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Registered number: 11352158









MPE ENGINEERING SERVICES LTD









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024

 
MPE ENGINEERING SERVICES LTD
 
 
COMPANY INFORMATION


Director
J McWeeney 




Registered number
11352158



Registered office
27 Abbey Road
Park Royal

England

NW10 7SJ




Independent auditors
Barnes Roffe LLP
Chartered Accountants & Statutory Auditors

3 Brook Business Centre

Cowley Mill Road

Uxbridge

Middlesex

UB8 2FX





 
MPE ENGINEERING SERVICES LTD
 

CONTENTS



Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditors' report
5 - 9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Statement of cash flows
13
Analysis of net debt
14
Notes to the financial statements
15 - 23


 
MPE ENGINEERING SERVICES LTD
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024

Introduction
 
The director presents the Strategic report for the year ended 30 June 2024.

Business review
 
The company has continued to perform successfully in a highly competitive market, undertaking work on a fixed-price and fixed-fee basis and improving operating margin while growing turnover.
The client-focused approach of the company has resulted in significant levels of repeat business, with the result that the company has been able to build on its reputation for delivering projects in a proactive, planned and efficient manner, on time and within budget.
The company has been able to grow the business due to the quality and commitment of its people and it continues to be proactive in sourcing people who share its vision and commitment.

Principal risks and uncertainties
 
There are a number of potential risks and uncertainties which could impact the company's performance and these are considered by the board on a regular basis. The director and the relevant management teams consider the risks of all significant business decisions and changes in the external environment and in the company's operations. The key risks affecting the business and controls in place to mitigate those risks are as follows:
Operating risk
The company's reputation and continued success depends on its ability to provide services which are valued by its clients. The company regularly reviews the quality of its services both internally and through formalised client feedback and evaluation.
Market risk
The company operates in a specialised market and seeks to maintain a competitive advantage by offering an appropriate and relevant service range and providing a high level of client service from professional and dedicated staff. The company manages market risk by providing added value services to its customers, having fast response times not only in supplying products and services but also in handling all customer queries. The company keeps abreast of developments in the market through maintaining strong relationships with its customers.
Taxation risk
The company is exposed to financial risks from increases in tax rates and changes to the basis of taxation including Corporation Tax and VAT. Principal controls to mitigate this risk include regular monitoring of legislative proposals, the engagement of experienced executives, and the use of experienced sector specific professional advisers to mitigate the impact of changes.
 

Page 1

 
MPE ENGINEERING SERVICES LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Management risk
 
The company is reliant on its high calibre team of operational managers and surveyors and its director. The company recruits and develops high calibre employees, many of whom have been with the company for a number of years. The director has implemented processes to ensure that the knowledge base of the operational management team is shared as much as possible throughout the company.
Financial risk
The company is principally funded from retained profits and is reliant on converting these profits into cash. Financial monitoring, forecasting and planning are continuous processes and emphasis is placed on balancing maintenance or growth of profit margin against investment in resources to maintain delivery of a high quality of service to its clients.
Economic risk
The company is exposed to the risks of an economic downturn that could lower the company's revenues and operating results in the future. However, actions continue to be taken to maximise the company's performance in all aspects of the business.
Development and performance
The Statement of financial position shows the company's financial position at the year end. There has been a significant increase in net assets and a slight improvement in liquidity over the previous year.

Key performance indicators
 
The key financial performance indicators used to determine the progress and performance of the company are set out below:
                                                                                            
2024               2023
                                                                                                 £          £
Turnover                                                                         34,030,875                 25,253,768
Gross profit                                                                        5,437,432                     3,836,920
Operating profit                                                                 2,550,738                      1,834,254
The company is focused on securing profitable work and to continue to increase its market share by expanding its customer base, and is working towards securing more work as a principal contractor in the future.
 


This report was approved by the board on 27 March 2025 and signed on its behalf.



................................................
J McWeeney
Director

Page 2

 
MPE ENGINEERING SERVICES LTD
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2024

The director presents his report and the financial statements for the year ended 30 June 2024.

Director's responsibilities statement

The director is responsible for preparing the Strategic report, the Director's report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006He is 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.

Going concern 
The director notes that the company is trading adequately and has sufficient working capital and other finance available to continue trading for a period of not less than 12 months from the date of approval of these financial statements. As such, the director believes that there are no significant uncertainties in his assessment of whether the business is a going concern and therefore has prepared the accounts on a going concern basis.

