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Company registration number: 05509353
Mayo Civil Engineering Limited
Trading as Mayo Civils
Financial statements
30 June 2023
Mayo Civil Engineering Limited
Contents
Directors and other information
Strategic report
Directors report
Independent auditor's report to the members
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Mayo Civil Engineering Limited
Directors and other information
Directors Mr G D Mayo
Mrs E L Mayo
Secretary Mrs E L Mayo
Company number 05509353
Registered office Unit D
Rochdale Central Industrial Estate
Norman Road
Rochdale
OL11 4HS
Business address Unit D
Rochdale Central Industral Estate
Norman Road
Rochdale
OL11 4HS
Auditor Accounts & Business Solutions Ltd
158 Cromwell Road
Salford
M6 6DE
Accountants Warents Feingold & Co
349 Bury Old Road
Prestwich
Manchester
M25 1PY
Bankers Lloyds Bank Plc
PO Box 1000
Oldham Branch
16 Oldham Street
Oldham
OL1 0GJ
Solicitors Dwyers
176 Stamford Street Central
Ashton Under Lyne
OL6 7LR
Mayo Civil Engineering Limited
Strategic report
Year ended 30 June 2023
Mayo Civil Engineering's principal activity is civil engineering, specialising in residential and commercial groundworks and concrete frame markets.
We remain one of, if not, the leading frame contractor in the north west, with a proven ability to deliver projects on time, to budget whilst exceeding quality and health and safety targets. Repeat work with our key clients was again a significant contributor to turnover. As with last year, over 80% of our current work load is negotiated. Approaches from new clients continue and in the current financial year we have secured significant orders with three new, tier 1, clients. Our contracts outside the north west, in Sheffield and Birmingham have completed successfully and further projects in Blackpool and Earls Court, London have commenced.
Substantial investment in plant and equipment continues, taking advantage of HMRC's current 130% super-deduction capital allowance. Over the two-year period in which the allowance is available, we have invested more than circa £6 million in new plant and machinery to reflect and facilitate our increasing turnover.
During the financial year, we successfully completed several prestigious contacts; Viadux, a 40-storey residential block rising up through listed Victorian brick railway arches; Anchorage, a 28-storey residential block in Salford Quays and Victoria House, a 24-storey residential block in the Northern Quarter of Manchester City Centre. Work commenced on several high-profile schemes including a 25-storey residential block in Eccles, a 16-storey residential block in Manchester, an office block in Blackpool and a residential block at Earles Court, London.
Turnover has increased by 30% to £60,641,580 over the last year and pre tax profits have increased and remain healthy at £5,432,734. The biggest risk to profit margin over the last 18 months has been rising material price increases on fixed price contracts. Price increases continued to be a challenge through the current financial year but towards the end of the year there were early signs of material prices starting to stabilise. By the end of the financial year the three projects most affected by material price increases and fixed price contracts were all completed.
Looking forward to financial years 2023/24 and 2024/25, we expect turnover to remain at the current level for 2023/24 (circa £60m) and turnover to exceed £75m for 2024/25. At year end 2022/23 all our turnover for 2023/24 was secured and as was approx. 75% of turnover for 2024/25. We see no significant risks for the foreseeable future but remain cautious regarding our approach to pricing and fixed price periods. With increasing interest rates and uncertainty in the general economy, potential risks now appear to be attributable to delayed starts to projects and the financial stability of some developers and contractors. As with recent years we remain very selective which clients we will work for, focusing on those we have formed strong relationships with and have solid financial standing. The strategy adopted in recent years remains the same, we continue to strive to be the best in the north west. As with recent years, whilst ample turnover is secured within the north west region with like-minded clients, we will continue to review opportunities outside the region but this will be driven by client relationships and their requirements rather than a pre-planned desire to expand into other regions.
This report was approved by the board of directors on 28 March 2024 and signed on behalf of the board by:
Mr G D Mayo
Director
Mayo Civil Engineering Limited
Directors report
Year ended 30 June 2023
The directors present their report and the financial statements of the company for the year ended 30 June 2023.
