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REGISTERED NUMBER: 05987652 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

FOR

MAINTENANCE & CONTRACTING SERVICES
LTD

MAINTENANCE & CONTRACTING SERVICES
LTD (REGISTERED NUMBER: 05987652)






CONTENTS OF THE FINANCIAL STATEMENTS
for the Year Ended 31 MARCH 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 5

Report of the Independent Auditors 7

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 14

Notes to the Financial Statements 15


MAINTENANCE & CONTRACTING SERVICES
LTD

COMPANY INFORMATION
for the Year Ended 31 MARCH 2023







DIRECTORS: S Hill
Mrs B Hill
R C Halford
L Van Mazyk





REGISTERED OFFICE: 61 Queen Square
Bristol
BS1 4JZ





REGISTERED NUMBER: 05987652 (England and Wales)





AUDITORS: Burnside
Chartered Accountants
and Statutory Auditor
61 Queen Square
Bristol
BS1 4JZ

MAINTENANCE & CONTRACTING SERVICES
LTD (REGISTERED NUMBER: 05987652)

STRATEGIC REPORT
for the Year Ended 31 MARCH 2023

The directors present their strategic report for the year ended 31 March 2023.

REVIEW OF BUSINESS
The Directors are very pleased to be able to report another very successful year of trading.

Despite difficult trading conditions the company has seen an increase in growth in this financial year, with turnover increasing by 140% to £51.5M from £21.4M the previous year.

Profit before taxation for the year was £3.70M and the net assets of the company have increased to £3.16M.

The company has again continued to benefit from consistent repeat work from some of the UK's biggest main contractors.

The strategy initiated in previous financial years has allowed us to further strengthen our existing client relations and continue the substantial increase in turnover also seen in 2020/21.

As MCS have demonstrated in previous years of accounting, it is a key objective for us to have a period of substantial growth followed by a year of stabilisation, which we have achieved with growth in 2022/23 after last year's results.

Next year's strategy is to focus on strengthening the relationships in our small client base and to build on the mean order value of our contracts. At the time of publication of these financial statements, actual secured revenue work for 2023/24 is in excess of £55M.

Our consistent increase in turnover over recent years, and further projected significant increases in turnover for the next five years, is in line with the company's ambition of sustainable long-term growth.

Also in the year, our subsidiary company MCS Integrated Solutions Limited, focusing on small works and Facilities Management opportunities, has remained stable. From October 2022, MCS Integrated Solutions has been under new leadership, and key objectives for growth have been set. The forward order book for MCS Integrated Solutions is also looking strong with further FM contracts and tier 2 reactive works orders having been secured.


MAINTENANCE & CONTRACTING SERVICES
LTD (REGISTERED NUMBER: 05987652)

STRATEGIC REPORT
for the Year Ended 31 MARCH 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The commercial activities of the company are subject to risks which are constantly monitored and evaluated by the directors. Key areas of risk include the financial stability of clients and suppliers together with the economic activity of the industry sector, risks exacerbated in the period by the impact of the COVID-19 pandemic.

There is no currency risk exposure as the company does not trade overseas.

Liquidity risk is managed by forecasting future cash flow requirements of the business and by monitoring and maintaining sufficient bank balances to meet these. To mitigate risks posed by the economic outlook the directors continue to carefully manage cash and costs.

The company manages its credit risk exposure by trading only with credit worthy clients, ensuring up to date credit ratings are monitored for key client accounts.

The company also monitors the concentration of its trading activities by customer to help mitigate over reliance upon key customers.

KEY PERFORMANCE INDICATORS
The board's preferred measure of underlying performance is earnings before interest, taxation,
depreciation and amortisation ("EBITDA"). 2023 EBITDA was £3,818,677 (2022 - £1,548,698).

