Caseware UK (AP4) 2023.0.135 2023.0.135 2023-01-01truetruetruetruetruefalsefalseCommercial vehicle dealership123122true NI020402 2023-01-01 2023-12-31 NI020402 2022-01-01 2022-12-31 NI020402 2023-12-31 NI020402 2022-12-31 NI020402 2022-01-01 NI020402 1 2023-01-01 2023-12-31 NI020402 d:CompanySecretary1 2023-01-01 2023-12-31 NI020402 d:Director1 2023-01-01 2023-12-31 NI020402 d:Director2 2023-01-01 2023-12-31 NI020402 d:RegisteredOffice 2023-01-01 2023-12-31 NI020402 d:Agent1 2023-01-01 2023-12-31 NI020402 c:Buildings 2023-01-01 2023-12-31 NI020402 c:Buildings 2023-12-31 NI020402 c:Buildings 2022-12-31 NI020402 c:Buildings c:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 NI020402 c:LandBuildings 2023-12-31 NI020402 c:LandBuildings 2022-12-31 NI020402 c:PlantMachinery 2023-01-01 2023-12-31 NI020402 c:PlantMachinery 2023-12-31 NI020402 c:PlantMachinery 2022-12-31 NI020402 c:PlantMachinery c:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 NI020402 c:MotorVehicles 2023-01-01 2023-12-31 NI020402 c:MotorVehicles 2023-12-31 NI020402 c:MotorVehicles 2022-12-31 NI020402 c:MotorVehicles c:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 NI020402 c:FurnitureFittings 2023-01-01 2023-12-31 NI020402 c:FurnitureFittings 2023-12-31 NI020402 c:FurnitureFittings 2022-12-31 NI020402 c:FurnitureFittings c:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 NI020402 c:OfficeEquipment 2023-01-01 2023-12-31 NI020402 c:OfficeEquipment 2023-12-31 NI020402 c:OfficeEquipment 2022-12-31 NI020402 c:OfficeEquipment c:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 NI020402 c:ComputerEquipment 2023-01-01 2023-12-31 NI020402 c:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 NI020402 c:CurrentFinancialInstruments 2023-12-31 NI020402 c:CurrentFinancialInstruments 2022-12-31 NI020402 c:Non-currentFinancialInstruments 2023-12-31 NI020402 c:Non-currentFinancialInstruments 2022-12-31 NI020402 c:CurrentFinancialInstruments c:WithinOneYear 2023-12-31 NI020402 c:CurrentFinancialInstruments c:WithinOneYear 2022-12-31 NI020402 c:Non-currentFinancialInstruments c:AfterOneYear 2023-12-31 NI020402 c:Non-currentFinancialInstruments c:AfterOneYear 2022-12-31 NI020402 c:Non-currentFinancialInstruments c:BetweenOneTwoYears 2023-12-31 NI020402 c:Non-currentFinancialInstruments c:BetweenOneTwoYears 2022-12-31 NI020402 c:Non-currentFinancialInstruments c:BetweenTwoFiveYears 2023-12-31 NI020402 c:Non-currentFinancialInstruments c:BetweenTwoFiveYears 2022-12-31 NI020402 c:UKTax 2023-01-01 2023-12-31 NI020402 c:UKTax 2022-01-01 2022-12-31 NI020402 c:ShareCapital 2023-12-31 NI020402 c:ShareCapital 2022-12-31 NI020402 c:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 NI020402 c:RetainedEarningsAccumulatedLosses 2023-12-31 NI020402 c:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 NI020402 c:RetainedEarningsAccumulatedLosses 2022-12-31 NI020402 c:RetainedEarningsAccumulatedLosses 2022-01-01 NI020402 c:AcceleratedTaxDepreciationDeferredTax 2023-12-31 NI020402 c:AcceleratedTaxDepreciationDeferredTax 2022-12-31 NI020402 d:OrdinaryShareClass1 2023-01-01 2023-12-31 NI020402 d:OrdinaryShareClass1 2023-12-31 NI020402 d:OrdinaryShareClass1 2022-12-31 NI020402 d:FRS102 2023-01-01 2023-12-31 NI020402 d:Audited 2023-01-01 2023-12-31 NI020402 d:FullAccounts 2023-01-01 2023-12-31 NI020402 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 NI020402 c:WithinOneYear 2023-12-31 NI020402 c:WithinOneYear 2022-12-31 NI020402 c:HirePurchaseContracts c:WithinOneYear 2023-12-31 NI020402 c:HirePurchaseContracts c:WithinOneYear 2022-12-31 NI020402 c:HirePurchaseContracts c:BetweenOneFiveYears 2023-12-31 NI020402 c:HirePurchaseContracts c:BetweenOneFiveYears 2022-12-31 NI020402 c:HirePurchaseContracts c:MoreThanFiveYears 2023-12-31 NI020402 c:HirePurchaseContracts c:MoreThanFiveYears 2022-12-31 NI020402 2 2023-01-01 2023-12-31 NI020402 e:PoundSterling 2023-01-01 2023-12-31 iso4217:GBP xbrli:shares xbrli:pure
Registered number: NI020402















