McManus Group Holdings Limited - Limited company accounts 23.2
McManus Group Holdings Limited - Limited company accounts 23.2
| REGISTERED NUMBER: 09802071 (England and Wales) |
| Group Strategic Report, Report of the Directors and |
| Consolidated Financial Statements for the Year Ended 31 May 2023 |
| for |
| McManus Group Holdings Limited |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Contents of the Consolidated Financial Statements |
| for the Year Ended 31 May 2023 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 5 |
| Report of the Independent Auditors | 9 |
| Consolidated Statement of Comprehensive Income | 12 |
| Consolidated Balance Sheet | 14 |
| Company Balance Sheet | 15 |
| Consolidated Statement of Changes in Equity | 16 |
| Company Statement of Changes in Equity | 17 |
| Consolidated Cash Flow Statement | 18 |
| Notes to the Consolidated Cash Flow Statement | 19 |
| Notes to the Consolidated Financial Statements | 20 |
| McManus Group Holdings Limited |
| Company Information |
| for the Year Ended 31 May 2023 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| 5 Westbrook Court |
| Sharrowvale Road |
| Sheffield |
| South Yorkshire |
| S11 8YZ |
| BANKERS: | HSBC Bank Plc |
| 33 Park Row |
| Leeds |
| West Yorkshire |
| LS1 1LD |
| SOLICITORS: |
| Yorkshire House |
| East Parade |
| Leeds |
| West Yorkshire |
| LS1 5BD |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Group Strategic Report |
| for the Year Ended 31 May 2023 |
| The directors present their strategic report of the company and the group for the year ended 31 May 2023. |
| FAIR REVIEW OF BUSINESS |
| The operating results for the year and the financial position at the year end were considered satisfactory by the directors. |
| The trading performance was in line with the budget the directors had set for the year. |
| The KPI's presented here are part of the much wider reporting framework focused on individual contract performance that enables the directors to understand the development, performance and position of the Group. |
| Turnover £71.7m (2022 - £70.7m) an increase of 1.5% |
| Operating profit £7.2m (2022 - £9.4m) 10.0% of turnover (2022 - 13.3% of turnover) |
| Increase in cash £0.6m (2022 - £1.0m) |
| Shareholder funds £46.0m (2022 - £41.0m) |
| Whilst the above are the main performance indicators, the directors regularly monitor a range of other measures in order to assess the company's performance. |
| Due to commercial sensitivity of individual contracts, and recognising the company's ultimately privately owned status, the directors are of the opinion that it is not appropriate to disclose further details of these indicators. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The key business risks and uncertainties affecting the group are considered to relate to competition and market forces in the industry. |
| The performance of the long term contracts is subject to future costs to completion which can vary widely from initial assessment due to their unpredictable nature. For this reason, this is a major risk area for the Group, hence the stringent and prudent profit recognition policy is applied. |
| PROMOTING THE SUCCESS OF THE COMPANY |
| In accordance with section 172 of the Companies Act 2006, each of our directors acts in the way he considers, in good faith would promote the success of the group for the benefit of its members as a whole. The directors have taken into consideration, amongst other matters: |
| - the likely consequences of any decisions in the long-term; |
| - the interests of the group's employees; |
| - the need to foster the group's business relationships with suppliers, customers and others; |
| - the impact of the group's operations on the community and environment; |
| - the desirability of the group maintaining a reputation for high standards of business conduct; |
| - and the need to act fairly between members of the group. |
| The Board acknowledges that every decision it makes will not necessarily result in a positive outcome for all of the Group's stakeholders. By considering the Group's purpose, vision and values, together with its strategic priorities and having a process in place for decision making the Board does however, aim to make sure that its decisions are consistent. |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Group Strategic Report |
| for the Year Ended 31 May 2023 |
| STAKEHOLDER ENGAGEMENT |
| The Board believe that considering our stakeholders in key business decisions is not only the right thing to do, but is fundamental to our ability to drive value creation. The Board seeks to understand the respective interest of such stakeholder groups by direct engagement by Board members. The directors consider the following to be the Group's key stakeholders: |
| Employees |
| The strength of our business is built on the hard work and dedication of our employees. The Board recognises that the implementation of an effective people strategy and strong culture underpin the effective delivery of the group strategy. |
| Employees are kept informed on performance and strategy through regular management briefings and updates from members of the Board. The directors attend key business meetings throughout the year. The group has an open door policy in which employees are able to raise any concerns, with senior management including MD. |
| Key focus of the Board includes employee health and well-being, personal development, pay and benefits. |
| Customers |
| The profitability of the business is underpinned by providing effective partnerships with customers to understand their needs and requirements. In recognition of this, a core principle of the business is to be customer centric, building relationships providing a high level of service through the expert knowledge of our employees and ensuring a quality product. |
| The Board receives regular updates on customer opinion, behaviour and feedback. The insight received is used to inform decision making, understand customer needs and views in order to improve our offer and service for them. |
| Suppliers |
| The Board recognises that relationships with suppliers are important to the Group's long-term success and is briefed on supplier feedback and issues on a regular basis. The Board seeks to balance the benefit of maintaining these strong relationships along with the need to obtain value for money for our investors and desired quality and service for our customers. Engagement with suppliers is primarily through our Group procurement function. Key areas of focus include innovation, product development, health and safety and sustainability. |
