REGISTERED NUMBER: 11451719 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH APRIL 2024 |
FOR |
MCCONNELL GROUP LIMITED |
REGISTERED NUMBER: 11451719 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH APRIL 2024 |
FOR |
MCCONNELL GROUP LIMITED |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH APRIL 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Consolidated Statement of Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 18 |
MCCONNELL GROUP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30TH APRIL 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Manufactory House |
Bell Lane |
Hertford |
Hertfordshire |
SG14 1BP |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30TH APRIL 2024 |
The directors present their strategic report of the company and the group for the year ended 30th April 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company is that of an investment holding company. |
REVIEW OF BUSINESS |
We have delivered another solid year of growth in all aspects of the business. Group revenue has increased from £34.7m (FY23) to £57.5m; Operating Profit from £1.5m (FY23) to £2.4m; and our year end cash position improved from £3.8m (FY23) to £5.5m. |
The profit growth at 61% is slightly behind the revenue growth of 66%, and we attribute this to our investment in establishing a Central Region this year. When that is accounted for, the underlying profit growth is 68%. |
Our opportunities pipeline continues to grow, as we continue to advance our position in the Scotland market and increase our penetration and reputation in England. We enter FY25 with our highest ever recorded percentage of secured and expected orders against budget. |
Our main area of investment in FY24 was people. The management team has been strengthened in depth at all levels, and whilst we retain our SME status and credentials, our management team is full of Tier 1 experience and capability. This brings security and resilience to our service provision and underpins and de-risks our continued growth. |
We strive to be the employer of choice in our sectors and believe that this will lead to us becoming the contractor of choice for our customers. We improved our employee benefits offering again this year with the introduction of free life insurance and "We Care" health cover for all employees, incepted an Employee Forum that engages directly with our main board and owners, and contributed a significant percentage of our gross operating profit to the employee bonus pool. |
The Directors are very pleased with the overall performance of the business in FY24 and would again like to thank all employees, supply chain partners, advisors, and customers for their support, commitment, and loyalty. |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30TH APRIL 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Operational Risk |
The key operational risk remains the management of higher value projects. The risk is mitigated by our continued investment in the management team, recruiting capable managers with relevant experience; our certified quality control procedures; and targeting projects that are comfortably within our leadership and management skill set, focussing on our core business and not overly diversifying. |
Financial Risk |
Rising employment and material costs have affected most businesses in the UK, and it has been widely reported that companies exposed to a high proportion of long-term fixed price projects have experienced significant financial challenges in FY24. |
As reported in FY23, McConnell adopted a strategy of negotiating shared risk with customers, and our supply chain, at inception of contracts, and in FY24 we had zero exposure to long-term fixed price projects. |
McConnell continues to grow and strengthen without experiencing any bad debt or credit encumbrances. We continue to adopt a cautious approach to accounts provisioning, acknowledging the risks that exist within the construction sector. |
The principal financial risk to the business is credit based. The possibility of a customer experiencing solvency issues during a significant project is the main exposure the business faces. This risk has been mitigated by continued diligent credit risk analysis prior to contractual commitment. The business has had no significant bad debts in recent years. All significant projects with customers who are not government or publicly funded are credit risk assessed. Our customer base consists of government & publicly funded organisations, and blue chip private and infrastructure clients. |
Our liquidity risk continues to be mitigated by daily cashflow monitoring. Senior management are provided with real-time cashflow projections to ensure that we have sufficient liquidity to meet all our commitments. An experienced Finance Director and capable Finance and Commercial teams oversee cash management and commercial performance. |
Political Risk |
