The directors present the strategic report for the year ended 31 January 2025.
The principal activities of the group continued to be the design, sourcing, fabrication and installation of natural stone and architectural glass through the trading subsidiaries, Mega Marble Limited and Mega Glass Limited.
Turnover for the year was £9,418,299 (2024: £11,772,026), which was broadly in line with expectations.
The key risk factor in the industry is financial risk which takes the following forms:
Credit risk from clients
Exchange rate risks
Market uncertainty arising from fluctuating interest rates
Rising inflation leading to cost pressures
Tightening labour market
We continue to manage these risks across the group by being cautious in the projects we work on and assessing the risks on a project-by-project basis.
Over the past year, Mega Fabrications Group has continued to prioritise investment processes and people. Bespoke dashboards have been developed across the business to optimise information sharing , communication and efficiency planning; we are integrating AI into various aspects of our works including financials, external communication, and production flow. People have always been at the heart of the MFG brand and during 2025 we have focussed on recruiting a number of professional, experienced, dynamic individuals to take the teams at both Mega Marble and Mega Glass to the next level. Directorships have also been awarded to key individuals in both companies. These investments are integral to our operational strategy, enabling us to maintain a competitive edge within the industry as well a to ensure we remain at the forefront of technical knowledge and material sourcing.
Supply Chain Cost Management
The challenge of rising costs across the supply chain has continued to be a key area of focus for the Group. We have consistently reviewed and managed these cost pressures, and the strength of our long-standing, trusted relationships with key suppliers across both the UK and Europe has played a pivotal role in mitigating cost increases wherever possible. We have also tightened credit controls further to ensure cash flow remains high and bad debt minimal.
Waste Management and Sustainability Initiatives
Sustainability and waste reduction have been significant priorities for the Group during the year. A major achievement has been the successful recycling of over 95% of glass cullet through SGGUK, resulting in a reduction of 3.75 tonnes of CO2 emissions per month and preventing 12.5 tonnes of cullet from entering landfill. Additionally, we have donated wood waste to local community projects, such as Men in Sheds, and expanded our commitment to sustainability by purchasing three electric vehicles for our fleet, further enhancing our environmental responsibility.
Future Developments
Analytics and Reporting Enhancement: Both companies are prioritising the development and enhancement of our analytics and reporting capabilities. By integrating Power BI and the rapidly evolving AI offering we are focussing on improving our ability to analyse business data across all functions, providing actionable insights that will drive project efficiency, inform company strategy, and guide investment decisions.
Sales: We continue to invest in and leverage our strong network of industry contacts within the interior fit-out sector. This ensures our inclusion on the tender lists for a wide range of new development and refurbishment projects. We ae expanded our dedicated full time Sales team to 3 with a strong focus on further growing the reach of our Prism Shower brand and in targeting projects that reflect the considerable experience and expertise that Mega Marble has in Spas and Public areas in hotels, apartment living and prestigious private residences.
Along with our established types of work, the group has taken on the manufacturing for several bespoke Stone and Glass suppliers, cutting, shaping and finishing to bespoke quality standards and this has bought a new line of regular manufacturing work and income to the group
Exhibitions: In the coming year we will attend several prominent trade fairs, including the Milan Design Show, Glasstec in Düsseldorf, Marmomac Stone Show in Italy. Additionally, the Company will be exhibiting at the Surface Design Show in London for the second year in row to showcase our increasing product range and fabrication skill set and engage with key stakeholders within the industry.
For Mega Glass Limited the gross profit margin achieved in the year was 37.87%. The current asset ratio of the company was 3.77:1.
For Mega Marble Limited the gross profit margin achieved in the year was 20.35%. The current asset ratio of the company was 9.67:1.
Key developments are:
Continued investment in both staff and upgrading our plant.
Establishing new, mutually beneficial partnerships with other bespoke specialist providers – both in the UK and Europe – to enable us to supply our customer bases with a greater spread of services and products
To continue to consider all opportunities that improve our environmental and sustainable footprint.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 January 2025.
The results for the year are set out on page 7. Ordinary dividends were paid amounting to £640,096. The directors do not recommend payment of a final dividend.
The directors who held office in the year and to the date of approval of the financial statements were:
In accordance with the company's articles, a resolution proposing that Dickinsons be reappointed as auditor of the group will be put at a General Meeting.
