Caseware UK (AP4) 2022.0.179 2022.0.179 2022-12-312022-12-31truetrueConstruction of roads and motorways2022-01-01false363330truefalse 09508670 2022-01-01 2022-12-31 09508670 2021-01-01 2021-12-31 09508670 2022-12-31 09508670 2021-12-31 09508670 2021-01-01 09508670 c:Director1 2022-01-01 2022-12-31 09508670 c:Director2 2022-01-01 2022-12-31 09508670 c:Director3 2022-01-01 2022-12-31 09508670 c:RegisteredOffice 2022-01-01 2022-12-31 09508670 c:Agent1 2022-01-01 2022-12-31 09508670 d:CurrentFinancialInstruments 2022-12-31 09508670 d:CurrentFinancialInstruments 2021-12-31 09508670 d:Non-currentFinancialInstruments 2022-12-31 09508670 d:Non-currentFinancialInstruments 2021-12-31 09508670 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 09508670 d:CurrentFinancialInstruments d:WithinOneYear 2021-12-31 09508670 d:Non-currentFinancialInstruments d:AfterOneYear 2022-12-31 09508670 d:Non-currentFinancialInstruments d:AfterOneYear 2021-12-31 09508670 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2022-12-31 09508670 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2021-12-31 09508670 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2022-12-31 09508670 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2021-12-31 09508670 d:UKTax 2022-01-01 2022-12-31 09508670 d:UKTax 2021-01-01 2021-12-31 09508670 d:ShareCapital 2022-12-31 09508670 d:ShareCapital 2021-12-31 09508670 d:ShareCapital 2021-01-01 09508670 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 09508670 d:RetainedEarningsAccumulatedLosses 2022-12-31 09508670 d:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 09508670 d:RetainedEarningsAccumulatedLosses 2021-12-31 09508670 d:RetainedEarningsAccumulatedLosses 2021-01-01 09508670 c:OrdinaryShareClass1 2022-01-01 2022-12-31 09508670 c:OrdinaryShareClass1 2022-12-31 09508670 c:OrdinaryShareClass1 2021-12-31 09508670 c:OrdinaryShareClass2 2022-01-01 2022-12-31 09508670 c:OrdinaryShareClass2 2022-12-31 09508670 c:OrdinaryShareClass2 2021-12-31 09508670 c:OrdinaryShareClass3 2022-01-01 2022-12-31 09508670 c:OrdinaryShareClass3 2022-12-31 09508670 c:OrdinaryShareClass3 2021-12-31 09508670 c:OrdinaryShareClass4 2022-01-01 2022-12-31 09508670 c:OrdinaryShareClass4 2022-12-31 09508670 c:OrdinaryShareClass4 2021-12-31 09508670 c:OrdinaryShareClass5 2022-01-01 2022-12-31 09508670 c:OrdinaryShareClass5 2022-12-31 09508670 c:OrdinaryShareClass5 2021-12-31 09508670 c:FRS102 2022-01-01 2022-12-31 09508670 c:Audited 2022-01-01 2022-12-31 09508670 c:FullAccounts 2022-01-01 2022-12-31 09508670 c:PrivateLimitedCompanyLtd 2022-01-01 2022-12-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 09508670









MARLBOROUGH MCDONALD LTD









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

 
MARLBOROUGH MCDONALD LTD
 
 
COMPANY INFORMATION


Directors
M J Revell 
J A Revell 
W D Blostone 




Registered number
09508670



Registered office
Woolf House
15 Regiment Business Park

Eagle Way, Little Waltham

Chelmsford

Essex

CM3 3FY




Independent auditors
Barnes Roffe LLP
Chartered Accountants & Statutory Auditors

1st Floor

73-81 Southwark Bridge Road

London

SE1 0NQ




Bankers
National Westminster Bank Plc
403 Bethnal Green Road

London

E2 0AF





 
MARLBOROUGH MCDONALD LTD
 

CONTENTS



Page
Strategic Report
 
1
Directors' Report
 
2 - 4
Independent Auditors' Report
 
5 - 8
Statement of Comprehensive Income
 
9
Balance Sheet
 
10
Statement of Changes in Equity
 
11
Notes to the Financial Statements
 
12 - 19


 
MARLBOROUGH MCDONALD LTD
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

Introduction
 
The directors present their strategic report for the year ended 31 December 2022.

