Company registration number 07051457 (England and Wales)
M P BROS HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
M P BROS HOLDINGS LIMITED
COMPANY INFORMATION
Director
Mr S Rabadiya
Company number
07051457
Registered office
198-206 Acton Lane
Park Royal
London
NW10 7NH
Auditor
Berkeley Finch Limited
2nd Floor
314 Regents Park Road
Finchley
London
N3 2JX
Business address
198-206 Acton Lane
Park Royal
London
NW10 7NH
M P BROS HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Director's report
4
Director's responsibilities statement
5
Independent auditor's report
6 - 9
Group statement of comprehensive income
10
Group and company balance sheets
11 - 12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 36
M P BROS HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

The director presents the strategic report for the year ended 31 May 2024.

Review of business including key performance indicators

There has been no changes in the year in terms of the group structure and nature of activities, with M.P. Brothers Limited (“MPB”) continuing to be the principal trading subsidiary of the group.

With stable and positive relationships continuing with all key stakeholders, including employees, third party service providers and banking partners, MPB has continued to maintain a strong reputation for quality, technical capabilities and attention to customer care in the market. This has enabled the company to have another strong operational performance which in turn has resulted in a strong financial result for the year ended 31 May 2024 from a profitability, liquidity and overall balance sheet perspective.

 

M P Bros Holdings Limited has had a stable year, with no significant changes to occupancy or other operational factors which could materially impact the financial performance during the year.

 

Certain specific aspects which impacted the results are:

 

 

 

The results and financial position of the group are as follows:

 

The director is satisfied with the overall financial result and balance sheet position for the year ended 31 May 2024. Importantly, the order book for 2025 in MPB is strong and the director envisages continued growth and profitability for the forthcoming periods.

M P BROS HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
Principal risks and uncertainties

The principal risks and uncertainties for our group include the following:

 

Credit risk

The group's credit risks are mainly attributable to the amounts receivable from our customers for services carried out. Our policy therefore remains to have a good mix of long standing and established customers and we have a financial and management reporting system that monitors our customers and our debtors book on a day to day basis. As previously noted, a bad debt charge of £913,010 has been recognised during the year. Whilst the quantum is substantial, the director, with the full support of the team, has ensured this debt has been minimised.

 

Liquidity risk

The group finances its operations through a mixture of trade and intercompany debtors including amounts receivable from contracts less trade creditors and combination of short and long term bank borrowings. Therefore the director is confident that they can meet their obligations as they fall due. As noted, the group continues to have strong and positive relations with all stakeholders.

Business confidence in the construction industry sector continues to grow and MPB has a strong order book from well-established customers; this is testimony to the company maintaining its strong market reputation. The director is confident that MPB and the group overall will continue to generate positive results in the future and enjoy the support of its key service delivery and financing partners.

 

Health and safety risk

Construction is a high risk activity and therefore health and safety procedures and training remains at the top of our business management principles.

Development and performance

The group is confident and foresees that it will maintain, develop and grow its principal operating units through selective project acceptance. Such operating units will continue to focus on the residential housing market and in particular on the medium and high-end market.

Key performance indicators

The group relies on a number of Key Performance Indicators as an aid to setting performance targets and for

monitoring purposes.

 

 

 

 

 

 

 

2024

2023

Gross profit margin (%)

10.27

10.52

Operating profit margin (%)

2.03

5.64

Liquidity ratio

2.24

2.41

Total equity (£’000)

7,612

7,402

 

The movement in current year key performance indicators compared to 2023 have been explained above.

Employee involvement and employment

Our short chain of command keeps us in constant dialogue with our tradesmen and support staff and keeps them abreast of the group’s activity, performance, quality control, training, health and safety, environment issues, planning and future prospects.

 

We remain an equal opportunity employer without reference to age, ethnicity or gender and we are opposed to all forms of discrimination. We continue our policy regarding the employment of disabled persons and fair consideration is given to applications for employment by disabled persons where the requirements of the job can be adequately fulfilled by a handicapped person.

 

We extend our sincere thanks to all our staff for their continuing dedication and commitment and we hope they continue to work on developing a life-long and rewarding career where they feel valued and respected and a part of the on-going success of the company.

