,824 -34% Equity Shareholders’ 5,480 6,011 -9% Current assets as a % of current liabilities 146% 150% -4% Average No. of employees 83 83 0% The year ended 31 December 2024 marked a period of strong growth and a successful execution of the 2024 plan, with revenue increasing by 20% to £85.7 million (2023: £71.4 million). Growth was driven by the ongoing expansion of the customer base and the continued focus on customer solutions, resulting in a broadening of the Company’s offering, particularly in software and licensing, altogether delivering double-digit growth. In addition, increased activity through national public sector frameworks contributed positively to performance, reflecting the Company’s growing reputation and capability within the sector. Despite some margin pressure from high-volume public sector contracts, gross profit was maintained at a resilient level, with gross margin holding at 11.1% (2023: 11.6%). This mix effect was anticipated and managed, and the underlying operating performance remained very strong. Operating profit before exceptional items increased by 30% to £6.1m (2023: £4.7m), a testament to the effectiveness of the Group’s commercial strategy and operational execution. This performance reflects both disciplined cost control and the ongoing success of our team, who continue to drive the business forward. Profit after tax for the year was £2.5 million (2023: £3.8 million), with the reduction primarily driven by two exceptional items. A one-off accounting adjustment of £1.4 million was recorded in relation to the write-off of intercompany balances with Comet Electricals Limited, following the sale of the Comet brand in May 2025. This non-operational, intra-group charge is expected to be offset by a corresponding credit in Comet Electricals Limited’s 2025 financial statements, resulting in no impact on the Group’s consolidated performance. In addition, a historic VAT provision of £1.3 million was written off during the year. The company’s equity position strengthened modestly, and its liquidity position remained stable with current assets at 146% of current liabilities. The average number of employees remained the same to 83 (2023: 83), consistent with the company’s ongoing strategy to invest in talent. As outlined in last year’s report, recruitment continues to play a key role in supporting growth. Attracting skilled individuals from across the technology sector remains a strategic priority, complementing the company’s presence on national public sector frameworks. Sustainable Development The Company is committed to achieving sustainable growth which is aligned to its ISO 14001 Environmental Management accreditation and its Environment Policy and Environmental Statement. The results of this have been captured in the Company’s latest Carbon Reduction Plan in relation to years 2024 and 2023. This report is compiled, managed, and approved by the Environmental, Social and Governance Board (“ESG Board”). It is reviewed at least annually and is aimed at measuring the business’s environmental footprint
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MISCO TECHNOLOGIES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
and setting out the specific operational strategies that support sustainable growth.
The Report also addresses the Government’s Procurement Policy Note, PPN 06/21, to support the business’s target of at least a 100% reduction in its net carbon emissions, otherwise known as the “Net Zero” target. Streamlined Energy and Carbon Reporting (SECR) The Company is not required to present data and information relating to emissions, energy consumption and energy efficiency action. However, it has chosen to do so given its increasing importance on taking action to reduce the effects of climate change and provide greater transparency for our stakeholders. Misco has analysed its emissions usage, otherwise known as its GHG inventory, by applying the principles of the revised edition of the World Resources Institute/ World Business Council for Sustainable Development’s GHG Protocol Corporate Accounting and Reporting Standard. Data has been collected in respect of energy consumption at Misco’s two offices in Northampton and Wellingborough, and its warehouse facilities recently opened in Wellingborough. Data has also been analysed in relation to emissions from combustion of fuels in company vehicles. This represents the Company’s Scope 1 and 2 emissions, being those under the direct control of Misco and its business activities. Misco has also analysed a defined subset of Scope 3 emissions in line with PPN-0621 to support the government’s commitment to continuing its efforts to reduce greenhouse gas emissions and deliver on its carbon budget commitments. The Company has identified the following categories to report on under Scope 3 emissions: Category Description 3 Fuel & energy-related activities 4 Upstream Transportation & Distribution 5 Waste Generated in Operations 6 Business Travel 7 Employee Commuting 9 Downstream Transportation & Distribution The calculation of GHG inventory for Scope 3 emissions is optional. However, given the direct relation between facility emissions and employee home working, this report has captured Scope 3 emissions from home working as an activity directly linked to reducing Misco’s carbon footprint. For upstream and downstream transportation, the Company has analysed its fulfilment data for each individual sale made to customers. The Company has also liaised with its waste disposal providers to obtain weight data by each disposal method. An employee travel survey was again undertaken so that emissions from employee commuting to and from work can be measured. The data aligns with the company’s financial reporting periods for years ending 31 December. To avoid double counting activities not under direct control of Misco, indirect emissions from the production of purchased materials and transport-related activities relating to the transportation of purchased materials or goods to our suppliers have been excluded from this Emissions Report. Scope Emissions Source Consumption Emissions (tCO2e) 2024 2023 2024 2023 1 Natural Gas consumption 92.5 KWh 137.6 KWh 16.9 25.2 1 Company vehicles 692 Litres 2,974 Litres 1.5 7.0 2 Electricity purchased 111.3 KWh 107.1 KWh - - Total for Scope 1 & 2 18.4 32.2
