Malin Group Limited - Limited company accounts 23.1

Malin Group Limited - Limited company accounts 23.1


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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 2022

for

Malin Group Limited

Malin Group Limited (Registered number: SC571623)






Contents of the Consolidated Financial Statements
for the Year Ended 30 September 2022




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Consolidated Statement of Comprehensive Income 8

Consolidated Balance Sheet 9

Company Balance Sheet 10

Consolidated Statement of Changes in Equity 11

Company Statement of Changes in Equity 12

Consolidated Cash Flow Statement 13

Notes to the Consolidated Cash Flow Statement 14

Notes to the Consolidated Financial Statements 15


Malin Group Limited

Company Information
for the Year Ended 30 September 2022







DIRECTORS: J A MacSween
L McDougall
S R Thornley





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 2022

The directors present their strategic report of the company and the group for the year ended 30 September 2022.

REVIEW OF BUSINESS
The directors report a profit for the year, before taxation, of £976,616 (2021: loss, before taxation, £704,936). The result was behind expectation due a large heavy-lift operation being rescheduled until after the year-end.

Multiple subsidiaries have delivered a number of large projects for key clients across the Group with varying profitability. As part of the Boards' duties, we will be reflecting on this and adjusting our business planning accordingly.

The outlook for the financial year 2022-23 is positive with the CD01 barge being a remarkable addition to the Malin Group offering.

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 principal risks facing the business at least annually.

A key risk for our business continues to be the ability to find the required number of suitably qualified and experienced personnel to deliver on our projects. Ongoing business development planning reflects this critical risk. Commodity prices also remain volatile which the Group looks to mitigate through pricing caveats and forward planning.

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 operating profit is the most appropriate measure.

ON BEHALF OF THE BOARD:





J A MacSween - Director


28 June 2023

Malin Group Limited (Registered number: SC571623)

Report of the Directors
for the Year Ended 30 September 2022

The directors present their report with the financial statements of the company and the group for the year ended 30 September 2022.

DIVIDENDS
No dividends will be distributed for the year ended 30 September 2022.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 October 2021 to the date of this report.

J A MacSween
L McDougall
S R Thornley

DONATIONS
Donations to local charities totalling £15,242 (2021: £12,886) 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 2022


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


28 June 2023

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 2022 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 2022 and of the group's 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.

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
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
- the nature of the industry and sector, control environment and business performance;
- results of our enquiries of management about their own identification and assessment of the risks and irregularities;
- any matters we identified having reviewed the company's internal controls established to mitigate risks of fraud or non- compliance with laws and regulations;
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

We obtained an understanding of the legal and regulatory framework that the company operates in. The key laws and regulations we considered included the UK Companies Act and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. In addition we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate. These included health and safety, GDPR and employment laws. Auditing standards limit the required audit procedures to identify non - compliance with these laws and regulations to enquiry of the directors, inspection of regulatory and legal correspondence, if any, and review of minutes of meetings.These limited procedures did not identify actual or suspected non-compliance.

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.

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


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.




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

29 June 2023

Malin Group Limited (Registered number: SC571623)

Consolidated Statement of Comprehensive Income
for the Year Ended 30 September 2022

30.9.22 30.9.21
Notes £    £   

TURNOVER 26,337,981 25,995,832

Cost of sales (21,838,604 ) (23,395,079 )
GROSS PROFIT 4,499,377 2,600,753

Administrative expenses (4,012,622 ) (2,403,005 )
486,755 197,748

Other operating income 196,470 45,350
OPERATING PROFIT 4 683,225 243,098

Write-off connected party loan 5 2,279 (1,138,137 )
685,504 (895,039 )

Income from fixed asset investments 79,240 85,219
Interest receivable and similar income 787 140
765,531 (809,680 )
Share of (profit)/loss of JV 6 429,983 (121,978 )
Gain/(loss) on revaluation of investments (211,243 ) 226,722
984,271 (704,936 )

Interest payable and similar expenses 7 (7,655 ) -
PROFIT/(LOSS) BEFORE TAXATION 976,616 (704,936 )

Tax on profit/(loss) 8 (29,728 ) 28,793
PROFIT/(LOSS) FOR THE FINANCIAL
YEAR

946,888

(676,143

)

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

946,888

(676,143

)

Profit/(loss) attributable to:
Owners of the parent 946,888 (676,143 )

Total comprehensive income attributable to:
Owners of the parent 946,888 (676,143 )

Malin Group Limited (Registered number: SC571623)