The general election called for July 2024 brings the spectre of political risk, by way of change of government, or significant manifesto changes from the incumbent party. This could bring about a change in investment policies, and private investment appetite for the UK. |
The mitigation of this risk for McConnell is that our addressable market is made up of the cyclical financial investment required to maintain and update high-value property assets, to allow them to continue to be occupied, functional, rentable, mortgageable, insurable, and leveraged. History has shown us that the building and infrastructure maintenance and refurbishment sectors are extremely resilient to political change, policy change, and recessions. |
It is widely reported that the buildings in many of our sectors have suffered from under-investment over a long period of time, and there is a continued essential and growing need for any government to invest in and improve the condition of built assets in Housing, Health, Education, Public Buildings, and Defence Infrastructure, in order to retain and improve their functionality, and protect their underlying asset value. Add to this, the mandatory requirement to reduce carbon emissions from all built form in the UK, and the national cladding remediation programme, and we consider there is a compelling resilience to our core addressable markets. |
We estimate that the annual spend in the UK for the maintenance and refurbishment of all buildings and infrastructure in the UK, is in the region of £15bn to £17bn. McConnell directly addresses around 75% of that expenditure by geography and work-type, and we have a very small market share of this. Even allowing for a counter-intuitive reduction in investment in our addressable markets, we still see significant opportunity for continued growth and consolidation. |
We are confident that McConnell remains well-placed to continue to develop and grow successfully and has excellent internal and external resilience and opportunity. |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30TH APRIL 2024 |
ON BEHALF OF THE BOARD: |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30TH APRIL 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30th April 2024. |
DIVIDENDS |
No dividends will be distributed for the year ended 30th April 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st May 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30TH APRIL 2024 |
AUDITORS |
The auditors, Cook & Partners Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MCCONNELL GROUP LIMITED |
Opinion |
We have audited the financial statements of McConnell Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30th April 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30th April 2024 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MCCONNELL GROUP LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MCCONNELL GROUP LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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. |
Auditors approach to assessing the risks of material misstatement due to irregularities, including fraud. |
Our approach was as follows: |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity. The following laws and regulations are considered to be significant to the entity: |
- Financial reporting Standard 102 |
- Companies Act 2006 |
- UK General Data Protection Regulation |
We assessed the risks of material misstatement in respect of fraud as follows: |
- Discussed the risk of material misstatement due to irregularities, including fraud with management at the planning stage to confirm that risks had been adequately identified and that the controls in place are sufficient for the size and nature of the business to reduce those risks to an acceptably low level. |
- Undertook an initial analytical review of the financial statements to identify any potentially unusual or unexpected relationships or high risk audit areas. |
- Completed a risk assessment checklist to aid in the identification of Risks for a company of this size and nature. |
- We considered the risk of fraud through management override of controls, a common risk in a company of this size and nature, in response; we incorporated testing of manual journal entries into our audit approach and undertook a purely substantive approach to the audit with no reliance placed on controls. |
- Accounting policies were reviewed at the planning stage to identify any subjective measurements or complex transactions where management would have the potential to show bias. |
- Ensured all in the audit team are aware of the risks identified and particular areas that were susceptible to misstatement and during the audit planning meeting. |
- Throughout the audit additional substantive testing was undertaken in areas where there was perceived to be a medium or high risk of misstatement. |
- Audit testing was undertaken in a manner that was unpredictable in nature, selection and timing when compared to previous years work. |
