Registered number:
FOR THE YEAR ENDED 30 JUNE 2023
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MIDCO 8787 2 LIMITED
COMPANY INFORMATION
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MIDCO 8787 2 LIMITED
CONTENTS
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MIDCO 8787 2 LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
The Directors of MidCo 2 8787 Limited present their Strategic Report on the affairs of the Group, together with the audited financial statements for the year ended 30 June 2023.
The principal activity of the Group is the provision of legal conveyancing services to home movers in respect of residential property transactions. This activity is regulated by the Council for Licensed Conveyancers. The Group also provides panel management services to certain estate agency businesses, whereby it manages panels of law firms who, in turn, provide conveyancing services to home movers introduced by those estate agencies.
During the years to 30 June 2023 and 30 June 2022, the UK residential property market has continued to witness volatility in transaction patterns. The Group’s agility towards hybrid working and its investment in IT hardware and software enable it to cope with fluctuating demand whilst ensuring it operates within its identified capacity levels. Principal risks and uncertainties Business and operational risk The ongoing profitability and growth of the Group’s business is dependent on a continued flow of new instructions from clients and having the necessary team of conveyancing lawyers and supporting staff in place to undertake the required conveyancing services for these clients. The majority of the Group’s clients are introduced by estate agency firms. The continued referral of clients by the Group’s estate agency partners is dependent on high quality of service being delivered on conveyancing transactions. The Group continually monitors feedback to ensure high service levels are maintained and takes corrective action where required. The Group seeks to ensure that it has adequate resources to complete its pipeline of conveyancing instructions by forward planning and recruiting staff to ensure it has sufficient capacity. The Group is also reliant on its IT systems to deliver a high level of service and to improve its operational efficiency over time. The Group invests significantly in both IT hardware and software and a team of specialist IT staff to ensure this requirement is met. Macro economic risk The Group’s exposure to macro economic risk relates primarily to the impact of macro economic factors on the UK housing market, where such factors may cause a contraction in the market size. The Group manages this risk through developing strong partnerships with its key partners and through an agile new business sales team that allows it to develop its market share in a highly fragmented market. Cash flow and liquidity risk The Group aims to mitigate liquidity risk through proactive management of working capital and financial forecasting. The Group also manages liquidity risk through the use of revolving credit facilities and maintaining appropriate levels of bank borrowings. At 30 June 2023 the Group had consolidated cash balances of £3.1 million (30 June 2022 £4.2 million).
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MIDCO 8787 2 LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
Interest rate risk
The Group’s exposure to market risk in relation to changes in interest rates relates primarily to its senior debt facilities, which are linked to bank base rate. The Group manages this risk through use of sensitivity analysis and seeks to maintain adequate headroom against an adverse move in base rates. Currency risk The Group’s activities are concentrated in the United Kingdom and as such there is minimal exposure to the financial risks of changes in foreign currency exchange rates. The Group does not use derivative financial instruments. Credit risk The Group’s principal financial assets are bank balances and trade and other receivables. The Group’s credit risk is primarily attributable to its trade receivables. The amounts stated in the balance sheet are net of provisions for bad and doubtful debts. An impairment provision is made where a risk is identified which, based on previous experience, is evidence of a reduction in the recoverability of amounts due to the Group. The Group does not have a significant concentration of credit risk; its receivables balances are spread over many customers. The majority of client receivables are settled immediately upon completion of a conveyancing transaction.
The Group continues to broaden its overall agent network in order to grow the number of client instructions and focuses on internal performance metrics to improve EBITDA. The Group maintains its focus on cost control measures and is trading in line with its expectations.
The Directors believe that the Group’s reputation for providing high quality conveyancing coupled with its low share of the UK residential conveyancing market will enable it to achieve further growth despite the macroeconomic headwinds. The Directors have prepared and reviewed financial projections based on their best estimate of future trading through to 30 June 2025 as further described in note 2.3 to the consolidated financial statements and, on that basis, have concluded that the Group has adequate financial resources to meet its liabilities as they fall due and, accordingly, that the financial statements should be prepared on a going concern basis.
Being a holding company there are no Company specific key performance indicators. The performance indicators for the Group are disclosed in the financial statements of Topco 8787 Limited.
