Company registration number 05337698 (England and Wales)
MOBILE SERVICES HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
MOBILE SERVICES HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Miss M J Bradbury
Mrs S Bradbury
Secretary
Mrs G Bradbury
Company number
05337698
Registered office
Unit 19
South Leicester Industrial Estate
Ellistown
Leicestershire
United Kingdom
LE67 1FB
Auditor
BK Plus Audit Limited
Azzurri House
Walsall Road
Aldridge
Walsall
England
WS9 0RB
MOBILE SERVICES HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 32
MOBILE SERVICES HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

The Group is a vehicle freight transporter trading group which operates within the United Kingdom.

 

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end.

 

Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

 

Results and performance

 

The results reflect the Group's strong underlying trading activities and a drive to improve the efficiency and focus of our operations. The Group has made a considerable effort to control its costs in recent years and has continued to invest in its vehicle fleet and management systems to ensure that the service is as reliable and efficient as possible whilst remaining competitively priced.

 

We are delighted with the current year's trading results, especially given the economic climate and the political climate which created uncertainty and volatility in the market place. The results are in line with our expectations based on the challenges faced during the year.

 

Business environment

 

Despite the challenging market conditions in the UK during the year, the company has been able to increase turnover, by continuing to develop the working relationship with its key clients. The volume and value of orders won during the year was encouraging and we continue to have a growing number of contract leads and opportunities ahead of us which should allow for further sustainable growth.

 

In the current economic climate this strong performance demonstrates that the company's market presence is growing and that the brand recognition for the quality of work has helped achieve this. This perception plays a key role in securing new contracts and expand our customer base, as customers become increasingly aware of our expertise and ability to deliver the high level of work required and within the agreed scope and timescales set.

 

As for many businesses of our size, the business environment in which we operate continues to be demanding, but we believe the company is well placed to deliver its performance objectives in these economic times.

 

MOBILE SERVICES HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

The process of risk management is applied through a combination of policies, procedures and internal controls. All policies are subject to Board approval and ongoing review by management. Compliance with regulation, legal and ethical standards is a high priority for the Group to ensure they are able to continue trading. The finance team is responsible for ensuring that effective internal controls exist to manage the financial risks and that these controls operate effectively for the benefit of the business.

 

We, the directors, endeavour to identify the risks that the Group faces on a day to day basis. This is to ensure we have the financial strength and operational capacity to support the growth of the business. We have continuously worked to build a robust and flexible business with attracting and retaining the right quality staff and clients to help us achieve this. In doing so, we have a strong financial position to deal with any situations which have arose during the year and that which we expect to face in the future.

 

The principal risks from our business are as follows:

Price risk: The main risk to the Group continues to be fluctuating fuel prices. Whilst the Group only transacts with other UK entities and trades only in Sterling, the price of the fuel the Group purchases is linked to the exchange rate with the US dollar. Despite our high volume of fuel used it is not possible to bulk buy fuel when it is at lower prices and therefore the Group is subject to the volatility of the market.

 

Competitor risk: The Group operates in a highly competitive market balancing both customer requirements and market pressures. The directors review and monitor these factors to ensure the Group's competitiveness is maintained.

 

Liquidity risk and going concern: The Group is exposed to liquidity risk as sufficient funds are required to support trading and financing activities. The Group regularly monitors its liquidity position to ensure that sufficient funds are available to meet both current and future requirements.

 

The Group closely monitors its banking and other available credit facilities in comparison to its outstanding commitments to ensure that it has sufficient funds to meet its obligations as they fall due. The Group finance function produces regular forecasts that estimate the cash inflows and outflows for the next 12 months, so that management can ensure that sufficient financing is in place for working capital as it is required. The Group aims to maintain a balance between continuity of funding and flexibility through the use of banking and hire purchase facilities.

 

Economic risk: The Group's trading is broadly linked to the performance of the UK economy and therefore, is exposed to recessionary risk when economies come into difficulties. To mitigate such a risk, management regularly review the market to assess the potential impact on the business operations and have invested in external expertise to assist with strategic planning for the future.

 

 

Key performance indicators

We consider that our key financial performance indicators are those that communicate the financial performance and strength of the Group, these being turnover, gross margin and operating profit.

 

Turnover for the group increased by 28% from £15.3m to £19.6m, alongside gross margin increasing for the group from 21% to 35%. Operating profit also increased to £3,207,245 from £887,725.