Consolidated Balance Sheet
30 September 2022

30.9.22 30.9.21
Notes £    £   
FIXED ASSETS
Tangible assets 10 4,845,314 4,915,006
Investments 11
Interest in joint venture
Share of gross assets 313,006 -
Share of gross liabilities - (116,978 )
313,006 (116,978 )
Interest in associate 16,800 -
Other investments 2,188,042 2,361,930
7,363,162 7,159,958

CURRENT ASSETS
Stocks 12 212,960 430,035
Debtors 13 10,062,993 7,828,654
Cash at bank and in hand 4,584,797 3,962,869
14,860,750 12,221,558
CREDITORS
Amounts falling due within one year 14 (10,327,615 ) (8,473,658 )
NET CURRENT ASSETS 4,533,135 3,747,900
TOTAL ASSETS LESS CURRENT
LIABILITIES

11,896,297

10,907,858

CREDITORS
Amounts falling due after more than one
year

15

(41,551

)

-

PROVISIONS FOR LIABILITIES 18 (44,920 ) (44,920 )
NET ASSETS 11,809,826 10,862,938

CAPITAL AND RESERVES
Called up share capital 19 1,513 1,513
Capital redemption reserve 20 100 100
Retained earnings 20 11,808,213 10,861,325
SHAREHOLDERS' FUNDS 11,809,826 10,862,938

The financial statements were approved by the Board of Directors and authorised for issue on 28 June 2023 and were signed on its behalf by:





J A MacSween - Director


Malin Group Limited (Registered number: SC571623)

Company Balance Sheet
30 September 2022

30.9.22 30.9.21
Notes £    £   
FIXED ASSETS
Tangible assets 10 1,928,965 2,037,672
Investments 11 26,318,863 26,302,063
28,247,828 28,339,735

CURRENT ASSETS
Debtors 13 4,648,930 4,741,217
Cash at bank 303,659 183,878
4,952,589 4,925,095
CREDITORS
Amounts falling due within one year 14 (22,280,337 ) (21,918,531 )
NET CURRENT LIABILITIES (17,327,748 ) (16,993,436 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

10,920,080

11,346,299

CAPITAL AND RESERVES
Called up share capital 19 1,513 1,513
Share premium 12,120,640 12,120,640
Retained earnings (1,202,073 ) (775,854 )
SHAREHOLDERS' FUNDS 10,920,080 11,346,299

Company's loss for the financial year (426,219 ) (1,290,704 )

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 28 June 2023 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 2022

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

Balance at 1 October 2020 1,513 11,960,029 100

Changes in equity
Total comprehensive income - (1,098,704 ) -
1,513 10,861,325 100
Acquisition of non-controlling
interest

-

-

-
Balance at 30 September 2021 1,513 10,861,325 100

Changes in equity
Total comprehensive income - 946,888 -
Balance at 30 September 2022 1,513 11,808,213 100
Non-controlling Total
Total interests equity
£    £    £   

Balance at 1 October 2020 11,961,642 (377,450 ) 11,584,192

Changes in equity
Total comprehensive income (1,098,704 ) - (1,098,704 )
10,862,938 (377,450 ) 10,485,488
Acquisition of non-controlling
interest

-

377,450

377,450
Balance at 30 September 2021 10,862,938 - 10,862,938

Changes in equity
Total comprehensive income 946,888 - 946,888
Balance at 30 September 2022 11,809,826 - 11,809,826

Malin Group Limited (Registered number: SC571623)

Company Statement of Changes in Equity
for the Year Ended 30 September 2022

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

Balance at 1 October 2020 1,513 514,850 12,120,640 12,637,003

Changes in equity
Total comprehensive income - (1,290,704 ) - (1,290,704 )
Balance at 30 September 2021 1,513 (775,854 ) 12,120,640 11,346,299

Changes in equity
Total comprehensive income - (426,219 ) - (426,219 )
Balance at 30 September 2022 1,513 (1,202,073 ) 12,120,640 10,920,080

Malin Group Limited (Registered number: SC571623)

Consolidated Cash Flow Statement
for the Year Ended 30 September 2022

30.9.22 30.9.21
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 841,100 (488,654 )
Interest paid (6,111 ) -
Interest element of hire purchase payments
paid

(1,544

)

-
Taxation refund 59,061 26,707
Net cash from operating activities 892,506 (461,947 )

