Fabplus Limited iXBRL

Fabplus Limited

Reports and Financial Statements

for the financial year ended 31 December 2024

Fabplus Limited

DIRECTORS AND OTHER INFORMATION


Directors	Danny McGavigan
	Darren McGavigan
	Martha McGavigan
	Tanya McGavigan (Appointed 15 January 2024)
	Daniel McGavigan (Appointed 15 January 2024)
	Shay Adcock (Appointed 15 January 2024)


Company Secretary	Tanya McGavigan (Appointed 16 July 2025)
	Martha McGavigan (Resigned 16 July 2025)


Company Registration Number	NI039545


Registered Office	Orchard Road Industial Estate
	Strabane
	Co Tyrone
	BT829FR
	Northern Ireland


Business Address	Orchard Road Industrial Estate
	Strabane
	Co Tyrone BT82 9FR


Independent Auditors	McDevitt & McGlynn
	Certified Accountants and Statutory Auditors
	Ardmore House
	Main Street
	Ballyshannon
	Co. Donegal
	Ireland


Bankers	First Trust Bank
	Strabane
	Co Tyrone


Solicitors	Garath McCay,Solicitors
	1 John Wesley Street
	Strabane
	BT82 8EF

Fabplus Limited

STRATEGIC REPORT

for the financial year ended 31 December 2024

The directors present their strategic report on the company for the financial year ended 31 December 2024.

Review of the Company's Business

Fabplus Limited, a wholly owned subsidiary of Mechanical Pipework Fabrications Limited ("MPF"), is a contract manufacturer to its parent company and a market leader in the fire suppression industry, supplying high-quality prefabricated pipework for fire sprinkler systems.

Operating at the core of a growing and safety-critical sector, Fabplus has built a strong reputation for delivering reliable, precision-engineered solutions that support MPF’s position in the market.

The business continues to respond proactively to shifting regulatory requirements, rising customer expectations, and increased demand for offsite fabrication. Leveraging its technical expertise, investment in modern manufacturing capabilities, and a commitment to continuous improvement, Fabplus is well positioned to support future growth.

The Company remains focused on scaling its operations, driving efficiency, and delivering added value to its parent and end customers, ensuring it remains a key contributor within the wider MPF group.

The company’s principal activity in the year remained the manufacture and supply of fire suppression systems. At the start of the year, the trading arrangement with the parent company was revised. Previously, Fabplus operated under a toll manufacturing model, whereby the parent company purchased raw materials and Fabplus recovered its costs (including labour and overheads) together with an agreed markup. From January 2024, this changed to a contract manufacturing model under which Fabplus now procures the raw materials directly, undertakes the fabrication process, and invoices with a markup on materials, labour, and overheads. This adjustment has had a significant impact on the scale of turnover and cost of sales recognised in the financial statements and has also altered the working capital profile, with higher trade debtor and creditor balances now recorded”.

Principal Risks and Uncertainties

Fabplus Limited faces a number of risks that could affect performance and long-term growth. Supply chain pressures, particularly around steel and specialist components, may lead to increased costs or production delays.

Recruitment and retention of skilled labour remains an ongoing challenge, with potential to constrain capacity and increase wage costs. Rising energy prices and broader inflationary pressures continue to place pressure on margins.

In addition, the company is exposed to evolving regulatory requirements, particularly in relation to building standards and environmental commitments, which could require investment in compliance.

Research ,Development and Performance

Fabplus Limited has continued to invest in operational efficiency, with progress made on the integration of IoT-enabled machinery to improve monitoring, quality control and productivity.

The business has also strengthened supply chain resilience through broader sourcing arrangements and implemented tighter cost controls to manage inflationary pressures.

To meet expected demand, the company has commenced expansion of its manufacturing facilities and invested in modern production systems.