 

The future

The board looks forward with confidence to continue the success of the group into the future.

M P BROS HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 3 -

On behalf of the board

Mr S Rabadiya
Director
1 April 2025
M P BROS HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 4 -

The director presents his annual report and financial statements for the year ended 31 May 2024.

Principal activities

The principal activity of the group continued to be that of construction, joinery, property development and investment.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £30,000. The director does not recommend payment of a further dividend.

Director

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

Mr S Rabadiya
Future developments

Our plans for the future are to continue to win new contract tenders thus increasing our turnover and in turn profits.

Auditor

The auditor, Berkeley Finch Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of principal risks and uncertainties and future prospects.

Statement of disclosure to auditor

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

Medium-sized companies exemption

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

On behalf of the board
Mr S Rabadiya
Director
1 April 2025
M P BROS HOLDINGS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2024
- 5 -

The director is responsible for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

M P BROS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF M P BROS HOLDINGS LIMITED
- 6 -
Opinion

We have audited the financial statements of M P Bros Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group and company balance sheets, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the group and company 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the director 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 director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

M P BROS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF M P BROS HOLDINGS LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of director

As explained more fully in the director's responsibilities statement (set out on page 4), 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 group and parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the company or to cease operations, or has 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

To identify risks of material misstatement due to any irregularities, including fraud and non-compliance with laws and regulations, we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:-

 

 

 

 

 

M P BROS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF M P BROS HOLDINGS LIMITED
- 8 -

We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud may occur, by;

 

 

To address the risk of fraud through management bias and override of controls, we:

 

 

 

 

To address the risk of non-compliance with laws and regulations, we communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the company is subject to laws and regulations that directly effect the financial statements including financial reporting legislation (including related company legislation) and taxation legislation (including payroll taxes) and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statements items.

 

Secondly, the group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance the imposition of fines or litigation or the loss of the Group's licence to operate. We identified the following areas as those most likely to have such an effect: Building Regulations,2010 and healthcare and safety legislation regulations. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

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

M P BROS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF M P BROS HOLDINGS LIMITED
- 9 -

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.

Ajay Yadav FCA, FCCA (Senior Statutory Auditor)
For and on behalf of Berkeley Finch Limited
1 April 2025
Chartered Accountants
Statutory Auditor
2nd Floor
314 Regents Park Road
Finchley
London
N3 2JX
M P BROS HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
20,950,717
16,717,041
Cost of sales
(18,798,268)
(14,958,026)
Gross profit
2,152,449
1,759,015
Administrative expenses
(856,714)
(881,195)
Other operating income
36,247
65,000
Exceptional item
4
(913,010)
-
0
Operating profit
5
418,972
942,820
Interest receivable and similar income
7
147
384
Interest payable and similar expenses
8
(263,486)
(204,681)
Amounts written off investments
9
103,462
-
Profit before taxation
259,095
738,523
Tax on profit
10
(18,544)
(29,704)
Profit for the financial year
26
240,551
708,819
Profit for the financial year is attributable to:
- Owners of the parent company
177,497
703,059
- Non-controlling interests
63,054
5,760
240,551
708,819
Total comprehensive income for the year is attributable to:
- Owners of the parent company
177,497
703,059
- Non-controlling interests
63,054
5,760
240,551
708,819

The profit and loss account has been prepared on the basis that all operations are continuing operations.

