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Registration number: 01141925

MPH Construction Limited

Annual Report and Financial Statements

for the Year Ended 30 September 2024

 

MPH Construction Limited

Contents

Company Information

1

Strategic Report

2 to 4

Directors' Report

5 to 6

Statement of Directors' Responsibilities

7

Independent Auditor's Report

8 to 10

Profit and Loss Account

11

Statement of Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Statement of Cash Flows

15

Notes to the Financial Statements

16 to 28

 

MPH Construction Limited

Company Information

Directors

G Gaunt

A G Roberts

A L Roberts

G R Jones

Registered office

Bromfield House
Queens Lane
Bromfield Industrial Estate
Mold
Flintshire
CH7 1XB

Accountants

Kajaine Kafton LLP
Chartered Accountants42-46 Station Road
Edgware
Middlesex
HA8 7AB

Auditors

Richlands Business Advisers Limited
Chartered Accountants and Statutory Auditor42-46 Station Road
Edgware
Middlesex
HA8 7AB

 

MPH Construction Limited

Strategic Report for the Year Ended 30 September 2024

The directors present their strategic report for the year ended 30 September 2024.

Principal activity

The principal activity of the company is building construction, civils and maintenance for a wide range of commercial and public clients.

Fair review of the business

MPH Construction Ltd is a well-established construction company based in Mold, North Wales serving its clients throughout Wales, North of England and the Midlands.

Our team of employees are passionate about quality for its customers in all sectors including maintenance, education, leisure, industrial, commercial, aeronautical, pharmaceutical, health, nuclear, blue light, utilities and rail. The business continues to invest in its people, infrastructure, and systems.

We are pleased to say that the company has performed well during the period and strengthen our position with our key clients. Operational delivery remained strong, with many clients appreciating our approach to productivity and programme. The trading conditions faced by the company remained competitive throughout the year. Rising interest rates, volatile energy prices and changes introduced by the new government. The financial resilience of the company, our supply chains and the strength of those relationships has helped protect the company and our clients from any significant impact.

The company’s overall financial and business performances has seen an increase in turnover. Over the year to 30 September 2024, the company’s turnover was £42,894,564 representing an increase in turnover of £14,143,837. The gross profit margin has increased to £7,666,381 (2023 - £6,182,037) as compared to the previous year.

Key performance indicators

The Directors and Senior Managers, who are the key management, use financial measures such as profitability, turnover and level of secured workload to monitor performance as these are considered to be the main drivers of the company’s continued success. Turnover and profitability are measured in the same basis as that seen in the profit and loss account.

We also consider non-financial measures, such as the ongoing monitoring of our safety scores, review of customer satisfaction levels and satisfaction of our employees.
 

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2024

2023

Turnover

£

42,894,564

28,750,727

Gross Profit

£

7,666,381

6,182,037

Net asset

£

8,456,686

4,747,624

Gross profit margin

%

18

21

 

MPH Construction Limited

Strategic Report for the Year Ended 30 September 2024

Principal risks and uncertainties


The Board is responsible for the company’s risk management and internal controls to ensure that significant risks are identified and managed appropriately.

The principal risks and uncertainties facing the company going forward are:

• High levels of inflation, interest rates and energy costs.
• The availability of capital budgets to customers.
• The increased potential for failures in our supply chain.
• Changes in the outlook for the UK economy.
• The availability of sufficient skilled people.
• The effect of heightened global tensions on the economy and supply chains.
• The inflation risk associated with delivering fixed price contracts.
• The health and safety of our people in challenging operating environments.

The Board is confident that these risks and uncertainties area appropriately managed and mitigated by the company’s strategies, procedures and commercial arrangements.

Additional risks which the business faces include but not limited to are as follows:

• Regulatory and compliance obligations.
• Legal risks resulting from contracts with customers and suppliers.
• Information technology risks especially with cybercrime increasing and becoming more sophisticated.
• The credit risk of completing works ahead of being paid.
• Competition in securing contracts and frameworks.
• Contract management.