Principal activities and review of business
 
The principal activity of the company in the period under review was that of providing labour services to group companies within the civil engineering industry.
The company has achieved an increase in turnover from £16.85m to £20.73m, however pre tax profit decreased from £1.19m to £0.32m. Net assets decreased from £45k to £8k.
Marlborough McDonald Limited provides services to Marlborough Highways Limited in connection with contracts with several London boroughs as well as local authority council in the South East. 

Principal risks and uncertainties
 
The principal risk and uncertainty is the economic climate which has affected budgets available to local authorities.

Financial risk
 
The company uses various financial instruments to measure and monitor performance which include cash, trade debtors, amounts recoverable on contracts and trade creditors that arise directly from its operations. The main purpose of these financial metrics are to optimise finance for the company's operations. The existence of financial challenges, which are monitored by management, exposes the company to a number of financial risks, which are described in more detail below.
Marlborough McDonald Limited only trades as an internal supply chain partner to Marlborough Highways Limited and is therefore dependent on that business for its work.
Credit risk
The company's principal financial assets are cash, trade debtors and amounts recoverable on contracts. The associated credit risk is limited as the company's clients are group companies.
In order to manage credit risk, the financial controller and directors regularly review the debtors position and the finance department works to formalise procedures for dealing with customers.
Liquidity risk
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash in assets both safely and profitably. 
The company's policy throughout the year has been to achieve this objective through senior management's dayto-day involvement in business decisions rather than through setting maximum or minimum liquidity ratios.


This report was approved by the board on 29 September 2023 and signed on its behalf.



M J Revell
Director

Page 1

 
MARLBOROUGH MCDONALD LTD
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

The directors present their report and the financial statements for the year ended 31 December 2022.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

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

Results and dividends

The profit for the year, after taxation, amounted to £263,641 (2021 - £954,151).

Directors

The directors who served during the year were:

M J Revell 
J A Revell 
W D Blostone 

Page 2

 
MARLBOROUGH MCDONALD LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Engagement with employees

Our vision is ‘to be the people that people want to work with’, and we know that to achieve this vision effective employee communication and engagement is vital. It also has a direct link to improving organisational culture and productivity.  We ensure all our employees have a voice within the company through several different forums, systems, and actions.  Our in-house system/app ‘Quest’ provides regular news stories to all employees. It includes updates on company performance, details and feedback on work completed across our contracts, provides health and safety alerts and general employee comms. The system/app is accessible to all employees via a desktop or a mobile device allowing those employees working on the road easy access to stay connected.  The executive board treat all employee feedback with respect and importance and take actions to ensure employees feel listened to and involved.  We do this in several ways including employee surveys with employee involvement in actions and follow-up, our performance management processes, employee forums attended by the MD, monthly supervisor briefings and whole company away days. Some examples of a recent projects where employees have had the opportunity to be involved before decisions are taken is the review and refresh of our company values.  Employees were given the opportunity to feedback through a survey and/or a focus group to help shape our final values.  In developing our employee benefits, employees were able to provide feedback on the make-up of our health care cash back plan before it was introduced. 
Our MD provides 6-monthly companywide updates on the financial performance of the business, along with plans for future growth, key projects and general updates impacting on employees.  These updates provide everyone with a good understanding on the overall company performance, whatever their role in the business. We have a robust performance management process in place across the business, which encourages good conversations about individual performance and development to drive continuous improvement.  There are plans this year to embed this further through aligning our strategic business objectives to individual performance objectives and measures.

