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REGISTERED NUMBER: 07608158 (England and Wales)















Messenger Construction Limited

Strategic Report, Report of the Directors and

Financial Statements For The Year Ended 31st March 2024






Messenger Construction Limited (Registered number: 07608158)






Contents of the Financial Statements
For The Year Ended 31st March 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4 to 7

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12 to 21


Messenger Construction Limited

Company Information
For The Year Ended 31st March 2024







DIRECTORS: P A Gibbons
Mrs J F MacDonald
B F Morrell
Mrs H M Gibbons
M C Webster
D Emerson
I Bird





SECRETARY: P A Gibbons





REGISTERED OFFICE: Collyweston Heritage Centre
Main Road
Collyweston
Stamford
Lincolnshire
PE9 3PQ





REGISTERED NUMBER: 07608158 (England and Wales)





AUDITORS: Cheney & Co
Statutory Auditor
310 Wellingborough Road
Northampton
NN1 4EP

Messenger Construction Limited (Registered number: 07608158)

Strategic Report
For The Year Ended 31st March 2024

The directors present their strategic report for the year ended 31st March 2024.

During the year the company has continued to expand as the reputation for high quality and reliable work attracts more new customers to the already large client base.

REVIEW OF BUSINESS
A small reduction in turnover this year but this is predominantly due to delayed start dates for secured projects. The increase to gross profit is reassuring, showing that our projects are well managed and correctly tendered. The small reduction in net profit is not surprising, given our increased management team appointed in readiness for the start of the delayed projects. The company is now well structured with an excellent management team, ready to take advantage of the large level of secured turnover and excellent tender opportunities.

PRINCIPAL RISKS AND UNCERTAINTIES
The directors are not aware of any specific fundamental risks and uncertainties with regards to the current trading activities, they are aware of the higher demand for skilled workforce, increased material prices and bespoke services within the industry.

KEY PERFORMANCE INDICATORS
The directors would wish to disclose the following Key Performance Indicators

2024 2023 2022 2021
£ 000`s £ 000's £ 000's £ 000's
Turnover 28,565 30,062 26,585 20,606

Gross profit % 17.89% 15.97% 18.55% 17.13%

Liquidity ratio 157.20% 154.87% 157.59% 145.87%

Debtor days 94 78 79 96

Net profit % 1.83% 1.86% 2.45% 4.01%

Gearing 8.77% 9.60% 13.11% 12.75%




ON BEHALF OF THE BOARD:





P A Gibbons - Director


30th August 2024

Messenger Construction Limited (Registered number: 07608158)

Report of the Directors
For The Year Ended 31st March 2024

The directors present their report with the financial statements of the company for the year ended 31st March 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of property construction and building repairs.

DIVIDENDS
No dividends will be distributed for the year ended 31st March 2024.

FUTURE DEVELOPMENTS
The directors are pleased with the ongoing progress that has been achieved and are reviewing opportunities to expand operations to a wider geographical area giving further growth to the business.

DIRECTORS
The directors shown below have held office during the whole of the period from 1st April 2023 to the date of this report.

P A Gibbons
Mrs J F MacDonald
B F Morrell
Mrs H M Gibbons
M C Webster
D Emerson
I Bird

Other changes in directors holding office are as follows:

O McSharry - resigned 7th February 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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;
-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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





P A Gibbons - Director


30th August 2024

Report of the Independent Auditors to the Members of
Messenger Construction Limited

Opinion
We have audited the financial statements of Messenger Construction Limited (the 'company') for the year ended 31st March 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31st March 2024 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have 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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, 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 directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Report of the Independent Auditors to the Members of
Messenger Construction Limited


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

Report of the Independent Auditors to the Members of
Messenger Construction Limited


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatements due to fraud or error; and to respond appropriately to those risks.

Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

We obtained an understanding of the legal and regulatory frameworks applicable to the company and its subsidiaries as well as the sectors in which they operate. We determine that the following laws and regulations were most significant: the Companies Act 2006, UK taxation laws, UK GAAP and health & safety legislation applicable to the construction industry.

