Registered number
02565308
Midland Building Products Limited
Report and Financial Statements
31 March 2024
Midland Building Products Limited
Report and accounts
Contents
Page
Company information 1
Directors' report 2
Strategic report 4
Independent auditor's report 6
Income statement 9
Statement of comprehensive income 10
Statement of financial position 11
Statement of changes in equity 12
Statement of cash flows 13
Notes to the financial statements 14
Midland Building Products Limited
Company Information
Directors
AP Wade
J W Vann - Appointed 3rd April 2023
T P McGuire - Appointed 2nd May 2023
M A Finney - Appointed 12th June 2023
D T Finney - Appointed 12th June 2023
Secretary
J W Vann
Auditors
Muras Baker Jones Limited
Regent House
Bath Avenue
Wolverhampton
West Midlands
WV1 4EG
Bankers
NatWest
3 Church Street
Oldbury
Warley
West Midlands
Registered office
Unit 10 Spartan Industrial Centre
Brickhouse Lane
West Bromwich
West Midlands
B70 0DH
Registered number
02565308
Midland Building Products Limited
Registered number: 02565308
Directors' Report
The directors present their report and financial statements for the year ended 31 March 2024.
Principal activities
The company's principal activity during the year continued to be manufacturers and suppliers of joinery products to the construction industry.
Dividends
The directors have declared the payment of a dividend of £l4 per share on the Ordinary A shares and no dividend has been declared on the Ordinary B shares.
Directors
The following persons served as directors during the year:
MT Finney - Resigned 12th June 2023
PJ McGuire - Resigned 2nd May 2023
AP Wade
J W Vann - Appointed 3rd April 2023
T P McGuire - Appointed 2nd May 2023
M A Finney - Appointed 12th June 2023
D T Finney - Appointed 12th June 2023
Directors' responsibilities
The directors are responsible for preparing the report and 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 (Financial Reporting Standard 102 and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of information to auditors
Each person who was a director at the time this report was approved confirms that:
so far as he is aware, there is no relevant audit information of which the company's auditor is unaware; and
he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board on 24 March 2025 and signed on its behalf.
M A Finney
Director
Midland Building Products Limited
Strategic Report
Review of the business
The year ended 31st March 2024 showed a decrease in turnover and profitability following the downturn in 2023 in the construction industry. Turnover decreased by 19.5% to 2022 levels. whilst the gross profit percentage reduced by 0.5% to 31.75%. Overheads have decreased to £7,763,248 from £8,126,392 in 2023, and other operating income increased to £1,938,028 from £1,901,412 in 2023. The overall net effect was an decrease in net profit before tax to £1,040,585 from £2,271,349 in 2023.
The directors consider that the financial position of the business at 31 March 2024 is satisfactory and are confident of maintaining profitability in the future.
Financial key performance indicators
Turnover for the company decreased to £20,922,910 in 2024 (March 2023 £25,685,246)
Profit before tax decreased to £1,040,585 in March 2024 (March 2023 £2,271,349)
Cash position decreased to £2,553,288 in March 2024 (March 2023 £2,911,594)
Net assets grew to £4,725,743 in March 2024 (March 2023 £4,374,497)
Future developments
Although the construction industry has shown a significant downturn in demand as a result of the increases in inflation and interest rates, the company has increased turnover by 14% in the first 6 months of 2024-25 compared to the corresponding period in 2023-24, with a consequent increase in profitability. There have been a number of corporate failures in 2024 and the directors have continued to maintain a prudent stategy on credit risk and continue to maintain credit insurance to mitigate any risk.
Principal risks and uncertainties
The principal risks and uncertainties facing the company are as a result of the current continuing economic climate in the UK with significant increases in inflation and interest rates.
