FOR THE YEAR ENDED 31 MARCH 2025
MAIL HANDLING INTERNATIONAL LIMITED
COMPANY INFORMATION
MAIL HANDLING INTERNATIONAL LIMITED
CONTENTS
MAIL HANDLING INTERNATIONAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The purpose of this report is to provide an analysis of the company's past performance and to provide insight into the company's main objectives, strategies and the principal risks it faces.
The whole company remained steadfastly committed to the restructuring and rightsizing strategy to deliver a foundation for future growth. The challenging, but necessary, decisions and costs of restructuring have been complimented by investment in training and efficiency. This has encompassed a commitment to quality and lean processes to deliver improved consumer experience and client routing choices. Active and positive building of technology platforms and delivery partnerships have taken time to integrate but by the end of the financial year are starting to deliver clients and services envisioned. The pushing forward of our triple bottom line strategy, alongside ISO27001 & ISO9001 audit success, has resulted in MHI being awarded some new tenders which we believe will go live in the next six months as they transition from the incumbent supplier.
While advertising lettershop numbers have not been as strong this year as hoped, JICmail industry statistics are forecasting an improvement and enquiry levels are certainly higher than twelve months ago. Magazine and financial reporting mail is steady giving a base level of activity.
MHI has continued to be a truly carrier agnostic platform, very much more than just a reseller for a handful of carriers. There was continued investment through the year in AI technology to deliver internal benefits and cost savings as well as for our clients' customers in removing opacity from the delivery conduit. The investment in new tracking and reporting technologies was only just starting to feed into the numbers in this year but we are confident it will strengthen MHI’s service offering in the years ahead and be the building blocks on which the launch of MHI360 will be based in Q3/Q4 2025.
While advertising lettershop numbers have not been as strong this year as hoped, JICmail industry statistics are forecasting an improvement and enquiry levels are certainly higher than twelve months ago. Magazine and financial reporting mail is steady giving a base level of activity.
MHI has continued to be a truly carrier agnostic platform, very much more than just a reseller for a handful of carriers. There was continued investment through the year in AI technology to deliver internal benefits and cost savings as well as for our clients' customers in removing opacity from the delivery conduit. The investment in new tracking and reporting technologies was only just starting to feed into the numbers in this year but we are confident it will strengthen MHI’s service offering in the years ahead and be the building blocks on which the launch of MHI360 will be based in Q3/Q4 2025.
Downturns in the global and UK economy along with associated currency fluctuations are a risk that the company actively works to mitigate. Agility as demonstrated during Brexit has been one of the business's core strengths supported by software, AI and a skilled team. Large client strategic change is a risk that is being addressed through partnerships with tech platforms to provide access to more niche and growing clients has started to reduce the company’s reliance on clients with the associated corporate uncertainties. With an increased focus on cash stability, credit risk and liquidity the company now has credit insurance and stabilised working capital provision through it’s long term banking relationship with NatWest, more new clients are trading on Direct Debit terms which is reducing payment uncertainty and allowing the business to pass savings back to clients.
Since the end of the year the Company has sold its investment property and settled the associated mortgage that was funding the property. The net proceeds have increased the working capital available in the Company by circa £1m.
Since the end of the year the Company has sold its investment property and settled the associated mortgage that was funding the property. The net proceeds have increased the working capital available in the Company by circa £1m.
MHI is continuing to invest in building towards a more sustainable, profitable, international business through focus on developing our post, parcel and logistics conduits with established partners; creating innovative delivery channels resulting in enhanced tracking and clarity. The current KPI’s are the foundations for growth in a rapidly changing market with swiftly evolving client needs. The team have built an agile business with software at the core of tangible multiple cross border delivery offerings with integrated customs declaration and duty management.
Page 1
MAIL HANDLING INTERNATIONAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
This report was approved by the board on 22 December 2025 and signed on its behalf.
Page 2
1
MAIL HANDLING INTERNATIONAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present their report and the financial statements for the year ended 31 March 2025.
The loss for the year, after taxation, amounted to £93,861 (2024:profit £237,861).
The company has declared no dividends this period (2024: £Nil).
