DALCON LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Company Registration No. SC327630 (Scotland)
DALCON LIMITED
COMPANY INFORMATION
Directors
Mr David McFadzean
Mr Neil Wilson
Mr Kasim Mahmood
Secretary
Ms Elizabeth Fairfoull
Company number
SC327630
Registered office
10 Boyd Street
Prestwick
Ayrshire
KA9 1JZ
Auditor
William Duncan + Co (Audit) Ltd
44 Bank Street
Kilmarnock
Ayrshire
KA1 1HA
Business address
10 Boyd Street
Prestwick
Ayrshire
KA9 1JZ
Bankers
Virgin Money
43 Alloway Street
Ayr
Ayrshire
KA7 1SP
DALCON LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
DALCON LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The directors present the strategic report for the year ended 30 June 2024.

Review of the business

The 2024 results show a downturn in sales of 14.5% however last years turnover was expected to be exceptionally high with the completion of certain contracts. This year is more in line with 2022 results and this shows an increase of 16.3% in sales.

 

The company continues to have a strong balance sheet and a high level of cash reserves to cope with any contracts that became loss-making. The directors are closely involved in the day-to-day running of the company and are fully aware of how all contracts are progressing and can react to any problems.

 

The following year has a strong order book and budget and, based on up-to-date management information, is fully expected to be another strong year.

 

The company maintains good accounting systems to ensure that accurate financial information is available at all times. The directors have closely monitored the company's financial position throughout the period and have taken all necessary steps to streamline operations and control costs.

Principal risks and uncertainties

The main risks arising from the company's operations are trading risk and health and safety.

 

Trading Risk

 

The directors keep a very close eye on ongoing contract valuations and fully appreciate that margins in this current climate are tighter to achieve than ever, however, the directors still remain prudent when valuing the contracts and recognising sales and costs within the profit and loss account. Despite these challenges the company continues to

ensure that contracts remain profitable and, as a result, so does the company.

 

Health and Safety

 

A new Health and Safety officer was hired in the year to ensure compliance with all Health and Safety laws, regulations and ensure that the company has appropriate insurances in place to cover any losses.

Development and performance

The company has always taken a cautious approach to spending and has invested wisely over the years while maintaining the company's reserves. The company balance sheet remains strong at the year-end. The directors are therefore confident that the company is well placed to work through this period of financial uncertainty.

Key performance indicators

Gross profit margin is the key performance indicator across the company. Profitability of each project is assessed at the planning stage and again at regular intervals throughout their completion. Whilst great effort is made to ensure that every contract generates positive contributions, the directors also recognise that unforeseen circumstances can arise, which will have a negative impact on margins of individual contracts. The directors always seek to minimise these risks ad learn from every contract that is undertaken in order to further improve profitability going forward.

On behalf of the board

Mr David McFadzean
Director
13 January 2025
DALCON LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

The directors present their annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activity of the company continued to be that of civil engineering.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £632,600. 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 David McFadzean
Mr Neil Wilson
Mr Kasim Mahmood
Auditor

William Duncan + Co (Audit) Ltd were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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 David McFadzean
Mr Neil Wilson
Director
Director
13 January 2025
DALCON LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

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:

 

 

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.

DALCON LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DALCON LIMITED
- 4 -
Opinion

We have audited the financial statements of Dalcon Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

DALCON LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DALCON LIMITED (CONTINUED)
- 5 -
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 and the directors' report.

 

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:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

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

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

DALCON LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DALCON LIMITED (CONTINUED)
- 6 -

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 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.

Mr Graeme Bryson CTA, ACA
Senior Statutory Auditor
For and on behalf of William Duncan + Co (Audit) Ltd
13 January 2025
Chartered Accountants
Statutory Auditor
44 Bank Street
Kilmarnock
Ayrshire
KA1 1HA
DALCON LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
16,536,435
19,351,498
Cost of sales
(13,155,725)
(15,598,186)
Gross profit
3,380,710
3,753,312
Administrative expenses
(1,632,600)
(1,564,728)
Other operating income
14,951
55,657
Operating profit
4
1,763,061
2,244,241
Interest receivable and similar income
7
30,448
8,855
Interest payable and similar expenses
8
(20,356)
(8,339)
Profit before taxation
1,773,153
2,244,757
Tax on profit
9
(451,149)
(461,775)
Profit for the financial year
1,322,004
1,782,982

The profit and loss account has been prepared on the basis that all operations are continuing operations.

