Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-312023-12-3102023-01-01falseProperty Holding Company0falsefalsefalse 06822033 2023-01-01 2023-12-31 06822033 2022-01-01 2022-12-31 06822033 2023-12-31 06822033 2022-12-31 06822033 2022-01-01 06822033 c:CompanySecretary1 2023-01-01 2023-12-31 06822033 c:Director1 2023-01-01 2023-12-31 06822033 c:Director2 2023-01-01 2023-12-31 06822033 c:RegisteredOffice 2023-01-01 2023-12-31 06822033 c:Agent1 2023-01-01 2023-12-31 06822033 d:Buildings 2023-01-01 2023-12-31 06822033 d:Buildings d:ShortLeaseholdAssets 2023-01-01 2023-12-31 06822033 d:PlantMachinery 2023-01-01 2023-12-31 06822033 d:PlantMachinery 2023-12-31 06822033 d:PlantMachinery 2022-12-31 06822033 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 06822033 d:MotorVehicles 2023-01-01 2023-12-31 06822033 d:FurnitureFittings 2023-01-01 2023-12-31 06822033 d:OfficeEquipment 2023-01-01 2023-12-31 06822033 d:ComputerEquipment 2023-01-01 2023-12-31 06822033 d:FreeholdInvestmentProperty 2023-01-01 2023-12-31 06822033 d:FreeholdInvestmentProperty 2023-12-31 06822033 d:FreeholdInvestmentProperty 2022-12-31 06822033 d:FreeholdInvestmentProperty 2 2023-01-01 2023-12-31 06822033 d:CurrentFinancialInstruments 2023-12-31 06822033 d:CurrentFinancialInstruments 2022-12-31 06822033 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 06822033 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 06822033 d:ShareCapital 2023-01-01 2023-12-31 06822033 d:ShareCapital 2023-12-31 06822033 d:ShareCapital 2022-01-01 2022-12-31 06822033 d:ShareCapital 2022-12-31 06822033 d:ShareCapital 2022-01-01 06822033 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 06822033 d:RetainedEarningsAccumulatedLosses 2023-12-31 06822033 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 06822033 d:RetainedEarningsAccumulatedLosses 2022-12-31 06822033 d:RetainedEarningsAccumulatedLosses 2022-01-01 06822033 c:OrdinaryShareClass1 2023-01-01 2023-12-31 06822033 c:OrdinaryShareClass1 2023-12-31 06822033 c:OrdinaryShareClass1 2022-12-31 06822033 c:OrdinaryShareClass2 2023-01-01 2023-12-31 06822033 c:OrdinaryShareClass2 2023-12-31 06822033 c:OrdinaryShareClass2 2022-12-31 06822033 c:FRS102 2023-01-01 2023-12-31 06822033 c:Audited 2023-01-01 2023-12-31 06822033 c:FullAccounts 2023-01-01 2023-12-31 06822033 c:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 06822033 d:Subsidiary1 2023-01-01 2023-12-31 06822033 d:Subsidiary1 1 2023-01-01 2023-12-31 06822033 c:Consolidated 2023-12-31 06822033 c:ConsolidatedGroupCompanyAccounts 2023-01-01 2023-12-31 06822033 d:AcceleratedTaxDepreciationDeferredTax 2023-12-31 06822033 d:AcceleratedTaxDepreciationDeferredTax 2022-12-31 06822033 2 2023-01-01 2023-12-31 06822033 5 2023-01-01 2023-12-31 06822033 6 2023-01-01 2023-12-31 06822033 f:PoundSterling 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 06822033









MECHANICAL & PIPEWORK HOLDINGS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
COMPANY INFORMATION


Directors
Scott Ellis 
James Ellis 




Company secretary
Angela Ellis



Registered number
06822033



Registered office
Racecourse Road
Pinvin Industrial Estate

Pershore

Worcestershire

WR10 2EY




Independent auditors
Lancaster  Clements Limited
Chartered Certified Accountants & Statutory Auditors

