Company Registration No. NI013563 (Northern Ireland)
FP MCCANN LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
IDS Chartered Accountants LLP
23/25 Queen Street
COLERAINE
Co Londonderry
BT52 1BG
FP MCCANN LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 5
Directors' report
6 - 8
Independent auditor's report
9 - 11
Statement of comprehensive income
12
Balance sheet
13
Statement of changes in equity
14
Statement of cash flows
15
Notes to the financial statements
16 - 30
FP MCCANN LIMITED
COMPANY INFORMATION
- 1 -
Directors
Hugh McCann
Christopher McCann
Michael McCann
Joan McCann
Mark McCann
Paul McCann
Secretary
Joan McCann
Company number
NI013563
Registered office
Knockloughrim Quarry
3 Drumard Road
MAGHERAFELT
Co Londonderry
BT45 8QA
Auditor
IDS Chartered Accountants LLP
23/25 Queen Street
COLERAINE
Co Londonderry
BT52 1BG
Bankers
AIB Group (UK) p.l.c.
Business Banking
92 Ann Street
BELFAST
BT1 3AY
Solicitors
Carson McDowell
Murray House
Murray Street
BELFAST
BT1 6DN
FP MCCANN LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present the strategic report for the year ended 31 December 2023.
Principal activities and review of the business
The company is engaged in building and civil engineering activities, quarrying, house building and the manufacture of construction products, working from sites in Northern Ireland and Great Britain.
The company's key financial and other performance indicators during the year were as follows:
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Current assets as a % of current liabilities | | | |
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Average number of employees | | | |
We have continued to invest in our facilities and people and are confident that this strategy will ensure that the Company will be able to capitalise on the growing demand from the construction industry to provide modular solutions to meet its needs in an environment of a declining skilled labour market.
Principal risks and risk management
The Company's strategy is to follow an appropriate risk policy, which effectively manages exposures related to the achievement of our business objectives. The key risks which management face are detailed as follows:
Business performance risk
Business performance risk is the risk that the Company will not perform as expected either due to internal factors or due to competitive pressures in the markets in which they operate. This risk is managed in a number of ways including budget and business planning, financial controls, monthly reporting and variance analysis, key performance indicators, regular forecasting and ensuring the appropriate management team is in place.
Business Control
Strong financial and business controls are in place to ensure the integrity and reliability of financial and other information on which the Company relies for day-to-day operations, external reporting and for longer term planning.
The company operates a number of internal divisions which are managed through the recruitment of a local management team in each area which are further supported and controlled by the directors of the Company.
The company exercises financial and business control through a combination of qualified and experienced financial teams, performance analysis, budgeting, cash flow forecasting and clearly defined approval limits. The external professionals provide advice on specific accounting and tax issues as they arise. The company also hires external advisors to complete aspects of its tax compliance and reporting requirements and to help us provide specialist expertise in significant transactions or understand the effects of new legislation and how it may impact us.
FP MCCANN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Management development
The directors recognise the importance of the recruitment, training and retention of a highly skilled and motivated work force. This is continually addressed through internal training and development programmes.
Research and development
At FP McCann Limited, we believe that continuous research and development is the key to success. We conduct novel research into sustainable drainage systems, low carbon materials, energy efficient manufacturing, high performance structures and improved production efficiency using the latest in AI and automation technology. This year, we have invested heavily in a state-of-the-art facility to support our research in robotics and low carbon concrete technology. Alongside this investment, we are constantly updating each of our factories to implement the latest manufacturing technologies, including our internally developed AI augmented computer vision system to maximise product quality, a first-of-its-kind for the industry.
The company employs the skills and experience of many technical experts with multiple years of experience in the field of Mechanical, Chemical and Civil Engineering, Concrete Manufacturing as well as Computer Vision Engineering. These persons are competent professionals within their field of expertise, and qualified to undertake the relevant R&D activities identified as they are highly knowledgeable about the relevant scientific and technological principles involved in the company’s R&D activities, aware of the current state of knowledge in their relevant field of expertise as well as having accumulated years of experience within this field.