Financial Key Performance Indicators

The year-on-year increase in both sales and cost of sales primarily reflects a change in the intercompany agreement between the company and its parent. In 2023, Fabplus operated under a toll manufacturing arrangement, whereby the parent company purchased raw materials and Fabplus was remunerated with a markup its labour and overheads.
From 2024, the arrangement shifted to a full contract manufacturing model. Under this revised structure, Fabplus procures the materials, undertakes fabrication, and earns a markup on both materials along with labour and overheads. As a result, revenue increased from £8.7m in FY23 to £20.7m in FY24, with cost of sales rising from £7.5m to £18m and overheads increased modestly from £0.77m to £0.83m. Liquidity and working capital metrics reflect the change in trading model, the company assumed responsibility for material purchases and related payables.

Other Key Performance Indicators

Operational performance is measured through a range of non-financial indicators covering production efficiency, delivery reliability, health and safety, and employee engagement. In 2024, output increased following the move to contract manufacturing. Staff turnover remained below 10% with strong participation in training and development. Fabplus continues to operate efficiently, safely and with a motivated workforce to support sustainable growth

Explanation of Amounts in the Financial Statements

The uplift in revenue and costs is directly linked to the transition to the contract manufacturing arrangement described above, which significantly altered the scale and flow of transactions through the business. This model enables the company to recognise both materials and labour within turnover, whereas in the prior year only labour and overhead mark-up was recorded.

Operating costs rose mainly within premises, utilities, and equipment-related expenses, reflecting the continued investment in production capacity, whilst the balance sheet increase in fixed assets also reflects capital investment in buildings and plant. Current assets increased modestly, and current liabilities grew more strongly as the company now carries trade creditor balances linked to raw material procurement.

Environment

The directors have assessed the relevance of environmental matters to the company’s business activities. In light of the company’s operational scope, such matters are not regarded as material to an understanding of the development, performance, or position of the business. As a result, environmental information and thus been omitted.

Employees

From January 2024, changes were made to the company’s leadership structure with the appointment of additional directors. These changes are intended to strengthen governance, enhance communication with staff, and provide clear channels for workforce engagement.

Management continues to prioritise health and safety, maintaining a strong focus on risk management to ensure a safe and productive manufacturing environment.

The skills and commitment of employees remain central to the company’s performance, and a culture of openness, participation and recognition is actively encouraged.

Diversity is valued across the workforce, and talent is supported and rewarded.

On behalf of the board



___________________________
Darren McGavigan
Director

29 September 2025

Fabplus Limited

DIRECTORS' REPORT

for the financial year ended 31 December 2024

The directors present their report and the audited financial statements for the financial year ended 31 December 2024.

Principal Activity

The principal activity of the company is supply of bespoke pre-fabricated pipework for the fire sprinkler and machancial industries.

Results and Dividends

The profit for the financial year after providing for depreciation and taxation amounted to £1,981,530 (2023 - £278,192).

The directors do not recommend payment of a dividend.

Directors

The directors who served during the financial year are as follows:

Danny McGavigan

Darren McGavigan

Martha McGavigan

Tanya McGavigan (Appointed 15 January 2024)

Daniel McGavigan (Appointed 15 January 2024)

Shay Adcock (Appointed 15 January 2024)

There were no changes in shareholdings between 31 December 2024 and the date of signing the financial statements.

In accordance with the Constitution, the directors retire by rotation and, being eligible, offer themselves for re-election.

Future Developments

The directors are not expecting to make any significant changes in the nature of the business in the near future.

Post-Balance Sheet Events

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

Political Contributions

The company did not make any disclosable political donations in the current financial year.

Auditors

The auditors, McDevitt & McGlynn, (Certified Accountants) have indicated their willingness to continue in office in accordance with the provisions of Section 485 of the Companies Act 2006.

Strategic Report

The company has chose in accordance with Companies Act 2006, s.414c(11) to set out in the company's strategic report information required by Schedule7 of the Large and Medium size companies and Group (Accounts and Reports) Regulation 2006 to be contained in the directors' report. It has done so in repect of future developments and research and development.

