REGISTERED NUMBER: 11451719 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2023 |
FOR |
MCCONNELL GROUP LIMITED |
REGISTERED NUMBER: 11451719 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2023 |
FOR |
MCCONNELL GROUP LIMITED |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 18 |
MCCONNELL GROUP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 APRIL 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
37 Portland Road |
KILMARNOCK |
Ayrshire |
KA1 2DJ |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 APRIL 2023 |
The directors present their strategic report of the company and the group for the year ended 30 April 2023. |
PRINCIPAL ACTIVITIES |
The principal activity of the company is that of an investment holding company. The principal activity of the company's subsidiary are those of building & facility refurbishment and maintenance within the retail, commercial, residential, industrial and infrastructure sectors. |
REVIEW AND ANALYSIS OF THE BUSINESS |
We have delivered a solid year of growth in all aspects of the business. Revenue has increased from £25m (FY22) to £35m; Operating Profit from £1m (FY22) to £1.5m; and our year end cash position improved from £2.16m (FY22) to £3.97m. |
Significant value long-term contracts were secured during the year, and we go into FY24 with a strong order book and large addressable pipeline of opportunities. Our customer base has been broadened significantly, particularly in London and the Southeast of England. |
A major investment was made in our IT infrastructure with integration of new ERP software achieved in Q4, and continued major investment was made in progressively converting our fleet to EV and PHEV vehicles. |
Total capital investment was £1.1m. |
The Directors are very pleased with the overall performance of the group in FY23 and would again like to thank all employees, supply chain partners, advisors, and customers for their support, commitment, and loyalty. |
OPERATIONAL RISKS AND UNCERTAINTIES |
Operational Risk |
The key operational risk is the management of higher value projects. The risk is mitigated by our continued investment in the management team, recruiting capable managers with relevant experience; our certified quality control procedures; and targeting projects that are comfortably within our leadership and management skill set, focussing on our core business and not overly diversifying. |
Financial Risk |
The global economy is under strain and the UK continues to be affected by rising interest rates, high inflation, rising costs, and political and economic uncertainty. The construction industry is being affected by all these factors. |
McConnell continues to grow and strengthen without experiencing any material bad debt or credit encumbrances. We adopt a cautious approach to accounts provisioning, acknowledging the risks that exist within the construction sector. |
The principal financial risk to the business is credit based. The possibility of a customer experiencing solvency issues during a significant project is the main exposure the business faces. This risk has been mitigated by continued diligent credit risk analysis prior to contractual commitment. All significant projects with customers who are not government or publicly funded are credit risk assessed. Our customer base consists of government & publicly funded organisations, and blue chip private and infrastructure clients. |
Our liquidity risk is mitigated by daily cashflow monitoring. Senior management are provided with real-time cashflow projections to ensure that we have sufficient liquidity to meet all our commitments. An experienced Finance Director and capable Commercial team oversee cash management and commercial performance. During FY23 we reduced our CBILS loan by £170k to £510k, |
We negotiate contracts to share the risk of rising costs and protect McConnell from having to absorb unexpected cost increases where they are not within our control. We also negotiate contracts to remove unfair risks and we avoid customers that have unreasonable expectations in that regard. |
We believe McConnell is well placed to continue to effectively manage risk and capitalise on the opportunities that are materialising from increased funding entering the sectors that we operate in. We have a strong order book and opportunities pipeline for FY24 and look forward to another positive year in the development of the business. |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 APRIL 2023 |
