Company registration number SC365033 (Scotland)
M & F FUNERAL SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 25 SEPTEMBER 2025
M & F FUNERAL SERVICES LIMITED
COMPANY INFORMATION
Directors
Mrs R B Lees
Mr R T Givan
Secretary
Mrs R Lees
Company number
SC365033
Registered office
Babs Court
4 Shorthope Street
Musselburgh
East Lothian
EH21 7DB
Auditor
Thomson Cooper
3 Castle Court
Carnegie Campus
Dunfermline
Fife
KY11 8PB
M & F FUNERAL SERVICES LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Independent auditor's report
5 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
M & F FUNERAL SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 25 SEPTEMBER 2025
- 1 -

The directors present the strategic report for the year ended 25 September 2025.

Fair review of the business

The principal activity of the company during the year continued to be that of a funeral director and funeral plan provider.

This year has proved to be another strong year of trading as shown in the financial results reported below.

M&F Funeral Services Ltd trading performance reflects the number of funerals carried out in the year to 30 September 202 5.

Outlook

The company will continue to invest in its business in 202 6.

The financial year 2025 may see an increase in expenditure as a result of:

- Continued increase in energy costs.

- Increase staff costs due to recruitment

- Compliance with Scottish Government Funeral Direct Code Of Practice.

Principle risks and uncertainties

The directors are ultimately responsible for the system of internal control, which covers all aspects of the business, and for reviewing its effectiveness. However, any such system is designed to manage, rather than eliminate, the risk of failure to achieve the company's objectives. Therefore any system is only able to provide reasonable, and not absolute assurance against material misstatement or loss. The directors regularly review the risks to which the company is exposed, as well as the operation and effectiveness of the system of internal controls. This is an ongoing process, involving the identification, evaluation and management of the significant risks faced by the group.

Risks are assessed on a regular basis across all areas but, in particular, health and safety, information flow, asset protection and regulatory requirements.

M & F FUNERAL SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 25 SEPTEMBER 2025
- 2 -

Risk and impact | Mitigations
Market Risk
Competition The company faces competition from other firms operating within our target locations. Failure to react to market pricing could result in business being lost to our competitors. Failure to meet or exceed our customers’ expectations could result in a loss of customers and income. | The company monitors demand and pricing on a regular basis and reacts as necessary. The company is continually working to improve customers’ experience. The company monitors funeral customers’ feedback and reacts as required.
Operational Risks
Health & Safety A major health & safety incident at one or more of our properties could result in the closure of operations, suppressed income, reputational damage and extra costs. | Completion of health & safety training is monitored by the Board.
Regulatory Compliance The company is exposed to FCA compliance for the provision of Funeral Plans in addition to compliance in other areas such as health & safety, taxation, data protection. There is a risk of fines, operational difficulties, rectification costs and reputational damage | The company performs regular compliance reviews as part of risk management and actions are monitored at board level.
Staffing The company would suffer operational difficulties and reputational damage if it were unable to recruit and retain the best staff to run the business | The company monitors market pay rates to ensure it is competitive in the recruitment market. T he company invests in training and benefits to maintain a good level of staff retention.
Financial Risks
Liquidity The business would not be able to operate if it ran out of cash and would risk creditor actions | The company regularly monitors its cashflow forecast.

Key performance indicators

The key financial indicators used by the directors are detailed below:

| 202 5 | 202 4 | 20 23
| £’000 | £’000 | £’000
Turnover | 1,058 | 1,237 | 1,106
Gross Profit | 641 | 774 | 677
Operating Profit/(Loss) | 98 | 227 | 287

M & F FUNERAL SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 25 SEPTEMBER 2025
- 3 -

On behalf of the board

Mr R T Givan
Director
1 June 2026
M & F FUNERAL SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 25 SEPTEMBER 2025
- 4 -

The directors present their annual report and financial statements for the year ended 25 September 2025.

Principal activities

The principal activity of the company was that of a funeral directors.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £130,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mrs R B Lees
Mr R T Givan
Auditor

In accordance with the company's articles, a resolution proposing that Thomson Cooper be reappointed as auditor of the company will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Strategic report

The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the principal activities, business review and principal risks and uncertainties of the company.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr R T Givan
Director
1 June 2026
M & F FUNERAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF M & F FUNERAL SERVICES LIMITED
- 5 -
Opinion

We have audited the financial statements of M & F Funeral Services Limited (the 'company') for the year ended 25 September 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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).

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 25 September 2025 and of its profit for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

- the information given in the strategic report and the directors' r eport 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.

M & F FUNERAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF M & F FUNERAL SERVICES LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport.

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

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of directors' remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: existence and timing of recognition of income, posting of unusual journals along with complex transactions and non-compliance with laws and regulations including those governed by the Financial Conduct Authority (FCA). We discussed these risks with management, designed audit procedures to test the timing and existence of revenue, tested a sample of journals to confirm they were appropriate and enquired of officers and directors and reviewed correspondence with the FCA of any reference to breaches of laws and regulations.