 

MPH Construction Limited

Strategic Report for the Year Ended 30 September 2024

Future Outlook

Our business strategy continues to hold our employees as our biggest asset. The dedication and performance of our employees is at the heart of the development and growth of our business.

We will continue to focus on the following:

• The health, safety and wellbeing of our employees and supply chain.
• Maintain growth and operational improvement in markets in which we are more suited to operate within, whilst avoiding one off clients.
• Continue to establish ourselves in our core sectors and maintain our position on several frameworks.
• Continue to provide our clients with a highly focused approach and ‘can do’ attitude.
• Prioritise our responsibility to develop our processes to combat climate change and ensure that our business sustainable strategy continues to be at the heart of our development and growth.
• Improving efficiency and productivity.
• The management of inflation risk.
• Supporting people through the cost-of-living crisis.
• Impact of the Building Safety Act 2022.
• High satisfaction levels and customer loyalty.
• Selectivity with our client base, in order to minimise any risk to the business and provide a respective level of overhead and profitability contribution.

The construction industry remains a very competitive market, we have responded remarkably well to the challenge so far, our business strategy will need to adapt to meet the changes in the environment we work and the needs of our clients.

Our forward order book for 2025 - 2026 remains strong, which provides us with stability for the forthcoming years.
 

Approved by the Board on 9 June 2025 and signed on its behalf by:

.........................................
G Gaunt
Director

.........................................
A G Roberts
Director

 
     
 

MPH Construction Limited

Directors' Report for the Year Ended 30 September 2024

The directors present their report and the financial statements for the year ended 30 September 2024.

Directors of the company

The directors who held office during the year were as follows:

G Gaunt

A G Roberts

C P Jones (resignedceased 13 November 2023)

A L Roberts

G R Jones


Dividends
The dividends proposed and paid during the year ended 30 September 2024 amounted to £999,750 (2023 - £2,676,750 ).
 

Financial instruments

Objectives and policies

The Board is responsible for the Company’s financial instruments to ensure that significant risks are identified and managed appropriately. As the company’s trade is that of construction services and maintenance there is an inherent risk to the business, and it would not be possible to eliminate these risks and uncertainties however the company identifies risks and manages these as best as it can.

Price risk, credit risk, liquidity risk, cash flow risk and foreign currency risk

The company operates in a competitive industry and manages this risk through investment in personnel and reputation to be able to provide a superior service and retain revenue from existing clients as well as securing new business.

There is exposure to credit risk from sales and the company reviews the risk profile for all new customers carefully. Whilst there are bad debts this year and in the prior year these form a very small proportion of overall sales. The company monitors all clients on an ongoing basis to assess any potential credit risk that may arise.

Liquidity risk is considered low in this business as there are surplus cash reserves and the net current assets are positive. The company will ensure that the working capital requirements are met adequately and plan projects according to the funding available.

The company finances its operations through a mixture of retained profits and cash balances to maintain its cashflow risk.

Foreign currency risk is considered to be low as the vast majority of trading in the company for customers and suppliers are done in GBP. The company will continue to assess this situation and seek to mitigate risks of foreign currency should the need arise.

Charitable donations

The company made charitable donations of £1,635 during the year to Just giving and various charities.
 

 

MPH Construction Limited

Directors' Report for the Year Ended 30 September 2024

Matters covered in the Strategic Report

The company’s future developments are mentioned in the Strategic Report.

Reappointment of auditors

The auditors, Richlands Business Advisers Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Post Balance Sheet Events

There have been no significant events affecting the company since the year end.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the Board on 9 June 2025 and signed on its behalf by:

.........................................
G Gaunt
Director

.........................................
A G Roberts
Director

 
     
 

MPH Construction Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

MPH Construction Limited

Independent Auditor's Report to the Members of MPH Construction Limited

Opinion

We have audited the financial statements of MPH Construction Limited (the 'company') for the year ended 30 September 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of 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 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.