M P BROS HOLDINGS LIMITED
GROUP AND COMPANY BALANCE SHEETS
AS AT 31 MAY 2024
31 May 2024
- 11 -
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
602,616
583,776
453,111
483,140
Investment properties
13
5,062,308
4,958,846
4,442,308
4,378,846
Investments
14
134,700
134,700
135
135
5,799,624
5,677,322
4,895,554
4,862,121
Current assets
Stocks
16
208,211
530,522
-
-
Debtors falling due after more than one year
17
-
62,753
-
-
Debtors falling due within one year
17
9,077,594
8,525,576
926,590
817,509
Cash at bank and in hand
250,252
283,985
201,614
154,316
9,536,057
9,402,836
1,128,204
971,825
Creditors: amounts falling due within one year
18
(4,256,982)
(3,905,831)
(2,342,214)
(2,284,432)
Net current assets/(liabilities)
5,279,075
5,497,005
(1,214,010)
(1,312,607)
Total assets less current liabilities
11,078,699
11,174,327
3,681,544
3,549,514
Creditors: amounts falling due after more than one year
19
(3,327,185)
(3,668,600)
(2,181,893)
(2,257,820)
Provisions for liabilities
Deferred tax liability
22
(139,108)
(103,872)
(83,501)
(58,571)
Net assets
7,612,406
7,401,855
1,416,150
1,233,123
Capital and reserves
Called up share capital
25
30
30
30
30
Capital redemption reserve
370
370
-
0
-
0
Profit and loss reserves
26
7,513,864
7,366,367
1,416,120
1,233,093
Equity attributable to owners of the parent company
7,514,264
7,366,767
1,416,150
1,233,123
Non-controlling interests
98,142
35,088
-
-
7,612,406
7,401,855
1,416,150
1,233,123

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £213,026 (2023 - £433,541 profit).

M P BROS HOLDINGS LIMITED
GROUP AND COMPANY BALANCE SHEETS (CONTINUED)
AS AT 31 MAY 2024
31 May 2024
- 12 -
The financial statements were approved and signed by the director and authorised for issue on
1 April 2025
2024-05-31
01 April 2025
Mr S  Rabadiya
Director
Company Registration No. 07051457
M P BROS HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 13 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 June 2022
30
370
6,693,308
6,693,708
29,328
6,723,036
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
-
703,059
703,059
5,760
708,819
Dividends
11
-
-
(30,000)
(30,000)
-
(30,000)
Balance at 31 May 2023
30
370
7,366,367
7,366,767
35,088
7,401,855
Year ended 31 May 2024:
Profit and total comprehensive income for the year
-
-
177,497
177,497
63,054
240,551
Dividends
11
-
-
(30,000)
(30,000)
-
(30,000)
Balance at 31 May 2024
30
370
7,513,864
7,514,264
98,142
7,612,406
M P BROS HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2022
30
829,552
829,582
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
433,541
433,541
Dividends
11
-
(30,000)
(30,000)
Balance at 31 May 2023
30
1,233,093
1,233,123
Year ended 31 May 2024:
Profit and total comprehensive income
-
213,027
213,027
Dividends
11
-
(30,000)
(30,000)
Balance at 31 May 2024
30
1,416,120
1,416,150
M P BROS HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
32
442,086
(1,504,969)
Interest paid
(263,486)
(204,681)
Income taxes refunded/(paid)
48,089
(41,261)
Net cash inflow/(outflow) from operating activities
226,689
(1,750,911)
Investing activities
Purchase of tangible fixed assets
(86,604)
(34,402)
Proceeds from disposal of tangible fixed assets
2,173
6,499
Interest received
147
384
Net cash used in investing activities
(84,284)
(27,519)
Financing activities
Repayment of borrowings
(152,702)
(128,600)
Repayment of bank loans
(186,014)
(197,134)
Payment of finance leases obligations
(2,342)
6,392
Dividends paid to equity shareholders
(30,000)
(30,000)
Net cash used in financing activities
(371,058)
(349,342)
Net decrease in cash and cash equivalents
(228,653)
(2,127,772)
Cash and cash equivalents at beginning of year
236,287
2,364,059
Cash and cash equivalents at end of year
7,634
236,287
Relating to:
Cash at bank and in hand
250,252
283,985
Bank overdrafts included in creditors payable within one year
(242,618)
(47,698)
M P BROS HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
33
300,132
(1,030,490)
Interest paid
(181,398)
(124,793)
Income taxes refunded/(paid)
40,649
(41,261)
Net cash inflow/(outflow) from operating activities
159,383
(1,196,544)
Investing activities
Interest received
-
0
384
Dividends received
-
0
200,000
Net cash (used in)/generated from investing activities
-
200,384
Financing activities
Repayment of bank loans
(82,085)
(95,978)
Dividends paid to equity shareholders
(30,000)
(30,000)
Net cash used in financing activities
(112,085)
(125,978)
Net increase/(decrease) in cash and cash equivalents
47,298
(1,122,138)
Cash and cash equivalents at beginning of year
154,316
1,276,454
Cash and cash equivalents at end of year
201,614
154,316
M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 17 -
1
Accounting policies
Company information

M P Bros Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 198-206 Acton Lane, Park Royal, London NW10 7NH.

