Company registration number 07051457 (England and Wales)
M P BROS HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2025
M P BROS HOLDINGS LIMITED
COMPANY INFORMATION
Director
Mr S Rabadiya
Company number
07051457
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 BROS HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Director's report
4 - 5
Independent auditor's report
6 - 9
Group statement of comprehensive income
10
Group and company balance sheets
11 - 12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 35
M P BROS HOLDINGS 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 business including key performance indicators

There has been no change in the year in terms of the group structure and nature of activities, with M.P. Brothers Limited (“MPB”) continuing to be the principal trading subsidiary of the group. With stable and positive relationships continuing with all key stakeholders, including employees, third party service providers and banking partners, MPB 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 maintain good operational performance which in turn has resulted in a positive financial result for the year ended 31 May 2025 from a profitability, liquidity and overall balance sheet perspective. M P Bros Holdings Limited has had a stable year, with no unexpected changes to occupancy or other operational factors which could materially impact the financial performance during the year. Certain specific aspects which impacted the group results are: Continuation of strong customer relationships which has seen numerous 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 in MPB. 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. A write off of £134,700 in MPB Property Limited against an investment made by that company to the recoverable amount. The results and financial position of the group are as follows: A decrease in turnover of £3,811,325 to £17,139,392 for the current year (2024: £20,950,717). The majority of the decrease arose in MPB with the company seeing several projects coming to an end during the year. An increase in gross profit of £333,529 to £2,485,978 for the current year (2024: £2,152,449) with a positive contribution to the growth being made by MPB and MPB Joinery Limited. Operating profit for the year was £585,634 (2024: £418,972). 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 generated in the year being offset against the impairment charge and higher administrative costs. The profit for the financial year is £263,735 (2024: £240,551). The group has maintained a strong net current assets position of £4,696,549 as at 31 May 2025 (2024: £4,753,505) which reflects all group companies maintaining their working capital cycle. Net assets as at 31 May 2025 are £10,628,417, which is comparable to the prior year position of £10,553,129.

M P BROS HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 2 -
Principal risks and uncertainties

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

Credit risk

The group'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 totalling £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 group 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 group continues to have strong and positive relations with all stakeholders.

Business confidence in the construction industry sector continues to grow and MPB 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 MPB and the group overall will continue to generate positive results in the future and enjoy the support of its key service delivery and financing partners.

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 group relies on a number of Key Performance Indicators as an aid to setting performance targets and for monitoring purposes.

2025 2024

Gross profit margin (%) 14.5 10.3

Operating profit margin (%) 3.4 2.0

Liquidity ratio 2.26 1.99

Total equity (£’000) 7,846 7,612

The movement in current year key performance indicators compared to 2024 have been explained above.

M P BROS HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 3 -
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 in MPB, the largest operating component of the group, 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 profitable results. The director expects FY2027 and beyond to show greater turnover and continued strong overall performance for MPB. 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 the group’s activity, performance, quality control, training, health and safety, environment issues, planning and future prospects.

The group remain 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 group.

On behalf of the board

Mr S Rabadiya
Director
9 March 2026
M P BROS HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MAY 2025
- 4 -

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

Principal activities

The principal activity of the group continued to be that of construction, joinery, property development and investment.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £30,000. The director does not recommend payment of a further 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
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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

- select suitable accounting policies and then apply them consistently;

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

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

The true group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group'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.

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 auditor of the company 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 auditor of the company is aware of that information.

M P BROS HOLDINGS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 5 -
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 BROS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF M P BROS HOLDINGS LIMITED
- 6 -
Opinion

We have audited the financial statements of M P Bros Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group and company balance sheets, 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 group and company 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 group's and the parent company's affairs as at 31 May 2025 and of the group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 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 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 BROS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF M P BROS HOLDINGS LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identifie d material misstatements in the s trategic r eport or the d irector's r eport.

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

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

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

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

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

Responsibilities of director

As explained more fully in the director's r esponsibilities s tatement (set out on page 5), the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the group and parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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 group 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 group;

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

M P BROS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF M P BROS HOLDINGS LIMITED
- 8 -

We assessed the susceptibility of the group'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.

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 group 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 Group'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.

M P BROS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF M P BROS HOLDINGS LIMITED
- 9 -

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.