M-B Truck and Van (NI) Limited
Annual Report and Financial Statements
For the Year Ended 31 December 2023

 
M-B Truck and Van (NI) Limited
 

Company Information


Directors
Neil McKibbin 
Pauline McKeating 




Company secretary
Pauline McKeating



Registered number
NI020402



Registered office
47 Mallusk Road

Newtownabbey

Antrim

BT36 4PJ




Independent auditors
ASM (B) Ltd
Chartered Accountants and Statutory Auditors

4th Floor - Glendinning House

6 Murray Street

Belfast

Co. Antrim

BT1 6DN




Bankers
Danske Bank
Donegall Square West

Belfast

BT1 6JS




Solicitors
Mills Selig
21 Arthur Street

Belfast

BT1 4JA





 
M-B Truck and Van (NI) Limited
 

Contents



Page
Strategic Report
 
 
1 - 2
Directors' Report
 
 
3 - 5
Independent Auditors' Report
 
 
6 - 9
Statement of Income and Retained Earnings
 
 
10
Balance Sheet
 
 
11
Notes to the Financial Statements
 
 
12 - 29


 
M-B Truck and Van (NI) Limited
 

Strategic Report
For the Year Ended 31 December 2023

Introduction
 
The directors present their Strategic report on the company for the year ended 31 December 2023.

Business review
 
The directors consider the results for the financial year and the position of the company at the year end to be in line with expectations. The company will continue to seek every opportunity to increase profitable turnover. 

Going concern
At the date of this report, the directors are confident that the company can continue to demonstrate its resilience and navigate these challenging times successfully. At the Balance Sheet date the company had net assets of £4,444,502 (2022: £3,400,626) and continued to generate profits. The directors have prepared budgets and cash flow forecasts. As a result, the directors continue to prepare the financial statements on a going concern basis as they are satisfied that the company has the ability to meet its liabilities as and when they fall due for a period of not less than 12 months from the date of this report.

Principal risks and uncertainties
 
The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to relate to the current economic environment, competition from other dealerships, supplier stability, employee retention and Mercedes-Benz support. These risks are addressed through a good relationship with Mercedes-Benz, strong customer service and after sales support as well as investment in its people and facilities.

Financial key performance indicators
 
The company's key performance indicators are as follows: 
        
2023   2022
Increase/(decrease) in turnover    22.5%                    (4.7)%
Gross profit margin      18.3%   18.7%
Employee numbers      123   122 
 

Environment
 
The company recognises its corporate responsibility to carry out its operations whilst minimising environmental impacts. The directors' continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible.

Health and safety
The company is committed to achieving the highest practicable standards in health and safety management and strives to make all sites and offices safe environments for employees and customers alike.

Human resources
The company's most important resource is its people; their knowledge and experience is crucial to meting customer requirements. Retention of key staff is critical and the company has invested increasingly in employment training and development and has introduced appropriate incentive and career progression arrangements. 

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Page 1

 
M-B Truck and Van (NI) Limited
 

Strategic Report (continued)
For the Year Ended 31 December 2023

Employees
 
Applications for employment by disabled persons are always fully considered, bearing in mind the respective aptitudes and abilities of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the company continues and the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of a disabled person should, as far as possible, be identical to that of a person who does not suffer from a disability. 

