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Registration number: 04940619

Morgan Construction Wales Limited

REPORT OF THE DIRECTORS and Unaudited Financial Statements

for the Year Ended 31 January 2024

 

Morgan Construction Wales Limited

Contents

Company Information

1

Directors' Report

2 to 3

Accountants' Report

4

Balance Sheet

5 to 6

Notes to the Unaudited Financial Statements

7 to 14

 

Morgan Construction Wales Limited

Company Information

Directors

Mr Paul John Morgan

Mrs Kathryn Morgan

Mr Matthew John Morgan

Company secretary

Mrs Kathryn Morgan

Registered office

The Old Tin Works
Priory Street
Carmarthen
Carmarthenshire
SA31 1NR
 

Accountants

Wynne & Co
Chartered Accountants
Forestry House
Brewery Road
Carmarthen
Carmarthenshire
SA31 1TF

 

Morgan Construction Wales Limited

Directors' Report
for the Year Ended 31 January 2024

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

Directors of the company

The directors who held office during the year were as follows:

Mr Paul John Morgan

Mrs Kathryn Morgan - Company secretary and director

Mr Matthew John Morgan (appointed 30 November 2023)

Principal activity

The principal activity of the company is construction of domestic buildings

Statement of directors responsibilities

The directors acknowledge their responsibilities for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Small companies provision statement

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

 

Morgan Construction Wales Limited

Directors' Report
for the Year Ended 31 January 2024

Fair review of the business

This narrative has been prepared by the Directors in support of the Annual Accounts and provide an update from the business for the period.

The Contracting business has generally performed in line with business plan expectations with a mix of build contracts for housing association Clients and open market housing for the group development arm – Morgan Developments Wales Limited.

Although open market housing sales have suffered a slow down from the overall effect of increased interest rates, the Company has mitigated this by ensuring the contracting arm of the business continues to paid promptly for works undertaken. Programmes and cashflow projections have been adhered to as the Company continues to see benefits from utilising Modern Methods of Construction on its housing products.

The wider group successfully attained planning consent for a flagship development of 54 units in Saundersfoot and work commenced in Q1 of 2024. Meanwhile the Company was awarded the final phase at Sageston which will see the overall development of 100 units be completed around Q3 of 2024.

The main development within the period saw the Company move to a new site in Carmarthen co-located with associated plant and tool hire business M-Plant Hire Ltd. Morgan Construction Wales Limited and M-Plant Hire Ltd are now wholly owned subsidiaries of MCW Group Ltd, which has invested circa £0.5M in new offices, a HGV Workshop and the Plant Hire business in the period. In addition, this relocation has allowed us to develop a manufacturing base for timber frame kits to serve our own developments, providing further cost savings and quality assurance for our products. These developments will help diversify the Group income whilst maximising the value from current people and equipment resource.

Looking forward to the year ahead Morgan Construction Wales Ltd forecasts similar sales for 2024/25 with all work secured; and forecasting improved profit margins. The Company is pursuing some mixed tenure housing contracting work on the site in Ysyradgynlais with clients including Millbay, Ateb, Pobl and Morgan Developments Wales Ltd.

Approved by the Board on 9 October 2024 and signed on its behalf by:

.........................................
Mr Paul John Morgan
Director

 

Chartered Accountants' Report to the Board of Directors
on the Preparation of the Unaudited Statutory Accounts of
Morgan Construction Wales Limited
for the Year Ended 31 January 2024

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Morgan Construction Wales Limited for the year ended 31 January 2024 as set out on pages 5 to 14 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/regulation.

This report is made solely to the Board of Directors of Morgan Construction Wales Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Morgan Construction Wales Limited and state those matters that we have agreed to state to the Board of Directors of Morgan Construction Wales Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Morgan Construction Wales Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Morgan Construction Wales Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Morgan Construction Wales Limited. You consider that Morgan Construction Wales Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Morgan Construction Wales Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

Wynne & Co
Chartered Accountants
Forestry House
Brewery Road
Carmarthen
Carmarthenshire
SA31 1TF

9 October 2024

 

Morgan Construction Wales Limited

(Registration number: 04940619)
Balance Sheet as at 31 January 2024

Note

31 January
2024
£

31 January
2023
£

Fixed assets

 

Tangible assets

4

916,053

969,054

Current assets

 

Stocks

5

2,484,988

2,187,965

Debtors

6

750,435

138,694

Cash at bank and in hand

 