Registered Number

The company's registered number is NI039545

On behalf of the board

___________________________

Darren McGavigan

Director

29 September 2025

Fabplus Limited

STATEMENT OF DIRECTORS' RESPONSIBILITIES

for the financial year ended 31 December 2024

The directors are responsible for preparing the Strategic Report, Directors' 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) including FRS102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

■select suitable accounting policies and apply them consistently;

■make judgements and accounting estimates that are reasonable and prudent;

■prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

Disclosure of Information to Auditor
Each persons who are directors at the date of approval of this report confirms that:
■there is no relevant audit information (information needed by the company's auditor in connection with preparing the auditor's report) of which the company's auditor is unaware, and
■the directors have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

On behalf of the board

___________________________

Darren McGavigan

Director

29 September 2025

INDEPENDENT AUDITOR'S REPORT

to the Shareholders of Fabplus Limited

Report on the audit of the financial statements

Opinion

We have audited the financial statements of Fabplus Limited ('the company') for the financial year ended 31 December 2024 which comprise the Profit and Loss Account, the Balance Sheet, the Reconciliation of Shareholders' Funds, the Cash Flow Statement and the related notes to the financial statements, including significant accounting policies set out in note . The financial reporting framework that has been applied in their preparation is applicable Law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
■give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the financial year then ended;
■have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
■have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor'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 the Provisions Available for Audits of Small Entities, in the circumstances set out in Note to the financial statements, 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 the date 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.

Other Information

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.

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 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.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified any material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

■

adequate accounting records have not been kept; or

■

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 for the financial statements

As explained more fully in the Statement of Directors' Responsibilities set out on page 8, 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 they 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 has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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:

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud.
In particular, we examined subjective judgements made by management, for example in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. We also considered potential financial or other pressures, opportunity and motivations for fraud. As part of this discussion we identified the internal controls established to mitigate risks related to fraud or noncompliance with laws and regulations and how management monitor these processes. Appropriate procedures included the review and testing of manual journals and key estimates and judgements made by management.
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates.

Our tests included agreeing the financial statements disclosures to underlying supporting documentation and enquiries with management. We did not identify any key audit matters relating to irregularities, including fraud. As in all of our audits, we also addressed the risk of management override of internal controls including testing journals and evaluation whether there was evidence of bias by the management that represented a risk of material misstatement due to fraud.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is contained in the appendix to this report, located at page , which is to be read as an integral part of our report.

Use of our report

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

__________________________________

Paul McDevitt (Senior Statutory Auditor)

for and on behalf of

MCDEVITT & MCGLYNN

Certified Accountants and Statutory Auditors

Ardmore House

Main Street

Ballyshannon

Co. Donegal

Ireland

29 September 2025

Fabplus Limited

APPENDIX TO THE INDEPENDENT AUDITOR'S REPORT

Further information regarding the scope of our responsibilities as auditor

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

■

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

■

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.

■

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

■

Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditor's Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditor's Report. However, future events or conditions may cause the company to cease to continue as a going concern.

■

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Fabplus Limited

PROFIT AND LOSS ACCOUNT

for the financial year ended 31 December 2024

	2024	2023
Notes	£	£

Turnover	4	20,753,748	8,701,425

Cost of sales		(18,016,464)	(7,500,761)
		─────────	─────────
Gross profit		2,737,284	1,200,664

Administrative expenses		(820,330)	(767,267)
Other operating income		207,436	21,377
		─────────	─────────
Operating profit	5	2,124,390	454,774

Interest receivable and similar income	6	-	6,025
Interest payable and similar expenses	7	(2,132)	(3,098)
		─────────	─────────
Profit before taxation		2,122,258	457,701

Tax on profit	9	(140,728)	(179,509)
		─────────	─────────
Profit for the financial year		1,981,530	278,192
		─────────	─────────
Total comprehensive income		1,981,530	278,192
		═════════	═════════

Fabplus Limited

Company Registration Number: NI039545

BALANCE SHEET

as at 31 December 2024

		2024	2023
	Notes	£	£

Fixed Assets

Tangible assets

7,743,153

5,065,051

─────────

Current Assets

Stocks

3,672,565

3,532,887

Debtors

1,861,219

1,507,610

Cash at bank and in hand

260,097

158,877

─────────

5,793,881

5,199,374

─────────

Creditors: amounts falling due within one year

(5,782,665)

