Malin Group Limited - Limited company accounts 20.1

Malin Group Limited - Limited company accounts 20.1


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REGISTERED NUMBER: SC571623 (Scotland)
















Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 30 September 2020

for

Malin Group Limited

Malin Group Limited (Registered number: SC571623)






Contents of the Consolidated Financial Statements
for the Year Ended 30 September 2020




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Consolidated Statement of Comprehensive Income 7

Consolidated Balance Sheet 8

Company Balance Sheet 9

Consolidated Statement of Changes in Equity 10

Company Statement of Changes in Equity 11

Consolidated Cash Flow Statement 12

Notes to the Consolidated Cash Flow Statement 13

Notes to the Consolidated Financial Statements 14


Malin Group Limited

Company Information
for the Year Ended 30 September 2020







DIRECTORS: J A MacSween
S R Thornley
L McDougall





REGISTERED OFFICE: South Rotunda
100 Govan Road
Glasgow
G51 1AY





REGISTERED NUMBER: SC571623 (Scotland)





AUDITORS: McLay McAlister & McGibbon LLP
Chartered Accountants and Statutory Auditors
145 St Vincent Street
Glasgow
G2 5JF

Malin Group Limited (Registered number: SC571623)

Group Strategic Report
for the Year Ended 30 September 2020

The directors present their strategic report of the company and the group for the year ended 30 September 2020.

REVIEW OF BUSINESS
The directors report that the loss sustained in the year is caused in part by the impact of COVID-19 on the business. COVID-19 caused delay in completion of contracted work, a reduction in sales order throughput and a sizeable unrealised loss on revaluation of the listed investments held. This significantly impacted on our ability to return a profit in the year.

PRINCIPAL RISKS AND UNCERTAINTIES
Management continually monitor the key risks facing the company together with assessing the controls used for managing these risks. The board of directors formally reviews and documents the principle risks facing the business at least annually.

The principal risks and uncertainties facing the company are as follows:

COVID-19 - whilst the worldwide position appears to be stabilising, ongoing uncertainty around COVID-19 continues to create uncertainty for the business, whether it be customers pausing projects or delaying contract awards or the supply chain being able to fulfil their obligations to us as a customer. The COVID-19 position is being continually monitored by the Group to ensure we are well positioned to deal with any further COVID restrictions and their impact.

Economic Downturn - the group acknowledges the importance of maintaining close relationships with its key customers and suppliers in order to be able to identify the early signs of potential financial difficulties.

KEY PERFORMANCE INDICATORS
The directors of Malin Group Limited have considered the issue of key performance indicators (KPI's) as a measure of performance and have concluded that profit before taxation is the most appropriate measure.

ON BEHALF OF THE BOARD:





J A MacSween - Director


30 April 2021

Malin Group Limited (Registered number: SC571623)

Report of the Directors
for the Year Ended 30 September 2020

The directors present their report with the financial statements of the company and the group for the year ended 30 September 2020.

DIVIDENDS
No dividends will be distributed for the year ended 30 September 2020.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 October 2019 to the date of this report.

J A MacSween
S R Thornley

Other changes in directors holding office are as follows:

L McDougall - resigned 1 September 2020

L McDougall was appointed as a director after 30 September 2020 but prior to the date of this report.

DONATIONS
Donations to local charities totalling £12,984 were made by the group as a whole during the period.

LAND REMEDIATION
During the year ended 30 September 2018 the company purchased land at Carless. The land was previously the site of an oil fuel depot and refinery. Work to remediate the land is underway. It is difficult at this time to predict how long the project will take and the potential cost.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Malin Group Limited (Registered number: SC571623)

Report of the Directors
for the Year Ended 30 September 2020


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:





J A MacSween - Director


30 April 2021

Report of the Independent Auditors to the Members of
Malin Group Limited

Opinion
We have audited the financial statements of Malin Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2020 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 30 September 2020 and of the group's loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
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 group'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.

Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Malin Group Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Allan G Ramsay (Senior Statutory Auditor)
for and on behalf of McLay McAlister & McGibbon LLP
Chartered Accountants and Statutory Auditors
145 St Vincent Street
Glasgow
G2 5JF

3 May 2021

Malin Group Limited (Registered number: SC571623)

Consolidated Statement of Comprehensive Income
for the Year Ended 30 September 2020

30.9.20 30.9.19
Notes £    £   

TURNOVER 7,303,624 11,838,607

Cost of sales (4,206,226 ) (6,588,811 )
GROSS PROFIT 3,097,398 5,249,796

Administrative expenses (4,323,844 ) (4,055,462 )
(1,226,446 ) 1,194,334

Other operating income 294,327 15,115
OPERATING (LOSS)/PROFIT 4 (932,119 ) 1,209,449

Income from fixed asset investments 76,003 81,814
Interest receivable and similar income 7,593 17,639
(848,523 ) 1,308,902
Amounts written off investments 5 (257,239 ) 49,262
(1,105,762 ) 1,358,164

Interest payable and similar expenses 6 (394 ) (2,431 )
(LOSS)/PROFIT BEFORE TAXATION (1,106,156 ) 1,355,733

Tax on (loss)/profit 7 369,950 (160,442 )
(LOSS)/PROFIT FOR THE FINANCIAL
YEAR

(736,206

)

1,195,291

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(736,206

)

1,195,291

(Loss)/profit attributable to:
Owners of the parent (781,835 ) 1,450,648
Non-controlling interests 45,629 (255,357 )
(736,206 ) 1,195,291

Total comprehensive income attributable to:
Owners of the parent (781,835 ) 1,450,648
Non-controlling interests 45,629 (255,357 )
(736,206 ) 1,195,291

Malin Group Limited (Registered number: SC571623)

Consolidated Balance Sheet
30 September 2020

30.9.20 30.9.19
Notes £    £   
FIXED ASSETS
Tangible assets 9 4,438,461 4,337,585
Investments 10
Interest in joint venture
Share of gross assets 4,258 -
4,258 -
Other investments 2,110,108 2,058,597
6,552,827 6,396,182

CURRENT ASSETS
Stocks 11 299,547 20,785
Debtors 12 4,344,193 4,383,119
Cash at bank and in hand 5,238,263 6,669,391
9,882,003 11,073,295
CREDITORS
Amounts falling due within one year 13 (4,832,194 ) (5,135,364 )
NET CURRENT ASSETS 5,049,809 5,937,931
TOTAL ASSETS LESS CURRENT
LIABILITIES

11,602,636

12,334,113

PROVISIONS FOR LIABILITIES 16 (18,444 ) (13,715 )
NET ASSETS 11,584,192 12,320,398

CAPITAL AND RESERVES
Called up share capital 17 1,513 1,513
Capital redemption reserve 18 100 100
Retained earnings 18 11,960,029 12,741,864
SHAREHOLDERS' FUNDS 11,961,642 12,743,477

NON-CONTROLLING INTERESTS 19 (377,450 ) (423,079 )
TOTAL EQUITY 11,584,192 12,320,398

The financial statements were approved by the Board of Directors and authorised for issue on 30 April 2021 and were signed on its behalf by:





J A MacSween - Director


Malin Group Limited (Registered number: SC571623)

Company Balance Sheet
30 September 2020

30.9.20 30.9.19
Notes £    £   
FIXED ASSETS
Tangible assets 9 2,163,654 31,890
Investments 10 25,506,817 25,848,138
27,670,471 25,880,028

CURRENT ASSETS
Debtors 12 5,509,192 5,928,861
Cash at bank 577,343 154,575
6,086,535 6,083,436
CREDITORS
Amounts falling due within one year 13 (21,111,155 ) (17,299,718 )
NET CURRENT LIABILITIES (15,024,620 ) (11,216,282 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

12,645,851

14,663,746

PROVISIONS FOR LIABILITIES 16 (8,848 ) (5,740 )
NET ASSETS 12,637,003 14,658,006

CAPITAL AND RESERVES
Called up share capital 17 1,513 1,513
Share premium 12,120,640 12,120,640
Retained earnings 514,850 2,535,853
SHAREHOLDERS' FUNDS 12,637,003 14,658,006

Company's (loss)/profit for the financial year (2,021,003 ) 2,562,199

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 30 April 2021 and were signed on its behalf by:





J A MacSween - Director


Malin Group Limited (Registered number: SC571623)

Consolidated Statement of Changes in Equity
for the Year Ended 30 September 2020

Called up Capital
share Retained redemption
capital earnings reserve
£    £    £   

Balance at 1 October 2018 1,513 11,285,857 100

Changes in equity
Total comprehensive income - 1,456,007 -
Balance at 30 September 2019 1,513 12,741,864 100

