Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31The principal activity of the company is that of building subcontractors specialising in facades.false2023-01-01911falsefalsefalse 07171320 2023-01-01 2023-12-31 07171320 2022-01-01 2022-12-31 07171320 2023-12-31 07171320 2022-12-31 07171320 2022-01-01 07171320 4 2023-01-01 2023-12-31 07171320 4 2022-01-01 2022-12-31 07171320 5 2023-01-01 2023-12-31 07171320 5 2022-01-01 2022-12-31 07171320 6 2023-01-01 2023-12-31 07171320 6 2022-01-01 2022-12-31 07171320 d:CompanySecretary1 2023-01-01 2023-12-31 07171320 d:Director1 2023-01-01 2023-12-31 07171320 d:Director2 2023-01-01 2023-12-31 07171320 d:RegisteredOffice 2023-01-01 2023-12-31 07171320 d:Agent1 2023-01-01 2023-12-31 07171320 d:Agent2 2023-01-01 2023-12-31 07171320 e:Buildings e:LongLeaseholdAssets 2023-01-01 2023-12-31 07171320 e:Buildings e:LongLeaseholdAssets 2023-12-31 07171320 e:Buildings e:LongLeaseholdAssets 2022-12-31 07171320 e:PlantMachinery 2023-01-01 2023-12-31 07171320 e:PlantMachinery 2023-12-31 07171320 e:PlantMachinery 2022-12-31 07171320 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 07171320 e:MotorVehicles 2023-01-01 2023-12-31 07171320 e:FurnitureFittings 2023-01-01 2023-12-31 07171320 e:FurnitureFittings 2023-12-31 07171320 e:FurnitureFittings 2022-12-31 07171320 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 07171320 e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 07171320 e:CurrentFinancialInstruments 2023-12-31 07171320 e:CurrentFinancialInstruments 2022-12-31 07171320 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 07171320 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 07171320 e:ReportableOperatingSegment1 2023-01-01 2023-12-31 07171320 e:ReportableOperatingSegment1 2022-01-01 2022-12-31 07171320 f:UnitedKingdom 2023-01-01 2023-12-31 07171320 f:UnitedKingdom 2022-01-01 2022-12-31 07171320 e:UKTax 2023-01-01 2023-12-31 07171320 e:UKTax 2022-01-01 2022-12-31 07171320 e:ShareCapital 2023-12-31 07171320 e:ShareCapital 2022-12-31 07171320 e:ShareCapital 2022-01-01 07171320 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 07171320 e:RetainedEarningsAccumulatedLosses 2023-12-31 07171320 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 07171320 e:RetainedEarningsAccumulatedLosses 2022-12-31 07171320 e:RetainedEarningsAccumulatedLosses 2022-01-01 07171320 e:AcceleratedTaxDepreciationDeferredTax 2023-12-31 07171320 e:AcceleratedTaxDepreciationDeferredTax 2022-12-31 07171320 d:OrdinaryShareClass1 2023-01-01 2023-12-31 07171320 d:OrdinaryShareClass1 2023-12-31 07171320 d:OrdinaryShareClass1 2022-12-31 07171320 d:OrdinaryShareClass2 2023-01-01 2023-12-31 07171320 d:OrdinaryShareClass2 2023-12-31 07171320 d:OrdinaryShareClass2 2022-12-31 07171320 d:FRS102 2023-01-01 2023-12-31 07171320 d:Audited 2023-01-01 2023-12-31 07171320 d:FullAccounts 2023-01-01 2023-12-31 07171320 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 07171320 e:WithinOneYear 2023-12-31 07171320 e:WithinOneYear 2022-12-31 07171320 e:BetweenOneFiveYears 2023-12-31 07171320 e:BetweenOneFiveYears 2022-12-31 07171320 e:MoreThanFiveYears 2023-12-31 07171320 e:MoreThanFiveYears 2022-12-31 07171320 2 2023-01-01 2023-12-31 07171320 g:PoundSterling 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 07171320