ON BEHALF OF THE BOARD: |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 APRIL 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 30 April 2023. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 April 2023 will be £ 125,000 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 May 2022 to the date of this report. |
FINANCIAL INSTRUMENTS |
Interest rate risk |
The company manages its cash and borrowing requirements to minimise interest expenses whilst ensuring that it has sufficient liquid resources to meet the operating needs of the business. The company is exposed to increased interest costs should bank base rates increase. |
Credit risk |
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors' balances are monitored on an ongoing basis and provision is made for doubtful debts where necessary. |
The company's bank deposits are held by banks with high credit ratings assigned by international credit rating agencies. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 APRIL 2023 |
AUDITORS |
The auditors, Gilmour Hamilton, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MCCONNELL GROUP LIMITED |
Opinion |
We have audited the financial statements of McConnell Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 April 2023 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MCCONNELL GROUP LIMITED |
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
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 directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 group's and the 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 directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MCCONNELL GROUP LIMITED |
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 a Report of the Auditors 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. A summary of the procedures we designed and executed to detect irregularities, including fraud is set out below: |
- performing analytical procedures to identify unusual or unexpected relationships that may indicate |
risks of material misstatement due to fraud and tested accordingly; |
- reviewing correspondence with regulatory bodies, such as HMRC, and reviewing documentation |
for indications of non-compliance with laws and regulations; |
- determining whether the accounting policies, treatments and presentation adopted in the financial |
statements is in accordance with 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); |
- identifying whether there are instances of potential bias in areas with significant degrees of |
judgement such as amounts recoverable on contracts; |
- in addressing the risk of fraud through management override of controls, testing the appropriateness |
of journal entries and other adjustments; assessing whether the judgements made in making |
accounting estimates are indicative of a potential bias; and evaluating the business rationale of any |
significant transactions that are unusual or outside the normal course of business; |
- in addressing the risk of fraud in revenue recognition obtaining an understanding of the controls |
in place and where possible testing the operating effectiveness of those controls. Substantive tests |
were executed to supplement testing of controls; |
- vouching balances and reconciling items in management's key control account reconciliations to |
supporting documentation as at 30 April 2023; and |
- carrying out detailed testing, on a sample basis, of material transactions, financial statement |
categories and balances to appropriate documentary evidence to verify the completeness, |
occurrence and accuracy of the reported financial statements. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentation or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, or the greater the concealment of irregularities, including fraud, the less likely we are to become aware of it. |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MCCONNELL GROUP LIMITED |
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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
37 Portland Road |
KILMARNOCK |
Ayrshire |
KA1 2DJ |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 | 34,660,938 | 25,015,790 |
Other operating income | 28,569 | 17,457 |
34,689,507 | 25,033,247 |
Raw materials and consumables | 7,204,705 | 5,387,762 |
Other external expenses | 17,137,062 | 12,497,590 |
24,341,767 | 17,885,352 |
10,347,740 | 7,147,895 |
Staff costs | 4 | 6,767,929 | 4,926,159 |
Depreciation | 225,574 | 131,484 |
Other operating expenses | 1,862,554 | 1,077,756 |