Statement by the directors in performance of their statutory duties accordance with s172(1) Companies Act 2006 
 
This section describes how the directors have had regard to the matters set out in section 172(1) (a) to (f), and forms the directors' statement required under the Companies (Miscellaneous Reporting) Regulations 2018.
The directors require all employees of the company to adhere to the highest standards of integrity and meet with
all legal and regulatory requirements.
In making decisions, the directors give appropriate consideration to the short and long term impacts of those decisions. These decisions are based on relevant budgets, forecasts, considerations of principal and emerging business risks and the wider market environment. In making these decisions the directors give due consideration to the impact on key stakeholders and acknowledge that appropriate engagement and consultation with these stakeholders supports the future success of the company. This includes decisions which impact the company's:
• Employees, to ensure that appropriate levels of communication are provided by the directors and feedback received from the employees and acted on;
• Customers, to ensure that appropriate levels of engagement are maintained across the customer base and that high levels of customer service is monitored and maintained;
• Suppliers, to ensure that a strong relationship is maintained with the key suppliers e.g. Mercedes-Benz;
• Community and environment, to ensure that the activities of the company support the local community and environment, for example, through providing employment for local people, supporting in their training and ensuring that the company's activities look after the local environment;
• Regulators, to ensure that the company is in compliance with all laws and regulations; and
• Other key stakeholders. 


This report was approved by the board on 5 June 2024 and signed on its behalf.



Pauline McKeating
Director

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Page 2

 
M-B Truck and Van (NI) 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 Strategic Report, the Directors' 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 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 of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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

Results and dividends

The profit for the year, after taxation, amounted to £1,043,875 (2022 - £941,031).

No dividends were paid during the financial year (2022: £Nil).

Directors

The directors who served during the year were:

Neil McKibbin 
Pauline McKeating 

Political contributions

The Company made no political contributions during the financial year (2022: £Nil).


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Page 3

 
M-B Truck and Van (NI) Limited
 

 
Directors' Report (continued)
For the Year Ended 31 December 2023

Financial risk management

The company's operations expose it to a variety of financial risks that include foreign exchange risk, credit risk, liquidity risk and interest rate risk. The company has in place a risk management programme that seeks to limit  the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs. 
Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the finance department. 
Foreign exchange risk 
While the greater part of the company's revenues and expenses are denominated in sterling, the company is exposed to some foreign exchange risk in the normal course of business, principally euros. While the company has not used financial instruments to date to hedge foreign exchange exposure, this position is kept under review. 
Credit risk 
The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by the board. 
Liquidity risk 
The company actively maintains a mixture of medium-term and short-term debt finance that is designed to ensure the company has sufficient available funds for operations and planned expansions. 
Interest rate risk 
The company has interest bearing liabilities in the form of bank overdrafts and bank loans. The company has a policy of maintaining debt at a competitive rate to ensure a reasonable degree of certainty over future interest cash flows. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature. 
Future developments
A review of the business, results and future developments are detailed in the Strategic report and included in this report by cross reference.
Greenhouse gas emissions, energy consumption and energy efficiency action
The Statement of Greenhouse Gas (GHG) Emissions for UK offices are included in the Directors' report in the financial statements of MBNI Holdings Ltd, which does not form part of this report.

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'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's auditors are aware of that information.

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M-B Truck and Van (NI) Limited
 

 
Directors' Report (continued)
For the Year Ended 31 December 2023

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsASM (B) Ltdwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 5 June 2024 and signed on its behalf.
 





Pauline McKeating
Director

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M-B Truck and Van (NI) Limited
 

 
Independent Auditors' Report to the Members of M-B Truck and Van (NI) Limited
 

Opinion


We have audited the financial statements of M-B Truck and Van (NI) Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Income and Retained Earnings, the Balance Sheet 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 Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 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.


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Page 6

 
M-B Truck and Van (NI) Limited
 

 
Independent Auditors' Report to the Members of M-B Truck and Van (NI) 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 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 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 Company and its 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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


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M-B Truck and Van (NI) Limited
 

 
Independent Auditors' Report to the Members of M-B Truck and Van (NI) 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 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:

We gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which they operate, and considered the risk of acts by the Company that were contrary to applicable laws and regulations, including fraud. We considered the opportunities and incentives that may exist within the Company for fraud and identified the greatest potential for fraud in the following areas: management override of controls and fraud risk relating to revenue.
We designed audit procedures to respond to these risks, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. Our audit procedures included: enquiries of management about their own identification and assessment of risks of irregularities, testing the design and implementation of controls relating to the risks, sample testing of journals posted during the year, revenue cut off testing and agreeing a sample of revenue items to source documentation.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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.