| Communities |
| The Board supports the initiatives with regards to reducing the adverse impacts on the environment and engages with communities in which we operate. Key areas of focus include how we can support local causes and issues, create opportunities to recruit and develop local people and help to look after the environment. We partner with local charities at a site level to raise awareness and funds. The key issues and themes across local communities are reported back to the Board. |
| Government and regulations |
| We engage with the government and regulators through a range of industry consultations, forums, and meetings to communicate our views to policy makers relevant to our business. Key areas of focus are compliance with laws and regulations, health and safety and product safety. The Board is updated on legal and regulatory developments and takes these into account when considering future actions. |
| Investors |
| The Group relies on our stakeholders and providers of debt funding as essential sources of capital to further our business objectives. The group has open dialogue with all investors through regular meetings which cover a wide range of topics including financial performance, strategy, outlook and governance. |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Group Strategic Report |
| for the Year Ended 31 May 2023 |
| ON BEHALF OF THE BOARD: |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Report of the Directors |
| for the Year Ended 31 May 2023 |
| The directors present their report with the financial statements of the company and the group for the year ended 31 May 2023. |
| PRINCIPAL ACTIVITY |
| The principal activity of the group in the year under review was that of building and civil engineering contractors. |
| DIVIDENDS |
| The results for the year are set out on page 12. |
| Ordinary dividends were paid by the group to shareholders, including non-controlling interests, amounting to £618,199. The directors do not recommend payment of a further dividend. |
| FUTURE DEVELOPMENTS |
| The external commercial environment is expected to remain competitive in 2023/24. However, the directors are confident that the group's future prospects are very good. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 June 2022 to the date of this report. |
| STREAMLINED ENERGY AND CARBON REPORTING |
| This Streamlined Energy and Carbon Report ("SECR") relates to activities of Moortown Group Limited for the financial year 1st June 2022 - 31st May 2023. |
| Moortown Group Ltd | Total Current Year | Total Prior Year |
| 1st June 2022 - 31st May 2023 | Units | 2022-23 | 2021-22 |
| Total Energy Consumption | MWh / yr | 14,288 | 10,307 |
| Fuel for site plant | 9,436 | 7,155 |
| Fuel for fleet transport [1] | 4,659 | 2,966 |
| Purchased electricity (office & depot) [2] | 193 | 186 |
| Total Emissions (gross annual) | t CO2e /yr | 4,579 | 2,791 |
| Scope 1 emissions (direct emissions) |
| Fuel* | 4,438 | 2,748 |
| Gas | 100 | 0 |
| Scope 2 emissions (energy indirect) |
| Electricity | 38 | 39 |
| Scope 3 emissions (other indirect) |
| Business Travel (category 6) | 0 | 0 |
| Electricity (T&D losses) (category 4) | 3 | 4 |
| Operations metrics (in period) |
| Turnover in period | £'M / yr | 67.1 | 66.6 |
| Av No. of direct employees | No. | 91 | 115 |
| Av No. of self-employed workers | No. | 454 | 375 |
| Intensity ratios |
| Total Emissions / Staff | t CO2e / FTE | 8.4 | 5.7 |
| Total Emissions / Turnover | t CO2e / £'M | 68.2 | 41.9 |
| Total Energy Consumed / Turnover | MWh / £'M | 213 | 155 |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Report of the Directors |
| for the Year Ended 31 May 2023 |
| Notes to table |
| [1] Energy use and attributed emission for the fleet transport fuel includes the fuel used by related entities Excel Surfacing Ltd, Leeds Acro Ltd and Panther Construction Products Ltd. Fuel supplied to an un-related entity (V&A Property) is not included. |
| [2] Electricity supplied was non-half-hourly on a Fixed Business plan agreed directly with Eon and is classified by the supplier as "100% renewable". Electricity consumed was further offset by onsite solar pv generation. No allowance has been made for electricity sold back to grid, but indirect emission for upstream losses from the distribution and transmission of electricity have been included. |
| [3] Staff numbers used for KP purposes is the sum of direct employees and self-employed workers. |
| Qualification and reporting methodology |
| 1. Approach: This report has been prepared by Compliance365 on behalf of Moortown Group Ltd to comply with The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018. The report follows the Mar 2019 HM Government Environmental Reporting Guidelines and uses the latest Government Conversion factors for company reporting of greenhouse gas emission. |
| 2. Description: The scope for this SECR disclosure includes the business activities of Moortown Group Ltd assessed in three categories: i) site fuel use, ii) fuel used to related staff/employee travel (private vehicle and public transport), and iii) electricity supplied to the main office. |
| 3. Scope: A SECR assessment comprises three Scopes; |
| Scope 1 (Direct emission, Mandatory): Activities owned or controlled by your organisation that release emissions straight into the atmosphere. They are direct emissions. Examples of scope 1 emissions include emissions from combustion in owned or controlled boilers, furnaces, vehicles; emissions from refrigerant (F gases) in owned or controlled equipment. |
| Scope 2 (Energy indirect Mandatory): Emissions being released into the atmosphere associated with your consumption of purchased electricity, heat, steam |
| and cooling. These are indirect emissions that are a consequence of Moortown Group Ltd activities, but which occur at sources you do not own or control. |
| Scope 3 (Other indirect, Discretionary*): Emissions that are a consequence of your business activities which occur at sources which you do not own or control and which are not classed as scope 2 emissions. Examples of scope 3 emissions are business travel by means not owned or controlled by your organisation, waste disposal, or purchased materials or fuels. Carbon dioxide produced from the combustion of biomass / biofuels should be reported separately to emissions in scopes 1, 2, and 3. Carbon dioxide produced from biomass / biofuels not as a result of the combustion of biomass / biofuels (e.g., industrial fermentation) should be reported within the scopes. |