ERRIGAL FACADES LTD










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
ERRIGAL FACADES LTD
 

COMPANY INFORMATION


Directors
Mr Damien Treanor 
Mr Cormac McCloskey 




Company secretary
Damien Treanor



Registered number
07171320



Registered office
8 Oliver Avenue
South Norwood

London

SE25 6TY




Independent auditors
AAB Group Accountants Limited

Howard House

30 Northland Row

Dungannon

Co. Tyrone

BT71 6AP




Bankers
Danske Bank
Donegal Square West

Belfast

Co. Antrim

BT1 6JS





Bank of Ireland

21-25 Campsie Road

Omagh

Co. Tyrone

BT79 0AE




Solicitors
McCollum & Co.
60-64 May Street

Belfast

BT1 4NP





 
ERRIGAL FACADES LTD
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Statement of Comprehensive Income
 
9
Balance Sheet
 
10
Statement of Changes in Equity
 
11
Statement of Cash Flows
 
12
Analysis of Net Debt
 
13
Notes to the Financial Statements
 
14 - 27


 
ERRIGAL FACADES LTD
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present the strategic report for the year ended 31 December 2023.

Business review
 
The principal activity of the company is that of building subcontractors specialising in facades. There has been no significant change in these activities during the year. 
Turnover has increased by 2,450% to £17.1m (2022: £672k). This significant increase was expected due to the timing of contracts. Overall, a net profit before tax of £2.0m was achieved for the year ended 31 December 2023 compared to a net loss before tax of £1.1m reported for the year ended 31 December 2022. The company asset base remains strong, with net assets of £4.7m at 31 December 2023 (2022: £2.8m). The company's directors are satisfied with the company's performance in the year and the emphasis going forward continues to be on securing turnover that will result in sustainable profitability and cash flow.
Pipeline secured for FY24 is strong and the directors believe that the results for the next financial year will show further increases in turnover and profit.

Principal risks and uncertainties
 
The management of the business and the execution of the company's strategy are subject to a number of risks.
The key business risks relate to competition, quality of performance and raw material costs.
The company's operations expose it to a variety of financial risks that include the effects of changes in debt market prices, credit risks, liquidity risk, interest rate risk and inflation risk. The board reviews and agrees policies for the prudent management of these risks as follows: 
Currency Risk
The company's transactions outside of the UK are conducted primarily in Euros, this results in low levels of currency transaction risk, variances affecting operational activities in this regard are reflected in operating costs or in cost of sales in the profit and loss accounts in the years in which they arise. The principal foreign exchange risk is translation-related arising from fluctuation in the sterling value of the company's net investment in euros.
Finance and interest rate risk
The company's objective in relation to interest rate management is to minimise the impact of interest rate volatility on interest costs in order to protect recorded profitability. A long term strategy for the management of the exposure considers the amounts of floating rate debt that is anticipated over the period and the sensitivity of the interest charge on this debt to changes in interest rates, and the resultant impact on reported profitability.
Liquidity and cash flow risk
The company's objective is to maintain a balance between the continuity of funding and flexibility through the use of borrowings with a range of maturities. The company's policy is to ensure that sufficient resources are available either from cash balances, cash flows and near liquid investments to ensure all obligations can be met when they fall due.
Credit risk
Customers who wish to trade on credit terms are subject to strict verification procedures in advance of credit
being awarded and are continually being monitored.
Inflation risk
As a result of the rising rate of inflation the company has seen the impact of this through rising costs. The company have an economic policy in place to review costs regularly and to minimise the impact of these rising costs where possible.
 

Page 1

 
ERRIGAL FACADES LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Financial key performance indicators
 
The company's key performance indicators are as follows:

2023
2022
        £
        £
Increase/(decrease) in turnover

2,450%

(95.1)%
 
Gross profit/(loss) margin

26.4%

(55.8)%
 
Shareholder Equity

£4.7m

£2.8m
 

Other key performance indicators
 
Environment
The company recognises it's responsibility to carry out its operations whilst minimising environmental impacts. The directors' continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste whenever possible. 
Human resources
The company's most important resource is its people, their knowledge and experience is crucial to meeting customer requirements. Retention of key staff is critical. 
Health and safety
The company is committed to achieving the highest practicable standards in health and safety management and strives to makes its sites and offices safe environments for employees and customers alike. 


This report was approved by the board on 19 September 2024 and signed on its behalf.