Changes in equity
Total comprehensive income - (781,835 ) -
Balance at 30 September 2020 1,513 11,960,029 100
Fair
value Non-controlling Total
reserve Total interests equity
£    £    £    £   

Balance at 1 October 2018 65,999 11,353,469 (167,722 ) 11,185,747

Changes in equity
Total comprehensive income (65,999 ) 1,390,008 (255,357 ) 1,134,651
Balance at 30 September 2019 - 12,743,477 (423,079 ) 12,320,398

Changes in equity
Total comprehensive income - (781,835 ) 45,629 (736,206 )
Balance at 30 September 2020 - 11,961,642 (377,450 ) 11,584,192

Malin Group Limited (Registered number: SC571623)

Company Statement of Changes in Equity
for the Year Ended 30 September 2020

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   

Balance at 1 October 2018 1,513 (26,346 ) 12,392,430 12,367,597

Changes in equity
Issue of share capital - - (271,790 ) (271,790 )
Total comprehensive income - 2,562,199 - 2,562,199
Balance at 30 September 2019 1,513 2,535,853 12,120,640 14,658,006

Changes in equity
Total comprehensive income - (2,021,003 ) - (2,021,003 )
Balance at 30 September 2020 1,513 514,850 12,120,640 12,637,003

Malin Group Limited (Registered number: SC571623)

Consolidated Cash Flow Statement
for the Year Ended 30 September 2020

30.9.20 30.9.19
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (961,379 ) 1,235,577
Interest paid - (1,756 )
Interest element of hire purchase payments
paid

(394

)

(675

)
Tax paid (90,552 ) (10,244 )
Taxation refund 230,007 -
Net cash from operating activities (822,318 ) 1,222,902

Cash flows from investing activities
Purchase of tangible fixed assets (321,968 ) (727,495 )
Purchase of fixed asset investments (548,761 ) (193,953 )
Sale of tangible fixed assets 23,174 366,779
Sale of fixed asset investments 202,117 98,750
Interest received 7,593 17,639
Dividends received 76,003 81,814
Net cash from investing activities (561,842 ) (356,466 )

Cash flows from financing activities
Capital repayments in year (1,968 ) (3,374 )
Amount withdrawn by directors (45,000 ) -
Net cash from financing activities (46,968 ) (3,374 )

(Decrease)/increase in cash and cash equivalents (1,431,128 ) 863,062
Cash and cash equivalents at beginning of
year

2

6,669,391

5,806,329

Cash and cash equivalents at end of year 2 5,238,263 6,669,391

Malin Group Limited (Registered number: SC571623)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 30 September 2020

1. RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
30.9.20 30.9.19
£    £   
(Loss)/profit before taxation (1,106,156 ) 1,355,733
Depreciation charges 203,221 197,563
Loss/(profit) on disposal of fixed assets 28,335 (3,283 )
Loss/(gain) on revaluation of fixed assets 257,239 (49,262 )
Finance costs 394 2,431
Finance income (83,596 ) (99,453 )
(700,563 ) 1,403,729
Increase in stocks (278,762 ) (17,513 )
Decrease/(increase) in trade and other debtors 80,741 (88,811 )
Decrease in trade and other creditors (62,795 ) (61,828 )
Cash generated from operations (961,379 ) 1,235,577

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 September 2020
30.9.20 1.10.19
£    £   
Cash and cash equivalents 5,238,263 6,669,391
Year ended 30 September 2019
30.9.19 1.10.18
£    £   
Cash and cash equivalents 6,669,391 5,806,329


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.10.19 Cash flow At 30.9.20
£    £    £   
Net cash
Cash at bank and in hand 6,669,391 (1,431,128 ) 5,238,263
6,669,391 (1,431,128 ) 5,238,263
Debt
Finance leases (1,968 ) 1,968 -
(1,968 ) 1,968 -
Total 6,667,423 (1,429,160 ) 5,238,263

Malin Group Limited (Registered number: SC571623)

Notes to the Consolidated Financial Statements
for the Year Ended 30 September 2020

1. STATUTORY INFORMATION

Malin Group Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).



2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Due to the current economic climate arising from Covid-19 the Directors recognise that there are certain matters that might influence the business that are out with the group's control. The Directors are therefore monitoring the Covid-19 situation and managing its effect on the business on a continuous basis.

Given the information presented the Directors continue to adopt a going concern basis in preparing the financial statements.