Being at the forefront of the precast concrete industry in the UK, we believe that our role is to continually develop innovative solutions that solve engineering and architectural problems, with a strong emphasis on educating and upskilling the industry. We work with top tier research institutions to expedite the transfer of cutting-edge research to full-scale industry applications and disseminate our findings to stakeholders in the form of literature in trade journals, conferences, trade shows and scientific journal papers, alongside tours showcasing full-scale demonstrators. In the current year we have participated in several research grants, showcasing our commitment to improving the sustainability of our products and processes and investing in the development of new technology and capabilities for the industry.
Health and safety
The company is committed to ensuring a safe working environment. These risks are managed by the company through the strong promotion of a health and safety culture and well defined health and safety policies. Robust systems and controls are in place to enable us to manage health and safety across all our divisions. We are committed to a process of demonstrable continuous improvement in health and safety that goes beyond compliance and ensures we adopt best practice.
Health and environment
The company has a clear strategy for Health & Safety, which particularly focuses on high risk operations. Our vision for Health & Safety is supported by clearly defined objectives and a supporting plan which establishes the basis on which we will successfully deliver the improvements. We embarked on a “lean” journey which targeted the physical working environment. In doing so, we have created a working environment which has reduced risk, allows for efficient production and has a positive effect on our workforce. There is a clear emphasis placed on continual improvement with continuous measuring, monitoring and where necessary reviewing of the arrangements to ensure that the required Health & Safety standards are met.
Community
Organisations play a vital role in the development of local communities through investment in the built environment. We are committed to contributing to the economic well-being of the communities where we work through the employment of local people and suppliers where appropriate. We actively encourage our people to involve themselves in the local communities where they work, either through volunteer activities in local organisations and charities or by participating in local business groups and educational establishments in sharing knowledge and experience.
FP MCCANN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Environmental risk
The company's environmental policy is to:
Comply with all applicable environmental legislation;
Ensure that all employees and contractors respect their environmental responsibilities;
Through the carbon reduction commitment, strive to improve efficient use of energy resources and reduce water usage from its operations;
Minimise waste and reduce the amount of same sent to landfill;
Support local communities in which they operate by protecting the natural environment where possible.
Achieving these objectives at all Company locations is a management imperative. Each site manager has the day to day responsibility for ensuring the company's environmental policies and procedures are adhered to and they report to the directors on a continuous basis.
Credit risk
Credit risk arises principally on trade receivables. Company policy is aimed at minimising such risk and requires that deferred terms are granted only to customers who demonstrate an appropriate payment history and satisfy creditworthiness procedures. The company also have in place a credit insurance policy.
Currency risk
The company is not materially exposed to significant foreign currency risk.
Section 172 statement
Promoting the success of the company
We are a family business with over 40 years experience in the construction industry. The board are actively involved in the day to day running of the business and are focused on building a strong and sustainable business for the future. Regular engagement between our board of directors and stakeholders will ensure that we deliver products which are innovative and tailored to their specific requirements and construction needs.
Our aim is to perform and build a sustained trust with our stakeholders. By implementing our corporate values, we aim to deliver on this guarantee through our products, services, communications and, above all, the behaviour of our people.
The board have a long-term strategy which highlights specific key performance indicators, enabling them to regularly review their implementation and adapt them for the changing needs of the company and its stakeholders.
We recognise that we must integrate our business values and operations to meet the expectations of our stakeholders. Stakeholders include our employees, supply chain, customers, regulators, the community and the environment and we aim to develop our business activity in a way that is beneficial to them whilst having a positive impact on society as a whole.
We take seriously all feedback that we receive from our stakeholders and, where possible, maintain open dialogue to ensure that we fulfil our Corporate Social Responsibility.
We are open and honest in communicating our strategies, targets, performance, and governance to our stakeholders in our continual commitment to sustainable development.
Employee engagement
Employing around 1700 people, across multiple depots throughout Northern Ireland and Great Britain, we acknowledge the importance of our employees. We engage and consult with our employees through meetings. Information about matters of concern to employees is given through information bulletins, notice boards and email communication. We are committed to enabling local people to obtain the skills needed to access employment. This is achieved through comprehensive induction training, proper instruction, basic training, on the job support and mentoring, external training, and experiences to equip them for more senior posts within the company. Throughout the organisation we offer a wide range of Apprenticeship opportunities to young people and adult learners, these programmes help us to grow our own talent by developing a motivated, skilled, and qualified workforce whilst gaining internationally recognised qualifications.
