Company registration number 08131186 (England and Wales)
MPG CONTRACTS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
MPG CONTRACTS LTD
COMPANY INFORMATION
Director
M Gavin
Company number
08131186
Registered office
Building 3
North London Business Park
Oakleigh Road South
London
N11 11GN
Auditor
Evans Mockler Limited
5 Beauchamp Court
Victors Way
Barnet
London
EN5 5TZ
MPG CONTRACTS LTD
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 19
MPG CONTRACTS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The director presents the strategic report for the year ended 30 September 2024.
Review of the business
The company achieved a 20% increase in turnover compared to 2023, together with the improved gross margins to 15% (2023: 6%), demonstrating robust market performance and effective business development strategies.
Working capital remains strong, places the company in a good position for future growth.
Overheads were effectively controlled and kept within budget, supporting overall profitability.
Key performance indicators
| | | | |
| | | | 4,100% increase – significant financial turnaround |
| | | | 97% increase – strong growth in liquidity |
| | | | 8% increase – continued asset base strengthening |
| | | | 16% decrease – early settlement efficiencies |
Health and safety
One of the primary objectives of the business is to have industry leading Health and Safety performance.
We ensure that risks associated with health and safety are responsibly managed and controlled.
In 2024 our accident frequency rate was nil. We continue to track all minor accidents and non-injury events to ensure that protecting one another is at the forefront of what we do.
Mental health awareness across the construction industry is a major focus and we ensure that all projects have a dedicated mental health first aider to assist in this initiative.
Environmental and Sustainability is another key focus – we are gold members of the Sustainability school and strongly advocate better waste and environmental processes within our industry.
We have maintained our accreditations and system standards in 2024:
ISO 9001-2015: Quality Management System
ISO 14001-2018: Environmental Management System
ISO 45001: Health and Safety Management System
CHAS: SSIP Core Criteria and UK H&S Legislation
Constructionline: Gold
FIRAS: Installers of Fire-Resistant Products - Penetration Sealing
Sustainability School: Gold
Considerate Contractors Scheme: Care for Environment, Safety, Workforce and Community
Principal risks and uncertainties
Principal risks and uncertainties include price inflation and the prevalence of “race to the bottom” tenders.
In response, we are focusing on partnerships with clients who value financial certainty and reliable delivery on cost and schedule.
MPG CONTRACTS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Corporate social responsibility
We continue to add social value through a variety of activities that help support our people and make a positive contribution within communities.
A broad spectrum of learning and development training is delivered to trade, professional staff ranging from NVQ Level 2 to 6 qualifications.
Ongoing investments in sustainability initiatives, the apprenticeship programme, and employee development reflect our commitment to long-term growth and value creation.
During the period we supported charity fundraising events to the value of £19,600. Beneficiaries included St George, Canary Wharf Contractors Fund and the London Irish Centre.
Looking forward
The company is in a strong financial position, supported by a healthy balance sheet and strong cash generation.
Clients are increasingly assessing financial stability before awarding contracts, positioning us favourably due to our strong metrics.
A solid order book for 2025 underpins expectations for continued growth in the coming fiscal year.
M Gavin
Director
5 June 2025
MPG CONTRACTS LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
The director presents his annual report and financial statements for the year ended 30 September 2024.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £619,950. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
M Gavin
G Maye
(Resigned 3 July 2024)
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its director during the year. These provisions remain in force at the reporting date.
Auditor
Evans Mockler Limited were appointed as auditor to the company and is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company'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.
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 company’s auditor 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 company’s auditor 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
M Gavin
Director
5 June 2025
MPG CONTRACTS LTD
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
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 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 and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
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 enable them to ensure that the financial statements comply with the Companies Act 2006. He 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.
MPG CONTRACTS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF MPG CONTRACTS LTD
- 5 -
Opinion
We have audited the financial statements of MPG Contracts Ltd (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:
give a true and fair view of the state of the company's affairs as at 30 September 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
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.
