Company Registration No. SC504100 (Scotland)
MRDS Group Limited
unaudited financial statements
for the year ended 31 December 2021
Pages for filing with Registrar
MRDS Group Limited
Contents
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 11
MRDS Group Limited
Balance sheet
as at 31 December 2021
31 December 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Intangible assets
3
187,857
213,304
Tangible assets
4
90,393
110,955
278,250
324,259
Current assets
Stocks
420,935
504,678
Debtors
5
1,010,189
796,389
Cash at bank and in hand
970
14,849
1,432,094
1,315,916
Creditors: amounts falling due within one year
6
(2,610,651)
(1,671,967)
Net current liabilities
(1,178,557)
(356,051)
Total assets less current liabilities
(900,307)
(31,792)
Creditors: amounts falling due after more than one year
7
(278,990)
(344,249)
Provisions for liabilities
(36,809)
(36,809)
Net liabilities
(1,216,106)
(412,850)
Capital and reserves
Called up share capital
20
20
Share premium account
149,990
149,990
Profit and loss reserves
(1,366,116)
(562,860)
Total equity
(1,216,106)
(412,850)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
MRDS Group Limited
Balance sheet (continued)
as at 31 December 2021
31 December 2021
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 3 March 2023 and are signed on its behalf by:
Mr D Garrick
Director
Company Registration No. SC504100
MRDS Group Limited
Statement of changes in equity
for the year ended 31 December 2021
- 3 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 October 2019
10
67,712
67,722
Period ended 31 December 2020:
Loss and total comprehensive income for the period
-
-
(620,572)
(620,572)
Issue of share capital
10
149,990
-
150,000
Dividends
-
-
(10,000)
(10,000)
Balance at 31 December 2020
20
149,990
(562,860)
(412,850)
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
-
(803,256)
(803,256)
Balance at 31 December 2021
20
149,990
(1,366,116)
(1,216,106)
MRDS Group Limited
Notes to the financial statements
for the year ended 31 December 2021
- 4 -
1
Accounting policies
Company information
MRDS Group Limited is a
private
company
limited by shares
incorporated in
Scotland
.
The registered office is
Unit 15a Minto Drive, Altens Industrial Estate, Aberdeen, AB12 3LW.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 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 a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Covid 19 has interrupted the business but the directors are taking the appropriate steps to secure the future of the business.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
MRDS Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2021
1
Accounting policies (continued)
- 5 -
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Development costs
10% straight line
1.6
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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:
Leasehold improvements
12.5% straight line
Plant and equipment
20% straight line
Fixtures and fittings
33.33% & 20% straight line
Computers
20% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
Assets in the course of development are not depreciated.
1.7
Impairment of fixed assets
At each reporting
period
end date, the
company
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 the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
MRDS Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2021
1
Accounting policies (continued)
- 6 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Stocks
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.
1.9
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.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
MRDS Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2021
1
Accounting policies (continued)
- 7 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
MRDS Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2021
1
Accounting policies (continued)
- 8 -
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.16
Government grants
Government grants are recognised at the fair value of the asset receive
d
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.
1.17
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
27
27
MRDS Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2021
- 9 -
3
Intangible fixed assets
Development costs
£
Cost
At 1 January 2021 and 31 December 2021
254,467
Amortisation and impairment
At 1 January 2021
41,163
Amortisation charged for the year
25,447
At 31 December 2021
66,610
Carrying amount
At 31 December 2021
187,857
At 31 December 2020
213,304
4
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 January 2021
35,613
288,540
26,865
47,020
398,038
Additions
43,454
1,731
45,185
Disposals
(50,726)
(1,350)
(11,242)
(63,318)
At 31 December 2021
35,613
281,268
25,515
37,509
379,905
Depreciation and impairment
At 1 January 2021
15,261
202,322
26,336
43,164
287,083
Depreciation charged in the year
4,452
45,648
408
2,242
52,750
Eliminated in respect of disposals
(38,154)
(1,350)
(10,817)
(50,321)
At 31 December 2021
19,713
209,816
25,394
34,589
289,512
Carrying amount
At 31 December 2021
15,900
71,452
121
2,920
90,393
At 31 December 2020
20,352
86,218
529
3,856
110,955
The Royal Bank of Scotland holds a floating charge over all the property and undertakings of the company.
MRDS Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2021
- 10 -
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
600,452
659,912
Other debtors
409,737
136,477
1,010,189
796,389
6
Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans and overdrafts
114,860
6,795
Trade creditors
724,228
512,202
Taxation and social security
372,804
371,057
Other creditors
1,398,759
781,913
2,610,651
1,671,967
7
Creditors: amounts falling due after more than one year
2021
2020
£
£
Bank loans and overdrafts
42,500
Other creditors
236,490
344,249
278,990
344,249
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2021
2020
£
£
317,300
428,270
MRDS Group Limited
Notes to the financial statements (continued)
for the year ended 31 December 2021
- 11 -
9
Directors' transactions
Dividends totalling £0 (2020 - £10,000) were paid in the year in respect of shares held by the company's directors.
At the balance sheet date, there was a loan due to a previous director totalling £257,417 (2020 - £257,417). The loan is subject to interest at a market rate.
The director resigned on 3 August 2020 and is no longer a shareholder.
10
Parent company
The parent company of MRDS Group Limited is Garrick Group Limited and its registered office address is 37 Albyn Place, Aberdeen, AB10 1YN.
2021-12-31
2021-01-01
false
03 March 2023
CCH Software
CCH Accounts Production 2022.300
No description of principal activity
Mr D Garrick
Mr R Garrick
Mr I McGillivray
Shepherd & Wedderburn Secretaries Limited
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