MTD_(UK_&_IRELAND)_LTD - Accounts

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime of the Companies Act 2006.

MTD (UK & Ireland) Ltd is a private company limited by shares incorporated in England and Wales. The registered office is given in the company information page.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts 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.

The financial statements have been prepared under the going concern basis. Please see note 8 for additional disclosure around going concern. true

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

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

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:

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.

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

Cash at bank and in hand include 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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

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.

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

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

As referred to within the company's accounting policies, the stage of completion of construction and long term contracts is key in determining the revenue and costs to be recognised on projects. This is monitored regularly and accounted for in line with the requirements of FRS102.

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

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report in respect of these accounts was signed on 17 September 2021 and was unqualified, The Senior Statutory Auditor was Charlotte Toemaes BSc FCA of Ellacotts Audit Services Limited.

The audit report contained the following paragraph:

Material uncertainty relating to going concern

We draw attention to note 8 (note 9 in these accounts) in the financial statements which indicates that the company incurred a net loss of £537,537 during the year ended 31 December 2020, and, as of that date, the company’s current liabilities exceeded its total assets by £2,128,081. As stated in note 8 (note 9 in these accounts) these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter

The company incurred a net loss for the year ended 31 December 2020 of £537,537, and, as of that date, the company’s current liabilities exceeded its total assets by £2,128,081.

The parent undertaking, MTD Holdings B.V., has committed to support the company for a period of at least 24 months from January 2021.

The COVID-19 crisis that unexpectedly broke out in March 2020 has had an enormous impact on the events sector as a whole and the company and the group of which it forms part in particular.

For 2020, the Group was initially expecting a turnover in the region of 30m Euros, of which approximately 10m Euros would relate to the Olympic games in Japan. This turnover almost completely disappeared due to the outbreak of Covid 19.

Cash flow across the group is managed on a daily basis. A forecast has been made for the coming months up to and including the end of 2022. The cash flow forecast remains highly uncertain – partly due to the COVID-19 market conditions.

These circumstances indicate the existence of a material uncertainty that could lead to serious doubts about the going concern assumption.

The above mentioned circumstances mean that, for its continuity, the group depends on the cooperation of third parties and highly uncertain market conditions and developments. The group continues to monitor national and international developments regarding COVID-19 closely, including the extension of Government support offered in countries in which the Group operates, specifically for the events sector. With decisive continuation of the implemented policy/measures, continuous monitoring, exploring new opportunities, the government support, confidence in the future and continuity of the Group, the financial statements made been made on the basis of the going concern assumption.

At the reporting date the company has outstanding lease commitments for future minimum lease payments under non-cancellable operating leases of £450,773 (2019: £1,625,840). The lease commitment for 2019 had been disclosed based on the total length of the leases. The 2020 disclosure has been disclosed based on the length of the leases up to any break points contained within.

In connection with the main operating lease there is a charge registered at Companies House dated 8 December 2011 over the assets of the company.

No transactions with related parties were undertaken such as are required to be disclosed under FRS102 Section 1A.

The immediate parent undetaking is MTD Holding B.V. a company incorporated in the Netherlands. Copies of the financial statements of MTD Holding B.V. are available from MTD Nederland B.V Clara Zetkinweg 4, 5032 ML, Tilburg, The Netherlands.

The ultimate parent company is Frontinus Holding B.V. a company incorporated in the Netherlands. Frontinus Holding B.V. is the ultimate parent undertaking of the smallest and largest group of undertakings for which group accounts are drawn up and of which the company is a member. Copies of the consolidated financial statements of Frontinus Holding B.V. are available from MTD Netherland B.V. Clara Zetkinweg 4, 5032 ML, Tilburg, The Netherlands.