We obtained an understanding of how the company and its subsidiaries are complying with those legal and regulatory frameworks by making inquiries of management.

We have discussed with management the specific risk to the company of the liabilities arising from disputes relating to work undertaken by the company and its subsidiaries, leading to legal liabilities, and have concluded that this risk is small. There has been nothing that has come to light and no instances of legal action against the company and the group in this regard.

The major critical judgement in relation to the company`s financial statements is the valuation of the applications for payment, and provisions against these amounts, which are a components of the balance sheet items of trade debtors, or trade creditors as accrued or deferred income, as appropriate, and also reflected in the turnover figure within the income statement.

We have undertaken high levels of testing of balances included in the balance sheet and have performed a detailed analytical review of the income statement.

Prior to commencement of the audit staff were briefed on the risk assessment of the susceptibility company's financial statements to material misstatement, including how fraud could occur.

At the completion stage of the audit the results of audit tests were re-examined to ensure that they were consistent with our knowledge of the client and did not warrant further investigation of transactions and balances.

We have assessed the susceptibility of the financial statements of the company and its subsidiaries to material misstatement, including how fraud might occur. Audit procedures performed for the company's accounts included

- identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
- understanding how those charged with governance considered and addressed the potential for the override of controls or other inappropriate influence over the financial reporting process;
- challenging assumptions and judgements made by the management in its significant accounting estimates;
- identifying and testing journal entries, in particular any journal entries posted with unusual account combinations; and
- assessing the extent of the compliance with the relevant laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Messenger Construction Limited


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Paul Sparks FCA FCCA (Senior Statutory Auditor)
for and on behalf of Cheney & Co
Statutory Auditor
310 Wellingborough Road
Northampton
NN1 4EP

30th August 2024

Messenger Construction Limited (Registered number: 07608158)

Income Statement
For The Year Ended 31st March 2024

2024 2023
Notes £    £   

TURNOVER 4 28,565,331 30,061,964

Cost of sales (23,454,389 ) (25,261,285 )
GROSS PROFIT 5,110,942 4,800,679

Administrative expenses (4,562,920 ) (4,224,712 )
OPERATING PROFIT 6 548,022 575,967


Interest payable and similar expenses 7 (23,976 ) (17,626 )
PROFIT BEFORE TAXATION 524,046 558,341

Tax on profit 8 (87,688 ) (81,371 )
PROFIT FOR THE FINANCIAL YEAR 436,358 476,970

Messenger Construction Limited (Registered number: 07608158)

Other Comprehensive Income
For The Year Ended 31st March 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 436,358 476,970


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

436,358

476,970

Messenger Construction Limited (Registered number: 07608158)

Balance Sheet
31st March 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 715,292 429,868

CURRENT ASSETS
Stocks 10 95,600 40,600
Debtors 11 9,723,354 8,989,037
Cash at bank and in hand 59,607 845,574
9,878,561 9,875,211
CREDITORS
Amounts falling due within one year 12 6,283,880 6,376,351
NET CURRENT ASSETS 3,594,681 3,498,860
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,309,973

3,928,728

CREDITORS
Amounts falling due after more than one
year

13

(591,659

)

(679,772

)

PROVISIONS FOR LIABILITIES 17 (87,000 ) (54,000 )
NET ASSETS 3,631,314 3,194,956

CAPITAL AND RESERVES
Called up share capital 18 150 150
Retained earnings 19 3,631,164 3,194,806
SHAREHOLDERS' FUNDS 3,631,314 3,194,956

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 30th August 2024 and were signed on its behalf by:





P A Gibbons - Director


Messenger Construction Limited (Registered number: 07608158)

Statement of Changes in Equity
For The Year Ended 31st March 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1st April 2022 150 2,717,836 2,717,986

Changes in equity
Total comprehensive income - 476,970 476,970
Balance at 31st March 2023 150 3,194,806 3,194,956

Changes in equity
Total comprehensive income - 436,358 436,358
Balance at 31st March 2024 150 3,631,164 3,631,314

Messenger Construction Limited (Registered number: 07608158)

Notes to the Financial Statements
For The Year Ended 31st March 2024

1. STATUTORY INFORMATION

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

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


The principal activity of the company in the year under review was that of property construction and building repairs.