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MIDCO 8787 2 LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
The board promotes the success of the group for the benefit of a broad range of stakeholders that we recognise are material to the long-term future success of our business. We consider the impact on our stakeholders throughout all our discussions and decisions. Like any business, we are sometimes required to take decisions that adversely affect one or more of these groups, and, in such cases, we always look to ensure that those affected are treated fairly. We have detailed below how the board have ensured effective engagement with our key stakeholders during the past year.
• Employees - Our people are our biggest asset and are central to the ongoing success of the Group. Our people strategy aims to attract, retain, develop and motivate the right people for our current and future business needs. We engage with our people through the following activities: o Employee opinion survey completed with Best Companies. o Ensuring every member of staff was involved in the development of our new vision and values with engagement sessions held by the executive and senior management teams in each office. o An active employee forum. o Regular management briefings and a quarterly newsletter. o Presentations by the executive team to discuss performance and strategic plans. • Clients – Our clients are the central focus of our business. The Group’s ongoing success is built upon an ability to understands clients needs, respond with solutions and always deliver those with the highest quality of service. We engage with our clients and monitor feedback through a variety of channels including: o Requesting feedback at 3 points of the process for all clients. o Monitoring and engaging with client feedback through external websites such as Trustpilot. o The board also considers the fair treatment of clients through fair pricing and the quick resolution of complaints. • Shareholders and banking partners – We rely on the support and engagement of our shareholders and banking partners to deliver our strategic objectives and grow the business. Our shareholders are supportive of the long-term strategic approach and vision we take in the management of our business. We engage with our shareholders through the following activities: o To provide full visibility, representatives of our majority shareholders met monthly with the executive and non-executives Directors during the year ended 30 June 2023. o On at least a monthly basis, meetings are held independently between our majority shareholders and our Chairman and CEO respectively. • Suppliers and regulator – We recognise the importance of our various partners in delivering services to client and ensure we have shared values. We seek to build positive relationships with our regulators. Regulators provide key oversight of how we run our business. We engage with our partners and regulators through the following activities: o We ensure our payment terms with all suppliers are fair and in compliance with best payment practices. o We maintain ongoing relationships with our key suppliers during the year in general and ensure we proactively engage on specific challenges or changes quickly. o We continue our work in the area of preventing modern slavery. o The Group is regulated by the Council of Licensed Conveyancing and has an open, proactive and transparent relationship with them.
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MIDCO 8787 2 LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
• Society and communities – We recognise the responsibility we have to wider society and other key stakeholders. The group therefore takes corporate social responsibility very seriously and is committed to ensuring ethical behaviour, a high regard for the welfare of our people and care for the environment in all our activities. We engage with society and the communities in which we operate through the following activities: o We proudly support AgentsGiving with a member of our board acting as an ambassador for them. o We have provided work experience opportunities for local academy students in our office locations, fostering their confidence and exposure to professional office environments. o We support and engage in numerous fundraising events, supporting various charities and schools. Notable efforts include a 56 mile walk for Refuge, a Make, Bake and Donate day for Comic Relief and collaborating with Peterborough Soup Kitchen to raise funds. o The group also supported a week dedicated to Mental Health Awareness during the year.
This report was approved by the board and signed on its behalf.
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MIDCO 8787 2 LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
The directors present their report and the financial statements for the year ended 30 June 2023.
The directors are responsible for preparing the Strategic Report, the Directors' Report 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, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'). 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 of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The loss for the year, after taxation, amounted to £9,693 (2022 - loss £6,813).
The directors who served during the year were:
The review of the business, principal activities, principal risks and uncertainties and key performance indicators, are addressed in the strategic report.
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MIDCO 8787 2 LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
The auditor, Grant Thornton UK LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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MIDCO 8787 2 LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MIDCO 8787 2 LIMITED
We have audited the financial statements of Midco 8787 2 Limited (the 'Company') for the year ended 30 June 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, and 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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard and the provisions available for small entities, in the circumstances set out in note 2 to the financial statements 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.
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MIDCO 8787 2 LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MIDCO 8787 2 LIMITED (CONTINUED)
We are responsible for concluding on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the company to cease to continue as a going concern.
