Company registration number 01176469 (England and Wales)
M.P. BROTHERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2025
M.P. BROTHERS LIMITED
COMPANY INFORMATION
Director
Mr S Rabadiya
Company number
01176469
Registered office
198-206 Acton Lane
Park Royal
London
NW10 7NH
Auditor
Berkeley Finch Limited
2nd Floor
314 Regents Park Road
Finchley
London
N3 2JX
Business address
198-206 Acton Lane
Park Royal
London
NW10 7NH
M.P. BROTHERS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
M.P. BROTHERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2025
- 1 -

The director presents the strategic report for the year ended 31 May 2025.

Review of the business

With stable and positive relationships continuing with all key stakeholders, including employees, third party service providers and banking partners, the company has continued to maintain a strong reputation for quality, technical capabilities and attention to customer care in the market. This has enabled the company to have another strong operational performance which in turn has resulted in a strong financial result for the year ended 31 May 2025 from a profitability, liquidity and overall balance sheet perspective.

Certain specific aspects which impacted the results are:

- Continuation of strong customer relationships which has seen numerous major projects being worked on during the year together with a strong pipeline of future works being secured.

- A stable and technically proficient workforce which has a clear understanding of the company values and deep relations with key stakeholders.

- Close supervision and involvement of the director in all key aspects.

- Continued support of financing partners.

- An impairment charge totalling £1,002,049 has been booked (2024: £913,010). This mainly relates to 2 previously completed projects. The company has taken steps to ensure the quantum of the impairment is minimised and is still pursuing options to recover amounts due.

The results and financial position of the company are as follows:

- A decrease in turnover of £3,228,113 to £17,036,098 for the current year (2024: £20,264,211) as a result of several projects coming to an end during the year.

- A small increase in gross profit of £105,962 to £2,009,051 for the current year (2024: £1,903,089).

- Operating profit for the year was £293,120 (2024: £341,732). With continued effort on controlling overheads whilst always seeking to invest in its people, the increase in operating profit was the greater gross profit and insurance proceeds of £125,450 generated in the year being offset against the impairment charge and higher administrative costs.

- The profit for the financial year is £97,653 (2024: £240,350).

- A comparable and strong net current assets of £6,162,726 as at 31 May 2025 (2024: £6,163,323) which reflects the company maintaining its working capital cycle.

- A small increase in net assets to £6,232,054 (2024: £6,134,401).

Principal risks and uncertainties

The principal risks and uncertainties for our company include the following:

Credit risk

The company's credit risks are mainly attributable to the amounts receivable from our customers for services carried out. Our policy therefore remains to have a good mix of long standing and established customers and we have a financial and management reporting system that monitors our customers and our debtors’ book on a day to day basis. As previously noted, an impairment charge of £1,002,049 has been recognised during the year. Whilst the quantum is substantial, the director, with the full support of the team, has ensured this debt has been minimised.

Liquidity risk

The company finances its operations through a mixture of trade and intercompany debtors including amounts receivable from contracts less trade creditors and combination of short and long term bank borrowings. Therefore the director is confident that they can meet their obligations as they fall due. As noted, the company continues to have strong and positive relations with all stakeholders.

Business confidence in the construction industry sector continues to grow and the company has a strong order book from well-established customers; this is testimony to the company maintaining its strong market reputation. The director is confident that the company will continue to generate positive results in the future and enjoy the support of its key service delivery and financing partners.

M.P. BROTHERS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 2 -

Health and safety risk

Construction is a high risk activity and therefore health and safety procedures and training remains at the top of our business management principles.

Key performance indicators

The company relies on a number of Key Performance Indicators as an aid to setting performance targets and f or monitoring purposes.
| 202 5 | 202 4
Gross profit margin (%) | 11.7 | 9.4
Operating profit margin (%) | 1.7 | 1.7
Liquidity ratio | 2.94 | 2.41
Total equity (£’000) | 6,232 | 6,134

The movement in current year key performance indicators compared to 202 4 have been explained above.

Future performance

The director is satisfied with the overall financial result and balance sheet position for the year ended 31 May 2025. Importantly, the order book is strong with numerous projects beginning towards the second half of FY2026 and in FY2027. As such the director envisages FY2026 showing less operational activity overall but still expecting a profitable result. The director expects FY2027 and beyond to be show greater turnover and continued strong overall performance. In overall terms, the director envisages continued growth and profitability for the forthcoming periods.

To support the medium term plans, the group completed a refinancing exercise in October 2025 and continues to develop a strong working relationship with its lender.

Employee involvement and employment

Our short chain of command keeps us in constant dialogue with our tradesmen and support staff and keeps them abreast of company's activity, performance, quality control, training health and safety, environment issues, planning and future prospects.

