Company Registration No. 00106442 (England and Wales)
MURPHY & SON LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
MURPHY & SON LIMITED
COMPANY INFORMATION
Directors
J A Carmichael
S L Hale
B A McCluskie
Dr C J Fleming
C W R Nicholds
Secretary
S L Hale
Company number
00106442
Registered office
Alpine Street
Old Basford
Nottingham
NG6 0HQ
Auditor
UHY Hacker Young
14 Park Row
Nottingham
NG1 6GR
Bankers
Barclays Bank PLC
Basildon 9
Leicester
LE87 2BB
Solicitors
Nelsons Solicitors
Pennine House
8 Stanford Street
Nottingham
NG1 7BQ
MURPHY & SON LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 26
MURPHY & SON LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2019
- 1 -
The directors present the strategic report for the year ended 31 March 2019.
Fair review of the business
The year under review has seen a welcome increase in profit and turnover over the previous year. This has been achieved with significant progress in the site refurbishment program, namely solutions mixing area, can washing area and refurbishments to the yard and lift. The sales were notably boosted with an increase in exports and continued growth in low margin merchanted goods.
Principal risks and uncertainties
Concerns over Brexit have meant holding larger stocks in some key raw materials and the increase in debtors is largely the result of a significant pre-payment and some extended credit terms with multinationals. Both of which have reduced our cash balances, which we expect to improve during the current year.
Key performance indicators
The directors are confident that the on going refurbishment program will continue to improve productivity and be funded in house. In respect of the year ended 31 March 2019, the directors are pleased to propose a final dividend, payable in July 2019, to a record level of £6.625 per share.
S L Hale
Secretary
17 July 2019
MURPHY & SON LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2019
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2019.
Principal activities
The principal activity of the company continued to be that of consulting and manufacturing chemists.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J A Carmichael
S L Hale
B A McCluskie
Dr C J Fleming
C W R Nicholds
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid during the year amounting to £147,500.
Preference dividends were paid during the year amounting to £147,500.
Auditor
UHY Hacker Young were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual 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). 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 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 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.
MURPHY & SON LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 3 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
By order of the board
S L Hale
J A Carmichael
Secretary
Director
17 July 2019
17 July 2019
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MURPHY & SON LIMITED
- 4 -
Opinion
We have audited the financial statements of Murphy & Son Limited (the 'company') for the year ended 31 March 2019 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows 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 FRS 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 company's affairs as at 31 March 2019 and of its 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.
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 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MURPHY & SON LIMITED
- 5 -
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 our audit
:
-
the information given in the strategic report and the directors' r
eport 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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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, or returns adequate for our audit have not been received from branches not visited by us; or
-
the 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 directors'
r
esponsibilities
s
tatement, 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 is 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 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 company or to cease operations, or have no realistic alternative but to do so.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MURPHY & SON LIMITED
- 6 -
Auditor's 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 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.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
Other matters which we are required to address
The financial statements of Murphy & Son Limited for the year ended 31 March 2018 were audited by another auditor who expressed an unmodified opinion on those statements on 17 July 2018.
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.
James Simmonds (Senior Statutory Auditor)
for and on behalf of UHY Hacker Young
17 July 2019
Chartered Accountants
Statutory Auditor
MURPHY & SON LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2019
- 7 -
2019
2018
Notes
£
£
Turnover
3
10,383,463
9,048,916
Cost of sales
(6,458,170)
(5,796,519)
Gross profit
3,925,293
3,252,397
Distribution costs
(918,792)
(776,382)
Administrative expenses
(2,387,604)
(2,111,374)
Other operating income
29,985
50,451
Operating profit
4
648,882
415,092
Interest receivable and similar income
7
4,713
4,407
Profit before taxation
653,595
419,499
Tax on profit
8
(88,597)
(69,900)
Profit for the financial year
564,998
349,599
The Profit And Loss Account has been prepared on the basis that all operations are continuing operations.