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:
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.
MPG CONTRACTS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF MPG CONTRACTS LTD (CONTINUED)
- 6 -
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.
Responsibilities of director
As explained more fully in the director's responsibilities statement, 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 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.
Extent to which the audit was capable of detecting irregularities, including fraud
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:
we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the Directors (as required by auditing standards).
we had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.
with the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the Directors.
we communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.
we addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
MPG CONTRACTS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF MPG CONTRACTS LTD (CONTINUED)
- 7 -
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.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Simon Toghill
Senior Statutory Auditor
For and on behalf of Evans Mockler Limited
5 June 2025
Chartered Certified Accountants
Statutory Auditor
5 Beauchamp Court
Victors Way
Barnet
London
EN5 5TZ
MPG CONTRACTS LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
13,624,806
11,344,583
Cost of sales
(11,583,569)
(10,637,151)
Gross profit
2,041,237
707,432
Administrative expenses
(785,895)
(694,475)
Operating profit
4
1,255,342
12,957
Interest receivable and similar income
67,611
28,550
Interest payable and similar expenses
(696)
Profit before taxation
1,322,257
41,507
Tax on profit
7
(343,222)
(19,629)
Profit for the financial year
979,035
21,878
The profit and loss account has been prepared on the basis that all operations are continuing operations.
MPG CONTRACTS LTD
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
8
14,288
24,760
Current assets
Debtors
9
1,569,721
3,288,037
Cash at bank and in hand
4,999,610
2,535,413
6,569,331
5,823,450
Creditors: amounts falling due within one year
10
(1,481,392)
(1,102,450)
Net current assets
5,087,939
4,721,000
Total assets less current liabilities
5,102,227
4,745,760
Provisions for liabilities
Deferred tax liability
3,572
6,190
(3,572)
(6,190)
Net assets
5,098,655
4,739,570
Capital and reserves
Called up share capital
12
100
100
Profit and loss reserves
5,098,555
4,739,470
Total equity
5,098,655
4,739,570
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 5 June 2025 and are signed on its behalf by:
M Gavin
Director
Company registration number 08131186 (England and Wales)
MPG CONTRACTS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 October 2022
100
5,016,537
5,016,637
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
21,878
21,878
Dividends
-
(298,945)
(298,945)
Balance at 30 September 2023
100
4,739,470
4,739,570
Year ended 30 September 2024:
Profit and total comprehensive income for the year
-
979,035
979,035
Dividends
-
(619,950)
(619,950)
Balance at 30 September 2024
100
5,098,555
5,098,655
MPG CONTRACTS LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
14
3,132,585
121,214
Interest paid
(696)
Income taxes (paid)/refunded
(115,353)
14,541
Net cash inflow from operating activities
3,016,536
135,755
Investing activities
Purchase of tangible fixed assets
(9,952)
Interest received
67,611
28,550
Net cash generated from investing activities
67,611
18,598
Financing activities
Dividends paid
(619,950)
(298,945)
Net cash used in financing activities
(619,950)
(298,945)
Net increase/(decrease) in cash and cash equivalents
2,464,197
(144,592)
Cash and cash equivalents at beginning of year
2,535,413
2,680,005
Cash and cash equivalents at end of year
4,999,610
2,535,413
MPG CONTRACTS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
1
Accounting policies
Company information
MPG Contracts Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Building 3, North London Business Park, Oakleigh Road South, London, N11 11GN.
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
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company 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.
1.3
Turnover
Revenue is defined as the value of goods and services rendered excluding discounts and VAT and is recognised as follows:
Contract accounting
Revenue comprises the fair value of construction carried out in the year, based on an internal assessment of work carried out. Once the outcome of a construction contract can be estimated reliably, profit is recognised in the Statement of comprehensive income on a stage of contract completion basis by reference to the costs incurred to date. Losses expected in bringing a contract to completion are recognised immediately in the Statement of comprehensive income as soon as they are forecast. Amounts recoverable on long term contracts, included within debtors, represent revenue, less progress payments received. Where progress payments exceed revenue, the excess is shown as amounts payable on long term contracts within current liabilities.