Mr Damien Treanor
Director

Mr Cormac McCloskey
Director

Page 2

 
ERRIGAL FACADES LTD
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Results and dividends

The profit for the year, after taxation, amounted to £1,926,538 (2022 - loss £1,039,234).

Ordinary dividends were paid amounting to £nil (2022: £7,000,000). The directors do not recommend payment of a final dividend.

Directors

The directors who served during the year were:

Mr Damien Treanor 
Mr Cormac McCloskey 

Auditors

The auditor, AAB Group Accountants Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Future developments

The directors plan is to continue to secure and retain projects which ensures that the company will continue a steady pace of growth in existing and new sectors.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Page 3

 
ERRIGAL FACADES LTD
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

This report was approved by the board on 19 September 2024 and signed on its behalf.
 





Mr Damien Treanor
Director
Mr Cormac McCloskey
Director

Page 4

 
ERRIGAL FACADES LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ERRIGAL FACADES LTD
 

Opinion


We have audited the financial statements of Errigal Facades Ltd (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 5

 
ERRIGAL FACADES LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ERRIGAL FACADES LTD (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report 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 Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
ERRIGAL FACADES LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ERRIGAL FACADES LTD (CONTINUED)


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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory framework applicable to the company through enquiry of management, industry research and the application of cumulative audit knowledge. We identified the following principal laws and regulations relevant to the company - Companies Act 2006 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
We developed an understanding of the key fraud risks to the entity (including how fraud might occur), the controls in place to help mitigate those risks, and the accounts, balances and disclosures within the financial statements which may be susceptible to management bias. Our understanding was obtained through review of the financial statements for significant accounting estimates, analysis of journal entries, walkthrough of the key controls cycles in place and enquiry of management.


As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:


Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.


We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.


Page 7

 
ERRIGAL FACADES LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ERRIGAL FACADES LTD (CONTINUED)


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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Teresa Campbell (Senior Statutory Auditor)
for and on behalf of
AAB Group Accountants Limited
Statutory Auditors
Howard House
30 Northland Row
Dungannon
Co. Tyrone
BT71 6AP

19 September 2024
Page 8

 
ERRIGAL FACADES LTD
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
17,141,775
672,042

Cost of sales
  
(12,618,655)
(1,047,294)

Gross profit/(loss)
  
4,523,120
(375,252)

Administrative expenses
  
(2,459,901)
(1,226,561)

Other operating income
 5 
-
515,000

Operating profit/(loss)
 6 
2,063,219
(1,086,813)

Interest receivable and similar income
 9 
3,069
1

Interest payable and similar expenses
 10 
(104,793)
1,545

Profit/(loss) before tax
  
1,961,495
(1,085,267)

Tax on profit/(loss)
 11 
(34,957)
46,033

Profit/(loss) for the financial year
  
1,926,538
(1,039,234)

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 14 to 27 form part of these financial statements.

Page 9

 
ERRIGAL FACADES LTD
REGISTERED NUMBER: 07171320

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
250,409
219,658

  
250,409
219,658

Current assets
  

Debtors: amounts falling due within one year
 14 
8,738,486
4,900,429

Cash at bank and in hand
 15 
265,261
79,010

  
9,003,747
4,979,439

Creditors: amounts falling due within one year
 16 
(4,546,136)
(2,439,337)

Net current assets
  
 
 
4,457,611
 
 
2,540,102

Total assets less current liabilities
  
4,708,020
2,759,760

Provisions for liabilities
  

Deferred tax
  
(21,722)
-

  
 
 
(21,722)
 
 
-

Net assets
  
4,686,298
2,759,760


Capital and reserves
  

Called up share capital 
  
100
100

Profit and loss account
  
4,686,198
2,759,660

  
4,686,298
2,759,760


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 September 2024.




Mr Damien Treanor
Mr Cormac McCloskey
Director
Director

The notes on pages 14 to 27 form part of these financial statements.