Stanley House

27 Wellington Road

Bilston

West Midlands

WV14 6AH




Bankers
Lloyds TSB Bank Plc
3rd Floor 125 Colmore Row

Birmingham

West Midlands

B3 3SD




Solicitors
Thomas Bancks and Co.
37 High Street

Pershore

Worcestershire

WR10 1AH





 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 

CONTENTS



Page
Group strategic report
 
1
Directors' report
 
2 - 3
Independent auditors' report
 
4 - 8
Consolidated statement of comprehensive income
 
9
Consolidated statement of financial position
 
10 - 11
Company statement of financial position
 
12 - 13
Consolidated statement of changes in equity
 
14 - 15
Company statement of changes in equity
 
16
Consolidated statement of cash flows
 
17 - 18
Notes to the financial statements
 
19 - 37


 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

INTRODUCTION
 
The principal activity of Mechanical & Pipework Holdings Limited is that of property investment and management of its subsidiary undertaking. The principal activity of the subsidiary undertaking, Mechanical & Pipework Fabrications Limited, is that of the manufacture and supply of fire protection systems. 

BUSINESS REVIEW
 
All of the income of the parent company is derived from trading through the subsidiary undertaking. That company has seen a stable activity this year with turnover of £10,314,888 this year as compared to £10,498,381 in the previous year. The gross profit margin has seen an increase of 1.8% this year following good management of costs despite the global economic uncertainty. The group has no defined key performance indicators other than turnover, gross profit, trading profit and cash. Cash flow has been identified as the principal risk affecting the Group, however, there are sufficient funds currently available within the businesses.
Current trading and open order levels year to date, along with the level of working capital available, gives the directors confidence in the company's long-term future.  The overall trading outlook for the calendar year 2024 is positive.

PRINCIPAL RISKS AND UNCERTAINTIES
 
The company has financial risks and seeks to minimise these by incorporating and rigorously implementing controls into key functions as part of the normal business operations.
Management review sale prices on a continuous basis to account for fluctuations in costs in order to minimise the risk of gross margin erosion, whilst also managing procurement to take advantage of fluctuating comodity prices at the lowest levels.
This policy is supporting by have the liquid reserves to invest in stock whilst commodity prices are at their lowest.  It is therefore recognised that Cash reserves and cash flows are the principle risks facing the business.

FINANCIAL KEY PERFORMANCE INDICATORS
 
The Group's key performance indicators continue to be turnover, gross profit, operating profit and cash, which have all met the desired performance levels.
There has been a reduction in turnover in the year however the gross profit margin has increased. On a year to year basis turnover decreased by 1.7%, however the gross profit margin increased from 39.42% to 41.24%.

OTHER KEY PERFORMANCE INDICATORS
 
There are no key performance indicators.


This report was approved by the board on 11 June 2024 and signed on its behalf.



................................................
Scott Ellis
Director

Page 1

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Group's financial statements and then apply them consistently;

make judgments 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Group's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' reports may differ from legislation in other jurisdictions.

Results and dividends

The profit for the year, after taxation, amounted to £1,357,875 (2022 - £1,197,146).

The directors do not propose to recommend payment of a dividend.

Page 2

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


Directors

The directors who served during the year were:

Scott Ellis 
James Ellis 

Future developments

The directors consider that there are no future developments of the company required to be disclosed.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Auditors

The auditorsLancaster  Clements Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 11 June 2024 and signed on its behalf.
 





Angela Ellis
Secretary

Page 3

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MECHANICAL & PIPEWORK HOLDINGS LIMITED
 

Opinion


We have audited the financial statements of Mechanical & Pipework Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated statement of financial position, the Company statement of financial position, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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's affairs as at 31 December 2023 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 United Kingdom, including the Financial Reporting Council'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 or 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.


Page 4

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MECHANICAL & PIPEWORK HOLDINGS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.


Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the 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 Directors' report.


We have nothing to report in respect of the following matters in relation to which 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.


Page 5

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MECHANICAL & PIPEWORK HOLDINGS LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the 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.


