Company registration number 04187661 (England and Wales)
MWAY COMMUNICATIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
MWAY COMMUNICATIONS LIMITED
COMPANY INFORMATION
Directors
L J Day
S A Crawford
T Watson
Company number
04187661
Registered office
Unit B
Meadowbank Industrial Estate
Harrison Street
Rotherham
South Yorkshire
S61 1EE
Auditor
BHP LLP
Albert Works
Sidney Street
Sheffield
S1 4RG
MWAY COMMUNICATIONS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 21
MWAY COMMUNICATIONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 1 -
The directors present the strategic report for the year ended 31 March 2025.
Fair review of the business
Turnover has increased, year on year, to £14,000,875 (2024 £9,462,238). This increase was expected and reflects the company’s involvement in delivery of the National Emergency Area Retrofit scheme.
The ongoing National Highways SDF Framework has a further two years to run. Tendering activity, outside of the framework has continued to be successful, and the business’ strong focus on pricing technology based projects has resulted in sustainable revenue.
The business continues to benefit from a well-structured and robust overhead cost base, capable of supporting increases in activity and revenue without the need to incur substantial additional fixed costs. The cohesion and integration established between the various support functions also continues to be a huge benefit to the business.
Assets continue to be well utilised. Two relatively large asset purchases were made during the year, which will help significantly in the delivery of various projects over the next few years. Mway Services continues to be the entity through which much of the asset investment is made to service the rest of the Group.
Principal risks and uncertainties
Although the construction sector has, and continues to face significant challenges, the Directors are very satisfied with the positioning of the business within the sector, focussing on core specialisms and strengths, and outside the framework agreements, undertaking projects expected to deliver strong margins.
Bad and uncertain debt continues to be a very low risk for the business. Current schemes are either being run under the National Highways frameworks or are smaller projects in respect of which our exposure to risk is limited.
Key Performance Indicators
Gross margin 20.0% (2024 14.2%)
EBITDA £1,239,483 (2024 £356,274)
Pre-tax profit £1,112,224 (2024 £39,685)
At the time of completing this report, the group surpassed 9 years without a RIDDOR, working in a high-risk environment.
Other information and explanations
The Directors anticipate that the forthcoming year will be similar in terms of revenue and activity levels. Profitability will hold up well, with strong gross margins on the ongoing schemes and relatively low interest costs compared with years gone by. At the time of signing these accounts, the company’s quarter one results are slightly ahead of expectations and the forecast for the year.to date.
S A Crawford
Director
7 August 2025
MWAY COMMUNICATIONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2025.
Principal activities
The principal activity of the company continued to be that of Highway Technology Works.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £165,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
L J Day
S A Crawford
T Watson
Auditor
The auditor, BHP LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible 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 then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
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.
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.
MWAY COMMUNICATIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 3 -
On behalf of the board
S A Crawford
Director
7 August 2025
MWAY COMMUNICATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MWAY COMMUNICATIONS LIMITED
- 4 -
Opinion
We have audited the financial statements of Mway Communications Limited (the 'company') for the year ended 31 March 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 March 2025 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 directors' 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 directors 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 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 strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
MWAY COMMUNICATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MWAY COMMUNICATIONS LIMITED (CONTINUED)
- 5 -
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 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.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with management, and from our commercial knowledge and experience of the engineering sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environments and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
MWAY COMMUNICATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MWAY COMMUNICATIONS LIMITED (CONTINUED)
- 6 -
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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 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.
Terri Pierpoint (Senior Statutory Auditor)
For and on behalf of BHP LLP, Statutory Auditor
Chartered Accountants
Albert Works
Sidney Street
Sheffield
S1 4RG
7 August 2025
MWAY COMMUNICATIONS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
- 7 -
2025
2024
Notes
£
£
Turnover
3
14,000,875
9,462,238
Cost of sales
(11,202,262)
(8,120,463)
Gross profit
2,798,613
1,341,775
Administrative expenses
(1,590,020)
(1,085,595)
Other operating income
47,401
Operating profit
4
1,208,593
303,581
Interest payable and similar expenses
7
(96,369)
(263,896)
Profit before taxation
1,112,224
39,685
Tax on profit
8
(210,864)
(32,000)
Profit for the financial year
901,360
7,685
The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.