Financial instruments

Exposure to price, credit, liquidity and cash flow risk the Group has a normal level of exposure to price, liquidity and cash flow risks arising from trading activities and do not consider these to be significant risks to its operations.

 

The Group has a financial management framework which its objective is to protect the Group from events that hinder the achievement of the Group's performance objectives. The objectives aim to limit undue exposure to business and financial risks and ensure sufficient working capital exists.

 

The Group uses various financial instruments in order to raise sufficient funds to support its operations. During the year these consisted of hire purchase facilities, cash and various items including trade debtors and creditors that arise from its operations.

MOBILE SERVICES HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Future Developments

The company wishes to continue to build on its performance in recent years by further developing relationships with current customers, establishing and growing business with new customers and exploring new market opportunities such as single vehicle deliveries. Investment in expertise will assist in the ongoing development of the management team and continued control and efficiencies over costs.

 

The directors also aim to maintain the management policies which have resulted in the company's growth in recent years. The directors anticipate the business environment will remain competitive, but they believe that the company is in a good financial position to meet these challenges. Further investment in the fleet will be required over the next 12 months to be able to meet demand and provide a high quality reliable service to customers.

On behalf of the board

Mrs S Bradbury
Director
27 August 2024
MOBILE SERVICES HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

Principal activities

The principal activity of the group continued to be that of freight transportation by road.

Results and dividends

The results for the year are set out on page 9.

The total distribution of dividends for the year ended 31 December 2023 was £155,345.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Miss M J Bradbury
Mrs S Bradbury
Auditor

In accordance with the company's articles, a resolution proposing that BK Plus Audit Limited be reappointed as auditor of the group will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mrs S Bradbury
Director
27 August 2024
MOBILE SERVICES HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The directors are responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

MOBILE SERVICES HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MOBILE SERVICES HOLDINGS LIMITED
- 6 -
Opinion

We have audited the financial statements of Mobile Services Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

MOBILE SERVICES HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MOBILE SERVICES HOLDINGS LIMITED
- 7 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 auditor's 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 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.

 

From the preliminary of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.

 

In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:

 

MOBILE SERVICES HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MOBILE SERVICES HOLDINGS LIMITED
- 8 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's 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.

Christopher Hession C.A. (Senior Statutory Auditor)
For and on behalf of BK Plus Audit Limited
27 August 2024
Chartered Accountants
Statutory Auditor
Azzurri House
Walsall Road
Aldridge
Walsall
England
WS9 0RB
MOBILE SERVICES HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
19,651,658
15,307,138
Cost of sales
(12,794,672)
(12,117,747)
Gross profit
6,856,986
3,189,391
Administrative expenses
(3,651,368)
(2,610,554)
Other operating income
121,627
308,888
Exceptional item
4
(120,000)
-
0
Operating profit
5
3,207,245
887,725
Interest receivable and similar income
8
17,718
14
Interest payable and similar expenses
9
(141,834)
(119,709)
Profit before taxation
3,083,129
768,030
Tax on profit
10
(840,740)
(229,909)
Profit for the financial year
25
2,242,389
538,121
Profit for the financial year is all attributable to the owners of the parent company.
MOBILE SERVICES HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
£
£
Profit for the year
2,242,389
538,121
Other comprehensive income
-
-
Total comprehensive income for the year
2,242,389
538,121
Total comprehensive income for the year is all attributable to the owners of the parent company.
MOBILE SERVICES HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
186,964
255,844
Tangible assets
13
6,764,934
5,235,236
6,951,898
5,491,080
Current assets
Stocks
16
123,090
127,734
Debtors
17
4,254,892
3,658,264
Cash at bank and in hand
4,488,259
2,025,839
8,866,241
5,811,837
Creditors: amounts falling due within one year
18
(3,839,909)
(2,596,102)
Net current assets
5,026,332
3,215,735
Total assets less current liabilities
11,978,230
8,706,815
Creditors: amounts falling due after more than one year
19
(2,760,496)
(1,792,434)
Provisions for liabilities
Deferred tax liability
22
589,612
373,303
(589,612)
(373,303)
Net assets
8,628,122
6,541,078
Capital and reserves
Called up share capital
24
100
100
Share premium account
25
668,604
668,604
Other reserves
25
1,303
1,303
Profit and loss reserves
25
7,958,115
5,871,071
Total equity
8,628,122
6,541,078