Directors
The directors who served the company during the year were as follows:
Mr G D Mayo
Mrs E L Mayo
Dividends
Particulars of recommended dividends are detailed in note 13 to the financial statements.
The results and state of affairs of the company are set out in the accounts. The results of the company reflect activity for the 52 weeks to 7 July 2023. The directors recommended and paid interim dividends of £6233.34 per share.
Future developments
The company expects to continue to increase its activity in the coming year to 30 June 2024. The directors expect continued significant profits in the short to medium term.
Employment of disabled persons
Applicants for employment by disabled persons are always fully considered bearing in mind the aptitude of the applicant. In the event of members of staff becoming disabled, every effort is made to ensure that the employment will continue and appropriate training arranged. It is the policy of the company that the training, career development and promotion of disabled persons should as far as possible be identical to that of other employees. The aforementioned has to be taken into accordance with "on site" health and safety regulations.
Employee involvement
The Company's policy is to keep staff informed at meetings any matters that are likely to affect employee interest. The company has an ongoing programme of training staff, particularly for "on site" staff and health and safety.
Financial instruments
The company has normal levels of risk exposure to price, credit liquidity and cash flow arising from trading activities which are conducted in Sterling.
Events after the end of the reporting period
There are no matters to report as post balance sheet events.
Directors responsibilities statement
The directors are responsible for preparing the strategic report, 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 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 profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 28 March 2024 and signed on behalf of the board by:
Mr G D Mayo
Director
Mayo Civil Engineering Limited
Independent auditor's report to the members of
Mayo Civil Engineering Limited
Year ended 30 June 2023
Opinion
We have audited the financial statements of Mayo Civil Engineering Limited (the 'company') for the year ended 30 June 2023 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and 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 FRS 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 30 June 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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.
Other Information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 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 has 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 where 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 the 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, 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We obtained an understanding of the legal and regulatory frameworks that are applicable to the company through discussion with the directors and identified which were most significant with respect to the financial statements. We identified financial reporting legislation (including related companies' legislation), taxation legislation and landlord legislation as being most significant to these financial statements. We communicated these identified frameworks amongst our audit team and remained alert to any indications of non-compliance throughout the audit. We ensured that the engagement team had sufficient competence and capability to identify or recognise non-compliance with laws and regulations. We discussed with the directors the policies and procedures regarding compliance with these legal and regulatory frameworks. We assessed the susceptibility of the company's financial statements to material misstatement due to non-compliance with legal and regulatory frameworks, including how fraud might occur, by enquiry with the directors during the planning and finalisation stages of our audit and by using proprietary disclosure checklists. The susceptibility to such material misstatement was determined to be low.Based on this understanding, we designed our audit procedures to identify non-compliance with the identified legal and regulatory frameworks, which were part of our procedures on the related financial statement items. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
H Davies FCCA (Senior Statutory Auditor)
For and on behalf of
Accounts & Business Solutions Ltd
Chartered Certified Accountant and Registered Auditor
158 Cromwell Road
Salford
M6 6DE
28 March 2024
Mayo Civil Engineering Limited
Statement of comprehensive income
Year ended 30 June 2023
2023 2022
Note £ £
Turnover 4 60,641,580 47,189,352
Cost of sales ( 50,680,835) ( 39,085,263)
_______ _______
Gross profit 9,960,745 8,104,089
Administrative expenses ( 4,581,904) ( 3,297,884)
Other operating income 5 32,045 34,577
_______ _______
Operating profit 6 5,410,886 4,840,782
Other interest receivable and similar income 9 59,339 25,333
Interest payable and similar expenses 10 ( 37,491) ( 46,882)
_______ _______
Profit before taxation 5,432,734 4,819,233
Tax on profit 11 ( 326,471) 324,260
_______ _______
Profit for the financial year and total comprehensive income 5,106,263 5,143,493
_______ _______
All the activities of the company are from continuing operations.
