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Registered number: 06822033 MECHANICAL & PIPEWORK HOLDINGS LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
MECHANICAL & PIPEWORK HOLDINGS LIMITED COMPANY INFORMATION
Directors | Scott Ellis
| James Ellis (resigned 22 March 2025)
Company secretary | Angela Ellis
Registered number | 06822033
Registered office | Racecourse Road
| Pinvin Industrial Estate
| Pershore
| Worcestershire
| WR10 2EY
Independent auditors | Lancaster Clements Limited
| Chartered Certified Accountants & Statutory Auditors
| Stanley House
| 27 Wellington Road
| Bilston
| West Midlands
| WV14 6AH
Bankers | Lloyds TSB Bank Plc
| 3rd Floor 125 Colmore Row
| Birmingham
| West Midlands
| B3 3SD
Solicitors | Thomas Bancks and Co.
| 37 High Street
| Pershore
| Worcestershire
| WR10 1AH
MECHANICAL & PIPEWORK HOLDINGS LIMITED CONTENTS
| Page
Group strategic report | 1
Director's report | 2 - 3
Independent auditors' report | 4 - 7
Consolidated statement of comprehensive income | 8
Consolidated statement of financial position | 9 - 10
Company statement of financial position | 11 - 12
Consolidated statement of changes in equity | 13 - 14
Company statement of changes in equity | 15
Consolidated statement of cash flows | 16 - 17
Notes to the financial statements | 18 - 36
MECHANICAL & PIPEWORK HOLDINGS LIMITED GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2024
INTRODUCTION
The principal activity of Mechanical & Pipework Holdings Limited is that of property investment and management of its subsidiary undertaking. The principal activity of the subsidiary undertaking, Mechanical & Pipework Fabrications Limited, is that of the manufacture and supply of fire protection systems.
BUSINESS REVIEW
All of the income of the parent company is derived from trading through the subsidiary undertaking. That company has seen a stable activity this year with turnover of £10,341,964 this year as compared to £10,314,888 in the previous year. The gross profit margin has seen an decrease of 1.8% this year due to the ongoing global economic uncertainty. The group has no defined key performance indicators other than turnover, gross profit, trading profit and cash. Cash flow has been identified as the principal risk affecting the Group, however, there are sufficient funds currently available within the businesses. Current trading and open order levels year to date, along with the level of working capital available, gives the directors confidence in the company's long-term future. The overall trading outlook for the calendar year 2025 is positive.
PRINCIPAL RISKS AND UNCERTAINTIES
The company has financial risks and seeks to minimise these by incorporating and rigorously implementing controls into key functions as part of the normal business operations. Management review sale prices on a continuous basis to account for fluctuations in costs in order to minimise the risk of gross margin erosion, whilst also managing procurement to take advantage of fluctuating comodity prices at the lowest levels. This policy is supporting by have the liquid reserves to invest in stock whilst commodity prices are at their lowest. It is therefore recognised that Cash reserves and cash flows are the principle risks facing the business.
FINANCIAL KEY PERFORMANCE INDICATORS
The Group's key performance indicators continue to be turnover, gross profit, operating profit and cash, which have all met the desired performance levels. There has been a slight increase in turnover in the year however there has been a decrease in the gross profit margin. On a year to year basis turnover has increased by 0.3%, however the gross profit margin decreased from 41.2% to 39.4%.
OTHER KEY PERFORMANCE INDICATORS
There are no key performance indicators. This report was approved by the board on 18 July 2025 and signed on its behalf.
................................................ Scott Ellis Director
Page 1
MECHANICAL & PIPEWORK HOLDINGS LIMITED DIRECTOR'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 The director presents his report and the financial statements for the year ended 31 December 2024.
Director's responsibilities statement
The director is responsible for preparing the Group strategic report, the Director's report and the consolidated financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the director is required to: ∙select suitable accounting policies for the Group's financial statements and then apply them consistently; ∙make judgments 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 Group will continue in business. The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The director is responsible for the maintenance and integrity of the corporate and financial information included on the Group's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Director's reports may differ from legislation in other jurisdictions.
Results and dividends
The profit for the year, after taxation, amounted to £501,710 (2023 - £1,357,875). The directors do not propose to recommend payment of a dividend. Page 2
MECHANICAL & PIPEWORK HOLDINGS LIMITED DIRECTOR'S REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Directors
The directors who served during the year were:
Scott Ellis
James Ellis (resigned 22 March 2025)
Future developments
The directors consider that there are no future developments of the company required to be disclosed.