There has been continued risk of supply chain disruption and economic disruption which impacts customer demand. To mitigate this position the company is working closely with suppliers to minimise the risk of future disruption. The company has a diverse customer base in terms of concentration and revenue, reducing its exposure to a temporary downturn in trade. The war in Ukraine has continued to impact on the UK economy, which is reflected in cost pressures on the company which the directors are striving to minimise. The effect on cashflow in this economic climate is a primary concern and the directors continue to monitor its risk of incurring bad debts. The company maintains a policy of rigorous credit control, which continues to be enhanced by a credit insurance policy taken out to minimise the risk of non-payment. The directors are also strictly monitoring and controlling overheads in order to maintain profitability.
Financial instruments
The company has a normal exposure to price, credit, liquidity and cash flow risks arising from trading activities which are only conducted in sterling. The company does not enter into any hedging transactions.
This report was approved by the board on 24 March 2025 and signed on its behalf.
M A Finney
Director
Midland Building Products Limited
Independent auditor's report
to the members of Midland Building Products Limited
Opinion
We have audited the financial statements of Midland Building Products Limited (the 'company') for the year ended 31 March 2024 which comprise the Income Statement, the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the 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 the Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
the information given in the strategic report and the 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, 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.
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:
In planning and designing our audit tests we identify and assess the risks of material misstatement within the financial statements, whether due to fraud or error. Our assessment of these risks includes consideration of the nature of the industry and sector, the control environment and the business performance along with the results of our enquiries of management about their own identification and assessment of risks and irregularities. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, UK tax legislation and other laws and regulations identified as risk areas identified from our discussions with management.
We communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
After consideration of the above risks we then carried out audit procedures including the following:
specific tests in relation to material amounts and disclosures in the financial statements considered to be of high risk;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
reading minutes of management meetings;
reviewing correspondence with H M Revenue & Customs;
enquiring of management and reviewing any correspondence with legal advisors concerning actual and potential litigation and claims;
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
There are inherent limitations in our audit procedures described above. The more removed that the laws and regulations are from financial transactions the less likely it is that we would be aware on non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council’s website at 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.
TREVOR BRUETON BA FCA
(Senior Statutory Auditor) Regent House
for and on behalf of Bath Avenue
Muras Baker Jones Limited Wolverhampton
Statutory Auditor West Midlands
24 March 2025 WV1 4EG
Midland Building Products Limited
Income Statement
for the year ended 31 March 2024
Notes 2024 2023
£ £
Turnover 3 20,922,910 25,685,246
Cost of sales (14,279,867) (17,407,638)
Gross profit 6,643,043 8,277,608
Distribution costs (899,881) (1,029,727)
Administrative expenses (6,863,367) (7,096,665)
Other operating income 1,938,028 1,901,412
Operating profit 4 817,823 2,052,628
Profit on sale of fixed assets 13,400 22,000
Profit on the disposal of investments - 54,000
Income from investments 187,000 193,000
Interest receivable 7 52,967 14,649
Interest payable 8 (30,605) (64,928)
Profit on ordinary activities before taxation 1,040,585 2,271,349
Tax on profit on ordinary activities 9 (269,339) (357,487)
Profit for the financial year 771,246 1,913,862
All activities of the company are from continuing operations.