Mayo Civil Engineering Limited
Statement of financial position
30 June 2023
2023 2022
Note £ £ £ £
Fixed assets
Tangible assets 14 8,537,683 7,012,464
Investments 15 8,450,826 8,450,826
_______ _______
16,988,509 15,463,290
Current assets
Debtors 16 12,423,836 11,134,464
Cash at bank and in hand 2,747,731 2,724,062
_______ _______
15,171,567 13,858,526
Creditors: amounts falling due
within one year 17 ( 7,374,771) ( 9,506,917)
_______ _______
Net current assets 7,796,796 4,351,609
_______ _______
Total assets less current liabilities 24,785,305 19,814,899
Creditors: amounts falling due
after more than one year 18 - ( 399,995)
Provisions for liabilities 19 ( 938,267) ( 611,796)
_______ _______
Net assets 23,847,038 18,803,108
_______ _______
Capital and reserves
Called up share capital 24 100 100
Profit and loss account 25 23,846,938 18,803,008
_______ _______
Shareholders funds 23,847,038 18,803,108
_______ _______
These financial statements were approved by the board of directors and authorised for issue on 28 March 2024 , and are signed on behalf of the board by:
Mr G D Mayo
Director
Company registration number: 05509353
Mayo Civil Engineering Limited
Statement of changes in equity
Year ended 30 June 2023
Called up share capital Profit and loss account Total
£ £ £
At 1 July 2021 100 13,885,679 13,885,779
Profit for the year 5,143,493 5,143,493
_______ _______ _______
Total comprehensive income for the year - 5,143,493 5,143,493
Dividends paid and payable ( 226,164) ( 226,164)
_______ _______ _______
Total investments by and distributions to owners - ( 226,164) ( 226,164)
_______ _______ _______
At 30 June 2022 and 1 July 2022 100 18,803,008 18,803,108
Profit for the year 5,106,263 5,106,263
_______ _______ _______
Total comprehensive income for the year - 5,106,263 5,106,263
Dividends paid and payable ( 62,333) ( 62,333)
_______ _______ _______
Total investments by and distributions to owners - ( 62,333) ( 62,333)
_______ _______ _______
At 30 June 2023 100 23,846,938 23,847,038
_______ _______ _______
Mayo Civil Engineering Limited
Statement of cash flows
Year ended 30 June 2023
2023 2022
£ £
Cash flows from operating activities
Profit for the financial year 5,106,263 5,143,493
Adjustments for:
Depreciation of tangible assets 2,140,841 1,061,124
Other interest receivable and similar income ( 59,339) ( 25,333)
Interest payable and similar expenses 37,491 46,882
Tax on profit 326,471 ( 324,260)
Accrued expenses/(income) ( 1,336,535) ( 1,934,677)
Changes in:
Trade and other debtors 470,280 ( 646,442)
Trade and other creditors ( 2,032,818) 2,932,784
_______ _______
Cash generated from operations 4,652,654 6,253,571
Interest paid ( 37,491) ( 46,882)
Interest received 59,339 25,333
Tax paid ( 199,773) ( 800,020)
_______ _______
Net cash from operating activities 4,474,729 5,432,002
_______ _______
Cash flows from investing activities
Purchase of tangible assets ( 3,666,060) ( 2,026,947)
Purchase of other investments - ( 4,114,035)
_______ _______
Net cash used in investing activities ( 3,666,060) ( 6,140,982)
_______ _______
Cash flows from financing activities
Proceeds from borrowings ( 722,667) 1,349,999
Equity dividends paid ( 62,333) ( 226,164)
_______ _______
Net cash (used in)/from financing activities ( 785,000) 1,123,835
_______ _______
Net increase/(decrease) in cash and cash equivalents 23,669 414,855
Cash and cash equivalents at beginning of year 2,724,062 2,309,206
_______ _______
Cash and cash equivalents at end of year 2,747,731 2,724,061
_______ _______
Mayo Civil Engineering Limited
Notes to the financial statements
Year ended 30 June 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Unit D, Rochdale Central Industrial Estate, Norman Road, Rochdale, OL11 4HS.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery - 20 % reducing balance
Fittings fixtures and equipment - 20 % reducing balance
Motor vehicles - 25 % reducing balance
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Fixed asset investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Hire purchase and finance leases
Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
Pensions
Contributions to defined contributions plans are expensed in the period to which they relate.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction cost and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised costs determined using the effective interest method.