Disclosure of information to auditors
The director at the time when this Director's report is approved has confirmed that: ∙so far as he is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and ∙he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.
Auditors
The auditors, Lancaster Clements Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board on 18 July 2025 and signed on its behalf.
Scott Ellis Director
Page 3
MECHANICAL & PIPEWORK HOLDINGS LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MECHANICAL & PIPEWORK HOLDINGS LIMITED
Opinion
We have audited the financial statements of Mechanical & Pipework Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated statement of financial position, the Company statement of financial position, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, 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 Group's and of the parent Company's affairs as at 31 December 2024 and of the Group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. Page 4
MECHANICAL & PIPEWORK HOLDINGS LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MECHANICAL & PIPEWORK HOLDINGS LIMITED (CONTINUED)
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinion on other matters 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 Group strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ∙the Group strategic report and the Director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Director's report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ∙adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or ∙the parent Company financial statements are not in agreement with the accounting records and returns; or ∙certain disclosures of director's remuneration specified by law are not made; or ∙we have not received all the information and explanations we require for our audit. Page 5
MECHANICAL & PIPEWORK HOLDINGS LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MECHANICAL & PIPEWORK HOLDINGS LIMITED (CONTINUED)
Responsibilities of directors
As explained more fully in the Director's responsibilities statement set out on page 2, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the Group or the parent Company or to cease operations, or has no realistic alternative but to do so.
Auditors' 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 Auditors' 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 Group financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Identifying and assessing potential risks related to irregularities We obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, tax legislation and regulations relating to the employed workforce. In assessing risks of material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: - The clients evaluation of compliance with laws and regulations and whether they were aware of any instances of none compliance, along with the measures in place to mitigate any such instances. - Methods in place to detect and respond to the risk of fraud and whether there was any actual, suspected or alleged fraud, along with controls established to mitigate such risks. - Where fraud might occur in the financial statements and any potential indicators of fraud. As a result of those procedures we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential being in relation to, stock pilferage or misappropriation, management override of controls and transactions outside the normal course of business, particularly with related parties. Audit response to risks identified Our procedures to respond to the risks identified included the following: - Testing of material journal entries, paying particular attention to the period immediately prior to and following the reporting date. - Evaluation of the business rationale behind transactions made between related parties that are unusual or outside the normal course of business. Page 6
MECHANICAL & PIPEWORK HOLDINGS LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MECHANICAL & PIPEWORK HOLDINGS LIMITED (CONTINUED) - An assessment of whether the judgements made in making accounting estimates are indicative of a potential bias. - Making enquiries of management concerning actual or potential litigation and claims. We have designed our procedures to best identify the likelihood or occurrence of irregularities, whether or not arising due to fraud. However, it is accepted that there is an inherent difficulty in detecting irregularities and our findings are subject to the timing and extent of the audit procedures performed. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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. Mark Anthony Cupitt (Senior statutory auditor) for and on behalf of Lancaster Clements Limited Chartered Certified Accountants Statutory Auditors Stanley House 27 Wellington Road Bilston West Midlands WV14 6AH 18 July 2025 Page 7
MECHANICAL & PIPEWORK HOLDINGS LIMITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2024
| 2024 | 2023
Note | £ | £
Turnover | 3 | 10,341,964 | 10,314,888
Cost of sales |  | (6,268,191) | (6,061,139)
Gross profit |  | 4,073,773 | 4,253,749
Distribution costs |  | (501,824) | (500,222)
Administrative expenses |  | (2,793,290) | (2,167,265)
Other operating income | 4 | 33,307 | 35,641
Fair value movements |  | (127,765) | 230,000
Operating profit |  | 684,201 | 1,851,903
Interest receivable and similar income | 8 | 66,522 | 26,230
Interest payable and similar expenses | 9 | (726) | (1,088)
Profit before taxation |  | 749,997 | 1,877,045
Tax on profit | 10 | (248,287) | (519,170)
Profit for the financial year |  | 501,710 | 1,357,875
Total comprehensive income for the year |  | 501,710 | 1,357,875
Profit for the year attributable to: |  |  |
Owners of the parent Company |  | 501,710 | 1,357,875
|  | 501,710 | 1,357,875
Total comprehensive income for the year attributable to: |  |  |
Owners of the parent Company |  | 501,710 | 1,357,875
|  | 501,710 | 1,357,875
The notes on pages 18 to 36 form part of these financial statements.