Disabled employees

It is our policy to promote working lives that are free from discrimination, harassment and victimisation. We have an active equal opportunities policy from recruitment and selection, through training, development, performance management and promotion for all employees, including those with a disability.
Employees are recruited solely on the basis of work criteria and the applicant’s abilities and individual merit.  Reasonable adjustments to the recruitment process are made as required to ensure that no applicant is disadvantaged because of a disability.
We are fully committed to ensuring that we are responsive to the changing needs of our employees. Should any employee become disabled during their employment with us, we will actively retrain them and make reasonable adjustments, where possible, in order for them to remain within our employment.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Page 3

 
MARLBOROUGH MCDONALD LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Auditors

The auditorsBarnes Roffe LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 29 September 2023 and signed on its behalf.
 





M J Revell
Director

Page 4

 
MARLBOROUGH MCDONALD LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARLBOROUGH MCDONALD LTD
 

Opinion


We have audited the financial statements of Marlborough McDonald Ltd (the 'Company') for the year ended 31 December 2022, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 December 2022 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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


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


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


Page 5

 
MARLBOROUGH MCDONALD LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARLBOROUGH MCDONALD LTD (CONTINUED)


Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

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


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 directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
MARLBOROUGH MCDONALD LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARLBOROUGH MCDONALD LTD (CONTINUED)


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


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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities,
including fraud and non-compliance with law and regulations, was as follows:
• The engagement partner ensured that the engagement team collectively had the appropriate
competence, 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 discussion with directors and
other management, and from our commercial knowledge and experience of the relevant sector;
• The specific laws and regulations which we considered may have a direct material effect on the financial
statements or the operations of the company, are as follows;
o Companies Act 2006.
o FRS102.
o ISO standards.
o Health and Safety legislation.
o Employment legislation
o Tax legislation
o ISO 9001
• We assessed the extent of compliance with the laws and regulations identified above through making
enquiries of management, reviewing board minutes and inspecting legal correspondence
• Laws and regulations were communicated within the audit team at the planning meeting, and during the
audit as any further laws and regulation were identified. The audit team remained alert to instances of non
compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including
obtaining an understanding of how fraud might occur by:
• Making enquires of management as to where they consider there was susceptibility to fraud and their
knowledge of actual suspected and alleged fraud;
• Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and
regulations;
• Reviewing the financial statements and testing the disclosures against supporting documentation;
• Performing analytical procedures to identify any unusual or unexpected trends or anomalies;
• Inspecting and testing journal entries to identify unusual or unexpected transactions;
• Assessing whether judgement and assumptions made in determining significant accounting estimates,
including stock provisions, were indicative of management bias; and
• Investigating the rationale behind significant transactions, or transactions that are unusual or outside the
company's usual course of business.
The areas that we identified as being susceptible to misstatement through fraud were:
• Management bias in the estimates and judgements made;
• Management override of controls; and
• Posting of unusual journals or transactions
 
Page 7

 
MARLBOROUGH MCDONALD LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARLBOROUGH MCDONALD LTD (CONTINUED)


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including
those leading to a material misstatement in the financial statements or non-compliance with regulation. This
risk increases the more that compliance with a law or regulation is removed from the events and transactions
reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves
intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Duncan Stannett (Senior Statutory Auditor)
for and on behalf of
Barnes Roffe LLP
Chartered Accountants & Statutory Auditors
1st Floor
73-81 Southwark Bridge Road
London
SE1 0NQ

29 September 2023
Page 8

 
MARLBOROUGH MCDONALD LTD
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
Note
£
£

  

Turnover
 3 
20,728,195
16,848,696

Cost of sales
  
(13,028,211)
(10,563,419)

Gross profit
  
7,699,984
6,285,277

Administrative expenses
  
(7,383,663)
(5,207,638)

Other operating income
 4 
-
110,616

Operating profit
  
316,321
1,188,255

Interest payable and similar expenses
 7 
(1,021)
(109)

Profit before tax
  
315,300
1,188,146

Tax on profit
 8 
(51,659)
(233,995)

Profit for the financial year
  
263,641
954,151

There were no recognised gains and losses for 2022 or 2021 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2022 (2021:£NIL).