The company remains an equal opportunity employer without reference to age, ethnicity or gender and we are opposed to all forms of discrimination. We continue our policy regarding the employment of disabled persons and fair consideration is given to applications for employment by disabled persons where the requirements of the job can be adequately fulfilled by a handicapped person.

I extend my sincere thanks to all our staff for their continuing dedication and commitment and I hope they continue to work on developing a life-​long and rewarding career where they feel valued and respected and a part of the on-​going success of the company.

On behalf of the board

Mr S Rabadiya
Director
9 March 2026
M.P. BROTHERS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MAY 2025
- 3 -

The director presents his annual report and financial statements for the year ended 31 May 2025.

Principal activities

The principal activity of the company continued to be that of construction and building contractors.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr S Rabadiya
Mr J N Hirani
(Resigned 27 September 2024)
Auditor

The auditor, Berkeley Finch Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the director is required to:

- select suitable accounting policies and then apply them consistently;

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

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

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is 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.

The director is responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of principal risks and uncertainties and future prospects.

M.P. BROTHERS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium- sized companies exemption.

On behalf of the board
Mr S Rabadiya
Director
9 March 2026
M.P. BROTHERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF M.P. BROTHERS LIMITED
- 5 -
Opinion

We have audited the financial statements of M.P. Brothers Limited (the 'company') for the year ended 31 May 2025 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the 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).

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 May 2025 and of its profit for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

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 we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

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 director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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 director's r eport for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the director's report have been prepared in accordance with applicable legal requirements.

M.P. BROTHERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF M.P. BROTHERS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the director's r eport.

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

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of director's remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the director's r esponsibilities s tatement (set out on page 4), the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

To identify risks of material misstatement due to any irregularities, including fraud and non-compliance with laws and regulations, we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:-

- the engagement partner ensured that the engagement team collectively had the appropriate competence;

- the capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector; and

- we focused on specific laws and regulations which we considered may have a direct material effect on the operations of the company;

- financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, employment and health and safety legislation.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud may occur, by;

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considered the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

M.P. BROTHERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF M.P. BROTHERS LIMITED
- 7 -

To address the risk of fraud through management bias and override of controls, we:

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

To address the risk of non-compliance with laws and regulations, we communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the company is subject to laws and regulations that directly effect the financial statements including financial reporting legislation (including related company legislation) and taxation legislation (including payroll taxes) and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statements items.

Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance the imposition of fines or litigation or the loss of the Company's licence to operate. We identified the following areas as those most likely to have such an effect: Building Regulations,2010 and healthcare and safety legislation regulations. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

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 member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Ajay Yadav FCA, FCCA (Senior Statutory Auditor)
For and on behalf of Berkeley Finch Limited
9 March 2026
Chartered Accountants
Statutory Auditor
2nd Floor
314 Regents Park Road
Finchley
London
N3 2JX
M.P. BROTHERS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2025
- 8 -
2025
2024
Notes
£
£
Turnover
3
17,036,098
20,264,211
Cost of sales
(15,027,047)
(18,361,122)
Gross profit
2,009,051
1,903,089
Administrative expenses
(839,332)
(684,594)
Other operating income
5
125,450
36,247
Exceptional item
4
(1,002,049)
(913,010)
Operating profit
6
293,120
341,732
Interest payable and similar expenses
10
(58,100)
(63,472)
Profit before taxation
235,020
278,260
Tax on profit
11
(137,367)
(37,910)
Profit for the financial year
97,653
240,350

The profit and loss account has been prepared on the basis that all operations are continuing operations.

M.P. BROTHERS LIMITED
BALANCE SHEET
AS AT
31 MAY 2025
31 May 2025
- 9 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
12
135,969
139,548
Current assets
Stocks
13
7,500
7,500
Debtors
14
9,326,821
10,518,149
9,334,321
10,525,649
Creditors: amounts falling due within one year
15
(3,171,595)
(4,362,326)
Net current assets
6,162,726
6,163,323
Total assets less current liabilities
6,298,695
6,302,871
Creditors: amounts falling due after more than one year
16
(43,783)
(155,552)
Provisions for liabilities
Deferred tax liability
18
22,858
12,918
(22,858)
(12,918)
Net assets
6,232,054
6,134,401
Capital and reserves
Called up share capital
20
30
30
Capital redemption reserve
370
370
Profit and loss reserves
6,231,654
6,134,001
Total equity
6,232,054
6,134,401