8,856,057 | 6,135,399 |
OPERATING PROFIT | 5 | 1,491,683 | 1,012,496 |
Interest payable and similar expenses | 6 | 109,698 | 72,620 |
PROFIT BEFORE TAXATION | 1,381,985 | 939,876 |
Tax on profit | 7 | 220,728 | 116,430 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,161,257 | 823,446 |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 APRIL 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,161,257 | 823,446 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,161,257 |
823,446 |
Total comprehensive income attributable to: |
Owners of the parent | 1,161,257 | 823,446 |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
CONSOLIDATED BALANCE SHEET |
30 APRIL 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | - | 609 |
Tangible assets | 11 | 1,109,899 | 288,971 |
Investments | 12 | - | - |
1,109,899 | 289,580 |
CURRENT ASSETS |
Stocks | 13 | 10,000 | 10,000 |
Debtors | 14 | 7,850,165 | 6,654,034 |
Cash at bank and in hand | 3,970,903 | 2,164,909 |
11,831,068 | 8,828,943 |
CREDITORS |
Amounts falling due within one year | 15 | 9,053,385 | 5,795,071 |
NET CURRENT ASSETS | 2,777,683 | 3,033,872 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
3,887,582 |
3,323,452 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(959,228 |
) |
(1,619,617 |
) |
PROVISIONS FOR LIABILITIES | 21 | (227,868 | ) | (39,606 | ) |
NET ASSETS | 2,700,486 | 1,664,229 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 1,000 | 1,000 |
Capital redemption reserve | 23 | 200 | 200 |
Retained earnings | 23 | 2,699,286 | 1,663,029 |
SHAREHOLDERS' FUNDS | 2,700,486 | 1,664,229 |
The financial statements were approved by the Board of Directors and authorised for issue on 21 November 2023 and were signed on its behalf by: |
E McGarvey - Director |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
COMPANY BALANCE SHEET |
30 APRIL 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Capital redemption reserve | 23 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 96,306 | 111,928 |
The financial statements were approved by the Board of Directors and authorised for issue on |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 APRIL 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 May 2021 | 1,000 | 854,683 | - | 855,683 |
Changes in equity |
Increase in share capital | 200 | - | - | 200 |
Purchase of own shares | (200 | ) | (15,100 | ) | 200 | (15,100 | ) |
Total comprehensive income | - | 823,446 | - | 823,446 |
Balance at 30 April 2022 | 1,000 | 1,663,029 | 200 | 1,664,229 |
Changes in equity |
Dividends | - | (125,000 | ) | - | (125,000 | ) |
Total comprehensive income | - | 1,161,257 | - | 1,161,257 |
Balance at 30 April 2023 | 1,000 | 2,699,286 | 200 | 2,700,486 |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 APRIL 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 May 2021 |
Changes in equity |
Increase in share capital | 200 | - | - | 200 |
Purchase of own shares | (200 | ) | (15,100 | ) | 200 | (15,100 | ) |
Total comprehensive income | - |
Balance at 30 April 2022 | 1,000 | 370,201 | 371,401 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 30 April 2023 |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,504,250 | 526,184 |
Interest paid | (88,116 | ) | (63,047 | ) |
Interest element of hire purchase payments paid |
(21,582 |
) |
(9,573 |
) |
Tax paid | 92 | - |
Net cash from operating activities | 2,394,644 | 453,564 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (1,108,369 | ) | (161,811 | ) |
Sale of tangible fixed assets | 62,482 | 1,175 |
Net cash from investing activities | (1,045,887 | ) | (160,636 | ) |
Cash flows from financing activities |
Loan repayments | (170,000 | ) | (203,928 | ) |
New hire purchase agreements | 821,268 | 24,623 |
Hire purchase repayments in period | (169,031 | ) | (67,411 | ) |
Amount introduced by directors | 100,000 | - |
Share issue | - | 200 |
Purchase of own shares | - | (15,100 | ) |
Equity dividends paid | (125,000 | ) | - |
Net cash from financing activities | 457,237 | (261,616 | ) |
Increase in cash and cash equivalents | 1,805,994 | 31,312 |
Cash and cash equivalents at beginning of year |
2 |
2,164,909 |
2,133,597 |
Cash and cash equivalents at end of year |
2 |
3,970,903 |
2,164,909 |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 1,381,985 | 939,876 |
Depreciation charges | 262,006 | 131,392 |
(Profit)/loss on disposal of fixed assets | (36,439 | ) | 92 |
Finance costs | 109,698 | 72,620 |
1,717,250 | 1,143,980 |