This report has been prepared under provisions applicable to medium-sized companies.
We have audited the financial statements of Mega Fabrications Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for 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 group's and 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 directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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.
Our approach was as follows:
We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and
determined that the most significant are those that relate to include the Companies Act 2006, and relevant tax
legislation.
We communicated identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
We discussed with management any known or suspected instances of fraud or non-compliance with laws and regulations.
We assessed the risks for material misstatement in respect of fraud in particular reference to related party transactions by nature of the company being a family run company and management override of controls.
We considered the risk of fraud through related party transactions by reviewing journal transactions, scrutinising related party transactions and enquiry of management. Based on the audit approach to address the risk of fraud through related party transactions we also addressed the risk of fraud from management override by following these transactions through to the financial statements.
We assessed the risks of material misstatement in respect of fraud as follows:
- The audit team discussed whether there were any areas that were susceptible to misstatement as part of their
fraud discussion.
- In addressing the risk of management override of controls, we tested the appropriateness of journal entries with a focus on large or unusual transactions based on criteria determined using our knowledge of the business and industry. We also challenged assumptions and judgements made by management in their significant accounting estimates and judgements.
- We incorporated an element of unpredictability in the selection of the nature, timing, and extent of our audit
procedures.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
The statement of total comprehensive income has been prepared on the basis that all operations are continuing operations.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £580,096 (2024 - £333,617).
Mega Fabrications Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Brandon House, First Floor, 90 The Broadway, Chesham, Buckinghamshire, HP5 1EG. The company's trading address is at Unit 3 Foster Avenue, Woodside Park, Dunstable, Bedfordshire, LU5 5TA.
The group consists of Mega Fabrications Group Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.
The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Mega Fabrications Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 January 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
At the time of approving the financial statements, the directors have a reasonable expectation that the company and the group have adequate resources to continue in operational existence for the foreseeable future and continues to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Turnover represents the fair value of consideration in respect of the production, manufacture and supply of marble and glass.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods). The amount of revenue can be measured reliably and, agreed with customers, by reference to applications made against current contracts reflecting the probability that economic benefits associated with the transaction will flow to the entity,
Revenue includes the invoiced amount of goods and services provided by the company except to the extent that they relate to long-term contracts.
Long-term contract accounting is applied for marble design and installation projects. When the outcome can be estimated reliably, revenues and project costs are recognised as revenue and expensed respectively by reference to the stage of completion of the project activity at the end of the reporting period.
Whenever the outcome of a project cannot be estimated reliably, for example during the early stages of a project or during the course of a projects completion, all related project costs that are incurred are immediately expensed and revenues are recognised only to the extent of those costs being recoverable.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
In accordance with invariable industry practice the assessment of carrying values for contracts in progress requires the director to exercise professional judgement in determining estimates included in these calculations where the outcome cannot be determined with absolute certainty with reference to fixed contract terms and conditions. Where such estimates are used they are periodically reviewed and amended to actual outcomes once known.
Work in progress is determined by reference to the stage of completion of the glass production process. This requires the directors to be able to fully assess where each individual piece of work is within the design, manufacturing and production process which arises from industry specific judgement.
The directors have applied their judgement in impairing slow moving stock to it's net realisable value, based on the current market conditions.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
The directors apply a residual value of between 31% and 52% to specific items of bespoke and high value plant and machinery. This estimate is based on the expected value which the asset will retain. These assets are reviewed annually for any impairment and there has been no change to the basis of the estimate.
An analysis of the group's turnover is as follows:
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The charge for the year can be reconciled to the profit per the statement of total comprehensive income as follows:
Details of the company's subsidiaries at 31 January 2025 are as follows:
The investments in subsidiaries are stated at cost.
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
A defined contribution pension scheme is operated for the benefit of employee's and the director. The assets of the scheme are held separately from those of the group in an independently administered fund.
The shares carry full rights to voting, dividends and entitlement on a capital distribution.
The operating leases represent leases of property, vehicles and equipment to third parties. The leases are negotiated over terms of 3 - 15 years and rentals are fixed for an average of 3 - 15 years years.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The company has been controlled throughout the year by Mr R Mimoni and Mrs N Mimoni, who together own all of the issued share capital.