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Company registration number: 07725772







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2024


MOSTRIM GROUNDWORKS LTD






































img2bb3.png                        

 


MOSTRIM GROUNDWORKS LTD
 


 
COMPANY INFORMATION


Directors
L Clarke 
S P Clarke 
D R Lane 
T Sandels 




Registered number
07725772



Registered office
119 Kingston Road
Leatherhead

Surrey

KT22 7SU




Independent auditors
Menzies LLP
Chartered Accountants & Senior Statutory Auditor

Ashcombe House

5 The Crescent

Leatherhead

Surrey

KT22 8DY





 


MOSTRIM GROUNDWORKS LTD
 



CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Statement of Income and Retained Earnings
9
Statement of Financial Position
10
Statement of Cash Flows
11
Analysis of Net Debt
12
Notes to the Financial Statements
13 - 24

 


MOSTRIM GROUNDWORKS LTD
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

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

Business review
 
Mostrim Groundworks are an established groundworks and civil engineering company, undertaking work for various clients.
During the year company worked on around twenty-five sites and we continue to invest in providing quality out comings for our clients as well as health and safety to provide safe working conditions for our staff and sub-contractors.
Our strategy is growing organically by providing a quality service, retaining funds to undertake increased workloads in the future.
Post our year end we continue to win new work in a challenging market with the expectation of maintain turnover levels through out the current year and with the new government’s intention to increase new build housing it may possible to exceed this level.
The company has built strong trading relationships both with its clients and suppliers over the last 13 years.
We maintain a policy of paying our suppliers promptly in line with normal trade terms and find this generates much goodwill for the company with our trading partners.

Principal risks and uncertainties
 
Price risk due to fixed rate contracts and inflationary pressure on materials and other direct costs this is managed where possible by fixing prices with suppliers at the out set of new contracts.
  
Health and Safety is risk which we keep under review with site inspections and manage with training our staff and sub-contractors.
Mostrim Groundworks is primarily reliant on the UK housing market and demand can be volatile.  We constantly check our forward order book as well as the level of work being tender for to manage cash liquidity and business activity forecasts, in order to make timely adjustment to our operating capacity.
Trade debtors represent about 44% of the net balance sheet value and this is made up of retentions held by clients both for ongoing and completed work.  This risk is managed by checking the statutory accounts of clients we under take work for.  Long-term statistical analysis suggests about 5% of retentions are not recovered.

Financial key performance indicators
 
Both gross & net margins have returned closer to the more average levels seen over the last seven years.
The company continues to maintain a strong balance sheet with cash reserves and foreseeable income able to meet our obligations as they fall due.
The profit margins have recovered from the levels see for the year ended 31 March 2023 which were affected, by changes in fuel duty for plant operating on site together with general price inflation on materials and labour costs.  The fixed price nature of long-term contracts, required the company to absorb most of these price increases during that year.
The sales revenue growth trend over the last seven years is about 15%, although individual years have come in both above and below this trend line.
                                         Year End 31/03/2024      Year End 31/03/2023      Year End 31/03/2022
Revenue Growth                            15.1%                              7.7%                                     72%
Gross Margin                                  14.3%                             10.9%                                    19.5%
Net Margin                                       7.23%                             3.57%                                    11%

Page 1

 


MOSTRIM GROUNDWORKS LTD
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Other key performance indicators
 
There are no further key performance indicators.

Future developments
 
The forward order book as at 31 March 2024 stood at £39 Million.
We are currently tendering a further £52 Million worth of work and our average success rate is about 20%.


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



L Clarke
Director

Date: 4 October 2024
Page 2

 


MOSTRIM GROUNDWORKS LTD
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their report and the financial statements for the year ended 31 March 2024.

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;

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.

Results and dividends

The profit for the year, after taxation, amounted to £1,536,747 (2023 - £713,171).

Dividends totalling £1,252,863 (2023 - £941,181) were paid during the year.

Directors

The directors who served during the year were:

L Clarke 
S P Clarke 
D R Lane (appointed 16 June 2023)
T Sandels 

Matters covered in the strategic report

The company has chosen in accordance with Section 414c(11) of the Companies Act 2006 (Strategic Report and Director's
Report) Regulation 2013 to set out within the company's Strategic Report the Company's Report Information Required by
Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulations 2008. This
included information that would have been included in the business review, future developments and details of principal risk and uncertainties.