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MISCO TECHNOLOGIES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3 Home Working 1,323 Days 724 Days 3.3 2.1 3 Waste Generated in Operations 6.20 tonnes 8.1 tonnes 0.0 0.2 3 Business Travel 19.5 6.5 3 Employee Commuting 54.1 42.9 3 Upstream Transportation & Distribution 8.7 9.9 3 Downstream Transportation & Distribution 8.7 9.9 Grand Total 112.7 103.6 Alongside total emissions figures, the ESG Board present intensity measures of emissions based on both the number of employees and total revenue. The ESG Board believe this gives a good indication of the performance of the sustainability initiatives taking into account the company’s continuing organic growth. Turnover £m 85.7 71.4 Average number of employees 83 83 Intensity total (tCO2e per £1m of turnover) 1.32 1.45 Intensity total (tCO2e per employee) 1.36 1.28 Emissions Performance Overall emissions have increased in 2024 when compared to 2023 from 103.6 tonnes to 112.7 tonnes, an increase of 9%. This has been mainly due to a significant increase in turnover of 20%. Therefore, intensity levels by trading activity and headcount are broadly in line with last year. Recruitment planning around year end suggests rapid growth in this area in early 2025, so it is expected intensity by employee to reduce during next year. Following the consolidation of its workforce into the Wellingborough office in 2023, Misco achieved a marked reduction in natural gas consumption over the course of 2024. Despite the revenue growth of the business, total electricity consumption stayed almost flat at just over 100,000 kWh. During 2022, the company switched its company car fleet policy to electric technology for all new leases. As a result of this, total emissions from company cars continues to fall. Overall, Misco achieved its aim of reducing its emissions per £1m of turnover in 2024 but has increased its overall carbon footprint due to the growth in the business. The three main areas of challenge continue to be: (i) Natural gas consumption: All of Misco’s sites are leasehold and so making energy efficient alterations to the building is not possible. Current leasehold commitments are not due to expire until 2026. (ii) Employee commuting: There has been little adoption of electric vehicles by employees, hindered by the government delaying the ban of fossil fuel vehicles to 2035. (iii) Transportation & Distribution: There is limiting data or widespread action on emissions and Misco continues to work with its suppliers to build momentum in this area.
The Company consider that the following are the principal risks that could materially and adversely affect the Company’s future financial performance or financial position. The Board regularly reviews these and any other potential risks and takes proactive actions to mitigate their impact and, or likeliness.
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MISCO TECHNOLOGIES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Competition
In addition to an extensive brand and product portfolio, the Company boasts an experienced team specializing in the Business, Education, Healthcare, and Government sectors, delivering industry-leading solutions. The Misco team is dedicated to building strong, long-lasting relationships with customers, with senior management investing significant time and resources to maintain and develop key accounts. As a business, we prioritize understanding our customers’ needs and challenges to identify the most suitable and cost-effective solutions. The Company also collaborates closely with its distributors, vendors, and manufacturers to provide valuable and effective technology solutions. Customer reliance No one customer makes up more than 10% of the Company’s sales or gross profit and the Company operates across a broad spectrum of industries, reducing the impact of any market fluctuations or changes to procurement trends. Supply chain Whilst maintaining and building relationships with key vendors and new suppliers, the Company actively works with an extensive supplier base. This enables the Company to offer its customers alternative IT solutions which lessens its exposure to particular product shortages. Credit risk The Company employs a highly experienced and professional credit control function to manage credit risk effectively. We have established robust credit approval processes and maintain comprehensive credit insurance to mitigate potential losses. Additionally, our team proactively manages account balances, ensuring that any issues are promptly addressed to maintain the financial health of the organization. Liquidity risk The Company continues to operate under its HSBC overdraft facility, providing additional liquidity to support the working capital cycle if required. Notwithstanding this facility, the Company consistently maintained surplus cash balances throughout the year, generating interest receivable income as a result. At the year end, the Company held £2.1 million in cash, which was placed in overnight deposit accounts. No amounts were owed at the balance sheet date.
Key financial performance indicators are monitored on a regular basis
• Turnover has increased by 20% compared to 2023, from £71.3M to £85.7M • Gross margin has decreased by 0.8% compared to 2023, from 11.6% to 11.1% • Debtors days have decreased by 11 days compared to the previous year, from 56 to 45 days • Net assets have decreased to £5.5m
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MISCO TECHNOLOGIES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
This report was approved by the board and signed on its behalf.
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MISCO TECHNOLOGIES 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 Strategic Report, the Directors' Report and the 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 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 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £2,528,371 (2023 - £3,823,756).
Dividends of £3,059,987 (2023 - £3,739,613) were declared in the year.