The directors who served during the year were:
The Directors, agents and employees are strategically focused on seeking out new opportunities, strengthening existing relationships and removing inefficiencies to improve and deliver triple bottom line results of People, Place & Profit. Brexit and Northern Ireland regulation compliance are being delivered in line with information flowing from Government departments and HMRC with the business continuing to engage at the highest available level to ensure it is well placed to reach European Markets with clients post & parcels.
The Company is always forging new and existing supplier relationships to enhance customer choice and mitigate financial, as well as network risk. These include direct access to partner hub facilities in mainland Europe to manage our client’s products to flow unhindered from Asia and the Americas into European post facilities.
Continued investment in technology and mechanisation will give the business a strategic advantage in processing capacity and improve stakeholder value in all aspects of the business.
The Company is always forging new and existing supplier relationships to enhance customer choice and mitigate financial, as well as network risk. These include direct access to partner hub facilities in mainland Europe to manage our client’s products to flow unhindered from Asia and the Americas into European post facilities.
Continued investment in technology and mechanisation will give the business a strategic advantage in processing capacity and improve stakeholder value in all aspects of the business.
The Companies Act 2006 (Strategic Report and Director’s Report) Regulations 2013 requires a Strategic Report to be prepared. Where mandatory disclosures in the Director’s report are considered by the directors to be of strategic importance, these have been included in the Strategic report rather than the Director’s Report.
Since the end of the year the Company has sold its investment property and settled the associated mortgage that was funding the property. The net proceeds have increased the working capital available in the Company by circa £1m.
Page 3
MAIL HANDLING INTERNATIONAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
The auditors, Bishop Fleming Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
Page 4
MAIL HANDLING INTERNATIONAL LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
The directors are responsible for preparing the Strategic Report, the Director's 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 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 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 for the Company's financial statements and then 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 to 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.
Page 5
MAIL HANDLING INTERNATIONAL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAIL HANDLING INTERNATIONAL LIMITED
We have audited the financial statements of Mail Handling International Limited (the 'Company') for the year ended 31 March 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the 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 auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
Page 6
MAIL HANDLING INTERNATIONAL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAIL HANDLING INTERNATIONAL LIMITED (CONTINUED)
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.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
Page 7
MAIL HANDLING INTERNATIONAL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAIL HANDLING INTERNATIONAL LIMITED (CONTINUED)
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 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 have considered the nature of the industry and sector, control environment and business performance.
∙We have considered the results of our enquiries of management, including the CEO, about their own identification and assessment of the risk of irregularities.
∙For any matters identified we have obtained and reviewed the Company’s documentation of their policies and procedures relating to:
°Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
°Detecting and responding to the risk of fraud and whether they have knowledge of actual, suspected, or alleged fraud; and,
°The internal controls established to mitigate the risks of fraud or non-compliance with laws and regulations.
∙We have considered the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud, and incorrect recognition of revenue was identified as the greatest potential areas for fraud.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also 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, FRS102 and tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company’s ability to operate or to avoid a material penalty. These included health and safety and employment legislation.
Audit response to risks identified
∙Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
∙Performed various substantive tests of detail related to the recognition of revenue;
∙Enquiring of management concerning actual and potential litigation claims;
∙Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement or fraud; and
∙In addressing the risk of fraud through management override of controls, testing the appropriateness of
Page 8
MAIL HANDLING INTERNATIONAL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAIL HANDLING INTERNATIONAL LIMITED (CONTINUED)
journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant 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.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.
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.
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.
for and on behalf of
Chartered Accountants
Statutory Auditors
10 Temple Back
BS1 6FL
Page 9
MAIL HANDLING INTERNATIONAL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
Page 10
MAIL HANDLING INTERNATIONAL LIMITED
REGISTERED NUMBER:03241562
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 24 form part of these financial statements.
Page 11
MAIL HANDLING INTERNATIONAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
Page 12
MAIL HANDLING INTERNATIONAL LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
Page 13
MAIL HANDLING INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Mail Handling International Limited is a limited liability company incorporated in the United Kingdom. The registered office is 82-87 Feeder Road, Bristol, BS2 0TQ.
2.ACCOUNTING POLICIES
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 management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Directors assess whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the company to continue as a going concern. The Directors make this assessment in respect of a period of 12 months from the date of approval of the financial statements.