Increase in trade and other debtors | (1,196,131 | ) | (2,894,655 | ) |
Increase in trade and other creditors | 1,983,131 | 2,276,859 |
Cash generated from operations | 2,504,250 | 526,184 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 April 2023 |
30.4.23 | 1.5.22 |
£ | £ |
Cash and cash equivalents | 3,970,903 | 2,164,909 |
Year ended 30 April 2022 |
30.4.22 | 1.5.21 |
£ | £ |
Cash and cash equivalents | 2,164,909 | 2,133,597 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.5.22 | Cash flow | At 30.4.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,164,909 | 1,805,994 | 3,970,903 |
2,164,909 | 1,805,994 | 3,970,903 |
Debt |
Finance leases | (93,193 | ) | (652,237 | ) | (745,430 | ) |
Debts falling due within 1 year | (170,000 | ) | (1,050,000 | ) | (1,220,000 | ) |
Debts falling due after 1 year | (1,560,000 | ) | 1,220,000 | (340,000 | ) |
(1,823,193 | ) | (482,237 | ) | (2,305,430 | ) |
Total | 341,716 | 1,323,757 | 1,665,473 |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2023 |
1. | STATUTORY INFORMATION |
McConnell Group Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared in pounds sterling, which is the functional currency of the group, rounded to the nearest pound. |
The significant accounting policies applied in the preparation of these financial statements are set out below: |
Basis of consolidation |
The consolidated financial statements incorporate the financial statements of the parent company, McConnell Group Limited and its 100% subsidiary Hugh L S McConnell Limited, and its subsidiaries. No members of the group have been excluded from consolidation. All inter-group balances, transactions, income and expenses are eliminated on consolidation. The consolidated accounts are prepared using uniform accounting policies. |
The consolidated financial statements incorporate the results of business combinations using the purchase method. The results of acquired subsidiaries are included in the consolidated statement of comprehensive income from the date that control is obtained. |
The cost of a business combination is measured at the aggregate of the fair value (at the date of exchange) of assets given, liabilities incurred or assumed and equity instruments issued by the group in exchange for control of the acquiree, plus costs attributable to the business combination. |
Any excess of the cost of the business over the group's share of the net fair value of the identifiable assets and liabilities is recognised as goodwill. |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2023 |
2. | ACCOUNTING POLICIES - continued |
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported as assets, liabilities, revenues and expenses for the year. The key sources of estimation uncertainty are as follows: |
Depreciation and amortisation of tangible and intangible fixed assets: |
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The expected lives of assets and their residual values are assessed regularly and may vary depending on a number of factors including asset life cycles, maintenance programmes etc. |
Impairment of assets |
Tangible fixed assets, intangible fixed assets, fixed asset investments, stock and debtors are all reviewed for evidence of impairment. |
In connection with fixed assets (tangible, intangible and investments) factors taken into consideration include the economic viability and the expected future financial performance of the assets. |
Trade debtors are reviewed for evidence of impairment. Factors considered include ageing, past recovery rates, customer creditworthiness, and the stage and expected outcome of any recovery proceedings. |
Contract accounting: |
When determining the amount to include as amounts recoverable on contracts and thereby the amount of profit to be recognised on individual contracts, factors such the stage of completion and forecasted outturn of the contract are taken into account |
Turnover |
Turnover is measured at the fair value of consideration received net of VAT. The policy adopted for the recognition of turnover is as follows: |
Construction contracts |
When the outcome of a construction contract can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to agreed valuations, current and projected contract costs and expected sales value. |
Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable. |