FP MCCANN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Business relationships with suppliers, customers and others
Our senior management and department heads continually strive to develop business relations with regular communication and a known point of contact to enable a speedy resolution to any areas of concern. We are active members of a variety of trade associations and supply chain collaborations, including the MPA Precast Drainage Association, Architectural & Structural Association, Pipe Jacking Association and the National Federation of Roofing Contractors. Our contribution to these associations events and conferences allow us to discuss and share industry best practice in a variety of areas that embrace health & safety, sustainability, product developments and technological advances. We have been actively lobbying government bodies via UK Concrete, encouraging them to introduce stricter building regulations surrounding fire resilience and combustible materials used in construction. We also facilitate regular meetings with a range of regulatory stakeholders, building relationships on both a face-to-face basis and utilisation of technological platforms.
Social responsibilities
Our Environmental Management System enables us to achieve and demonstrate our environmental performance and minimise the negative impact of our operations. We endeavour to be at the forefront of the industry in reducing the impact of all our activities on the environment.
Joan McCann
Director
28 February 2024
FP MCCANN LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Results and dividends
The results for the year are set out on page 12.
Ordinary dividends were paid amounting to £26,725k. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Hugh McCann
Christopher McCann
Michael McCann
Joan McCann
Mark McCann
Paul McCann
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is 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.
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
Post reporting date events
The directors have confirmed that there are no significant events after the balance sheet date that they feel they need to disclose.
Future developments
The directors do not anticipate any major changes in the nature of the business that they feel they need to disclose.
Auditor
The auditor, IDS Chartered Accountants LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
FP MCCANN LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
Energy and carbon report
Methodology for quantification
We have quantified and reported our organisational greenhouse gas (GHG) emissions according to the (GHG) Reporting Protocol. Energy use data has been collated and converted into Carbon Dioxide Equivalent (Co2e) using the most up to date (March 2019) HM Government Environmental Reporting Guidelines along with the 2023 UK Government Conversion Factors for Company reporting to calculate emissions from corresponding activity data. We have used reliable and obtainable data typical of our operations throughout.
Boundary approach and base year
We have used the Financial Control boundary approach in line with all previous year’s reporting. Our fixed base year selection is 1st January 2020 – 31st December 2020.
Summary of greenhouse gas emissions and energy consumption for the year ended 31st December 2023:
Scope and description Metric 2023 2020
Scope 1 – Emissions tCO2e 23,059.72 23,619.41
Scope 2 – Emissions (market-based) tCO2e 3,520.92 2,736.01
Scope 3 – Business travel where responsible for fuel tCO2e 7,348.15 6,367.31
Intensity ratio
The emissions intensity ratio has been measured using the total scope 1, 2 and 3 emissions per million pounds of sales revenue. For the year ended 31st December 2023 this was 81.70 tCO2e/£m (2020: 126.19 tCO2e/£m).
Sustainability approach
FP McCann is committed to promoting sustainability. The promotion of a broader sustainability agenda is integral to our professional activities and the management of the organisation.
Low carbon projects and environmental actions taken
Throughout 2023, we actively engaged in various research grants, demonstrating our dedication to enhancing the sustainability of our products and operations while investing in pioneering technologies and industry capabilities. These initiatives include the Industrial Energy Transformation Fund, the Industrial Energy Efficiency Accelerator and the Artificial Intelligence for Decarbonisation Innovation Programme.
Expanding the installation of solar panels at our Knockloughrim and Cadeby sites to complement our existing energy sources.
Continued adoption of the concept of LEAN manufacturing with the aim to improve process efficiency, improve productivity and improve waste reduction. These improvements are an integral part of our production process and are aligned with our targets to reduce carbon emissions over the next 5 years and beyond.
Continued investment in replacing diesel-powered forklift trucks with electric alternatives, an ongoing initiative that remains a top priority in 2024 as we uphold our sustainability objectives.
Carbon offsets and targets
Together with the aforementioned low carbon projects, we are actively progressing carbon offsetting projects year-on-year. We continue to engage with the Small Woodland Scheme and plan to embark on further planting in 2024.