| This report details how Moortown Group Ltd has complied with Scopes 1 and 2 of the methodology over the financial year June 2022 to May 2023. It also reports emissions associated with Category 4 & 6 for Scope 3. |
| Intensity measurement |
| 4. Primary metrics: The chosen intensity measure represents the total gross greenhouse gas emissions (tonnes of CO2 equivalent) per average number of employees within the period. |
| a. Emissions per employee 8.4 t CO2e / employee (5.7) |
| b. Emissions per million pounds of turnover 68.2 t CO2e / £’M (41.9) and more energy (and resulting emission) from each site on average. |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Report of the Directors |
| for the Year Ended 31 May 2023 |
| c. This improvement can be attributed to the reduction in emission from site plant but also to the reduced emissions from the fleet fuel use, in part attributed to wider adoption of hybrid electric vehicles office and site management staff. |
| 5. Carbon Reduction Drive |
| Below details the measures Moortown Group Ltd have taken over the past 12 months to reduce their energy consumption and carbon emissions. There has been a focus on reducing their carbon footprint with the below presenting the achievements across the campuses. |
| Utilities |
| Moortown Group currently purchase from a Green Electricity Contract with REGO certificates. The Renewable Energy Guarantees of Origin (REGO) scheme provides transparency to the consumers about the proportion of electricity that suppliers source from renewable generation. In Moortown Groups case, this was stipulated to being 100%. As a result, Moortown Group can report their SECR emissions utilising both the Location and Market based approach to take advantage of their REGO electricity procurement. |
| Environment |
| Moortown is committed to the prevention of pollution, compliance with all relevant environmental legislation and regulations, and continual improvement of our management system and environmental performance. Our Environmental policy is regularly reviewed to ensure that it is compatible with the targets and objectives identified from consideration of the environmental aspects of the Company’s operations. We are committed to: |
| - Reducing waste and consumption of resources. |
| - Reducing or where possible eliminating incidents of pollution. |
| - Complying with applicable legal and other requirements related to our environmental aspects. |
| - Ensuring that environmental issues, objectives and targets are communicated and reviewed at appropriate points across the organisation. |
| - Actively seeking and encouraging feedback from the ‘grass roots’ level on problem areas and new initiatives. |
| - Providing the appropriate level of training to all our staff. |
| To date we have actively looked to reduce our emissions by: |
| - Submetering for office, workshops, EV charging and air conditioning should be considered. |
| - Fuel being supplied to each site should be recorded separately and reported against a site specific "carbon budget". |
| - Introducing Electric hybrid EV’s which have been adopted by a significant number of staff. |
| - Purchasing our electricity through a Green Energy Tariff with REGO certificates. |
| Following the calculation of this year’s carbon emissions, there has been a 147% increase against last years reported figures and a 115% saving against the original baseline. This is thought to be due to the uptake in works completed following the COVID-19 Global pandemic and the growth in the business over the past 4 years which can be seen from the increase in Full Time Employees. |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Report of the Directors |
| for the Year Ended 31 May 2023 |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and 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. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
| AUDITORS |
| The auditors, Sutton McGrath Hartley, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| McManus Group Holdings Limited |
| Opinion |
| We have audited the financial statements of McManus Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, 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). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the group's and of the parent company affairs as at 31 May 2023 and of the group's 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 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 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 group's and 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. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| 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. |
| In connection with our audit of the financial statements, 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 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 the audit: |
| - | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| Report of the Independent Auditors to the Members of |
| McManus Group Holdings Limited |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the parent company financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page eight, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| Our assessment of the susceptibility to material misstatement, whether by fraud or error, is made in a risk based approach. |
| In this approach, laws and regulations applicable to the entity, such as the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice including Financial Reporting Standard 102, the relevant tax compliance regulations within the UK, employment law, and Health and Safety law is considered, and the policies and controls the entity has in place to comply with these laws are reviewed, by discussion, reviews of correspondence and registrations monitored by external bodies. The engagement team remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
| Policies and controls relating to the risk of material misstatement as a result of fraud are also considered. These are assessed by obtaining an understanding of the company's operations and control environment. The policies and controls have been reviewed by discussion, review and sample testing of accounting entries, challenging assumptions and judgements, reviewing and evaluating related parties transactions, and wider background searches. Testing of income recognition and cut off, carrying value of assets, and consolidation adjustments is also completed. |