Page 8
MECHANICAL & PIPEWORK HOLDINGS LIMITED REGISTERED NUMBER: 06822033 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 13 |  | 2,622,796 |  | 2,797,686
Investment property | 15 |  | 1,310,000 |  | 1,390,568
|  |  | 3,932,796 |  | 4,188,254
Current assets |  |  |  |  |
Stocks | 16 | 1,843,526 |  | 2,039,055 |
Debtors: amounts falling due within one year | 17 | 2,865,588 |  | 2,705,715 |
Cash at bank and in hand |  | 3,421,047 |  | 3,014,256 |
|  | 8,130,161 |  | 7,759,026 |
Creditors: amounts falling due within one year | 18 | (2,654,322) |  | (3,010,293) |
Net current assets |  |  | 5,475,839 |  | 4,748,733
Total assets less current liabilities |  |  | 9,408,635 |  | 8,936,987
Creditors: amounts falling due after more than one year | 19 |  | (12,040) |  | (28,426)
Provisions for liabilities |  |  |  |  |
Deferred taxation | 20 | (576,612) |  | (590,288) |
|  |  | (576,612) |  | (590,288)
Net assets excluding pension asset |  |  | 8,819,983 |  | 8,318,273
Net assets |  |  | 8,819,983 |  | 8,318,273
Capital and reserves |  |  |  |  |
Called up share capital | 21 |  | 500 |  | 500
Revaluation reserve | 22 |  | 184,139 |  | 194,135
Profit and loss account | 22 |  | 8,635,344 |  | 8,123,638
Equity attributable to owners of the parent Company |  |  | 8,819,983 |  | 8,318,273
|  |  | 8,819,983 |  | 8,318,273
Page 9
MECHANICAL & PIPEWORK HOLDINGS LIMITED REGISTERED NUMBER: 06822033 CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED) AS AT 31 DECEMBER 2024 The financial statements were approved and authorised for issue by the board and were signed on its behalf on 18 July 2025.
................................................ Scott Ellis
Director
The notes on pages 18 to 36 form part of these financial statements. Page 10
MECHANICAL & PIPEWORK HOLDINGS LIMITED REGISTERED NUMBER: 06822033 COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 13 |  | 598,500 |  | 630,000
Investments | 14 |  | 500 |  | 500
Investment Property | 15 |  | 2,990,000 |  | 3,305,568
|  |  | 3,589,000 |  | 3,936,068
Current assets |  |  |  |  |
Debtors: amounts falling due within one year | 17 | 1,232,043 |  | 1,310,316 |
Cash at bank and in hand |  | 2,694,277 |  | 2,119,143 |
|  | 3,926,320 |  | 3,429,459 |
Creditors: amounts falling due within one year | 18 | (701,418) |  | (530,864) |
Net current assets |  |  | 3,224,902 |  | 2,898,595
Total assets less current liabilities |  |  | 6,813,902 |  | 6,834,663
Provisions for liabilities |  |  |  |  |
Deferred taxation | 20 | (409,295) |  | (455,676) |
|  |  | (409,295) |  | (455,676)
Net assets excluding pension asset |  |  | 6,404,607 |  | 6,378,987
Net assets |  |  | 6,404,607 |  | 6,378,987
Capital and reserves |  |  |  |  |
Called up share capital | 21 |  | 500 |  | 500
Profit and loss account brought forward |  | 6,378,487 |  | 5,906,233 |
Profit for the year |  | 25,620 |  | 494,854 |
Other changes in the profit and loss account |  | - |  | (22,600) |
Profit and loss account carried forward |  |  | 6,404,107 |  | 6,378,487
|  |  | 6,404,607 |  | 6,378,987
Page 11
MECHANICAL & PIPEWORK HOLDINGS LIMITED REGISTERED NUMBER: 06822033 COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED) AS AT 31 DECEMBER 2024 The financial statements were approved and authorised for issue by the board and were signed on its behalf on 18 July 2025.