In our evaluation of the directors’ conclusions, we considered the inherent risks associated with the company’s business model including effects arising from macro-economic uncertainties such as cost of living crisis and increase in interest rates, we assessed and challenged the reasonableness of estimates made by the directors and the related disclosures and analysed how those risks might affect the company’s financial resources or ability to continue operations over the going concern period.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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MIDCO 8787 2 LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MIDCO 8787 2 LIMITED (CONTINUED)
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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MIDCO 8787 2 LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MIDCO 8787 2 LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
• We obtained an understanding of the legal and regulatory frameworks applicable to the company and we determined that the laws and regulations most directly relevant to specific assertions in the financial statements are those related to the reporting framework (being FRS 102 ‘The Financial Reporting Standard applicable in the UK and Ireland’ and the Companies Act 2006) and relevant tax legislation in the UK. In addition, we concluded that there are certain significant laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements such as health and safety regulations, employment law and anti-bribery legislation. • We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by making enquiries of management and those charged with governance, and updating our understanding of the company’s operations, financial reporting obligations and control environment, including around compliance with laws and regulations. We considered the risk of fraud to be higher through the potential for management override of controls. • We communicated relevant laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. • We understood how the company is complying with those legal and regulatory frameworks by making enquiries of management. We corroborated our enquiries through our review of board minutes. • Audit procedures performed by the engagement team included: o identifying and assessing the design and implementation of controls management has in place to prevent and detect fraud, particularly around journal processing; o journal entry testing, with a focus on journals meeting our defined risk criteria based on our understanding of the business; o challenging assumptions and judgements made by management relating to its areas of significant estimation and judgement; o reviewing legal and professional expenditure in the year to assess for any indicators of noncompliance with relevant laws and regulations; and o completion of audit procedures to conclude on the compliance of disclosures in the annual report and accounts with applicable financial reporting requirements. • These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it; • Assessment by the engagement partner of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team’s: o knowledge of the industry in which the company operates and understanding of, and practical experience with, audit engagements of a similar nature and complexity through appropriate training and participation; and o understanding of the legal and regulatory requirements specific to the company.
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MIDCO 8787 2 LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MIDCO 8787 2 LIMITED (CONTINUED)
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Senior Statutory Auditor
for and on behalf of
Statutory Auditor, Chartered Accountants
Birmingham
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MIDCO 8787 2 LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
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MIDCO 8787 2 LIMITED
REGISTERED NUMBER: 11899683
BALANCE SHEET
AS AT 30 JUNE 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 24 form part of these financial statements.
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MIDCO 8787 2 LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
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MIDCO 8787 2 LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022
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MIDCO 8787 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Midco 8787 2 Limited (the "Company") is a private company limited by shares, incorporated in England and Wales, registration number 11899683. The address of the registered office is Unit 3 Caxton Close, Drayton Fields Industrial Estate, Daventry, NN11 8RT.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7;
∙the requirement of paragraph 24(b) of IFRS 6 Exploration for and Evaluation of Mineral Resources to disclose the operating and investing cash flows arising from the exploration for and evaluation of mineral resources (when applying this standard in accordance with paragraph 34.11 of FRS 102).
This information is included in the consolidated financial statements of Topco 8787 Limited as at 30 June 2023 and these financial statements may be obtained from Companies House.