- The engagement Partners final review of the audit file and financial statements included a detailed review of all areas of medium or high risk identified at the planning stage of the audit. |
Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above: |
- Financial reporting Standard 102, Companies Act 2006 and UK General Data Protection Regulation. The audit team all have a good understanding of the requirements under these laws and regulations common to most trading businesses and were alert throughout the audit to any potential instances of non-compliance. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MCCONNELL GROUP LIMITED |
- Further, at both the planning and completion stage of the audit enquiries where made of management regarding any known instances of fraud or non-compliance with laws and regulations. |
- These representations were corroborated where possible through the review of board minutes and correspondence with HMRC and companies house. No contradictory evidence was noted. |
We consider that the work detailed above has ensured that the likelihood of detection of irregularities including fraud is considered to be high both at management level and during our audit approach. It is however worth noting that there is an inherent difficulty in detecting irregularities and there is no guarantee that all irregularities have been identified. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
Manufactory House |
Bell Lane |
Hertford |
Hertfordshire |
SG14 1BP |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 30TH APRIL 2024 |
2024 | 2023 |
Notes | £'000 | £'000 |
TURNOVER | 57,496 | 34,660 |
Cost of sales | 48,750 | 26,069 |
GROSS PROFIT | 8,746 | 8,591 |
Administrative expenses | 6,379 | 7,128 |
2,367 | 1,463 |
Other operating income | 53 | 28 |
OPERATING PROFIT | 4 | 2,420 | 1,491 |
Interest payable and similar expenses | 5 | 149 | 109 |
PROFIT BEFORE TAXATION | 2,271 | 1,382 |
Tax on profit | 6 | 396 | 221 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,875 |
1,161 |
Profit attributable to: |
Owners of the parent | 1,875 | 1,161 |
Total comprehensive income attributable to: |
Owners of the parent | 1,875 | 1,161 |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
CONSOLIDATED BALANCE SHEET |
30TH APRIL 2024 |
2024 | 2023 |
Notes | £'000 | £'000 | £'000 | £'000 |
FIXED ASSETS |
Intangible assets | 9 | - | - |
Tangible assets | 10 | 1,692 | 1,109 |
Investments | 11 | - | - |
1,692 | 1,109 |
CURRENT ASSETS |
Stocks | 12 | 10 | 10 |
Debtors | 13 | 12,429 | 7,850 |
Cash at bank and in hand | 5,543 | 3,971 |
17,982 | 11,831 |
CREDITORS |
Amounts falling due within one year | 14 | 13,764 | 9,052 |
NET CURRENT ASSETS | 4,218 | 2,779 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
5,910 |
3,888 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(1,030 |
) |
(960 |
) |
PROVISIONS FOR LIABILITIES | 18 | (305 | ) | (228 | ) |
NET ASSETS | 4,575 | 2,700 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 1 | 1 |
Retained earnings | 20 | 4,574 | 2,699 |
SHAREHOLDERS' FUNDS | 4,575 | 2,700 |
The financial statements were approved by the Board of Directors and authorised for issue on 15th October 2024 and were signed on its behalf by: |
Mr Robert Henry McGregor - Director |
Miss Claire Marie Roe - Director |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
COMPANY BALANCE SHEET |
30TH APRIL 2024 |
2024 | 2023 |
Notes | £'000 | £'000 | £'000 | £'000 |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
Company's (loss)/profit for the financial year | (12 | ) | 97 |
The financial statements were approved by the Board of Directors and authorised for issue on |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30TH APRIL 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£'000 | £'000 | £'000 |
Balance at 1st May 2022 | 1 | 1,663 | 1,664 |
Changes in equity |
Dividends | - | (125 | ) | (125 | ) |
Total comprehensive income | - | 1,161 | 1,161 |
Balance at 30th April 2023 | 1 | 2,699 | 2,700 |
Changes in equity |
Total comprehensive income | - | 1,875 | 1,875 |
Balance at 30th April 2024 | 1 | 4,574 | 4,575 |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30TH APRIL 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£'000 | £'000 | £'000 |
Balance at 1st May 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30th April 2023 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 30th April 2024 |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30TH APRIL 2024 |
2024 | 2023 |
Notes | £'000 | £'000 |
Cash flows from operating activities |
Cash generated from operations | 1 | 3,852 | 2,503 |
Interest paid | (90 | ) | (87 | ) |
Interest element of hire purchase payments paid |
(59 |
) |
(22 |
) |
Tax paid | (6 | ) | - |
Net cash from operating activities | 3,697 | 2,394 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (1,094 | ) | (1,108 | ) |