The reconciliation of EBITDA to the financial statements is:


2023 2022
£'000 £'000
Operating profit 3,727 1,505

Add back:

Depreciation (Note 5) 92 61
(Profit) on disposal of fixed assets (Note 5) - (17 )

EBITDA 3,819 1,549


MAINTENANCE & CONTRACTING SERVICES
LTD (REGISTERED NUMBER: 05987652)

STRATEGIC REPORT
for the Year Ended 31 MARCH 2023

GOING CONCERN
No material uncertainties that cast significant doubt about the ability of the company to continue as a going concern have been identified by the directors.

ON BEHALF OF THE BOARD:





S Hill - Director


7 November 2023

MAINTENANCE & CONTRACTING SERVICES
LTD (REGISTERED NUMBER: 05987652)

REPORT OF THE DIRECTORS
for the Year Ended 31 MARCH 2023

The directors present their report with the financial statements of the company for the year ended 31 March 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of providing high quality mechanical and electrical contracting services.

DIVIDENDS
Dividends paid in the year are disclosed in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

S Hill
Mrs B Hill
R C Halford
L Van Mazyk

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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 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.

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 company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

MAINTENANCE & CONTRACTING SERVICES
LTD (REGISTERED NUMBER: 05987652)

REPORT OF THE DIRECTORS
for the Year Ended 31 MARCH 2023


AUDITORS
The auditors, Burnside, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





S Hill - Director


7 November 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MAINTENANCE & CONTRACTING SERVICES
LTD

Opinion
We have audited the financial statements of Maintenance & Contracting Services Ltd (the 'company') for the year ended 31 March 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 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 company's affairs as at 31 March 2023 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.

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 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
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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MAINTENANCE & CONTRACTING SERVICES
LTD


Other information
The directors are responsible for the other information. The other information comprises the information in the 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 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 Strategic Report and the Report of the Directors 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 identified material misstatements in the 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, 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 Statement of Directors' Responsibilities set out on page five, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MAINTENANCE & CONTRACTING SERVICES
LTD


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:

An understanding of the legal and regulatory framework applicable to the entity was obtained from management and those charged with governance of the entity, and the audit engagement team was confirmed to have the appropriate competence and capabilities to identify non-compliance with such a framework.

No significant instances of fraud, non-compliance with laws and regulations or other irregularities were communicated to the engagement team by management or those charged with governance, and no particular audit areas or legislation were identified that gave rise to any significant risks of material misstatement in respect of such irregularities.

Due to the size and nature of the entity, its susceptibility to material misstatement resulting from fraud, non-compliance with laws and regulations, or other irregularities is considered to be low, and the audit approach was appropriately planned so as to address this risk.

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.




Steven Coombe FCA (Senior Statutory Auditor)
for and on behalf of Burnside
Chartered Accountants
and Statutory Auditor
61 Queen Square
Bristol
BS1 4JZ

7 November 2023

MAINTENANCE & CONTRACTING SERVICES
LTD (REGISTERED NUMBER: 05987652)

INCOME STATEMENT
for the Year Ended 31 MARCH 2023

2023 2022
Notes £    £   

TURNOVER 51,461,346 21,448,653

Cost of sales 41,125,196 16,183,882
GROSS PROFIT 10,336,150 5,264,771

Administrative expenses 6,609,531 3,759,298
OPERATING PROFIT 5 3,726,619 1,505,473

Interest receivable and similar income 16,885 253
3,743,504 1,505,726

Interest payable and similar expenses 6 46,577 18,768
PROFIT BEFORE TAXATION 3,696,927 1,486,958

Tax on profit 7 599,151 221,081
PROFIT FOR THE FINANCIAL YEAR 3,097,776 1,265,877

MAINTENANCE & CONTRACTING SERVICES
LTD (REGISTERED NUMBER: 05987652)

OTHER COMPREHENSIVE INCOME
for the Year Ended 31 MARCH 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 3,097,776 1,265,877


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

3,097,776

1,265,877

MAINTENANCE & CONTRACTING SERVICES
LTD (REGISTERED NUMBER: 05987652)