Midland Building Products Limited
Statement of Comprehensive Income
for the year ended 31 March 2024
Notes 2024 2023
£ £
Profit for the financial year 771,246 1,913,862
Other comprehensive income - -
Total comprehensive income for the year 771,246 1,913,862
Midland Building Products Limited
Statement of Financial Position
as at 31 March 2024
Notes 2024 2023
£ £
Fixed assets
Tangible assets 10 860,325 761,955
Investments 11 3,196,842 3,144,000
4,057,167 3,905,955
Current assets
Stocks 12 1,283,717 1,639,492
Debtors 13 5,899,890 6,690,315
Cash at bank and in hand 2,553,288 2,911,594
9,736,895 11,241,401
Creditors: amounts falling due within one year 14 (8,272,107) (9,836,897)
Net current assets 1,464,788 1,404,504
Total assets less current liabilities 5,521,955 5,310,459
Creditors: amounts falling due after more than one year 15 (560,000) (829,660)
Provisions for liabilities
Deferred taxation 17 (130,114) (204)
Other provisions 18 (106,098) (106,098)
(236,212) (106,302)
Net assets 4,725,743 4,374,497
Capital and reserves
Called up share capital 19 60,000 60,000
Profit and loss account 20 4,665,743 4,314,497
Total equity 4,725,743 4,374,497
These financial statements were approved by the board of directors and authorised for issue on 24 March 2025 and are signed on behalf of the board by:
D T Finney
Director
Company registration number 02565308
Midland Building Products Limited
Statement of Changes in Equity
for the year ended 31 March 2024
Share Profit Total
capital and loss
account
£ £ £
At 1 April 2022 60,000 3,450,635 3,510,635
Profit for the financial year 1,913,862 1,913,862
Dividends (1,050,000) (1,050,000)
At 31 March 2023 60,000 4,314,497 4,374,497
At 1 April 2023 60,000 4,314,497 4,374,497
Profit for the financial year 771,246 771,246
Dividends (420,000) (420,000)
At 31 March 2024 60,000 4,665,743 4,725,743
Midland Building Products Limited
Statement of Cash Flows
for the year ended 31 March 2024
Notes 2024 2023
£ £
Operating activities
Profit for the financial year 771,246 1,913,862
Adjustments for:
Profit on sale of fixed assets (13,400) (22,000)
Profit on the disposal of investments - (54,000)
Income from investments (187,000) (193,000)
Interest receivable (52,967) (14,649)
Interest payable 30,605 64,928
Tax on profit on ordinary activities 269,339 357,487
Depreciation 388,085 351,969
Decrease/(increase) in stocks 355,775 (462,638)
Decrease/(increase) in debtors 790,425 (539,755)
(Decrease)/increase in creditors (1,615,487) 312,019
736,621 1,714,223
Dividends received 187,000 193,000
Interest received 52,967 14,649
Interest paid (30,605) (64,928)
Corporation tax paid (513,673) (362,842)
Cash generated by operating activities 432,310 1,494,102
Investing activities
Payments to acquire tangible fixed assets (486,555) (332,176)
Payments to acquire investments (52,842) -
Proceeds from sale of tangible fixed assets 13,500 22,000
Proceeds from sale of investments - 87,500
Cash used in investing activities (525,897) (222,676)
Financing activities
Repayment of loans (264,719) (259,921)
Cash used in financing activities (264,719) (259,921)
Net cash (used)/generated
Cash generated by operating activities 432,310 1,494,102
Cash used in investing activities (525,897) (222,676)
Cash used in financing activities (264,719) (259,921)
Net cash (used)/generated (358,306) 1,011,505
Cash and cash equivalents at 1 April 2,911,594 1,900,089
Cash and cash equivalents at 31 March 2,553,288 2,911,594
Cash and cash equivalents comprise:
Cash at bank 2,553,288 2,911,594
Midland Building Products Limited
Notes to the Accounts
for the year ended 31 March 2024
1 Summary of significant accounting policies
Basis of preparation
The financial statements have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland.
Going concern
The directors have carefully considered the impact of the current economic climate on the company's financial position, liquidity and future performance. As set out in the strategic report the company has continued to trade strongly despite the ecomomic uncertainty and the directors are confident that sales and profitability will be maintained. Therefore the directors believe that the company is well placed to manage its business risks successfully. Accordingly they have reasonable expectation that the company has adequate resources to continue in opertional existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Freehold buildings over 4 years
Leasehold land and buildings 7% - 25% on cost
Plant and machinery 6.67% - 33.3% on cost
Investments
Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other highly liquid investments wih original maturities of three months or less and bank overdrafts. In the statement of financial position bank overdrafts are shown within borrowings or current liabilities.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.
Government grants are recognised using the accrual model and performance model.
Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.
Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of the grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.
Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Provisions
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
Employee benefits
Short-term employee benefits are recoginised as an expense in the period they are incurred.
The obligations for contributions to defined contribution schemes are recognised as an expense in the period they are incurred. The assets of the schemes are held separately from those of the company in independently administered funds.
2 Critical accounting estimates and judgements
Management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not apparent from other sources. The estimates and 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 assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both the current and future periods.
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are summarised below.
Depreciation and residual values
The directors have reviewed asset lives and associated residual values of all fixed asset classes and have concluded that the asset lives and residual values are appropriate.
Provisions for dilapidations (note 18)
The provision for dilapidations of £106,098 represents the directors best estimate of the cost to the company at the termination of the lease.
3 Analysis of turnover 2024 2023
£ £
Sale of goods 20,922,910 25,685,246
By geographical market:
UK 20,922,910 25,685,246
4 Operating profit 2024 2023
£ £
This is stated after charging:
Depreciation of owned fixed assets 388,085 351,969
Operating lease rentals - land and buildings - 188,000
Auditors' remuneration for audit services 14,700 17,000
Key management personnel compensation (including directors' emoluments) 1,298,357 2,005,503
5 Directors' emoluments 2024 2023
£ £
Emoluments 865,794 563,649
Highest paid director:
Emoluments 284,541 296,878
Number of directors to whom retirement benefits accrued: 2024 2023
Number Number
Defined contribution plans 6 4
6 Staff costs 2024 2023
£ £
Wages and salaries 5,564,411 5,865,765
Social security costs 585,635 636,520
Other pension costs 136,377 127,777
6,286,423 6,630,062
Average number of employees during the year Number Number
Administration 71 65
Distribution 8 8
Manufacturing 65 64
Maintenance 8 8
152 145
7 Interest receivable 2024 2023
£ £
Bank interest 20,373 14,649
Other interest 32,594 -
52,967 14,649
8 Interest payable 2024 2023
£ £
Other loans 30,605 38,295
Other interest - 26,633
30,605 64,928
9 Taxation 2024 2023
£ £
Analysis of charge in period
Current tax:
UK corporation tax on profits of the period 108,130 513,763
Adjustments in respect of previous periods 31,299 -
139,429 513,763
Deferred tax:
Origination and reversal of timing differences 129,910 (156,276)
Tax on profit on ordinary activities 269,339 357,487
Factors affecting tax charge for period
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows:
2024 2023
£ £
Profit on ordinary activities before tax 1,040,585 2,271,349
Standard rate of corporation tax in the UK 25% 19%
£ £
Profit on ordinary activities multiplied by the standard rate of corporation tax 260,146 431,556
Effects of:
Expenses not previously deductible for tax purposes (96,824) 129,698
Capital allowances for period in excess of depreciation (8,442) (10,821)
Non taxable investment income (46,750) (36,670)
Adjustments to tax charge in respect of previous periods 31,299 -
Current tax charge for period 139,429 513,763
Factors that may affect future tax charges
Future tax charges will be affected by changes in the rate of UK corporation tax and the availability of capital allowances.