Page 6

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MECHANICAL & PIPEWORK HOLDINGS LIMITED (CONTINUED)


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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Identifying and assessing potential risks related to irregularities
We obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, tax legislation and regulations relating to the employed workforce.
In assessing risks of material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
- The clients evaluation of compliance with laws and regulations and whether they were aware of any instances of none compliance, along with the measures in place to mitigate any such instances.
- Methods in place to detect and respond to the risk of fraud and whether there was any actual, suspected or alleged fraud, along with controls established to mitigate such risks.
- Where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of those procedures we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential being in relation to, stock pilferage or misappropriation, management override of controls and transactions outside the normal course of business, particularly with related parties.
Audit response to risks identified
Our procedures to respond to the risks identified included the following:
- Testing of material journal entries, paying particular attention to the period immediately prior to and following the reporting date.
- Evaluation of the business rationale behind transactions made between related parties that are unusual or outside the normal course of business.
- An assessment of whether the judgements made in making accounting estimates are indicative of a potential bias.
- Making enquiries of management concerning actual or potential litigation and claims.
We have designed our procedures to best identify the likelihood or occurrence of irregularities, whether or not arising due to fraud. However, it is accepted that there is an inherent difficulty in detecting irregularities and our findings are subject to the timing and extent of the audit procedures performed.


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 Auditors' report.


Page 7

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MECHANICAL & PIPEWORK HOLDINGS LIMITED (CONTINUED)


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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Mark Anthony Cupitt (Senior statutory auditor)
  
for and on behalf of
Lancaster  Clements Limited
 
Chartered Certified Accountants
Statutory Auditors
  
Stanley House
27 Wellington Road
Bilston
West Midlands
WV14 6AH

11 June 2024
Page 8

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 3 
10,314,888
10,498,381

Cost of sales
  
(6,061,139)
(6,360,317)

Gross profit
  
4,253,749
4,138,064

Distribution costs
  
(500,222)
(446,613)

Administrative expenses
  
(2,167,265)
(2,285,869)

Other operating income
 4 
35,641
43,966

Fair value movements
  
230,000
-

Operating profit
  
1,851,903
1,449,548

Interest receivable and similar income
 8 
26,230
1,002

Interest payable and similar expenses
 9 
(1,088)
(3,365)

Profit before taxation
  
1,877,045
1,447,185

Tax on profit
 10 
(519,170)
(250,039)

Profit for the financial year
  
1,357,875
1,197,146

  

Total comprehensive income for the year
  
1,357,875
1,197,146

Profit for the year attributable to:
  

Owners of the parent Company
  
1,357,875
1,197,146

  
1,357,875
1,197,146

Total comprehensive income for the year attributable to:
  

Owners of the parent Company
  
1,357,875
1,197,146

  
1,357,875
1,197,146

The notes on pages 19 to 37 form part of these financial statements.

Page 9

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
REGISTERED NUMBER: 06822033

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
2,797,687
2,371,437

Investment property
 15 
1,390,568
845,000

  
4,188,255
3,216,437

Current assets
  

Stocks
 16 
2,039,055
1,615,369

Debtors: amounts falling due within one year
 17 
2,705,715
2,257,288

Cash at bank and in hand
  
3,014,256
3,201,506

  
7,759,026
7,074,163

Creditors: amounts falling due within one year
 18 
(3,010,294)
(2,888,692)

Net current assets
  
 
 
4,748,732
 
 
4,185,471

Total assets less current liabilities
  
8,936,987
7,401,908

Creditors: amounts falling due after more than one year
 19 
(28,426)
(62,516)

Provisions for liabilities
  

Deferred taxation
 20 
(590,288)
(356,394)

  
 
 
(590,288)
 
 
(356,394)

Net assets excluding pension asset
  
8,318,273
6,982,998

Net assets
  
8,318,273
6,982,998


Capital and reserves
  

Called up share capital 
 21 
500
500

Revaluation reserve
 22 
194,135
204,131

Profit and loss account
 22 
8,123,638
6,778,367

Equity attributable to owners of the parent Company
  
8,318,273
6,982,998

  
8,318,273
6,982,998


Page 10

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
REGISTERED NUMBER: 06822033
    
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 11 June 2024.




................................................
Scott Ellis
Director

The notes on pages 19 to 37 form part of these financial statements.