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M-B Truck and Van (NI) Limited
 

 
Independent Auditors' Report to the Members of M-B Truck and Van (NI) 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.





Brian Clerkin (Senior Statutory Auditor)
  
for and on behalf of
ASM (B) Ltd
 
Chartered Accountants and Statutory Auditors
  
4th Floor - Glendinning House
6 Murray Street
Belfast
Co. Antrim
BT1 6DN

5 June 2024
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Page 9

 
M-B Truck and Van (NI) Limited
 

Statement of Income and Retained Earnings
For the Year Ended 31 December 2023

2023
2022
Note
£
£

  

Turnover
 5 
47,593,406
38,861,521

Cost of sales
  
(38,866,681)
(31,602,774)

Gross profit
  
8,726,725
7,258,747

Administrative expenses
  
(6,175,323)
(5,500,231)

Operating profit
 6 
2,551,402
1,758,516

Interest receivable and similar income
 10 
63,984
62,368

Interest payable and similar expenses
 11 
(1,224,030)
(685,624)

Profit before tax
  
1,391,356
1,135,260

Tax on profit
 12 
(347,481)
(194,229)

Profit after tax
  
1,043,875
941,031

  

  

Retained earnings at the beginning of the year
  
2,618,027
1,676,996

  
2,618,027
1,676,996

Profit for the year
  
1,043,875
941,031

Retained earnings at the end of the year
  
3,661,902
2,618,027
The notes on pages 12 to 29 form part of these financial statements.

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Page 10

 
M-B Truck and Van (NI) Limited
Registered number: NI020402

Balance Sheet
As at 31 December 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
13,787,291
14,584,237

  
13,787,291
14,584,237

Current assets
  

Stocks
 14 
4,507,132
2,667,804

Debtors: amounts falling due within one year
 15 
4,727,747
5,443,138

Cash at bank and in hand
 16 
343,822
585,845

  
9,578,701
8,696,787

Creditors: amounts falling due within one year
 17 
(10,802,954)
(10,949,883)

Net current liabilities
  
 
 
(1,224,253)
 
 
(2,253,096)

Total assets less current liabilities
  
12,563,038
12,331,141

Creditors: amounts falling due after more than one year
 18 
(8,118,536)
(8,930,514)

  

Net assets
  
4,444,502
3,400,627


Capital and reserves
  

Called up share capital 
 22 
782,600
782,600

Profit and loss account
  
3,661,902
2,618,027

  
4,444,502
3,400,627


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 5 June 2024.




Pauline McKeating
Director

The notes on pages 12 to 29 form part of these financial statements.

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Page 11

 
M-B Truck and Van (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

1.


General information

The company is principally engaged as a main commercial vehicle dealership that operates the Mercedes-Benz franchise in Northern Ireland, together with associated after sales activities. In addition the company iis engaged in contract hire and short term hire of commercial vehicles. 
The company is a private company limited by shares and is incorporated and domiciled in Northern Ireland, within the United Kingdom. The address of its registered office is 47 Mallusk Road, Newtownabbey, Co Antrim, BT36 4PJ.

2.Accounting policies

 
2.1

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 management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of MBNI Holdings Ltd as at 31 December 2023 and these financial statements may be obtained from Companies House.

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M-B Truck and Van (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company 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 Company has transferred the significant risks and rewards of ownership to the buyer;
the Company 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 Company 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.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Leased assets: the Company as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

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Page 13

 
M-B Truck and Van (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.

 
2.7

Interest income

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

 
2.8

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.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

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Page 14

 
M-B Truck and Van (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.10

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 balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet 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 balance sheet date.

 
2.11

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, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
2%
straight line
Plant and machinery
-
10%
straight line
Motor vehicles
-
20%
straight line
Fixtures and fittings
-
10%
straight line
Office equipment
-
20%
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.

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Page 15

 
M-B Truck and Van (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)

 
2.12

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 balance sheet 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 the Statement of Income and Retained Earnings.

 
2.13

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.

 
2.14

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.

 
2.15

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.

 
2.16

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.