 

The group consists of M P Bros Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

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

 

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

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company M P Bros Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 May 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 18 -

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

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

1.5
Turnover

Turnover for contracting activities is recognised at the fair value of the consideration receivable in the normal course of business, and shown net of VAT.

 

In respect of long term contracts, turnover represents the value of work done in the year including estimates of amounts not invoiced. Turnover in respect of long term contracts is recognised by reference to stage of completion.

 

Rental income

Rental income is recognised at the fair value of the consideration received or receivable excluding value added taxes.

1.6
Tangible fixed assets

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

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

Freehold buildings (excl. land)
straight line over 50 years
Plant and machinery
25% on reducing balance
Office and computer equipment
25% - 33% on reducing balance
Motor vehicles
25% on reducing balance

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

1.7
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 19 -

Depreciation is not provided in respect of investment properties. This policy represents a departure from the Companies Act 2006 which requires depreciation to be provided on all fixed assets. The director considers that this policy is necessary in order that the financial statements may give a true and fair view because current values and changes in current values are of prime importance rather than the calculation of systematic depreciation.

1.8
Fixed asset investments

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

 

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

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

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the group 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.10
Stocks

Stocks 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. Reversals of impairment losses are also recognised in profit or loss.

1.11
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 end 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 revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 20 -

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. 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. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.12
Cash and cash equivalents

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

1.13
Financial instruments

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

 

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

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial assets

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

Derecognition of financial liabilities

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

1.14
Equity instruments

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

1.15
Taxation

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

Current tax

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

Deferred tax

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

 

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

M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 22 -
1.16
Employee benefits

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

 

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

 

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

1.17
Retirement benefits

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

1.18
Leases

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

 

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

1.19
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.

1.20

Amount recoverable on contracts

Amounts recoverable on contracts, including work-in-progress, are shown within debtors and are stated at the net sales value of the work done after provisions for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Turnover and related costs are recorded as contract activity progresses. An appropriate proportion of the anticipated contract profit or loss is recognised as the contract activity progresses commensurate with performance and anticipated final outcome. Excess payments are included in creditors as payments received on account.

M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 23 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements have had the most significant effect on amounts recognised in the financial statements.

Revenue recognition

In order to determine the profit and loss that the group is able to recognise on its construction contracts in a specific period, the group has to allocate total costs of the construction contracts between the proportion completing in the period and the proportion to complete in the future period. The assessment of the total costs to be incurred requires a degree of estimation, as does the assessment of a developments's valuation.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Construction services
20,668,781
16,459,848
Support services
65,536
30,000
Rental income
216,400
227,193
20,950,717
16,717,041
2024
2023
£
£
Other revenue
Interest income
147
384

Construction services turnover is recognised by reference to the percentage of completion. The group has used an external surveyor's report to determine the percentage of completion at the year end.

 

Support services turnover is recognised based on the fair value of consideration receivable.

4
Exceptional item
2024
2023
£
£
Expenditure
Bad debt write-off
913,010
-

During the year, the group wrote-off £913,010 of historical debt.

M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 24 -
5
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Fees payable to the group's auditor for the audit of the group's financial statements
6,000
6,000
Depreciation of owned tangible fixed assets
66,985
61,454
Depreciation of tangible fixed assets held under finance leases
-
4,047
(Profit)/loss on disposal of tangible fixed assets
(1,394)
584
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Production staff
36
34
-
-
Administrative staff
6
6
1
1
Total
42
40
1
1

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,337,676
1,144,523
-
0
-
0
Social security costs
142,438
122,380
-
-
Pension costs
20,871
18,977
-
0
-
0
1,500,985
1,285,880
-
0
-
0
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
147
384
M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 25 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
230,871
168,936
Other interest on financial liabilities
31,698
35,400
262,569
204,336
Other finance costs:
Interest on finance leases and hire purchase contracts
917
956
Other interest
-
(611)
Total finance costs
263,486
204,681
9
Amounts written off investments
2024
2023
£
£
Changes in the fair value of investment properties
103,462
-
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
92,563
103,556
Adjustments in respect of prior periods
(109,255)
(79,507)
Total current tax
(16,692)
24,049
Deferred tax
Origination and reversal of timing differences
35,236
5,655
Total tax charge
18,544
29,704
M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
10
Taxation
(Continued)
- 26 -

