REGISTERED NUMBER: |
MORGANSTONE LTD |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
REGISTERED NUMBER: |
MORGANSTONE LTD |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
MORGANSTONE LTD (REGISTERED NUMBER: 06705551) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 8 |
Statement of Income and Retained Earnings | 12 |
Balance Sheet | 13 |
Notes to the Financial Statements | 14 |
MORGANSTONE LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Chartered Accountants |
And Statutory Auditors |
Ground Floor Cardigan House |
Castle Court |
Swansea Enterprise Park |
Swansea |
SA7 9LA |
MORGANSTONE LTD (REGISTERED NUMBER: 06705551) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
The directors present their strategic report for the year ended 31 March 2024. |
REVIEW OF BUSINESS |
Morganstone, based in South Wales, has established itself as a prominent company in the construction industry since its founding in 2008. Specialising in delivering high-quality development solutions, the company serves a diverse clientele that includes housing associations, public sector entities, local authorities, and private developers. Over the years, Morganstone has earned recognition for its role in executing significant projects across various sectors, including education, leisure, waste recycling, commercial, retail, and residential. |
In its ongoing effort to expand and diversify, Morganstone is actively broadening its client base and exploring new sectors to enhance its growing portfolio, all while carefully managing the risk profiles of new ventures. The company's forward order book for the upcoming year and beyond is the strongest it has ever been, positioning Morganstone to achieve its strategic growth objectives. By working closely with clients on larger projects, Morganstone has been able to invest in the necessary resources and training, ensuring a sustainable increase in both workload and workforce. |
While Morganstone will continue to engage in competitive tendering, the recent market volatility has led the company to prioritise collaborative partnerships. By doing so, Morganstone aims to mitigate risks and optimise the delivery of key targets, ensuring a stable and successful future for the company and its clients. |
MORGANSTONE LTD (REGISTERED NUMBER: 06705551) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
Financial Performance |
Further to our previous financial year, we are pleased to report that the company has increased its turnover by 15%, reaching £34.8 million. This result slightly exceeds our projections and aligns with our continued growth strategy for the next five years. |
We are also happy to announce that the company has returned to profitability, with a Profit Before Tax (PBT) of £506,961 for the year. The recent stabilisation of construction costs has played a crucial role in enabling our projects to meet and maintain their targets, thereby alleviating pressure on profitability. |
Looking ahead, our future project portfolio is now less reliant on fixed-price contracts, as we have incorporated fluctuation clauses to manage any unexpected cost increases. This strategic adjustment provides us with greater flexibility and risk mitigation. |
In addition, we have strengthened our team by introducing several key staff members, including a Group Finance Director. The new director has already implemented, and will continue to introduce, cost-saving and efficiency measures across the business, further bolstering our financial performance and operational efficiency. |
Financially, the company remains robust, positioned to undertake larger contracts and pursue further diverse sector contracts if opportunities arise. |
Key Performance Indicators: |
Metric | 2024 | 2023 | Variance |
Revenue | £34,777,035 | £30,307,491 | 14.75% inc |
Gross Profit | £1,215,166 | £851,500 | 42.71% inc |
Gross Profit % | 3.49% | 2.81% | 0.68 inc |
Net Profit before tax for the year | £506,961 | (£244,923) | £751,884 inc |
Operating Profit % | 1.63% | (0.3%) | 1.93 inc |
Environmental Responsibilities |
The company acknowledges its environmental responsibilities and integrates concern for the environment and employees into its corporate business strategy. Monitoring environmental impact, the company implements policies to reduce damage caused by its activities, including safe waste disposal, minimising landfill-bound waste, reducing energy consumption, and utilising renewable resources where feasible. |
MORGANSTONE LTD (REGISTERED NUMBER: 06705551) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The construction industry's largest challenge over the past year has been the uncontrolled price increases driven by global volatility. While this uncertainty appears to have lessened, predicting the global influences on the UK, and consequently the construction sector, remains difficult. To address these ongoing risks, we have implemented fluctuation clauses in our contracts, providing us with a necessary buffer against potential cost increases. |
The creation of a new UK Labour Government seems to have brought some national stability, yet there remains a degree of uncertainty until the new Chancellor's Budget is announced. How these changes will impact UK businesses is still unclear. However, it is encouraging that the new government has expressed strong support for growth and has committed to backing the construction of housing. We anticipate that this will be echoed by the new Welsh Government administration. |
This governmental focus aligns closely with Morganstone's strategic plan, which positions affordable housing as a key component of our workload. Our established strategic partnerships in housing delivery further reinforce our commitment to contributing to this sector's growth. |
Financial Risk Management Objectives and Policies |