Page 3

 


MOSTRIM GROUNDWORKS LTD
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

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.

Auditors

Under section 487(2) of the Companies Act 2006Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

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





L Clarke
Director

Date: 4 October 2024

119 Kingston Road
Leatherhead
Surrey
KT22 7SU
Page 4

 


MOSTRIM GROUNDWORKS LTD
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MOSTRIM GROUNDWORKS LTD

Opinion


We have audited the financial statements of Mostrim Groundworks Ltd (the 'Company') for the year ended 31 March 2024, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position, the Statement of Cash Flows 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 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 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

 


MOSTRIM GROUNDWORKS LTD


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MOSTRIM GROUNDWORKS 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

 


MOSTRIM GROUNDWORKS LTD


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MOSTRIM GROUNDWORKS 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:

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting
legislation. We determined that the following laws and regulations were most significant including:

The Companies Act 2006;
Financial Reporting Standard 102;
UK tax legislation;
UK employment legislation;
UK health and safety legislation; 
General Data Protection Regulations; and
Construction (Design and Management) Regulations 2015.
 
We assessed the extent of compliance with these laws and regulations as part of our procedures on the related
financial statement items.

We understood how the Company is complying with those legal and regulatory frameworks by making enquires to
management and those responsible for legal and compliance procedures. We corroborated our enquires through our
review of board minutes.

The engagement responsible individual assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.

We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud
might occur. Audit procedures performed by the engagement team included:

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

As a result of the above procedures, we considered the opportunities and incentives that may exist within the
organisation for fraud and identified the greatest potential for fraud in the following areas:

The application of inappropriate judgements or estimation to manipulate the Company's financial position;
Posting of unusual journals and complex transactions;
The use of management override of controls to manipulate results, or to cause the Company to enter into
transactions not in its best interests.


 
Page 7

 


MOSTRIM GROUNDWORKS LTD


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MOSTRIM GROUNDWORKS LTD (CONTINUED)

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading
to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that
compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we
will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring
due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Auditors' Report.


Other matters 
 

The comparative figures are unaudited.


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.





Anna Johnston ACA (Senior Statutory Auditor)
for and on behalf of
Menzies LLP
Chartered Accountants
Senior Statutory Auditor
Ashcombe House
5 The Crescent
Leatherhead
Surrey
KT22 8DY

4 October 2024
Page 8

 


MOSTRIM GROUNDWORKS LTD
 


 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2024

2024
Unaudited 2023
Note
£
£

  

Turnover
 4 
28,632,453
24,873,471

Cost of sales
  
(24,537,216)
(22,153,342)

Gross profit
  
4,095,237
2,720,129

Administrative expenses
  
(2,166,166)
(1,830,947)

Other operating income
 5 
141,222
-

Operating profit
  
2,070,293
889,182

Interest receivable and similar income
 10 
48,721
5,295

Interest payable and similar expenses
 11 
(47,387)
(3,053)

Profit before tax
  
2,071,627
891,424

Tax on profit
 12 
(534,880)
(178,253)

Profit after tax
  
1,536,747
713,171

  

  

Retained earnings at the beginning of the year
  
4,063,890
4,291,900

  
4,063,890
4,291,900

Profit for the year
  
1,536,747
713,171

Dividends declared and paid
  
(1,252,863)
(941,181)

Retained earnings at the end of the year
  
4,347,774
4,063,890

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of income and retained earnings.

The notes on pages 13 to 24 form part of these financial statements.

Page 9

 


MOSTRIM GROUNDWORKS LTD
REGISTERED NUMBER:07725772



STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024

2024
Unaudited 
and restated
2023
Note
£
£

Fixed assets
  

Tangible assets
 13 
15,014
19,235

  
15,014
19,235

Current assets
  

Debtors: amounts falling due after more than one year
 14 
451,394
225,067

Debtors: amounts falling due within one year
 14 
3,641,400
2,905,383

Cash at bank and in hand
  
3,709,251
1,781,246

  
7,802,045
4,911,696

Creditors: amounts falling due within one year
 15 
(3,469,079)
(866,936)

Net current assets
  
 
 
4,332,966
 
 
4,044,760

Total assets less current liabilities
  
4,347,980
4,063,995

  

Net assets
  
4,347,980
4,063,995


Capital and reserves
  

Called up share capital 
 17 
206
105

Profit and loss account
  
4,347,774
4,063,890

  
4,347,980
4,063,995


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




L Clarke
D R Lane
Director
Director


Date: 4 October 2024
Date:4 October 2024

The notes on pages 13 to 24 form part of these financial statements.