Sale of tangible fixed assets | 43 | 62 |
Net cash from investing activities | (1,051 | ) | (1,046 | ) |
Cash flows from financing activities |
New loans in year | - | 821 |
Loan repayments in year | (1,560 | ) | (170 | ) |
New hire purchase agreements | 785 | - |
Capital repayments in year | (240 | ) | (168 | ) |
Amount introduced by directors | 41 | 100 |
Amount withdrawn by directors | (100 | ) | - |
Equity dividends paid | - | (125 | ) |
Net cash from financing activities | (1,074 | ) | 458 |
Increase in cash and cash equivalents | 1,572 | 1,806 |
Cash and cash equivalents at beginning of year |
2 |
3,971 |
2,165 |
Cash and cash equivalents at end of year | 2 | 5,543 | 3,971 |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30TH APRIL 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£'000 | £'000 |
Profit before taxation | 2,271 | 1,382 |
Depreciation charges | 506 | 262 |
Profit on disposal of fixed assets | (38 | ) | (36 | ) |
Finance costs | 149 | 109 |
2,888 | 1,717 |
Increase in trade and other debtors | (4,579 | ) | (1,195 | ) |
Increase in trade and other creditors | 5,543 | 1,981 |
Cash generated from operations | 3,852 | 2,503 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30th April 2024 |
30.4.24 | 1.5.23 |
£'000 | £'000 |
Cash and cash equivalents | 5,543 | 3,971 |
Year ended 30th April 2023 |
30.4.23 | 1.5.22 |
£'000 | £'000 |
Cash and cash equivalents | 3,971 | 2,165 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.5.23 | Cash flow | At 30.4.24 |
£'000 | £'000 | £'000 |
Net cash |
Cash at bank and in hand | 3,971 | 1,572 | 5,543 |
3,971 | 1,572 | 5,543 |
Debt |
Finance leases | (746 | ) | (545 | ) | (1,291 | ) |
Debts falling due within 1 year | (1,220 | ) | 1,220 | - |
Debts falling due after 1 year | (340 | ) | 340 | - |
(2,306 | ) | 1,015 | (1,291 | ) |
Total | 1,665 | 2,587 | 4,252 |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH APRIL 2024 |
1. | STATUTORY INFORMATION |
McConnell Group Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The |
Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
The financial statements have been prepared in pounds sterling which is the functional currency of the company and rounded to the nearest thousands. |
The significant accounting policies applied in the preparation of these financial statements are set out below. |
Basis of consolidation |
The consolidated financial statements incorporate the financial statements of the parent company. Mcconnell Group Limited and its 100% subsidiary Hugh L S McConnell Limited, and its subsidiaries. No members of the group have been excluded from consolidation. All inter-group balances, transactions, income and expenses are eliminated on consolidation. The consolidated accounts are prepared using uniform accounting policies. |
The consolidated financial statements incorporate the results of business combinations using the purchase method. The results fo acquired subsidiaries are included in the consolidated statements of comprehensive income from the date that control is obtained. |
The cost of a business combination is measured at the aggregate of the fair value (at the date of exchange) of assets given, liabilities incurred or assumed and equity instruments issued by the group in exchange for control of the acquiree, plus costs attributable to the business combination. |
Any excess of the cost of the business over the group 's share of the net fair value of the identifiable assets and liabilities is recognised as goodwill. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
The policy adopted for the recognition of turnover are as follows: |
Construction contracts |
When the outcome of a construction contract can be estimated reliably, contract costs and turnover are |
recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to agreed valuations, current and projected contract costs and expected sales value. Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable. |
When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH APRIL 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Government grants |
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded attransaction price. Any losses arising from impairment are recognised in the profit and loss account in otherexternal charges. |
Cash on the balance sheet comprises cash in hand and cash at bank. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH APRIL 2024 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Employee benefits |
When employees have rendered service to the company, short term benefits (including holiday pay) to which employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that |
service. |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£'000 | £'000 |
Wages and salaries | 8,530 | 5,802 |
Social security costs | 941 | 657 |
Other pension costs | 268 | 308 |
9,739 | 6,767 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Directors | 6 | 5 |
Supervisory, Sales and admin | 107 | 70 |