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" and the Companies Act 2006.

3. ACCOUNTING POLICIES

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

The preparation of financial statements in compliance with FRS102 requires the use of certain critical accounting estimates. It also requires the directors to exercise judgement in the process of applying the company`s accounting policies. The areas involving a higher degree of judgement or complexity or areas where assumptions and estimates are significant to the financial statements are disclosed under critical accounting judgements and key sources of estimation uncertainty below.

The significant accounting policies applied in the preparation of these financial statements are set out below.These policies have been consistently applied to all years presented unless otherwise stated.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 33.7.

Messenger Construction Limited (Registered number: 07608158)

Notes to the Financial Statements - continued
For The Year Ended 31st March 2024

3. ACCOUNTING POLICIES - continued

Critical accounting judgements and key sources of estimation uncertainty
The company makes estimates and assumptions concerning the future. The directors are also required to exercise judgement in the process of applying the company`s accounting policies. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

In preparing these financial statements , the directors have made the following judgements:

> Recognition of profit on long - term contracts

Profit recognition is based on an assessment of the overall profitability forecast on individual contracts. Losses are recognised as soon as they are foreseen. Profits are recognised by the directors when the outcome of the contract can be assessed within reasonable certainty.The profit recognised reflects that part of the total profit currently estimated to arise over the duration of the contract that fairly represents the profit attributable to work performed at the accounting date.

> Recoverability of trade and other debtors

Trade and other debtors are recognised to the extent that they are judged recoverable. The directors reviews are performed to estimate the level of reserves required for irrecoverable debt. Provisions are made specifically against invoices where recoverability is uncertain.

The directors make allowances for doubtful debts based on an assessment of the recoverability of debtors.Allowances are applied to debtors where events or changes in circumstances indicate that the carrying amounts may not be recoverable. The directors specifically analyse historical bad debts, customer creditworthiness , current economic trends and changes in customer payment terms when making a judgement to evaluate the adequacy of the provision for doubtful debts. Where the expectation is different from the original estimate, such a difference will impact the carrying value of debtors and the charge in the profit and loss account.

> Provisions

A provision is recognised when the company has a present legal or constructive obligation as a result of a past event for which it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. If the effect is material , provisions are determined by discounting the expected future cash flow that reflects the time value of money and the risks specific to the liability.

Whether a present obligation is probable or not requires judgement. The nature and type of risks for these provisions differ, the directors`s judgement is applied regarding the nature and extent of obligations in deciding if an outflow of resources is probable or not.

> Depreciation, amortisation and residual values

The directors have reviewed the asset lives and associated residual values of all fixed asset classes, and have concluded that asset lives and residual values are appropriate.

The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account.Residual value assessments consider issues such as future market conditions , the remaining life of the asset and projected disposal values.

> Taxation

There are many transactions and calculations for which the ultimate tax determination is uncertain. The company recognizes liabilities for anticipated tax issues based on estimates of whether additional taxes will be due.

The directors estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies.

Messenger Construction Limited (Registered number: 07608158)

Notes to the Financial Statements - continued
For The Year Ended 31st March 2024

3. ACCOUNTING POLICIES - continued

Turnover
Turnover comprises the fair valuation for consideration received or receivable, net of any Value Added Tax, rebates and discounts.

Turnover arises from increases in valuations on contracts and is the gross value of work carried out for the period to the balance sheet date, including contract variations and claims.

Variations in contract work are only included to the extent that it is probable that they will result in revenue and that they are capable of being reliably measured.

Where the total income of a contract cannot be estimated reliably, contract revenue is recognised to the extent that it is probable contract costs will be recovered.