BALANCE SHEET
31 MARCH 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 852,890 925,933
Investments 10 1 1
852,891 925,934

CURRENT ASSETS
Stocks 11 875 875
Debtors 12 9,140,712 8,439,151
Cash at bank and in hand 1,999,711 920,357
11,141,298 9,360,383
CREDITORS
Amounts falling due within one year 13 7,829,016 7,111,525
NET CURRENT ASSETS 3,312,282 2,248,858
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,165,173

3,174,792

CREDITORS
Amounts falling due after more than one
year

14

(1,001,047

)

(1,297,067

)

PROVISIONS FOR LIABILITIES 18 (6,874 ) (16,263 )
NET ASSETS 3,157,252 1,861,462

MAINTENANCE & CONTRACTING SERVICES
LTD (REGISTERED NUMBER: 05987652)

BALANCE SHEET - continued
31 MARCH 2023

2023 2022
Notes £    £    £    £   
CAPITAL AND RESERVES
Called up share capital 19 2 2
Retained earnings 20 3,157,250 1,861,460
SHAREHOLDERS' FUNDS 3,157,252 1,861,462


The financial statements were approved by the Board of Directors and authorised for issue on 7 November 2023 and were signed on its behalf by:





S Hill - Director


MAINTENANCE & CONTRACTING SERVICES
LTD (REGISTERED NUMBER: 05987652)

STATEMENT OF CHANGES IN EQUITY
for the Year Ended 31 MARCH 2023

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 April 2021 2 1,838,870 1,838,872

Changes in equity
Dividends - (1,243,287 ) (1,243,287 )
Total comprehensive income - 1,265,877 1,265,877
Balance at 31 March 2022 2 1,861,460 1,861,462

Changes in equity
Dividends - (1,801,986 ) (1,801,986 )
Total comprehensive income - 3,097,776 3,097,776
Balance at 31 March 2023 2 3,157,250 3,157,252

MAINTENANCE & CONTRACTING SERVICES
LTD (REGISTERED NUMBER: 05987652)

NOTES TO THE FINANCIAL STATEMENTS
for the Year Ended 31 MARCH 2023

1. STATUTORY INFORMATION

Maintenance & Contracting Services Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company 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.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Preparation of consolidated financial statements
The financial statements contain information about Maintenance & Contracting Services Ltd as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, VIS Group Limited, 61 Queen Square, Bristol, BS1 4JZ.

Significant judgements and estimates
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 the current and future periods.

MAINTENANCE & CONTRACTING SERVICES
LTD (REGISTERED NUMBER: 05987652)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 MARCH 2023

2. ACCOUNTING POLICIES - continued

Turnover
Turnover represents the value of sales of goods and services rendered during the year, excluding value added tax and trade discounts. Turnover in respect of contracts ongoing at the year end is measured in accordance with valuations of work completed as certified by customers.

In respect of long term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.

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 - 5% on cost
Plant and machinery - 25% on reducing balance
Motor vehicles - 25% on reducing balance
Office equipment - 25% on reducing balance

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

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

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

MAINTENANCE & CONTRACTING SERVICES
LTD (REGISTERED NUMBER: 05987652)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 MARCH 2023

2. ACCOUNTING POLICIES - continued

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 the shorter.

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

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other short term employee benefits
The company makes contributions to personal pension schemes of certain employees. Contributions payable to the schemes are charged to the profit and loss account in the period to which they relate.

Other short term employee benefits including holiday pay and annual bonuses are also accrued as services are rendered.

Financial instruments
Financial assets and liabilities are recognised in the balance sheet when the company becomes party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and are measured on initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company may not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank.

Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of any direct issue costs.

Interest bearing bank loans which meet the criteria of basic financial instruments are initially recorded at the present value of cash payable to the bank, usually being equivalent to the proceeds received net of direct issue costs. These liabilities are subsequently measured at amortised cost, using the effective interest rate method.