 
2.17

Financial instruments

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

The Company 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 Company's Balance Sheet when the Company 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.
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Page 16

 
M-B Truck and Van (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)


2.17
Financial instruments (continued)


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 Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument 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.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary
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Page 17

 
M-B Truck and Van (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

2.Accounting policies (continued)


2.17
Financial instruments (continued)

course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances: 
(a) Critical judgements in applying the entity's accounting policies 
There are no critical judgements in applying the company's accounting policies. 
(b) Critical accounting estimates and assumptions 
There are no critical accounting estimates and assumptions. 

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Page 18

 
M-B Truck and Van (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

4.


Going Concern

At the date of this report, the directors are confident that the company can continue to demonstrate its resilience and navigate these challenging times successfully. At the Balance Sheet date the company had net assets of £4,444,502 (2022: £3,400,626) and continued to generate profits. The directors have prepared budgets and cash flow forecasts. As a result, the directors continue to prepare the financial statements on a going concern basis as they are satisfied that the company has the ability to meet its liabilities as and when they fall due for a period of not less than 12 months from the date of this report.


5.


Turnover

The whole of the turnover is attributable to the principal activity of the company, as a main commercial vehicle dealership for the Mercedes-Benz franchise, together with associated parts and servicing for all makes of commercial vehicles, and the contract hire and short term licensing of vehicles.

All turnover arose within the United Kingdom.


6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible assets - owned
118,658
110,149

Depreciation of tangible assets - held under finance lease
2,791,770
3,546,532

Other operating lease rentals
45,000
40,000

Profit on disposal of tangible assets
(451,838)
(1,019,025)


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors and their associates:


2023
2022
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
25,750
24,687

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Page 19

 
M-B Truck and Van (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

8.


Employees

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


2023
2022
£
£

Wages and salaries
3,897,297
3,705,017

Social security costs
393,747
392,407

Cost of defined contribution scheme
116,989
77,002

4,408,033
4,174,426


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


        2023
        2022
            No.
            No.







Employees
123
122


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
102,651
171,526

Company contributions to defined contribution pension schemes
33,025
4,414

135,676
175,940


During the year retirement benefits were accruing to 2 directors (2022: 3) in respect of defined contribution pension schemes. 


10.


Interest receivable

2023
2022
£
£


Other interest receivable
63,984
62,368

63,984
62,368

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Page 20

 
M-B Truck and Van (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
213,219
120,542

Other loan interest payable
1,010,811
565,082

1,224,030
685,624


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
248,372
203,192


248,372
203,192


Total current tax
248,372
203,192

Deferred tax


Origination and reversal of timing differences
99,109
(8,963)

Total deferred tax
99,109
(8,963)


Taxation on profit on ordinary activities
347,481
194,229
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Page 21

 
M-B Truck and Van (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is the same as (2022 - lower than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,391,356
1,135,260


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of  23.52% (2022 - 19%)
413,105
215,699

Effects of:


Expenses not deductible for tax purposes
(101,265)
17,350

Capital allowances for year in excess of depreciation
(63,468)
(29,857)

Deferred tax
99,109
(8,963)

Total tax charge for the year
347,481
194,229


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

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Page 22

 


 
M-B Truck and Van (NI) Limited


 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023


13.


Tangible fixed assets






Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Office equipment

£
£
£
£
£



Cost or valuation


At 1 January 2023
4,213,620
493,422
18,941,133
236,716
90,397


Additions
-
65,662
3,898,359
15,479
42,857


Disposals
-
-
(3,964,633)
-
-



At 31 December 2023

4,213,620
559,084
18,874,859
252,195
133,254



Depreciation


At 1 January 2023
630,003
310,303
8,198,285
179,342
73,117


Charge for the year on owned assets
44,809
39,093
2,791,770
18,018
16,736


Disposals
-
-
(2,055,755)
-
-



At 31 December 2023

674,812
349,396
8,934,300
197,360
89,853



Net book value



At 31 December 2023
3,538,808
209,688
9,940,559
54,835
43,401



At 31 December 2022
3,583,617
183,118
10,742,848
57,374
17,280
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Page 23

 
M-B Truck and Van (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

           13.Tangible fixed assets (continued)


Total

£



Cost or valuation


At 1 January 2023
23,975,288


Additions
4,022,357


Disposals
(3,964,633)



At 31 December 2023

24,033,012



Depreciation


At 1 January 2023
9,391,050


Charge for the year on owned assets
2,910,426


Disposals
(2,055,755)



At 31 December 2023

10,245,721



Net book value



At 31 December 2023
13,787,291



At 31 December 2022
14,584,237



The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Freehold Property
3,538,808
3,583,617

3,538,808
3,583,617


The net book value of assets held under finance lease or hire purchase contracts, included above, are £10,305,559 (2022: £10,742,848).