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 BROS HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2025
- 10 -
2025
2024
Notes
£
£
Turnover
3
17,139,392
20,950,717
Cost of sales
(14,653,414)
(18,798,268)
Gross profit
2,485,978
2,152,449
Administrative expenses
(1,023,745)
(856,714)
Insurance proceeds income
125,450
36,247
Exceptional item
4
(1,002,049)
(913,010)
Operating profit
5
585,634
418,972
Interest receivable and similar income
8
-
0
147
Interest payable and similar expenses
9
(245,947)
(263,486)
Amounts written off investments
14
(134,700)
-
Fair value gains and losses on investment properties
296,154
103,462
Profit before taxation
501,141
259,095
Tax on profit
10
(237,406)
(18,544)
Profit for the financial year
25
263,735
240,551
Profit for the financial year is attributable to:
- Owners of the parent company
254,716
177,497
- Non-controlling interests
9,019
63,054
263,735
240,551
Total comprehensive income for the year is attributable to:
- Owners of the parent company
254,716
177,497
- Non-controlling interests
9,019
63,054
263,735
240,551

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

M P BROS HOLDINGS LIMITED
GROUP AND COMPANY BALANCE SHEETS
AS AT
31 MAY 2025
31 May 2025
- 11 -
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
12
573,406
602,616
429,969
453,111
Investment properties
13
5,358,462
5,062,308
4,738,462
4,442,308
Investments
14
-
0
134,700
135
135
5,931,868
5,799,624
5,168,566
4,895,554
Current assets
Stocks
16
447,429
208,211
-
-
Debtors
17
7,595,428
9,077,594
1,028,360
926,590
Cash at bank and in hand
388,526
250,252
349,880
201,614
8,431,383
9,536,057
1,378,240
1,128,204
Creditors: amounts falling due within one year
18
(3,734,834)
(4,782,552)
(2,673,843)
(2,342,214)
Net current assets/(liabilities)
4,696,549
4,753,505
(1,295,603)
(1,214,010)
Total assets less current liabilities
10,628,417
10,553,129
3,872,963
3,681,544
Creditors: amounts falling due after more than one year
19
(2,560,581)
(2,801,615)
(2,073,091)
(2,181,893)
Provisions for liabilities
Deferred tax liability
22
(221,695)
(139,108)
(156,770)
(83,501)
Net assets
7,846,141
7,612,406
1,643,102
1,416,150
Capital and reserves
Called up share capital
24
30
30
30
30
Capital redemption reserve
370
370
-
0
-
0
Profit and loss reserves
25
7,864,707
7,513,864
1,643,072
1,416,120
Equity attributable to owners of the parent company
7,865,107
7,514,264
1,643,102
1,416,150
Non-controlling interests
(18,966)
98,142
-
-
7,846,141
7,612,406
1,643,102
1,416,150

As permitted by s408 Companies Act 2006, the c ompany has not presented its own profit and loss account and related notes. The c ompany’s profit for the year was £256,953 (2024 - £213,026 profit).

M P BROS HOLDINGS LIMITED
GROUP AND COMPANY BALANCE SHEETS (CONTINUED)
AS AT
31 MAY 2025
31 May 2025
- 12 -
The financial statements were approved and signed by the director and authorised for issue on 9 March 2026
Mr S Rabadiya
Director
Company Registration No. 07051457
M P BROS HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2025
- 13 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 June 2023
30
370
7,366,367
7,366,767
35,088
7,401,855
Year ended 31 May 2024:
Profit and total comprehensive income for the year
-
-
177,497
177,497
63,054
240,551
Dividends
11
-
-
(30,000)
(30,000)
-
(30,000)
Balance at 31 May 2024
30
370
7,513,864
7,514,264
98,142
7,612,406
Year ended 31 May 2025:
Profit and total comprehensive income for the year
-
-
254,716
254,716
9,019
263,735
Dividends
11
-
-
(30,000)
(30,000)
-
(30,000)
Balance at 31 May 2025
30
370
7,738,580
7,738,980
107,161
7,846,141
M P BROS HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2025
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2023
30
1,233,093
1,233,123
Year ended 31 May 2024:
Profit and total comprehensive income for the year
-
213,027
213,027
Dividends
11
-
(30,000)
(30,000)
Balance at 31 May 2024
30
1,416,120
1,416,150
Year ended 31 May 2025:
Profit and total comprehensive income
-
256,952
256,952
Dividends
11
-
(30,000)
(30,000)
Balance at 31 May 2025
30
1,643,072
1,643,102
M P BROS HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2025
- 15 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
869,105
967,656
Interest paid
(245,947)
(263,486)
Income taxes (paid)/refunded
(37,441)
48,089
Net cash inflow from operating activities
585,717
752,259
Investing activities
Purchase of tangible fixed assets
(28,988)
(86,604)
Proceeds from disposal of tangible fixed assets
-
2,173
Interest received
-
0
147
Net cash used in investing activities
(28,988)
(84,284)
Financing activities
Repayment of borrowings
-
(678,272)
Repayment of bank loans
(204,578)
(186,014)
Payment of finance leases obligations
(2,342)
(2,342)
Dividends paid to equity shareholders
(30,000)
(30,000)
Net cash used in financing activities
(236,920)
(896,628)
Net increase/(decrease) in cash and cash equivalents
319,809
(228,653)
Cash and cash equivalents at beginning of year
7,634
236,287
Cash and cash equivalents at end of year
327,443
7,634
Relating to:
Cash at bank and in hand
388,526
250,252
Bank overdrafts included in creditors payable within one year
(61,083)
(242,618)
M P BROS HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2025
- 16 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
439,689
300,132
Interest paid
(169,532)
(181,398)
Income taxes refunded
-
0
40,649
Net cash inflow from operating activities
270,157
159,383
Financing activities
Repayment of bank loans
(91,891)
(82,085)
Dividends paid to equity shareholders
(30,000)
(30,000)
Net cash used in financing activities
(121,891)
(112,085)
Net increase in cash and cash equivalents
148,266
47,298
Cash and cash equivalents at beginning of year
201,614
154,316
Cash and cash equivalents at end of year
349,880
201,614
M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2025
- 17 -
1
Accounting policies
Company information