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 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 original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

 

MPH Construction Limited

Independent Auditor's Report to the Members of MPH Construction Limited

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' 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:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities as set out on page 7, 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 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.

 

MPH Construction Limited

Independent Auditor's Report to the Members of MPH Construction Limited

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to the UK tax legislation and breaches of health and safety, and we considered the extent to which non-compliance might have a material effect on the financial statements.

We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries, and management bias in accounting estimates. Audit procedures performed by us included:

- discussion with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
- assessment of matters reported on the company's health and safety audit and the results of management's action on the findings;
- challenging assumptions made by management in their significant accounting estimates;
- identifying and testing journal entries.

There are inherent limitations in the audit procedures described above 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 would become aware of it. Also, 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 or intentional misrepresentations, or through collusion.

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

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Mr Jay Shah (Senior Statutory Auditor)
For and on behalf of Richlands Business Advisers Limited
Chartered Accountants and Statutory Auditor
42-46 Station Road
Edgware
Middlesex
HA8 7AB

9 June 2025

 

MPH Construction Limited

Profit and Loss Account for the Year Ended 30 September 2024

Note

2024
£

2023
£

Turnover

3

42,894,564

28,750,727

Cost of sales

 

(35,228,183)

(22,568,690)

Gross profit

 

7,666,381

6,182,037

Administrative expenses

 

(1,521,003)

(1,413,497)

Other operating income

4

123,720

34,350

Operating profit

6,269,098

4,802,890

Other interest receivable and similar income

58,482

3,476

Interest payable and similar expenses

(36,284)

(7,451)

   

22,198

(3,975)

Profit before tax

 

6,291,296

4,798,915

Tax on profit

8

(1,582,484)

(1,068,410)

Profit for the financial year

 

4,708,812

3,730,505

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

MPH Construction Limited

Statement of Comprehensive Income for the Year Ended 30 September 2024

2024
£

2023
£

Profit for the year

4,708,812

3,730,505

Total comprehensive income for the year

4,708,812

3,730,505

 

MPH Construction Limited

(Registration number: 01141925)
Balance Sheet as at 30 September 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

9

344,506

240,653

Other financial assets

10

2,200

2,200

 

346,706

242,853

Current assets

 

Debtors

11

9,833,033

8,993,372

Cash at bank and in hand

 

8,756,937

4,634,092

 

18,589,970

13,627,464

Creditors: Amounts falling due within one year

13

(10,330,356)

(8,975,677)

Net current assets

 

8,259,614

4,651,787

Total assets less current liabilities

 

8,606,320

4,894,640

Creditors: Amounts falling due after more than one year

13

(75,866)

-

Provisions for liabilities

14

(73,768)

(147,016)

Net assets

 

8,456,686

4,747,624

Capital and reserves

 

Called up share capital

1,075

1,075

Retained earnings

8,455,611

4,746,549

Shareholders' funds

 

8,456,686

4,747,624

Approved and authorised by the Board on 9 June 2025 and signed on its behalf by:
 

.........................................
G Gaunt
Director

.........................................
A G Roberts
Director

 
     
 

MPH Construction Limited

Statement of Changes in Equity for the Year Ended 30 September 2024

Share capital
£

Retained earnings
£

Total
£

At 1 October 2023

1,075

4,746,549

4,747,624

Profit for the year

-

4,708,812

4,708,812

Total comprehensive income

-

4,708,812

4,708,812

Dividends

-

(999,750)

(999,750)

At 30 September 2024

1,075

8,455,611

8,456,686




 

Share capital
£

Retained earnings
£

Total
£

At 1 October 2022

1,075

3,692,794

3,693,869

Profit for the year

-

3,730,505

3,730,505

Dividends

-

(2,676,750)

(2,676,750)

At 30 September 2023

1,075

4,746,549

4,747,624

The profit and loss account is a distributable reserve.