10 Tangible fixed assets
Land and buildings Leasehold land & buildings Plant and machinery Total
At cost At cost At cost
£ £ £ £
Cost or valuation
At 1 April 2023 37,158 835,553 3,582,631 4,455,342
Additions - - 486,555 486,555
Disposals - - (63,826) (63,826)
At 31 March 2024 37,158 835,553 4,005,360 4,878,071
Depreciation
At 1 April 2023 17,158 742,151 2,934,078 3,693,387
Charge for the year - 50,931 337,154 388,085
On disposals - - (63,726) (63,726)
At 31 March 2024 17,158 793,082 3,207,506 4,017,746
Carrying amount
At 31 March 2024 20,000 42,471 797,854 860,325
At 31 March 2023 20,000 93,402 648,553 761,955
11 Investments
Other
investments
£
Cost
At 1 April 2023 3,144,000
Additions 52,842
At 31 March 2024 3,196,842
The company holds 20% or more of the share capital of the following companies:
Capital and Profit (loss)
Company Shares held reserves for the year
Class % £ £
ZMR Ltd Ordinary 25 1,096,463 590,652
Door-kit Solutions Ltd Ordinary 20 1,137,398 632,006
Leeds Doors & Cubicles Ltd Ordinary 20 375,456 65,834
Fire & Acoustic Seals Ltd Ordinary 20 524,225 275,946
Southern Doors & Cubicles Ltd Ordinary 20 856,053 220,813
Specialist Joinery Products Ltd A Ordinary 20 623,652 15,492
Manchester Doors & Cubicles Ltd Ordinary 20 697,770 123,321
UK Doorsets Limited Ordinary 24 264,489 73,795
The year ends of the above companies are not co-terminus with Midland Building Products Limited. The information above is based on the following year ends
Company Year End Registered office
ZMR Ltd 30/04/2023 Unit 10 Spartan Industrial Centre, Brickhouse Lane, Great Bridge B70 0DH
Door-kit Solutions Ltd 31/10/2023 6-11 Spartan Industrial Centre, Brickhouse Lane, Great Bridge B70 0DH
Leeds Doors & Cubicles Ltd 28/02/2024 Unit 10 Spartan Industrial Centre, Brickhouse Lane, Great Bridge B70 0DH
Fire & Acoustic Seals Ltd 30/04/2023 6-11 Spartan Industrial Centre, Brickhouse Lane, Great Bridge B70 0DH
Southern Doors & Cubicles Ltd 31/01/2024 Unit 10 Spartan Industrial Centre, Brickhouse Lane, Great Bridge B70 0DH
Specialist Joinery Products Ltd 31/10/2023 Unit 10 Spartan Industrial Centre, Brickhouse Lane, Great Bridge B70 0DH
Manchester Doors & Cubicles Ltd 31/07/2023 Unit 10 Spartan Industrial Centre, Brickhouse Lane, Great Bridge B70 0DH
UK Doorsets Limited 31/03/2023 MBP House, Spartan Industrial Centre, Brickhouse Lane, Great Bridge B70 0DH
12 Stocks 2024 2023
£ £
Raw materials and consumables 718,478 1,029,107
Finished goods and goods for resale 565,239 610,385
1,283,717 1,639,492
13 Debtors 2024 2023
£ £
Trade debtors 3,994,827 5,151,126
Other debtors 1,580,515 1,342,904
Prepayments and accrued income 324,548 196,285
5,899,890 6,690,315
Amounts due after more than one year included in:
Other debtors 754,756 335,000
Included in other debtors is a loan to a close family member in the sum of £560,602. The loan is being repaid in monthly instalments at a commercial rate of interest
14 Creditors: amounts falling due within one year 2024 2023
£ £
Other loans - unsecured (see note 16) 269,660 264,719
Trade creditors 2,535,525 3,246,118
Amounts owed to group undertakings and undertakings in which the company has a participating interest 118,058 198,058
Corporation tax 110,316 484,560
Other taxes and social security costs 541,968 774,680
Other creditors 2,945,370 3,528,035
Accruals and deferred income 281,210 290,727
Dividends payable 1,470,000 1,050,000
8,272,107 9,836,897
15 Creditors: amounts falling due after one year 2024 2023
£ £
Other loans - unsecured (see note 16) 560,000 829,660
16 Loans 2024 2023
£ £
Analysis of maturity of debt:
Within one year or on demand 269,660 264,719
Between one and two years 260,000 269,660
Between two and five years 300,000 460,000
After five years - 100,000
829,660 1,094,379
Loans not wholly repayable within five years:
Other loan repayable over 7 years with interest @ 3% pa - 600,000
17 Deferred taxation 2024 2023
£ £
Other short term timing differences (33,983) (164,775)
Accelerated capital allowances 164,097 164,979
130,114 204
2024 2023
£ £
At 1 April 204 156,480
Charged/(credited) to the profit and loss account 129,910 (156,276)
At 31 March 130,114 204
The other short term timing differences of £(33,983) will reverse in the 2024/25 financial year.