M P Bros Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 198-206 Acton Lane, Park Royal, London NW10 7NH.

The group consists of M P Bros Holdings Limited and all of its subsidiaries.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company M P Bros Holdings 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 May 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 g roup.

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.

1.3
Going concern

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

M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 18 -
1.4
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.

Rental income

Rental income is recognised at the fair value of the consideration received or receivable excluding value added taxes.

1.5
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.

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:

Freehold buildings (excl. land)
straight line over 50 years
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 recognised in the profit and loss account.

1.6
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value a t the reporting end date. Changes in fair value are recognised in profit or loss.

M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 19 -

Depreciation is not provided in respect of investment properties. This policy represents a departure from the Companies Act 2006 which requires depreciation to be provided on all fixed assets. The director considers that this policy is necessary in order that the financial statements may give a true and fair view because current values and changes in current values are of prime importance rather than the calculation of systematic depreciation.

1.7
Fixed asset investments

Equity in vest ments 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.

I n 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.

1.8
Impairment of fixed assets

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.

1.9
Stocks

Stocks and work in progress 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.

1.10
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.

1.11
Financial instruments

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.

M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 20 -
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 m ethod 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.

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 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.

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 group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

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.

1.13
Taxation

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

M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
1
Accounting policies
(Continued)
- 21 -
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 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

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.

1.14
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.

1.15
Retirement benefits

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

1.16
Leases

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 lease d asset are consumed.

1.17

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.

M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 22 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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 group is able to recognise on its construction contracts in a specific period, the group 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

An analysis of the group's turnover is as follows:

2025
2024
£
£
Turnover analysed by class of business
Construction services
16,939,766
20,668,781
Support services
-
65,536
Rental income
199,626
216,400
17,139,392
20,950,717

All revenue in the year and comparative year arose in the UK.

4
Exceptional item
2025
2024
£
£
Expenditure
Impairment of debtor balances
1,002,049
913,010
M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 23 -
5
Operating profit
2025
2024
£
£
Operating profit for the year is stated after charging/(crediting):
Fees payable to the group's auditor for the audit of the group's financial statements
54,650
52,175
Depreciation of owned tangible fixed assets
58,198
66,985
Profit on disposal of tangible fixed assets
-
(1,394)
Operating lease charges
145,000
141,750
6
Employees

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

Group
Company
2025
2024
2025
2024
Number
Number
Number
Number
Production staff
29
34
-
-
Administrative staff
6
6
1
1
Total
35
40
1
1

Their aggregate remuneration comprised:

Group
Company
2025
2024
2025
2024
£
£
£
£
Wages and salaries
1,131,632
1,337,676
-
0
-
0
Social security costs
126,787
142,438
-
-
Pension costs
17,679
20,871
-
0
-
0
1,276,098
1,500,985
-
0
-
0
7
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
M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 24 -
8
Interest receivable and similar income
2025
2024
£
£
Interest income
Other interest income
-
147
9
Interest payable and similar expenses
2025
2024
£
£
Interest on bank overdrafts and loans
245,030
262,569
Other finance costs:
Interest on finance leases and hire purchase contracts
917
917
Total finance costs
245,947
263,486
10
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
209,819
92,563
Adjustments in respect of prior periods
(55,000)
(109,255)
Total current tax
154,819
(16,692)
Deferred tax
Origination and reversal of timing differences
82,587
35,236
Total tax charge
237,406
18,544
M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
10
Taxation
(Continued)
- 25 -

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
501,141
259,095
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
125,285
64,774
Tax effect of expenses that are not deductible in determining taxable profit
164,153
233,126
Tax effect of income not taxable in determining taxable profit
(74,039)
(15,865)
Tax effect of utilisation of tax losses not previously recognised
-
0
(5,640)
Unutilised tax losses carried forward
-
0
48,119
Adjustments in respect of prior years
-
0
(43,593)
Group relief
-
0
(62,288)
Permanent capital allowances in excess of depreciation
(1,085)
(19,271)
Research and development tax credit
-
0
(147,549)
Under/(over) provided in prior years
(55,000)
(54,993)
Deferred tax on fair value adjustment
74,039
24,930
Deferred tax on timing differences
9,940
340
Other
(5,887)
(3,546)
Taxation charge
237,406
18,544
11
Dividends
2025
2024
Recognised as distributions to equity holders:
£
£
Final paid
30,000
30,000
M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 26 -
12
Tangible fixed assets
Group
Freehold buildings (excl. land)
Plant and machinery
Office and computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 June 2024
385,368
545,770
37,467
232,905
1,201,510
Additions
-
0
-
0
1,498
27,490
28,988
At 31 May 2025
385,368
545,770
38,965
260,395
1,230,498
Depreciation and impairment
At 1 June 2024
14,901
458,401
27,364
98,228
598,894
Depreciation charged in the year
2,481
21,842
2,900
30,975
58,198
At 31 May 2025
17,382
480,243
30,264
129,203
657,092
Carrying amount
At 31 May 2025
367,986
65,527
8,701
131,192
573,406
At 31 May 2024
370,467
87,369
10,103
134,677
602,616
Company
Freehold buildings (excl. land)
Plant and machinery
Total
£
£
£
Cost
At 1 June 2024 and 31 May 2025
385,368
348,261
733,629
Depreciation and impairment
At 1 June 2024
14,901
265,617
280,518
Depreciation charged in the year
2,481
20,661
23,142
At 31 May 2025
17,382
286,278
303,660
Carrying amount
At 31 May 2025
367,986
61,983
429,969
At 31 May 2024
370,467
82,644
453,111

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2025
2024
2025
2024
£
£
£
£
Motor vehicles
6,829
9,105
-
0
-
0

The company's bank loan is secured by a first legal charge over it's freehold property. Also see Note 20.

M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
12
Tangible fixed assets
(Continued)
- 27 -

Included within freehold land and buildings, owned by the company, is land £261,314 (20 24: £261,314) which is not depreciated. Freehold land and buildings with a carrying value of £367,986 (20 24: £370,467) is pledged as security for the bank loan.

13
Investment property
Group
Company
2025
2025
£
£
Fair value
At 1 June 2024
5,062,308
4,442,308
Net gains or losses through fair value adjustments
296,154
296,154
At 31 May 2025
5,358,462
4,738,462

Investment property comprises freehold land and buildings. The fair value of the investment property has been arrived at on the basis of a valuation as at 31 May 2025 carried out by a qualified surveyor in January 2026.

The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties included in desktop valuations on the respective properties as at 31 May 2025. Formal valuations were carried out by qualified surveyors in March 2024 and September 2025.

If investment properties were stated on a historical cost basis rather than a fair value basis, the amounts would have been included as £4,392,397 (2024: £4,392,397).

The company's bank loan is secured by a first legal charge over it's freehold property.

14
Fixed asset investments
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
135
135
Other investments
-
0
134,700
-
0
-
0
-
0
134,700
135
135

Other i nvestments represent s an interest of 10% in a joint controlling entity, Tenterden Developments LLP.