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

2024
2023
£
£
Profit before taxation
259,095
738,523
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.82%)
64,774
153,760
Tax effect of expenses that are not deductible in determining taxable profit
233,126
5,906
Tax effect of income not taxable in determining taxable profit
(15,865)
-
0
Tax effect of utilisation of tax losses not previously recognised
(5,640)
-
0
Unutilised tax losses carried forward
48,119
(49,003)
Adjustments in respect of prior years
(43,593)
(79,507)
Group relief
(62,288)
-
0
Permanent capital allowances in excess of depreciation
(19,271)
(3,914)
Research and development tax credit
(147,549)
-
0
Effect of revaluations of investments
1,738
-
0
Under/(over) provided in prior years
(54,993)
-
0
Deferred tax on fair value adjustment
24,930
2,933
Deferred tax on timing differences
340
199
Profit on sale of fixed assets
(5,284)
(670)
Taxation charge
18,544
29,704
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
30,000
30,000
M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 27 -
12
Tangible fixed assets
Group
Freehold buildings (excl. land)
Plant and machinery
Office and computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 June 2023
385,368
545,770
35,448
160,829
1,127,415
Additions
-
0
-
0
2,019
84,585
86,604
Disposals
-
0
-
0
-
0
(12,509)
(12,509)
At 31 May 2024
385,368
545,770
37,467
232,905
1,201,510
Depreciation and impairment
At 1 June 2023
12,420
429,277
23,997
77,945
543,639
Depreciation charged in the year
2,481
29,124
3,367
32,013
66,985
Eliminated in respect of disposals
-
0
-
0
-
0
(11,730)
(11,730)
At 31 May 2024
14,901
458,401
27,364
98,228
598,894
Carrying amount
At 31 May 2024
370,467
87,369
10,103
134,677
602,616
At 31 May 2023
372,948
116,493
11,451
82,884
583,776
Company
Freehold buildings (excl. land)
Plant and machinery
Total
£
£
£
Cost
At 1 June 2023 and 31 May 2024
385,368
348,261
733,629
Depreciation and impairment
At 1 June 2023
12,420
238,069
250,489
Depreciation charged in the year
2,481
27,548
30,029
At 31 May 2024
14,901
265,617
280,518
Carrying amount
At 31 May 2024
370,467
82,644
453,111
At 31 May 2023
372,948
110,192
483,140

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Motor vehicles
-
0
12,140
-
0
-
0
M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
12
Tangible fixed assets
(Continued)
- 28 -

Included within freehold land and buildings, owned by the company, is land £261,314 (2023: £261,314) which is not depreciated. Freehold land and buildings with a carrying value of £370,467 (2023: £372,948) is pledged as security for the bank loan.

13
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 June 2023
4,958,846
4,378,846
Net gains or losses through fair value adjustments
103,462
63,462
At 31 May 2024
5,062,308
4,442,308

Investment property comprises freehold land and buildings. The fair value of the investment property has been arrived at on the basis of a valuation carried out by the director in May 2024.

 

The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties included in professional surveyors reports on the respective properties. The valuations were carried out in March 2024 and June 2024.

If investment properties were stated on a historical cost basis rather than a fair value basis, the amounts would have been included as £3,971,347 (2023: £3,971,347).

14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
135
135
Investments in joint ventures
134,700
134,700
-
0
-
0
134,700
134,700
135
135

Investments in joint ventures rrepresents an interest of 10% in a joint controlling entity, Tenterden Developments LLP.

 

MPB Property Limited, a wholly owned subsidiary of the parent company, has provided a fixed security charge in favour of the lending bank over its investment in the joint venture.