 

MPH Construction Limited

Statement of Cash Flows for the Year Ended 30 September 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

4,708,812

3,730,505

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

118,909

79,529

Profit on disposal of tangible assets

(4,163)

-

Finance income

(58,482)

(3,476)

Finance costs

36,284

7,451

Income tax expense

8

1,582,484

1,068,410

 

6,383,844

4,882,419

Working capital adjustments

 

Increase in trade debtors

11

(839,661)

(2,549,375)

Increase in trade creditors

13

2,502,973

1,187,283

Decrease in provisions

14

(100,000)

-

(Decrease)/increase in deferred income, including government grants

 

(847,461)

1,786,859

Cash generated from operations

 

7,099,695

5,307,186

Income taxes paid

8

(1,921,593)

(407,812)

Net cash flow from operating activities

 

5,178,102

4,899,374

Cash flows from investing activities

 

Interest received

58,482

3,476

Acquisitions of tangible assets

(260,599)

(123,177)

Proceeds from sale of tangible assets

 

42,000

-

Net cash flows from investing activities

 

(160,117)

(119,701)

Cash flows from financing activities

 

Interest paid

(36,284)

(7,451)

Payments to finance lease creditors

 

140,894

-

Dividends paid

18

(999,750)

(2,676,750)

Net cash flows from financing activities

 

(895,140)

(2,684,201)

Net increase in cash and cash equivalents

 

4,122,845

2,095,472

Cash and cash equivalents at 1 October

 

4,634,092

2,538,620

Cash and cash equivalents at 30 September

 

8,756,937

4,634,092

Analysis of net debt
The opening cash and cash equivalents at 1 October 2023 was £4,634,092. The cashflow for the entity amounted to £4,122,845 resulted in the closing cash and cash equivalents at 30 September 2024 of £8,756,937.
 

 

MPH Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Bromfield House
Queens Lane
Bromfield Industrial Estate
Mold
Flintshire
CH7 1XB
United Kingdom

These financial statements were authorised for issue by the Board on 9 June 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

 

MPH Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Judgements

The judgements made by the directors, in the application of the accounting policies and key sources of estimation uncertainty were as follows:

Depreciation- Depreciation is provided in accordance with the policies set however the actual wear and tear of the assets may vary.

Cost Accruals - A provision for the cost accruals is established on the basis of work done on project and what is not yet invoiced. The amount includes an estimation of the cost to complete a project, which may differ from the actual costs incurred on completion.

Amounts recoverable on contracts - A provision for amounts recoverable on contracts is estimated on the basis of the on going projects and work done. It may differ from the actual costs incurred on completion of a project. The estimation is also dependant on the management team's assessment of the profit margin achievable on the contracts.

Impairment of Trade debtors - A provision for the impairment of trade debtors is established on the nature, age and recoverability of all debtors and the recoverables on projects are reviewed regularly by directors and provisions are made where appropriate.

Provisions and contingent consideration - The recognition and measurement of provisions and contingent consideration requires management judgement to assess the likelihood and magnitude of any future outflows.

Consistent measures and procedures are in place to ensure that estimates are applied and results are determined on a consistent basis.

Provision for dilapidation - Dilapidation provision is provided by the management on the basis of an estimation of the expenditure that will be incurred based on contractual requirements.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Contract revenue recognition

The company applies revenue recognition applicable in the construction business stream. Revenue is recognised when it transfers control over a product or service to its customer. Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties.

Revenue is recognised as follows:
– revenue from construction and services activities is recognised over time and the Company uses the input method to measure progress of delivery
– The consideration recognised is the amount which is highly probable not to result in a significant reversal in future periods.

Presentational currency

The fuctional and presentational currency is British Pounds Sterling (£).