Page 10

 
ERRIGAL FACADES LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
100
10,798,894
10,798,994


Comprehensive income for the year

Loss for the year
-
(1,039,234)
(1,039,234)


Contributions by and distributions to owners

Dividends: Equity capital
-
(7,000,000)
(7,000,000)



At 1 January 2023
100
2,759,660
2,759,760


Comprehensive income for the year

Profit for the year
-
1,926,538
1,926,538


At 31 December 2023
100
4,686,198
4,686,298


The notes on pages 14 to 27 form part of these financial statements.

Page 11

 
ERRIGAL FACADES LTD
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit/(loss) for the financial year
1,926,538
(1,039,234)

Adjustments for:

Depreciation of tangible assets
31,838
22,622

Interest paid
104,793
(1,546)

Interest received
(3,069)
-

Taxation charge
34,957
(46,033)

(Increase)/decrease in debtors
(3,854,712)
1,614,757

Increase/(decrease) in creditors
2,672,633
(579,453)

Net cash generated from operating activities

912,978
(28,887)


Cash flows from investing activities

Purchase of tangible fixed assets
(62,588)
-

Interest received
32
-

Net cash from investing activities

(62,556)
-

Cash flows from financing activities

Loans due from/(repaid to) directors
16,654
(20,984)

Loans to related parties repaid
-
4,613,646

Dividends paid
-
(7,000,000)

Interest paid
(104,793)
1,546

Net cash used in financing activities
(88,139)
(2,405,792)

Net increase/(decrease) in cash and cash equivalents
762,283
(2,434,679)

Cash and cash equivalents at beginning of year
(1,544,764)
889,915

Cash and cash equivalents at the end of year
(782,481)
(1,544,764)


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
265,261
79,010

Bank overdrafts
(1,047,742)
(1,623,774)

(782,481)
(1,544,764)


The notes on pages 14 to 27 form part of these financial statements.

Page 12

 
ERRIGAL FACADES LTD
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

79,010

186,251

265,261

Bank overdrafts

(1,623,774)

576,032

(1,047,742)


(1,544,764)
762,283
(782,481)

The notes on pages 14 to 27 form part of these financial statements.

Page 13

 
ERRIGAL FACADES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Errigal Facades Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 8 Oliver Avenue, South Norwood, London, England, SE25 6TY. 
The principal activity of the company is that of building subcontractors specialising in facades

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.     

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 14

 
ERRIGAL FACADES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 15

 
ERRIGAL FACADES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.11

Tangible fixed assets

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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
2% Straight Line
Plant and machinery
-
25% Straight Line
Motor vehicles
-
25% Straight Line
Fixtures and fittings
-
25% Straight Line

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

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 16

 
ERRIGAL FACADES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.15

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.16

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 
Page 17

 
ERRIGAL FACADES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.16
Financial instruments (continued)


Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 18

 
ERRIGAL FACADES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the Company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Construction contracts
17,141,775
672,042

17,141,775
672,042


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
17,141,775
672,042

17,141,775
672,042



5.


Other operating income

2023
2022
£
£

Sundry income
-
515,000

-
515,000


Page 19

 
ERRIGAL FACADES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Operating profit/(loss)

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

2023
2022
£
£

Exchange differences
112
(217)

Other operating lease rentals
7,200
7,200

Depreciation of owned tangible fixed assets
31,838
22,622


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
8,500
5,000

8.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
539,402
588,535

Social security costs
61,622
71,509

Cost of defined contribution scheme
58,414
51,358

659,438
711,402


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Admin
6
9



Production
3
2

9
11

Page 20

 
ERRIGAL FACADES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Interest receivable

2023
2022
£
£


Other interest receivable
3,069
1

3,069
1


10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
97,662
-

Other interest payable
7,131
(1,545)

104,793
(1,545)


11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
209,657
-

Adjustments in respect of previous periods
(196,422)
-


13,235
-


Total current tax
13,235
-

Deferred tax


Origination and reversal of timing differences
21,722
(46,033)

Total deferred tax
21,722
(46,033)


Tax on profit/(loss)
34,957
(46,033)
Page 21

 
ERRIGAL FACADES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - higher than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit/(loss) on ordinary activities before tax
1,961,495
(1,085,267)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
460,951
(206,201)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,701
1,016

Capital allowances for year in excess of depreciation
(8,767)
8,152

Utilisation of tax losses
(244,228)
-

Adjustment in research and development tax credit leading to a (decrease) in the tax charge
(196,422)
-