The notes on pages 12 to 19 form part of these financial statements.

Page 9

 
MARLBOROUGH MCDONALD LTD
REGISTERED NUMBER: 09508670

BALANCE SHEET
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

  

Current assets
  

Debtors: amounts falling due within one year
 9 
2,612,752
2,880,600

Cash at bank and in hand
 10 
173,536
91,656

  
2,786,288
2,972,256

Creditors: amounts falling due within one year
 11 
(915,127)
(958,120)

Net current assets
  
 
 
1,871,161
 
 
2,014,136

Total assets less current liabilities
  
1,871,161
2,014,136

Creditors: amounts falling due after more than one year
 12 
(1,862,999)
(1,969,615)

  

Net assets
  
8,162
44,521


Capital and reserves
  

Called up share capital 
 14 
2,000
2,000

Profit and loss account
  
6,162
42,521

  
8,162
44,521


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 September 2023.




M J Revell
Director

The notes on pages 12 to 19 form part of these financial statements.

Page 10

 
MARLBOROUGH MCDONALD LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2022
2,000
42,521
44,521



Profit for the year
-
263,641
263,641

Dividends
-
(300,000)
(300,000)


At 31 December 2022
2,000
6,162
8,162



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2021
2,000
51,169
53,169



Profit for the year
-
954,151
954,151

Dividends: Equity capital
-
(962,799)
(962,799)


At 31 December 2021
2,000
42,521
44,521


The notes on pages 12 to 19 form part of these financial statements.

Page 11

 
MARLBOROUGH MCDONALD LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

Marlborough McDonald Ltd is a private company limited by shares and incorporated in England and
Wales. The address of the registered office is Woolf House, 15 Regiment Business Park, Eagle Way,
Little Waltham, Chelmsford, CM3 3FY. The company's principal activity continues to be that of providing
labour services to group companies within the civil engineering industry.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).

This information is included in the consolidated financial statements of Marlborough Highways Group Limited as at 31 December 2022 and these financial statements may be obtained from Companies House.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 12

 
MARLBOROUGH MCDONALD LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.4

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

 
2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.6

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.8

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

 
2.9

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 13

 
MARLBOROUGH MCDONALD LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.11

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.12

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

 
2.13

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Turnover

The whole of the turnover is attributable to the main course of business.

All turnover arose within the United Kingdom.


4.


Other operating income

2022
2021
£
£

Government grants receivable - CJRS
-
110,616

-
110,616


Page 14

 
MARLBOROUGH MCDONALD LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

5.


Employees

Staff costs, including directors' remuneration, were as follows:


2022
2021
£
£

Wages and salaries
17,658,961
13,680,573

Social security costs
2,113,470
1,536,863

Cost of defined contribution scheme
618,909
524,295

20,391,340
15,741,731


The average monthly number of employees, including directors, during the year was 363 (2021 - 330).


6.


Directors' remuneration

2022
2021
£
£

Directors' emoluments
843,591
392,841

Company contributions to defined contribution pension schemes
24,888
77,600

868,479
470,441


The highest paid director received remuneration of £401,286 (2021 - £265,804).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £11,565 (2021 - £77,600).


7.


Interest payable and similar expenses

2022
2021
£
£


Other interest payable
1,021
109

1,021
109

Page 15

 
MARLBOROUGH MCDONALD LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

8.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
51,659
233,995


Total current tax
51,659
233,995

Factors affecting tax charge for the year

There were no factors that affected the tax charge for the year which has been calculated on the profits on ordinary activities before tax at the standard rate of corporation tax in the UK of  19% (2021 - 19%).