192,175

1,112,302

 

3,427,598

3,438,961

Creditors: Amounts falling due within one year

7

(2,850,300)

(2,707,439)

Net current assets

 

577,298

731,522

Total assets less current liabilities

 

1,493,351

1,700,576

Creditors: Amounts falling due after more than one year

7

(800,593)

(1,047,801)

Net assets

 

692,758

652,775

Capital and reserves

 

Called up share capital

8

100

100

Retained earnings

692,658

652,675

Shareholders' funds

 

692,758

652,775

For the financial year ending 31 January 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

 

Morgan Construction Wales Limited

(Registration number: 04940619)
Balance Sheet as at 31 January 2024

Approved and authorised by the Board on 9 October 2024 and signed on its behalf by:
 

.........................................
Mr Matthew John Morgan
Director

 

Morgan Construction Wales Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 January 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
The Old Tin Works
Priory Street
Carmarthen
Carmarthenshire
SA31 1NR
United Kingdom

These financial statements were authorised for issue by the Board on 9 October 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

Morgan Construction Wales Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 January 2024

Tax

The tax expense for the period comprises tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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 taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

12.5% on cost

Fixtures and fittings

25% on cost

Motor vehicles

25% on cost

Computer equipment

33% on cost

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Morgan Construction Wales Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 January 2024

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

Morgan Construction Wales Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 January 2024

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 39 (2023 - 45).

 

Morgan Construction Wales Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 January 2024

4

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 February 2023

-

16,798

349,288

1,386,498

1,752,584

Additions

85,040

1,579

-

10,080

96,699

At 31 January 2024

85,040

18,377

349,288

1,396,578

1,849,283

Depreciation

At 1 February 2023

-

12,283

177,389

593,858

783,530

Charge for the year

5,062

1,623

42,975

100,040

149,700

At 31 January 2024

5,062

13,906

220,364

693,898

933,230

Carrying amount

At 31 January 2024

79,978

4,471

128,924

702,680

916,053

At 31 January 2023

-

4,515

171,899

792,640

969,054

Included within the net book value of land and buildings above is £79,978 (2023 - £Nil) in respect of long leasehold land and buildings.
 

 

Morgan Construction Wales Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 January 2024

5

Stocks

31 January
2024
£

31 January
2023
£

Work in progress

2,428,838

2,133,315

Other inventories

56,150

54,650

2,484,988

2,187,965

6

Debtors

Current

31 January
2024
£

31 January
2023
£

Trade debtors

27,621

-

Prepayments

5,509

1,000

Other debtors

30,000

-

Owed by/(from) related parties

660,816

69,437

VAT

26,489

68,257

 

750,435

138,694

 

Morgan Construction Wales Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 January 2024

7

Creditors

Creditors: amounts falling due within one year

Note

31 January
2024
£

31 January
2023
£

Due within one year

 

Bank loans and overdrafts

9

219,825

208,401

Trade creditors

 

1,809,975

1,673,671

Amounts owed to group undertakings and undertakings in which the company has a participating interest

11

81,189

76,689

Taxation and social security

 

40,276

54,239

Accruals and deferred income

 

456,734

525,790

Other creditors

 

242,301

168,649

 

2,850,300

2,707,439

Creditors: amounts falling due after more than one year

Note

31 January
2024
£

31 January
2023
£

Due after one year

 

Loans and borrowings

9

800,593

1,047,801

8

Share capital

Allotted, called up and fully paid shares

31 January
2024

31 January
2023

No.

£

No.

£

Ordinary of £1 each

100

100

100

100

       
 

Morgan Construction Wales Limited

Notes to the Unaudited Financial Statements
for the Year Ended 31 January 2024

9

Loans and borrowings

Non-current loans and borrowings

31 January
2024
£

31 January
2023
£

Bank borrowings

79,480

131,157

Hire purchase contracts

461,738

629,891

Other borrowings

259,375

286,753

800,593

1,047,801

Current loans and borrowings

31 January
2024
£

31 January
2023
£

Bank borrowings

51,672

50,656

Hire purchase contracts

168,153

157,745

219,825

208,401

10

Dividends

Interim dividends paid

31 January
2024
£

31 January
2023
£

Interim dividend of £173.33 (2023 - £1,040.00) per each Ordinary

17,333

104,000

 

 

11

Related party transactions

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

46,666

-