 

MPH Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Furniture, fittings and equipments

20% on reducing balance

Motor vehicles

25% on reducing balance

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Amounts recoverable on contracts

Amount recoverable on contracts represents the net amount due from customers from contract work performed to date under construction contracts, where the value of work completed, including attributable profit, exceeds progress billings. The company represents the right to consideration in exchange for goods and services that have been transferred to the customer.

 

MPH Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

MPH Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Financial instruments

Classification
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans
from related parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other debtors and creditors, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method.

Debt instruments that are payable or receivable within one year, typically trade creditors or debtors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms of financed at a rate of interest that is not a market rate or in case of an out-right short term loan not at a market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Non-derivative financial instruments that are equity of the issuer are equity instruments.

 Recognition and measurement
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Profit and loss account.

Equity instruments are initially measured at cost and the movement at the balance sheet date based on the fair value shall be adjusted to the profit and loss account.

 Impairment
For financial assets measured as amortised cost, the impairment loss is measured as the difference between an asset’s carrying amount and the present value of estimated cash flows discounted at the asset’s original effective interest rate. If a financial asset has a variable interest rate, the discounted rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured as cost less impairment, the impairment loss is measured as the difference between an asset’s carrying amount and best estimate, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.

 

MPH Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

3

Revenue

The analysis of the company's Turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sales

42,894,564

28,750,727

The analysis of the company's Turnover for the year by market is as follows:

2024
£

2023
£

United Kingdom

42,894,564

28,750,727

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2024
£

2023
£

Government grants

78,361

32,892

Sub lease rental income

45,359

1,458

123,720

34,350

5

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

4,435,410

4,020,606

Social security costs

476,862

424,852

Pension costs, defined contribution scheme

168,069

133,325

Other employee expense

17,641

27,040

5,097,982

4,605,823

 

MPH Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Administration and support

18

17

Construction services

90

88

108

105

6

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

234,647

227,735

Contributions paid to money purchase schemes

27,714

26,560

262,361

254,295

In respect of the highest paid director:

2024
£

2023
£

Remuneration

92,297

90,052

Company contributions to money purchase pension schemes

19,437

18,893

7

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

21,394

23,606


 

The audit fees for the year 2024 is £20,750 and the remaining £1,394 accounts for underprovisions made in respect of audit fees in prior financial periods.

 

MPH Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

8

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

1,555,732

1,048,195

Deferred taxation

Arising from origination and reversal of timing differences

26,752

20,215

Tax expense in the income statement

1,582,484

1,068,410

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 25% (2023 - 25%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

6,291,296

4,798,915

Corporation tax at standard rate

1,572,824

1,056,156

Tax decrease from effect of capital allowances and depreciation

(26,752)

(11,926)

Effect of expense not deductible in determining taxable profit (tax loss)

9,660

3,965

Deferred tax expense from unrecognised temporary difference from a prior period

26,752

20,215

Total tax charge

1,582,484

1,068,410

 

MPH Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

9

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 October 2023

203,778

389,910

593,688

Additions

31,660

228,939

260,599

Disposals

-

(103,626)

(103,626)

At 30 September 2024

235,438

515,223

750,661

Depreciation

At 1 October 2023

134,956

218,079

353,035

Charge for the year

28,172

90,737

118,909

Eliminated on disposal

-

(65,789)

(65,789)

At 30 September 2024

163,128

243,027

406,155

Carrying amount

At 30 September 2024

72,310

272,196

344,506

At 30 September 2023

68,822

171,831

240,653

10

Other financial assets (current and non-current)

Financial assets at cost less impairment
£

Total
£

Non-current financial assets

Cost or valuation

At 1 October 2023

2,200

2,200

At 30 September 2024

2,200

2,200

Carrying amount

At 30 September 2024

2,200

2,200

The investment represents capitalised value of ground rents receivable from freehold interests.