MWAY COMMUNICATIONS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2025
31 March 2025
- 8 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
11
581,493
168,577
Current assets
Stocks
12
29,905
194,829
Debtors
13
4,207,267
3,358,804
Cash at bank and in hand
117
300
4,237,289
3,553,933
Creditors: amounts falling due within one year
14
(2,811,770)
(2,829,966)
Net current assets
1,425,519
723,967
Total assets less current liabilities
2,007,012
892,544
Creditors: amounts falling due after more than one year
15
(435,672)
(232,689)
Provisions for liabilities
Deferred tax liability
18
126,125
(49,000)
(126,125)
49,000
Net assets
1,445,215
708,855
Capital and reserves
Called up share capital
21
100
100
Profit and loss reserves
1,445,115
708,755
Total equity
1,445,215
708,855
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 7 August 2025 and are signed on its behalf by:
S A Crawford
Director
Company registration number 04187661 (England and Wales)
MWAY COMMUNICATIONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2023
100
701,070
701,170
Year ended 31 March 2024:
Profit and total comprehensive income
-
7,685
7,685
Balance at 31 March 2024
100
708,755
708,855
Year ended 31 March 2025:
Profit and total comprehensive income
-
901,360
901,360
Dividends
9
-
(165,000)
(165,000)
Balance at 31 March 2025
100
1,445,115
1,445,215
MWAY COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
- 10 -
1
Accounting policies
Company information
Mway Communications Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit B, Meadowbank Industrial Estate, Harrison Street, Rotherham, South Yorkshire, S61 1EE.
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. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Notul Limited. These consolidated financial statements are available from its registered office.
1.2
Going concern
As at the balance sheet date, the majority of the historic debt issues on the balance sheet have been addressed and are no longer a feature of the company’s financial position. Only a small amount remains on the CBILS loan taken out during Covid and this will be fully repaid by November 2025.true
The company has enjoyed a good year in terms of both operational profitability and cash generation, which has been utilised to help take significant steps to improve the company’s financial health. Asset finance debt is under control, with a large proportion of the current balance relating to two large assets purchased in the year, which will be fully utilised over the next few years.
A forecast has been prepared for the 2025/26 financial period and beyond which shows revenue will remain strong and gross profit and EBITDA are expected to deliver similar percentages to the previous year.
Taking these factors into account, at the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
MWAY COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 11 -
1.3
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.
Revenue represents amounts receivable in relation to long term construction contracts and is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by
reference to the stage of completion of the contract activity at the reporting end date. Variations in contract
work, claims and incentive payments are included to the extent that the amount can be measured reliably and
its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised
as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to
the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are
recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract
are recognised as an expense in the period in which they are incurred, they are not included in contract costs
if the contract is obtained in a subsequent period.
See note 2 for further information on the construction contract accounting policy
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation 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:
Software
3-5 years straight line
1.5
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 of assets less their residual values over their useful lives on the following bases:
Land and buildings Leasehold
10% Straight Line
Plant and machinery
20% Straight Line
Fixtures, fittings & equipment
20% Straight Line
Computer equipment
33% Straight Line
Motor vehicles
14% - 20% Straight Line
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.
MWAY COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 12 -
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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).
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss.
1.8
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand.
1.9
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.
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.
MWAY COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 13 -
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.
Basic financial liabilities
Basic financial liabilities, including creditors, 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.
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 at transaction price.
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.
1.10
Equity instruments
Share capital issued by the company is recorded at the proceeds received, net of direct issue costs. Dividends payable on share capital are recognised as liabilities once they are no longer at the discretion of the company.
1.11
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
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
MWAY COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
1
Accounting policies
(Continued)
- 14 -
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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.