| We have ensured that the engagement team have appropriate levels of competence and experience to effectively monitor these risks and carry out work relevant to our assessment of each risk, including consideration of the industry the company operates in and its size and complexity. |
| 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 Report of the Auditors. |
| Report of the Independent Auditors to the Members of |
| McManus Group Holdings Limited |
| Other matters which we are required to address |
| The financial statements for the prior period were audited by the predecessor auditor, BHP LLP. The prior period audit report was unqualified and dated 13 January 2023. |
| 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 a Report of the Auditors 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 |
| 5 Westbrook Court |
| Sharrowvale Road |
| Sheffield |
| South Yorkshire |
| S11 8YZ |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Consolidated |
| Statement of Comprehensive |
| Income |
| for the Year Ended 31 May 2023 |
| 2023 | 2022 |
| Notes | £ | £ | £ | £ |
| TURNOVER | 3 | 71,698,227 | 70,655,107 |
| Cost of sales | 57,412,593 | 54,022,031 |
| GROSS PROFIT | 14,285,634 | 16,633,076 |
| Distribution costs | 251,749 | 150,180 |
| Administrative expenses | 7,195,292 | 6,995,424 |
| 7,447,041 | 7,145,604 |
| 6,838,593 | 9,487,472 |
| Other operating income | 355,200 | (101,600 | ) |
| OPERATING PROFIT | 5 | 7,193,793 | 9,385,872 |
| Interest receivable and similar income | 405,519 | 187,963 |
| 7,599,312 | 9,573,835 |
| Gain/loss on revaluation of investments | 13,656 | 68,186 |
| 7,612,968 | 9,642,021 |
| Interest payable and similar expenses | 7 | 263,272 | 221,654 |
| PROFIT BEFORE TAXATION | 7,349,696 | 9,420,367 |
| Tax on profit | 8 | 1,762,146 | 1,971,878 |
| PROFIT FOR THE FINANCIAL YEAR |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
5,587,550 |
7,448,489 |
| Profit attributable to: |
| Owners of the parent | 5,484,728 | 7,131,320 |
| Non-controlling interests | 102,822 | 317,169 |
| 5,587,550 | 7,448,489 |
| Total comprehensive income attributable to: |
| Owners of the parent | 5,484,728 | 7,131,320 |
| Non-controlling interests | 102,822 | 317,169 |
| 5,587,550 | 7,448,489 |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Consolidated |
| Statement of Comprehensive |
| Income |
| for the Year Ended 31 May 2023 |
| 2023 | 2022 |
| £ | £ |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Consolidated Balance Sheet |
| 31 May 2023 |
| 2023 | 2022 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 11 | 3,115,163 | 3,456,544 |
| Tangible assets | 12 | 14,253,072 | 13,363,012 |
| Investments | 13 | 7,338,338 | 6,313,893 |
| Investment property | 14 | 974,549 | 974,549 |
| 25,681,122 | 24,107,998 |
| CURRENT ASSETS |
| Stocks | 15 | 249,779 | 244,671 |
| Debtors | 16 | 31,728,157 | 29,959,893 |
| Cash at bank and in hand | 11,002,521 | 10,386,764 |
| 42,980,457 | 40,591,328 |
| CREDITORS |
| Amounts falling due within one year | 17 | 18,851,502 | 19,853,134 |
| NET CURRENT ASSETS | 24,128,955 | 20,738,194 |
| TOTAL ASSETS LESS CURRENT LIABILITIES | 49,810,077 | 44,846,192 |
| CREDITORS |
| Amounts falling due after more than one year |
18 |
(2,240,122 |
) |
(2,977,544 |
) |
| PROVISIONS FOR LIABILITIES | 21 | (1,587,568 | ) | (855,612 | ) |
| NET ASSETS | 45,982,387 | 41,013,036 |
| CAPITAL AND RESERVES |
| Called up share capital | 22 | 10,000 | 10,000 |
| Merger relief reserve | 23 | 9,814,498 | 9,814,498 |
| Retained earnings | 23 | 36,326,060 | 31,162,362 |
| SHAREHOLDERS' FUNDS | 46,150,558 | 40,986,860 |
| NON-CONTROLLING INTERESTS | 24 | (168,171 | ) | 26,176 |
| TOTAL EQUITY | 45,982,387 | 41,013,036 |
| The financial statements were approved by the Board of Directors and authorised for issue on 8 November 2023 and were signed on its behalf by: |
| Mr A T McManus - Director |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Company Balance Sheet |
| 31 May 2023 |
| 2023 | 2022 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 11 |
| Tangible assets | 12 |
| Investments | 13 |
| Investment property | 14 |
| CURRENT ASSETS |
| Debtors | 16 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 17 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
18 |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 22 |
| Retained earnings | 23 |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 5,760,558 | 7,628,644 |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Consolidated Statement of Changes in Equity |
| for the Year Ended 31 May 2023 |
| Called up | Merger |
| share | Retained | relief |
| capital | earnings | reserve |
| £ | £ | £ |
| Balance at 1 June 2021 | 10,000 | 24,357,042 | 9,814,498 |
| Changes in equity |
| Dividends | - | (326,000 | ) | - |
| Total comprehensive income | - | 7,131,320 | - |
| Balance at 31 May 2022 | 10,000 | 31,162,362 | 9,814,498 |
| Changes in equity |
| Dividends | - | (321,030 | ) | - |
| Total comprehensive income | - | 5,484,728 | - |
| Balance at 31 May 2023 | 10,000 | 36,326,060 | 9,814,498 |
| Non-controlling | Total |
| Total | interests | equity |
| £ | £ | £ |
| Balance at 1 June 2021 | 34,181,540 | 1,207 | 34,182,747 |
| Changes in equity |
| Dividends | (326,000 | ) | (292,200 | ) | (618,200 | ) |
| Total comprehensive income | 7,131,320 | 317,169 | 7,448,489 |
| Balance at 31 May 2022 | 40,986,860 | 26,176 | 41,013,036 |
| Changes in equity |
| Dividends | (321,030 | ) | (297,169 | ) | (618,199 | ) |
| Total comprehensive income | 5,484,728 | 102,822 | 5,587,550 |
| Balance at 31 May 2023 | 46,150,558 | (168,171 | ) | 45,982,387 |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Company Statement of Changes in Equity |
| for the Year Ended 31 May 2023 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 June 2021 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 May 2022 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 May 2023 |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Consolidated Cash Flow Statement |
| for the Year Ended 31 May 2023 |
| 2023 | 2022 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 7,258,776 | 8,492,280 |
| Interest paid | (178,079 | ) | (173,292 | ) |
| Interest element of hire purchase payments paid |
(85,193 |
) |
(48,362 |
) |
| Tax paid | (702,128 | ) | (1,470,001 | ) |