FP McCann have continued and developed their relationship with Queens' University, Belfast to continue the research and development programme focusing on low carbon solutions and how they can be developed throughout the Company's extensive product portfolio.
For further information on FP McCann's sustainability policy, please visit our website:
https://fpmccann.co.uk/about-us-2/sustainability-2/
FP MCCANN LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
Statement of directors' responsibilities
The directors are responsible for preparing the annual 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Joan McCann
Director
28 February 2024
FP MCCANN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FP MCCANN LIMITED
- 9 -
Opinion
We have audited the financial statements of FP McCann Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 31 December 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.
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.
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 contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
FP MCCANN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FP MCCANN LIMITED
- 10 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations, was as follows:
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;
investigated the rationale behind any significant or unusual transactions.
FP MCCANN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FP MCCANN LIMITED
- 11 -
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statements disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims;
reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
The purpose of our audit work and to whom we owe our responsibilities
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Mrs Alison Wallace
Senior Statutory Auditor
For and on behalf of IDS Chartered Accountants LLP
Statutory Auditor
23/25 Queen Street
COLERAINE
Co Londonderry
BT52 1BG
28 February 2024
FP MCCANN LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£'000
£'000
Turnover
3
415,760
387,585
Cost of sales
(350,757)
(327,648)
Gross profit
65,003
59,937
Administrative expenses
(24,821)
(21,619)
Other operating income
29
23
Operating profit
4
40,211
38,341
Interest receivable and similar income
9
402
57
Interest payable and similar expenses
10
(277)
(239)
Profit before taxation
40,336
38,159
Tax on profit
11
482
3,042
Profit for the financial year
40,818
41,201
The profit and loss account has been prepared on the basis that all operations are continuing operations.
FP MCCANN LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 13 -
2023
2022
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
14
783
13,750
Current assets
Stocks
15
44,009
47,705
Debtors
16
78,412
59,538
Cash at bank and in hand
34,994
13,543
157,415
120,786
Creditors: amounts falling due within one year
17
(78,543)
(67,959)
Net current assets
78,872
52,827
Total assets less current liabilities
79,655
66,577
Provisions for liabilities
Deferred tax liability
18
1,015
-
(1,015)
Net assets
79,655
65,562
Capital and reserves
Called up share capital
20
40
40
Share premium account
49
49
Revaluation reserve
4,326
Profit and loss reserves
79,566
61,147
Total equity
79,655
65,562
The financial statements were approved by the board of directors and authorised for issue on 28 February 2024 and are signed on its behalf by:
Hugh McCann
Joan McCann
Director
Director
Company registration number NI013563 (Northern Ireland)
FP MCCANN LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£'000
£'000
£'000
£'000
£'000
Balance at 1 January 2022
40
49
26,794
65,655
92,538
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
41,201
41,201
Dividends
12
-
-
-
(68,177)
(68,177)
Transfers
-
-
(22,468)
22,468
-
Balance at 31 December 2022
40
49
4,326
61,147
65,562
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
40,818
40,818
Dividends
12
-
-
-
(26,725)
(26,725)
Transfers
-
-
(4,326)
4,326
-
Balance at 31 December 2023
40
49
79,566
79,655
FP MCCANN LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Cash generated from operations
23
38,836
24,896
Interest paid
(277)
(239)
Income taxes paid
(3,748)
(3,138)
Net cash inflow from operating activities
34,811
21,519
Investing activities
Purchase of tangible fixed assets
(787)
Proceeds from disposal of tangible fixed assets
13,750
42,908
Interest received
402
57
Net cash generated from investing activities
13,365
42,965
Financing activities
Repayment of borrowings
(46)
Repayment of bank loans
(4,475)
Dividends paid
(26,725)
(68,177)
Net cash used in financing activities
(26,725)
(72,698)
Net increase/(decrease) in cash and cash equivalents
21,451
(8,214)
Cash and cash equivalents at beginning of year
13,543
21,757
Cash and cash equivalents at end of year
34,994
13,543
FP MCCANN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information
FP McCann Limited is a private company limited by shares incorporated in Northern Ireland. The registered office is Knockloughrim Quarry, 3 Drumard Road, MAGHERAFELT, Co Londonderry, BT45 8QA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £'000.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
FP McCann Limited is a wholly owned subsidiary of FP McCann Group Limited and the results of FP McCann Limited are included in the consolidated financial statements of FP McCann Group Limited which are available from Knockloughrim Quarry, 3 Drumard Road, Magherafelt, Co Londonderry, BT45 8QA.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual staff costs and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
0%
Plant and equipment
12.5% straight line
Motor vehicles
25% reducing balance
FP MCCANN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