Basis of consolidation
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue recognition
Turnover in respect of heavy lift and logistics contracts is assessed on a contract by contract basis, whereby turnover and related costs are reflected in the profit and loss account in accordance with the stage of completion of the contract.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost
Improvements to property - over the term of the lease
Plant and machinery - 20% on cost and 10% on cost
Fixtures and fittings - 100% on cost, 33% on cost and 15% on cost
Motor vehicles - 25% on cost and 15% on cost
Computer equipment - 33% on cost

The group's policy is to review the remaining useful lives and residual value of all tangible fixed assets on an on-going basis and to adjust the depreciation charge to reflect the remaining useful economic life and residual value.

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Malin Group Limited (Registered number: SC571623)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2020

2. ACCOUNTING POLICIES - continued

Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash in hand and bank overdrafts.

Debtors
Trade debtors and other debtors are recognised at the settlement amount due with appropriate allowances for any irrecoverable amounts when there is objective evidence the asset is impaired.

Creditors
Trade creditors and other creditors are recognised where the company has a present obligation resulting from a past event and are recognised at the settlement amount due after allowing for any trade discounts due.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of future payments is treated as a liability.

Malin Group Limited (Registered number: SC571623)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2020

2. ACCOUNTING POLICIES - continued

Investments in subsidiaries
Investments in subsidiaries are stated at cost less provision for diminution in value.

Investments in joint ventures
Investments in joint ventures are stated at cost.

Investments
Fixed asset investments are stated at market value.

3. EMPLOYEES AND DIRECTORS
30.9.20 30.9.19
£    £   
Wages and salaries 3,067,683 3,090,610
Social security costs 324,794 307,596
Other pension costs 153,966 141,309
3,546,443 3,539,515

The average number of employees during the year was as follows:
30.9.20 30.9.19

Administration 18 15

The average number of employees by undertakings that were proportionately consolidated during the year was 86 (2019 - 83 ) .

30.9.20 30.9.19
£    £   
Directors' remuneration 235,797 248,200
Directors' pension contributions to money purchase schemes 22,901 6,842

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 4 4

Information regarding the highest paid director is as follows:
30.9.20 30.9.19
£    £   
Emoluments etc 60,938 65,000
Pension contributions to money purchase schemes 6,258 552

4. OPERATING (LOSS)/PROFIT

The operating profit (2018 - operating loss) is stated after charging/(crediting):
30.9.1930.9.18
££
Depreciation - owned assets194,136174,849
Depreciation - leased assets3,4272,589
Profit on disposal of fixed assets(3,283)(9,341)
Auditors' remuneration48,52314,500
Foreign exchange differences(47,416)(8,885)

Malin Group Limited (Registered number: SC571623)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2020

5. AMOUNTS WRITTEN OFF INVESTMENTS
30.9.20 30.9.19
£    £   
Fair value movements 257,239 (49,262 )

6. INTEREST PAYABLE AND SIMILAR EXPENSES
30.9.20 30.9.19
£    £   
Bank interest - 36
Other interest - 1,720
Hire purchase 394 675
394 2,431

7. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss for the year was as follows:
30.9.20 30.9.19
£    £   
Current tax:
UK corporation tax - 173,411
Adjustment re prior periods (209,861 ) -
R&D Tax Credit claimed (164,818 ) -
Total current tax (374,679 ) 173,411

Deferred tax 4,729 (12,969 )
Tax on (loss)/profit (369,950 ) 160,442

UK corporation tax has been charged at 19% (2019 - 19%).

Malin Group Limited (Registered number: SC571623)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2020

7. TAXATION - continued

Reconciliation of total tax (credit)/charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

30.9.20 30.9.19
£    £   
(Loss)/profit before tax (1,106,156 ) 1,355,733
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
19% (2019 - 19%)

(210,170

)

257,589

Effects of:
Expenses not deductible for tax purposes 60,419 2,376
Income not taxable for tax purposes (15,436 ) (25,665 )
Depreciation in excess of capital allowances 28,829 14,627
Utilisation of tax losses 70,364 (564 )
Adjustments to tax charge in respect of previous periods (209,862 ) -
R&D Tax Credits claimed (164,818 ) -
Land remediation relief (35,853 ) (174,776 )
Unused tax losses 101,848 99,824
Deferred tax 4,729 (12,969 )
Total tax (credit)/charge (369,950 ) 160,442

8. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


9. TANGIBLE FIXED ASSETS

Group
Improvements
Freehold to Plant and
property property machinery
£    £    £   
COST
At 1 October 2019 1,933,504 2,484,037 97,054
Additions 125,800 38,486 98,051
Disposals - - (27,123 )
At 30 September 2020 2,059,304 2,522,523 167,982
DEPRECIATION
At 1 October 2019 - 242,419 42,576
Charge for year - 127,645 17,475
Eliminated on disposal - 4 (10,792 )
At 30 September 2020 - 370,068 49,259
NET BOOK VALUE
At 30 September 2020 2,059,304 2,152,455 118,723
At 30 September 2019 1,933,504 2,241,618 54,478

Malin Group Limited (Registered number: SC571623)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2020

9. TANGIBLE FIXED ASSETS - continued

Group

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 October 2019 208,093 48,367 115,284 4,886,339
Additions 8,704 24 50,905 321,970
Disposals (4,022 ) (32,760 ) - (63,905 )
At 30 September 2020 212,775 15,631 166,189 5,144,404
DEPRECIATION
At 1 October 2019 154,614 41,332 67,813 548,754
Charge for year 20,396 6,099 31,606 203,221
Eliminated on disposal (2,508 ) (32,736 ) - (46,032 )
At 30 September 2020 172,502 14,695 99,419 705,943
NET BOOK VALUE
At 30 September 2020 40,273 936 66,770 4,438,461
At 30 September 2019 53,479 7,035 47,471 4,337,585

Included within Motor Vehicles at 30 September 2020 are assets held under hire purchase contracts with a net book value of £Nil (2019: £3,641).

Company
Improvements Fixtures
to and Computer
property fittings equipment Totals
£    £    £    £   
COST
At 1 October 2019 - 5,822 31,491 37,313
Additions - 2,359 27,491 29,850
Transfer 2,490,687 - - 2,490,687
At 30 September 2020 2,490,687 8,181 58,982 2,557,850
DEPRECIATION
At 1 October 2019 - 653 4,770 5,423
Charge for year 20,756 978 14,192 35,926
Transfer 352,847 - - 352,847
At 30 September 2020 373,603 1,631 18,962 394,196
NET BOOK VALUE
At 30 September 2020 2,117,084 6,550 40,020 2,163,654
At 30 September 2019 - 5,169 26,721 31,890

Malin Group Limited (Registered number: SC571623)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2020

10. FIXED ASSET INVESTMENTS

Group
Interest
in joint Listed Unlisted
venture investments investments Totals
£    £    £    £   
COST OR VALUATION
At 1 October 2019 - 2,049,384 9,213 2,058,597
Additions 4,258 544,503 - 548,761
Disposals - (235,753 ) - (235,753 )
Revaluations - (257,239 ) - (257,239 )
At 30 September 2020 4,258 2,100,895 9,213 2,114,366
NET BOOK VALUE
At 30 September 2020 4,258 2,100,895 9,213 2,114,366
At 30 September 2019 - 2,049,384 9,213 2,058,597

The fixed asset investments were valued at fair value by Adam & Company at 30 September 2020.
Company
Shares in
group
undertakings
£   
COST
At 1 October 2019 25,848,138
Impairments (341,321 )
At 30 September 2020 25,506,817
NET BOOK VALUE
At 30 September 2020 25,506,817
At 30 September 2019 25,848,138

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Malin Group Investments Limited
Registered office: South Rotunda, 100 Govan Road, Glasgow, G51 1AY
Nature of business: Non-trading
%
Class of shares: holding
Ordinary 100.00

Malin Marine Equipment Limited
Registered office: South Rotunda, 100 Govan Road, Glasgow, G51 1AY
Nature of business: Supply of marine equipment
%
Class of shares: holding
Ordinary 100.00

Malin Group Limited (Registered number: SC571623)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2020

10. FIXED ASSET INVESTMENTS - continued

Malin Abram Limited
Registered office: South Rotunda, 100 Govan Road, Glasgow, G51 1AY
Nature of business: Sea and coastal freight water transport
%
Class of shares: holding
Ordinary 100.00

Malin Marine Consultants Limited
Registered office: South Rotunda, 100 Govan Road, Glasgow, G51 1AY
Nature of business: Engineering consultancy services
%
Class of shares: holding
Ordinary 100.00