................................................ Scott Ellis
Director
The notes on pages 18 to 36 form part of these financial statements. Page 12
MECHANICAL & PIPEWORK HOLDINGS LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
| Called up share capital | Revaluation reserve | Profit and loss account | Total equity
| £ | £ | £ | £
At 1 January 2024 | 500 | 194,135 | 8,123,638 | 8,318,273
Comprehensive income for the year |  |  |  |
Profit for the year | - | - | 501,710 | 501,710
Other comprehensive income for the year | - | - | - | -
Total comprehensive income for the year | - | - | 501,710 | 501,710
Depreciation adjustment from revaluation reserve | - | (9,996) | 9,996 | -
Total transactions with owners | - | (9,996) | 9,996 | -
At 31 December 2024 | 500 | 184,139 | 8,635,344 | 8,819,983
| The notes on pages 18 to 36 form part of these financial statements.
Page 13
MECHANICAL & PIPEWORK HOLDINGS LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2023
| Called up share capital | Revaluation reserve | Profit and loss account | Total equity
| £ | £ | £ | £
At 1 January 2023 | 500 | 204,131 | 6,778,367 | 6,982,998
Comprehensive income for the year |  |  |  |
Profit for the year | - | - | 1,357,875 | 1,357,875
Other comprehensive income for the year | - | - | - | -
Total comprehensive income for the year | - | - | 1,357,875 | 1,357,875
Contributions by and distributions to owners |  |  |  |
Dividends: equity capital | - | - | (22,600) | (22,600)
Depreciation adjustment from revaluation reserve | - | (9,996) | 9,996 | -
Total transactions with owners | - | (9,996) | (12,604) | (22,600)
At 31 December 2023 | 500 | 194,135 | 8,123,638 | 8,318,273
| The notes on pages 18 to 36 form part of these financial statements.
Page 14
MECHANICAL & PIPEWORK HOLDINGS LIMITED COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2024
| Called up share capital | Profit and loss account | Total equity
| £ | £ | £
At 1 January 2023 | 500 | 5,906,233 | 5,906,733
Comprehensive income for the year |  |  |
Profit for the year | - | 494,854 | 494,854
Other comprehensive income for the year | - | - | -
Total comprehensive income for the year | - | 494,854 | 494,854
Contributions by and distributions to owners |  |  |
Dividends: equity capital | - | (22,600) | (22,600)
Total transactions with owners | - | (22,600) | (22,600)
At 1 January 2024 | 500 | 6,378,487 | 6,378,987
Comprehensive income for the year |  |  |
Profit for the year | - | 25,620 | 25,620
Other comprehensive income for the year | - | - | -
Total comprehensive income for the year | - | 25,620 | 25,620
Total transactions with owners | - | - | -
At 31 December 2024 | 500 | 6,404,107 | 6,404,607
| The notes on pages 18 to 36 form part of these financial statements.
Page 15
MECHANICAL & PIPEWORK HOLDINGS LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
|  |  | 2024 | 2023
|  |  | £ | £
Cash flows from operating activities |  |
Profit for the financial year | 501,710 | 1,357,875
Adjustments for: |  |
Depreciation of tangible assets | 579,063 | 419,659
Profit on disposal of tangible assets | (22,783) | (6,250)
Interest paid | 726 | 1,088
Interest received | (66,522) | (26,230)
Taxation charge | 248,287 | 519,170
Decrease/(increase) in stocks | 195,529 | (423,686)
(Increase) in debtors | (159,874) | (448,426)
(Decrease) in creditors | (306,449) | (24,728)
Net fair value losses/(gains) recognised in P&L | 127,765 | (230,000)
Corporation tax (paid) | (285,273) | (134,962)
Net cash generated from operating activities | 812,179 | 1,003,510
Cash flows from investing activities |  |
Purchase of tangible fixed assets | (452,940) | (845,909)
Sale of tangible fixed assets | 71,550 | 6,250
Purchase of investment properties | (47,197) | (315,568)
Interest received | 66,522 | 26,230
HP interest paid | (726) | (1,088)
Net cash from investing activities | (362,791) | (1,130,085)
Cash flows from financing activities |  |
Repayment of/new finance leases | (42,598) | (38,074)
Dividends paid | - | (22,600)
Net cash used in financing activities | (42,598) | (60,674)
Net increase/(decrease) in cash and cash equivalents | 406,790 | (187,249)
Cash and cash equivalents at beginning of year | 3,014,257 | 3,201,505
Cash and cash equivalents at the end of year | 3,421,047 | 3,014,256
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 3,421,047 | 3,014,256
| 3,421,047 | 3,014,256
Page 16
MECHANICAL & PIPEWORK HOLDINGS LIMITED
The notes on pages 18 to 36 form part of these financial statements.