The company employs risk management policies, including key financial controls and targets reviewed monthly by the board. These measures aim to minimize financial risk exposure and explore opportunities fully. |
1. Liquidity and Cash Flow Risk: |
The company produces detailed management accounts and forecasts to monitor and ensure sufficient liquidity and cash flow, minimising the risk of debt payment challenges. |
2. Interest Rate Risk: |
Active management of fixed-rate borrowings, considering acquisitions' financing options, and strengthening the balance sheet help mitigate interest rate risks. |
3. Credit Risk: |
Despite dealing with public sector bodies, the company conducts thorough credit reviews before agreeing to terms, and larger contracts require director authorisation to minimise credit risk. |
4. Price Risk: |
The company manages price risk by negotiating terms with suppliers before transactions with customers. |
MORGANSTONE LTD (REGISTERED NUMBER: 06705551) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
FUTURE DEVELOPMENTS |
Morganstone has firmly established itself as a leading force in the South Wales construction sector and is now strategically positioned to diversify into various industries while maintaining a dedicated focus on residential development. This expansion is driven by our objective to explore new opportunities, broaden our service portfolio, and strengthen market resilience. By branching into different sectors, we aim to leverage our well-earned reputation and adapt our expertise to meet the unique demands of diverse industries. This forward-thinking strategy underscores our commitment to innovation, adaptability, and the pursuit of fresh avenues for sustained, long-term success-all while ensuring the continued growth and retention of our residential sector clients. |
The challenges of recent years, including the pandemic, global price increases stemming from the Ukraine war, and other global uncertainties, have prompted us to thoroughly review and implement enhanced risk measures. These improvements are designed to better equip Morganstone to navigate unpredictable market fluctuations. |
Our strategic decision to deepen partnerships with both key and new clients, particularly for larger, planned projects, has significantly bolstered our profitability while mitigating risk and volatility. With our best year of turnover and profit forecasted for the upcoming year, and further growth expected over the next five years, Morganstone is in its strongest position yet to continue its trajectory of growth and success. |
ON BEHALF OF THE BOARD: |
MORGANSTONE LTD (REGISTERED NUMBER: 06705551) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2024 |
The directors present their report with the financial statements of the company for the year ended 31 March 2024. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
During the year donations totalling £2,420 were made, these include individual donations of £1,150 to Blood Cancer UK and £500 to the Welsh Air Ambulance Services. No donations of a political nature were made. |
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. |
MORGANSTONE LTD (REGISTERED NUMBER: 06705551) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2024 |
AUDITORS |
The auditors, Bevan Buckland LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MORGANSTONE LTD |
Opinion |
We have audited the financial statements of Morganstone Ltd (the 'company') for the year ended 31 March 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet 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 31 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MORGANSTONE LTD |
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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 |
MORGANSTONE LTD |
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: |
Extent to which the audit was considered capable of detecting irregularities, including fraud |
We identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, and then, design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
We discussed our audit independence complying with the Revised Ethical Standard 2019 with the engagement team members whilst planning the audit and continually monitored our independence throughout the process. |
Identifying and assessing potential risks related to irregularities. |
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: |
- | enquiring of management, including obtaining and reviewing supporting documentation, concerning the Company's policies and procedures relating to: |
- | identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
- | detecting and responding to the risks of fraud and whether they have knowledge of any actual. suspected or alleged fraud; |
- | the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; |
- | discussing among the engagement team how and where fraud might occur in the Financial Statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas; |
- | Assumptions used for valuing work in progress at the year end, and; |
- | Potential for deferring income already earned at the year end. |
- | obtaining an understanding of the legal and regulatory frameworks that the Company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on the operations of the Company, The key laws and regulations we considered in this context included the UK Companies Act and relevant tax legislation. |
Audit response to risks identified |
In addition to the above, our procedures to respond to risks identified included the following: |
- | reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations; |
- | enquiring of management concerning actual and potential litigation and claims; performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- | reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and |
- | in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; |
- | assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MORGANSTONE LTD |
- | evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
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. |
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. |
for and on behalf of |
Chartered Accountants |
And Statutory Auditors |
Ground Floor Cardigan House |
Castle Court |
Swansea Enterprise Park |
Swansea |
SA7 9LA |
MORGANSTONE LTD (REGISTERED NUMBER: 06705551) |
STATEMENT OF INCOME AND |
RETAINED EARNINGS |
FOR THE YEAR ENDED 31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
(456,498 | ) | (1,193,620 | ) |
Other operating income |
OPERATING PROFIT/(LOSS) | 5 | ( |
) |
Interest receivable and similar income |
568,389 | (195,496 | ) |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
PROFIT/(LOSS) BEFORE TAXATION | ( |
) |
Tax on profit/(loss) | 7 | ( |
) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
Retained earnings at beginning of year |
RETAINED EARNINGS AT END OF YEAR |
MORGANSTONE LTD (REGISTERED NUMBER: 06705551) |
BALANCE SHEET |
31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
CURRENT ASSETS |
Debtors | 9 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
11 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Retained earnings | 15 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
MORGANSTONE LTD (REGISTERED NUMBER: 06705551) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
1. | STATUTORY INFORMATION |
Morganstone Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going Concern |
The financial statements have been prepared on a going concern basis which assumes that the will Company continue in operational existence for the foreseeable future. In making their assessment the directors have reviewed the balance sheet, the likely cashflows of the business and have considered the facilities that are in place at the date of signing the report. |
The Company meets its day to day working capital requirements from its cash reserves and banking facilities. The directors have assessed the longstanding effects of Covid-19 as well as current and past effects of inflation on the operating capacity of the Company and are satisfied that the Company can continue to operate within its existing facilities. |
The directors have analysed the cashflow requirements for various scenarios where disruption occurs to its customer base or supply chain. The directors have reasonable expectation that with the continued support of its bankers and funders in the form of facility levels which it has historically been provided with, in the scenarios reviewed the Company will be able to continue to operate within those facilities. However the extent of disruption to the sector caused by inflationary pressures and economic conditions are unclear and it is difficult to evaluate all potential implications on the Company's trade, customers, suppliers and the wider economy. |
At the time of approving the financial statements, the directors have 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. |
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 3.17(d); |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; |
• | the requirement of paragraph 33.7. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
MORGANSTONE LTD (REGISTERED NUMBER: 06705551) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying value 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. |
The following have had the most significant effect on amounts recognised in the financial statements: |
Amounts recoverable on contracts |
During the year and at the balance sheet date, the company task in house experienced quantity surveyors with quantifying the amounts recoverable on each contract in progress at that date. Cost of work done to date, including materials, subcontractors and staff is taken into consideration, alongside expected level of final margin, before arriving at a valuation by reference to the stage of completion. The company include provisions in their valuations for unseen costs based on their risk and likelihood of them occurring. |
Turnover |
Turnover is recognised at the fair value of the consideration received or receivable for construction services provided in the normal course of business, and is shown net of VAT and other sales related taxes. |
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 isrecognised as an expense immediately. |
Where the outcome of a construction contract cannot be estimated reliably, contract costs are recognised as expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. |
MORGANSTONE LTD (REGISTERED NUMBER: 06705551) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Plant and Machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Impairment of fixed assets |
At each reporting end date, the company reviews the carrying amounts of its tangible 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. |
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. |
MORGANSTONE LTD (REGISTERED NUMBER: 06705551) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
2. | 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. |
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. |
MORGANSTONE LTD (REGISTERED NUMBER: 06705551) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
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 statement of financial position 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 trade and other receivables 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. |
Basic financial liabilities |
Basic financial liabilities, including trade and other payables and bank loans that are classified as debt, are initially recognised 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. |
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. |
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. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