4. Turnover
Turnover arises from:
2023 2022
£ £
Construction contracts 60,641,580 47,189,352
_______ _______
The turnover of the company relates to the principal activity of the company as civil engineers.
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2023 2022
£ £
Other operating income 32,045 34,577
_______ _______
6. Operating profit
Operating profit is stated after charging/(crediting):
2023 2022
£ £
Depreciation of tangible assets 2,140,841 1,061,124
Impairment of trade debtors - 15,361
Fees payable for the audit of the financial statements 19,500 13,450
_______ _______
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023 2022
Administrative staff 20 12
Construction 24 42
_______ _______
44 54
_______ _______
The aggregate payroll costs incurred during the year were:
2023 2022
£ £
Wages and salaries 2,163,179 1,905,851
Social security costs 240,504 212,091
Other pension costs 36,131 33,986
_______ _______
2,439,814 2,151,928
_______ _______
8. Directors remuneration
The directors aggregate remuneration in respect of qualifying services was:
2023 2022
£ £
Remuneration 288,000 288,000
_______ _______
The number of directors who accrued benefits under company pension plans was as follows:
2023 2022
Number Number
Defined contribution plans 2 2
_______ _______
Remuneration of the highest paid directors in respect of qualifying services:
2023 2022
£ £
Aggregate remuneration 144,000 144,000
Company contributions to pension plans in respect of qualifying services 24,000 24,000
_______ _______
168,000 168,000
_______ _______
9. Other interest receivable and similar income
2023 2022
£ £
Bank deposits 59,339 25,333
_______ _______
10. Interest payable and similar expenses
2023 2022
£ £
Other loans made to the company:
Finance leases and hire purchase contracts 4,011 -
Other interest payable and similar expenses 33,480 46,882
_______ _______
37,491 46,882
_______ _______
11. Tax on profit
Major components of tax expense/income
2023 2022
£ £
Current tax:
UK current tax expense - 35,000
Adjustments in respect of previous periods - ( 455,822)
_______ _______
Deferred tax:
Origination and reversal of timing differences 326,471 96,562
_______ _______
326,471 ( 324,260)
_______ _______
Reconciliation of tax expense/income
The tax assessed on the profit for the year is lower than (2022: lower than) the standard rate of corporation tax in the UK of 25.00 % (2022: 19.00%).
12. Earnings per share
Basic earnings/(loss) per share
The earnings/(loss) and weighted average number of shares used in the calculation of basic earnings/(loss) per share are as follows:
2023 2022
£ £
Profit for the year attributable to the owners of the company 5,106,263 5,143,493
_______ _______
Diluted earnings/(loss) per share
The earnings/(loss) and weighted average number of shares used in the calculation of diluted earnings/(loss) per share are as follows:
2023 2022
£ £
Earnings/(loss) used in calculation of basic earnings/(loss) per share 5,106,263 5,143,493
_______ _______
13. Dividends
Equity dividends
2023 2022
£ £
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year) 62,333 226,164
_______ _______
14. Tangible assets
Plant and machinery Fixtures, fittings and equipment Motor vehicles Freehold properties Total
£ £ £ £ £
Cost
At 1 July 2022 8,021,321 183,312 892,362 2,681,544 11,778,539
Additions 3,473,899 15,506 176,655 - 3,666,060
_______ _______ _______ _______ _______
At 30 June 2023 11,495,220 198,818 1,069,017 2,681,544 15,444,599
_______ _______ _______ _______ _______
Depreciation
At 1 July 2022 4,065,810 117,459 582,806 - 4,766,075
Charge for the year 1,975,024 36,340 129,477 - 2,140,841
_______ _______ _______ _______ _______
At 30 June 2023 6,040,834 153,799 712,283 - 6,906,916
_______ _______ _______ _______ _______
Carrying amount
At 30 June 2023 5,454,386 45,019 356,734 2,681,544 8,537,683
_______ _______ _______ _______ _______
At 30 June 2022 3,955,511 65,853 309,556 2,681,544 7,012,464
_______ _______ _______ _______ _______
Obligations under finance leases
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Plant and machinery
£
At 30 June 2023 1,555,284
_______
At 30 June 2022 1,780,634
_______
15. Investments
Other investments other than loans Total
£ £
Cost
At 1 July 2022 and 30 June 2023 8,450,826 8,450,826
_______ _______
Impairment
At 1 July 2022 and 30 June 2023 - -
_______ _______
Carrying amount
At 30 June 2023 8,450,826 8,450,826
_______ _______
At 30 June 2022 8,450,826 8,450,826
_______ _______
The directors have beneficial interests in the above investments.