Page 17
MECHANICAL & PIPEWORK HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 1.ACCOUNTING POLICIES
| 1.1 | BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 2). The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The following principal accounting policies have been applied:
| 1.2 | BASIS OF CONSOLIDATION
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases. In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2014.
| 1.3 | REVENUE
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Sale of goods Revenue from the sale of goods is recognised when all of the following conditions are satisfied: ∙the Group has transferred the significant risks and rewards of ownership to the buyer; ∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; ∙the amount of revenue can be measured reliably; ∙it is probable that the Group will receive the consideration due under the transaction; and ∙the costs incurred or to be incurred in respect of the transaction can be measured reliably. Page 18
MECHANICAL & PIPEWORK HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 1.ACCOUNTING POLICIES (CONTINUED)
| 1.4 | TANGIBLE FIXED ASSETS
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as per the following bases. Depreciation is provided on the following bases:
|  |  |  | Freehold property | - | Straight line over fifty years
|  |  |  | Plant and machinery | - | 5% Reducing balance
|  |  |  | Motor vehicles | - | 25% Straight line
|  |  |  | Fixtures and fittings | - | 25% Straight line
|  |  |  | Office equipment | - | 25% Straight line
|  |  |  | Computer equipment | - | 25% Straight line
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
| 1.5 | REVALUATION OF TANGIBLE FIXED ASSETS
Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the reporting date. Fair values are determined from market based evidence normally undertaken by professionally qualified valuers. Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.
| 1.6 | INVESTMENT PROPERTY
Investment property is carried at fair value determined annually and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.
| 1.7 | VALUATION OF INVESTMENTS
Investments in subsidiaries are measured at cost less accumulated impairment. Page 19
MECHANICAL & PIPEWORK HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 1.ACCOUNTING POLICIES (CONTINUED)
| 1.8 | STOCKS
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
| 1.9 | DEBTORS
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
| 1.10 | CASH AND CASH EQUIVALENTS
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management. Page 20
MECHANICAL & PIPEWORK HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 1.ACCOUNTING POLICIES (CONTINUED)
| 1.11 | FINANCIAL INSTRUMENTS
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments. The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102. Financial instruments are recognised in the Group's Statement of financial position when the Group becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assets Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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. Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
| 1.12 | CREDITORS
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
| 1.13 | FINANCE COSTS
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
| 1.14 | DIVIDENDS
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Page 21
MECHANICAL & PIPEWORK HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 1.ACCOUNTING POLICIES (CONTINUED)
| 1.15 | PENSIONS
Defined contribution pension plan The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.
| 1.16 | INTEREST INCOME
Interest income is recognised in profit or loss using the effective interest method.
| 1.17 | PROVISIONS FOR LIABILITIES
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Increases in provisions are generally charged as an expense to profit or loss.
| 1.18 | CURRENT AND DEFERRED TAXATION
The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. 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 and the Group operate and generate income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that: ∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date. Page 22
MECHANICAL & PIPEWORK HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
2. | JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY
To be able to prepare financial statements in accordance with FRS102, Mechanical & Pipework Holdings Limited must make certain estimates and judgments that have an impact on the policies and the amounts reported in the annual accounts. The estimates and judgments are based on historical experiences and other factors including expectations of future events that are believed to be reasonable at the time such estimates and judgments are made. Actual experience may vary from these estimates. The estimates and assumptions which have the most significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are discussed below: Depreciation and amortisation: Mechanical & Pipework Holdings Limited accounts for depreciation and amortisation in accordance with FRS102. The depreciation and amortisation expense is the recognition of the decline in the value of the assets and allocation of the cost of the asset over the periods in which the asset will be used. Judgments are made on the estimated useful life of the assets which are regularly reviewed to reflect the changing environment. Impairment of debtors: The Company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. Impairment of stocks: Certain factors could affect the realisable value of the company's stocks, including customer demand and market conditions. The company considers historic usage, expected demand, anticipated sales price, effect of new product introductions, product obsolscence and other factors when evaluating the value of stock. Deferred tax: Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an asessment of the effect of future planning strategies. Fair value of investment property: The directors consider the fair value of the investment properties and revalues them accordingly to ensure the carrying valuation is in line withe the fair value of each property.