Page 10

 


MOSTRIM GROUNDWORKS LTD
 



STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024

2024
Unaudited 2023
£
£

Cash flows from operating activities

Profit for the financial year
1,536,747
713,171

Adjustments for:

Depreciation of tangible assets
3,935
13,008

Loss on disposal of tangible assets
(6,577)
5,391

Interest paid
(10,578)
(3,053)

Interest received
48,533
5,295

Taxation charge
534,800
178,253

(Increase)/decrease in debtors
(955,294)
656,955

(Increase)/decrease in amounts owed by related parties
(7,050)
-

Increase/(decrease) in creditors
2,353,031
(1,510,427)

Corporation tax (paid)
(285,688)
(178,253)

Net cash generated from operating activities

3,211,859
(119,660)


Cash flows from investing activities

Sale of tangible fixed assets
6,863
39,104

Interest received
(48,533)
(5,295)

Net cash from investing activities

(41,670)
33,809

Cash flows from financing activities

Issue of ordinary shares
101
5

Dividends paid
(1,252,863)
(941,182)

Interest paid
10,578
3,053

Net cash used in financing activities
(1,242,184)
(938,124)

Net increase/(decrease) in cash and cash equivalents
1,928,005
(1,023,975)

Cash and cash equivalents at beginning of year
1,781,246
2,805,221

Cash and cash equivalents at the end of year
3,709,251
1,781,246


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,709,251
1,781,246

3,709,251
1,781,246


The notes on pages 13 to 24 form part of these financial statements.

Page 11

 


MOSTRIM GROUNDWORKS LTD
 



ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2024




At 1 April 2023
Cash flows
At 31 March 2024
£

£

£

Cash at bank and in hand

1,781,246

1,928,005

3,709,251


1,781,246
1,928,005
3,709,251

The notes on pages 13 to 24 form part of these financial statements.
Page 12

 


MOSTRIM GROUNDWORKS LTD
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.


General information

Mostrim Groundworks Ltd is a private company, limited by shares, incorporated in England and Wales. The address of the registered office and the principal place of business is detailed on the company information page of these financial statements.

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 functional and presentational currency is sterling, and these financial statements are rounded to the nearest whole £.

The following principal accounting policies have been applied:

 
2.2

Revenue

Turnover is measured at the fair value of the consideration received or receivable for the services provided net of discounts and value added tax.
Construction contracts
When the outcome of a construction contract can be estimated reliably, contract revenue and contract costs are recognised as revenue and expenses respectively by reference to the stage of completion of the contract activity at the balance sheet date ("percentage of completion method"). 
When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred that are likely to be recoverable. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately. 

 
2.3

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.

 
2.4

Interest income

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

 
2.5

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 Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Page 13

 


MOSTRIM GROUNDWORKS LTD
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.6

Taxation

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 reporting 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 reporting 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 reporting date.

 
2.7

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:

Plant and machinery
-
10%
Motor vehicles
-
20%
Fixtures and fittings
-
10%
Office equipment
-
10%

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.

Page 14

 


MOSTRIM GROUNDWORKS LTD
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.8

Work in progress valuation

Work-in-progress is measured on a percentage of completion basis and is recognised by reference to the ratios of contract costs incurred to date to the estimated total costs for the contract. Costs incurred during the financial year in connection with future activity on a contract are excluded from the costs incurred to date when determining the stage of completion of a contract. Such costs are shown as construction contract work-in-progress on the balance sheet unless it is not probable that such contract costs are recoverable from the customers, in which case, such costs are recognised as an expense immediately.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.9

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial
assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans
to related parties and investments in ordinary shares.

 
2.10

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 directors at a board meeting.

