Company registration number 08287487 (England and Wales)
MIDDLESEX FACADES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
MIDDLESEX FACADES LIMITED
COMPANY INFORMATION
Directors
Mr R C McCullagh
Mr N T Gordge
Company number
08287487
Registered office
Darwin House
Bourne End Business Park
Cores End Road
BOURNE END
SL8 5AS
Auditor
Craufurd Hale LLP
C/O Craufurd Hale Group
Ground Floor, Arena Court
Crown Lane
MAIDENHEAD
SL6 8QZ
Business address
Darwin House
Bourne End Business Park
Cores End Road
BOURNE END
SL8 5AS
MIDDLESEX FACADES LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 22
MIDDLESEX FACADES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Principal activities
Middlesex Facades Limited specialises in facades, cladding, and roofing solutions for commercial offices, residential apartment blocks, and data centres. The company primarily serves tier-one contractors in London and the South of England.
Review of the business
For the financial year ended 31 March 2024, Middlesex Facades Limited achieved a turnover of £21,455,741 (2023: £16,711,271). Despite the administration of ISG Group in September 2024, which resulted in a bad debt write-off of £311,830 as at 31 March 2024, the company demonstrated resilience by securing direct contracts with clients from former ISG sites. This proactive response allowed the company to maintain its project pipeline and sustain operational momentum.
The company continues to benefit from its strong reputation for quality and reliability, as evidenced by an expanding portfolio of larger contracts and a solid pipeline. Middlesex Facades Limited remains focused on driving growth in the commercial and residential sectors while exploring opportunities in new markets such as modular construction and eco-friendly building systems.
Principal risks and uncertainties
The identification, assessment, and management of risks are central to the execution of Middlesex Facades Limited’s business strategy. The company operates in an inherently high-risk industry and continuously monitors and addresses these risks to minimise adverse impacts on its operations and financial performance. The key risks and mitigation strategies include:
1. Construction Risk
The construction industry faces complex project management challenges, including delays, cost overruns, and quality issues. Middlesex Facades Limited addresses these risks through:
Proven Supply Chain: Working with a well-established network of trusted suppliers and subcontractors to ensure consistent delivery of materials and services.
Robust Project Monitoring: Conducting monthly cost reviews for all projects to ensure they remain on budget and within scope.
Proactive Issue Resolution: Implementing an early warning system to identify potential project delays or deviations and taking corrective actions promptly.
2. Financial Risk
The company recognises the importance of maintaining financial stability to sustain operations and growth:
Liquidity Management: Regular review of cash flow projections to ensure sufficient working capital. Maintaining contingency funding arrangements to address unexpected financial pressures.
Bad Debt Risk: The administration of ISG Group highlighted the importance of credit risk management. The company has enhanced its due diligence procedures and credit terms for new clients to reduce exposure to bad debts.
MIDDLESEX FACADES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
3. Market Risk
The construction industry is sensitive to economic fluctuations, which can affect demand for commercial and residential projects. The company mitigates market risks by:
Diversifying its client base to include both public and private sector projects.
Expanding into new market segments, such as modular construction and sustainable building solutions, to capitalise on emerging trends.
Building a strong pipeline of contracts to ensure stable revenue streams.
4. Regulatory and Compliance Risk
The construction sector is subject to extensive regulations, including building standards, health and safety laws, and environmental legislation. Middlesex Facades Limited ensures compliance by:
Staying updated on regulatory changes through membership in industry bodies and regular training programs.
Employing dedicated compliance officers to oversee adherence to applicable laws and regulations.
Implementing robust health and safety policies, ensuring a safe working environment for employees and subcontractors.
5. Labour Risk
The industry faces a shortage of skilled labour, which can delay projects and increase costs. Middlesex Facades Limited addresses this risk by:
Investing in apprenticeship schemes and on-the-job training to develop a pipeline of skilled workers.
Offering competitive remuneration and benefits packages to attract and retain top talent.
Partnering with industry training bodies to access a wider pool of qualified professionals.
6. Supply Chain Disruption Risk
Delays or cost increases in the supply chain can significantly affect project delivery. The company mitigates this risk through:
Maintaining diversified supplier relationships to avoid over-reliance on a single source.
Pre-ordering critical materials and maintaining inventory buffers where possible.
Regularly reviewing supplier performance to ensure reliability and quality.