Unrelieved tax losses carried forward
-
151,000

Deferred tax
21,722
-

Total tax charge for the year
34,957
(46,033)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Dividends

2023
2022
£
£


Final Paid
-
7,000,000

-
7,000,000

Page 22

 
ERRIGAL FACADES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Tangible fixed assets





Long-term leasehold property
Plant and machinery
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 January 2023
185,631
13,250
134,239
333,120


Additions
-
58,758
3,830
62,588



At 31 December 2023

185,631
72,008
138,069
395,708



Depreciation


At 1 January 2023
14,850
13,250
85,362
113,462


Charge for the year on owned assets
3,713
10,348
17,776
31,837



At 31 December 2023

18,563
23,598
103,138
145,299



Net book value



At 31 December 2023
167,068
48,410
34,931
250,409



At 31 December 2022
170,781
-
48,877
219,658

Page 23

 
ERRIGAL FACADES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Debtors

2023
2022
£
£


Trade debtors
2,451,472
1,018,370

Amounts owed by related parties
4,069,249
3,130,077

Other debtors
45,590
101,699

Prepayments and accrued income
385,321
169,571

Amounts recoverable on long-term contracts
1,786,854
480,712

8,738,486
4,900,429


Amounts owed by related parties are unsecured, interest free and repayable on demand.
Included in other debtors is an amount due from directors of £4,330 (2022: £20,984).


15.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
265,261
79,010

Less: bank overdrafts
(1,047,742)
(1,623,774)

(782,481)
(1,544,764)



16.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
1,047,742
1,623,774

Trade creditors
2,191,594
289,075

Amounts owed to related parties
370,999
32,549

Corporation tax
153,415
143,217

Other taxation and social security
469,513
23,968

Other creditors
247,320
304,047

Accruals and deferred income
65,553
22,707

4,546,136
2,439,337


Amounts owed to related parties are unsecured, interest free and repayable on demand. 
Bank overdrafts are secured by a fixed and floating charge over the assets of the company and a cross guarantee from Errigal Contracts Group Limited, Errigal Contracts Limited, Errigal Commercial Developments Limited and Errigal Contracts Ireland Limited.

Page 24

 
ERRIGAL FACADES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Deferred taxation




2023


£






Charged to profit or loss
(21,722)



At end of year
(21,722)

The deferred taxation balance is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(21,722)
-

(21,722)
-


18.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



5,000 (2022 - 5,000) Ordinary A Shares shares of £0.01 each
50
50
5,000 (2022 - 5,000) Ordinary B Shares shares of £0.01 each
50
50

100

100



19.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £58,414 (2022 - £51,358). Contributions totalling £5,122 (2022 - £5,016) were payable to the fund at the balance sheet date and are included in creditors.

Page 25

 
ERRIGAL FACADES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Within one year
31,050
7,200

Between two and five years
39,400
28,800

In over five years
10,800
25,302

81,250
61,302


21.


Transactions with directors

During the year the company rented a property from Mr C McCloskey, a director in Errigal Facades Ltd, at an annual rent of £7,200 (2022: £7,200).


22.


Related party transactions

The company has taken the exemption in FRS102 not to disclose transactions with any companies that are wholly owned within the group.
During the year the company entered into the following transactions with related parties and the following amounts were outstanding at the reporting end date:


2023
2022
£
£

Sales to related parties
Errigal Contracts Limited
-
249,601
Purchases from related parties
Errigal Contracts Limited
-
403,093
Errigal Services Limited
52,382
1,087
Management charge from related parties
Errigal Contracts Limited
1,173,169
75,000
Amounts due from related parties
Errigal Contracts Limited
4,001,314
3,073,464
Errigal Services Limited
52,538
43,782
Smartwall Install Limited
15,397
12,831
Amounts owed to related parties
Errigal Contracts Limited
(347,519)
(31,245)
Errigal Services Limited
(23,480)
(1,304)

Page 26

 
ERRIGAL FACADES LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


Controlling party

Ms Jane Marie Treanor and Mr Cormac McCloskey are considered to be the ultimate controlling parties.


Page 27