We also reviewed the laws and regulations in areas that directly affect the financial statements including applicable company law and considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.

With the exception of any known or possible non-compliance with relevant and significant laws and regulations, and as required by the auditing standards, our work in respect of these was limited to enquiry of the officers and management of the company.

We communicated identified laws and regulations and potential fraud risks throughout our team and remained alert to any indications of non-compliance or fraud throughout the audit. However the primary responsibility for the prevention and detection of fraud rests with the director.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

M & F FUNERAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF M & F FUNERAL SERVICES LIMITED
- 7 -

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 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.

Sharon Collins (Senior Statutory Auditor)
For and on behalf of Thomson Cooper, Statutory Auditors
Dunfermline
9 June 2026
M & F FUNERAL SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 25 SEPTEMBER 2025
- 8 -
2025
2024
Notes
£
£
Turnover
2
1,058,204
1,236,780
Cost of sales
(417,078)
(462,380)
Gross profit
641,126
774,400
Administrative expenses
(543,236)
(547,146)
Operating profit
3
97,890
227,254
Interest receivable and similar income
5
1,406
3,356
Interest payable and similar expenses
6
(8,251)
(8,154)
Profit before taxation
91,045
222,456
Tax on profit
7
(22,761)
(54,603)
Profit for the financial year
68,284
167,853

The profit and loss account has been prepared on the basis that all operations are continuing operations.

M & F FUNERAL SERVICES LIMITED
BALANCE SHEET
AS AT 25 SEPTEMBER 2025
25 September 2025
- 9 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
9
383,629
443,370
Current assets
Stocks
10
29,926
32,062
Debtors
11
38,713
35,744
Cash at bank and in hand
70,726
181,320
139,365
249,126
Creditors: amounts falling due within one year
12
(247,856)
(312,147)
Net current liabilities
(108,491)
(63,021)
Total assets less current liabilities
275,138
380,349
Creditors: amounts falling due after more than one year
13
(3,758)
(31,949)
Provisions for liabilities
(20,542)
(35,846)
Net assets
250,838
312,554
Capital and reserves
Called up share capital
16
100
100
Profit and loss reserves
250,738
312,454
Total equity
250,838
312,554
The financial statements were approved by the board of directors and authorised for issue on 1 June 2026 and are signed on its behalf by:
Mr R T Givan
Director
Company Registration No. SC365033
M & F FUNERAL SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 25 SEPTEMBER 2025
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 26 September 2023
100
244,601
244,701
Year ended 25 September 2024:
Profit and total comprehensive income
-
167,853
167,853
Dividends
8
-
(100,000)
(100,000)
Balance at 25 September 2024
100
312,454
312,554
Year ended 25 September 2025:
Profit and total comprehensive income
-
68,284
68,284
Dividends
8
-
(130,000)
(130,000)
Balance at 25 September 2025
100
250,738
250,838
M & F FUNERAL SERVICES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 25 SEPTEMBER 2025
- 11 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
169,546
281,536
Interest paid
(8,251)
(8,154)
Income taxes paid
(63,269)
(4,827)
Net cash inflow from operating activities
98,026
268,555
Investing activities
Purchase of tangible fixed assets
(22,428)
(24,104)
Interest received
1,406
3,356
Net cash used in investing activities
(21,022)
(20,748)
Financing activities
Payment of finance leases obligations
(57,598)
(73,001)
Dividends paid
(130,000)
(100,000)
Net cash used in financing activities
(187,598)
(173,001)
Net (decrease)/increase in cash and cash equivalents
(110,594)
74,806
Cash and cash equivalents at beginning of year
181,320
106,514
Cash and cash equivalents at end of year
70,726
181,320
M & F FUNERAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 25 SEPTEMBER 2025
- 12 -
1
Accounting policies
Company information

M & F Funeral Services Limited is a private company limited by shares incorporated in Scotland. The registered office is Babs Court, 4 Shorthope Street, Musselburgh, East Lothian, EH21 7DB.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. T he company has therefore taken advantage of e xemptions from the following disclosure requirements:

- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

1.2
Going concern

At the time of approving the financial statements the directors consider that the company has adequate resources to continue in operational existence for a period of not less than twelve months. The directors have reviewed the cashflow requirements and are satisfied that the company has sufficient cash reserves and as such continue to adopt the going concern basis of accounting in preparing the financial statements.true

1.3
Turnover

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

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

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

M & F FUNERAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 25 SEPTEMBER 2025
1
Accounting policies
(Continued)
- 13 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
20 Straight Line
Motor vehicles
10% - 20% Straight Line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

M & F FUNERAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 25 SEPTEMBER 2025
1
Accounting policies
(Continued)
- 14 -
1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

M & F FUNERAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 25 SEPTEMBER 2025
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are s ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value th r ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