Production | 55 | 46 |
The average number of employees by undertakings that were proportionately consolidated during the year was 168 (2023 - 121 ) . |
2024 | 2023 |
£ | £ |
Directors' remuneration | 501,963 | 459,251 |
Directors' pension contributions to money purchase schemes | 68,917 | 179,478 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 6 | 5 |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 141,632 | 164,392 |
Pension contributions to money purchase schemes | 11,360 | 12,973 |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH APRIL 2024 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£'000 | £'000 |
Other operating leases | 186 | 162 |
Depreciation - owned assets | 181 | 107 |
Depreciation - assets on hire purchase contracts | 325 | 155 |
Profit on disposal of fixed assets | (38 | ) | (36 | ) |
Auditors' remuneration | 34 | 29 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£'000 | £'000 |
Bank interest & related costs | 79 | 27 |
Loan interest | 11 | 56 |
Hire purchase | 59 | 22 |
Loan arrangement costs | - | 4 |
149 | 109 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£'000 | £'000 |
Current tax: |
UK corporation tax | 435 | 116 |
Prior years | (116 | ) | (83 | ) |
Total current tax | 319 | 33 |
Deferred tax | 77 | 188 |
Tax on profit | 396 | 221 |
UK corporation tax has been charged at 19 % . |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH APRIL 2024 |
6. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£'000 | £'000 |
Profit before tax | 2,271 | 1,382 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19.493 %) |
568 |
269 |
Effects of: |
Expenses not deductible for tax purposes | 10 | 2 |
Adjustments to tax charge in respect of previous periods | (7 | ) | (83 | ) |
Depreciation in excess of capital allowances | - | 11 |
Other timing differences | - | 2 |
Super deduction | - | (21 | ) |
Change in tax rate | 36 | 41 |
Group relief | 15 | - |
R&D enhanced expenditure | (226 | ) | - |
Total tax charge | 396 | 221 |
7. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | DIVIDENDS |
2024 | 2023 |
£'000 | £'000 |
Ordinary A shares of 1 each |
Interim | - | 100 |
Ordinary B shares of 1 each |
Interim | - | 25 |
- | 125 |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH APRIL 2024 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£'000 |
COST |
At 1st May 2023 |
and 30th April 2024 | 422 |
AMORTISATION |
At 1st May 2023 |
and 30th April 2024 | 422 |
NET BOOK VALUE |
At 30th April 2024 | - |
At 30th April 2023 | - |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£'000 | £'000 | £'000 | £'000 |
COST |
At 1st May 2023 | 169 | 376 | 1,179 | 1,724 |
Additions | 1 | 229 | 864 | 1,094 |
Disposals | - | - | (69 | ) | (69 | ) |
At 30th April 2024 | 170 | 605 | 1,974 | 2,749 |
DEPRECIATION |
At 1st May 2023 | 118 | 160 | 337 | 615 |
Charge for year | 18 | 125 | 363 | 506 |
Eliminated on disposal | - | - | (64 | ) | (64 | ) |
At 30th April 2024 | 136 | 285 | 636 | 1,057 |
NET BOOK VALUE |
At 30th April 2024 | 34 | 320 | 1,338 | 1,692 |
At 30th April 2023 | 51 | 216 | 842 | 1,109 |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH APRIL 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£'000 |
COST |
At 1st May 2023 | 867 |
Additions | 785 |
Transfer to ownership | (21 | ) |
At 30th April 2024 | 1,631 |
DEPRECIATION |
At 1st May 2023 | 117 |
Charge for year | 325 |
Transfer to ownership | (21 | ) |
At 30th April 2024 | 421 |
NET BOOK VALUE |
At 30th April 2024 | 1,210 |
At 30th April 2023 | 750 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£'000 |
COST |
At 1st May 2023 |
and 30th April 2024 |
NET BOOK VALUE |
At 30th April 2024 |
At 30th April 2023 |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH APRIL 2024 |
11. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Manufactory House, Bell Lane, Hertford, England, SG14 1BP. |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£'000 | £'000 |
Aggregate capital and reserves |
Profit for the year |
Registered office: 6 Inkerman Place, Kilmarnock, East Ayrshire, KA1 2RL |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£'000 | £'000 |
Aggregate capital and reserves |
Registered office: 6 Inkerman Place, Kilmarnock, Ayrshire, KA1 2RL |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£'000 | £'000 |
Aggregate capital and reserves |
Registered office: 6 Inkerman Place, Kilmarnock, Ayrshire, KA1 2RL |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 6 Inkerman Place, Kilmarnock, East Ayrshire, KA1 2RL |
Nature of business: |
% |
Class of shares: | holding |
Subsequent to the financial year ended 30 April 2024, the above dormant subsidiaries went into the dissolution therefore the investments in these subsidiaries were written off at no gain/loss. |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH APRIL 2024 |
12. | STOCKS |
Group |
2024 | 2023 |
£'000 | £'000 |
Stocks | 10 | 10 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£'000 | £'000 | £'000 | £'000 |
