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REGISTERED NUMBER: NI005233 (Northern Ireland)















LAGAN CONSTRUCTION LIMITED

Financial Statements for the Year Ended 30 September 2023






LAGAN CONSTRUCTION LIMITED (REGISTERED NUMBER: NI005233)






Contents of the Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2023




Page

Company Information 1

Statement of Financial Position 2

Notes to the Financial Statements 3


LAGAN CONSTRUCTION LIMITED

Company Information
FOR THE YEAR ENDED 30 SEPTEMBER 2023







DIRECTORS: Malachy Joseph Hughes
Kevin Anthony Lagan
Samuel Wilfred Patterson



SECRETARY: Jill Harrower-Steele



REGISTERED OFFICE: Rosemount House
21-23 Sydenham Road
Belfast
Co. Antrim



REGISTERED NUMBER: NI005233 (Northern Ireland)



INDEPENDENT AUDITORS: CavanaghKelly
Chartered Accountants and Statutory Auditors
36-38 Northland Row
Dungannon
Co. Tyrone
BT71 6AP



BANKERS: Danske Bank
Donegall Square West
Belfast
BT1 6JS

LAGAN CONSTRUCTION LIMITED (REGISTERED NUMBER: NI005233)

Statement of Financial Position
30 SEPTEMBER 2023

2023 2022
Notes £ £
NON-CURRENT ASSETS
Tangible assets 5 - 7,816

CURRENT ASSETS
Receivables: amounts falling due within
one year

6

982,819

2,200,313
Cash at bank 225,176 1,675,507
1,207,995 3,875,820
PAYABLES
Amounts falling due within one year 7 (699,006 ) (3,881,328 )
NET CURRENT ASSETS/(LIABILITIES) 508,989 (5,508 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

508,989

2,308

CAPITAL AND RESERVES
Called up share capital 81,001 81,001
Retained earnings 427,988 (78,693 )
508,989 2,308

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

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

The financial statements were approved by the Board of Directors and authorised for issue on 2 July 2024 and were signed on its behalf by:





Kevin Anthony Lagan - Director


LAGAN CONSTRUCTION LIMITED (REGISTERED NUMBER: NI005233)

Notes to the Financial Statements
FOR THE YEAR ENDED 30 SEPTEMBER 2023

1. STATUTORY INFORMATION

Lagan Construction Limited is a private company limited by shares, registered in Northern Ireland. The address of the registered office is Rosemount House, 21-23 Sydenham Road, Belfast, BT3 9HA.

The principal activity of the company during the year is as an international civil engineering contractor specialising in airport infrastructure works.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared on a going concern basis and in accordance with the historical cost convention. The financial reporting framework that has been applied in their preparation is the Companies Act 2006 (the "Act") and FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" issued by the Financial Reporting Council. The company qualifies as a small company for the period, as defined by section 382 of the Act, in respect of the financial year, and has applied the rules of the 'Small Companies Regime' in accordance with section 381 of the Act and section 1A of FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Consolidation
These financial statements contain information about the company as an individual company and do not contain consolidated financial information as the parent undertaking of a group. The company is exempt under Section 479 of the Companies Act 2006 from the requirement to prepare consolidated financial statements due to the size of the group.

Revenue recognition
A majority of the turnover is related to long-term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.

LAGAN CONSTRUCTION LIMITED (REGISTERED NUMBER: NI005233)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 30 SEPTEMBER 2023

3. ACCOUNTING POLICIES - continued

Property, plant and equipment
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Income Statement during the period in which they are incurred.

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:

Freehold Property - 10% Straight Line
Plant and Machinery - 10-33% Straight Line

The assets' residual values, useful lives and depredation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Impairment of fixed assets
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.

Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.

Government grants are recognised using the accrual model and the performance model.

Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.

Under the performance model, where the grant does not impose specified future performance- related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

LAGAN CONSTRUCTION LIMITED (REGISTERED NUMBER: NI005233)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 30 SEPTEMBER 2023

3. ACCOUNTING POLICIES - continued

Financial instruments
The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by related companies are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the Income Statement.

(ii) Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and overdrafts and hire purchase contracts 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

(iii) Offsetting

Financial assets and liabilities are offset and 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.


LAGAN CONSTRUCTION LIMITED (REGISTERED NUMBER: NI005233)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 30 SEPTEMBER 2023

3. ACCOUNTING POLICIES - continued
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, 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.

Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

The results of overseas branches/operations are translated at the average rates of exchange during the year and the balance sheet translated into sterling at the rates of exchange ruling on the balance sheet date. Exchange differences which arise from translation of the opening net assets and results of foreign subsidiary undertakings are taken to reserves.

Pension costs and other post-retirement benefits
Contributions to defined contribution plans are recognised as an expense in the period in which the related services is provided.

Provisions
Provisions are recognised when the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be. required to settle the obligation and the amount of the obligation can be estimated reliably.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole.A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

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.

Dividends
Investments in jointly controlled operations are recognised to the extent of the assets that are controlled and the liabilities that are incurred by the company. The share of the income earned and expenses that are incurred by the company are recognised in line with the joint venture agreement.

Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable on demand.

LAGAN CONSTRUCTION LIMITED (REGISTERED NUMBER: NI005233)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 30 SEPTEMBER 2023

3. ACCOUNTING POLICIES - continued

Loans and borrowings
All loans and borrowings, both assets and liabilities are initially recorded at the present value of cash payable to the lender in settlement of the liability discounted at the market interest rate. Subsequently loans and borrowings are stated at amortised cost using the effective interest rate method. The computation of amortised cost includes any issue costs, transaction costs and fees, and any discount or premium on settlement, and the effect of this is to amortise these amounts over the expected borrowing period. Loans with no stated interest rate and repayable within one period or on demand are not amortised. Loans and borrowings are classified as current assets or liabilities unless the borrower has an unconditional right to defer settlement of the liability for at least twelve months after the period end date.

Other financial assets
Other financial assets comprise of trade debtors, amounts due from group undertakings and other debtors. Other financial assets are initially measured at the undiscounted amount of cash receivable and are subsequently measured at amortised cost less impairment, where there is objective evidence of an impairment.

Other financial liabilities
Other financial liabilities include trade creditors and amounts owed to group undertakings and other creditors. Other financial liabilities are measured at invoice cost, unless payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate. In this case the arrangement constitutes a financing transaction, and the financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax from the proceeds.

4. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 2 (2022 - 2 ) .

5. PROPERTY, PLANT AND EQUIPMENT
Freehold Plant and
property machinery Totals
£ £ £
COST
At 1 October 2022
and 30 September 2023 1,515,463 1,493,348 3,008,811
DEPRECIATION
At 1 October 2022 1,507,647 1,493,348 3,000,995
Charge for year 7,816 - 7,816
At 30 September 2023 1,515,463 1,493,348 3,008,811
NET BOOK VALUE
At 30 September 2023 - - -
At 30 September 2022 7,816 - 7,816

LAGAN CONSTRUCTION LIMITED (REGISTERED NUMBER: NI005233)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 30 SEPTEMBER 2023

6. RECEIVABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£ £
Trade receivables 337,434 279,288
Other receivables 61,075 571,272
Amounts owed by group undertakings 294,508 718,125
Amounts owed by related parties 289,802 446,551
Amounts recoverable on contract - 71,743
Deferred tax asset - 113,334
982,819 2,200,313

Amounts owed by group companies and related parties are unsecured, interest free and repayable on demand.

7. PAYABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£ £
Trade payables 278,979 421,574
Amounts owed to group undertakings - 1,810,160
Tax 2,439 366
Social security and other taxes 22,882 608,190
Other payables 15,185 -
Accruals and deferred income 379,521 1,041,038
699,006 3,881,328

Amounts owed to group companies and related parties are unsecured, interest free and repayable on demand.

At the year end, Dankse Bank hold the following as security for borrowings:

1) An unlimited intercompany cross guarantee and indemnity from group companies;
2) A debenture incorporating fixed and floating charges over group assets, present and future.

8. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Auditors' Report was unqualified.

Mr. Ryan Falls (F.C.A) (Senior Statutory Auditor)
for and on behalf of CavanaghKelly

9. CONTINGENCIES

The company has provided an unlimited inter-company gross guarantee to cover any bonds in Lagan Specialist Contracting Group Holdings Limited, H&J Martin Holdings Limited, F K Lowry Plant Limited, F K Lowry Limited, Dew Piling Limited, Lagan Projects Investments Limited, Lagan Operations and Maintenance Limited, Lagan International Limited, Charles Brand Group Limited, F K Lowry Holdings Limited, Lagan Operations and Maintenance Holdings Limited.

Various proceedings have been issued against the company as well as other parties, in relation to the supply of allegedly defective quarry products by a company that was formerly a subsidiary company prior to 2005. On robust legal advice, the proceedings are being vigorously defended by the company and the company does not accept that it has any liability.

Due to the various factors that may impact on the above it is not possible to quantify the amounts
that could be involved or give any indication as to the timing of when a liability may arise.

LAGAN CONSTRUCTION LIMITED (REGISTERED NUMBER: NI005233)

Notes to the Financial Statements - continued
FOR THE YEAR ENDED 30 SEPTEMBER 2023

10. RELATED PARTY DISCLOSURES

The company has taken advantage of the exemption not to disclose any transactions with its parent or fellow 100% owned subsidiary undertakings on the grounds that it is a 100% owned subsidiary.

During the year, the company received repayments from related parties totalling £156,749 (2022: £294,415). At the year end there was an amount outstanding from related parties of £289,802 (2022: £446,551). The related parties involved in the aforementioned transactions are related by virtue of ultimate common shareholders and/or directors.

No further transactions with related parties were undertaken such as are required to be disclosed under FRS 102.

11. ULTIMATE CONTROLLING PARTY

Up until 31 March 2023 the immediate parent company of the group was Lagan Aviation and Infrastructure Limited. On this date the immediate parent company became Triforge Limited due to a group restructure. Triforge Limited is a company incorporated in the Isle of Man.

The company considers members of the Lagan family to be the ultimate controlling party.