18 Provisions for liabilities
Dilapidation Total
£
At 1 April 2023 106,098 106,098
At 31 March 2024 106,098 106,098
The provision for dilapidations has been recognised for the expected costs to be incurred as a result of the occupancy of the lease premises. The company employed the services of qualified surveyor to carry out a dilapidations survey in September 2012. The results of the survey have been incorporated into the final provision at 31 March 2024 and 31 March 2023. The method used by the company is based on costs advised by the surveyor and conforms with the requirements of FRS 102, for provisions.
The directors have reviewed the current dilapidations provision as the lease came to an end in April 2022. They are satisfied that the current provision is adequate to cover anticipated costs.
19 Share capital Nominal 2024 2024 2023
value Number £ £
Allotted, called up and fully paid:
A Ordinary shares £1 each 30,000 30,000 30,000
B Ordinary shares £1 each 30,000 30,000 30,000
60,000 60,000
The A ordinary shares are voting shares with the B ordinary shares being non-voting shares. Dividends can be paid on both classes of shares with each carrying equal rights to repayments of capital in the event of a sale or winding up.
20 Profit and loss account 2024 2023
£ £
At 1 April 4,314,497 3,450,635
Profit for the financial year 771,246 1,913,862
Dividends (420,000) (1,050,000)
At 31 March 4,665,743 4,314,497
21 Dividends 2024 2023
£ £
Dividends on ordinary shares (note 20) 420,000 1,050,000
22 Capital commitments 2024 2023
£ £
Amounts contracted for but not provided in the accounts - 23,787
23 Employee benefits
Defined contribution plans
The amount recognised in the profit and loss account as an expense in relation to defined contribution plans was £136,377 (2023 £127,777).
24 Government grants
The amounts recognised in the financial statements for government grants are as follows:
2024 2023
£ £
Recognised in other operating income
Government grants recognised directly in income - 4,007
25 Contingent liabilities
The company's bank overdraft facility is secured by a fixed and floating charge over all the property or undertaking of the company.
26 Related party transactions
The directors MT Finney, PJ McGuire, JJ Vann of the company are members of Midland Building Products Limited Self Administered Pension Scheme. The contributions to the scheme during the year amounted to £Nil (2023 £Nil). The company occupies premises owned by the pension scheme and rent charged to the profit and loss account amounting to £188,000 (2023 £188,000). The directors are also joint owners of properties which the company occupies. Rental for these properties charged to the profit and loss account was £224,847 (2023 £221,247). The rental in all instances was charged at market value. The company occupies premises owned by other related parties and the rental charged to the profit and loss account was £30,000 (2023 £120,000).
The directors MT Finney, PJ McGuire, JJ Vann, M A Finney D T Finney, T P McGuire and J W Vann were also directors of the following companies during the year and together with their families they control these companies by virtue of their family shareholdings.