(4,545,088)

─────────

Net Current Assets

11,216

654,286

─────────

Total Assets less Current Liabilities

7,754,369

5,719,337

Creditors:

amounts falling due after more than one year

(41,839)

(55,220)

Provisions for liabilities

(385,503)

(304,325)

Government grants

(43,961)

(58,256)

─────────

Net Assets

7,283,066

5,301,536

═════════

Capital and Reserves

Called up share capital

3,750,000

3,750,000

Retained earnings

3,533,066

1,551,536

─────────

Equity attributable to owners of the company

7,283,066

5,301,536

═════════

Approved by the Board and authorised for issue on 29 September 2025 and signed on its behalf by



________________________________
Darren McGavigan
Director

Fabplus Limited

RECONCILIATION OF SHAREHOLDERS' FUNDS

as at 31 December 2024

	Called up	Retained	Total
	share	earnings
	capital
	£	£	£

At 1 January 2023	3,750,000	1,273,344	5,023,344
	─────────	─────────	─────────
Profit for the financial year	-	278,192	278,192
	─────────	─────────	─────────
At 31 December 2023	3,750,000	1,551,536	5,301,536
	─────────	─────────	─────────
Profit for the financial year	-	1,981,530	1,981,530
	─────────	─────────	─────────
At 31 December 2024	3,750,000	3,533,066	7,283,066
	═════════	═════════	═════════

Fabplus Limited

CASH FLOW STATEMENT

for the financial year ended 31 December 2024

	2024	2023
Notes	£	£

Cash flows from operating activities

Profit for the financial year

1,981,530

278,192

Adjustments for:

Interest receivable and similar income

(6,025)

Interest payable and similar expenses

2,132

3,098

Tax on profit on ordinary activities

140,728

179,509

Depreciation

411,626

368,715

Profit/loss on disposal of tangible assets

(21,240)

Amortisation of Government Grants

(14,295)

(14,295)

─────────

2,500,481

809,194

Movements in working capital:

Movement in stocks

(139,678)

(3,532,887)

Movement in debtors

(353,609)

40,973

Movement in creditors

1,262,637

3,276,953

─────────

Cash generated from operations

3,269,831

594,233

Tax paid

(87,462)

(116,275)

─────────

Net cash generated from operating activities

3,182,369

477,958

─────────

Cash flows from investing activities

Interest received

8,272

Interest element of finance lease rental payments

(2,132)

(3,098)

Payments to acquire tangible assets

(3,088,565)

(453,317)

Receipts from sales of tangible assets

21,240

─────────

Net cash used in investment activities

(3,069,457)

(448,143)

─────────

Cash flows from financing activities

Capital element of finance lease contracts		(13,583)	(13,337)
		─────────	─────────

Net increase in cash and cash equivalents		99,329	16,478
Cash and cash equivalents at beginning of financial year		153,506	137,028
		─────────	─────────
Cash and cash equivalents at end of financial year	13	252,835	153,506
		═════════	═════════

Fabplus Limited

NOTES TO THE FINANCIAL STATEMENTS

for the financial year ended 31 December 2024

General Information

Fabplus Limited is a private company limited by shares incorporated in Northern Ireland. Orchard Road Industial Estate, Strabane, Co Tyrone, BT829FR, Northern Ireland is the registered office, which is also the principal place of business of the company. The nature of the company's operations and its principal activities are set out in the Directors' Report. The financial statements have been presented in Pound (£) which is also the functional currency of the company and are rounded to the nearest £.The companies number is NI039545. Thie financial statements are for the single entity.

Summary of Significant Accounting Policies

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements.

Statement of compliance

The financial statements of the company for the year ended 31 December 2024 have been prepared in accordance with the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS 102) issued by the Financial Reporting Council and in accordance with the Companies Act 2006.