 

M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
14
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Group
Investment in Joint venture
£
Cost or valuation
At 1 June 2023 and 31 May 2024
134,700
Carrying amount
At 31 May 2024
134,700
At 31 May 2023
134,700
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 1 June 2023 and 31 May 2024
135
Carrying amount
At 31 May 2024
135
At 31 May 2023
135
15
Subsidiaries

Details of the company's subsidiaries at 31 May 2024 which have been included in the consolidated accounts are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
M.P. Brothers Ltd
198-206Acton Lane, London NW10 7NH
Construction
Ordinary
100.00
0
MPB Joinery Ltd
As above
Joinery
Ordinary
75.00
0
MPB Property Ltd
As above
Development
Ordinary
100.00
0

The investment in subsidiaries are all stated at cost.

MPB Property Limited and MPB Joinery Limited are exempt from the requirements of the Act relating to the audit of individual accounts under section 479A of Companies Act 2006. M P Bros Holdings Limited has provided a parent guarantee under section 479C to guarantee the liabilities of the subsidiaries.

M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 30 -
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
128,804
34,192
-
-
Work in progress
79,407
496,330
-
-
208,211
530,522
-
-
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,649,616
2,004,862
362,517
392,827
Gross amounts owed by contract customers
6,058,043
4,897,255
-
0
-
0
Corporation tax recoverable
-
0
1,741
-
0
-
0
Amounts owed by group undertakings
-
-
561,951
424,031
Other debtors
1,117,708
1,396,049
-
0
651
Prepayments and accrued income
252,227
225,669
2,122
-
0
9,077,594
8,525,576
926,590
817,509
Amounts falling due after more than one year:
Gross amounts owed by contract customers
-
0
62,753
-
0
-
0
Total debtors
9,077,594
8,588,329
926,590
817,509
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
440,385
245,108
89,820
95,978
Obligations under finance leases
21
2,342
2,342
-
0
-
0
Trade creditors
2,128,563
1,458,233
-
0
21,090
Amounts owed to group undertakings
-
0
-
0
1,793,216
1,750,667
Corporation tax payable
92,563
62,907
-
0
2,944
Other taxation and social security
199,888
461,839
-
-
Deferred income
23
136,208
125,083
136,208
125,083
Other creditors
418,065
385,283
307,970
277,970
Accruals and deferred income
838,968
1,165,036
15,000
10,700
4,256,982
3,905,831
2,342,214
2,284,432
M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 31 -
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
2,791,520
2,977,891
2,181,893
2,257,820
Obligations under finance leases
21
10,095
12,437
-
0
-
0
Other borrowings
20
525,570
678,272
-
0
-
0
3,327,185
3,668,600
2,181,893
2,257,820
Amounts included above which fall due after five years are as follows:
Payable by instalments
664,232
795,250
664,232
795,250
Payable other than by instalments
910,566
939,323
910,566
939,323
1,574,798
1,734,573
1,574,798
1,734,573
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
2,989,287
3,175,301
2,271,713
2,353,798
Bank overdrafts
242,618
47,698
-
0
-
0
Other loans
525,570
678,272
-
0
-
0
3,757,475
3,901,271
2,271,713
2,353,798
Payable within one year
440,385
245,108
89,820
95,978
Payable after one year
3,317,090
3,656,163
2,181,893
2,257,820

The company's bank loan is secured by a first legal charge over it's freehold property. The company also has a cross guarantee from M.P. Brothers Ltd and MPB Joinery Ltd (subsidiary companies) in respect of the obligations to the bank.

Other loans are secured by the personal guarantee of the director.

M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 32 -
21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
2,342
2,342
-
0
-
0
In two to five years
10,095
12,437
-
0
-
0
12,437
14,779
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is five years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

22
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
(18,832)
(3,753)
Revaluations
157,940
107,625
139,108
103,872
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
(34,239)
(18,854)
Revaluations
117,740
77,425
83,501
58,571
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 June 2023
103,872
58,571
Charge to profit or loss
35,236
24,930
Liability at 31 May 2024
139,108
83,501
M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 33 -
23
Deferred income
Group
Company
2024
2023
2024
2023
£
£
£
£
Other deferred income
136,208
125,083
136,208
125,083
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
20,871
18,977

The company operates a defined contribution retirement benefit scheme for all qualifying employees under the Auto Enrolment Workplace Pension scheme. The assets of the scheme are held separately from those of the company. The company contributes a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. The only obligation of the company with respect to the scheme is to make the specified contributions.