| Net cash from operating activities | 6,293,376 | 6,800,625 |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (3,548,535 | ) | (2,011,537 | ) |
| Purchase of fixed asset investments | (1,010,789 | ) | (5,500,000 | ) |
| Sale of tangible fixed assets | 261,673 | 371,625 |
| Sale of fixed asset investments | - | 3,276,568 |
| Repayment of loans | - | (23,515 | ) |
| Interest received | 405,519 | 187,963 |
| Net cash from investing activities | (3,892,132 | ) | (3,698,896 | ) |
| Cash flows from financing activities |
| Capital repayments in year | (1,066,831 | ) | (1,452,192 | ) |
| Amount introduced by directors | 327,000 | - |
| Amount withdrawn by directors | (427,457 | ) | - |
| Equity dividends paid | (321,030 | ) | (326,000 | ) |
| Dividends paid to minority interests | (297,169 | ) | (292,200 | ) |
| Net cash from financing activities | (1,785,487 | ) | (2,070,392 | ) |
| Increase in cash and cash equivalents | 615,757 | 1,031,337 |
| Cash and cash equivalents at beginning of year |
2 |
10,386,764 |
9,355,427 |
| Cash and cash equivalents at end of year | 2 | 11,002,521 | 10,386,764 |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Notes to the Consolidated Cash Flow Statement |
| for the Year Ended 31 May 2023 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2023 | 2022 |
| £ | £ |
| Profit before taxation | 7,349,696 | 9,420,367 |
| Depreciation charges | 2,788,085 | 2,465,166 |
| Profit on disposal of fixed assets | (49,902 | ) | (112,867 | ) |
| Gain on revaluation of fixed assets | (13,656 | ) | (68,186 | ) |
| Finance costs | 263,272 | 221,654 |
| Finance income | (405,519 | ) | (187,963 | ) |
| 9,931,976 | 11,738,171 |
| Increase in stocks | (5,108 | ) | (60,142 | ) |
| Increase in trade and other debtors | (1,667,807 | ) | (3,227,672 | ) |
| (Decrease)/increase in trade and other creditors | (1,000,285 | ) | 41,923 |
| Cash generated from operations | 7,258,776 | 8,492,280 |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 31 May 2023 |
| 31/5/23 | 1/6/22 |
| £ | £ |
| Cash and cash equivalents | 11,002,521 | 10,386,764 |
| Year ended 31 May 2022 |
| 31/5/22 | 1/6/21 |
| £ | £ |
| Cash and cash equivalents | 10,386,764 | 9,355,427 |
| 3. | ANALYSIS OF CHANGES IN NET FUNDS |
| At 1/6/22 | Cash flow | At 31/5/23 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 10,386,764 | 615,757 | 11,002,521 |
| 10,386,764 | 615,757 | 11,002,521 |
| Debt |
| Finance leases | (2,318,362 | ) | 1,862,911 | (455,451 | ) |
| (2,318,362 | ) | 1,862,911 | (455,451 | ) |
| Total | 8,068,402 | 2,478,668 | 10,547,070 |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Notes to the Consolidated Financial Statements |
| for the Year Ended 31 May 2023 |
| 1. | STATUTORY INFORMATION |
| McManus Group Holdings Limited is a |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Basis of consolidation |
| In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. |
| Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries,joint ventures and associates are accounted for at cost less impairment. |
| Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill. |
| The consolidated group financial statements consist of the financial statements of the parent company McManus Group Holdings Limited together with all entities controlled by the parent company (its subsidiaries) |
| and the group’s share of its interests in joint ventures and associates. |
| All financial statements are made up to 31 May 2023. Where necessary, adjustments are made to the |
| financial statements of subsidiaries to bring the accounting policies used into line with those used by other |
| members of the group. |
| All intra-group transactions, balances and unrealised gains on transactions between group companies are |
| eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence |
| of an impairment of the asset transferred. |
| Going concern |
| The directors have considered the impact of the energy crisis, cost of living crisis and other current economic issues on the Group’s trade, workforce and supply chain, as well as the wider economy. Whilst it is not considered practical to accurately assess the duration and extent of the disruption, the directors are confident that they have in place plans to deal with any financial losses that may arise. In addition, the directors consider the strong cash reserves of the group further support the going concern assumption. The directors therefore continue to adopt the going concern basis of preparation for these financial statements. |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 May 2023 |
| 2. | ACCOUNTING POLICIES - continued |
| Judgements and key sources of estimation uncertainty |
| In the application of the group’s accounting policies, the directors are 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. |
| Critical judgements |
| The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements. |
| Profit recognition on long term contracts (Moortown Group Limited) |
| Profit on contracts are not recognised unless the work is 70% complete. Until that point, costs match the income such that no profit is recognised. It is the opinion of the directors that the profit cannot be reliably estimated until a contract is at least 70% complete. The percentage of completion of a contract is calculated based on the sales value to date versus the full contract value. |
| Turnover |
| Turnover represents amounts receivable for goods and services net of VAT and trade discounts. |
| Profit is recognised on long-term contracts, if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses. Turnover is calculated as a proportion of total contract value which costs to date represent compared to total expected costs for that contract. |
| 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. |
| Turnover is recognised at the fair value of the consideration received or receivable in respect of property |
| rental income provided in the normal course of business, and is shown net of VAT and other sales related |
| taxes. |
| Goodwill |
| Goodwill on consolidation is valued at cost less accumulated amortisation and accumulated impairment |
| provisions. Amortisation is calculated to write off the cost in equal instalments over its estimated useful life of |
| twenty years. Impairment reviews of goodwill are carried out at the end of the first financial year after |
| acquisition and where there is any indication of impairment. |
| Intangible assets |
| Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 May 2023 |