Basis of preparation

The financial statements have been prepared on the going concern basis and in accordance with the historical cost convention except for certain properties and financial instruments that are measured at revalued amounts or fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Tangible assets and depreciation

Tangible assets are stated at cost or at valuation, less accumulated depreciation. The charge to depreciation is calculated to write off the original cost or valuation of tangible assets, less their estimated residual value, over their expected useful lives as follows:

Land and buildings freehold

2% Straight line

Long leasehold property

2% Straight line

Plant and machinery

10% Straight line

Fixtures, fittings and equipment

20% Straight line

Motor vehicles

25% Straight line

The carrying values of tangible fixed assets are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.
If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the company estimates the recoverable amount of the cash -generating unit to which the asset belongs.
If the recoverable amount of an asset is estimated to be less than the carrying amount , the carrying amount of the asset is reduced to the recoverable amount. Impairment loss is recognised as an expense immediately.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of the recoverable amount, to the extent that the increased carrying amount does not exceed the carrying that would have been determined (net of depreciation)had no impairment loss been recognised for the asset in the prior years. A reversal of an impairment loss is recognised as an income immediately.

Leasing and hire purchases

Tangible assets held under leasing and Hire Purchases arrangements which transfer substantially all the risks and rewards of ownership to the company are capitalised and included in the Balance Sheet at their cost or valuation, less depreciation. The corresponding commitments are recorded as liabilities. Payments in respect of these obligations are treated as consisting of capital and interest elements, with interest charged to the Profit and Loss Account. Assets held under finance leases are depreciated in the same manner as owned assets.

Stocks

The directors feel it is appropriate that stocks are valued the most recent purchase invoice price. Cost comprises expenditure incurred in the normal course of business in bringing stocks to their present location and condition. Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash at bank and in hand

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the Balance Sheet bank overdrafts are shown within Creditors.

Borrowing costs

Borrowings are recognised initially at the transaction price (present value of cash payable to the bank, including transaction costs). Borrowings are subsequently stated at amortised cost. Interest expense is recognised on the basis of the effective interest method and is included in finance costs.

Borrowings are classified as current liabilities unless the Company has a right to defer settlement of the liability for at least 12 months after the reporting date.

Provisions

Provisions are recognised when the company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the same value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

Related parties

For the purposes of these financial statements a party is considered to be related to the company if:

■

the party has the ability, directly or indirectly, through one or more intermediaries to control the company or exercise significant influence over the company in making financial and operating policy decisions or has joint control over the company;

■

the company and the party are subject to common control;

■

the party is an associate of the company or forms part of a joint venture with the company;

■

the party is a member of key management personnel of the company or the company's parent, or a close family member of such as an individual, or is an entity under the control, joint control or significant influence of such individuals;

■

the party is a close family member of a party referred to above or is an entity under the control or significant influence of such individuals; or

■

the company does not disclose transactions with members of the same group that are wholly owned.

Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the company.
The company discloses transactions with related parties which are not wholly owned within the same group. It does not disclose transactions with members of the same group which are wholly owned.

Employee benefits

The company provides a range of benefits to employees, including paid holiday arrangements and defined contribution pension plans.
Defined Contribution pension plans
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
Short term benefits
Short term benefits including holiday pay and other non-monetary benefits ,are recognised as an expense in the period in which the service is received.

Taxation and deferred taxation

Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the financial year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Balance Sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements. Deferred tax is measured on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date.

Government grants

Capital grants received and receivable are treated as deferred income and amortised to the Profit and Loss Account annually over the useful economic life of the asset to which it relates. Revenue grants are credited to the Profit and Loss Account when received.

Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the Balance Sheet date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated at the rates of exchange ruling at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. The resulting exchange differences are dealt with in the Profit and Loss Account.

Functional and presentation currency
Items included in the financial statements of the company are measured using the currency of the primary economic environment in which the company operates (the functional currency). The financial statements are presented in sterling, which is the company's functional and presentation currency and is denoted by the symbol "£".

Ordinary share capital

The ordinary share capital of the company is presented as equity.

