Melford Environmental Services IM

Melford Environmental Services Limited | Information Memorandum

FINANCIAL INFORMATION

MARKETING

6.5. As the Company generates a consistent, sustained income with no active marketing output, it could recruit a dedicated Sales Representative to promote the Company’s services and attract new clients. 6.6. The use of pay-per-click (PPC) and search engine optimisation (SEO) on its website could further strengthen the Company’s online presence and increase online enquiries.

6.7. The table below outlines the Company’s annual Profit and Loss accounts.

YE20 £

YE21 £

YE22 £

YE23 (Draft) £

PROFIT AND LOSS (£)

Turnover

312,812

279,552

293,808

364,932

Cost of Sales

(76,938)

(58,439)

(74,568)

(74,439)

Gross Profit

235,874

221,113

219,240

290,493

Gross Profit Margin

75%

79%

75%

80%

Administrative Expenses

(155,567)

(160,057)

(164,750)

(184,057)

Other Operating Income

22

14,877

6,807

500

EBIT

80,329

75,933

61,297

106,936

Depreciation

1,078

3,049

9,012

13,521

EBITDA

81,407

78,982

70,309

120,457

Addbacks

Directors' Remunerations

65,752

75,387

69,584

76,865

Directors' Pensions

3,218

2,575

2,575

2,575

Client Entertaining

1,718

183

1,576

1,378

Adjusted EBITDA

152,095

157,127

144,044

201,275

NB: Addbacks entail one-off costs that hold minimal relevance to the Company’s performance, as well as costs that an acquirer will not necessarily incur.

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