The directors who served during the year were:
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MISCO TECHNOLOGIES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company's strategy is to continue to respond to the ever-growing demand from businesses to invest in technology software, hardware and solutions, as IT solutions and embracing new technologies remain at the forefront for development and efficiencies. The Company will continue to develop its customer base and extend reach in its current chosen sectors here in the UK.
The Company will continue to expand through investment in its people, both in training and development, as well as the recruitment of additional experienced sales staff.
There have been no significant events affecting the Company since the year end.
The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.
MHA 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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MISCO TECHNOLOGIES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MISCO TECHNOLOGIES LIMITED
We have audited the financial statements of Misco Technologies Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the 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 Auditor's 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.
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.
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MISCO TECHNOLOGIES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MISCO TECHNOLOGIES LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's 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 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.
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.
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MISCO TECHNOLOGIES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MISCO TECHNOLOGIES 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 Auditor's 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:
• Enquiry of management and those charged with governance around actual and potential litigation and claims; • Enquiry of entity staff to identify any instances of non-compliance with laws and regulations; • Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. • Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
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 Auditor's Report.
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MISCO TECHNOLOGIES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MISCO TECHNOLOGIES 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 Auditor's 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
Statutory Auditor
Northampton, United Kingdom
Date:
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542).
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MISCO TECHNOLOGIES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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MISCO TECHNOLOGIES LIMITED
REGISTERED NUMBER: 07105367
BALANCE SHEET
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 15 to 29 form part of these financial statements.
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MISCO TECHNOLOGIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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MISCO TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Misco Technologies Limited is a private company limited by shares, registered in England and Wales, registered number 07105367. The registered office and principal place of business is 3-5 Huxley Close, Wellingborough, Northamptonshire, NN8 6AB.
2.Accounting policies
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:
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
• the requirements of Section 7 Statement of Cash Flows; • the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d). This information is included in the consolidated financial statements of The Misco Group Limited as at 31 December 2024 and these financial statements may be obtained from 3-5 Huxley Close, Wellingborough, Northamptonshire, NN8 6AB.
The financial statements have been prepared on a going concern basis, which assumes that the Company will be able to meet all its obligations as and when they fall due for the foreseeable future.
The directors have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. Whilst the wider economic outlook is mixed, the Company is well placed in a sector where demand of IT products and services remains high. Having considered various potential downside scenarios the Board are confident that the Company has the ability to continue to trade as a going concern enterprise. At the year end, the Company had net current assets of c.£5.4m. The Company's day to day working capital requirements are further supported through access to an overdraft facility. Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and accounts.
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MISCO TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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MISCO TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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MISCO TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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.
The estimated useful lives range as follows:
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:
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.
Given that the lives of the Company's freehold properties are so long and that they are maintained to such a high standard, it is the opinion of the directors that the residual values would be sufficiently high to make any depreciation charge immaterial. The directors perform annual impairment reviews in accordance with the requirements of FRS102 to ensure that the recoverable amount is not lower than the carrying value.
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MISCO TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased
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.
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MISCO TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The depreciation of fixed assets is an area of significant estimation and is based on the directors estimate of the useful economic life of the assets, after making due allowance for any residual value.
Analysis of turnover by country of destination:
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MISCO TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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MISCO TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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MISCO TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
10.Taxation (continued)
There were no factors that may affect future tax charges.
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MISCO TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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MISCO TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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MISCO TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 26
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MISCO TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Capital redemption reserve
Profit and loss account
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MISCO TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
During the year the Company has entered into an unlimited multilateral guarantee with the other members of the Group headed up by Comet Group Limited.
PAYE Compliance Check On 11 July 2024, HMRC initiated a PAYE compliance check in relation to a partnership agreement between the Company and UKCG & Partners LLP, which operated between June 2021 and December 2022. Although the Company paid all taxes as they became due, there is a possibility that HMRC may seek to recalculate the taxes owed by treating the partner members of the LLP as employees during this period, effectively reversing the partnership agreement. As of the date of signing these financial statements, no specific legal argument or tax legislation has been identified by HMRC that has not been complied with. Relying on the professional advice of Optimal Compliance when setting up the LLP structure, the Company has been advised that it has been fully compliant with applicable tax law. Should HMRC successfully reverse the LLP arrangement, the tax liability, including interest, is estimated at £697,000 as at 1 September 2024. The estimated liability assumes that the entire LLP arrangement would be reversed, and interest would be charged at HMRC rates. No penalties are assumed in the estimation. At present, there is no clear indication as to when this matter will be resolved, as HMRC's review is ongoing. The Company has not recognised a provision for this liability in the financial statements as it is currently considered a possible, rather than probable, obligation. No other events after the balance sheet date affect this disclosure.
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. Contributions totalling £26,738 (2023 - £Nil) were payable to the fund at the balance sheet date.
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MISCO TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company's immediate and ultimate parent undertaking is The Misco Group Limited, a company incorporated in England and Wales.
The Company is ultimately controlled by G Watson, by virtue of his shareholding in The Misco Group Limited.
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