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 27 August 2024 and are signed on its behalf by:
27 August 2024
Mrs S  Bradbury
Director
Company registration number 05337698 (England and Wales)
MOBILE SERVICES HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,918,814
1,993,059
Investments
14
668,704
668,704
2,587,518
2,661,763
Current assets
Debtors
17
33,082
1,246,388
Cash at bank and in hand
2,022,588
941,341
2,055,670
2,187,729
Creditors: amounts falling due within one year
18
(136,985)
(111,119)
Net current assets
1,918,685
2,076,610
Total assets less current liabilities
4,506,203
4,738,373
Creditors: amounts falling due after more than one year
19
(587,029)
(699,489)
Provisions for liabilities
Deferred tax liability
22
21,835
30,349
(21,835)
(30,349)
Net assets
3,897,339
4,008,535
Capital and reserves
Called up share capital
24
100
100
Share premium account
25
668,604
668,604
Profit and loss reserves
25
3,228,635
3,339,831
Total equity
3,897,339
4,008,535

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £44,149 (2022 - £88,587 profit).

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

The financial statements were approved by the board of directors and authorised for issue on 27 August 2024 and are signed on its behalf by:
27 August 2024
Mrs S  Bradbury
Director
Company registration number 05337698 (England and Wales)
MOBILE SERVICES HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
100
668,604
1,303
5,423,862
6,093,869
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
538,121
538,121
Dividends
11
-
-
-
(90,913)
(90,913)
Balance at 31 December 2022
100
668,604
1,303
5,871,071
6,541,078
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
2,242,389
2,242,389
Dividends
11
-
-
-
(155,345)
(155,345)
Balance at 31 December 2023
100
668,604
1,303
7,958,115
8,628,122
MOBILE SERVICES HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
100
668,604
3,342,157
4,010,861
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
88,587
88,587
Dividends
11
-
-
(90,913)
(90,913)
Balance at 31 December 2022
100
668,604
3,339,831
4,008,535
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
44,149
44,149
Dividends
11
-
-
(155,345)
(155,345)
Balance at 31 December 2023
100
668,604
3,228,635
3,897,339
MOBILE SERVICES HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
3,849,305
913,445
Interest paid
(141,834)
(119,709)
Income taxes paid
(9,805)
(306)
Net cash inflow from operating activities
3,697,666
793,430
Investing activities
Purchase of tangible fixed assets
(2,517,685)
(609,819)
Proceeds from disposal of tangible fixed assets
48,850
66,154
Interest received
17,718
14
Net cash used in investing activities
(2,451,117)
(543,651)
Financing activities
Repayment of borrowings
(57,950)
(24,000)
Repayment of bank loans
(106,893)
(105,920)
Payment of finance leases obligations
1,536,059
(554,553)
Dividends paid to equity shareholders
(155,345)
(90,913)
Net cash generated from/(used in) financing activities
1,215,871
(775,386)
Net increase/(decrease) in cash and cash equivalents
2,462,420
(525,607)
Cash and cash equivalents at beginning of year
2,025,839
2,551,446
Cash and cash equivalents at end of year
4,488,259
2,025,839
MOBILE SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

Mobile Services Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 19, South Leicester Industrial Estate, Ellistown, Leicestershire, England, LE67 1FB.

 

The group consists of Mobile Services Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include certain assets at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Mobile Services Holdings Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

MOBILE SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold buildings
2% straight line
Leasehold land and buildings
10% Straight line
Motor vehicles
33% Straight line and 25% Reducing balance
Motor vehicles
20% Reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

MOBILE SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

MOBILE SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

MOBILE SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

Hedge accounting

The company designates certain hedging instruments, including derivatives, embedded derivatives and non-derivatives, as either fair value hedges or cash flow hedges. At the inception of the hedge relationship, the company documents the relationship between the hedging instrument and the hedged item along with risk management objectives and strategy for undertaking various hedge transactions. At the inception of the hedge and on an ongoing basis, the company documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

For derivatives that are designated and qualify as cash flow hedges, the effective portion of changes in the fair value of the hedge is recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss.

 

Any gain or loss previously recognised in other comprehensive income is reclassified to profit or loss when the hedge relationship ends. This occurs when the hedging instrument expires or no longer meets the hedging criteria, the forecast transaction is no longer highly probable, the hedged debt instrument is derecognised, or the hedging instrument is terminated.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

MOBILE SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

MOBILE SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 current and future periods.