When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2023 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs on conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Financial instruments |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment of debtors are recognised in the income statement in administrative expenses. |
Cash on the balance sheet comprises cash in hand and cash at bank. |
Employee benefits |
When employees have rendered service to the company, short term benefits (including holiday pay) to which employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2023 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
Construction contracts | 34,660,938 | 25,015,790 |
34,660,938 | 25,015,790 |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 34,660,938 | 25,015,790 |
34,660,938 | 25,015,790 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 5,802,833 | 4,286,426 |
Social security costs | 656,855 | 479,976 |
Other pension costs | 308,241 | 159,757 |
6,767,929 | 4,926,159 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 5 | 2 |
Supervisory, sales and admin. | 70 | 50 |
Production | 46 | 37 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 343,133 | 264,866 |
Directors' pension contributions to money purchase schemes | 177,937 | 66,974 |
Compensation to director for loss of office | - | 30,000 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 4 | 5 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 166,923 | 94,531 |
Pension contributions to money purchase schemes | 12,973 | 21,000 |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
Key management personnel compensation for the group, including the directors' remuneration and contributions to money purchase schemes (above) totalled £646,448 (2022 £464,396). |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 1,404,381 | 840,553 |
Other operating leases | 181,777 | 130,071 |
Depreciation - owned assets | 106,104 | 54,496 |
Depreciation - assets on hire purchase contracts | 155,294 | 76,287 |
(Profit)/loss on disposal of fixed assets | (36,439 | ) | 92 |
Goodwill amortisation | 609 | 609 |
Auditors' remuneration | 29,243 | 14,000 |
Government grants | (12,449 | ) | (11,318 | ) |
Cost of stock recognised as an expense | 7,204,705 | 5,387,762 |
Impairment of debtors | 146,281 | 33,333 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | 27,445 | 21,109 |
Loan interest | 56,462 | 37,821 |
HMRC interest | 92 | - |
Loan arrangement costs | 4,117 | 4,117 |
Hire purchase | 21,582 | 9,573 |
109,698 | 72,620 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 115,771 | 89,108 |
Prior years | (83,306 | ) | - |
Total current tax | 32,465 | 89,108 |
Deferred tax: |
Origination and reversal of timing differences | 188,263 | 27,322 |
Tax on profit | 220,728 | 116,430 |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 1,381,985 | 939,876 |
Profit multiplied by the standard rate of corporation tax in the UK of 19.493 % (2022 - 19 %) |
269,390 |
178,576 |
Effects of: |
Expenses not deductible for tax purposes | 1,662 | 4,129 |
Depreciation in excess of capital allowances | 10,377 | 3,743 |
Utilisation of tax losses | - | (63,942 | ) |
Adjustments to tax charge in respect of previous periods | (83,306 | ) | - |
Amortisation of goodwill | 119 | 116 |
Other timing differences | 1,560 | (2,104 | ) |
Super deduction | (20,544 | ) | (8,128 | ) |
Change in tax rate | 41,470 | 4,040 |
Total tax charge | 220,728 | 116,430 |
Factors that may affect future tax charges |
The UK Corporation tax rate increased from 19% to 25% on 1 April 2023. The effective rate of corporation tax for the period is 19.493%. The increased rate will impact the group's future tax charge accordingly. The value of the deferred tax liability at the balance sheet date has been calculated using the applicable rate when the liability is expected to be realised. |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary A shares of 1 each |
Interim | 100,000 | - |
Ordinary B shares of 1 each |
Interim | 25,000 | - |
125,000 | - |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2023 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 May 2022 |
and 30 April 2023 | 3,045 |
AMORTISATION |
At 1 May 2022 | 2,436 |
Amortisation for year | 609 |
At 30 April 2023 | 3,045 |
NET BOOK VALUE |
At 30 April 2023 | - |
At 30 April 2022 | 609 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 May 2022 | 136,816 | 225,444 | 368,929 | 731,189 |
Additions | 32,614 | 150,198 | 925,557 | 1,108,369 |
Disposals | - | - | (115,106 | ) | (115,106 | ) |
At 30 April 2023 | 169,430 | 375,642 | 1,179,380 | 1,724,452 |
DEPRECIATION |
At 1 May 2022 | 103,020 | 95,675 | 243,523 | 442,218 |