16. Debtors
2023 2022
£ £
Trade debtors - 196,076
Prepayments and accrued income 10,206,715 8,432,203
Other debtors 2,217,121 2,506,185
_______ _______
12,423,836 11,134,464
_______ _______
17. Creditors: amounts falling due within one year
2023 2022
£ £
Bank loans and overdrafts 627,332 950,004
Trade creditors 5,128,195 7,220,941
Accruals and deferred income 1,414,647 991,530
Corporation tax - 199,773
Social security and other taxes 152,597 144,669
Other creditors 52,000 -
_______ _______
7,374,771 9,506,917
_______ _______
18. Creditors: amounts falling due after more than one year
2023 2022
£ £
Other creditors - 399,995
_______ _______
Bank loans are secured against the assets to which they relate.
19. Provisions
Deferred tax (note 20) Total
£ £
At 1 July 2022 611,796 611,796
Additions 326,471 326,471
_______ _______
At 30 June 2023 938,267 938,267
_______ _______
20. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023 2022
£ £
Included in provisions (note 19) 938,267 611,796
_______ _______
The deferred tax account consists of the tax effect of timing differences in respect of:
2023 2022
£ £
Accelerated capital allowances 938,267 611,796
_______ _______
21. Employee benefits
The amount recognised in profit or loss in relation to defined contribution plans was £ 36,131 (2022: £ 33,986 ).
22. Dividends
2023 2022
£ £
Dividends on ordinary shares 62,333 226,164
_________ _______
23. Financial instruments
The carrying amount for each category of financial instrument is as follows:
2023 2022
£ £
Financial assets that are debt instruments measured at amortised cost
Trade debtors 337,559 1,053,142
Other debtors 2,135,122 2,506,185
Cash at bank and in hand 2,747,731 2,724,062
Accrued income 9,613,485 7,334,326
Prepayments 255,671 240,811
_______ _______
Assets measured at ammortised cost 15,089,568 13,858,526
_______ _______
Financial liabilities measured at amortised cost
Bank and other loans 627,332 950,004
Trade creditors 5,180,195 7,220,941
Accruals and deferred income 1,414,647 991,530
Other taxes and social security 152,597 344,442
_______ _______
7,374,771 9,506,917
_______ _______
24. Called up share capital
Issued, called up and fully paid
2023 2022
No £ No £
Ordinary shares shares of £ 1.00 each 100 100 100 100
_______ _______ _______ _______
25. Reserves
Movement in reserves is reflected in the Statement of changes in equity.