M & F FUNERAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 25 SEPTEMBER 2025
1
Accounting policies
(Continued)
- 16 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

2
Turnover and other revenue
2025
2024
£
£
Turnover
1,058,204
1,236,780
2025
2024
£
£
Other revenue
Interest income
1,406
3,356
M & F FUNERAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 25 SEPTEMBER 2025
- 17 -
3
Operating profit
2025
2024
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
33,114
29,897
Depreciation of tangible fixed assets held under finance leases
49,055
48,019
4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2025
2024
Number
Number
11
14

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
251,726
265,786
Social security costs
27,222
24,941
Pension costs
2,995
2,222
281,943
292,949

The key management personnel are considered to be the directors of the company and the funerals manager. The directors received no remuneration in the year therefore the key management compensation received by the funerals manager is £54,807 (202 4 - £48,833).

5
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest on bank deposits
1,406
3,356
6
Interest payable and similar expenses
2025
2024
£
£
Interest on finance leases and hire purchase contracts
8,251
8,154
7
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
38,065
63,269
M & F FUNERAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 25 SEPTEMBER 2025
7
Taxation
2025
2024
£
£
(Continued)
- 18 -
Deferred tax
Origination and reversal of timing differences
(15,304)
(8,666)
Total tax charge
22,761
54,603

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Profit before taxation
91,045
222,456
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
22,761
55,614
Tax effect of expenses that are not deductible in determining taxable profit
-
0
(1,011)
Permanent capital allowances in excess of depreciation
15,304
8,666
Deferred tax
(15,304)
(8,666)
Taxation charge for the year
22,761
54,603
8
Dividends
2025
2024
£
£
Final paid
130,000
100,000
9
Tangible fixed assets
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 26 September 2024
34,848
569,663
604,511
Additions
1,710
20,718
22,428
At 25 September 2025
36,558
590,381
626,939
Depreciation and impairment
At 26 September 2024
5,498
155,643
161,141
Depreciation charged in the year
7,198
74,971
82,169
At 25 September 2025
12,696
230,614
243,310
M & F FUNERAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 25 SEPTEMBER 2025
9
Tangible fixed assets
Fixtures and fittings
Motor vehicles
Total
£
£
£
(Continued)
- 19 -
Carrying amount
At 25 September 2025
23,862
359,767
383,629
At 25 September 2024
29,350
414,020
443,370

Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:

2025
2024
£
£
Motor vehicles
327,028
355,365
10
Stocks
2025
2024
£
£
Finished goods and goods for resale
29,926
32,062
11
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
20,624
12,970
Amounts owed by group undertakings
138
138
Other debtors
994
5,679
Prepayments and accrued income
16,957
16,957
38,713
35,744
M & F FUNERAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 25 SEPTEMBER 2025
- 20 -
12
Creditors: amounts falling due within one year
2025
2024
£
£
Obligations under finance leases
50,560
81,498
Trade creditors
46,059
54,314
Corporation tax
38,065
63,269
Other taxation and social security
-
0
4,028
Other creditors
55,891
25,291
Accruals and deferred income
57,281
83,747
247,856
312,147

The Royal Bank of Scotland Plc held floating charges dated 14th July 2020 over all property and undertakings of the company. This was satisfied on 17 January 2025.

13
Creditors: amounts falling due after more than one year
2025
2024
£
£
Obligations under finance leases
3,758
31,949
14
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
20,542
35,846
2025
Movements in the year:
£
Liability at 26 September 2024
35,846
Credit to profit or loss
(15,304)
Liability at 25 September 2025
20,542
M & F FUNERAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 25 SEPTEMBER 2025
- 21 -
15
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
2,995
2,222

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

16
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
100
100
100
100
17
Operating lease commitments
As lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2025
2024
£
£
Within 1 year
72,000
72,000
Years 2-5
272,160
320,160
After 5 years
61,920
85,920
406,080
478,080
18
Ultimate controlling party

The parent company of M & F Funeral Services Limited is M & F (Scotland) Limited and its registered office is is Babs Court, 4 Shorthope Street, Musselburgh, East Lothian, EH21 7DB.

M & F FUNERAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 25 SEPTEMBER 2025
- 22 -
19
Cash generated from operations
2025
2024
£
£
Profit after taxation
68,284
167,853
Adjustments for:
Taxation charged
22,761
54,603
Finance costs
8,251
8,154
Investment income
(1,406)
(3,356)
Depreciation and impairment of tangible fixed assets
82,169
77,916
Movements in working capital:
Decrease/(increase) in stocks
2,136
(4,989)
Increase in debtors
(2,969)
(17,052)
Decrease in creditors
(9,680)
(1,593)
Cash generated from operations
169,546
281,536
20
Analysis of changes in net funds
26 September 2024
Cash flows
25 September 2025
£
£
£
Cash at bank and in hand
181,320
(110,594)
70,726
Lease liabilities
(111,916)
57,598
(54,318)
69,404
(52,996)
16,408
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