MURPHY & SON LIMITED
BALANCE SHEET
AS AT
31 MARCH 2019
31 March 2019
- 8 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
11
3,668,333
3,454,833
Investment properties
12
1,130,223
1,130,223
Investments
13
200
200
4,798,756
4,585,256
Current assets
Stocks
16
2,177,758
1,245,185
Debtors
17
2,237,001
1,597,029
Cash at bank and in hand
610,395
1,043,370
5,025,154
3,885,584
Creditors: amounts falling due within one year
18
(1,965,411)
(916,123)
Net current assets
3,059,743
2,969,461
Total assets less current liabilities
7,858,499
7,554,717
Provisions for liabilities
Deferred tax liability
19
245,330
211,546
(245,330)
(211,546)
Net assets
7,613,169
7,343,171
Capital and reserves
Called up share capital
21
40,000
40,000
Non-distributable profits reserve
22
437,387
419,920
Distributable profit and loss reserves
7,135,782
6,883,251
Total equity
7,613,169
7,343,171
The financial statements were approved by the board of directors and authorised for issue on 17 July 2019 and are signed on its behalf by:
J A Carmichael
S L Hale
Director
Director
Company Registration No. 00106442
MURPHY & SON LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2019
- 9 -
Share capital
Non-distri-butable profits
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2017
40,000
468,353
6,765,219
7,273,572
Year ended 31 March 2018:
Profit and total comprehensive income for the year
-
(48,433)
398,032
349,599
Dividends
9
-
-
(280,000)
(280,000)
Balance at 31 March 2018
40,000
419,920
6,883,251
7,343,171
Year ended 31 March 2019:
Profit and total comprehensive income for the year
-
17,467
547,531
564,998
Dividends
9
-
-
(295,000)
(295,000)
Balance at 31 March 2019
40,000
437,387
7,135,782
7,613,169
MURPHY & SON LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2019
- 10 -
2019
2018
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
453,920
725,939
Income taxes paid
(52,672)
(39,778)
Net cash inflow from operating activities
401,248
686,161
Investing activities
Purchase of tangible fixed assets
(543,936)
(672,262)
Proceeds on disposal of tangible fixed assets
-
6,268
Interest received
4,713
4,407
Net cash used in investing activities
(539,223)
(661,587)
Financing activities
Dividends paid
(295,000)
(280,000)
Net cash used in financing activities
(295,000)
(280,000)
Net decrease in cash and cash equivalents
(432,975)
(255,426)
Cash and cash equivalents at beginning of year
1,043,370
1,298,796
Cash and cash equivalents at end of year
610,395
1,043,370
MURPHY & SON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
- 11 -
1
Accounting policies
Company information
Murphy & Son Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Alpine Street, Old Basford, Nottingham, NG6 0HQ.
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.
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 investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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.
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 for the provision of
professional
services is recognised by reference to
when the services were provided.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and has been fully amortised.
1.5
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.
MURPHY & SON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
1
Accounting policies
(Continued)
- 12 -
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:
Freehold land and buildings
10% to 2% on cost
Plant and equipment
20% and 10% on cost
Fixtures and fittings
20% and 10% on cost
Laboratory apparatus
20% and 10% on cost
Motor vehicles
25% on reducing balance
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 construction are not depreciated.
1.6
Investment properties
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 a
t
the reporting end date.
The surplus or deficit on revaluation is recognised in profit or loss.
Where fair value cannot be achieved without undue cost or effort, investment property is accounted for as tangible fixed assets.
1.7
Fixed asset investments
Interests in subsidiaries
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.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.8
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).
MURPHY & SON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
1
Accounting policies
(Continued)
- 13 -
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 is estimated to be less than its carrying amount, the carrying amount of the asset 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 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
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.
1.9
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.
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.
1.10
Cash at bank and in hand
Cash at bank and in hand
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.
1.11
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.
MURPHY & SON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
1
Accounting policies
(Continued)
- 14 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction
costs
.
Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
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 company
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.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from
fellow group
companies
, are
initially recognised at transaction
price
.
Financial liabilities classified as payable within one year are not amortised.
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.
Trade creditors
are recognised initially at transaction price
.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.12
Equity instruments
Share capital issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on shares are recognised as liabilities once they are no longer at the discretion of the company.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
MURPHY & SON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
1
Accounting policies
(Continued)
- 15 -
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.