Page 15

 


MOSTRIM GROUNDWORKS LTD
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amount reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:
Work in progress valuation and stage of completion
Work in progress is measured by comparing budgeted costs against the actual costs incurred to date and the percentage of the project completed.
The percentage of project completion is calculated against budgeted sales and actual sales to date.
Budgets are checked and revised as the projects progresses.
The calculated model assumes the budgeted profit is taken evenly throughout the life of the project.  Should a loss be forecast for a project the whole loss is taken at that point.
The calculated model produces either a work in progress figure or a payment on account for each of the current active projects.
Closing Work in Progress
The work in progress and payments on account figures are moved from the profit and loss account to the Balance sheet as an asset or current liability as the case may be.   
Opening work in progress
The work in progress and payments on account amounts from the prior year are moved from the Balance Sheet back to the Profit and Loss account.


4.


Turnover

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


2024
Unaudited 2023
£
£

Revenue from construction contracts
28,632,453
24,873,471

28,632,453
24,873,471


All turnover arose within the United Kingdom.

Page 16

 


MOSTRIM GROUNDWORKS LTD
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

5.


Other operating income

2024
Unaudited 2023
£
£

Other operating income
141,222
-

141,222
-



6.


Operating profit

The operating profit is stated after charging:

2024
Unaudited 2023
£
£

Depreciation
3,935
13,007

Profit/(loss) on sale of fixed assets
6,577
(5,391)

Building operating lease rentals
46,837
44,000

Other operating lease rentals
22,741
19,616


7.


Auditors' remuneration

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


2024
Unaudited 2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
27,250
-

Fees payable to the Company's auditors in respect of:

All non-audit services not included above
7,025
-
Page 17

 


MOSTRIM GROUNDWORKS LTD
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

8.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
Unaudited 2023
£
£

Wages and salaries
928,798
582,559

Social security costs
110,886
68,236

Cost of defined contribution scheme
12,735
11,629

1,052,419
662,424


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


        2024
   Unaudited 2023
            No.
            No.







Construction
3
3



Quantity Surveyor
5
5



Operations
2
2



Finance
4
3



Buyers
1
1



HR Training
1
1

16
15


9.


Directors' remuneration

2024
Unaudited 2023
£
£

Directors' emoluments
503,684
144,667

Company contributions to defined contribution pension schemes
3,831
2,386

507,515
147,053


During the year retirement benefits were accruing to 3 directors (2023 - 3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £168,667 (2023 - £96,667).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,255 (2023 - £1,321).

Page 18

 


MOSTRIM GROUNDWORKS LTD
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

10.


Interest receivable

2024
Unaudited 2023
£
£


Other interest receivable
48,721
5,295

48,721
5,295


11.


Interest payable and similar expenses

2024
Unaudited 2023
£
£


Bank interest payable
10,578
3,053

Other interest payable
36,809
-

47,387
3,053


12.


Taxation


2024
Unaudited 2023
£
£

Corporation tax


Current tax on profits for the year
535,898
178,253

Adjustments in respect of previous periods
(1,018)
-


534,880
178,253


Total current tax
534,880
178,253

Deferred tax

Total deferred tax
-
-


Tax on profit
534,880
178,253
Page 19

 


MOSTRIM GROUNDWORKS LTD
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
2,071,627
891,424


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
517,907
169,371

Effects of:


Expenses not deductible for tax purposes
5,901
-

Capital allowances for year in excess of depreciation
8,336
8,882

Adjustments to tax charge in respect of prior periods
(1,018)
-

Deferred tax not recognised
3,754
-

Total tax charge for the year
534,880
178,253


Factors that affected the tax charge

There are no factors which may affect future tax charges.



 

Page 20

 


MOSTRIM GROUNDWORKS LTD
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

13.


Tangible fixed assets





Plant and machinery
Motor vehicles
Fixtures and fittings
Office equipment
Total

£
£
£
£
£



Cost 


At 1 April 2023 (unaudited)
15,795
58,140
23,335
2,793
100,063


Disposals
(1,845)
(28,800)
(125)
(52)
(30,822)



At 31 March 2024

13,950
29,340
23,210
2,741
69,241



Depreciation


At 1 April 2023 (unaudited)
12,860
58,140
8,931
897
80,828


Charge for the year
1,395
-
2,273
267
3,935


Disposals
(1,700)
(28,800)
(25)
(11)
(30,536)



At 31 March 2024

12,555
29,340
11,179
1,153
54,227



Net book value



At 31 March 2024
1,395
-
12,031
1,588
15,014



At 31 March 2023 (unaudited)
2,935
-
14,404
1,896
19,235


14.