Going concern
The directors have considered the company's ability to continue as a going concern for at least 12 months from the date of signing the financial statements and have concluded that they consider the company a going concern.

MAINTENANCE & CONTRACTING SERVICES
LTD (REGISTERED NUMBER: 05987652)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 MARCH 2023

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 3,722,237 2,025,103
Social security costs 460,589 234,058
Other pension costs 63,019 36,758
4,245,845 2,295,919

The average number of employees during the year was as follows:
2023 2022

Management 5 5
Operational 52 32
57 37

4. DIRECTORS' EMOLUMENTS
2023 2022
£    £   
Directors' remuneration 67,302 60,832

5. OPERATING PROFIT

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

2023 2022
£    £   
Hire of plant and machinery 153,740 227,074
Other operating leases 3,330 22,063
Depreciation - owned assets 49,398 40,613
Depreciation - assets on hire purchase contracts 42,660 19,842
Profit on disposal of fixed assets - (17,230 )
Auditors' remuneration 10,000 10,000

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 42,493 17,067
Hire purchase interest 4,084 1,701
46,577 18,768

MAINTENANCE & CONTRACTING SERVICES
LTD (REGISTERED NUMBER: 05987652)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 MARCH 2023

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 608,540 209,353

Deferred tax (9,389 ) 11,728
Tax on profit 599,151 221,081

UK corporation tax has been charged at 19% (2022 - 19%).

Reconciliation of total tax 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:

2023 2022
£    £   
Profit before tax 3,696,927 1,486,958
Profit multiplied by the standard rate of corporation tax in the UK of
19% (2022 - 19%)

702,416

282,522

Effects of:
Expenses not deductible for tax purposes 85,965 67,347
Capital allowances in excess of depreciation - (212 )
Depreciation in excess of capital allowances 3,521 -
R&D claim (194,400 ) (128,576 )
Deferred tax provided at a higher rate, 25% 1,649 -
Total tax charge 599,151 221,081

MAINTENANCE & CONTRACTING SERVICES
LTD (REGISTERED NUMBER: 05987652)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 MARCH 2023

8. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £0.01 each
Dividends 1,279,043 783,221
Ordinary A shares of £0.01 each
Interim 273,048 254,444
Ordinary B shares of £0.01 each
Interim 249,895 205,622
1,801,986 1,243,287

9. TANGIBLE FIXED ASSETS
Freehold Plant and Motor Office
property machinery vehicles equipment Totals
£    £    £    £    £   
COST
At 1 April 2022 665,475 63,495 285,129 64,242 1,078,341
Additions - 19,015 - - 19,015
At 31 March 2023 665,475 82,510 285,129 64,242 1,097,356
DEPRECIATION
At 1 April 2022 20,273 13,037 79,826 39,272 152,408
Charge for year 20,273 14,203 51,326 6,256 92,058
At 31 March 2023 40,546 27,240 131,152 45,528 244,466
NET BOOK VALUE
At 31 March 2023 624,929 55,270 153,977 18,714 852,890
At 31 March 2022 645,202 50,458 205,303 24,970 925,933

MAINTENANCE & CONTRACTING SERVICES
LTD (REGISTERED NUMBER: 05987652)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 MARCH 2023

9. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 April 2022
and 31 March 2023 190,481
DEPRECIATION
At 1 April 2022 19,842
Charge for year 42,660
At 31 March 2023 62,502
NET BOOK VALUE
At 31 March 2023 127,979
At 31 March 2022 170,639

10. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 April 2022
and 31 March 2023 1
NET BOOK VALUE
At 31 March 2023 1
At 31 March 2022 1

MAINTENANCE & CONTRACTING SERVICES
LTD (REGISTERED NUMBER: 05987652)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 MARCH 2023

