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REGISTERED NUMBER: SC201125 (Scotland)















Unaudited Financial Statements for the Year Ended 31 March 2023

for

P. McKernan Construction Limited

P. McKernan Construction Limited (Registered number: SC201125)






Contents of the Financial Statements
for the Year Ended 31 March 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 4

Chartered Accountants' Report 9

P. McKernan Construction Limited

Company Information
for the Year Ended 31 March 2023







DIRECTORS: P McKernan
M M Shields





REGISTERED OFFICE: 29 Brandon Street
Hamilton
ML3 6DA





REGISTERED NUMBER: SC201125 (Scotland)





ACCOUNTANTS: Sharles Ltd
Chartered Accountants
29 Brandon Street
Hamilton
ML3 6DA

P. McKernan Construction Limited (Registered number: SC201125)

Balance Sheet
31 March 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 5 248,360 218,490
Investment property 6 100,000 895,000
348,360 1,113,490

CURRENT ASSETS
Stocks 2,341,526 6,983,817
Debtors 7 1,049,179 377,894
Cash at bank 2,210,061 103,697
5,600,766 7,465,408
CREDITORS
Amounts falling due within one year 8 2,477,154 5,472,231
NET CURRENT ASSETS 3,123,612 1,993,177
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,471,972

3,106,667

CREDITORS
Amounts falling due after more than one
year

9

(35,693

)

(429,088

)

PROVISIONS FOR LIABILITIES (47,188 ) -
NET ASSETS 3,389,091 2,677,579

CAPITAL AND RESERVES
Called up share capital 102 102
Retained earnings 3,388,989 2,677,477
SHAREHOLDERS' FUNDS 3,389,091 2,677,579

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

P. McKernan Construction Limited (Registered number: SC201125)

Balance Sheet - continued
31 March 2023


The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 13 March 2024 and were signed on its behalf by:





P McKernan - Director


P. McKernan Construction Limited (Registered number: SC201125)

Notes to the Financial Statements
for the Year Ended 31 March 2023

1. STATUTORY INFORMATION

P. McKernan Construction Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. There were no material departures from that standard.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

Turnover
Turnover is derived from new build house sales by the company.

Turnover is measured at the fair value of new build house sales, net of discounts and excluding value added tax, and is recognised at the point that the company obtains the right to consideration.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery etc - 25% on reducing balance

Tangible fixed assets held for the companies own use are stated at cost less accumulated depreciation and accumulated impairment loss.

At each balance sheet date, the company reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss. Where it is not possible to estimate the recoverable amount of the asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Expenditure of £1,000 or more on individual tangible fixed assets is capitalised at cost. Expenditure on assets below this threshold is charged directly to the income statement in the period it is incurred.

Government grants
Grants considered to be revenue in nature are credited to the profit and loss account in the period to which they relate. Grants of a capital nature are reflected as deferred income in the balance sheet and released to the profit and loss account over the estimated useful life of the assets to which they relate.

Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

P. McKernan Construction Limited (Registered number: SC201125)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

3. ACCOUNTING POLICIES - continued

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell (net realisable value). Costs, which comprise direct production costs, are based on the method appropriate to the type of inventory class, but usually on a first-in-first-out basis. Overheads are charged to the income statement as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amounts of stocks recognised as an expense in the period in which the reversal occurs.

Work in progress
Stocks, being work in progress, are stated at the lower of cost and net realisable value. Costs comprise direct material and labour costs, plus attributable overheads based on a normal level of activity. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

4. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 7 (2022 - 8 ) .

P. McKernan Construction Limited (Registered number: SC201125)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

5. TANGIBLE FIXED ASSETS
Plant and
machinery
etc
£   
COST
At 1 April 2022 595,232
Additions 95,620
Disposals (6,926 )
At 31 March 2023 683,926
DEPRECIATION
At 1 April 2022 376,742
Charge for year 65,750
Eliminated on disposal (6,926 )
At 31 March 2023 435,566
NET BOOK VALUE
At 31 March 2023 248,360
At 31 March 2022 218,490

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and
machinery
etc
£   
COST
At 1 April 2022 304,103
Transfer to ownership (160,441 )
At 31 March 2023 143,662
DEPRECIATION
At 1 April 2022 144,553
Charge for year 24,796
Transfer to ownership (100,076 )
At 31 March 2023 69,273
NET BOOK VALUE
At 31 March 2023 74,389
At 31 March 2022 159,550

P. McKernan Construction Limited (Registered number: SC201125)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

6. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 April 2022 895,000
Disposals (795,000 )
At 31 March 2023 100,000
NET BOOK VALUE
At 31 March 2023 100,000
At 31 March 2022 895,000

7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Other debtors 1,049,179 377,894

8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts 10,000 20,564
Hire purchase contracts 17,011 27,767
Trade creditors 260,802 875,176
Taxation and social security 14,279 313,493
Other creditors 2,175,062 4,235,231
2,477,154 5,472,231

9. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans 22,500 396,648
Hire purchase contracts 13,193 32,440
35,693 429,088

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more 5 yr by instal - 317,307

P. McKernan Construction Limited (Registered number: SC201125)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

10. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 32,500 417,212
Hire purchase contracts 30,204 60,207
62,704 477,419

A bank loan is secured by a floating charge over the assets and undertakings of the company and by a standard security over property owned by the company.

A bank loan is supported by a 100% guarantee from the UK Government.

Hire purchase contracts and finance leases are secured over the assets concerned.

11. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

P McKernan
Director

During the year, the company repaid £389,632 to the director. At the year end, the balance due to the director was £2,146,185 (2022 - £2,535,815). This loan is unsecured, interest free and has no fixed repayment terms.

12. RELATED PARTY DISCLOSURES

During the year the year, P. McKernan Construction Ltd advanced £2,632,059 to companies under common control.

At the year end, the balance due to P. McKernan Construction Ltd from companies under common control was £971,349 (2022 - the balance due by P.McKernan Construction Ltd to companies under common control was £1,660,710).

No interest was charged on outstanding amounts during this year or the previous year. The balances are unsecured, interest free and have no fixed repayment terms.

Chartered Accountants' Report to the Board of Directors
on the Unaudited Financial Statements of
P. McKernan Construction Limited

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of P. McKernan Construction Limited for the year ended 31 March 2023 which comprise the Income Statement, Balance Sheet, Statement of Changes in Equity and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of ICAS, we are subject to its ethical and other professional requirements which are detailed at http://www.icas.com/accountspreparationguidance.

This report is made solely to the Board of Directors of P. McKernan Construction Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of P. McKernan Construction Limited and state those matters that we have agreed to state to the Board of Directors of P. McKernan Construction Limited, as a body, in this report in accordance with the requirements of ICAS as detailed at http://www.icas.com/accountspreparationguidance. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that P. McKernan Construction Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of P. McKernan Construction Limited. You consider that P. McKernan Construction Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of P. McKernan Construction Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.






Sharles Ltd
Chartered Accountants
29 Brandon Street
Hamilton
ML3 6DA


13 March 2024