3. | TURNOVER
| All turnover arose within the United Kingdom.
4. | OTHER OPERATING INCOME
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Net rents receivable | 33,307 | 35,641
|  | 33,307 | 35,641
Page 23
MECHANICAL & PIPEWORK HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
5. | AUDITORS' REMUNERATION
| During the year, the Group obtained the following services from the Company's auditors:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements | 10,000 | 9,500
6. | EMPLOYEES
| Staff costs, including director's remuneration, were as follows:
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Wages and salaries | 2,545,171 | 2,479,133
| Social security costs | 261,110 | 251,583
| Cost of defined contribution scheme | 117,978 | 112,625
|  | 2,924,259 | 2,843,341
| The average monthly number of employees, including the director, during the year was as follows:
|  |  | 2024 | 2023
|  |  | No. | No.
|  | Directors | 3 | 3
|  | Production | 47 | 51
|  | Management and administration | 5 | 5
|  |  | 55 | 59
| The Company has no employees other than the directors, who did not receive any remuneration (2023 - £NIL)
Page 24
MECHANICAL & PIPEWORK HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
7. | DIRECTOR'S REMUNERATION
| During the year retirement benefits were accruing to 2 directors (2023 - 2) in respect of defined contribution pension schemes.
| The highest paid director received remuneration of £598,555 (2023 - £581,890).
| The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £10,000 (2023 - £10,000).
8. | INTEREST RECEIVABLE
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Other interest receivable | 66,522 | 26,230
|  | 66,522 | 26,230
9. | INTEREST PAYABLE AND SIMILAR EXPENSES
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Finance leases and hire purchase contracts | 726 | 1,088
|  | 726 | 1,088
Page 25
MECHANICAL & PIPEWORK HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
10. | TAXATION
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 261,963 | 285,273
| Adjustments in respect of previous periods | - | 3
|  | 261,963 | 285,276
| Total current tax | 261,963 | 285,276
| Deferred tax |  |
| Origination and reversal of timing differences | (13,676) | 233,894
| Total deferred tax | (13,676) | 233,894
|  | 248,287 | 519,170
| FACTORS AFFECTING TAX CHARGE FOR THE YEAR
| The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 23.5%). The differences are explained below:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 749,997 | 1,877,045
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%) | 187,499 | 441,106
| Effects of: |  |
| Expenses not deductible for tax purposes, other than goodwill amortisation and impairment | - | 541
| Other differences leading to an increase (decrease) in the tax charge | 60,788 | 77,523
| Total tax charge for the year | 248,287 | 519,170
| FACTORS THAT MAY AFFECT FUTURE TAX CHARGES
There were no factors that may affect future tax charges. Page 26
MECHANICAL & PIPEWORK HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
11. | DIVIDENDS
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Dividends paid on equity capital | - | 22,600
|  | - | 22,600
12. | PARENT COMPANY PROFIT FOR THE YEAR
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year was £25,620 (2023 - £494,854). Page 27
MECHANICAL & PIPEWORK HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
13. | TANGIBLE FIXED ASSETS
| Group
|  | Freehold property | Short-term leasehold property | Plant and machinery | Motor vehicles | Fixtures and fittings
|  | £ | £ | £ | £ | £
| Cost or valuation |  |  |  |  |
| At 1 January 2024 | 990,440 | 25,872 | 2,499,874 | 1,124,840 | 51,147
| Additions | - | - | 44,941 | 399,258 | 499
| Disposals | - | - | - | (176,079) | -
| At 31 December 2024 | 990,440 | 25,872 | 2,544,815 | 1,348,019 | 51,646