10. FIXED ASSET INVESTMENTS - continued

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

MCS Integrated Solutions Limited
Registered office: 61 Queen Square, Bristol. BS1 4JZ
Nature of business: Providing mechanical and electrical services
%
Class of shares: holding
B Ordinary shares 100.00
2023 2022
£    £   
Aggregate capital and reserves 210,891 167,304
Profit for the year 97,284 111,262

11. STOCKS
2023 2022
£    £   
Stocks 875 875

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 2,389,578 2,218,330
Amounts owed by group undertakings 255,768 48,756
Amounts recoverable on
contracts 5,918,221 5,728,518
Other debtors 110,949 5,450
Directors' current accounts 5,000 -
VAT 283,597 292,753
Prepayments and accrued income 177,599 145,344
9,140,712 8,439,151

MAINTENANCE & CONTRACTING SERVICES
LTD (REGISTERED NUMBER: 05987652)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 MARCH 2023

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 15) 265,416 269,869
Hire purchase contracts (see note 16) 33,493 33,493
Payments on account 154,082 638,414
Trade creditors 2,892,364 2,443,430
Corporation tax 608,516 209,353
Social security and other taxes 204,598 118,657
Other creditors 1,191,351 559,639
Accruals and deferred income 2,479,196 2,838,670
7,829,016 7,111,525

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 15) 981,508 1,244,035
Hire purchase contracts (see note 16) 19,539 53,032
1,001,047 1,297,067

15. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 265,416 269,869

Amounts falling due between one and two years:
Bank loans - 1-2 years 266,525 270,519

Amounts falling due between two and five years:
Bank loans - 2-5 years 473,727 732,335

Amounts falling due in more than five years:

MAINTENANCE & CONTRACTING SERVICES
LTD (REGISTERED NUMBER: 05987652)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 MARCH 2023

15. LOANS - continued
2023 2022
£    £   
Amounts falling due in more than five years:
Repayable by instalments
Bank loans > 5 years by
instalments 241,256 241,181
241,256 241,181

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 33,493 33,493
Between one and five years 19,539 53,032
53,032 86,525

Non-cancellable operating leases
2023 2022
£    £   
Within one year 129,402 83,870
Between one and five years 118,483 45,150
247,885 129,020

MAINTENANCE & CONTRACTING SERVICES
LTD (REGISTERED NUMBER: 05987652)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 MARCH 2023

17. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 1,246,924 1,513,904
Hire purchase contracts 53,032 86,525
1,299,956 1,600,429

Bank borrowings are secured by a charge over all company property and assets. Assets held under HP contracts are detailed in the notes.

18. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax
Accelerated capital allowances 10,313 17,472
Other timing differences (3,439 ) (1,209 )
6,874 16,263

Deferred
tax
£   
Balance at 1 April 2022 16,263
Credit to Income Statement during year (9,389 )
Balance at 31 March 2023 6,874

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
160 Ordinary £0.01 2 2
20 Ordinary A £0.01 - -
20 Ordinary B £0.01 - -
2 2

All shares classes rank pari passu in all respects except for the payment of dividends.

MAINTENANCE & CONTRACTING SERVICES
LTD (REGISTERED NUMBER: 05987652)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 MARCH 2023

20. RESERVES
Retained
earnings
£   

At 1 April 2022 1,861,460
Profit for the year 3,097,776
Dividends (1,801,986 )
At 31 March 2023 3,157,250

21. RELATED PARTY DISCLOSURES

At the year end, the company was owed £26,413 (2022 - £26,456) by its parent company VIS Group Limited. During the year the company paid dividends of £1,279,043 to VIS Group Limited. Last year dividends of £783,221 were paid to VIS Building Services Limited, which was the immediate parent company until the end of that year.

During the year the company provided funds to its subsidiary undertaking MCS Integrated Solutions Limited and at the year end was owed £229,355 (2022 - £22,300) by that company.

At the year end, one of the directors owed the company £5,000. This has since been fully repaid.

22. ULTIMATE CONTROLLING PARTY

The parent company is VIS Group Limited and the ultimate controlling party is S Hill.