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. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled. |
Equity instruments |
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
MORGANSTONE LTD (REGISTERED NUMBER: 06705551) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
Debtors |
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. |
Cash at bank and cash in hand |
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. |
Creditors and provisions |
Creditors and provisions are recognised where the company has a present obligation (legal and constructive) resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. |
3. | TURNOVER |
The turnover and profit (2023 - loss) 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 |
£ | £ |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
MORGANSTONE LTD (REGISTERED NUMBER: 06705551) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2024 | 2023 |
Employees | 46 | 59 |
Directors | 2 | 2 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
5. | OPERATING PROFIT/(LOSS) |
The operating profit (2023 - operating loss) is stated after charging: |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
The auditing of accounts of any associate of the company |
Other non- audit services |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest |
Hire purchase |
7. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Deferred tax | ( |
) |
Tax on profit/(loss) | ( |
) |
MORGANSTONE LTD (REGISTERED NUMBER: 06705551) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
7. | TAXATION - continued |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit/(loss) before tax | ( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Adjustments to tax charge in respect of previous periods | ( |
) |
Superdeduction | - | (13,088 | ) |
Effect of change in deferred tax rates | - | (16,604 | ) |
Total tax charge/(credit) | 131,880 | (145,931 | ) |
8. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Motor |
Machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2023 |
Additions |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
MORGANSTONE LTD (REGISTERED NUMBER: 06705551) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
8. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
Machinery |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Amounts owed by associates |
Amounts recoverable on contract |
Other debtors |
Tax |
VAT |
Prepayments and accrued income |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 12) |
Hire purchase contracts (see note 13) |
Trade creditors |
Amounts owed to associates | 8,334 | 124,820 |
Social security and other taxes |
VAT | - | 420,533 |
Other creditors |
Accruals and deferred income |
MORGANSTONE LTD (REGISTERED NUMBER: 06705551) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
11. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans (see note 12) |
Hire purchase contracts (see note 13) |
12. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
13. | LEASING AGREEMENTS |
Minimum lease payments under hire purchase fall due as follows: |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
14. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary shares | 1 | 1 | 1 |
Ordinary A shares | 1 | 2 | 2 |
3 | 3 |
MORGANSTONE LTD (REGISTERED NUMBER: 06705551) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
15. | RESERVES |
Retained |
earnings |
£ |
At 1 April 2023 |
Profit for the year |
At 31 March 2024 |
16. | ULTIMATE PARENT COMPANY |
Morganstone Holdings Ltd is regarded by the directors as being the company's ultimate parent company. |
MORGANSTONE LTD (REGISTERED NUMBER: 06705551) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
17. | RELATED PARTY DISCLOSURES |
During the year the company entered into the following transactions with related parties all of which are companies under the common directorship and ownership of Mr I Morgan & Mrs T Morgan: |
Sales | Purchases | Sales | Purchases |
2024 | 2024 | 2023 | 2023 |
£ | £ | £ | £ |
Other related parties | 7,327,948 | 206,201 | 2,894,552 | 171,458 |
Management charges received |
Management charges charged |
Management charges received |
Interest charged on loans |
2024 | 2024 | 2023 | 2023 |
£ | £ | £ | £ |
Other related parties | 1,024,887 | - | 967,051 | 174,552 |
Amounts due from related parties |
Amounts due to related parties |
Amounts due from related parties |
Amounts due to related parties |
2024 | 2024 | 2023 | 2023 |
£ | £ | £ | £ |
Other related parties | 8,742,618 | 148,822 | 3,815,706 | 187,197 |
Amounts owed from related parties are included within the balances shown for 'Amounts owed by associates', 'Amounts Recoverable on Contract' and 'Prepayments and accrued income' within Debtors and 'Trade Creditors' and 'Amounts owed to associates' within Creditors due within less than one year. |
Although all amounts owed from related parties are deemed as repayable on demand, the expectation is that these balances will not be fully recovered within the next 12 months. |
Amounts due from related parties include balances due from Kartay Ltd and Westacres Homes Ltd and include balances in relation to the following developments: |
Princess Quarter: This landmark development in the city centre of Swansea required partial demolition and reconstruction of the former Smith Llewellyn building. Princess Quarter is a contemporary multi-purpose development offering 15,000sq ft of high-quality A-Grade office space in a prime city centre location, with high-end adaptable retail units to the ground floor. |
The Willows: Located in the desirable village of Olchfa, Sketty. A luxury development of three, four and five-bedroom executive homes, offering homeowners the very best in contemporary and modern living. |
18. | ULTIMATE CONTROLLING PARTY |
The controlling party is Morganstone (Holdings) Ltd. |
The ultimate controlling party is |