1.14
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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
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 are included in the profit and loss account for the period.
MURPHY & SON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 16 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
3
Turnover and other revenue
2019
2018
£
£
Other significant revenue
Interest income
4,713
4,407
2019
2018
£
£
Turnover analysed by geographical market
UK
8,900,111
7,756,214
Rest of World
1,483,352
1,292,702
10,383,463
9,048,916
4
Operating profit
2019
2018
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
23,629
(15,301)
Fees payable to the company's auditor for the audit of the company's financial statements
31,450
14,000
Depreciation of owned tangible fixed assets
330,436
321,613
(Profit)/loss on disposal of tangible fixed assets
-
207
Cost of stocks recognised as an expense
1,118,982
1,820,282
MURPHY & SON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
4
Operating profit
(Continued)
- 17 -
Exchange differences recognised in profit or loss during the year, except for those arising on financial
instruments measured at fair value through profit or loss,
amounted to £23,629
losses
(2018 - £15,301
gain
).
Included within fee's payable to the company's auditor is £12,700 in respect of amounts due to the previous auditor.
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Directors
5
5
Production, distribution and office
59
57
64
62
Their aggregate remuneration comprised:
2019
2018
£
£
Wages and salaries
2,490,654
2,225,116
Pension costs
175,828
117,093
2,666,482
2,342,209
6
Directors' remuneration
2019
2018
£
£
Remuneration for qualifying services
394,790
331,195
Company pension contributions to defined contribution schemes
50,226
44,888
445,016
376,083
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2018 - 2).
MURPHY & SON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
6
Directors' remuneration
(Continued)
- 18 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2019
2018
£
£
Remuneration for qualifying services
183,069
153,359
7
Interest receivable and similar income
2019
2018
£
£
Interest income
Interest on bank deposits
4,713
4,407
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
4,713
4,407
8
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
55,176
53,035
Adjustments in respect of prior periods
(362)
-
Total current tax
54,814
53,035
Deferred tax
Origination and reversal of timing differences
33,783
16,865
Total tax charge
88,597
69,900
MURPHY & SON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
8
Taxation
(Continued)
- 19 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2019
2018
£
£
Profit before taxation
653,595
419,499
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
124,183
79,705
Tax effect of expenses that are not deductible in determining taxable profit
1,553
1,449
Adjustments in respect of prior years
(362)
-
Permanent capital allowances in excess of depreciation
21,720
2,166
Research and development tax credit
(35,000)
(30,323)
Other permanent differences
-
38
Deferred tax adjustments in respect of prior years
(17,467)
-
Deferred tax movement
-
16,865
Change in rates of deferred tax
(6,030)
-
Taxation charge for the year
88,597
69,900
9
Dividends
2019
2018
£
£
Total paid
295,000
280,000
MURPHY & SON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 20 -
10
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2018 and 31 March 2019
1,670,969
Amortisation and impairment
At 1 April 2018 and 31 March 2019
1,670,969
Carrying amount
At 31 March 2019
-
At 31 March 2018
-
11
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Laboratory apparatus
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2018
3,617,305
2,174,543
365,527
429,116
419,304
7,005,795
Additions
41,675
290,276
54,867
19,380
137,738
543,936
At 31 March 2019
3,658,980
2,464,819
420,394
448,496
557,042
7,549,731
Depreciation and impairment
At 1 April 2018
1,192,363
1,552,198
224,704
295,612
286,085
3,550,962
Depreciation charged in the year
112,865
115,139
50,239
13,427
38,766
330,436
At 31 March 2019
1,305,228
1,667,337
274,943
309,039
324,851
3,881,398
Carrying amount
At 31 March 2019
2,353,752
797,482
145,451
139,457
232,191
3,668,333
At 31 March 2018
2,424,942
622,345
140,823
133,504
133,219
3,454,833
12
Investment property
2019
£
Fair value
At 1 April 2018 and 31 March 2019
1,130,223
MURPHY & SON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
12
Investment property
(Continued)
- 21 -
Investment property comprises four properties based in the Nottingham area and one property based in the Wheathampstead area.