During the year the Company has continued its review of the cost base of the Company. This has seen improved financial performance since the balance sheet date.
Since the end of the year the Company has sold its investment property and settled the associated mortgage that was funding the property. The net proceeds have increased the working capital available in the Company by circa £1m.
The Directors of the company have prepared several different forecast scenarios which indicate that the Company is able to continue trading for the foreseeable future within its existing bank facilities for a period of at least 12 months from the date of approval of the financial statements.
In the Directors' view this provides adequate contingency in the event of any significant adverse events that may arise in the 12 months after approving these financial statements, and therefore the directors consider that the Company remains a going concern and that there are no factors reasonably foreseen that are expected to materially impact that assessment, as such the financial statements have been prepared on a going concern basis.
During the year the Company has continued its review of the cost base of the Company. This has seen improved financial performance since the balance sheet date.
Since the end of the year the Company has sold its investment property and settled the associated mortgage that was funding the property. The net proceeds have increased the working capital available in the Company by circa £1m.
The Directors of the company have prepared several different forecast scenarios which indicate that the Company is able to continue trading for the foreseeable future within its existing bank facilities for a period of at least 12 months from the date of approval of the financial statements.
In the Directors' view this provides adequate contingency in the event of any significant adverse events that may arise in the 12 months after approving these financial statements, and therefore the directors consider that the Company remains a going concern and that there are no factors reasonably foreseen that are expected to materially impact that assessment, as such the financial statements have been prepared on a going concern basis.
Page 14
MAIL HANDLING INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.ACCOUNTING POLICIES (CONTINUED)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following basis:
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 the Statement of Comprehensive Income.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.
Investment property is carried at fair value determined annually by the directors and derived from the current market rates 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 the Statement of Comprehensive Income.
Page 15
MAIL HANDLING INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.ACCOUNTING POLICIES (CONTINUED)
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.
Functional and presentation currency
Transactions and balances
Page 16
MAIL HANDLING INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.ACCOUNTING POLICIES (CONTINUED)
Provisions are made where an event has taken place that gives the Company a legal or constructive
obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate
can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of Comprehensive Income in the year that
the Company becomes aware of the obligation, and are measured at the best estimate at the
Statement of financial position date of the expenditure required to settle the obligation, taking into
account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of
Financial Position.
obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate
can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of Comprehensive Income in the year that
the Company becomes aware of the obligation, and are measured at the best estimate at the
Statement of financial position date of the expenditure required to settle the obligation, taking into
account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of
Financial Position.
Page 17
MAIL HANDLING INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The critical judgements and sources of estimation uncertainty made by management that have a significant effect on the amounts recognised in the financial statements are described below.
Critical judgements
Lease commitments
The Company has entered into commercial leases as a lessee for the use of property, plant and equipment. The classification of such leases as operating or finance lease requires the Company to determine, based on an evaluation of the terms and conditions of the arrangements, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the Statement of Financial Position.
Key sources of estimation uncertainty
Valuation of investment property
The property included in investment properties is held at the directors best estimate of fair value at the balance sheet date, based on historical experience, market conditions, and other relevant factors.
The whole of the turnover is attributable to the principal activity of the Company.
Analysis of turnover by country of destination:
Page 18
MAIL HANDLING INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 19
MAIL HANDLING INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
There are no factors expected to materially affect future tax charges.
Page 20
MAIL HANDLING INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
|
|
||||||||
|
|
||||||||
|
|
||||||||
|
|
||||||||
|
|
||||||||
|
|
||||||||
|
|
||||||||
|
|
||||||||
|
|
||||||||
|
|
||||||||
|
|
||||||||
|
|
||||||||
|
|
Page 21
MAIL HANDLING INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
|
|
||
|
|
||
|
|
||
|
|
||
|
|
The 2025 valuations were made by the directors, on an open market value for existing use basis.
Page 22
MAIL HANDLING INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Capital redemption reserve
Profit and loss account
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £37,503 (2024: £51,213). Contributions totalling £NIL (2024: £NIL) were payable to the fund at the year end.
Page 23
MAIL HANDLING INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Page 24