1.4
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:
Plant and equipment
25% on cost
Computers
20% on cost
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.
MPG CONTRACTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 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.
1.6
Cash and cash equivalents
Cash at bank and in hand 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.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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.
MPG CONTRACTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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 company 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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, 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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
MPG CONTRACTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.9
Taxation
The tax charged 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.
1.10
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
Performance of long-term contracts
Recognised amounts on construction contract revenues and related receivables reflect the directors' best estimate on outcome and stage of completion of long-term contracts. This includes the assessment of the profitability of the long-term contracts. Costs to complete and contract profitability are subject to significant estimation and uncertainty.
3
Turnover
The turnover and profit before taxation are attributable to one principal activity, construction services. Turnover is attributable to a single geographical market, United Kingdom.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
18,375
17,500
Depreciation of owned tangible fixed assets
10,472
15,211
MPG CONTRACTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
2
2
Site management and administration
18
20
Total
20
22
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
938,825
965,197
Social security costs
106,145
106,291
Pension costs
118,467
68,926
1,163,437
1,140,415
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
15,000
24,000
Company pension contributions to defined contribution schemes
74,750
40,000
89,750
64,000
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
345,840
16,019
Adjustments in respect of prior periods
(80)
Total current tax
345,840
15,939
Deferred tax
Origination and reversal of timing differences
(2,618)
3,690
Total tax charge
343,222
19,629
MPG CONTRACTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
7
Taxation
(Continued)
- 17 -
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
1,322,257
41,507
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.00%)
330,564
9,132
Tax effect of expenses that are not deductible in determining taxable profit
17,904
11,528
Group relief
(2,628)
(2,204)
Permanent capital allowances in excess of depreciation
(2,437)
Under/(over) provided in prior years
(80)
Differences in capital allowances and depreciation
(2,618)
3,690
Taxation charge for the year
343,222
19,629
8
Tangible fixed assets
Plant and equipment
Computers
Total
£
£
£
Cost
At 1 October 2023 and 30 September 2024
76,738
69,648
146,386
Depreciation and impairment
At 1 October 2023
62,449
59,177
121,626
Depreciation charged in the year
7,516
2,956
10,472
At 30 September 2024
69,965
62,133
132,098
Carrying amount
At 30 September 2024
6,773
7,515
14,288
At 30 September 2023
14,289
10,471
24,760
9
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,039,789
1,142,910
Gross amounts owed by contract customers
424,931
2,012,826
Other debtors
93,636
85,427
Prepayments and accrued income
11,365
46,874
1,569,721
3,288,037
MPG CONTRACTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
10
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
956,908
814,571
Amounts owed to group undertakings
11,080
94,368
Corporation tax
245,796
15,309
Other taxation and social security
57,146
70,755
Other creditors
72,065
35,972
Accruals and deferred income
138,397
71,475
1,481,392
1,102,450
11
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
118,467
68,926
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
12
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
13
Controlling party
MPG Contracts Holdings Limited is the company's immediate and ultimate parent company.
The parent undertaking of the largest and smallest group of which the company is a member and consolidated financial statements are prepared is MPG Contracts Holdings Limited. Copies of consolidated financial statements can be obtained from its registered office: Building 3, North London Business Park, Oakleigh Road South, London, N11 1GN.
MPG CONTRACTS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
14
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
979,035
21,878
Adjustments for:
Taxation charged
343,222
19,629
Finance costs
696
Investment income
(67,611)
(28,550)
Depreciation and impairment of tangible fixed assets
10,472
15,211
Movements in working capital:
Decrease in debtors
1,718,316
941,261
Increase/(decrease) in creditors
148,455
(848,215)
Cash generated from operations
3,132,585
121,214
15
Analysis of changes in net funds
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
2,535,413
2,464,197
4,999,610
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