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Page 24

 
M-B Truck and Van (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

14.


Stock

2023
2022
£
£

Finished goods and goods for resale
4,507,132
2,667,804

4,507,132
2,667,804


Deducted from stock at year end is an amount for Consignment stock from Mercedes Benz totaling £12,989,044 (2022: £11,226,823). The stock has been allocated to the company by Mercedes Benz however title does not pass to the company until a sales agreement has been made. 


15.


Debtors

2023
2022
£
£


Trade debtors
3,854,497
4,671,693

Amounts owed by group undertakings
95,504
34,292

Other debtors
506,630
233,820

Prepayments and accrued income
200,248
333,356

Deferred taxation
70,868
169,977

4,727,747
5,443,138


The company's trade debtors are stated after provisions for impairment of £117,713 (2022: £373,514).


16.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
343,822
585,845

Less: bank overdrafts
(1,965,036)
(608,403)

(1,621,214)
(22,558)


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Page 25

 
M-B Truck and Van (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

17.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
1,965,036
608,403

Bank loans
181,810
178,044

Trade creditors
3,551,141
4,841,636

Corporation tax
293,133
248,116

Other taxation and social security
41,091
366,983

Obligations under finance lease and hire purchase contracts
4,362,296
3,552,271

Accruals and deferred income
408,447
1,154,430

10,802,954
10,949,883



18.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
1,489,948
1,674,900

Net obligations under finance leases and hire purchase contracts
6,628,588
7,255,614

8,118,536
8,930,514


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Page 26

 
M-B Truck and Van (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

19.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
181,810
178,044


181,810
178,044

Amounts falling due 1-2 years

Bank loans
1,489,948
181,810


1,489,948
181,810

Amounts falling due 2-5 years

Bank loans
-
1,493,090


-
1,493,090


1,671,758
1,852,944


The bank loan attracts interest of LIBOR plus 1.9% and is repayable by installments with the residual balance of £1.3m requiring refinance in November 2024.
The bank loans and overdraft are secured by a fixed and floating debenture over the assets and undertakings of the company, a legal charge over the Mallusk, Worthing and Aldershot sites and by an unlimited intercompany cross guarantee. 


20.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
4,362,296
3,552,271

Between 1-2 years
3,203,000
2,980,981

Between 2-5 years
3,425,588
4,274,633

10,990,884
10,807,885

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Page 27

 
M-B Truck and Van (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

21.


Deferred taxation




2023
2022


£

£






At beginning of year
169,977
161,014


Charged to profit or loss
(99,109)
8,963



At end of year
70,868
169,977

The deferred tax asset is made up as follows:

2023
2022
£
£


Fixed asset timing differences
70,868
169,977

70,868
169,977


22.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



782,600 (2022: 782,600) Ordinary shares of £1.00 each
782,600
782,600



23.


Pension commitments

The company provides a contributory pension scheme for all relevant employees, which meets the necessary requirement of the stakeholder pension legislation. The pension charge represents contributions payable by the company to the fund and amounted to £116,989 (2022: £77,002). Contributions totalling £22,912 were payable to the fund at the balance sheet date and are included in creditors.


24.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
45,000
40,000

45,000
40,000

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Page 28

 
M-B Truck and Van (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 31 December 2023

25.


Related party transactions

The company has taken advantage of the exemptions under paragraph 33.1A from the provisions of FRS 102, on the grounds that all of the voting rights of the company are controlled within the group.


26.


Post balance sheet events

There have been no significant events affecting the company since the end of the financial year. 


27.


Controlling party

The company is a subsidiary of Inspired Business Investments Limited, which is the immediate parent company. At the year end the ultimate parent undertaking was MBNI Holdings Ltd. 

At the year end, the smallest and largest group of undertakings for which group financial statements are drawn up and of which the company is a member is MBNI Holdings Ltd., a company incorporated in Northern Ireland. Copies of the group financial statements are available to the public from Companies House, The Linenhall, 32 Linenhall Street, Belfast, BT2 88G. 
 
The ultimate controlling party is considered to be the shareholders of MBNI Holdings Ltd. 


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Page 29