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 directors are 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
Turnover from long term construction contracts
Turnover is generated from long term contracts. The company recognises contract revenue and contract costs associated with each contract using the percentage of completion method. The recognition of revenue and profit therefore rely on estimates in relation to the stage of completion and the forecast total costs of each contract.
At each month end, all contracts are valued by the internal quantity surveyor allocated to the project. The valuation is compared to the expected total turnover on the contract and this forms the basis for the stage of completion.
This method ensures that profit is recognised equally across the life of the project. The calculation of expected outturn is based on the following factors:
- Variations to overall contract value (expected turnover) which have been agreed with the client
- Costs incurred to date allocated to the project
The degree of estimation uncertainty centres around the expected costs to complete the contract which, combined with the contract turnover, are used to calculate the expected margin outturn on each project.
When contract losses are anticipated these are recognised in full at the time of identification in so far as they can be measured reliably.
3
Turnover
All of the company's turnover relates to UK sales from its principal activity.
MWAY COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 15 -
4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
18,678
16,360
Depreciation of owned tangible fixed assets
14,560
44,719
Depreciation of tangible fixed assets held under finance leases
16,330
7,974
Profit on disposal of tangible fixed assets
-
(24,863)
Operating lease charges
355,581
106,376
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2025
2024
Number
Number
Admin
15
14
Trading
52
51
Total
67
65
Their aggregate remuneration comprised:
2025
2024
£
£
Wages and salaries
3,038,446
2,736,937
Social security costs
311,076
292,823
Pension costs
96,583
83,059
3,446,105
3,112,819
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
86,791
97,856
Company pension contributions to defined contribution schemes
34,104
26,167
120,895
124,023
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2024 - 3).
MWAY COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 16 -
7
Interest payable and similar expenses
2025
2024
£
£
Interest on bank overdrafts and loans
104,697
210,432
Other interest on financial liabilities
5,668
15,148
Interest on finance leases and hire purchase contracts
23,632
390
Other interest
(37,628)
37,926
96,369
263,896
8
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
35,739
Adjustments in respect of prior periods
4,000
Total current tax
35,739
4,000
Deferred tax
Origination and reversal of timing differences
175,125
28,000
Total tax charge
210,864
32,000
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:
2025
2024
£
£
Profit before taxation
1,112,224
39,685
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
278,056
9,921
Tax effect of expenses that are not deductible in determining taxable profit
6,413
12,605
Change in unrecognised deferred tax assets
(937)
891
Adjustments in respect of prior years
4,000
Group relief
(51,768)
Permanent capital allowances in excess of depreciation
282
4,401
Other permanent differences
182
Adjustments to brought forward values
(21,182)
Taxation charge for the year
210,864
32,000
MWAY COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 17 -
9
Dividends
2025
2024
£
£
Final paid
165,000
10
Intangible fixed assets
Software
£
Cost
At 1 April 2024 and 31 March 2025
53,531
Amortisation and impairment
At 1 April 2024 and 31 March 2025
53,531
Carrying amount
At 31 March 2025
At 31 March 2024
11
Tangible fixed assets
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2024
202,875
42,075
41,339
105,237
160,952
552,478
Additions
4,176
34,727
6,543
398,360
443,806
At 31 March 2025
202,875
46,251
76,066
111,780
559,312
996,284
Depreciation and impairment
At 1 April 2024
197,439
2,195
33,413
98,039
52,815
383,901
Depreciation charged in the year
4,096
11,004
4,799
2,764
8,227
30,890
At 31 March 2025
201,535
13,199
38,212
100,803
61,042
414,791
Carrying amount
At 31 March 2025
1,340
33,052
37,854
10,977
498,270
581,493
At 31 March 2024
5,436
39,880
7,926
7,198
108,137
168,577
MWAY COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
11
Tangible fixed assets
(Continued)
- 18 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2025
2024
£
£
Plant and machinery
28,333
38,333
Motor vehicles
498,270
113,274
526,603
151,607
12
Stocks
2025
2024
£
£
Finished goods and goods for resale
29,905
194,829
13
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
1,076,771
969,896
Gross amounts owed by contract customers
1,071,637
676,085
Amounts owed by group undertakings
1,820,093
1,614,699
Other debtors
72,476
Prepayments and accrued income
166,290
98,124
4,207,267
3,358,804
14
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Bank loans and overdrafts
16
633,898
196,017
Obligations under finance leases
17
89,630
21,867
Other borrowings
16
90,414
258,190
Trade creditors
1,392,664
1,294,228
Corporation tax
35,739
Other taxation and social security
54,605
626,603
Other creditors
47,674
44,201
Accruals and deferred income
467,146
388,860
2,811,770
2,829,966
MWAY COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 19 -
15
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Obligations under finance leases
17
435,672
124,991
Other borrowings
16
107,698
435,672
232,689
16
Loans and overdrafts
2025
2024
£
£
Bank overdrafts
633,898
196,017
Other loans
90,414
365,888
724,312
561,905
Payable within one year
724,312
454,207
Payable after one year
107,698
The bank overdraft is secured by a fixed and floating charge over the companies assets. Other borrowings of £90,414 (2024: £365,888) are secured by a guarantee from the Directors. Interest on other borrowings is 5% per annum and is repayable by November 2025.