26. Analysis of changes in net debt
At 1 July 2022 Cash flows At 30 June 2023
£ £ £
Cash and cash equivalents 2,724,062 23,669 2,747,731
Debt due within one year (950,004) 322,672 (627,332)
Debt due after one year (399,995) 399,995 -
_______ _______ _______
1,374,063 746,336 2,120,399
_______ _______ _______
27. Directors advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
2023
Balance brought forward Advances /(credits) to the directors Amounts repaid Balance o/standing
£ £ £ £
Mr G D Mayo 400,000 915,704 - 1,315,704
_______ _______ _______ _______
2022
Balance brought forward Advances /(credits) to the directors Amounts repaid Balance o/standing
£ £ £ £
Mr G D Mayo 506,141 120,023 ( 226,164) 400,000
_______ _______ _______ _______
The loan is subject to interest and is repayable upon demand.
28. Related party transactions
During the year the company entered into the following transactions with related parties:
Transaction value Balance owed by/(owed to)
2023 2022 2023 2022
£ £ £ £
The Michael J Field Sipps 24,000 24,500 72,500 48,500
_______ _______ _______ _______
The directors of the company are beneficiaries of the SIPP.
29. Controlling party
Mr G D Mayo is controlling party by virtue of his shareholding and directorship in the company.
30. Presentation currency
The financial statments are presented in sterling.
31. Legal form of entity and country of incorporation
Mayo Civil Engineering Limited is a private company limited by shares and incorporated in England.
32. Principal place of business
The address of the company's principal place of business and registered office is Unit D Rochdale Central Industrial Estate, Norman Road, Rochdale, OL11 4HS.
Mayo Civil Engineering Limited
Detailed income statement
Year ended 30 June 2023
2023 2022
£ £
Turnover
Sales 60,641,580 47,189,352
_______ _______
60,641,580 47,189,352
Cost of sales
Purchases (18,348,797) (15,314,132)
Direct costs (1,549,906) (1,301,247)
Subcontract labour (27,685,330) (19,831,455)
Carriage inwards (46,043) (24,563)
_______ _______
(47,630,076) (36,471,397)
Site costs (3,050,759) (2,613,866)
_______ _______
50,680,835 39,085,263
_______ _______
Gross profit 9,960,745 8,104,089
Gross profit percentage 16.4% 17.2%
Overheads
Administrative expenses ( 4,581,904) ( 3,297,884)
_______ _______
(4,581,904) (3,297,884)
Other operating income
CITB grants received 32,045 34,577
_______ _______
32,045 34,577
Operating profit 5,410,886 4,840,782
Operating profit percentage 8.9% 10.3%
Other interest receivable and similar income 59,339 25,333
Interest payable and similar expenses ( 37,491) ( 46,882)
_______ _______
Profit before taxation 5,432,734 4,819,233
_______ _______
Mayo Civil Engineering Limited
Detailed income statement (continued)
Year ended 30 June 2023
2023 2022
£ £
Overheads
Administrative expenses
Wages and salaries (512,896) (457,411)
Directors remuneration (288,000) (288,000)
Employer's social security contributions (240,504) (212,091)
Staff pension costs (36,131) (33,986)
Staff training (171,868) (137,000)
Rent and rates (155,094) (93,813)
Insurance (175,361) (131,662)
Light and heat (52,095) (28,152)
Cleaning (7,178) (10,515)
Repairs and maintenance (5,263) (3,964)
Printing, postage and stationery (31,332) (32,111)
Advertising and sponsorship (6,162) (6,940)
Telephone (46,527) (41,524)
Computer costs (39,750) (37,095)
Protective clothing costs (37,881) (22,191)
Trade shows - (20,769)
Travelling and entertainment (91,737) (107,041)
Legal and professional (438,192) (493,417)
CITB levy (33,931) (22,396)
Accountancy fees (8,433) (6,815)
Auditors remuneration (19,500) (13,450)
Bank charges (2,560) (2,603)
Bad debts - (15,361)
General expenses (4,648) (2,677)
Donations (28,829) (8,450)
Subscriptions and licences (7,191) (7,326)
Depreciation of motor vehicles (129,477) (109,476)
Depreciation on plant and machinery (1,975,024) (925,018)
Dep'n on fixtures , fittings and office equipt (36,340) (26,630)
_______ _______
( 4,581,904) ( 3,297,884)
_______ _______