M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
14
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Group
Other investments
£
Cost or valuation
At 1 June 2024
134,700
Impairment
(134,700)
At 31 May 2025
-
Carrying amount
At 31 May 2025
-
At 31 May 2024
134,700
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 1 June 2024 and 31 May 2025
135
Carrying amount
At 31 May 2025
135
At 31 May 2024
135
15
Subsidiaries

Details of the company's subsidiaries at 31 May 2025 which have been included in the consolidated accounts are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
M.P. Brothers Ltd
198-206Acton Lane, London NW10 7NH
Construction
Ordinary
100.00
0
MPB Joinery Ltd
As above
Joinery
Ordinary
75.00
0
MPB Property Ltd
As above
Property investment and development
Ordinary
100.00
0

The investment in subsidiaries are all stated at cost.

MPB Property Limited and MPB Joinery Limited are exempt from the requirements of the Act relating to the audit of individual accounts under section 479A of Companies Act 2006. M P Bros Holdings Limited has provided a parent guarantee under section 479C to guarantee the liabilities of the subsidiaries.

M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 29 -
16
Stocks
Group
Company
2025
2024
2025
2024
£
£
£
£
Raw materials and consumables
18,429
128,804
-
-
Work in progress
429,000
79,407
-
-
447,429
208,211
-
-
17
Debtors
Group
Company
2025
2024
2025
2024
Amounts falling due within one year:
£
£
£
£
Trade debtors
678,741
1,649,616
328,853
362,517
Gross amounts owed by contract customers
6,045,694
6,058,043
-
0
-
0
Amounts owed by group undertakings
-
-
681,917
561,951
Other debtors
735,700
1,117,708
-
0
-
0
Prepayments and accrued income
135,293
252,227
17,590
2,122
7,595,428
9,077,594
1,028,360
926,590

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

18
Creditors: amounts falling due within one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans and overdrafts
20
285,211
440,385
106,731
89,820
Obligations under finance leases
21
10,095
2,342
-
0
-
0
Trade creditors
1,303,808
2,128,563
23,832
-
0
Amounts owed to group undertakings
-
0
-
0
2,070,111
1,793,216
Corporation tax payable
209,941
92,563
13,011
-
0
Other taxation and social security
412,324
199,888
-
-
Other creditors
825,796
943,635
337,970
307,970
Accruals and deferred income
687,659
975,176
122,188
151,208
3,734,834
4,782,552
2,673,843
2,342,214

Amounts due to group undertakings are unsecured, interest free and repayable on demand.

M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 30 -
19
Creditors: amounts falling due after more than one year
Group
Company
2025
2024
2025
2024
Notes
£
£
£
£
Bank loans and overdrafts
20
2,560,581
2,791,520
2,073,091
2,181,893
Obligations under finance leases
21
-
0
10,095
-
0
-
0
2,560,581
2,801,615
2,073,091
2,181,893

The bank loan is repayable in monthly instalments plus a final instalment payable on maturity of the loan in June 2023. Interest is charged at Bank of England Base Rate + 2.7%.

Amounts included above which fall due after five years are as follows:
Payable by instalments
656,942
664,232
656,942
664,232
Payable other than by instalments
907,359
910,566
907,359
910,566
1,564,301
1,574,798
1,564,301
1,574,798
20
Loans and overdrafts
Group
Company
2025
2024
2025
2024
£
£
£
£
Bank loans
2,784,709
2,989,287
2,179,822
2,271,713
Bank overdrafts
61,083
242,618
-
0
-
0
2,845,792
3,231,905
2,179,822
2,271,713
Payable within one year
285,211
440,385
106,731
89,820
Payable after one year
2,560,581
2,791,520
2,073,091
2,181,893

The company's bank loan is secured by a first legal charge over it's freehold property. The company also has a cross guarantee from M.P. Brothers Ltd and MPB Joinery Ltd (subsidiary companies) in respect of the obligations to the ban k.

Other loans are secured by the personal guarantee of the director.

M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 31 -
21
Finance lease obligations
Group
Company
2025
2024
2025
2024
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
10,095
2,342
-
0
-
0
In two to five years
-
0
10,095
-
0
-
0
10,095
12,437
-
-

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 three years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2025
2024
Group
£
£
Accelerated capital allowances
107,457
(18,832)
Revaluations
114,238
157,940
221,695
139,108
Liabilities
Liabilities
2025
2024
Company
£
£
Accelerated capital allowances
82,732
(34,239)
Revaluations
74,038
117,740
156,770
83,501
Group
Company
2025
2025
Movements in the year:
£
£
Liability at 1 June 2024
139,108
83,501
Charge to profit or loss
82,587
73,269
Liability at 31 May 2025
221,695
156,770
M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 32 -
23
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
17,679
20,871

The group 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 group. The group contributes a specified percentage of payroll costs to the retirement benefit scheme to fund the benefits. The only obligation of the group with respect to the scheme is to make the specified contributions.