Cash flows from investing activities
Purchase of tangible fixed assets (228,740 ) (788,243 )
Purchase of fixed asset investments (469,375 ) (132,151 )
Sale of tangible fixed assets 7,878 -
Sale of fixed asset investments 397,870 36,582
Interest received 787 140
Dividends received 79,240 85,219
Net cash from investing activities (212,340 ) (798,453 )

Cash flows from financing activities
Capital repayments in year (13,238 ) -
Amount withdrawn by directors (45,000 ) (14,994 )
Net cash from financing activities (58,238 ) (14,994 )

Increase/(decrease) in cash and cash equivalents 621,928 (1,275,394 )
Cash and cash equivalents at beginning of
year

2

3,962,869

5,238,263

Cash and cash equivalents at end of year 2 4,584,797 3,962,869

Malin Group Limited (Registered number: SC571623)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 30 September 2022

1. RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
30.9.22 30.9.21
£    £   
Profit/(loss) before taxation 976,616 (704,936 )
Depreciation charges 355,991 311,700
Loss on disposal of fixed assets 17,649 25,469
Loss/(gain) on revaluation of fixed assets 211,243 (226,722 )
Connected party loan written off (2,279 ) 1,138,137
Share of (profit)/loss on joint venture (429,983 ) 121,977
Finance costs 7,655 -
Finance income (80,027 ) (85,359 )
1,056,865 580,266
Decrease/(increase) in stocks 217,075 (130,488 )
Increase in trade and other debtors (2,273,039 ) (4,594,890 )
Increase in trade and other creditors 1,840,199 3,656,458
Cash generated from operations 841,100 (488,654 )

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 2022
30.9.22 1.10.21
£    £   
Cash and cash equivalents 4,584,797 3,962,869
Year ended 30 September 2021
30.9.21 1.10.20
£    £   
Cash and cash equivalents 3,962,869 5,238,263


3. ANALYSIS OF CHANGES IN NET FUNDS

Other
non-cash
At 1.10.21 Cash flow changes At 30.9.22
£    £    £    £   
Net cash
Cash at bank
and in hand 3,962,869 621,928 4,584,797
3,962,869 621,928 4,584,797
Debt
Finance leases - 13,238 (65,736 ) (52,498 )
- 13,238 (65,736 ) (52,498 )
Total 3,962,869 635,166 (65,736 ) 4,532,299

Malin Group Limited (Registered number: SC571623)

Notes to the Consolidated Financial Statements
for the Year Ended 30 September 2022

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.

Basis of consolidation
The group financial statements incorporate Malin Group Ltd and its subsidiaries made up to 30 September 2022.

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 or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - 2% on cost
Improvements to property - 33% on cost and over the term of the lease
Plant and machinery - 20% on cost, 10% on cost and Straight line over 10 years
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.

Investments in associates
Fixed asset investments are stated at cost less provision for diminution in value.

Stocks
Work in progress is valued at the lower of cost and net realisable value.

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 2022

2. ACCOUNTING POLICIES - continued

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

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.

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.

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.

Malin Group Limited (Registered number: SC571623)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2022

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
30.9.22 30.9.21
£    £   
Wages and salaries 5,116,557 4,392,312
Social security costs 622,886 465,060
Other pension costs 233,788 186,490
5,973,231 5,043,862

The average number of employees during the year was as follows:
30.9.22 30.9.21

Administration 19 17

The average number of employees by undertakings that were proportionately consolidated during the year was 112 (2021 - 113 ) .

30.9.22 30.9.21
£    £   
Directors' remuneration 182,000 151,982
Directors' pension contributions to money purchase schemes 18,774 16,158

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

Money purchase schemes 3 3

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

30.9.22 30.9.21
£    £   
Depreciation - owned assets 347,226 311,698
Depreciation - assets on hire purchase contracts 8,765 -
Loss on disposal of fixed assets 17,649 25,469
Auditors' remuneration 39,900 40,600
Auditors' remuneration for non audit work 4,400 8,200
Foreign exchange differences (12,350 ) 31,530

Malin Group Limited (Registered number: SC571623)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2022

5. EXCEPTIONAL ITEMS
30.9.22 30.9.21
£    £   
Write-off connected party loan 2,279 (1,138,137 )

The loan written off was made to a connected company through majority shareholding by the director J A MacSween. The loan had to be written off due to the company being forced in to liquidation as a result of the collapse of their market due to COVID-19.