Trade debtors | 8,546 | 4,185 |
Other debtors | - | - |
Prepayments and accrued income | 3,664 | 3,571 |
Prepayments | 219 | 94 |
12,429 | 7,850 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£'000 | £'000 | £'000 | £'000 |
Bank loans and overdrafts (see note 16) | - | 170 |
Other loans (see note 16) | - | 1,050 |
Hire purchase contracts (see note 17) | 261 | 126 |
Payments on account | - | 1,380 |
Trade creditors | 5,081 | 1,364 |
Amounts owed to group undertakings | - | - |
Tax | 435 | 122 |
Social security and other taxes | 1,921 | 1,281 |
Other creditors | 73 | - |
Directors' current accounts | 41 | 100 | - | 100 |
Accrued expenses | 5,952 | 3,459 |
13,764 | 9,052 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2024 | 2023 |
£'000 | £'000 |
Bank loans (see note 16) | - | 340 |
Hire purchase contracts (see note 17) | 1,030 | 620 |
1,030 | 960 |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH APRIL 2024 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£'000 | £'000 | £'000 | £'000 |
Amounts falling due within one year or on | demand: |
Bank loans | - | 170 |
Other loans | - | 1,050 |
- | 1,220 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | - | 170 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | - | 170 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£'000 | £'000 |
Gross obligations repayable: |
Within one year | 339 | 167 |
Between one and five years | 1,109 | 683 |
1,448 | 850 |
Finance charges repayable: |
Within one year | 78 | 41 |
Between one and five years | 79 | 63 |
157 | 104 |
Net obligations repayable: |
Within one year | 261 | 126 |
Between one and five years | 1,030 | 620 |
1,291 | 746 |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH APRIL 2024 |
17. | LEASING AGREEMENTS - continued |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£'000 | £'000 |
Within one year | 352 | 200 |
Between one and five years | 853 | 482 |
In more than five years | - | 25 |
1,205 | 707 |
18. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£'000 | £'000 |
Deferred tax |
Deferred tax | 228 | 232 |
Provided during year | 77 | (4 | ) |
305 | 228 |
Group |
Deferred |
tax |
£'000 |
Balance at 1st May 2023 | 228 |
Provided during year | 77 |
Balance at 30th April 2024 | 305 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £'000 | £'000 |
Ordinary A | 1 | 1 | 1 |
Ordinary B | 1 | - | - |
1 | 1 |
Ordinary A and Ordinary B shares have full rights with respect to voting, dividends and other distributions, save that the directors may declare a different rate of dividend on the Ordinary A and Ordinary B shares. |
MCCONNELL GROUP LIMITED (REGISTERED NUMBER: 11451719) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH APRIL 2024 |
20. | RESERVES |
Group |
Retained |
earnings |
£'000 |
At 1st May 2023 | 2,699 |
Profit for the year | 1,875 |
At 30th April 2024 | 4,574 |
Company |
Retained |
earnings |
£'000 |
At 1st May 2023 |
Deficit for the year | ( |
) |
At 30th April 2024 |
21. | CONTINGENT LIABILITIES |
On completion of some of its roofing contracts, a subsidiary company provides a written guarantee for its works. Under the terms of the guarantees, which mostly last for ten years, a subsidiary company is required to make good any defects which appear in its work during the guarantee period. |
This guarantee system has been in place for over ten years and, in general, only minor repairs (if any) have been required. Since any estimate of the future costs of these minor repairs would be wholly subjective, no provision is made for them in the accounts and their cost is charged to the profit and loss account in the year in which they occur. If however any substantial post year end repairs are identified, the cost of such repairs would be accrued in the accounts. |
After the year end the company entered into an agreement with IGF Business Credit Limited for invoice discounting facility of up to £7m, which is secured on the group assets. |
22. | RELATED PARTY DISCLOSURES |
During this period, the company repaid a loan of £850,000 to Criterion Homes Limited, where R H McGregor serves as a director. Additionally, loans totaling £300,000 were repaid to both R H McGregor and E McGarvey, who are directors and shareholders of the company. |
23. | ULTIMATE CONTROLLING PARTY |
Hugh L S McConnell Limited is a wholly-owned subsidiary of McConnell Group Limited, an entity incorporated in England and Wales with its registered office at Manufactory House, Bell Lane, Hertford, England, SG14 1BP. The subsidiary's company's financial results have been in this consolidated financial statements. |
On 17 July 2024, McConnell Group Holdings Limited, also incorporated in England and Wales with its registered office at the same address, acquired 100% of the shares of McConnell Group Limited. |
The ultimate controlling parties are Robert McGregor, Eamonn McGarvey, Jon Wallis, David Kelly, and Stephen Allen. |