Profit on contracts is calculated in accordance with the accounting standards and industry practice. Profit recognition is based on an assessment of the overall profitability forecast on individual contracts and is recognised when the outcome of the contract can be assessed with reasonable certainty. The profit recognised reflects that part of the total profit currently estimated to arise over the duration of the contract that fairly represents the profit attributable to work performed at the balance sheet date. The assessment of the final outcome of each contract is determined by regular review of the revenues and costs to complete that contract.

Provisions are made for losses incurred or foreseen in bringing the contract to completion as soon as they become apparent.

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

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Messenger Construction Limited (Registered number: 07608158)

Notes to the Financial Statements - continued
For The Year Ended 31st March 2024

3. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Long-term contracts
Amounts recoverable on long term contracts represents the gross unbilled amounts for contract work performed to date. They are measured at cost plus profit recognised to date (see turnover accounting policy) less a provision for foreseeable losses and less progress billings

Amounts recoverable on contracts is presented in debtors as part of the amounts recoverable on contracts in the balance sheet. If payments received from customers exceed the income recognised, then the difference is presented in payments on account included within creditors on the balance sheet.

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024 2023
£    £   
Construction contracts 22,318,357 21,516,916
Building repairs 6,246,974 8,545,048
28,565,331 30,061,964

5. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 4,090,283 3,663,463
Social security costs 261,763 268,912
Other pension costs 101,164 90,471
4,453,210 4,022,846

The average number of employees during the year was as follows:
2024 2023

Head office 42 39
Site 51 50
93 89

2024 2023
£    £   
Directors' remuneration 409,449 447,728
Directors' pension contributions to money purchase schemes 7,942 7,799

Messenger Construction Limited (Registered number: 07608158)

Notes to the Financial Statements - continued
For The Year Ended 31st March 2024

5. EMPLOYEES AND DIRECTORS - continued

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 5 7

Information regarding the highest paid director is as follows:
2024 2023
£    £   
Emoluments etc 86,500 90,500
Pension contributions to money purchase schemes 1,321 1,321

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Hire of plant and machinery 451,570 507,252
Depreciation - owned assets 71,193 34,522
Depreciation - assets on hire purchase contracts and finance leases 63,167 94,735
Profit on disposal of fixed assets - (1,096 )
Auditors' remuneration 11,000 11,000

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank interest 136 -
Hire purchase 2,797 479
Leasing 21,043 17,147
23,976 17,626

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 54,688 74,177

Deferred tax 33,000 7,194
Tax on profit 87,688 81,371

Messenger Construction Limited (Registered number: 07608158)

Notes to the Financial Statements - continued
For The Year Ended 31st March 2024

8. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 524,046 558,341
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 19%)

131,012

106,085

Effects of:
Capital allowances in excess of depreciation (31,425 ) (15,070 )
Deferred tax movement 33,000 7,194
Research and development enhanced deduction (43,081 ) (12,054 )
Group relief (1,818 ) (4,784 )
group losses
Total tax charge 87,688 81,371

9. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor
machinery fittings vehicles Totals
£    £    £    £   
COST
At 1st April 2023 362,224 87,897 480,826 930,947
Additions 183,675 316 345,273 529,264
Disposals - - (171,461 ) (171,461 )
At 31st March 2024 545,899 88,213 654,638 1,288,750
DEPRECIATION
At 1st April 2023 224,298 87,083 189,698 501,079
Charge for year 59,399 1,130 73,831 134,360
Eliminated on disposal - - (61,981 ) (61,981 )
At 31st March 2024 283,697 88,213 201,548 573,458
NET BOOK VALUE
At 31st March 2024 262,202 - 453,090 715,292
At 31st March 2023 137,926 814 291,128 429,868

Messenger Construction Limited (Registered number: 07608158)