Page 11

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
REGISTERED NUMBER: 06822033

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
630,000
598,500

Investments
 14 
500
500

Investment Property
 15 
3,305,568
2,760,000

  
3,936,068
3,359,000

Current assets
  

Debtors: amounts falling due within one year
 17 
1,310,316
1,059,648

Cash at bank and in hand
  
2,119,143
2,239,040

  
3,429,459
3,298,688

Creditors: amounts falling due within one year
 18 
(530,864)
(432,920)

Net current assets
  
 
 
2,898,595
 
 
2,865,768

Total assets less current liabilities
  
6,834,663
6,224,768

  

Provisions for liabilities
  

Deferred taxation
 20 
(455,676)
(318,035)

  
 
 
(455,676)
 
 
(318,035)

Net assets excluding pension asset
  
6,378,987
5,906,733

Net assets
  
6,378,987
5,906,733


Capital and reserves
  

Called up share capital 
 21 
500
500

Profit and loss account brought forward
  
5,906,233
4,974,058

Profit for the year
  
494,854
1,172,575

Other changes in the profit and loss account

  

(22,600)
(240,400)

Profit and loss account carried forward
  
6,378,487
5,906,233

  
6,378,987
5,906,733


Page 12

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
REGISTERED NUMBER: 06822033
    
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 11 June 2024.


................................................
Scott Ellis
Director

The notes on pages 19 to 37 form part of these financial statements.

Page 13

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£

At 1 January 2023
500
204,131
6,778,367
6,982,998


Comprehensive income for the year

Profit for the year

-
-
1,357,875
1,357,875


Other comprehensive income for the year
-
-
-
-


Total comprehensive income for the year
-
-
1,357,875
1,357,875


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(22,600)
(22,600)

Depreciation adjustment from revaluation reserve
-
(9,996)
9,996
-


Total transactions with owners
-
(9,996)
(12,604)
(22,600)


At 31 December 2023
500
194,135
8,123,638
8,318,273


The notes on pages 19 to 37 form part of these financial statements.

Page 14

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£

At 1 January 2022
500
214,127
5,811,625
6,026,252


Comprehensive income for the year

Profit for the year

-
-
1,197,146
1,197,146


Other comprehensive income for the year
-
-
-
-


Total comprehensive income for the year
-
-
1,197,146
1,197,146


Contributions by and distributions to owners

Dividends: equity capital
-
-
(240,400)
(240,400)

Depreciation adjustment from revaluation reserve
-
(9,996)
9,996
-


Total transactions with owners
-
(9,996)
(230,404)
(240,400)


At 31 December 2022
500
204,131
6,778,367
6,982,998


The notes on pages 19 to 37 form part of these financial statements.

Page 15

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
500
4,974,058
4,974,558


Comprehensive income for the year

Profit for the year

-
1,172,575
1,172,575


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
1,172,575
1,172,575


Contributions by and distributions to owners

Dividends: equity capital
-
(240,400)
(240,400)


Total transactions with owners
-
(240,400)
(240,400)



At 1 January 2023
500
5,906,233
5,906,733


Comprehensive income for the year

Profit for the year

-
494,854
494,854


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
494,854
494,854


Contributions by and distributions to owners

Dividends: Equity capital
-
(22,600)
(22,600)


Total transactions with owners
-
(22,600)
(22,600)


At 31 December 2023
500
6,378,487
6,378,987


The notes on pages 19 to 37 form part of these financial statements.

Page 16

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
1,357,875
1,197,146

Adjustments for:

Depreciation of tangible assets
419,659
181,660

Loss on disposal of tangible assets
(6,250)
(18,563)

Interest paid
1,088
3,365

Interest received
(26,230)
(1,002)

Taxation charge
519,170
250,039

(Increase) in stocks
(423,686)
(338,528)

(Increase) in debtors
(448,426)
(80,881)

(Decrease)/increase in creditors
(24,728)
978,603

Net fair value (gains)/losses recognised in P&L
(230,000)
-

Corporation tax (paid)
(134,963)
(193,854)

Net cash generated from operating activities

1,003,509
1,977,985


Cash flows from investing activities

Purchase of tangible fixed assets
(845,909)
(754,761)

Sale of tangible fixed assets
6,250
20,000

Purchase of investment properties
(315,568)
-

Interest received
26,230
1,002

HP interest paid
(1,088)
(3,365)

Net cash from investing activities

(1,130,085)
(737,124)

Cash flows from financing activities
Page 17

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£



Repayment of/new finance leases
(38,074)
43,201

Dividends paid
(22,600)
(240,400)

Net cash used in financing activities
(60,674)
(197,199)

Net (decrease)/increase in cash and cash equivalents
(187,250)
1,043,662

Cash and cash equivalents at beginning of year
3,201,506
2,157,844

Cash and cash equivalents at the end of year
3,014,256
3,201,506


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,014,256
3,201,506

3,014,256
3,201,506


The notes on pages 19 to 37 form part of these financial statements.