Promoting the success of the company
Section 172 (1) Statement
The directors have acted in a way that they considered, in good faith, to be most likely to promote the success of the Company for the benefit of its members as a whole and, in doing so, had regard, amongst other matters, to those matters set out in section 172(1)(a) to (f) of the" Companies Act 2006, being:
the likely consequences of any decision in the long term;
the need to foster the Company's business relationships with suppliers, customers and others; the impact of the Company's operations on the community and the environment;
the desirability of the Company maintaining a reputation for high standards of business conduct; and
the need to act fairly as between members of the Group.
MIDDLESEX FACADES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Stakeholder Engagement
Middlesex Facades Limited recognises that the success of its business is intrinsically linked to the strength of its relationships with key stakeholders. Building and nurturing these relationships with professionalism, integrity, and fairness ensures the long-term sustainability of the business. Below is an overview of how Middlesex Facades Limited engages with its stakeholders and incorporates their input into decision-making:
1. Employees
Employees are the backbone of Middlesex Facades Limited’s operations, and their engagement is critical to delivering high-quality projects and maintaining the company’s reputation. Key initiatives include:
2. Customers
Middlesex Facades Limited’s customers are primarily tier-one contractors and property developers who demand consistent delivery of high-quality projects. The company engages with its customers to build lasting partnerships based on trust and excellence:
3. Suppliers and Subcontractors
The company relies on a network of trusted suppliers and subcontractors to deliver materials and services critical to its operations. Engagement with these partners ensures seamless project execution:
4. Shareholders
As owners of the business, shareholders are key stakeholders whose interests align with the long-term success of the company. Middlesex Facades Limited engages shareholders through:
5. Regulators and Industry Bodies
Compliance with legal and regulatory requirements is non-negotiable, and engaging with regulators ensures the company remains aligned with industry standards:
Middlesex Facades Limited integrates stakeholder feedback into its decision-making processes to balance competing interests and ensure long-term success.
MIDDLESEX FACADES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Mr R C McCullagh
Director
23 December 2024
MIDDLESEX FACADES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Results and dividends
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £1,027,500. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr R C McCullagh
Mr N T Gordge
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr R C McCullagh
Director
23 December 2024
MIDDLESEX FACADES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
The directors are responsible 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 then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
MIDDLESEX FACADES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MIDDLESEX FACADES LIMITED
- 7 -
Opinion
We have audited the financial statements of Middlesex Facades Limited for the year ended 31 March 2024 which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes of Equity, Cash Flow Statement and the related notes, 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the entity's ability to continue as a going concern for a period of at least 12 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.
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.
MIDDLESEX FACADES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MIDDLESEX FACADES LIMITED (CONTINUED)
- 8 -
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 or 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.
As this is the first year we have audited the company’s financial statements, we were unable to obtain sufficient appropriate audit evidence regarding the opening balances as at 1st April 2023 and comparative figures for the year ended 31st March 2023. We were therefore unable to determine whether any adjustments might have been necessary in respect of the company’s financial position as at 31st March 2023; the results for the year then ended; and the related disclosures in the financial statements. Consequently, we have been unable to determine whether any adjustments to these amounts were necessary.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on page 5, 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.
Auditor's 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 auditor's 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures in response to those risks. This includes obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. The primary responsibility however, for the prevention and detection of fraud, rests with those charged with governance and executive management of the entity. In identifying and assessing the risks of material misstatements in respect of irregularities, including fraud and non-compliance with laws and regulations we considered the following:
We obtained an understanding of the legal and regulatory framework applicable to the Company. We determined the most significant are those relating to the financial reporting framework (namely the Companies Act 2006, UK GAAP and the application of FRS102), HMRC tax compliance in the UK and EU General Data Protection Regulation.
MIDDLESEX FACADES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MIDDLESEX FACADES LIMITED (CONTINUED)
- 9 -
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, at the planning stage of the audit by meeting with executive management to understand where they considered there to be fraud risk and susceptibility. We also reviewed budgeted projections and actual outturn against prior year budget to determine if there were any anomalies. Where we considered audit risk to be higher we undertook tests to mitigate each identified risk.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would be to become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or international misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 that we are required to state to them in an auditor's 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.