25
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
3,000
3,000
30
30

The company has one class of ordinary share which carry no right to fixed income.

26
Profit and loss reserves

The profit and loss reserves contain £511,970 of non-distributable profits. This comprises the effect of the fair value adjustment on investment properties of £669,910 and the subsequent adjustment for deferred tax on the fair value gain of £157,940 as accounted for through the statement of income and retained earnings in the current and prior years.

27
Financial commitments, guarantees and contingent liabilities

There are guarantee bonds in respect of the performance of M.P. Brothers Limited, a wholly owned subsidiary, issued in the normal course of business, amounting to £2,366,244 (2023: £1,441,650).

M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 34 -
28
Operating lease commitments
Lessor

The operating leases represent leases to third parties and group companies. The leases are negotiated over terms of 2 to 5 years and rentals are fixed for the lease term. There is no option in place for either party to extend the lease terms.

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
450,000
528,400
450,000
528,400
Between two and five years
1,344,596
1,795,800
1,344,596
1,795,800
1,794,596
2,324,200
1,794,596
2,324,200
29
Related party transactions
Transactions with related parties

The Group has taken advantage of the exemption available in accordance with Financial Reporting Standard 102, Section 33.1A, 'Related Party Disclosures' not to disclose transactions entered and outstanding balances between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.

During the year, rent of £158,000 (2023: £128,385) was charged to MPB Joinery Limited, a subsidiary company. At the year end, the company was owed £561,951 (2023: £424,031) by MPB Joinery Limited.

30
Directors' transactions

Dividends totalling £30,000 (2023 - £30,000) were paid in the year in respect of shares held by the company's director and his spouse.

31
Ultimate controlling party

The ultimate controlling party of the group is Mr S Rabadiya.

M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 35 -
32
Cash generated from/(absorbed by) group operations
2024
2023
£
£
Profit for the year after tax
240,551
708,819
Adjustments for:
Taxation charged
18,544
29,704
Finance costs
263,486
204,681
Investment income
(147)
(384)
(Gain)/loss on disposal of tangible fixed assets
(1,394)
584
Fair value gain on investment properties
(103,462)
-
0
Depreciation and impairment of tangible fixed assets
66,985
65,501
Movements in working capital:
Decrease/(increase) in stocks
322,311
(72,216)
Increase in debtors
(491,006)
(2,288,509)
Increase/(decrease) in creditors
115,093
(150,444)
Increase/(decrease) in deferred income
11,125
(2,705)
Cash generated from/(absorbed by) operations
442,086
(1,504,969)
33
Cash generated from/(absorbed by) operations - company
2024
2023
£
£
Profit for the year after tax
213,027
433,541
Adjustments for:
Taxation credited
(18,663)
(32,981)
Finance costs
181,398
124,793
Investment income
-
0
(200,384)
Fair value gain on investment properties
(63,462)
-
0
Depreciation and impairment of tangible fixed assets
30,029
39,212
Movements in working capital:
Increase in debtors
(109,081)
(200,109)
Increase/(decrease) in creditors
55,759
(1,191,857)
Increase/(decrease) in deferred income
11,125
(2,705)
Cash generated from/(absorbed by) operations
300,132
(1,030,490)
M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 36 -
34
Analysis of changes in net debt - group
2024
£
Opening net funds/(debt)
Cash and cash equivalents
236,287
Loans
(3,853,573)
Obligations under finance leases
(14,779)
(3,632,065)
Changes in net debt arising from:
Cash flows of the entity
112,405
Closing net funds/(debt) as analysed below
(3,519,660)
Closing net funds/(debt)
Cash and cash equivalents
7,634
Loans
(3,514,857)
Obligations under finance leases
(12,437)
(3,519,660)
35
Analysis of changes in net debt - company
2024
£
Opening net funds/(debt)
Cash and cash equivalents
154,316
Loans
(2,353,798)
(2,199,482)
Changes in net debt arising from:
Cash flows of the entity
129,383
Closing net funds/(debt) as analysed below
(2,070,099)
Closing net funds/(debt)
Cash and cash equivalents
201,614
Loans
(2,271,713)
(2,070,099)
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