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 9 March 2026 and are signed on its behalf by:
Mr S Rabadiya
Director
Company registration number 01176469 (England and Wales)
M.P. BROTHERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2025
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 June 2023
30
370
5,893,651
5,894,051
Year ended 31 May 2024:
Profit and total comprehensive income
-
-
240,350
240,350
Balance at 31 May 2024
30
370
6,134,001
6,134,401
Year ended 31 May 2025:
Profit and total comprehensive income
-
-
97,653
97,653
Balance at 31 May 2025
30
370
6,231,654
6,232,054
M.P. BROTHERS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2025
- 11 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
409,395
715,037
Interest paid
(58,100)
(63,472)
Income taxes paid
(37,441)
-
0
Net cash inflow from operating activities
313,854
651,565
Investing activities
Purchase of tangible fixed assets
(28,988)
(86,604)
Proceeds from disposal of tangible fixed assets
-
0
2,173
Net cash used in investing activities
(28,988)
(84,431)
Financing activities
Repayment of borrowings
-
0
(678,272)
Repayment of bank loans
(102,639)
(93,929)
Net cash used in financing activities
(102,639)
(772,201)
Net increase/(decrease) in cash and cash equivalents
182,227
(205,067)
Cash and cash equivalents at beginning of year
(242,618)
(37,551)
Cash and cash equivalents at end of year
(60,391)
(242,618)
Relating to:
Bank overdrafts included in creditors payable within one year
(60,391)
(242,618)
M.P. BROTHERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2025
- 12 -
1
Accounting policies
Company information

M.P. Brothers Limited is a private company limited by shares incorporated in England and Wales. The registered office is 198-206 Acton Lane, Park Royal, London, NW10 7NH.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

A true t the time of approving the financial statements, t he director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus t he director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover for contracting activities is recognised at the fair value of the consideration receivable in the normal course of business, and shown net of VAT.

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and turnover can be reliably measured.

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered. Bank interest accruing on capital borrowed to fund the production of long term contracts is carried forward within long term contract balances.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

M.P. BROTHERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 13 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and machinery
25% on reducing balance
Office and computer equipment
25% - 33% on reducing balance
Motor vehicles
25% on reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

The carrying values of tangible assets are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including accrued income, 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.

M.P. BROTHERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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 paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company 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 company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

M.P. BROTHERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 15 -
1.11
Employee benefits

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.

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.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

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 lease s asset are consumed.

1.14

Amount recoverable on contracts

Amounts recoverable on contracts, including work-in-progress, are shown within debtors and are stated at the net sales value of the work done after provisions for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Turnover and related costs are recorded as contract activity progresses. An appropriate proportion of the anticipated contract profit or loss is recognised as the contract activity progresses commensurate with performance and anticipated final outcome. Excess payments are included in creditors as payments received on account.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements have had the most significant effect on amounts recognised in the financial statements.

Revenue recognition

In order to determine the profit and loss that the Company is able to recognise on its construction contracts in a specific period, the Company has to allocate total costs of the construction contracts between the proportion completing in the period and the proportion to complete in the future period. The assessment of the total costs to be incurred requires a degree of estimation, as does the assessment of a developments's valuation.

3
Turnover
2025
2024
£
£
Turnover analysed by class of business
Construction services
17,036,098
20,264,211
M.P. BROTHERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
3
Turnover
(Continued)
- 16 -

Turnover by geographical market

All income for the year arose in UK.

4
Exceptional item
2025
2024
£
£
Expenditure
Impairment of debtor balances
1,002,049
913,010
5
Other income

Other income comprises of insurance proceeds received in each year.

