Company Registration No. 03846892 (England and Wales)
MP HIRE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PAGES FOR FILING WITH REGISTRAR
MP HIRE LIMITED
CONTENTS
Page
Independent auditor's report
1 - 3
Balance sheet
4
Notes to the financial statements
5 - 10
MP HIRE LIMITED
INDEPENDENT AUDITOR'S REPORT TO MP HIRE LIMITED
UNDER SECTION 449 OF THE COMPANIES ACT 2006
- 1 -
Opinion
We have audited the financial statements of MP Hire Limited (the 'company') for the year ended 31 December 2024 which comprise , the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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:
the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
MP HIRE LIMITED
INDEPENDENT AUDITOR'S REPORT TO MP HIRE LIMITED (CONTINUED)
UNDER SECTION 449 OF THE COMPANIES ACT 2006
- 2 -
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 directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, DVLA compliance, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR).
We understood how the company is complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was a susceptibility to fraud. Based on our understanding, our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements.
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.
MP HIRE LIMITED
INDEPENDENT AUDITOR'S REPORT TO MP HIRE LIMITED (CONTINUED)
UNDER SECTION 449 OF THE COMPANIES ACT 2006
- 3 -
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.
Mr Robert Humphreys BEng FCA (Senior Statutory Auditor)
for and on behalf of James Holyoak & Parker Limited
4 April 2025
Chartered Accountants
Statutory Auditor
1 Knights Court
Archers Way
Battlefield Enterprise Park
Shrewsbury
SY1 3GA
MP HIRE LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 4 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
25,911,189
27,141,353
Current assets
Stocks
5
16,500
12,400
Debtors
6
1,472,666
1,707,490
Cash at bank and in hand
1,200,184
1,063,382
2,689,350
2,783,272
Creditors: amounts falling due within one year
7
(5,654,337)
(9,256,437)
Net current liabilities
(2,964,987)
(6,473,165)
Total assets less current liabilities
22,946,202
20,668,188
Creditors: amounts falling due after more than one year
8
(14,214,558)
(12,048,285)
Provision for liabilities - deferred taxation
9
(2,614,000)
(2,572,000)
Net assets
6,117,644
6,047,903
Capital and reserves
Called up share capital
10
9,300
9,300
Other reserves
418,404
325,404
Capital redemption reserve
1,000
1,000
Profit and loss reserves
5,688,940
5,712,199
Total equity
6,117,644
6,047,903
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 4 April 2025 and are signed on its behalf by:
Bryan Thomas
Director
Company Registration No. 03846892
MP HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
1
Accounting policies
Company information
MP Hire Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Elms, Wem, Shrewsbury, Shropshire, SY4 5NU.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.3
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:
Land and buildings Freehold
Straight line over fifty years
Plant and machinery
25% reducing balance
Fixtures, fittings & equipment
25% and 33% reducing balance
Tractors and other motor vehicles
15% 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 credited or charged to profit or loss.
1.4
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
1.5
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.
MP HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 6 -
1.6
Financial instruments
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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.
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.
1.7
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Full provision is made for deferred tax assets and liabilities arising from timing differences arising from differences between the recognition of gains and losses in the accounts and their recognition for tax purposes.
1.8
Retirement benefits
The pension costs charged in the financial statements represent the contribution payable by the company during the year.
The regular cost of providing the retirement pensions and related benefits is charged to the profit and loss account as the underlying contributions become payable.
1.9
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.
MP HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 7 -
1.10
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
3
3
3
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
42,000
96,000
4
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Tractors and other motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 January 2024
850,000
3,199,951
19,624
29,699,285
33,768,860
Additions
176,919
7,785,478
7,962,397
Disposals
(185,329)
(7,205,136)
(7,390,465)
Revaluation
25,000
25,000
At 31 December 2024
875,000
3,191,541
19,624
30,279,627
34,365,792
Depreciation and impairment
At 1 January 2024
51,000
1,597,523
19,623
4,959,361
6,627,507
Depreciation charged in the year
17,000
412,428
3,742,901
4,172,329
Eliminated in respect of disposals
(110,323)
(2,166,910)
(2,277,233)
Revaluation
(68,000)
(68,000)
At 31 December 2024
1,899,628
19,623
6,535,352
8,454,603
Carrying amount
At 31 December 2024
875,000
1,291,913
1
23,744,275
25,911,189
At 31 December 2023
799,000
1,602,428
1
24,739,924
27,141,353
MP HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
4
Tangible fixed assets
(Continued)
- 8 -
Land and buildings were revalued at 31 December 2024 by Roger Parry & Partners LLP, independent valuers not connected with the company, on the basis of open market value. The valuation conformed to International Valuation Standards and was based on recent market transactions on an arm's length terms for similar properties. The valuation as at 31 December 2024 stood at £875,000.
If land and buildings were valued at historical cost, amounts would read as follows:-
2024
2023
£
£
Cost
772,926
772,926
Accumulated depreciation
(310,639)
(295,180)
Carrying value
462,287
477,746
5
Stocks
2024
2023
£
£
Consumable supplies
16,500
12,400
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,457,812
1,339,899
Amounts owed by group undertakings
258
292
Other debtors
14,596
367,299
1,472,666
1,707,490
7
Creditors: amounts falling due within one year
2024
2023
£
£
Obligations under finance leases
5,090,934
8,761,263
Trade creditors
361,879
477,896
Other taxation and social security
123,676
228
Other creditors
64,936
8,100
Accruals and deferred income
12,912
8,950
5,654,337
9,256,437
MP HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
8
Creditors: amounts falling due after more than one year
2024
2023
£
£
Obligations under finance leases
14,214,558
12,048,285
Obligations under finance leases are secured by fixed charges over the assets concerned. These comprise tractors and other items of plant and machinery held for the purposes of hire to customers under short-term operating leases.
Amounts due to John Deere Financial (the UK branch of John Deere SA) (JDF) which form the major portion of these obligations are supported by a first charge over the company's freehold premises. JDF also hold a charge over the company's plant & machinery.
9
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
3,210,000
3,105,000
Tax losses
(596,000)
(533,000)
2,614,000
2,572,000
On 1 April 2023, the main rate of corporation tax was increased from 19% to 25%. At the same time, a small companies rate was reintroduced and this has been set at 19%
In previous years, the company's deferred tax provision has been based on an applicable tax rate equivalent to the main rate - previously19%.The company has prepared forecasts for its corporation tax position for the forthcoming five years and these calculations indicate that reversal of these timing differences during that period is unlikely.
Accordingly, in these financial statements the calculation rate has been set at 20%.
MP HIRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
10
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A ordinary shares of £1 each
1,500
1,500
1,500
1,500
B ordinary shares of £1 each
7,500
7,500
7,500
7,500
C ordinary shares of £1 each
200
200
200
200
D ordinary shares of £1 each
100
100
100
100
9,300
9,300
9,300
9,300
11
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
2,414,698
4,974,000
2,414,698
4,974,000
Capital commitments relate to commitments to purchase tractors before the year end.
12
Parent company
The company is a wholly-owned subsidiary of E B Thomas Limited.
E B Thomas Limited (Registered number 13231152) is a company incorporated in England & Wales. A copy of the financial statements can be found at the registered office address: The Elms, Wem, Shrewsbury, Shropshire, SY4 5NU.
Dividends totalling £173,000 (2023 - £164,500) were paid to E B Thomas Limited, the company's holding company.
13
Directors' transactions
During the year the company provided rent- free accommodation to a director of the company.
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