Page 18

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.ACCOUNTING POLICIES

 
1.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 2).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

 
1.2

BASIS OF CONSOLIDATION

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2014.

 
1.3

REVENUE

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Page 19

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.ACCOUNTING POLICIES (CONTINUED)

 
1.4

TANGIBLE FIXED ASSETS

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis, with the exception of freehold property.

Depreciation is provided on the following bases:

Freehold property
-
Straight line over fifty years
Short-term leasehold property
-
Plant and machinery
-
5% Reducing balance
Motor vehicles
-
25% Straight line
Fixtures and fittings
-
25% Straight line
Office equipment
-
25% Straight line
Computer equipment
-
25% Straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
1.5

REVALUATION OF TANGIBLE FIXED ASSETS

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the reporting date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
1.6

INVESTMENT PROPERTY

Investment property is carried at fair value determined annually and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
1.7

VALUATION OF INVESTMENTS

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 20

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.ACCOUNTING POLICIES (CONTINUED)

 
1.8

STOCKS

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
1.9

DEBTORS

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
1.10

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
1.11

FINANCIAL INSTRUMENTS

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Group's Statement of financial position when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Page 21

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.ACCOUNTING POLICIES (CONTINUED)


1.11
FINANCIAL INSTRUMENTS (continued)


 
1.12

CREDITORS

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
1.13

FINANCE COSTS

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
1.14

DIVIDENDS

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
1.15

PENSIONS

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.

 
1.16

INTEREST INCOME

Interest income is recognised in profit or loss using the effective interest method.

 
1.17

PROVISIONS FOR LIABILITIES

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 22

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.ACCOUNTING POLICIES (CONTINUED)

 
1.18

CURRENT AND DEFERRED TAXATION

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 23

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.



JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

To be able to prepare financial statements in accordance with FRS102, Mechanical & Pipework Holdings Limited must make certain estimates and judgments that have an impact on the policies and the amounts reported in the annual accounts. The estimates and judgments are based on historical experiences and other factors including expectations of future events that are believed to be reasonable at the time such estimates and judgments are made.  Actual experience may vary from these estimates.
The estimates and assumptions which have the most significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are discussed below:
Depreciation and amortisation:
Mechanical & Pipework Holdings Limited accounts for depreciation and amortisation in accordance with FRS102.  The depreciation and amortisation expense is the recognition of the decline in the value of the assets and allocation of the cost of the asset over the periods in which the asset will be used.  Judgments are made on the estimated useful life of the assets which are regularly reviewed to reflect the changing environment.
Impairment of debtors:
The Company makes an estimate of the recoverable value of trade and other debtors.  When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. 
Impairment of stocks:
Certain factors could affect the realisable value of the company's stocks, including customer demand and market conditions. The company considers historic usage, expected demand, anticipated sales price, effect of new product introductions, product obsolscence and other factors when evaluating the value of stock.
Deferred tax:
Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an asessment of the effect of future planning strategies.
Fair value of investment property:
The directors consider the fair value of the investment properties and revalues them accordingly to ensure the carrying valuation is in line withe the fair value of each property. 


3.


TURNOVER

All turnover arose within the United Kingdom.


4.


OTHER OPERATING INCOME

2023
2022
£
£

Net rents receivable
35,641
43,966

35,641
43,966


Page 24

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


AUDITORS' REMUNERATION

During the year, the Group obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
9,500
9,500


6.


EMPLOYEES

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
2,479,133
2,486,644
-
-

Social security costs
251,583
237,480
-
-

Cost of defined contribution scheme
112,625
405,286
-
-

2,843,341
3,129,410
-
-


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Directors
3
3



Production
51
51



Management and administration
5
5

59
59

The Company has no employees other than the directors, who did not receive any remuneration (2022 - £NIL)
Page 25

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


DIRECTORS' REMUNERATION

2023
2022
£
£

Directors' emoluments
664,823
643,278

Group contributions to defined contribution pension schemes
20,000
215,000

684,823
858,278


During the year retirement benefits were accruing to 2 directors (2022 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £581,890 (2022 - £266,169).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £10,000 (2022 - £91,000).