6. SHARE OF (PROFIT)/LOSS OF JV
30.9.22 30.9.21
£    £   
Share of (profit)/loss of JV (429,983 ) 121,978

7. INTEREST PAYABLE AND SIMILAR EXPENSES
30.9.22 30.9.21
£    £   
Other interest 6,111 -
Hire purchase 1,544 -
7,655 -

8. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
30.9.22 30.9.21
£    £   
Current tax:
UK corporation tax 39,246 -
R&D Tax Credit claimed (9,518 ) (55,269 )
Total current tax 29,728 (55,269 )

Deferred tax - 26,476
Tax on profit/(loss) 29,728 (28,793 )

UK corporation tax has been charged at 19 % (2021 - 19 %).

Malin Group Limited (Registered number: SC571623)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2022

8. TAXATION - continued

Reconciliation of total tax charge/(credit) 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:

30.9.22 30.9.21
£    £   
Profit/(loss) before tax 976,616 (704,936 )
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of
19 % (2021 - 19 %)

185,557

(133,938

)

Effects of:
Expenses not deductible for tax purposes 49,309 182,790
Income not taxable for tax purposes (100,655 ) (16,192 )
Capital allowances in excess of depreciation - (76,781 )
Depreciation in excess of capital allowances 166 -
Utilisation of tax losses (95,131 ) (5,314 )
R&D Tax Credits claimed (9,518 ) (55,269 )
Unused tax losses - 49,435
Deferred tax - 26,476
Total tax charge/(credit) 29,728 (28,793 )

9. 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.


10. TANGIBLE FIXED ASSETS

Group
Improvements
Freehold to Plant and
property property machinery
£    £    £   
COST
At 1 October 2021 2,142,771 2,580,725 732,186
Additions - 43,900 125,882
Disposals - (8,000 ) (361,037 )
At 30 September 2022 2,142,771 2,616,625 497,031
DEPRECIATION
At 1 October 2021 - 524,716 146,773
Charge for year - 150,925 131,228
Eliminated on disposal - (8,000 ) (353,007 )
At 30 September 2022 - 667,641 (75,006 )
NET BOOK VALUE
At 30 September 2022 2,142,771 1,948,984 572,037
At 30 September 2021 2,142,771 2,056,009 585,413

Malin Group Limited (Registered number: SC571623)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2022

10. TANGIBLE FIXED ASSETS - continued

Group

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 October 2021 241,717 15,631 219,617 5,932,647
Additions 5,417 65,736 53,541 294,476
Disposals (2,818 ) - (51,333 ) (423,188 )
At 30 September 2022 244,316 81,367 221,825 5,803,935
DEPRECIATION
At 1 October 2021 197,353 14,915 133,884 1,017,641
Charge for year 22,905 8,771 42,162 355,991
Eliminated on disposal (2,725 ) - (51,279 ) (415,011 )
At 30 September 2022 217,533 23,686 124,767 958,621
NET BOOK VALUE
At 30 September 2022 26,783 57,681 97,058 4,845,314
At 30 September 2021 44,364 716 85,733 4,915,006

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
Additions 65,736
At 30 September 2022 65,736
DEPRECIATION
Charge for year 8,765
At 30 September 2022 8,765
NET BOOK VALUE
At 30 September 2022 56,971

Malin Group Limited (Registered number: SC571623)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2022

10. TANGIBLE FIXED ASSETS - continued

Company
Improvements Fixtures
to and Computer
property fittings equipment Totals
£    £    £    £   
COST
At 1 October 2021 2,490,687 8,181 82,336 2,581,204
Additions 7,415 960 38,891 47,266
At 30 September 2022 2,498,102 9,141 121,227 2,628,470
DEPRECIATION
At 1 October 2021 498,137 2,858 42,537 543,532
Charge for year 126,018 1,546 28,409 155,973
At 30 September 2022 624,155 4,404 70,946 699,505
NET BOOK VALUE
At 30 September 2022 1,873,947 4,737 50,281 1,928,965
At 30 September 2021 1,992,550 5,323 39,799 2,037,672

11. FIXED ASSET INVESTMENTS

Group
Interest Interest
in joint in Listed Unlisted
venture associate investments investments Totals
£    £    £    £    £   
COST OR VALUATION
At 1 October 2021 (116,978 ) - 2,352,717 9,213 2,244,952
Additions - 16,800 452,575 - 469,375
Disposals - - (415,220 ) - (415,220 )
Share of profit/(loss) 429,984 - - - 429,984
Revaluations - - (211,243 ) - (211,243 )
At 30 September 2022 313,006 16,800 2,178,829 9,213 2,517,848
NET BOOK VALUE
At 30 September 2022 313,006 16,800 2,178,829 9,213 2,517,848
At 30 September 2021 (116,978 ) - 2,352,717 9,213 2,244,952

The fixed asset investments were valued at fair value by Adam & Company at 30 September 2022.