6
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of tangible fixed assets
32,567
33,637
Profit on disposal of tangible fixed assets
-
(1,394)
Exceptional item - see note 4
1,002,049
913,010
Operating lease charges
145,000
141,750
7
Auditor's remuneration
2025
2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
27,900
26,500
For other services
All other non-audit services
7,950
5,850
8
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2025
2024
Number
Number
Production staff
29
34
Administrative staff
5
5
Total
34
39
M.P. BROTHERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
8
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
1,089,632
1,295,676
Social security costs
122,162
137,898
Pension costs
17,679
20,871
1,229,473
1,454,445
9
Director's remuneration
2025
2024
£
£
Remuneration for qualifying services
36,000
66,000
Company pension contributions to defined contribution schemes
893
-
36,893
66,000
10
Interest payable and similar expenses
2025
2024
£
£
Interest on bank overdrafts and loans
58,100
63,472
11
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
182,427
92,563
Adjustments in respect of prior periods
(55,000)
(54,993)
Total current tax
127,427
37,570
Deferred tax
Origination and reversal of timing differences
9,940
340
Total tax charge
137,367
37,910
M.P. BROTHERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
11
Taxation
(Continued)
- 18 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2025
2024
£
£
Profit before taxation
235,020
278,260
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
58,755
69,565
Tax effect of expenses that are not deductible in determining taxable profit
124,757
225,385
Tax effect of utilisation of tax losses not previously recognised
-
0
(5,640)
Group relief
-
0
(26,881)
Permanent capital allowances in excess of depreciation
(1,085)
(21,968)
Research and development tax credit
-
0
(147,549)
Under/(over) provided in prior years
(55,000)
(54,993)
Deferred tax on timing differences
9,940
340
Profit on sale of fixed assets
-
0
(349)
Taxation charge for the year
137,367
37,910
12
Tangible fixed assets
Plant and machinery
Office and computer equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 June 2024
189,009
37,467
216,717
443,193
Additions
-
0
1,498
27,490
28,988
At 31 May 2025
189,009
38,965
244,207
472,181
Depreciation and impairment
At 1 June 2024
185,135
27,364
91,146
303,645
Depreciation charged in the year
968
2,900
28,699
32,567
At 31 May 2025
186,103
30,264
119,845
336,212
Carrying amount
At 31 May 2025
2,906
8,701
124,362
135,969
At 31 May 2024
3,874
10,103
125,571
139,548
M.P. BROTHERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 19 -
13
Stocks
2025
2024
£
£
Raw materials and consumables
7,500
7,500
14
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
255,269
1,208,469
Gross amounts owed by contract customers
6,045,694
6,058,043
Amounts owed by group undertakings
2,572,872
2,297,222
Other debtors
337,361
713,119
Prepayments and accrued income
115,625
241,296
9,326,821
10,518,149

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

15
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Bank loans and overdrafts
17
167,468
340,565
Trade creditors
1,212,332
2,122,096
Amounts owed to group undertakings
270,336
433,240
Corporation tax
182,549
92,563
Other taxation and social security
398,866
169,977
Other creditors
403,741
571,055
Accruals and deferred income
536,303
632,830
3,171,595
4,362,326

Amount s due to group undertakings are unsecured, interest free and payable on demand.

16
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Bank loans and overdrafts
17
43,783
155,552
M.P. BROTHERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 20 -
17
Loans and overdrafts
2025
2024
£
£
Bank loans
150,860
253,499
Bank overdrafts
60,391
242,618
211,251
496,117
Payable within one year
167,468
340,565
Payable after one year
43,783
155,552

The bank loan is secured by a fixed and floating charge over the assets of the business.

The bank loan is repayable by monthly instalments. Interest is charged at 4.85% per annum. The full amount is repayable between 1 to 2 years of the balance sheet date.

18
Deferred taxation

Deferred tax assets and liabilities are offset where the 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:

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
22,858
12,918
2025
Movements in the year:
£
Liability at 1 June 2024
12,918
Charge to profit or loss
9,940
Liability at 31 May 2025
22,858

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

M.P. BROTHERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 21 -
19
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
17,679
20,871

The company operates a defined contribution retirement benefit scheme for all qualifying employees under the Auto Enrolment Workplace Pension scheme. The assets of the scheme are held separately from those of the company. The company contributes a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. The only obligation of the company with respect to the scheme is to make the specified contributions.

20
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
3,000
3,000
30
30
21
Financial commitments, guarantees and contingent liabilities

There are guarantee bonds in respect of the performance of the company issued in the normal course of business, amounting to £2,366,224 (202 4: £2,366,224).

The company has issued a cross company guarantee in respect of the obligations of its parent company, MP Bros Holdings Limited, in respect of a bank loan. The guarantee is limited to £3,000,000 and is supported by a first ranking debenture over all of its assets and undertakings.

22
Operating lease commitments
As lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2025
2024
£
£
Within 1 year
145,000
145,000
Years 2-5
326,250
471,250
471,250
616,250
23
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

M.P. BROTHERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
23
Related party transactions
(Continued)
- 22 -

The company has taken advantage of the exemption available in accordance with Financial Reporting Standard 102, Section 33.1A, 'Related Party Disclosures' not to disclose transactions entered into and outstanding balances between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.

During the year, sales of £339,497 (20 24: £165,281) and purchases of £427,400 (20 24: £684,392) were made to and from MPB Joinery Limited, a fellow subsidiary. At the year end, the amount due to MPB Joinery Limited was £270,336 (20 24: £433,240).

24
Ultimate controlling party

The ultimate parent company is M P Bros Holdings Limited, a company incorporated in England and Wales. These accounts can be obtained from the UK Companies House website.

The ultimate controlling party is Mr S Rabadiya by virtue of his majority shareholding in M P Bros Holdings Limited.

