MARLINGS_LIMITED - 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.

Marlings Limited is a private company limited by shares incorporated in England and Wales. The registered office is Stanley Mills, Stonehouse, Gloucester, Gloucestershire, United Kingdom, GL10 3HQ.

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.

Turnover is recognised as earned when, and to the extent that, the company obtains the right to consideration in exchange for goods provided. Turnover represents amounts receivable for goods and services provided in the normal course of business, net of trade discounts, VAT and other sales-related taxes.

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.

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.

Interests in associates are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

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.

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.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

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

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.

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.

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.

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the profit and loss account in the period to which they relate.

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.

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 estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The company has stock of £743,149 (2022: £738,049). Management provides for slow and obsolete stocks based on a combination of age and other known factors which might affect the ability to sell the stock item. The provision rates used are reassessed regularly against experience.

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

Details of the company's associates at 31 March 2023 are as follows:

The other 88.97% is owned by the company's parent company.

Obligations under finance lease are secured against the assets to which they relate.

The bank loan is secured by debenture over all the assets of the company held by NatWest Bank PLC and an inter-company guarantee with the parent company Peter Griffiths (Stanley Mills) Limited.

The bank loan is secured by a debenture over all the assets of the company held by NatWest Bank PLC and an inter-company guarantee with the parent company Peter Griffiths (Stanley Mills) Limited.

The bank loan is repayable in monthly instalments from July 2021 and is repayable in full by 22 June 2026. Interest is charged to the company at 0% per annum for the first 12 months and 2.5% per annum thereafter.

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 was unqualified.

On 6 June 2005, Marlings Limited and Peter Griffiths (Stanley Mills) Limited entered into an unlimited cross guarantee with Natwest Bank PLC.

The bank holds a debenture on all assets of the company.

The effect of this guarantee is that on demand by the bank, the companies will be solely or jointly liable to pay or discharge to the bank, all monies or liabilities which are due, owing or incurred by either company to the bank.

At the year end Peter Griffiths (Stanley Mills) Limited had outstanding loans and overdrafts due to Natwest Bank PLC of £nil (2022: £nil).

During the year the company was charged rent of £110,004 (2022: £110,104) and management charges of £130,000 (2022: £300,000) by Peter Griffiths (Stanley Mills) Limited, its parent company. At the year end the company owed £735,061 (2022: £476,673) to Peter Griffiths (Stanley Mills) Limited; this amount is included within amounts owed to group undertakings due within one year.

During the year the company was charged management charges by PG Management (Stonehouse) Limited of £144,000 (2022: £156,000). These management charges include charges for the services of key management personnel. There is also a loan balance between the two companies which is repayable on demand. At the year end the company was owed £221,486 (2022: £193,965) by PG Management (Stonehouse) Limited; this amount is included within other debtors due within one year. Mrs J May is a majority shareholder and director of PG Management (Stonehouse) Limited.

During the year the company made payments to pensioners on behalf of the Marlings Industrial Felts Limited Pension and Life Assurance Scheme, a pension scheme of which it is an associated employer. At the year end the company was owed £16,345 (2022: £nil) by the the Marlings Industrial Felts Limited Pension and Life Assurance Scheme; this amount is included within other debtors due within one year.

The director, Mrs J May operates a loan account with the company. At the year end the company was owed £nil (2022: £nil) by Mrs J May; this amount is included within other debtors due within one year.

At the year end the company was owed £15,745 (2022: £15,449) by The Peter Griffiths Grandchildrens Trust, of which Mrs J May is a trustee; this amount is included within other debtors due within one year.

The immediate and ultimate parent company is Peter Griffiths (Stanley Mills) Limited, a company incorporated in England and Wales.

The ultimate controlling party is Mrs J May.