Critical Accounting Judgements and Estimates

The directors consider the accounting estimates and assumptions below to be its critical accounting judgements and estimates:

Judgements and estimates are continually evaluated and are based on historical experiences and
other factors, including expectations of future events that are believed to be reasonable under the
circumstances.
The company makes estimates and assumptions concerning the future. The resulting accounting
estimates will, by definition, seldom equal the related actual results. The estimates and assumptions
that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year are discussed below.

a) Establishing useful economic lives for depreciation purposes of property, plant and

Long-lived assets, consisting primarily of property, plant and equipment, comprise a significant
portion of the total assets. The annual depreciation charge depends primarily on the estimated useful
economic lives of each type of asset and estimates of residual values. The directors regularly review
these asset useful economic lives and change them as necessary to reflect current thinking on
remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset useful lives can have a significant impact on depreciation and
amortisation charges for the period. Detail of the useful economic lives is included in the accounting
policies.

Turnover

The turnover for the financial year is analysed as follows:

2024

2023

Europe

20,753,748

8,701,425

═════════

Turnover attributable to geographical markets outside the United Kingdom amounted to 100% for the financial year.


5.	Operating profit	2024	2023
		£	£
	Operating profit is stated after charging/(crediting):
	Depreciation of tangible assets	411,626	368,715
	(Profit) on disposal of tangible assets	(21,240)	-
	Loss on foreign currencies	36	7,995
	Auditor's remuneration
	- audit services	3,530	9,511
	Government grants received	(192,841)	(7,082)
	Amortisation of Government grants	(14,295)	(14,295)
		═════════	═════════


6.	Interest receivable and similar income	2024	2023
		£	£

	Other interest	-	6,025
		═════════	═════════


7.	Interest payable and similar expenses	2024	2023
		£	£

	Finance lease charges	2,132	3,098
		═════════	═════════


8.	Employees and remuneration

	Number of employees
	The average number of persons employed (including executive directors) during the financial year was as follows:

		2024	2023
		Number	Number

	Maintenance	3	-
	Office	12	14
	Order processing	5	5
	Production	65	64
		─────────	─────────
		85	83
		═════════	═════════

	The staff costs (inclusive of directors' salaries) comprise:	2024	2023
		£	£

	Wages and salaries	3,049,941	2,423,585
	Social security costs	305,289	206,849
	Pension costs	55,867	44,217
		─────────	─────────
		3,411,097	2,674,651
		═════════	═════════

Tax on profit

2024

2023

(a) Analysis of charge in the financial year

Current tax:

Corporation tax at 25.00% (2023 - 25.00%)

145,962

87,467

Under/over provision in prior year

(86,412)

─────────

Total current tax

59,550

87,467

─────────

Deferred tax:

Origination and reversal of timing differences

81,178

92,042

─────────

Total deferred tax

81,178

92,042

═════════

Tax on profit (Note 9 (b))

140,728

179,509

═════════

(b) Factors affecting tax charge for the financial year

The tax assessed for the financial year differs from the standard rate of corporation tax in the United Kingdom 25.00% (2023 - 25.00%). The differences are explained below:

2024

2023

Profit taxable at 25.00%

2,122,258

457,701

═════════

Profit before tax

multiplied by the standard rate of corporation tax

in the United Kingdom at 25.00% (2023 - 25.00%)

530,565

114,425

Effects of:

Expenses not deductible for tax purposes

3,112

7,191

Capital allowances for period in excess of depreciation

(243,589)

(21,604)

Deferred tax

81,178

92,042

Gain on Sale of Fixed Assets

(5,310)

Amortisation of Govt Grant

(3,484)

(3,275)

Lease payments less interest paid

(3,104)

(2,405)

R&D deduction/ Tax rate at 19% for Jan-Mar 2023

(132,228)

(6,865)

Adjustment to tax charge in respect of previous periods

(86,412)

─────────

Total tax charge for the financial year (Note 9 (a))