25
Cash generated from operations
2025
2024
£
£
Profit after taxation
97,653
240,350
Adjustments for:
Taxation charged
137,367
37,910
Finance costs
58,100
63,472
Gain on disposal of tangible fixed assets
-
(1,394)
Depreciation and impairment of tangible fixed assets
32,567
33,637
Movements in working capital:
Decrease/(increase) in debtors
1,191,328
(436,661)
(Decrease)/increase in creditors
(1,107,620)
777,723
Cash generated from operations
409,395
715,037
M.P. BROTHERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 23 -
26
Analysis of changes in net debt
2025
£
Opening net debt
Cash at bank and in hand
(242,618)
Borrowings excluding overdrafts
(253,499)
(496,117)
Changes in net debt arising from:
Cash flows of the entity
284,866
Closing net debt as analysed below
(211,251)
Closing net debt
Cash at bank and in hand
(60,391)
Borrowings excluding overdrafts
(150,860)
(211,251)
2025-05-31 2024-06-01 false false false CCH Software CCH Accounts Production 2025.300 Mr S Rabadiya Mr J N Hirani 01176469 2024-06-01 2025-05-31 01176469 bus:Director1 2024-06-01 2025-05-31 01176469 bus:Director2 2024-06-01 2025-05-31 01176469 bus:RegisteredOffice 2024-06-01 2025-05-31 01176469 2025-05-31 01176469 2023-06-01 2024-05-31 01176469 1 2024-06-01 2025-05-31 01176469 1 2023-06-01 2024-05-31 01176469 core:RetainedEarningsAccumulatedLosses 2023-06-01 2024-05-31 01176469 core:RetainedEarningsAccumulatedLosses 2024-06-01 2025-05-31 01176469 2024-05-31 01176469 core:PlantMachinery 2025-05-31 01176469 core:FurnitureFittings 2025-05-31 01176469 core:MotorVehicles 2025-05-31 01176469 core:PlantMachinery 2024-05-31 01176469 core:FurnitureFittings 2024-05-31 01176469 core:MotorVehicles 2024-05-31 01176469 core:CurrentFinancialInstruments 2025-05-31 01176469 core:CurrentFinancialInstruments 2024-05-31 01176469 core:Non-currentFinancialInstruments 2025-05-31 01176469 core:Non-currentFinancialInstruments 2024-05-31 01176469 core:ShareCapital 2025-05-31 01176469 core:ShareCapital 2024-05-31 01176469 core:CapitalRedemptionReserve 2025-05-31 01176469 core:CapitalRedemptionReserve 2024-05-31 01176469 core:RetainedEarningsAccumulatedLosses 2025-05-31 01176469 core:RetainedEarningsAccumulatedLosses 2024-05-31 01176469 core:ShareCapital 2023-05-31 01176469 core:CapitalRedemptionReserve 2023-05-31 01176469 core:RetainedEarningsAccumulatedLosses 2023-05-31 01176469 core:ShareCapitalOrdinaryShareClass1 2025-05-31 01176469 core:ShareCapitalOrdinaryShareClass1 2024-05-31 01176469 2024-05-31 01176469 2023-05-31 01176469 core:WithinOneYear 2025-05-31 01176469 core:WithinOneYear 2024-05-31 01176469 core:PlantMachinery 2024-06-01 2025-05-31 01176469 core:FurnitureFittings 2024-06-01 2025-05-31 01176469 core:MotorVehicles 2024-06-01 2025-05-31 01176469 core:UKTax 2024-06-01 2025-05-31 01176469 core:UKTax 2023-06-01 2024-05-31 01176469 2 2024-06-01 2025-05-31 01176469 2 2023-06-01 2024-05-31 01176469 3 2024-06-01 2025-05-31 01176469 3 2023-06-01 2024-05-31 01176469 core:PlantMachinery 2024-05-31 01176469 core:FurnitureFittings 2024-05-31 01176469 core:MotorVehicles 2024-05-31 01176469 bus:OrdinaryShareClass1 2024-06-01 2025-05-31 01176469 bus:OrdinaryShareClass1 2025-05-31 01176469 bus:OrdinaryShareClass1 2024-05-31 01176469 core:BetweenTwoFiveYears 2025-05-31 01176469 core:BetweenTwoFiveYears 2024-05-31 01176469 bus:PrivateLimitedCompanyLtd 2024-06-01 2025-05-31 01176469 bus:FRS102 2024-06-01 2025-05-31 01176469 bus:Audited 2024-06-01 2025-05-31 01176469 bus:FullAccounts 2024-06-01 2025-05-31 xbrli:pure xbrli:shares iso4217:GBP