8.


INTEREST RECEIVABLE

2023
2022
£
£


Other interest receivable
26,230
1,002

26,230
1,002


9.


INTEREST PAYABLE AND SIMILAR EXPENSES

2023
2022
£
£


Bank interest payable
-
1

Finance leases and hire purchase contracts
1,088
3,364

1,088
3,365

Page 26

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


TAXATION


2023
2022
£
£

Corporation tax


Current tax on profits for the year
285,273
134,959

Adjustments in respect of previous periods
3
3


285,276
134,962


Total current tax
285,276
134,962

Deferred tax


Origination and reversal of timing differences
233,894
115,077

Total deferred tax
233,894
115,077


Taxation on profit on ordinary activities
519,170
250,039

FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,877,045
1,447,185


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
441,106
274,965

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
541
694

Other differences leading to an increase (decrease) in the tax charge
77,523
(25,620)

Total tax charge for the year
519,170
250,039


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There were no factors that may affect future tax charges.

Page 27

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


DIVIDENDS

2023
2022
£
£


Dividends paid on equity capital
22,600
240,400

22,600
240,400


12.


PARENT COMPANY PROFIT FOR THE YEAR

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year was £743,010 (2022 - £1,172,575).

Page 28

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


TANGIBLE FIXED ASSETS

Group






Freehold property
Short-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings

£
£
£
£
£



Cost or valuation


At 1 January 2023
990,440
-
2,061,712
776,526
43,462


Additions
-
25,872
438,163
371,364
7,685


Disposals
-
-
-
(23,050)
-



At 31 December 2023

990,440
25,872
2,499,875
1,124,840
51,147



Depreciation


At 1 January 2023
236,131
-
948,349
355,764
7,645


Charge for the year on owned assets
19,808
6,468
156,933
209,737
12,028


Disposals
-
-
-
(23,050)
-



At 31 December 2023

255,939
6,468
1,105,282
542,451
19,673



Net book value



At 31 December 2023
734,501
19,404
1,394,593
582,389
31,474



At 31 December 2022
754,309
-
1,113,363
420,762
35,817
Page 29

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           13.TANGIBLE FIXED ASSETS (CONTINUED)


Office equipment
Computer equipment
Total

£
£
£



Cost or valuation


At 1 January 2023
18,106
45,327
3,935,573


Additions
-
2,825
845,909


Disposals
-
-
(23,050)



At 31 December 2023

18,106
48,152
4,758,432



Depreciation


At 1 January 2023
7,125
9,122
1,564,136


Charge for the year on owned assets
3,222
11,463
419,659


Disposals
-
-
(23,050)



At 31 December 2023

10,347
20,585
1,960,745



Net book value



At 31 December 2023
7,759
27,567
2,797,687



At 31 December 2022
10,981
36,205
2,371,437

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Motor vehicles
93,973
134,630

93,973
134,630

Page 30

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           13.TANGIBLE FIXED ASSETS (CONTINUED)


Company






Plant and machinery

£

Cost or valuation


At 1 January 2023
755,000



At 31 December 2023

755,000



Depreciation


At 1 January 2023
156,500


Charge for the year on owned assets
(31,500)



At 31 December 2023

125,000



Net book value



At 31 December 2023
630,000



At 31 December 2022
598,500






Page 31

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


FIXED ASSET INVESTMENTS

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
500



At 31 December 2023
500





SUBSIDIARY UNDERTAKING


The following was a subsidiary undertaking of the Company:

Name

Class of shares

Holding

Mechanical & Pipework Fabrications Limited
Ordinary
100%

The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
Profit/
(Loss)

Mechanical & Pipework Fabrications Limited

3,012,955
866,529

Page 32

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


INVESTMENT PROPERTY

Group


Freehold investment property

£



Valuation


At 1 January 2023
845,000


Additions at cost
315,568


Surplus on revaluation
230,000



At 31 December 2023
1,390,568

The 2023 valuations were made by the directors, on an open market value for existing use basis.






If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2023
£


Historic cost
900,568

900,568

Company





Freehold investment property

£



Valuation


At 1 January 2023
2,760,000


Additions at cost
315,568


Surplus on revaluation
230,000



At 31 December 2023
3,305,568

The 2023 valuations were made by the directors, on an open market value for existing use basis.