 

The directors have revised the depreciation policy in relation to motor vehicles from 25% reducing balance to 20% reducing balance as they felt that this would reflect a more accurate value of the vehicles held by the company.

3
Turnover and other revenue
2023
2022
£
£
Other revenue
Interest income
17,718
14
4
Exceptional item
2023
2022
£
£
Expenditure
Exceptional item - Provision for legal costs
120,000
-
5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Hedging item losses/(gains)
254,993
(216,688)
Depreciation of owned tangible fixed assets
404,882
407,632
Depreciation of tangible fixed assets held under finance leases
479,325
451,743
Loss on disposal of tangible fixed assets
54,930
16,740
Amortisation of intangible assets
68,880
68,880
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
3,675
3,500
Audit of the financial statements of the company's subsidiaries
8,925
8,500
12,600
12,000
MOBILE SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
7
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Drivers and mechanics
98
94
-
-
Sales and administration
18
18
-
-
Directors
2
2
-
-
Total
118
114
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
6,023,213
5,439,807
-
0
-
0
Social security costs
636,010
593,372
-
-
Pension costs
348,709
108,950
-
0
-
0
7,007,932
6,142,129
-
0
-
0
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
17,718
14
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
17,718
14
MOBILE SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
34,482
36,223
Other interest on financial liabilities
57
185
34,539
36,408
Other finance costs:
Interest on finance leases and hire purchase contracts
107,295
83,301
Total finance costs
141,834
119,709
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
624,431
9,803
Deferred tax
Origination and reversal of timing differences
216,309
220,106
Total tax charge
840,740
229,909

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
3,083,129
768,030
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
770,782
145,926
Tax effect of expenses that are not deductible in determining taxable profit
30,000
7,270
Effect of change in corporation tax rate
(22,056)
-
Permanent capital allowances in excess of depreciation
(154,295)
(12,880)
Deferred tax adjustments
216,309
89,593
Taxation charge
840,740
229,909
MOBILE SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
155,345
90,913
155,345
90,913
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
536,004
Amortisation and impairment
At 1 January 2023
280,160
Amortisation charged for the year
68,880
At 31 December 2023
349,040
Carrying amount
At 31 December 2023
186,964
At 31 December 2022
255,844
MOBILE SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
13
Tangible fixed assets
Group
Freehold buildings
Leasehold land and buildings
Motor vehicles
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
1,842,994
123,158
342,424
10,242,417
12,550,993
Additions
-
0
10,692
36,004
2,470,989
2,517,685
Disposals
-
0
-
0
-
0
(1,211,944)
(1,211,944)
At 31 December 2023
1,842,994
133,850
378,428
11,501,462
13,856,734
Depreciation and impairment
At 1 January 2023
36,860
96,695
290,036
6,892,166
7,315,757
Depreciation charged in the year
36,860
9,616
16,615
821,116
884,207
Eliminated in respect of disposals
-
0
-
0
-
0
(1,108,164)
(1,108,164)
At 31 December 2023
73,720
106,311
306,651
6,605,118
7,091,800
Carrying amount
At 31 December 2023
1,769,274
27,539
71,777
4,896,344
6,764,934
At 31 December 2022
1,806,134
26,463
52,388
3,350,251
5,235,236
Company
Freehold buildings
Motor vehicles
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
1,842,994
325,000
2,167,994
Depreciation and impairment
At 1 January 2023
36,860
138,075
174,935
Depreciation charged in the year
36,860
37,385
74,245
At 31 December 2023
73,720
175,460
249,180
Carrying amount
At 31 December 2023
1,769,274
149,540
1,918,814
At 31 December 2022
1,806,134
186,925
1,993,059
MOBILE SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Tangible fixed assets
(Continued)
- 27 -

The value of land that is not depreciated is £707,924 (2022 - £707,924).