17
Finance lease obligations
2025
2024
Future minimum lease payments due under finance leases:
£
£
Within one year
89,630
21,867
In two to five years
435,672
124,991
525,302
146,858
Finance lease payments represent rentals payable by the company for certain motor vehicles and plant & machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3-5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
MWAY COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 20 -
18
Deferred taxation
The following are the major deferred tax liabilities recognised by the company and movements thereon:
Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
137,000
37,000
Tax losses
-
(80,000)
Short term timing differences
(10,875)
(6,000)
126,125
(49,000)
2025
Movements in the year:
£
Asset at 1 April 2024
(49,000)
Charge to profit or loss
175,125
Liability at 31 March 2025
126,125
19
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
96,583
83,059
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.
20
Share-based payment transactions
On 30 May 2024, the company granted 1,116 options under a. Enterprise Management Incentive Option Scheme, a HMRC approved share option scheme. As at the year end 1,116 remained in issue and none had been exercised. No adjustments have been made in the financial statements for share based payment on the basis they would be immaterial.
21
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
MWAY COMMUNICATIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
- 21 -
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2025
2024
£
£
Within one year
95,902
67,383
Between two and five years
259,867
268,667
In over five years
264,583
328,083
620,352
664,133
23
Related party transactions
Transactions with related parties
As the company is a wholly owned subsidiary of Notul Limited, the company has taken advantage of the exemption allowed with Section 33 of FRS 102 and has not disclosed transactions or balances with the holding company or fellow wholly owned subsidiary undertakings.
Other information
In the year, sales of £67,727 (2024: £12,355) were made to Black Plant & Vehicle Hire Limited, a company which is 90% owned by S Crawford and L Day. A debtor balance remained outstanding at the year end of £482 (2024: £10,857) which is included in trade debtors.
In the year, there was £813,507 (2024: £335,458) of purchases from Black Plant & Vehicle Hire Limited, a company which is 90% owned by S Crawford and L Day. A creditor balance remained outstanding at the year end of £247,985 (2024: £147,847) which is included in trade creditors.
In the year, tangible fixed assets with a net book value of £nil (2024: £5,137) were disposed of to Black Plant & Vehicle Hire Limited, a company which is 90% owned by S Crawford and L Day. Proceeds on disposal were received of £nil (2024: £30,000).
In the year, the company received consultancy services of £104,103 (2024: £nil) from Nero Traffic Solutions Limited, a company under common control. A creditor balance remained outstanding at the year end of £122,503 (2024: £nil) which is included in trade creditors.
24
Ultimate controlling party
Mway Communications Limited is a wholly owned subsidiary of Mway Services Limited. The ultimate parent company is Notul Limited, a company incorporated in England & Wales. Notul Limited prepares group accounts in which Mway Communications Ltd is consolidated. These acounts are available from Companies House.