140,728

179,509

═════════


10.	Tangible assets
		Land and	Long	Plant and	Fixtures,	Motor	Total
		buildings	leasehold	machinery	fittings and	vehicles
		freehold	property		equipment
		£	£	£	£	£	£
	Cost
	At 1 January 2024	4,841,100	26,308	2,382,984	84,898	301,030	7,636,320
	Additions	2,708,089	-	346,786	25,058	9,800	3,089,733
	Disposals	-	-	-	-	(63,000)	(63,000)
		─────────	─────────	─────────	─────────	─────────	─────────
	At 31 December 2024	7,549,189	26,308	2,729,770	109,956	247,830	10,663,053
		─────────	─────────	─────────	─────────	─────────	─────────
	Depreciation
	At 1 January 2024	1,165,704	-	1,146,724	41,827	217,014	2,571,269
	Charge for the financial year	105,579	-	252,818	19,055	34,179	411,631
	On disposals	-	-	-	-	(63,000)	(63,000)
		─────────	─────────	─────────	─────────	─────────	─────────
	At 31 December 2024	1,271,283	-	1,399,542	60,882	188,193	2,919,900
		─────────	─────────	─────────	─────────	─────────	─────────
	Net book value
	At 31 December 2024	6,277,906	26,308	1,330,228	49,074	59,637	7,743,153
		═════════	═════════	═════════	═════════	═════════	═════════
	At 31 December 2023	3,675,396	26,308	1,236,260	43,071	84,016	5,065,051
		═════════	═════════	═════════	═════════	═════════	═════════

10.1.

Tangible assets continued

Included above are assets held under finance leases or hire purchase contracts as follows:

2024

2023

Net

Depreciation

Net

Depreciation

book value

charge

book value

charge

Motor vehicles

51,881

13,073

64,951

13,077

═════════

11.

Stocks

2024

2023

Finished goods and goods for resale

3,672,565

3,532,887

═════════

The directors feel it is appropriate that stocks are values at the most recent purchase price. Cost comprise of expenditure incurred in the normal course of business in bringing stocks to their current condition. Full provision is made for obsolete and slow moving items. Net realisable value comprises of actual or estimated selling price (net of trade discounts) less all future costs to completion or to be incurred in marketing and selling.


12.	Debtors	2024	2023
		£	£

	Amounts owed by group undertakings	1,195,515	-
	Other debtors	102,799	54,277
	Taxation (Note 16)	494,561	187,977
	Prepayments and accrued income	68,344	1,265,356
		─────────	─────────
		1,861,219	1,507,610
		═════════	═════════


13.	Cash and cash equivalents	2024	2023
		£	£

	Cash and bank balances	260,097	158,877
	Bank overdrafts	(7,262)	(5,371)
		─────────	─────────
		252,835	153,506
		═════════	═════════

14.

Creditors

2024

2023

Amounts falling due within one year

Bank overdrafts

7,262

5,371

Net obligations under finance leases

and hire purchase contracts

13,382

12,416

Trade creditors

2,194,266

1,129,698

Amounts owed to group undertakings

3,256,512

3,122,330

Taxation (Note 16)

124,137

155,875

Accruals

187,106

119,398

─────────

5,782,665

4,545,088

═════════

The intercompany loan balances are interest free, unsecured and repayable on demand.


15.	Creditors	2024	2023
	Amounts falling due after more than one year	£	£

	Finance leases and hire purchase contracts	41,839	55,220
		═════════	═════════


	Net obligations under finance leases
	and hire purchase contracts
	Repayable within one year	13,382	12,416
	Repayable between one and five years	41,839	55,220
		─────────	─────────
		55,221	67,636
		═════════	═════════


16.	Taxation	2024	2023
		£	£

	Debtors:
	VAT	458,173	151,873
	Income tax	36,104	36,104
	User defined taxation debtor	284	-
		─────────	─────────
		494,561	187,977
		═════════	═════════
	Creditors:
	Corporation tax	59,550	87,467
	PAYE / NI	64,587	68,408
		─────────	─────────
		124,137	155,875
		═════════	═════════

17.