 

MPH Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

11

Debtors

Current

2024
£

2023
£

Trade debtors

7,058,365

4,884,518

Other debtors

7,855

7,864

Prepayments

205,672

218,627

Amounts recoverable on contracts

2,561,141

3,882,363

 

9,833,033

8,993,372

12

Cash and cash equivalents

2024
£

2023
£

Cash at bank

8,756,937

4,634,092

13

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

65,028

-

Trade creditors

 

7,504,944

3,755,744

Amounts due to related parties

19

-

1,114,984

Social security and other taxes

 

1,134,635

1,173,285

Outstanding defined contribution pension costs

 

8,119

15,466

Other payables

 

-

74,250

Accrued expenses

 

46,899

57,895

Corporation tax payable

8

481,333

847,194

Deferred income

 

1,089,398

1,936,859

 

10,330,356

8,975,677

Due after one year

 

Loans and borrowings

75,866

-

 

MPH Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

14

Provisions for liabilities

Deferred tax
£

Provisions for dilapidation
£

Total
£

At 1 October 2023

73,768

100,000

173,768

Increase (decrease) in existing provisions

-

(100,000)

(100,000)

At 30 September 2024

73,768

-

73,768

At the end of the lease term, the company has no obligation to repair damages arising from normal wear and tear, nor is it required to reinstate the leased property to its original condition. As a result, the previously recognised provision for dilapidation has been reversed during the period.

15

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £168,069 (2023 - £133,325).

Contributions totalling £8,119 (2023 - £15,466) were payable to the scheme at the end of the year and are included in creditors.

16

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

1,075

1,075

1,075

1,075

       
 

MPH Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

17

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

52,000

48,000

Later than one year and not later than five years

156,000

192,000

208,000

240,000

The amount of non-cancellable operating lease payments recognised as an expense during the year was £52,000 (2023 - £48,000).

18

Dividends

2024

2023

£

£

Interim dividend of £930.00 (2023 - £2,490.00) per ordinary share

999,750

2,676,750

 

 

The above dividend were paid to the shareholders during the year.

19

Related party transactions

Summary of transactions with parent


Fareham Associates Limited owns 93% of the issued ordinary share capital in MPH Construction Limited.

 
During the year, dividends amounting to £930,000 (2023 - £2,490,000) was paid to Fareham Associates Limited.

 The balance due at the year end was nil (2023 - £1,114,984), and is included in debtors.
 

 

MPH Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

M.P.H. (North Wales) Limited
Mr G Gaunt is in control and is the common director in both the companies. MPH Construction Limited rents premises from M.P.H. (North Wales) Limited and annual rent payable was £52,000 (2023 - £48,000). MPH Construction Limited was also invoiced consultancy fee expenses of £104,463 (2023 - £113,960) from M.P.H. (North Wales) Limited.

At the balance sheet date the amount due to M.P.H. (North Wales) Limited is £248,802 (2023 - £123,550).

At the balance sheet date the amount due from M.P.H (North Wales) Limited is nil (2023 - nil).

The Spicy Pint Pub Company Limited
Mrs. Gwenan Roberts is the director of the company. Mrs. G Roberts is related to A G Roberts (Spouse), who is the director of MPH Construction Limited. During the year, MPH Construction has performed additional work for The Spicy Pint Pub Company Limited.

At the balance sheet date the amount due from The Spicy Pint Pub Company Limited is nil (2023 - £202,265).

 

20

Parent and ultimate parent undertaking

The company is controlled by Fareham Associates Limited which holds 93% of the issued ordinary share capital in the company. Fareham Associates Limited is controlled by the directors Mr G Gaunt and Mr A Roberts and their respective partners.

 The company's immediate parent is Fareham Associates Limited, incorporated in United Kingdom. The registered office address is Broomfield House Queens Lane, Bromfield Industrial Estate, Mold, Flintshire, CH7 1XB.

 The most senior parent entity producing publicly available financial statements is Fareham Associates Limited. These financial statements are available upon request from Bromfield House Queens Lane, Bromfield Industrial Estate, Mold, Flintshire, CH7 1XB.