| 2. | ACCOUNTING POLICIES - continued |
| Tangible fixed assets |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Motor vehicles | - |
| Computer equipment | - |
| 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 recognised in the profit and loss account. |
| The company has not depreciated the freehold property in the period due to the directors belief that the |
| residual value of the property is not materially different from the carrying value in the financial statements. |
| Government grants |
| 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. |
| Investment property |
| Investment property, which is property held to earn rentals and/or for capital appreciation, is initially |
| recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss. |
| Property rented to a group entity is accounted for as tangible fixed assets in the parent company. |
| Fixed asset investments |
| Equity investments are measured at fair value through profit or loss, except for those equity investments that |
| are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at |
| cost less impairment until a reliable measure of fair value becomes available. |
| In the parent company financial statements, investments in subsidiaries, associates and jointly controlled |
| entities are initially measured at cost and subsequently measured at cost less any accumulated impairment |
| losses. |
| A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating |
| policies of the entity so as to obtain benefits from its activities. |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 May 2023 |
| 2. | ACCOUNTING POLICIES - continued |
| Impairment of fixed assets |
| At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible |
| 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 th |
| 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 |
| . |
| The carrying amount of the investments accounted for using the equity method is tested for impairment as a |
| single asset. Any goodwill included in the carrying amount of the investment is not tested separately for |
| impairment. |
| 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. |
| Stocks |
| Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost |
| comprises direct materials and, where applicable, direct labour costs and those overheads that have been |
| incurred in bringing the stocks to their present location and condition. |
| Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement |
| cost, adjusted where applicable for any loss of service potential. |
| 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. |
| 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. |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 May 2023 |
| 2. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| The group 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 group's balance sheet when the group becomes party to the |
| contractual provisions of the instrument. |
| Financial assets and liabilities are offset and 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. |
| 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 group 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 group after deducting all of its liabilities. |
| 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 |
| payments 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. Amounts 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. |
| Derecognition of financial liabilities |
| Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or |
| cancelled. |
| Equity instruments |
| Equity instruments issued by the group 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 group. |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 May 2023 |
| 2. | ACCOUNTING POLICIES - continued |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| 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. |
| Retirement benefits |
| Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. |
| Foreign exchange |
| 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. |
| Hire purchase and leasing commitments |
| Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
| The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 May 2023 |
| 2. | ACCOUNTING POLICIES - continued |
| Merger relief reserve |
| Under merger accounting, the carrying values of the assets and liabilities of the parties to the combination are not adjusted to fair value on consolidation. Any difference between the consideration and the book value of the net assets acquired is shown as a movement on other reserves (merger relief reserve). |
| 3. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the group. |
| An analysis of turnover by class of business is given below: |
| 2023 | 2022 |
| £ | £ |
| Building and civil engineering | 67,143,421 | 66,578,212 |
| Construction of tarmac surface | 2,407,666 | 2,641,970 |
| Construction plant & materials | 2,147,140 | 1,434,925 |
| 71,698,227 | 70,655,107 |
| An analysis of turnover by geographical market is given below: |
| 2023 | 2022 |
| £ | £ |
| United Kingdom | 71,698,227 | 70,655,107 |
| 71,698,227 | 70,655,107 |
| 4. | EMPLOYEES AND DIRECTORS |
| 2023 | 2022 |
| £ | £ |
| Wages and salaries | 5,770,059 | 5,213,826 |
| Social security costs | 589,023 | 553,332 |
| Other pension costs | 274,265 | 320,973 |
| 6,633,347 | 6,088,131 |
| The average number of employees during the year was as follows: |
| 2023 | 2022 |
| Direct | 74 | 72 |
| Administration | 31 | 31 |
| Management | 14 | 14 |
| The average number of employees by undertakings that were proportionately consolidated during the year was 2 (2022 - 2 ) . |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 May 2023 |
| 4. | EMPLOYEES AND DIRECTORS - continued |
| 2023 | 2022 |
| £ | £ |
| Directors' remuneration | 206,177 | 219,852 |
| Directors' excess retirement benefits | 88,200 | 40,000 |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Defined benefit schemes | 2 | 2 |
| Information regarding the highest paid director is as follows: |
| 2023 | 2022 |
| £ | £ |
| Emoluments etc | 134,844 | 92,697 |
| Accrued pension at 31 May 2023 | 25,200 | 40,000 |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2023 | 2022 |
| £ | £ |
| Hire of plant and machinery | 47,188 | 46,928 |
| Other operating leases | 427,675 | 212,018 |
| Depreciation - owned assets | 1,055,487 | 2,123,783 |
| Depreciation - assets on hire purchase contracts | 1,391,217 | - |
| Profit on disposal of fixed assets | (49,902 | ) | (112,867 | ) |