Results and dividends

The profit for the year, after taxation, amounted to £1,910,665 (2023 - £1,457,520).

No dividends were paid in the year (2023 - £Nil).

Director

The director who served during the year was:

J McWeeney 

Page 3

 
MPE ENGINEERING SERVICES LTD
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Matters covered in the Strategic report

The company has chosen, in accordance with section 414C of the Companies Act 2006, to set out the following information which would otherwise be required to be contained in the Director's report within Strategic report: likely financial risk management objective and policies; business review and future developments in the business of the company.

Disclosure of information to auditors

The director at the time when this Director's report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company's auditors are unaware, and

he 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.

Post balance sheet events

There are no subsequent events that require disclosure or adjustments to the financial statements.
 
Auditors

The auditorsBarnes Roffe LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 27 March 2025 and signed on its behalf.
 





................................................
J McWeeney
Director

Page 4

 
MPE ENGINEERING SERVICES LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MPE ENGINEERING SERVICES LTD
 

Opinion


We have audited the financial statements of MPE Engineering Services Ltd (the 'Company') for the year ended 30 June 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 30 June 2024 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 director's 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 director with respect to going concern are described in the relevant sections of this report.


Page 5

 
MPE ENGINEERING SERVICES LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MPE ENGINEERING SERVICES LTD (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 director is 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 Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Director's 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 Director's 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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 6

 
MPE ENGINEERING SERVICES LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MPE ENGINEERING SERVICES LTD (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Director's responsibilities statement set out on page 3, the director is 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 director determines 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 director is 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 director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
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.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with law and regulations, was as follows:  
 
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; 
We identified the laws and regulations applicable to the company through discussion with directors and other management, and from our commercial knowledge and experience of the construction sector;
The specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, are as follows:
°  Companies Act 2006.
°  FRS102.
°  Tax legislation.
°  Employment legislation.
 
We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing board minutes and inspecting legal correspondence; and
Laws and regulations were communicated within the audit team at the planning meeting, and during the audit as any further laws and regulation were identified. The audit team remained alert to instances of non-compliance throughout the audit.
Page 7

 
MPE ENGINEERING SERVICES LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MPE ENGINEERING SERVICES LTD (CONTINUED)


 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur by:
 
Making enquiries of management as to where they consider there was susceptibility to fraud and their knowledge of actual suspected and alleged fraud;
Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
Reviewing the financial statements and testing the disclosures against supporting documentation;
Performing analytical procedures to identify any unusual or unexpected trends or anomalies;
Inspecting and testing journal entries to identify unusual or unexpected transactions;
Assessing whether judgement and assumptions made in determining significant accounting estimates were indicative of management bias; and
Investigating the rationale behind significant transactions, or transactions that are unusual or outside the company’s usual course of business.
 
The areas that we identified as being susceptible to misstatement through fraud were: 
 
Management bias in the estimates and judgements made;
Management override of controls; and 
Posting of unusual journals or transactions.


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.


Page 8

 
MPE ENGINEERING SERVICES LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MPE ENGINEERING SERVICES LTD (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.





Elliot S J Arwas (Senior statutory auditor)
for and on behalf of
Barnes Roffe LLP
Chartered Accountants & Statutory Auditors
3 Brook Business Centre
Cowley Mill Road
Uxbridge
Middlesex
UB8 2FX

27 March 2025
Page 9

 
MPE ENGINEERING SERVICES LTD
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
Note
£
£

  

Turnover
 4 
34,030,875
25,253,768

Cost of sales
  
(28,593,443)
(21,416,848)

Gross profit
  
5,437,432
3,836,920

Administrative expenses
  
(2,886,694)
(2,002,666)

Operating profit
 5 
2,550,738
1,834,254

Interest payable and similar expenses
 9 
(225)
(405)

Profit before tax
  
2,550,513
1,833,849

Tax on profit
 10 
(639,848)
(376,329)

Profit for the financial year
  
1,910,665
1,457,520

Total comprehensive income for the year
  
1,910,665
1,457,520

The notes on pages 15 to 23 form part of these financial statements.