Debtors

2024
Unaudited 
 and restated
 2023
£
£

Due after more than one year

Trade debtors
451,394
225,067

451,394
225,067


2024
Unaudited 
 and restated
 2023
£
£

Due within one year

Trade debtors
1,455,118
1,295,984

Other debtors
1,091,903
5,100

Amounts recoverable on long-term contracts
1,094,379
1,604,299

3,641,400
2,905,383


Page 21

 


MOSTRIM GROUNDWORKS LTD
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

15.


Creditors: Amounts falling due within one year

2024
Unaudited 
 and restated
2023
£
£

Trade creditors
2,333,936
677,828

Corporation tax
249,112
-

Other taxation and social security
42,609
41,356

Other creditors
17,587
14,722

Accruals and deferred income
825,835
133,030

3,469,079
866,936



16.


Prior year adjustments

Restated 2023
2023
£
£



Stock
-
1,471,269

Debtors
3,130,450
1,526,151

Creditors
866,936
733,906

It was identified that in the prior year that WIP and payments received on account for long term contracts were netted off in the balance sheet. For the current year this has been split out between work in progress and payments received on account in debtors and creditors. Therefore, for comparative purposes we have restated the 2023 comparative figures to ensure the financial statements show a true and fair view. There is no tax or profit impact as a result of this reclassification.


17.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



200 (2023 - 100) Ordinary shares of £1.00 each
200
100
5 (2023 - 5) A shares of £1.00 each
5
5
1 (2023 - ) B share of £1.00
1
-

206

105


Page 22

 


MOSTRIM GROUNDWORKS LTD
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

17.Share capital (continued)

The company has three classes of shares, being £1 Ordinary shares, £1 A shares and £1 B shares. 
The holders of the A and B shares shall not be entitled by reason of their holding of such shares to receive notice of, attend or vote at any general meeting of the company. 
The A and B shares shall on redemption or a winding up or other repayment of capital entitle the holders to have the assets of the company available for distribution amongst the members applied, in priority to any other class of shares, in paying to them pari passu the capital payable on such shares, but the holders thereof shall not be entitled to share in any surplus capital or further payment.


18.


Reserves

Profit and loss account

The reserves record retained earnings and accumulated losses.


19.


Contingent liabilities

Lloyds Bank Plc hold a first legal charge over the Company's leasehold property and a fixed and floating charge over all property or undertaking of the Company. As at 31 March 2024, the Company had no bank borrowings with Lloyds Bank Plc (2023 - £Nil).


20.


Pension commitments

The pension cost charge represents contributions payable by the Company to the fund and amounted to £12,735
(2023 - £11,629). Contributions totalling £1,146 (2023 - £1,071) were receivable to the fund at the reporting date
and are included in debtors.


21.


Commitments under operating leases

At 31 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
Unaudited 2023
£
£


Not later than 1 year
47,300
44,000

Later than 1 year and not later than 5 years
92,400
144,100

139,700
188,100

Page 23

 


MOSTRIM GROUNDWORKS LTD
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

22.


Related party transactions

Included cost of sales are plant hire expenses totalling £662,593 (2023 - £499,444) paid to companies under common control.
Included within administrative expenses are marketing expenses totalling £Nil (2023 - £313,500) and rental expenses totalling £44,000 (2023 - £44,000) paid to companies under common control.
Included within other debtors as at 31 March 2024 is £7,050 (2023 - £Nil) due from companies under common control. 
Included within other creditors as at 31 March 2024 is £116,508 (2023 - £33,704) due to companies under common control. 
During the year the company incurred fees totalling £75,613 (2023: £nil) in connection with professional services provided by a company controlled by a Director. The fees were charged on an arms’ length basis.
Transactions with directors:


As at 
1 April 
2023
Movement in the year
As at 
31 March 2024
£
£
£

S Clarke
397
(397)
-
L Clarke
397
(397)
-
794
(794)
-




23.


Controlling party

The ultimate controlling party is Stephen Clarke.
 
Page 24