| Goodwill amortisation | 341,381 | 341,383 |
| Foreign exchange differences | 1,471 | (88 | ) |
| 6. | AUDITORS' REMUNERATION |
| 2023 | 2022 |
| £ | £ |
| Fees payable to the company's auditors for the audit of the company's financial statements |
30,000 |
30,900 |
| Auditors' remuneration for non audit work | 15,000 | 19,865 |
| 7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2023 | 2022 |
| £ | £ |
| Other interest | 178,079 | 173,292 |
| Hire purchase | 85,193 | 48,362 |
| 263,272 | 221,654 |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 May 2023 |
| 8. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2023 | 2022 |
| £ | £ |
| Current tax: |
| UK corporation tax | 1,030,190 | 1,643,093 |
| Adjustments in respect of |
| prior years | - | 67,492 |
| Total current tax | 1,030,190 | 1,710,585 |
| Deferred tax | 731,956 | 261,293 |
| Tax on profit | 1,762,146 | 1,971,878 |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2023 | 2022 |
| £ | £ |
| Profit before tax | 7,349,696 | 9,420,367 |
| Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
1,396,442 |
1,789,870 |
| Effects of: |
| Expenses not deductible for tax purposes | 17,156 | 1,299 |
| Depreciation in excess of capital allowances | 360,411 | 120,866 |
| Adjustments to tax charge in respect of previous periods | - | 60,336 |
| Change in unrecognised deferred tax assets | - | 3,800 |
| Amortisation on assets not qualifying for tax allowances | (63,507 | ) | (63,507 | ) |
| Effect of change in tax rate | 51,644 | 64,494 |
| Other adjustments | - | (5,280 | ) |
| Total tax charge | 1,762,146 | 1,971,878 |
| 9. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
| As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 May 2023 |
| 10. | DIVIDENDS |
| 2023 | 2022 |
| £ | £ |
| Ordinary A shares of £1 each |
| Interim | 321,030 | 326,000 |
| 2023 | 2022 |
| £ | £ |
| Dividends paid by the group | 321,030 | 326,000 |
| Dividends paid by subsidiaries to non-controlling interests | 297,169 | 279,850 |
| 618,199 | 605,850 |
| 11. | INTANGIBLE FIXED ASSETS |
| Group |
| Goodwill |
| £ |
| COST |
| At 1 June 2022 |
| and 31 May 2023 | 5,675,550 |
| AMORTISATION |
| At 1 June 2022 | 2,219,006 |
| Amortisation for year | 341,381 |
| At 31 May 2023 | 2,560,387 |
| NET BOOK VALUE |
| At 31 May 2023 | 3,115,163 |
| At 31 May 2022 | 3,456,544 |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 May 2023 |
| 12. | TANGIBLE FIXED ASSETS |
| Group |
| Fixtures |
| Freehold | Plant and | and |
| property | machinery | fittings |
| £ | £ | £ |
| COST |
| At 1 June 2022 | 3,408,262 | 15,656,263 | 122,829 |
| Additions | - | 2,642,897 | 831 |
| Disposals | - | (737,474 | ) | - |
| At 31 May 2023 | 3,408,262 | 17,561,686 | 123,660 |
| DEPRECIATION |
| At 1 June 2022 | - | 7,086,991 | 50,498 |
| Charge for year | - | 2,027,845 | 10,932 |
| Eliminated on disposal | - | (574,213 | ) | - |
| At 31 May 2023 | - | 8,540,623 | 61,430 |
| NET BOOK VALUE |
| At 31 May 2023 | 3,408,262 | 9,021,063 | 62,230 |
| At 31 May 2022 | 3,408,262 | 8,569,272 | 72,331 |
| Motor | Computer |
| vehicles | equipment | Totals |
| £ | £ | £ |
| COST |
| At 1 June 2022 | 2,084,382 | 131,633 | 21,403,369 |
| Additions | 868,281 | 36,526 | 3,548,535 |
| Disposals | (319,249 | ) | - | (1,056,723 | ) |
| At 31 May 2023 | 2,633,414 | 168,159 | 23,895,181 |
| DEPRECIATION |
| At 1 June 2022 | 819,613 | 83,255 | 8,040,357 |
| Charge for year | 390,945 | 16,982 | 2,446,704 |
| Eliminated on disposal | (270,739 | ) | - | (844,952 | ) |
| At 31 May 2023 | 939,819 | 100,237 | 9,642,109 |
| NET BOOK VALUE |
| At 31 May 2023 | 1,693,595 | 67,922 | 14,253,072 |
| At 31 May 2022 | 1,264,769 | 48,378 | 13,363,012 |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 May 2023 |
| 12. | TANGIBLE FIXED ASSETS - continued |
| Group |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Plant and |
| machinery |
| £ |
| COST |
| At 1 June 2022 | 5,039,768 |
| Additions | 1,223,667 |
| Transfer to ownership | (3,763,683 | ) |
| At 31 May 2023 | 2,499,752 |
| DEPRECIATION |
| At 1 June 2022 | 1,227,574 |
| Charge for year | 1,391,217 |
| Transfer to ownership | (1,189,593 | ) |
| At 31 May 2023 | 1,429,198 |
| NET BOOK VALUE |
| At 31 May 2023 | 1,070,554 |
| At 31 May 2022 | 3,812,194 |
| Company |
| Freehold |
| property |
| £ |
| COST |
| At 1 June 2022 |
| and 31 May 2023 |
| NET BOOK VALUE |
| At 31 May 2023 |
| At 31 May 2022 |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 May 2023 |
| 13. | FIXED ASSET INVESTMENTS |
| Group |
| Listed |
| investments |
| £ |
| COST OR VALUATION |
| At 1 June 2022 | 6,313,893 |
| Additions | 1,010,789 |
| Revaluations | 45,003 |
| Impairments | (31,347 | ) |
| At 31 May 2023 | 7,338,338 |
| NET BOOK VALUE |
| At 31 May 2023 | 7,338,338 |
| At 31 May 2022 | 6,313,893 |
| Cost or valuation at 31 May 2023 is represented by: |
| Listed |
| investments |
| £ |
| Valuation in 2023 | 7,338,338 |
| Company |
| Shares in |
| group | Listed |
| undertakings | investments | Totals |
| £ | £ | £ |
| COST OR VALUATION |
| At 1 June 2022 | 11,624,767 |
| Additions | 1,000,000 |
| Revaluations | 45,003 |
| At 31 May 2023 | 12,669,770 |
| NET BOOK VALUE |
| At 31 May 2023 | 12,669,770 |
| At 31 May 2022 | 11,624,767 |
| Cost or valuation at 31 May 2023 is represented by: |
| Shares in |
| group | Listed |
| undertakings | investments | Totals |
| £ | £ | £ |
| Valuation in 2023 | - | 6,519,569 | 6,519,569 |
| Cost | 6,150,201 | - | 6,150,201 |
| 6,150,201 | 6,519,569 | 12,669,770 |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 May 2023 |
| 13. | FIXED ASSET INVESTMENTS - continued |
| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Subsidiaries |
| Leeds Acro Limited |
| Registered office: Lusteen House, 24 Roydsdale Way Bradford, BD4 6SE |
| Nature of business: Plant hire |
| % |
| Class of shares: | holding |
| Ordinary | 100.00 |
| Excel Surfacing Limited |
| Registered office: Lusteen House, 24 Roydsdale Way, Bradford, BD4 6SE |
| Nature of business: Construction of tarmacadam surfaces |
| % |
| Class of shares: | holding |
| Ordinary | 89.00 |
| Moortown Group Limited |
| Registered office: Lusteen House, 24 Roydsdale Way, Bradford, BD4 6SE |
| Nature of business: Building and civil engineering contractors |
| % |
| Class of shares: | holding |
| Ordinary | 100.00 |
| Moortown Plant Limited |
| Registered office: Lusteen House, 24 Roydsdale Way, Bradford, BD4 6SE |
| Nature of business: Plant hire |
| % |
| Class of shares: | holding |
| Ordinary | 100.00 |