Page 10

 
MPE ENGINEERING SERVICES LTD
REGISTERED NUMBER: 11352158

STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024


2024

2023
Note
£
£
£
£

Fixed assets
  

Tangible assets
 11 
1,327
2,263

  
1,327
2,263

Current assets
  

Debtors: amounts falling due within one year
 12 
16,362,742
8,813,808

Cash at bank and in hand
 13 
2,309,721
998,040

  
18,672,463
9,811,848

Creditors: amounts falling due within one year
 14 
(12,926,618)
(5,977,604)

Net current assets
  
 
 
5,745,845
 
 
3,834,244

Total assets less current liabilities
  
5,747,172
3,836,507

  

Net assets
  
5,747,172
3,836,507


Capital and reserves
  

Called up share capital 
 15 
100
100

Profit and loss account
 16 
5,747,072
3,836,407

  
5,747,172
3,836,507


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

 27 March 2025.




................................................
J McWeeney
Director


The notes on pages 15 to 23 form part of these financial statements.

Page 11

 
MPE ENGINEERING SERVICES LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 July 2023
100
3,836,407
3,836,507


Comprehensive income for the year

Profit for the year
-
1,910,665
1,910,665
Total comprehensive income for the year
-
1,910,665
1,910,665


Total transactions with owners
-
-
-


At 30 June 2024
100
5,747,072
5,747,172



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 July 2022
100
2,378,887
2,378,987


Comprehensive income for the year

Profit for the year
-
1,457,520
1,457,520
Total comprehensive income for the year
-
1,457,520
1,457,520


Total transactions with owners
-
-
-


At 30 June 2023
100
3,836,407
3,836,507


The notes on pages 15 to 23 form part of these financial statements.

Page 12

 
MPE ENGINEERING SERVICES LTD
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
1,910,665
1,457,520

Adjustments for:

Depreciation of tangible assets
936
546

Interest paid
225
405

Taxation charge
639,848
376,329

Increase in debtors
(7,548,934)
(6,192,594)

Increase in creditors
6,885,515
3,696,349

Corporation tax paid
(576,349)
(174,183)

Net cash generated from/(used in) operating activities

1,311,906
(835,628)


Cash flows from investing activities

Purchase of tangible fixed assets
-
(2,809)

Net cash generated from/(used in) investing activities

-
(2,809)

Cash flows from financing activities

Interest paid
(225)
(405)

Net cash used in financing activities
(225)
(405)

Net increase/(decrease) in cash and cash equivalents
1,311,681
(838,842)

Cash and cash equivalents at beginning of year
998,040
1,836,882

Cash and cash equivalents at the end of year
2,309,721
998,040


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,309,721
998,040

2,309,721
998,040


The notes on pages 15 to 23 form part of these financial statements.

Page 13

 
MPE ENGINEERING SERVICES LTD
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 JUNE 2024




At 1 July 2023
Cash flows
At 30 June 2024
£

£

£

Cash at bank and in hand

998,040

1,311,681

2,309,721


998,040
1,311,681
2,309,721

The notes on pages 15 to 23 form part of these financial statements.

Page 14

 
MPE ENGINEERING SERVICES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1.


General information

MPE Engineering Services Ltd is a company limited by shares, incorporated in England and Wales. The address of the registered office is 27 Abbey Road, Park Royal, England, NW10 7SJ.
The company specialises in engineering activities related to the construction of commercial buildings.

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

Going concern

The director notes that the company is trading adequately and has sufficient working capital and other finance available to continue trading for a period of not less than 12 months from the date of approval of these financial statements. As such, the director believes that there are no significant uncertainties in his assessment of whether the business is a going concern and therefore has prepared the accounts on a going concern basis.

 
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.
Profit is recognised on long-term contracts, if the final outcome can be assessed with reasonable certainty, by including turnover and related costs in the Statement of comprehensive income as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs to date bear to total expected costs for that contract.

Page 15

 
MPE ENGINEERING SERVICES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

  
2.4

Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable. When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract costs are recognised as expenses in the year in which they are incurred and contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.
The "percentage of completion method" is used to determine the appropriate amount to recognise in a given year. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion.

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of comprehensive income 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.

 
2.6

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 the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds

 
2.7

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.

Page 16

 
MPE ENGINEERING SERVICES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)


2.7
Tangible fixed assets (continued)

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:

Office equipment
-
33%

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 the Statement of comprehensive income.

 
2.8

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.

 
2.9

Cash and cash equivalents

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

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

 
2.10

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.