The fair value of the investment properties have been arrived at on the basis of a valuation carried out in June 2017 by FHP Property Consultants and the Directors in respect of properties based in the Nottingham area and a valuation carried out in April 2017 by Cassidy & Tate in respect of the property in the Wheathampstead area, both Chartered Surveyors are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
13
Fixed asset investments
2019
2018
Notes
£
£
Investments in subsidiaries
14
200
200
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 April 2018 & 31 March 2019
200
Carrying amount
At 31 March 2019
200
At 31 March 2018
200
14
Subsidiaries
Details of the company's subsidiaries at 31 March 2019 are as follows:
Micro-Audit Limited
Registered office: Alpine Street, Nottingham, Nottinghamshire, NG6 0HQ
Nature of business: Non-trading
Class of shares: Ordinary
Direct share holding (%): 100.00
MURPHY & SON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 22 -
15
Financial instruments
2019
2018
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
2,031,026
1,538,238
Carrying amount of financial liabilities
Measured at amortised cost
1,805,237
751,718
16
Stocks
2019
2018
£
£
Raw materials and consumables
2,177,758
1,245,185
17
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
1,716,285
1,483,656
Amounts owed by group undertakings
266,892
-
Other debtors
6,083
5,050
Prepayments and accrued income
205,975
58,791
2,195,235
1,547,497
2019
2018
Amounts falling due after more than one year:
£
£
Other debtors
41,766
49,532
Total debtors
2,237,001
1,597,029
MURPHY & SON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 23 -
18
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
1,469,889
538,979
Corporation tax
55,176
53,035
Other taxation and social security
104,998
111,370
Other creditors
7,736
7,214
Accruals and deferred income
327,612
205,525
1,965,411
916,123
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2019
2018
Balances:
£
£
Accelerated capital allowances
197,270
146,020
Revaluations
48,060
65,526
245,330
211,546
2019
Movements in the year:
£
Liability at 1 April 2018
211,546
Charge to profit or loss
33,784
Liability at 31 March 2019
245,330
MURPHY & SON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 24 -
20
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
175,828
117,093
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
21
Share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
20,000 Ordinary shares of £1 each
20,000
20,000
20,000
20,000
Preference share capital
Issued and fully paid
20,000 Dividends paid on Preference shares of £1 each
20,000
20,000
20,000
20,000
22
Non-distributable profits reserve
2019
2018
£
£
At the beginning of the year
419,920
468,353
Non distributable profits in the year
17,467
(48,433)
At the end of the year
437,387
419,920
The non-distributable profits reserve relates to revaluations of investment properties.
MURPHY & SON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 25 -
23
Capital commitments
Amounts contracted for but not provided in the financial statements:
2019
2018
£
£
Acquisition of tangible fixed assets
86,510
-
24
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows:
2019
2018
£
£
Aggregate compensation
445,016
375,073
25
Directors' transactions
Dividends totalling £553 (2018 - £525) were paid in the year in respect of shares held by the company's directors.
26
Controlling party
In the opinion of the Board of Directors, the ultimate controlling party are The Trustees of A J Murphy Deceased, of which the trustees, Mr J A Carmichael, Mr S L Hale, Mr B A McCluskie, Dr C J Fleming, and Mr C W R Nicholds are also directors of Murphy & Son Limited.
MURPHY & SON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 26 -
27
Cash generated from operations
2019
2018
£
£
Profit for the year after tax
564,998
349,599
Adjustments for:
Taxation charged
88,597
69,900
Investment income
(4,713)
(4,407)
(Gain)/loss on disposal of tangible fixed assets
-
207
Depreciation and impairment of tangible fixed assets
330,436
321,613
Movements in working capital:
(Increase) in stocks
(932,573)
(29,397)
(Increase) in debtors
(639,972)
(151,537)
Increase in creditors
1,047,147
169,961
Cash generated from operations
453,920
725,939
2019-03-31
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false
CCH Software
CCH Accounts Production 2019.301
J A Carmichael
B A McCluskie
Dr C J Fleming
C W R Nicholds
C W R Nicholds
S L Hale
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