Company registration number 04486480 (England and Wales)
MCV BUS AND COACH LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
MCV BUS AND COACH LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
MCV BUS AND COACH LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
71,129
56,145
Current assets
Stocks
156,439
132,504
Debtors
4
218,477
137,174
Cash at bank and in hand
496,526
514,957
871,442
784,635
Creditors: amounts falling due within one year
5
(1,009,326)
(2,836,080)
Net current liabilities
(137,884)
(2,051,445)
Net liabilities
(66,755)
(1,995,300)
Capital and reserves
Called up share capital
6
3,000,000
3,000,000
Profit and loss reserves
(3,066,755)
(4,995,300)
Total equity
(66,755)
(1,995,300)

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

MCV BUS AND COACH LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
31 December 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 2 September 2024 and are signed on its behalf by:
Mr J  Boswell
Mr K  Ghabbour
Director
Director
Mr M A Zaki
Director
Company registration number 04486480 (England and Wales)
MCV BUS AND COACH LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information

MCV Bus and Coach Limited is a private company limited by shares incorporated in England and Wales. The registered office is Sterling Place, Elean Business Park, Sutton, Ely, CB6 2QE.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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. The principal accounting policies adopted are set out below.

MCV BUS AND COACH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.2
Going concern

These financial statements have been prepared on the going concern basis, notwithstanding net liabilities of £66,755 at 31 December 2023, which the directors believe to be appropriate for the following reasons:true

 

The new business set-up following Brexit is working efficiently in 2023. The company will continue to represent Manufacturing Commercial Vehicles from Egypt (MCVE) in the UK market and Ireland, while Volvo Bus will continue to be the prime contractor on all contracts. The company has a diverse customer base and a strong market position, promoting a range of bus and coach solutions to customers in the UK and Ireland taking benefit of the large product portfolio, which MCV Egypt currently offers.

 

MCVE has made substantial investments with Volvo Bus in research and development to design and manufacture electric buses that meet the highest standards of quality, safety, reliability, and efficiency. By leveraging its expertise and technological capabilities, MCVE has developed a diverse range of electric buses tailored to different operational requirements.

 

MCV Bus and Coach Limited has successfully built a large portfolio of electric buses, which serves as a significant asset for the company's future growth and sustainability. The emergence of electric vehicles (EVs) in the transportation industry, driven by the need for more sustainable and environmentally friendly solutions, presents a valuable opportunity for MCV Bus and Coach Limited to expand its market presence and cater to the evolving needs of its customers.

 

The transition towards electric buses is supported by various factors, including government incentives, stricter emission regulations, and growing public awareness of the need for cleaner transportation options. As a result, the demand for electric buses is expected to experience significant growth in the coming years. MCV Bus and Coach Limited's extensive portfolio positions the company well to capitalise on this demand and establish itself as a key player in the electric bus market with its chassis partner, Volvo Bus.

 

The company is controlled by Mr K Ghabbour and financially supported by MCV Egypt S.A., which is also under the control of Mr K Ghabbour. MCV Egypt and Mr K Ghabbour have indicated that for at least 12 months from the date of approval of these financial statements, they will continue to make available such funds as are needed by the company and in particular will not seek repayment of the amounts disclosed in note 7. The directors consider that this should enable the company to continue in operational existence for the foreseeable future by meeting its liabilities as they fall due for payment.

As with any company placing reliance on an associated company and shareholder for financial support, the directors acknowledge there can be no certainty that this support will continue indefinitely. Although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.

 

Based on this undertaking, in conjunction with the initiatives outlined above, the directors believe that it remains appropriate to prepare the financial statements on the going concern basis.

1.3
Turnover

Turnover represents amounts receivable for goods and services, exclusive of VAT.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, 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.

1.4
Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation.

MCV BUS AND COACH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -

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:

Plant and machinery
20% straight line
Fixtures & fittings
20% and 33% straight line
Computer equipment
33% straight line
Motor vehicles
20% and 33% straight line

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 credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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).

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 is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

1.6
Stocks

Stock and work in progress 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.

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.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

1.8
Financial instruments

The company 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 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.

MCV BUS AND COACH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
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.

Impairment of financial assets

Financial assets 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.

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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and loans from connected 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.

1.9
Equity instruments

Equity instruments issued by the company 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 company.

1.10
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.

1.11
Retirement benefits

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

MCV BUS AND COACH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 7 -
1.12
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Employees

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

2023
2022
Number
Number
Total
14
13
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023
198,938
Additions
39,440
Disposals
(15,700)
At 31 December 2023
222,678
Depreciation and impairment
At 1 January 2023
142,793
Depreciation charged in the year
24,155
Eliminated in respect of disposals
(15,399)
At 31 December 2023
151,549
Carrying amount
At 31 December 2023
71,129
At 31 December 2022
56,145
MCV BUS AND COACH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
63,155
61,698
Other debtors
155,322
75,476
218,477
137,174
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
357,781
209,569
Taxation and social security
25,619
20,681
Other creditors
625,926
2,605,830
1,009,326
2,836,080
6
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
3,000,000
3,000,000
3,000,000
3,000,000
7
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Category
Description of
Income
Expenditure
transaction
2023
2022
2023
2022
£
£
£
£
Entities with control, joint control or significant influence over the company
Sale and purchase of goods
2,830,000
1,821,684
44,578
111,215
MCV BUS AND COACH LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Related party transactions
(Continued)
- 9 -
Balances with related parties

The following amounts were outstanding at the reporting end date:

Category
Amounts owed by
Amounts owed to
related parties
related parties
2023
2022
2023
2022
£
£
£
£
Entities with control, joint control or significant influence over the company
-
0
-
0
536,721
2,494,189
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