Malin Group Limited (Registered number: SC571623)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2022

11. FIXED ASSET INVESTMENTS - continued

Group
Company
Shares in Interest
group in
undertakings associate Totals
£    £    £   
COST
At 1 October 2021 26,302,063 - 26,302,063
Additions - 16,800 16,800
At 30 September 2022 26,302,063 16,800 26,318,863
NET BOOK VALUE
At 30 September 2022 26,302,063 16,800 26,318,863
At 30 September 2021 26,302,063 - 26,302,063

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 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 Group Limited (Registered number: SC571623)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2022

11. FIXED ASSET INVESTMENTS - continued

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 100.00

Malin Fabrication Ltd
Registered office: South Rotunda, 100 Govan Road, Glasgow, G51 1AY
Nature of business: Metal fabrication
%
Class of shares: holding
Ordinary 100.00

John Tracey Welding Limited
Registered office: South Rotunda, 100 Govan Road, Glasgow, G51 1AY
Nature of business: Dormant
%
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

Malin SPV 2 Limited
Registered office: South Rotunda, 100 Govan Road, Glasgow, G51 1AY
Nature of business: Development of investment in Land
%
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 Augustea UK Limited
Registered office: South Rotunda, 100 Govan Road, Glasgow, G51 1AY
Nature of business: Water transportation services
%
Class of shares: holding
Ordinary 50.00

Malin Group Limited (Registered number: SC571623)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2022

11. FIXED ASSET INVESTMENTS - continued

Associated company

Ballast Water Containers Ltd
Registered office: South Rotunda, 100 Govan Road, Glasgow, G51 1AY
Nature of business: Ballast water management compliance solutions
%
Class of shares: holding
Ordinary 40.00


12. STOCKS

Group
30.9.22 30.9.21
£    £   
Stocks - 27,819
Work-in-progress 212,960 402,216
212,960 430,035

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
30.9.22 30.9.21 30.9.22 30.9.21
£    £    £    £   
Trade debtors 2,115,358 1,188,701 86,111 49,555
Amounts owed by group undertakings - - 3,617,899 3,475,306
Amounts owed by participating interests 2,277,590 1,612,590 - -
Other debtors 892,512 890,999 828,121 819,516
Tax 50,823 89,523 - -
VAT - - - 94,729
Prepayments and accrued income 4,726,710 4,046,841 116,799 302,111
10,062,993 7,828,654 4,648,930 4,741,217

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
30.9.22 30.9.21 30.9.22 30.9.21
£    £    £    £   
Hire purchase contracts (see note 16) 10,947 - - -
Trade creditors 2,049,783 1,277,582 135,598 162,758
Amounts owed to group undertakings - - 19,076,368 18,737,716
Tax 39,246 - - -
Social security and other taxes 203,540 168,155 203,540 168,155
VAT 443,620 154,967 65,307 -
Other creditors 35,207 34,540 35,090 32,052
Directors' current accounts 2,681,357 2,726,357 2,681,357 2,726,357
Accrued expenses 4,863,915 4,112,057 83,077 91,493
10,327,615 8,473,658 22,280,337 21,918,531

Malin Group Limited (Registered number: SC571623)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2022

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group
30.9.22 30.9.21
£    £   
Hire purchase contracts (see note 16) 41,551 -

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
30.9.22 30.9.21
£    £   
Net obligations repayable:
Within one year 10,947 -
Between one and five years 41,551 -
52,498 -

17. SECURED DEBTS

The following secured debts are included within creditors:

Group
30.9.22 30.9.21
£    £   
Hire purchase contracts 52,498 -

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

18. PROVISIONS FOR LIABILITIES

Group
30.9.22 30.9.21
£    £   
Deferred tax 44,920 44,920

Group
Deferred
tax
£   
Balance at 1 October 2021 44,920
Balance at 30 September 2022 44,920

Malin Group Limited (Registered number: SC571623)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 30 September 2022

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.9.22 30.9.21
value: £    £   
1,513 Ordinary £1 1,513 1,513

20. RESERVES

Group
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 October 2021 10,861,325 100 10,861,425
Profit for the year 946,888 946,888
At 30 September 2022 11,808,213 100 11,808,313