| Depreciation |  |  |  |  |
| At 1 January 2024 | 255,939 | 6,468 | 1,105,282 | 542,451 | 19,673
| Charge for the year on owned assets | 19,808 | 19,404 | 258,633 | 253,237 | 12,830
| Disposals | - | - | - | (127,312) | -
| At 31 December 2024 | 275,747 | 25,872 | 1,363,915 | 668,376 | 32,503
| Net book value |  |  |  |  |
| At 31 December 2024 | 714,693 | - | 1,180,900 | 679,643 | 19,143
| At 31 December 2023 | 734,501 | 19,404 | 1,394,592 | 582,389 | 31,474
Page 28
MECHANICAL & PIPEWORK HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 13.TANGIBLE FIXED ASSETS (CONTINUED)
|  | Office equipment | Computer equipment | Total
|  | £ | £ | £
| Cost or valuation |  |  |
| At 1 January 2024 | 18,106 | 48,152 | 4,758,431
| Additions | 4,892 | 3,350 | 452,940
| Disposals | - | - | (176,079)
| At 31 December 2024 | 22,998 | 51,502 | 5,035,292
| Depreciation |  |  |
| At 1 January 2024 | 10,347 | 20,585 | 1,960,745
| Charge for the year on owned assets | 3,426 | 11,725 | 579,063
| Disposals | - | - | (127,312)
| At 31 December 2024 | 13,773 | 32,310 | 2,412,496
| Net book value |  |  |
| At 31 December 2024 | 9,225 | 19,192 | 2,622,796
| At 31 December 2023 | 7,759 | 27,567 | 2,797,686
| The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Motor vehicles | 27,219 | 93,973
|  | 27,219 | 93,973
Page 29
MECHANICAL & PIPEWORK HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 13.TANGIBLE FIXED ASSETS (CONTINUED)
| Company
|  | Plant and machinery
|  | £
| Cost or valuation |
| At 1 January 2024 | 755,000
| At 31 December 2024 | 755,000
| Depreciation |
| At 1 January 2024 | 125,000
| Charge for the year on owned assets | 31,500
| At 31 December 2024 | 156,500
| Net book value |
| At 31 December 2024 | 598,500
| At 31 December 2023 | 630,000
Page 30
MECHANICAL & PIPEWORK HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
14. | FIXED ASSET INVESTMENTS
| Company
|  | Investments in subsidiary companies
|  | £
| Cost or valuation |
| At 1 January 2024 | 500
| At 31 December 2024 | 500
| SUBSIDIARY UNDERTAKING
| The following was a subsidiary undertaking of the Company:
| Name | Class of shares | Holding
| Mechanical & Pipework Fabrications Limited | Ordinary | 100%
| The aggregate of the share capital and reserves as at 31 December 2024 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:
| Name | Aggregate of share capital and reserves | Profit/ (Loss)
| Mechanical & Pipework Fabrications Limited | 3,280,498 | 319,646
Page 31
MECHANICAL & PIPEWORK HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
15. | INVESTMENT PROPERTY
| Group
|  | Freehold investment property
|  | £
| Valuation |
| At 1 January 2024 | 1,390,568
| Additions at cost | 47,197
| Surplus on revaluation | (127,765)
| At 31 December 2024 | 1,310,000
The 2024 valuations were made by GJS Dillon Property Consultants on 10 June 2025 and TLBC Property Surveyors on 22 March 2025, on an open market value for existing use basis.
| If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:
|  |  |  |  | 2024
|  |  |  |  | £
| Historic cost | 898,795
|  | 898,795
| Company
|  | Freehold investment property
|  | £
| Valuation |
| At 1 January 2024 | 3,305,568
| Additions at cost | 47,197
| Surplus on revaluation | (362,765)
| At 31 December 2024 | 2,990,000
The 2024 valuations were made by GJS Dillon Property Consultants on 10 June 2025 and TLBC Property Surveyors on 22 March 2025, on an open market value for existing use basis. Page 32
MECHANICAL & PIPEWORK HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
16. | STOCKS
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Raw materials and consumables | 1,843,526 | 2,039,055
|  | 1,843,526 | 2,039,055
| The difference between purchase price or production cost of stocks and their replacement cost is not material.