 
2.11

Finance costs

Finance costs are charged to the Statement of comprehensive income 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.

Page 17

 
MPE ENGINEERING SERVICES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.12

Taxation

Tax is recognised in the Statement of comprehensive income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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



3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, the director is required to take judgments, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised where the revision affects only that year, or in the year of the revision and future years where the revision affects both current and future years.
Critical judgments
The following judgments (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Revenue recognition
Revenue recognition is a key area of judgment especially in companies operating in the construction industry. The calculation of contract turnover and the gross amounts due from customers is contingent on the accurate measurement of work done and internal valuations by key management personnel. The director has ensured that generally accepted industry practices and methodologies are followed by all relevant personnel and that accounting and quality management systems are regularly evaluated and certified.


4.


Turnover

All turnover relates to the company’s principal activity and arose within the United Kingdom.

Page 18

 
MPE ENGINEERING SERVICES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation
936
546

Other operating lease rentals
42,967
19,486


6.


Auditors' remuneration

2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
9,270
9,000

7.


Employees

2024
2023
£
£

Wages and salaries
674,421
612,344

Social security costs
81,932
71,827

Cost of defined contribution scheme
48,194
36,666

804,547
720,837


The average monthly number of employees, including directors, during the year was 12 (2023 - 12).


8.


Director's remuneration



During the year the director did not receive any emoluments (2023 - £Nil).


9.


Interest payable and similar expenses

2024
2023
£
£


Other interest payable
225
405

225
405

Page 19

 
MPE ENGINEERING SERVICES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

10.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
639,848
376,349

Adjustments in respect of previous years
-
(20)

Total current tax
639,848
376,329

Taxation on profit on ordinary activities
639,848
376,329

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 22%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
2,550,513
1,833,849


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 22 %)
637,628
375,939

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,519
1,009

Capital allowances for year differing to depreciation
234
(594)

Other timing differences
(533)
(25)

Total tax charge for the year
639,848
376,329


Factors that may affect future tax charges

There are no significant factors that may affect future tax charges.

Page 20

 
MPE ENGINEERING SERVICES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

11.


Tangible fixed assets





Office equipment

£



Cost 


At 1 July 2023
2,809



At 30 June 2024

2,809



Depreciation


At 1 July 2023
546


Charge for the year 
936



At 30 June 2024

1,482



Net book value



At 30 June 2024
1,327



At 30 June 2023
2,263


12.


Debtors

2024
2023
£
£


Trade debtors
13,053,069
4,322,054

Other debtors
838,241
1,043,568

Prepayments and accrued income
26,995
23,334

Amounts recoverable on long term contracts
2,444,437
3,424,852

16,362,742
8,813,808



13.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
2,309,721
998,040

2,309,721
998,040


Page 21

 
MPE ENGINEERING SERVICES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

14.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
3,634,865
3,028,487

Corporation tax
439,848
376,349

Other taxation and social security
75,962
79,849

Other creditors
7,022,522
87,243

Accruals and deferred income
1,753,421
2,405,676

12,926,618
5,977,604



15.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



100 Ordinary shares of £1 each
100
100



16.


Reserves

Profit and loss account

Profit and loss account includes all current and prior year retained profits and losses.


17.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £48,194 (2023 - £36,666). Contributions totalling £4,770 (2023 - £4,326) were payable to the fund at the reporting date and are included in creditors.

Page 22

 
MPE ENGINEERING SERVICES LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

18.


Commitments under operating leases

At 30 June 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
41,636
38,636

Later than 1 year and not later than 5 years
134,159
142,795

Later than 5 years
99,000
132,000

274,795
313,431


19.


Related party transactions

During the year the company made sales of £33,505,611 (2023 - £18,151,294) to companies under common control of the director.
 
Included within debtors is an amount of £11,738,600 (2023 - £4,235,408) due from companies under common control of the director.
 
Included within creditors is an amount of £7,659,413 (2023 - £8,244) due to companies under common control of the director.

During the year the company incurred a management charge of £800,385 (2023 - £380,000) and a shared services cost of £965,000 (2023 - £590,000) from a company under common control of the director.
 

20.


Post balance sheet events

There are no other subsequent events that require disclosure or adjustments to the financial statements.


21.


Controlling party

The ultimate controlling party is the director by virtue of his 100% shareholding in the company.

 
Page 23