24
Share capital
Group and company
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
3,000
3,000
30
30

The company has one class of ordinary share which carry no right to fixed income.

25
Profit and loss reserves

The profit and loss reserves contain £5 75,336 of non-distributable profits. This comprises the effect of the fair value adjustment on investment properties of £767,114 and the subsequent adjustment for deferred tax on the fair value gain of £191,778 accounted for through the statement of income and retained earnings in the current and prior years.

26
Financial commitments, guarantees and contingent liabilities

There are guarantee bonds in respect of the performance of M.P. Brothers Limited, a wholly owned subsidiary, issued in the normal course of business, amounting to £2,366,244 (2024: £2,366,244).

The bank loan is secured by a first debenture over all of the assets of the company. A cross company guarantee from M.P. Brothers Limited and MPB Joinery Limited over all of their respective company assets and liabilities has also been provided. A joint and several personal guarantee from the shareholders, limited to £2,300,000 has also been provided.

M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 33 -
27
Operating lease commitments
Lessee
Lessor

The operating leases represent leases to third parties and group companies. The leases are negotiated over terms of 2 to 5 years and rentals are fixed for the lease term. There is no option in place for either party to extend the lease terms.

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Group
Company
2025
2024
2025
2024
£
£
£
£
Within one year
461,500
450,000
461,500
450,000
Between two and five years
1,108,792
1,344,596
1,108,792
1,344,596
1,570,292
1,794,596
1,570,292
1,794,596
28
Related party transactions
Transactions with related parties

The Group 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 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, rent of £158,000 (2024: £158,000) was charged to MPB Joinery Limited, a subsidiary company. At the year end, the company was owed £681,917 (2024: £561,951) by MPB Joinery Limited.

29
Directors' transactions

Dividends totalling £30,000 (2024 - £30,000) were paid in the year in respect of shares held by the company's director and his spouse.

30
Ultimate controlling party

The ultimate controlling party of the group is Mr S Rabadiya.

M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 34 -
31
Cash generated from group operations
2025
2024
£
£
Profit for the year after tax
263,735
240,551
Adjustments for:
Taxation charged
237,406
18,544
Finance costs
245,947
263,486
Investment income
-
0
(147)
Gain on disposal of tangible fixed assets
-
(1,394)
Fair value gain on investment properties
(296,154)
(103,462)
Depreciation and impairment of tangible fixed assets
58,198
66,985
Other gains and losses
134,700
-
Movements in working capital:
(Increase)/decrease in stocks
(239,218)
322,311
Decrease/(increase) in debtors
1,482,166
(491,006)
(Decrease)/increase in creditors
(1,017,675)
776,871
Decrease in deferred income
-
(125,083)
Cash generated from operations
869,105
967,656
32
Cash generated from operations - company
2025
2024
£
£
Profit for the year after tax
256,952
213,027
Adjustments for:
Taxation charged/(credited)
86,280
(18,663)
Finance costs
169,532
181,398
Fair value gain on investment properties
(296,154)
(63,462)
Depreciation and impairment of tangible fixed assets
23,142
30,029
Movements in working capital:
Increase in debtors
(101,770)
(109,081)
Increase in creditors
301,707
191,967
Decrease in deferred income
-
(125,083)
Cash generated from operations
439,689
300,132
M P BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2025
- 35 -
33
Analysis of changes in net debt - group
2025
£
Opening net funds/(debt)
Cash and cash equivalents
7,634
Loans
(2,989,287)
Obligations under finance leases
(12,437)
(2,994,090)
Changes in net debt arising from:
Cash flows of the entity
526,729
Closing net funds/(debt) as analysed below
(2,467,361)
Closing net funds/(debt)
Cash and cash equivalents
327,443
Loans
(2,784,709)
Obligations under finance leases
(10,095)
(2,467,361)
34
Analysis of changes in net debt - company
2025
£
Opening net funds/(debt)
Cash and cash equivalents
201,614
Loans
(2,271,713)
(2,070,099)
Changes in net debt arising from:
Cash flows of the entity
240,157
Closing net funds/(debt) as analysed below
(1,829,942)
Closing net funds/(debt)
Cash and cash equivalents
349,880
Loans
(2,179,822)
(1,829,942)
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