Charge for year | 14,663 | 64,127 | 182,608 | 261,398 |
Eliminated on disposal | - | - | (89,063 | ) | (89,063 | ) |
At 30 April 2023 | 117,683 | 159,802 | 337,068 | 614,553 |
NET BOOK VALUE |
At 30 April 2023 | 51,747 | 215,840 | 842,312 | 1,109,899 |
At 30 April 2022 | 33,796 | 129,769 | 125,406 | 288,971 |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 May 2022 | 305,146 |
Additions | 821,267 |
Disposals | (70,373 | ) |
Transfer to ownership | (188,866 | ) |
At 30 April 2023 | 867,174 |
DEPRECIATION |
At 1 May 2022 | 191,109 |
Charge for year | 155,294 |
Eliminated on disposal | (44,330 | ) |
Transfer to ownership | (184,770 | ) |
At 30 April 2023 | 117,303 |
NET BOOK VALUE |
At 30 April 2023 | 749,871 |
At 30 April 2022 | 114,037 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 May 2022 |
and 30 April 2023 |
NET BOOK VALUE |
At 30 April 2023 |
At 30 April 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: United Kingdom |
Nature of business: |
% |
Class of shares: | holding |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
McDonald Davis Limited |
Registered office: |
Nature of business: Dormant company |
% |
Class of shares: | holding |
Ordinary | 100.00 |
John Law & Sons Limited |
Registered office: |
Nature of business: Dormant company |
% |
Class of shares: | holding |
Ordinary | 100.00 |
McConnell Seamless Roofing Limited |
Registered office: |
Nature of business: Dormant company |
% |
Class of shares: | holding |
Ordinary | 100.00 |
McConnell Decorators Limited |
Registered office: |
Nature of business: Dormant company |
% |
Class of shares: | holding |
Ordinary | 100.00 |
All subsidiaries have been included in the consolidated accounts. |
13. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Raw materials and consumables | 10,000 | 10,000 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 4,185,226 | 3,218,456 |
Amounts owed by group undertakings | - | - |
Amounts recoverable on contracts | 3,571,125 | 3,316,646 |
Prepayments | 93,814 | 118,932 |
7,850,165 | 6,654,034 |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 170,000 | 170,000 |
Other loans (see note 17) | 1,050,000 | - |
Hire purchase contracts (see note 18) | 126,202 | 33,576 |
Payments on account | 1,379,765 | - |
Trade creditors | 1,364,238 | 1,767,891 |
Tax | 121,665 | 89,108 |
Social security and other taxes | 1,280,977 | 719,912 |
Directors' current accounts | 100,000 | - | 100,000 | - |
Accrued expenses | 3,460,538 | 3,014,584 |
9,053,385 | 5,795,071 |
Included in Creditors: amounts falling due within one year is £27,788 (2022: £35,402) in respect of pension payments. |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 17) | 340,000 | 510,000 |
Other loans (see note 17) | - | 1,050,000 |
Hire purchase contracts (see note 18) | 619,228 | 59,617 |
959,228 | 1,619,617 |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2023 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Business interruption loan | 170,000 | 170,000 | - | - |
Loan - Criterion Homes Limited | 850,000 | - | 850,000 | - |
Loan - R H McGregor | 200,000 | - | 200,000 | - |
1,220,000 | 170,000 |
Amounts falling due between one and | two years: |
Business interruption loan | 170,000 | 170,000 |
Loan - Criterion Homes Limited | - | 850,000 | - | 850,000 |
Loan - R H McGregor | - | 200,000 | - | 200,000 |
170,000 | 1,220,000 |
Amounts falling due between two and | five years: |
Business interruption loan | 170,000 | 340,000 |
The loan from Criterion Homes Limited is repayable on or before 17 August 2023. Interest is payable monthly at the rate of 3.25% above the Bank of England base rate. Interest totalling £48,462 has been paid during the period. |
The loan from R H McGregor is repayable on or before 17 August 2023. Interest is due at 4% per annum and is payable on repayment of the loan. Interest totalling £8,000 has been accrued during the period and £37,633 is included in accruals in respect of interest due to date. |
The business interruption loan is repayable in 60 equal instalments commencing May 2021. Interest is 3.37% above base rate, with the first year's interest met by the government under the Coronavirus Business Interruption Loan Scheme. |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2023 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Gross obligations repayable: |
Within one year | 166,719 | 38,996 |
Between one and five years | 682,582 | 63,457 |
849,301 | 102,453 |
Finance charges repayable: |