Transactions with related parties which were all at market value are as follows:
Year 2024 Sales Purchases Debtors Creditors
£ £ £ £
Manchester Doors & Cubicles Ltd 373,744 9,698 175,996 -
Specialist Joinery Products Ltd 73,489 16,664 138,002 -
ZMR Ltd 288,610 2,851,042 158,638 466,499
Southern Doors & Cubicles Ltd 1,413,325 19,055 312,987 -
UK Doorsets Ltd 228,200 2,186,040 169,018 263,681
Leeds Doors & Cubicles Ltd 686,058 90,165 39,187 3,574
Joinery Specialists Ltd 156,956 5,205 78,234 441
Fire & Acoustic Seals Ltd 813 524,730 161,810 35,712
Door-kit Solutions Ltd 74,771 1,580 180,371 1,896
IBS Building Products Ltd 415,264 20,900 262,295 1,291
MBP Ironmongery Ltd - 146,549 - 81,761
Year 2024 Management Charges Received
£
Manchester Doors & Cubicles Ltd 240,695
Specialist Joinery Products Ltd 152,170
ZMR Ltd 227,716
Southern Doors & Cubicles Ltd 279,849
UK Doorsets Ltd 185,689
Leeds Doors & Cubicles Ltd 98,595
Joinery Specialists Ltd 140,144
Fire & Acoustic Seals Ltd 147,701
Door-kit Solutions Ltd 93,775
IBS Building Products Lts -
Year 2023 Sales Purchases Debtors Creditors
£ £ £ £
Manchester Doors & Cubicles Ltd 526,973 10,236 219,421 784
Specialist Joinery Products Ltd 52,658 5,160 83,680 -
ZMR Ltd 248,123 3,384,780 132,595 473,158
Southern Doors & Cubicles Ltd 1,736,595 58,583 166,884 233
UK Doorsets Ltd 327,059 2,491,488 237,955 540,379
Leeds Doors & Cubicles Ltd 1,064,962 96,444 169,374 20,769
Joinery Specialists Ltd 95,530 9,865 212,170 2,132
Fire & Acoustic Seals Ltd 792 545,398 165,933 56,045
Door-kit Solutions Ltd 21,594 - 86,278 -
Year 2023 Management Charges Received
£
Manchester Doors & Cubicles Ltd 221,824
Specialist Joinery Products Ltd 141,654
ZMR Ltd 248,905
Southern Doors & Cubicles Ltd 351,565
UK Doorsets Ltd 226,160
Leeds Doors & Cubicles Ltd 132,948
Joinery Specialists Ltd 126,346
Fire & Acoustic Seals Ltd 153,723
Door-kit Solutions Ltd -
Carrying amount due to current and former directors 2024 2023
£ £
M T Finney- resigned 12th June 2023
Director and shareholder
Loans advanced less amounts withdrawn
Amount due to M T Finney (250,225) (314,657)
P J McGuire - resigned 2nd May 2023
Director and shareholder
Loans advanced less amounts withdrawn
Amount due to P J McGuire (194,028) (354,123)
J J Vann - resigned 25th October 2022
Director and shareholder
Loans advanced less amounts withdrawn
Amount due to J J Vann (109,887) (163,643)
M A Finney - appointed 12th June 2023
Director and shareholder
Loans advanced less amounts withdrawn
Amount due to M A Finney (66,805) (129,557)
D T Finney - appointed 12th June 2023
Director and shareholder
Loans advanced less amounts withdrawn
Amount due to D T Finney (33,363) (113,581)
J W Vann - appointed 3rd April 2023
Director and shareholder
Loans advanced less amounts withdrawn
Amount due to J W Vann (16,886) (79,188)
T P McGuire -appointed 2nd May 2023
Director and shareholder
Loans advanced less amounts withdrawn
Amount due to T P McGuire (62,827) (94,067)
2024 2023
£ £
Dividends payable to directors 1,120,000 700,000
Key management personnel compensation 2024 2023
£ £
Short-term benefits 1,298,357 2,005,503
27 Controlling party
The company was controlled throughout the whole of the current year and previous financial period by the board of directors who between them own the majority of the ordinary class A voting shares.
28 Presentation currency
The financial statements are presented in Sterling.
29 Legal form of entity and country of incorporation
Midland Building Products Limited is a private company limited by shares and incorporated in England.
30 Principal place of business
The address of the company's principal place of business is:
Units 6-11 Spartan Industrial Centre
Brickhouse Lane
West Bromwich
West Midlands
B70 0DH
The address of the company's registered office is:
Unit 10 Spartan Industrial Centre
Brickhouse Lane
West Bromwich
West Midlands
B70 0DH
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