Notes to the Financial Statements - continued
For The Year Ended 31st March 2024

9. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts and finance leases are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1st April 2023 55,200 427,281 482,481
Additions 27,900 299,473 327,373
Disposals - (137,617 ) (137,617 )
At 31st March 2024 83,100 589,137 672,237
DEPRECIATION
At 1st April 2023 13,800 213,161 226,961
Charge for year 6,825 56,342 63,167
Eliminated on disposal - (47,226 ) (47,226 )
At 31st March 2024 20,625 222,277 242,902
NET BOOK VALUE
At 31st March 2024 62,475 366,860 429,335
At 31st March 2023 41,400 214,120 255,520

10. STOCKS
2024 2023
£    £   
Raw materials 95,600 40,600

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 1,548,628 1,291,451
Amounts recoverable on long
term contracts 5,661,563 5,158,143
Amounts owed by group undertakings 1,967,840 2,104,205
Other debtors 512,853 412,853
Prepayments and accrued income 32,470 22,385
9,723,354 8,989,037

The amounts recoverable on long term contracts represents the trading debt and work in progress on the income generated during the course of normal trading activities.

Messenger Construction Limited (Registered number: 07608158)

Notes to the Financial Statements - continued
For The Year Ended 31st March 2024

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 14) 220,971 220,000
Hire purchase contracts and finance leases (see note 15)
105,855

89,711
Trade creditors 2,933,313 2,729,230
Tax 54,688 74,177
Social security and other taxes 293,056 275,152
VAT 700,173 909,506
Other creditors 455,763 429,965
Credit cards 90,276 187,484
Directors' current accounts 466 211
Accrued expenses 1,429,319 1,460,915
6,283,880 6,376,351

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£    £   
Bank loans (see note 14) 294,029 515,001
Hire purchase contracts and finance leases (see note 15)
297,630

164,771
591,659 679,772

14. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank loans 220,971 220,000

Amounts falling due between one and two years:
Bank loans - 1-2 years 48,609 220,000

Amounts falling due between two and five years:
Bank loans - 2-5 years 245,420 220,000

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more 5 yr by instal - 75,001

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts Finance leases
2024 2023 2024 2023
£    £    £    £   
Net obligations repayable:
Within one year 18,698 12,420 87,157 77,291
Between one and five years 36,413 33,858 261,217 130,913
55,111 46,278 348,374 208,204

Messenger Construction Limited (Registered number: 07608158)

Notes to the Financial Statements - continued
For The Year Ended 31st March 2024

15. LEASING AGREEMENTS - continued

Non-cancellable operating leases
2024 2023
£    £   
Within one year 10,180 5,707

16. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Hire purchase contracts and finance leases 403,485 254,482

The Royal Bank of Scotland have a fixed and floating debenture over all assets of the company dated 9th September 2011.The Royal Bank of Scotland also have an unlimited , inter group guarantee dated 27th September 2021.

17. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 87,000 54,000

Deferred
tax
£   
Balance at 1st April 2023 54,000
Provided during year 33,000
Balance at 31st March 2024 87,000

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
150 Ordinary £1 150 150

19. RESERVES
Retained
earnings
£   

At 1st April 2023 3,194,806
Profit for the year 436,358
At 31st March 2024 3,631,164

20. ULTIMATE PARENT COMPANY

Messenger BCR Limited is regarded by the directors as being the company's ultimate parent company.

21. CONTINGENT LIABILITIES

The company has in the normal course of business given guarantees for £63,880 which are outstanding at 31st March 2024 , in respect of bonds issued by a third party, securing the performance of various construction contracts of the company.

Messenger Construction Limited (Registered number: 07608158)

Notes to the Financial Statements - continued
For The Year Ended 31st March 2024

22. CAPITAL COMMITMENTS

There were no capital commitments as at 31st March 2024 or 31st March 2023.

23. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
2024 2023
£    £   
Sales 3,242 46,917
Purchases 527,962 143,626
Amount due to related party 55,693 -

Other related parties

Included in other debtors is a loan due from a related party for £507,431. The loan is repayable on demand and attracts interest at the market rate.