At the year end the ultimate controlling party was Mr L Day by virtue of a 60% shareholding in Notul Limited.
2025-03-312024-04-01falsefalsefalseCCH SoftwareCCH Accounts Production 2025.200L J DayS A CrawfordT Watson041876612024-04-012025-03-3104187661bus:Director12024-04-012025-03-3104187661bus:Director22024-04-012025-03-3104187661bus:Director32024-04-012025-03-3104187661bus:RegisteredOffice2024-04-012025-03-31041876612025-03-31041876612023-04-012024-03-3104187661core:RetainedEarningsAccumulatedLosses2023-04-012024-03-3104187661core:RetainedEarningsAccumulatedLosses2024-04-012025-03-31041876612024-03-3104187661core:LandBuildingscore:LeasedAssetsHeldAsLessee2025-03-3104187661core:PlantMachinery2025-03-3104187661core:FurnitureFittings2025-03-3104187661core:ComputerEquipment2025-03-3104187661core:MotorVehicles2025-03-3104187661core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-03-3104187661core:PlantMachinery2024-03-3104187661core:FurnitureFittings2024-03-3104187661core:ComputerEquipment2024-03-3104187661core:MotorVehicles2024-03-3104187661core:CurrentFinancialInstrumentscore:WithinOneYear2025-03-3104187661core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-3104187661core:Non-currentFinancialInstrumentscore:AfterOneYear2025-03-3104187661core:Non-currentFinancialInstrumentscore:AfterOneYear2024-03-3104187661core:CurrentFinancialInstruments2025-03-3104187661core:CurrentFinancialInstruments2024-03-3104187661core:Non-currentFinancialInstruments2025-03-3104187661core:Non-currentFinancialInstruments2024-03-3104187661core:ShareCapital2025-03-3104187661core:ShareCapital2024-03-3104187661core:RetainedEarningsAccumulatedLosses2025-03-3104187661core:RetainedEarningsAccumulatedLosses2024-03-3104187661core:ShareCapital2023-03-3104187661core:RetainedEarningsAccumulatedLosses2023-03-3104187661core:ShareCapitalOrdinaryShareClass12025-03-3104187661core:ShareCapitalOrdinaryShareClass12024-03-3104187661core:IntangibleAssetsOtherThanGoodwill2024-04-012025-03-3104187661core:ComputerSoftware2024-04-012025-03-3104187661core:LandBuildingscore:LongLeaseholdAssets2024-04-012025-03-3104187661core:PlantMachinery2024-04-012025-03-3104187661core:FurnitureFittings2024-04-012025-03-3104187661core:ComputerEquipment2024-04-012025-03-3104187661core:MotorVehicles2024-04-012025-03-310418766112024-04-012025-03-310418766112023-04-012024-03-3104187661core:UKTax2024-04-012025-03-3104187661core:UKTax2023-04-012024-03-310418766122024-04-012025-03-310418766122023-04-012024-03-3104187661core:ComputerSoftware2024-03-3104187661core:ComputerSoftware2025-03-3104187661core:ComputerSoftware2024-03-3104187661core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-03-3104187661core:PlantMachinery2024-03-3104187661core:FurnitureFittings2024-03-3104187661core:ComputerEquipment2024-03-3104187661core:MotorVehicles2024-03-31041876612024-03-3104187661core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-04-012025-03-3104187661core:WithinOneYear2025-03-3104187661core:WithinOneYear2024-03-3104187661core:BetweenTwoFiveYears2025-03-3104187661core:BetweenTwoFiveYears2024-03-3104187661bus:OrdinaryShareClass12024-04-012025-03-3104187661bus:OrdinaryShareClass12025-03-3104187661bus:OrdinaryShareClass12024-03-3104187661core:MoreThanFiveYears2025-03-3104187661bus:PrivateLimitedCompanyLtd2024-04-012025-03-3104187661bus:FRS1022024-04-012025-03-3104187661bus:Audited2024-04-012025-03-3104187661bus:FullAccounts2024-04-012025-03-31xbrli:purexbrli:sharesiso4217:GBP