| Panther Construction Products Limited |
| Registered office: Lusteen House, 24 Roydsdale Way, Bradford, BD4 6SE |
| Nature of business: Sale of construction products |
| % |
| Class of shares: | holding |
| Ordinary | 80.00 |
| Moortown Civil Engineering Limited |
| Registered office: Lusteen House, 24 Roydsdale Way, Bradford, BD4 6SE |
| Nature of business: Civil engineering |
| % |
| Class of shares: | holding |
| Ordinary | 100.00 |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 May 2023 |
| 14. | INVESTMENT PROPERTY |
| Group |
| Total |
| £ |
| FAIR VALUE |
| At 1 June 2022 |
| and 31 May 2023 | 974,549 |
| NET BOOK VALUE |
| At 31 May 2023 | 974,549 |
| At 31 May 2022 | 974,549 |
| Company |
| Total |
| £ |
| FAIR VALUE |
| At 1 June 2022 |
| and 31 May 2023 |
| NET BOOK VALUE |
| At 31 May 2023 |
| At 31 May 2022 |
| Investment properties comprises a commercial property in Harrogate and a social club and land in Leeds. The fair values of the investment properties have been arrived at on the basis of the purchase price. The valuations were made on an open market value basis by reference to market evidence of transaction prices for similar properties. |
| 15. | STOCKS |
| Group |
| 2023 | 2022 |
| £ | £ |
| Stocks | 249,779 | 244,671 |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 May 2023 |
| 16. | DEBTORS |
| Group | Company |
| 2023 | 2022 | 2023 | 2022 |
| £ | £ | £ | £ |
| Amounts falling due within one year: |
| Trade debtors | 2,899,374 | 3,839,141 |
| Amounts owed by group undertakings | - | - |
| Amounts recoverable on contract | 12,799,377 | 13,411,897 |
| Other debtors | 967,045 | 782,771 |
| Directors' current accounts | 427,271 | 506,814 | - | - |
| VAT | 1,322,534 | 481,124 |
| Prepayments and accrued income | 675,632 | 593,699 |
| 19,091,233 | 19,615,446 |
| Amounts falling due after more than one | year: |
| Trade debtors | 2,636,924 | 1,794,447 |
| Other debtors | 10,000,000 | 8,550,000 |
| 12,636,924 | 10,344,447 |
| Aggregate amounts | 31,728,157 | 29,959,893 |
| 17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2023 | 2022 | 2023 | 2022 |
| £ | £ | £ | £ |
| Hire purchase contracts (see note 19) | 381,505 | 1,506,994 |
| Payments on account | 164,562 | - |
| Trade creditors | 6,677,472 | 6,019,521 |
| Amounts owed to group undertakings | - | - |
| Tax | 465,022 | 136,960 |
| Social security and other taxes | 189,537 | 219,802 |
| VAT | - | - | - | 111 |
| Other creditors | 381,603 | 28,833 |
| Accruals and deferred income | 10,591,801 | 11,941,024 |
| 18,851,502 | 19,853,134 |
| 18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group | Company |
| 2023 | 2022 | 2023 | 2022 |
| £ | £ | £ | £ |
| Hire purchase contracts (see note 19) | 73,946 | 811,368 |
| Other creditors | 2,166,176 | 2,166,176 |
| 2,240,122 | 2,977,544 |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 May 2023 |
| 18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR - continued |
| Upon purchase of Moortown Group Limited and its subsidiary undertakings the company issued loan notes to Mr T McManus amounting to £2.75 million. The loan notes are unsecured and not repayable for 5 years. Interest is payable at 8%. Included within other creditors is a balance of £2,166,176 (2022: £2,166,176). |
| 19. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Hire purchase contracts |
| 2023 | 2022 |
| £ | £ |
| Net obligations repayable: |
| Within one year | 381,505 | 1,506,994 |
| Between one and five years | 73,946 | 811,368 |
| 455,451 | 2,318,362 |
| Group |
| Non-cancellable |
| operating leases |
| 2023 | 2022 |
| £ | £ |
| Within one year | 73,142 | 141,242 |
| Between one and five years | 110,000 | 23,784 |
| 183,142 | 165,026 |
| 20. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Group |
| 2023 | 2022 |
| £ | £ |
| Hire purchase contracts | 455,451 | 2,318,362 |
| Finance leases are secured on the assets to which they relate. |
| 21. | PROVISIONS FOR LIABILITIES |
| Group |
| 2023 | 2022 |
| £ | £ |
| Deferred tax | 1,587,568 | 855,612 |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 May 2023 |
| 21. | PROVISIONS FOR LIABILITIES - continued |
| Group |
| Deferred tax |
| £ |
| Balance at 1 June 2022 | 855,612 |
| Charge to Statement of Comprehensive Income during year | 731,956 |
| Balance at 31 May 2023 | 1,587,568 |
| 22. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2023 | 2022 |
| value: | £ | £ |
| Ordinary A | £1 | 9,000 | 9,000 |
| Ordinary B | £1 | 1,000 | 1,000 |
| 10,000 | 10,000 |
| 23. | RESERVES |
| Group |
| Merger |
| Retained | relief |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1 June 2022 | 31,162,362 | 9,814,498 | 40,976,860 |
| Profit for the year | 5,484,728 | 5,484,728 |
| Dividends | (321,030 | ) | (321,030 | ) |
| At 31 May 2023 | 36,326,060 | 9,814,498 | 46,140,558 |
| Company |
| Retained |
| earnings |
| £ |
| At 1 June 2022 |
| Profit for the year |
| Dividends | ( |
) |
| At 31 May 2023 |
| McManus Group Holdings Limited (Registered number: 09802071) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 May 2023 |
| 24. | NON-CONTROLLING INTERESTS |
| At at 31 May 2023 the group owned 80% of Panther Construction Products Limited. At this date, reserves attributable to holdings outside of the group amounted to £18,179. |
| The group also owned 89% of Excel Surfacing Limited. At this date, reserves attributable to holdings outside of the group amounted to negative £186,350. |
| 25. | PENSION COMMITMENTS |
| A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. |
| 26. | CAPITAL COMMITMENTS |
| 2023 | 2022 |
| £ | £ |
| Contracted but not provided for in the |
| financial statements | 706,496 | 75,991 |
| 27. | FINANCIAL COMMITMENTS, GUARANTEES AND CONTINGENT LIABILITIES |
| The company has an unlimited multilateral guarantee with its fellow group companies. At the balance sheet |
| date total group borrowings amounted to £Nil (2021: £Nil). |
| 28. | RELATED PARTY DISCLOSURES |
| During the year, total dividends of £288,927 (2022 - £293,400) were paid to the directors . |
| Other related parties |
| 2023 | 2022 |
| £ | £ |
| Sales | 1,293,468 | 6,064 |
| Purchases | 70,483 | 59,898 |
| Amount due from related party | 10,407,063 | 9,191,412 |
| Included above is a loan owed to the group of £10,000,000 (2022: £8,550,000) on which interest is charged at 2% above base rate, until 1 January 2023 at which point it was fixed at 4%. |
| During the year, a total of key management personnel compensation of £ 865,253 (2022 - £ 913,852 ) was paid. |