 

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Motor vehicles
3,564,188
1,976,338
-
0
-
0

 

14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
668,704
668,704
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
668,704
Carrying amount
At 31 December 2023
668,704
At 31 December 2022
668,704
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Mobile Service (Ellistown) Limited
Unit 19 South Leicester Industrial Estate, Ellistown, Leicestershire LE67 1FB
Ordinary
100.00
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
123,090
127,734
-
0
-
0
MOBILE SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,208,606
2,977,994
-
0
-
0
Amounts owed by group undertakings
-
-
33,082
1,246,378
Other debtors
564,282
324,774
-
0
10
Prepayments and accrued income
482,004
355,496
-
0
-
0
4,254,892
3,658,264
33,082
1,246,388
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
20
106,498
100,931
106,498
100,931
Obligations under finance leases
21
1,133,849
756,617
-
0
-
0
Other borrowings
20
20,355
-
0
-
0
-
0
Trade creditors
1,100,836
1,220,790
-
0
-
0
Corporation tax payable
624,814
10,188
30,487
10,188
Other taxation and social security
636,905
421,352
-
-
Other creditors
77,752
36,424
-
0
-
0
Accruals and deferred income
138,900
49,800
-
0
-
0
3,839,909
2,596,102
136,985
111,119
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
587,029
699,489
587,029
699,489
Obligations under finance leases
21
2,083,779
924,952
-
0
-
0
Other loans
20
89,688
167,993
-
0
-
0
2,760,496
1,792,434
587,029
699,489
MOBILE SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
693,527
800,420
693,527
800,420
Other loans
110,043
167,993
-
0
-
0
803,570
968,413
693,527
800,420
Payable within one year
126,853
100,931
106,498
100,931
Payable after one year
676,717
867,482
587,029
699,489

Any funds due to Lloyds TSB Bank Plc, who provide the bank facilities, are secured by a fixed and floating charge overt all the companies assets.

 

 

21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
1,133,848
756,617
-
0
-
0
In two to five years
2,083,780
924,952
-
0
-
0
3,217,628
1,681,569
-
-

The Group uses finance lease and hire purchase contracts to acquire motor fleet vehicles. The finance lease and hire purchase liabilities are secured against the assets to which they relate.

22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
589,612
373,303
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
21,835
30,349
MOBILE SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Deferred taxation
(Continued)
- 30 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
373,303
30,349
Charge/(credit) to profit or loss
216,309
(8,514)
Liability at 31 December 2023
589,612
21,835

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
348,709
108,950

The Group operates a defined contribution pension scheme. The Group makes contributions to its pension scheme for employees, including directors when required. The assets of the scheme are held separately from those of the Group in an independently administered fund. At the balance sheet date, unpaid contributions of £24,582 (2022 - £22,608) were due to the fund. These are included in other creditors.

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
35
35
35
35
Ordinary B of £1 each
15
15
15
15
Ordinary C of £1 each
15
15
15
15
Ordinary D of £1 each
35
35
35
35
100
100
100
100
25
Reserves
Profit and loss reserves

Retained earnings as shown in the statement of changes in equity - includes all current and prior retained period profits and losses.

MOBILE SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
26
Operating lease commitments

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
76,065
91,605
-
-
Between two and five years
7,059
14,164
-
-
83,124
105,769
-
-
27
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

 

Transactions between group entities which have been eliminated on consolidation are not disclosed within the

financial statements.

Key management personnel of the entity or its parent (in the aggregate)
Other related parties
2023
2022
2023
2022
£
£
£
£
Group
Amounts due to related parties
143,992
167,087
-
-
Rent paid under an operating lease
-
-
43,333
40,000

The directors are considered to be the key management personnel of the company. The balance owed is unsecured and repayable on demand and interest is charged at an agreed rate of 4% per annum on the balance each year.

 

 

 

 

28
Controlling party

The ultimate controlling party is Mrs Samantha Bradbury.

 

MOBILE SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
29
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,242,389
538,121
Adjustments for:
Taxation charged
840,740
229,909
Finance costs
141,834
119,709
Investment income
(17,718)
(14)
Loss on disposal of tangible fixed assets
54,930
16,740
Amortisation and impairment of intangible assets
68,880
68,880
Depreciation and impairment of tangible fixed assets
884,207
859,375
Movements in working capital:
Decrease/(increase) in stocks
4,644
(17,940)
Increase in debtors
(596,628)
(1,108,692)
Increase in creditors
226,027
207,357
Cash generated from operations
3,849,305
913,445
30
Analysis of changes in net debt - group
2023
£
Opening net funds/(debt)
Cash and cash equivalents
2,025,839
Loans
(968,413)
Obligations under finance leases
(1,681,569)
(624,143)
Changes in net debt arising from:
Cash flows of the entity
1,091,204
Closing net funds/(debt) as analysed below
467,061
Closing net funds/(debt)
Cash and cash equivalents
4,488,259
Loans
(803,570)
Obligations under finance leases
(3,217,628)
467,061
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