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MIDCO 8787 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
2.Accounting policies (continued)
Midco 8787 2 Limited is an intermediate holding company with net liabilities of £26,918 as at 30
June 2023 and loss for the year then ended of £9,693. The Company is a wholly owned subsidiary of Topco 8787 Limited. The directors have assessed the going concern of the group as a whole, comprising Topco 8787 Limited and all of its subsidiary undertakings (together ‘the Group’). The Directors recognise the ongoing uncertainties in the UK housing market and wider UK economy created by increases in the cost of living and increases to mortgage rates. Against this backdrop, the Directors have given detailed consideration to the financial position of the Group, its cash flows, liquidity position and borrowing facilities, including projected compliance with banking covenants. During the year, an additional £84,226 of ordinary shares were issued an additional £3,416,479 unsecured loans were received to ensure sufficient liquidity is in place. As at 30 June 2023, the Group had outstanding bank borrowings, provided by Clydesdale Bank plc under the terms of a senior facility agreement totalling £8,192,184 and it had cash balances of £3,081,986. The bank borrowings at 30 June 2023 comprised: a term loan of £4,500,000 repayable on 31 October 2025; a term loan of £1,887,500 repayable in quarterly instalments over the period to 31 October 2024; a term loan of £1,054,685 repayable in quarterly instalments over the period to 29 August 2025; and a further term loan made available under the Coronavirus Business Interruption Loan Scheme of £750,000 repayable in monthly instalments over the period from 31 December 2020 to 31 May 2025. In addition the Group had an undrawn amount of £1,000,000 available to it under a revolving credit facility made available by Clydesdale Bank plc. During the year the group agreed and signed an amended banking agreement with Clydesdale Bank plc. As part of this £473,959 of repayment were deferred until the final loan repayment date and the financial covenants tests were amended for the quarterly periods ending 30 September 2023, 31 December 2023 and 31 March 2024. The Group also has shareholder loans outstanding, which totalled £10,420,479 as at 30 June 2023. No amounts are repayable until 15 November 2025. Under the terms of the senior facility agreement with Clydesdale Bank plc, the Group is subject to financial covenants, the principal covenants being to maintain minimum levels of available cash and profit performance. The Directors have produced detailed cash flow forecasts covering the period to 30 June 2025 based on their best estimate of likely financial performance. The Directors have also run a number of downside sensitivities assuming a less favourable trading environment and resulting lower levels of profitability and cash generation. In all cases, the Group is forecast to fully meet its banking covenants. The Group is currently in advanced discussions with Clydesdale bank and expects to finalise and agree an extension of the terms of all of its current facilities until 30 June 2026. Taking into consideration the forecast trading and cashflow performance of the Group, the Directors consider that the going concern basis of accounting continues to be appropriate for the preparation of the financial statements, on the basis that the Group will be able to continue to meet its financial obligations as they fall due for a period of not less than twelve months from the date of approval of these financial statements.
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MIDCO 8787 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
2.Accounting policies (continued)
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MIDCO 8787 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
2.Accounting policies (continued)
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MIDCO 8787 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period an future periods if the revision affects both current and future periods. Impairment and recoverability of inter company balances Management has considered recoverability of the carrying value of inter-company balances for indicators of impairment. Where such indicators have been identified the directors have considered the value in use and future cashflows. Any impairments identified is recognised immediately in the statement of comprehensive income. Management believe there are no other areas of estimates or significant judgements which would have a significant effect on the amounts recognised in the financial statements.
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MIDCO 8787 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
In the Spring Budget 2021, the Government announced that from 1 April 2023 the standard rate of corporation tax will increase to 25%.
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MIDCO 8787 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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MIDCO 8787 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
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MIDCO 8787 2 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Profit and loss account
Called up share capital: Called up share capital represents the nominal value of the shares issued. Profit and loss account: The profit and loss accounts represent cumulative profits and losses net of dividends paid and other adjustments.
The prior year accounts have been restated as it was identified that the creditors amounts owed to group undertakings of £19,785,399 and the accruals and deferred income of £7,551,117 were incorrectly stated as creditor balances falling due after more than one year, when they should have been shown as creditor balances falling due within one year. These have been restated within these acccounts bringing the prior year balance within creditors amounts falling due within one year to £27,353,742, opposed to £17,266 which was shown in the 2022 accounts. The creditors amounts falling due after more than one year has been restated to £nil opposed to the £27,336,516 balance which was showing in the 2022 accounts. There have been no changes to the prior year loss for the year.
The Company is an obligor and guarantor under the senior facility agreement with the Group’s lender. The amount outstanding on this facility as at 30 June 2023 was £8,192,185 (2022: £8,832,811).
The Company's immediate parent undertaking is Midco 8787 1 Limited, a company incorporated in England and Wales with a registered office at Unit 3 Caxton Close, Drayton Fields Industrial Estate, Daventry, NN11 8RT.
The smallest and largest group into which the results of the Company are consolidated is that headed by Topco 8787 Limited. Copies of the consolidated accounts of Topco 8787 Limited may be obtained from Unit 3 Caxton Close, Drayton Fields Industrial Estate, Daventry, NN11 8RT. The ultimate controlling party is Livingbridge Enterprise 2 LP by virtue of its majority shareholding in the Company's ultimate parent undertaking Topco 8787 Limited.
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