Malin Group Properties Limited
Registered office: South Rotunda, 100 Govan Road, Glasgow, G51 1AY
Nature of business: Land remediation
%
Class of shares: holding
Ordinary 100.00

Malin Marine Services Limited
Registered office: South Rotunda, 100 Govan Road, Glasgow, G51 1AY
Nature of business: Engineering consultancy services
%
Class of shares: holding
Ordinary 51.00

Malin Fabrication Ltd
Registered office: South Rotunda, 100 Govan Road, Glasgow, G51 1AY
Nature of business: Metal fabrication
%
Class of shares: holding
Ordinary 85.00

John Tracey Welding Limited
Registered office: South Rotunda, 100 Govan Road, Glasgow, G51 1AY
Nature of business: Welding
%
Class of shares: holding
Ordinary 100.00

Malin Newbuild Limited
Registered office: South Rotunda, 100 Govan Road, Glasgow, G51 1AY
Nature of business: Manufacture of metal structures
%
Class of shares: holding
Ordinary 100.00

Joint ventures

Malin Integrated Solutions
Registered office: Stags Court, 1B High Street, Thames Ditton, Surrey, KT7 0SD
Nature of business: Marine Heavylift, Salvage and Offshore projects
%
Class of shares: holding
Ordinary 33.33

Malin Group Limited (Registered number: SC571623)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2020

10. FIXED ASSET INVESTMENTS - continued

Augustea Malin Malts Limited
Registered office: Vault 5-6, Upper Floor, Pinto Wharf, Floriana, Malta
Nature of business: Dormant
%
Class of shares: holding
Ordinary 50.00


11. STOCKS

Group
30.9.20 30.9.19
£    £   
Stocks 80,058 3,272
Work-in-progress 219,489 17,513
299,547 20,785

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
30.9.20 30.9.19 30.9.20 30.9.19
£    £    £    £   
Trade debtors 875,696 1,091,621 171,187 -
Amounts owed by group undertakings - - 3,246,048 4,202,502
Other debtors 1,939,207 1,601,047 1,932,408 1,567,415
Tax 61,815 - - -
Prepayments and accrued income 1,467,475 1,690,451 159,549 158,944
4,344,193 4,383,119 5,509,192 5,928,861

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
30.9.20 30.9.19 30.9.20 30.9.19
£    £    £    £   
Hire purchase contracts (see note 14) - 1,968 - -
Trade creditors 493,615 146,711 66,008 5,046
Amounts owed to group undertakings - - 18,062,135 14,179,595
Tax - 173,411 - -
Social security and other taxes 110,958 121,193 111,166 121,037
VAT 123,469 144,852 42,124 110,407
Other creditors 26,841 63,580 23,681 21,981
Directors' current accounts 2,741,351 2,806,351 2,741,351 2,806,351
Accrued expenses 1,335,960 1,677,298 64,690 55,301
4,832,194 5,135,364 21,111,155 17,299,718

Malin Group Limited (Registered number: SC571623)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2020

14. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
30.9.20 30.9.19
£    £   
Net obligations repayable:
Within one year - 1,968

15. SECURED DEBTS

The following secured debts are included within creditors:

Group
30.9.20 30.9.19
£    £   
Hire purchase contracts - 1,968

Hire purchase creditors are secured over the assets to which they relate.

16. PROVISIONS FOR LIABILITIES

Group Company
30.9.20 30.9.19 30.9.20 30.9.19
£    £    £    £   
Deferred tax 18,444 13,715 8,848 5,740

Group
Deferred
tax
£   
Balance at 1 October 2019 13,715
Charge to Statement of Comprehensive Income during year 4,729
Balance at 30 September 2020 18,444

Company
Deferred
tax
£   
Balance at 1 October 2019 5,740
Charge to Income Statement during year 3,108
Balance at 30 September 2020 8,848

Malin Group Limited (Registered number: SC571623)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2020

17. CALLED UP SHARE CAPITAL


Allotted, issued and fully paid:
Number: Class: Nominal 30.9.20 30.9.19
value: £    £   
1,513 Ordinary £1 1,513 1,513

18. RESERVES

Group
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 October 2019 12,741,864 100 12,741,964
Deficit for the year (781,835 ) (781,835 )
At 30 September 2020 11,960,029 100 11,960,129


19. NON-CONTROLLING INTERESTS

G Tait owns 49% of the issued share capital of Malin Marine Limited and 15% of the issued share capital of Malin Fabrication Limited.