Dalvir S. Johal CA (Senior Statutory Auditor)
For and on behalf of Ballantyne & Company Limited, Statutory Auditor
12 December 2024
Ballantyne & Company Limited
Chartered Accountants & Registered Auditors
60 St. Enoch Square
Glasgow
G1 4AG
MIDDLESEX FACADES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
Notes
£
£
Turnover
2
21,455,741
16,711,271
Cost of sales
(16,175,958)
(13,665,282)
Gross profit
5,279,783
3,045,989
Administrative expenses
(2,703,040)
(1,234,099)
Operating profit
3
2,576,743
1,811,890
Interest receivable and similar income
6
924
324
Interest payable and similar expenses
7
1,228
Profit before taxation
2,577,667
1,813,442
Tax on profit
8
(530,817)
(245,449)
Profit for the financial year
2,046,850
1,567,993
The profit and loss account has been prepared on the basis that all operations are continuing operations.
MIDDLESEX FACADES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
£
£
Profit for the year
2,046,850
1,567,993
Other comprehensive income
-
-
Total comprehensive income for the year
2,046,850
1,567,993
MIDDLESEX FACADES LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
108,906
101,740
Current assets
Debtors
11
7,133,459
7,054,718
Cash at bank and in hand
2,045,211
1,011,434
9,178,670
8,066,152
Creditors: amounts falling due within one year
12
(5,114,929)
(4,975,837)
Net current assets
4,063,741
3,090,315
Total assets less current liabilities
4,172,647
3,192,055
Creditors: amounts falling due after more than one year
13
(28,869)
(67,627)
Net assets
4,143,778
3,124,428
Capital and reserves
Called up share capital
16
2
2
Profit and loss reserves
4,143,776
3,124,426
Total equity
4,143,778
3,124,428
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 23 December 2024 and are signed on its behalf by:
Mr R C McCullagh
Director
Company registration number 08287487 (England and Wales)
MIDDLESEX FACADES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
2
1,971,433
1,971,435
Year ended 31 March 2023:
Profit and total comprehensive income
-
1,567,993
1,567,993
Dividends
9
-
(415,000)
(415,000)
Balance at 31 March 2023
2
3,124,426
3,124,428
Year ended 31 March 2024:
Profit and total comprehensive income
-
2,046,850
2,046,850
Dividends
9
-
(1,027,500)
(1,027,500)
Balance at 31 March 2024
2
4,143,776
4,143,778
MIDDLESEX FACADES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
2,376,086
757,514
Interest paid
1,228
Income taxes paid
(245,449)
(12,346)
Net cash inflow from operating activities
2,130,637
746,396
Investing activities
Purchase of tangible fixed assets
(30,619)
(87,433)
Repayment of loans
(179,258)
Interest received
924
324
Net cash used in investing activities
(29,695)
(266,367)
Financing activities
Repayment of borrowings
9,815
Repayment of bank loans
(39,665)
(51,404)
Dividends paid
(1,027,500)
(415,000)
Net cash used in financing activities
(1,067,165)
(456,589)
Net increase in cash and cash equivalents
1,033,777
23,440
Cash and cash equivalents at beginning of year
1,011,434
987,994
Cash and cash equivalents at end of year
2,045,211
1,011,434
MIDDLESEX FACADES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
1
Accounting policies
Company information
Middlesex Facades Limited is a private company limited by shares incorporated in England and Wales. The registered office is Darwin House, Bourne End Business Park, Cores End Road, BOURNE END, SL8 5AS.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation.
Depreciation is recognised so as to write off the cost of assets over their useful lives on the following bases:
Plant and equipment
20% Reducing balance method
Fixtures and fittings
20% Reducing balance method
Computers
20% Reducing balance method
Motor vehicles
20% Straight line method
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand and deposits held with banks.