FP MCCANN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
FP MCCANN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
FP MCCANN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
FP MCCANN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.17
Jointly controlled operations
The company's share of the results, assets and liabilities of contracts carried out in conjunction with another party are included under each relevant heading in the Statement of Comprehensive Income and Balance Sheet.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The company does not have any critical accounting estimates, apart from those involving estimations which are dealt with below.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Construction contracts
The company generates revenue from construction contracts. This often requires adjustment to be applied in estimating the stage of completion of the contract at the balance sheet date based on the forecast total contract costs that is expected to be incurred on the contract. Where actual results differ to the estimate made, this could result in an impact on the company's financial results.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£'000
£'000
Turnover analysed by class of business
Construction
59,323
58,353
Manufacture of Construction Products
355,945
329,232
Jointly controlled operations
492
-
415,760
387,585
No analysis of turnover by geographical market has been disclosed as, in the opinion of the directors, such disclosure would be seriously prejudicial to the interests of the company.
FP MCCANN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 22 -
2023
2022
£'000
£'000
Other revenue
Interest income
402
57
Grants received
-
82
Sundry income
29
17
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£'000
£'000
Exchange losses/(gains)
11
(7)
Government grants
-
(82)
Depreciation of owned tangible fixed assets
4
23
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£'000
£'000
For audit services
Audit of the financial statements of the company
30
30
For other services
All other non-audit services
15
35
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Administration and sales
300
302
Management
138
138
Production
1,213
1,241
Total
1,651
1,681
FP MCCANN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 23 -
Their aggregate remuneration comprised:
2023
2022
£'000
£'000
Wages and salaries
65,599
64,357
Social security costs
6,874
7,100
Pension costs
1,886
1,801
74,359
73,258
7
Directors' remuneration
2023
2022
£'000
£'000
Remuneration for qualifying services
743
592
Company pension contributions to defined contribution schemes
228
191
971
783
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 6 (2022 - 6).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£'000
£'000
Remuneration for qualifying services
239
169
Company pension contributions to defined contribution schemes
22
22
FP MCCANN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
8
Jointly controlled operations
The company has interests in the following jointly controlled operations:
33% interest in BbM JV
50% interest in BAM McCann JV
100% interest in Dixons McCann JV
These have been included in the financial statements using the equity method. The following amounts have been recognised in the Statement of Comprehensive Income relating to these Joint Operations:
2023
2022
£'000
£'000
Sales
492
-
Cost of sales
(492)
-
Profit for the year
-
-
9
Interest receivable and similar income
2023
2022
£'000
£'000
Interest income
Interest on bank deposits
396
57
Other interest income
6
Total income
402
57
10
Interest payable and similar expenses
2023
2022
£'000
£'000
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
266
236
Other finance costs:
Interest on finance leases and hire purchase contracts
-
3
Other interest
11
277
239
11
Taxation
2023
2022
£'000
£'000
Current tax
UK corporation tax on profits for the current period
2,432
5,055
Adjustments in respect of prior periods
(1,899)
(3,068)
Total current tax
533
1,987
FP MCCANN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Taxation
2023
2022
£'000
£'000
(Continued)
- 25 -
Deferred tax
Origination and reversal of timing differences
(1,015)
(5,029)
Total tax credit
(482)
(3,042)
The actual credit for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£'000
£'000
Profit before taxation
40,336
38,159
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
9,487
7,250
Tax effect of expenses that are not deductible in determining taxable profit
131
57
Adjustments in respect of prior years
(1,899)
(3,068)
Group relief
(93)
Permanent capital allowances in excess of depreciation
(3,099)
4
Research and development tax credit
(3,994)
(2,256)
Deferred tax movement
(1,015)
(5,029)
Taxation credit for the year
(482)
(3,042)
12
Dividends
2023
2022
£'000
£'000
Interim paid
26,725
68,177
FP MCCANN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
13
Intangible fixed assets
Goodwill
£'000
Cost
At 1 January 2023 and 31 December 2023
250
Amortisation and impairment
At 1 January 2023 and 31 December 2023
250
Carrying amount
At 31 December 2023
At 31 December 2022
14
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Motor vehicles
Total
£'000
£'000
£'000
£'000
Cost or valuation
At 1 January 2023
13,750
13,750
Additions
693
94
787
Disposals
(13,750)
(13,750)
At 31 December 2023
693
94
787
Depreciation and impairment
At 1 January 2023
Depreciation charged in the year
4
4
At 31 December 2023
4
4
Carrying amount
At 31 December 2023
693
90
783
At 31 December 2022
13,750
13,750
During the year ended 31 December 2023 FP McCann Limited transferred its property asset to FP McCann Group Limited as part of the group re-organisation.