Provisions for liabilities

The amounts provided for deferred taxation are analysed below:

Capital

Total

Total

allowances

2024

2023

At financial year start

304,325

304,325

212,283

Charged to profit and loss

81,178

81,178

92,042

─────────

At financial year end

385,503

304,325

═════════

18.

Financial Instruments

The company has chosen to apply the provisions of Section 11 and 12 of FRS 102 to account for all of its financial instruments.

Through financial instruments held, the company’s operations expose it to a variety of financial risks that
include currency risk, price risk, and liquidity risk.

Currency risk

The Company is exposed to currency exchange rate risk due to a significant proportion of its receivables and operating expenses being denominated in Euro currencies. The net exposure of each currency is monitored.

Price risk

The company is exposed to the price risk of commodities through its operations. The directors manage these risks by actiively monitoring the market prices and buying accordingly.

Liquidity risk

The company maintains a good liquidy level to ensure the company has sufficient funds available to meet obligations as they fall due.

19.

Government Grants Deferred

2024

2023

Capital grants received and receivable

At 1 January 2024

142,942

142,942

─────────

Amortisation

At 1 January 2024

(84,686)

(70,391)

Amortised in financial year

(14,295)

(14,295)

─────────

At 31 December 2024

(98,981)

(84,686)

─────────

Net book value

At 31 December 2024

43,961

58,256

═════════

At 1 January 2024

58,256

72,551

═════════

Capital government grant was received in 2018 for £139,342 which will be amortised over 10 years
Capital government grant was received in 2021 for £3600 which will be amortised over 10 years


20.	Grants and state funding

	State Department	Grant Agency	Type of Funding	2024	2023
				£	£
				═════════	═════════


21.	Share capital			2024	2023
				£	£
	Description	Number of shares	Value of units

	Allotted, called up and fully paid
	Ordinary Shares of £1 each	3,750,000	£1.00 each	3,750,000	3,750,000

				═════════	═════════

22.

Capital commitments

The company are in the process of building a new factory in Strabane. The main construction costs were complete by end July 25 but there are still some ongoing costs relating to issues with cracking of concrete poured. The internal fitout and exterior landscaping and hard surfaces areas are yet to start. Estimated complete is QTR2 FY26 and is within the dates agreed with Invest NI. Funding is from working capital. The spend up to the end of Dec 24 was £1.2m with a further £1.7m spent YTD in FY25 and a further £550k estimated to completion.


23.	Directors' remuneration	2024	2023
		£	£

	Remuneration	358,432	208,122
	Pension contributions	3,752	1,347
		─────────	─────────
		362,184	209,469
		═════════	═════════

24.

Related party transactions

The company has availed of the exemption under FRS 102 in relation to the disclosure of transactions with group undertakings.

The director pays interest at a rate of 2.5% p.a.on the oustanding loan.The loan is unsecured and repayable on demand.

The directors pension expense are for four directors.

25.

Parent and ultimate parent company

The company regards Mechanical Pipework Fabrication Limited as its parent company.

The companys ultimate parent undertaking is Mechanical Pipework Fabrications Ltd.

The address of Mechanical Pipework Fabrications Ltd is Inchenagh Co. Donegal Ireland.

Mechanical Pipework Fabrications Ltd is regarded as both the controlling party and the ultimate controlling party.

The parent of the largest group in which the results are consolidated is Mechanical Piperwork Fabrication Limited.

Mechanical Piperwork Fabrication Limited is registered in Ireland.

26.

Post-Balance Sheet Events

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


27	Reconciliation of Net Cash Flow to Movement in Net Debt
		Opening	Cash	Other	Closing
		balance	flows	changes	balance

		£	£	£	£

	Finance lease and hire purchase	(67,636)	13,583	(1,168)	(55,221)
		─────────	─────────	─────────	─────────
	Total liabilities from financing activities	(67,636)	13,583	(1,168)	(55,221)
		═════════	═════════	═════════	─────────
	Total Cash at bank and in hand (Note 13)				252,835
					─────────
	Total net cash				197,614
					═════════