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
MIDDLESEX FACADES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs. Financial assets are classified as receivable within one year and are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, are recognised at transaction price. Financial liabilities are classified as payable within one year and are not amortised.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
MIDDLESEX FACADES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Taxation
The tax expense represents the sum of the tax currently payable.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Facades, cladding, and roofing solutions
21,455,740
16,711,271
Analysis per statutory database
21,455,740
16,711,271
Statutory database analysis does not agree to the trial balance by:
1
-
2024
2023
£
£
Turnover analysed by geographical market
United kingdom
21,455,741
16,711,271
2024
2023
£
£
Other revenue
Interest income
924
324
MIDDLESEX FACADES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
3
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
8,750
Depreciation of owned tangible fixed assets
23,453
8,446
Operating lease charges
26,092
43,401
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
5
5
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
496,457
402,227
Social security costs
31,288
28,535
Pension costs
7,093
4,578
534,838
435,340
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
9,131
9,131
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
924
324
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
924
324
MIDDLESEX FACADES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
(1,228)
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
530,817
245,449
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
2,577,667
1,813,442
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
644,417
344,554
Tax effect of expenses that are not deductible in determining taxable profit
1,235
8,281
Tax effect of income not taxable in determining taxable profit
(2,449)
Permanent capital allowances in excess of depreciation
(3,938)
(8,011)
Research and development tax credit
(108,448)
(99,375)
Taxation charge for the year
530,817
245,449
9
Dividends
2024
2023
£
£
Interim paid
1,027,500
415,000
MIDDLESEX FACADES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
10
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
21,828
31,311
36,201
53,506
142,846
Additions
4,306
26,313
30,619
At 31 March 2024
21,828
35,617
62,514
53,506
173,465
Depreciation and impairment
At 1 April 2023
14,652
3,243
17,452
5,759
41,106
Depreciation charged in the year
1,435
6,040
6,429
9,549
23,453
At 31 March 2024
16,087
9,283
23,881
15,308
64,559
Carrying amount
At 31 March 2024
5,741
26,334
38,633
38,198
108,906
At 31 March 2023
7,176
28,068
18,749
47,747
101,740
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
6,005,362
6,187,381
Amounts owed by group undertakings
212,350
Other debtors
875,252
850,728
Prepayments and accrued income
40,495
16,609
7,133,459
7,054,718
12
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
14
42,388
43,295
Other borrowings
14
126,317
126,317
Trade creditors
3,800,789
3,137,549
Corporation tax
530,817
245,449
Other taxation and social security
39,869
38,355
Other creditors
13,821
17,046
Accruals and deferred income
560,928
1,367,826
5,114,929
4,975,837
MIDDLESEX FACADES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
13
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
14
28,869
67,627
Included within bank loans is £28,869 (2023 - £67,627) secured over a property owned by the company.
14
Loans and overdrafts
2024
2023
£
£
Bank loans
71,257
110,922
Loans from group undertakings
126,317
126,317
197,574
237,239
Payable within one year
168,705
169,612
Payable after one year
28,869
67,627
The long-term loans are secured by a fixed and floating charge over the property or undertakings of the company.
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
7,093
4,578
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
1
1
1
1
B Ordinary shares of £1 each
1
1
1
1
2
2
2
2
On 20 August 2022 the two ordinary shares of £1 each were redesignated to 1 A Ordinary share of £1 and 1 B Ordinary share of £1.
Both classes of shares have equal voting rights and are entitled to dividends as decided at a general meeting.
MIDDLESEX FACADES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
17
Related party transactions
At the balance sheet date included in Debtors is an amount was owed by member of the Group, Middlesex Facades Holdings Limited of £400.
Middlesex Limited shares directors with Middlesex Facades. Included in Trade Debtors at the balance sheet date is an amount owing to Middlesex Limited of £50,620. At the year end, included in Trade Creditors is an amount owed to Middlesex Facades of £28,127. During the year there was sales made to Middlesex Limited of £1,297,7740 and purchases of £297,432.
At the balance sheet date, included in Creditors is an amount owed to Middlesex Limited of £126,317.
18
Directors' transactions
At the balance sheet date a director owed the company £180,228. Interest has been charged on the loan at the prescribed HMRC rate of 2%. The total interest charged on the loan was £1,228. The loan has subsequently been repaid.
19
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
2,046,850
1,567,993
Adjustments for:
Taxation charged
530,817
245,449
Finance costs
(1,228)
Investment income
(924)
(324)
Depreciation and impairment of tangible fixed assets
23,453
8,446
Movements in working capital:
Increase in debtors
(78,741)
(4,742,525)
(Decrease)/increase in creditors
(145,369)
3,679,703
Cash generated from operations
2,376,086
757,514
20
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
1,011,434
1,033,777
2,045,211
Borrowings excluding overdrafts
(237,239)
39,665
(197,574)
774,195
1,073,442
1,847,637
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