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2023
2022
£'000
£'000
Cost
-
8,409
FP MCCANN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
15
Stocks
2023
2022
£'000
£'000
Raw materials and consumables
4,421
6,657
Work in progress
491
1,134
Finished goods and goods for resale
39,097
39,914
44,009
47,705
There are no material differences between the replacement cost of stocks and the balance sheet amount.
16
Debtors
2023
2022
Amounts falling due within one year:
£'000
£'000
Trade debtors
48,182
47,235
Amounts owed by group undertakings
8,558
Other debtors
84
34
Prepayments and accrued income
21,588
12,269
78,412
59,538
At 31 December 2023 trade debtors had been sold to a provider of invoice discounting and debt factoring services. The company is committed to underwrite any of the debts transferred and therefore continues to recognise the debts sold within trade debtors until the debtors repay or default. The proceeds from transferring the debts of £5,040k (2022: £13k) are included in other creditors until the debts are collected or the company makes good any losses incurred by the service provider.
17
Creditors: amounts falling due within one year
2023
2022
£'000
£'000
Trade creditors
32,590
36,839
Corporation tax
432
3,647
Other taxation and social security
2,516
4,428
Other creditors
5,408
399
Accruals and deferred income
37,597
22,646
78,543
67,959
Bank facilities are secured with fixed and floating charges over all the property or undertaking of the company.
£5,040k of other creditors is secured against trade debtors.
FP MCCANN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
18
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£'000
£'000
Revaluations
-
1,015
2023
Movements in the year:
£'000
Liability at 1 January 2023
1,015
Transfer on disposal
(1,015)
Liability at 31 December 2023
-
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
1,886
1,801
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary of £1 each
40,000
40,000
40
40
21
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2023
2022
£'000
£'000
Aggregate compensation
743
592
FP MCCANN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
21
Related party transactions
(Continued)
- 29 -
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Purchases
Purchases
2023
2022
£'000
£'000
Entities over which the entity has control, joint control or significant influence
1,500
1,290
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due to related parties
£'000
£'000
Entities over which the entity has control, joint control or significant influence
150
132
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£'000
£'000
Entities over which the entity has control, joint control or significant influence
10
10
Other information
The company has taken advantage of the exemption under Section 33 of FRS 102 "Related Party Disclosures" not to disclose transactions with its ultimate parent company and fellow 100% owned subsidiary undertakings as the company's results are included in the consolidated financial statements for the ultimate parent undertaking.
22
Ultimate controlling party
The parent company of FP McCann Limited is FP McCann Group Limited.
FP McCann Group Limited and subsequently FP McCann Limited is controlled by the McCann family.
FP MCCANN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
23
Cash generated from operations
2023
2022
£'000
£'000
Profit for the year after tax
40,818
41,201
Adjustments for:
Taxation credited
(482)
(3,042)
Finance costs
277
239
Investment income
(402)
(57)
Depreciation and impairment of tangible fixed assets
4
23
Movements in working capital:
Decrease/(increase) in stocks
3,696
(23,859)
Increase in debtors
(18,874)
(404)
Increase in creditors
13,799
10,795
Cash generated from operations
38,836
24,896
24
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£'000
£'000
£'000
Cash at bank and in hand
13,543
21,451
34,994
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