Factors that may affect future tax charges

The UK corporate tax rate is increasing from 19% to 25% (effective 1 April 2023). The increase will therefore increase future tax charges accordingly.


9.


Debtors

2022
2021
£
£


Amounts owed by group undertakings
2,192,594
2,593,140

Other debtors
420,158
287,460

2,612,752
2,880,600



10.


Cash and cash equivalents

2022
2021
£
£

Cash at bank and in hand
173,536
91,656

173,536
91,656


Page 16

 
MARLBOROUGH MCDONALD LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

11.


Creditors: Amounts falling due within one year

2022
2021
£
£

Bank loans
99,040
96,016

Trade creditors
-
3

Amounts owed to group undertakings
147,050
-

Corporation tax
12,600
131,941

Other taxation and social security
656,437
524,079

Other creditors
-
206,081

915,127
958,120


The following liabilities were secured:

2022
2021
£
£



Bank loan and overdrafts
1,962,039
2,065,631

1,962,039
2,065,631

Details of security provided:

Secured assets
The bank has a debenture including a fixed charge over all present freehold and leasehold property;
first fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and
future; and first floating charge over all assets and undertakings both present and future dated 13 June
2016.


12.


Creditors: Amounts falling due after more than one year

2022
2021
£
£

Bank loans
1,862,999
1,969,615

1,862,999
1,969,615


Page 17

 
MARLBOROUGH MCDONALD LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

13.


Loans


Analysis of the maturity of loans is given below:


2022
2021
£
£

Amounts falling due within one year

Bank loans
99,040
96,016

Amounts falling due 1-2 years

Bank loans
101,930
98,819

Amounts falling due 2-5 years

Bank loans
1,761,069
1,870,796


1,962,039
2,065,631



14.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



1,017 (2021 - 1,017) Ordinary A shares of £1.00 each
1,017
1,017
130 (2021 - 130) Ordinary B shares of £1.00 each
130
130
399 (2021 - 399) Ordinary C shares of £1.00 each
399
399
1 (2021 - 1) Ordinary D share of £1.00
1
1
399 (2021 - 399) Ordinary E shares of £1.00 each
399
399
1 (2021 - 1) Ordinary F share of £1.00
1
1
49 (2021 - 49) Ordinary G shares of £1.00 each
49
49
1 (2021 - 1) Ordinary H share of £1.00
1
1
1 (2021 - 1) Ordinary I share of £1.00
1
1
1 (2021 - 1) Ordinary J share of £1.00
1
1
1 (2021 - 1) Ordinary K share of £1.00
1
1

2,000

2,000



15.


Contingent liabilities

A guarantee exists in favour of the group's bankers to cover bank borrowings of certain companies. At 31 December 2022 the net potential exposure in respect of this guarantee was £4,462,039 (2021: £4,559,864). The figure is in respect of the gross borrowings and does not take into account the underlying assets of the respective group companies.

Page 18

 
MARLBOROUGH MCDONALD LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

16.


Pension commitments

The company operates defined contributions pension schemes. The assets of the schemes are held separately from those of the company in independently administered funds. The pension cost charge represents contributions payable by the company to the funds and amounted to £618,909 (2021: £524,295).


17.


Transactions with directors

Included within debtors due within one year are balances owed by directors amounting to £4,593       (2021: £128,500 Creditor).


18.


Related party transactions

In accordance with FRS 102 Section 33 the Company has taken advantage of the exemption from the disclosure of transactions with the other wholly owned members of the group. The Company’s results form part of the consolidated financial statements prepared by its ultimate parent, Marlborough Highways Group Limited. The consolidated financial statements can be obtained from the Company at Woolf House, 15 Regiment Business Park, Chelmsford, CM3 3FY.


19.


Controlling party

Marlborough Highways Group Limited is regarded by the directors as being the company's ultimate parent company with signifcant control.

 
Page 19