Page 33

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


STOCKS

Group
Group
2023
2022
£
£

Raw materials and consumables
2,039,055
1,615,369

2,039,055
1,615,369


The difference between purchase price or production cost of stocks and their replacement cost is not material.


17.


DEBTORS

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
2,417,683
1,907,500
-
-

Amounts owed by group undertakings
-
-
1,042,833
792,165

Other debtors
267,483
329,239
267,483
267,483

Prepayments and accrued income
20,549
20,549
-
-

2,705,715
2,257,288
1,310,316
1,059,648



18.


CREDITORS: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
1,544,977
1,517,969
-
-

Corporation tax
285,273
134,959
110,515
77,088

Other taxation and social security
171,379
108,729
92,490
48,490

Obligations under finance lease and hire purchase contracts
35,242
39,226
-
-

Other creditors
397,981
395,914
301,859
283,842

Accruals and deferred income
575,442
691,895
26,000
23,500

3,010,294
2,888,692
530,864
432,920


The hire purchase liabilities are secured on the assets they relate to as per note 13 to the financial statements.

Page 34

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


CREDITORS: Amounts falling due after more than one year

Group
Group
2023
2022
£
£

Net obligations under finance leases and hire purchase contracts
28,426
62,516

28,426
62,516


The hire purchase liabilities are secured on the assets they relate to as per note 13 to the financial statements.




20.


DEFERRED TAXATION


Group



2023


£






At beginning of year
356,394


Charged to profit or loss
233,894



At end of year
590,288

Page 35

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
20.DEFERRED TAXATION (CONTINUED)

Company


2023


£






At beginning of year
318,035


Charged to profit or loss
137,641



At end of year
455,676

The provision for deferred taxation is made up as follows:

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
590,288
356,394
455,676
318,035

590,288
356,394
455,676
318,035


21.


SHARE CAPITAL

2023
2022
£
£
Allotted, called up and fully paid



400 (2022 - 400) Ordinary 'A' Shares shares of £1.00 each
400
400
100 (2022 - 100) Ordinary 'B' Shares shares of £1.00 each
100
100

500

500



22.


RESERVES

Profit and loss account

Included within the profit and loss reserve is an undistributable investment property reserve of £1,425,778.


23.


PENSION COMMITMENTS

The company operates a defined contribution pension scheme in respect of the staff. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the company and amounted to £261,101 (2022 £405,286).

Page 36

 
MECHANICAL & PIPEWORK HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
24.

LIMITATION OF AUDITORS' LIABILITY

The group has entered into a liability limitation agreement, the principal terms being as follows:- 
Any liability is limited, pursuant to Section 537 of the Companies Act 2006, to no less than such amount as is considered fair and reasonable in each individual circumstance and to a maximum of ten times the level of the fee for the audit service being carried out.
The resolution approving this agreement is dated 1 December 2023.


25.


RELATED PARTY TRANSACTIONS

The company had an interest free loan with the related party RTJ International Limited. At the balance sheet date the this company owed Mechanical & Pipework Holdings Limited £267,483 (2022 £267,483).
Mechanical & Pipework Fabrications Limited rent property for its own use from a director, James Ellis, for an annual rental of £4,950 (2022 £4,950). The company also rents property for its own use from the Mechanical & Pipework Fabrications Limited Directors' Retirement Benefits Scheme for an annual rental of £56,660 (2022 £53,495). Both of these are currently  under terms  of  informal  commercial agreements. At the balance sheet date the company owed that Scheme £481 (2022 £481). The directors are also directors of  RTJ International Limited, a company registered in England and Wales. During the  year Mechanical & Pipework Fabrications Limited  made  purchases  totalling  £986,616 (2022 £796,386) from that company and made sales to that company of £nil (2022 £nil) and at the balance  sheet  date owed that company £82,089 (2022 £93,961). 
At the reporting date an amount of £97,804 was repayable to Directors of the company. The amount advanced was interest free and repayable on demand.
The company has taken advantage of the exemption contained within paragraph 33.1A of Financial Reporting Standard 102 and has not disclosed transactions with other group members.


26.


CONTROLLING PARTY

The controlling interest in the parent company is held by James Ellis.

Page 37