17. | DEBTORS
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Trade debtors | 2,757,380 | 2,417,683 | - | -
| Amounts owed by group undertakings | - | - | 1,144,384 | 1,042,833
| Other debtors | 87,659 | 267,483 | 87,659 | 267,483
| Prepayments and accrued income | 20,549 | 20,549 | - | -
|  | 2,865,588 | 2,705,715 | 1,232,043 | 1,310,316
18. | CREDITORS: Amounts falling due within one year
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Trade creditors | 1,020,699 | 1,544,977 | - | -
| Corporation tax | 261,963 | 285,273 | 121,319 | 110,515
| Other taxation and social security | 216,692 | 171,379 | 92,400 | 92,490
| Obligations under finance lease and hire purchase contracts | 9,030 | 35,242 | - | -
| Other creditors | 601,196 | 397,981 | 460,675 | 301,859
| Accruals and deferred income | 544,742 | 575,441 | 27,024 | 26,000
|  | 2,654,322 | 3,010,293 | 701,418 | 530,864
| The hire purchase liabilities are secured on the assets they relate to as per note 13 to the financial statements.
Page 33
MECHANICAL & PIPEWORK HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
19. | CREDITORS: Amounts falling due after more than one year
|  | Group | Group
|  | 2024 | 2023
|  | £ | £
| Net obligations under finance leases and hire purchase contracts | 12,040 | 28,426
|  | 12,040 | 28,426
| The hire purchase liabilities are secured on the assets they relate to as per note 13 to the financial statements.
20. | DEFERRED TAXATION
| Group
|  | 2024 | 2023
|  | £ | £
| At beginning of year | 590,288 | 356,394
| Charged to profit or loss | (13,676) | 233,894
| At end of year | 576,612 | 590,288
Page 34
MECHANICAL & PIPEWORK HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024 20.DEFERRED TAXATION (CONTINUED)
| Company
|  | 2024 | 2023
|  | £ | £
| At beginning of year | 455,676 | 318,035
| Charged to profit or loss | (46,381) | 137,641
| At end of year | 409,295 | 455,676
| The provision for deferred taxation is made up as follows:
|  | Group | Group | Company | Company
|  | 2024 | 2023 | 2024 | 2023
|  | £ | £ | £ | £
| Accelerated capital allowances | 532,335 | 548,511 | 138,751 | 128,882
| Revaluation of investment property | 44,277 | 41,777 | 270,544 | 326,794
|  | 576,612 | 590,288 | 409,295 | 455,676
21. | SHARE CAPITAL
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 400 (2023 - 400) Ordinary 'A' Shares shares of £1.00 each | 400 | 400
|  | 100 (2023 - 100) Ordinary 'B' Shares shares of £1.00 each | 100 | 100
|  |  | 500 | 500
22. | RESERVES
Profit and loss account Included within the profit and loss reserve is an undistributable investment property reserve of £1,119,263 (2023 £1,425,778).
23. | PENSION COMMITMENTS
The company operates a defined contribution pension scheme in respect of the staff. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the company and amounted to £117,978 (2023 £112,625). Page 35
MECHANICAL & PIPEWORK HOLDINGS LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
24. | LIMITATION OF AUDITORS' LIABILITY
The group has entered into a liability limitation agreement, the principal terms being as follows:- Any liability is limited, pursuant to Section 537 of the Companies Act 2006, to no less than such amount as is considered fair and reasonable in each individual circumstance and to a maximum of ten times the level of the fee for the audit service being carried out. The resolution approving this agreement is dated 1 September 2024.
25. | RELATED PARTY TRANSACTIONS
| The company had an interest free loan with the related party RTJ International Limited. At the balance sheet date the this company owed Mechanical & Pipework Holdings Limited £87,659 (2023 £267,483). Mechanical & Pipework Fabrications Limited rent property for its own use from a director, James Ellis, for an annual rental of £4,950 (2023 £4,950). The company also rents property for its own use from the Mechanical & Pipework Fabrications Limited Directors' Retirement Benefits Scheme for an annual rental of £64,880 (2023 £56,660). Both of these are currently under terms of informal commercial agreements. At the balance sheet date the company owed that Scheme £481 (2022 £481). The directors are also directors of RTJ International Limited, a company registered in England and Wales. During the year Mechanical & Pipework Fabrications Limited made purchases totalling £476,466 (2023 £986,616) from that company and made sales to that company of £nil (2023 £nil) and at the balance sheet date owed that company £127,588 (2023 £82,089). At the reporting date an amount of £255,028 was repayable to Directors of the company. The amount advanced was interest free and repayable on demand. The company has taken advantage of the exemption contained within paragraph 33.1A of Financial Reporting Standard 102 and has not disclosed transactions with other group members.
26. | CONTROLLING PARTY
The controlling interest in the parent company is held by The Estate of the late James Ellis.
Page 36