Within one year | 40,517 | 5,420 |
Between one and five years | 63,354 | 3,840 |
103,871 | 9,260 |
Net obligations repayable: |
Within one year | 126,202 | 33,576 |
Between one and five years | 619,228 | 59,617 |
745,430 | 93,193 |
Group |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year | 199,568 | 210,273 |
Between one and five years | 482,087 | 583,624 |
In more than five years | 24,723 | 85,041 |
706,378 | 878,938 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans | 510,000 | 680,000 |
Loan - Criterion Homes Limited | 850,000 | 850,000 | 850,000 | 850,000 |
Loan - R H McGregor | 200,000 | 200,000 | 200,000 | 200,000 |
Hire purchase contracts | 745,430 | 93,193 | - | - |
2,305,430 | 1,823,193 |
Loans are secured against the assets of the group. A ranking agreement is in place. Hire purchase liabilities are secured against the assets funded. |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2023 |
20. | FINANCIAL INSTRUMENTS |
The carrying amount of the group's financial instruments are as follows: |
2023 | 2022 |
£ | £ |
Financial assets measured at amortised cost |
Cash at bank and in hand | 3,970,903 | 2,164,909 |
Trade and other debtors | 7,850,165 | 6,629,034 |
Financial liabilities measured at amortised cost |
Trade creditors | 1.364,238 | 1,767,891 |
Accrued expenses | 3,460,538 | 3,014,583 |
Hire purchase & finance lease liabilities | 745,429 | 93,193 |
Loans | 1,560,000 | 1,730,000 |
21. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax |
Capital allowances taken in advance of depreciation |
231,546 |
42,545 |
Other timing differences | (3,678 | ) | (2,939 | ) |
227,868 | 39,606 |
Group |
Deferred |
tax |
£ |
Balance at 1 May 2022 | 39,606 |
Charge to Income Statement during year | 188,262 |
Balance at 30 April 2023 | 227,868 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary A | 1 | 950 | 950 |
Ordinary B | 1 | 50 | 50 |
1,000 | 1,000 |
Ordinary A and Ordinary B shares have full rights with respect to voting, dividends and other distributions, save that the directors may declare a different rate of dividend on the Ordinary A and Ordinary B shares. |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2023 |
23. | RESERVES |
Group |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 May 2022 | 1,663,029 | 200 | 1,663,229 |
Profit for the year | 1,161,257 | 1,161,257 |
Dividends | (125,000 | ) | (125,000 | ) |
At 30 April 2023 | 2,699,286 | 200 | 2,699,486 |
Company |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 May 2022 | 370,401 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 30 April 2023 | 341,707 |
Retained earnings |
Retained earnings represent cumulative profits and losses less dividends and other adjustments. |
Capital redemption reserve |
Represents a statutory, non-distributable reserve into which amounts are transferred following the redemption or purchase of the company's own shares |
24. | CONTINGENT LIABILITIES |
On completion of some of its roofing contracts, a subsidiary company provides a written guarantee for its works. Under the terms of the guarantees, which mostly last for ten years, the company is required to make good any defects which appear in its work during the guarantee period. |
This guarantee system has been in place for over ten years and, in general, only minor repairs (if any ) have been required. Since any estimate of the future costs of these minor repairs would be wholly subjective, no provision is made for them in the accounts and their cost is charged to the profit and loss account in the year in which they occur. If however any substantial post year end repairs are identified, the cost of such repairs would be accrued in the accounts. |
25. | CAPITAL COMMITMENTS |
2023 | 2022 |
£ | £ |
Contracted but not provided for in the |
financial statements | 297,729 | 202,926 |
26. | RELATED PARTY DISCLOSURES |
During the year, total dividends of £125,000 were paid to the directors . |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2023 |
26. | RELATED PARTY DISCLOSURES - continued |
R H McGregor (a shareholder and director) and Criterion Homes Limited (of which R H McGregor is also a director) have advanced loans to the company. The amount and terms of the loans are detailed in note 17 above. |
At 30 April 2023, creditors falling due within one year include loans of £50,000 from each of R H McGregor amd E McGarvey (directors and shareholders). The loans are unsecured, interest free and repayable on demand. |
The company is controlled by the directors. |