DALCON LIMITED
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
909,578
768,192
Current assets
Debtors
12
4,389,960
5,482,015
Cash at bank and in hand
1,078,360
481,356
5,468,320
5,963,371
Creditors: amounts falling due within one year
13
(1,988,435)
(3,054,553)
Net current assets
3,479,885
2,908,818
Total assets less current liabilities
4,389,463
3,677,010
Creditors: amounts falling due after more than one year
14
(13,684)
(51,468)
Provisions for liabilities
Deferred tax liability
16
177,632
141,099
(177,632)
(141,099)
Net assets
4,198,147
3,484,443
Capital and reserves
Called up share capital
18
102
92
Share premium account
32,988
8,698
Capital redemption reserve
10
10
Profit and loss reserves
4,165,047
3,475,643
Total equity
4,198,147
3,484,443

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 13 January 2025 and are signed on its behalf by:
Mr David McFadzean
Mr Neil Wilson
Director
Director
Company registration number SC327630 (Scotland)
DALCON LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2022
91
4,349
10
2,152,661
2,157,111
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
-
1,782,982
1,782,982
Issue of share capital
18
1
4,349
-
-
4,350
Dividends
10
-
-
-
(460,000)
(460,000)
Balance at 30 June 2023
92
8,698
10
3,475,643
3,484,443
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
-
1,322,004
1,322,004
Issue of share capital
18
10
24,290
-
-
24,300
Dividends
10
-
-
-
(632,600)
(632,600)
Balance at 30 June 2024
102
32,988
10
4,165,047
4,198,147
DALCON LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
2,247,723
807,148
Interest paid
(20,356)
(8,339)
Income taxes paid
(743,288)
(335,324)
Net cash inflow from operating activities
1,484,079
463,485
Investing activities
Purchase of tangible fixed assets
(310,685)
(189,273)
Proceeds from disposal of tangible fixed assets
24,090
-
0
Repayment of loans
26,330
(2,956)
Interest received
30,448
8,855
Net cash used in investing activities
(229,817)
(183,374)
Financing activities
Proceeds from issue of shares
33,000
-
0
Repayment of bank loans
-
0
(34,078)
Payment of finance leases obligations
(57,658)
(15,454)
Dividends paid
(632,600)
(460,000)
Net cash used in financing activities
(657,258)
(509,532)
Net increase/(decrease) in cash and cash equivalents
597,004
(229,421)
Cash and cash equivalents at beginning of year
481,356
710,777
Cash and cash equivalents at end of year
1,078,360
481,356
DALCON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
1
Accounting policies
Company information

Dalcon Limited is a private company limited by shares incorporated in Scotland. The registered office is 10 Boyd Street, Prestwick, Ayrshire, KA9 1JZ.

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 comprises all engineering contract work undertaken. Amounts invoiced for work done are recorded 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. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings
2% straight line
Plant and machinery
15% reducing balance
Fixtures, fittings & equipment
25% straight line
Motor vehicles
25% reducing balance

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
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

DALCON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.6
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
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.

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

DALCON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
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, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

DALCON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
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.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

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.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

DALCON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
1.13
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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Civil engineering work
16,536,435
19,351,498
2024
2023
£
£
Other significant revenue
Interest income
30,448
8,855
Commissions received
-
18,387
Insurance claims
-
15,265
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
14,880
14,880
Depreciation of owned tangible fixed assets
108,127
97,809
Depreciation of tangible fixed assets held under finance leases
41,667
46,735
Profit on disposal of tangible fixed assets
(4,585)
-
Operating lease charges
33,636
25,201
DALCON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Operations
79
91
Administration
18
17
Total
97
108

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,857,940
4,162,598
Social security costs
391,212
426,080
Pension costs
138,002
93,427
4,387,154
4,682,105
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
160,023
158,119
Company pension contributions to defined contribution schemes
1,321
2,933
161,344
161,052

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
30,448
8,855
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
30,448
8,855
DALCON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
164
1,196
Other finance costs:
Interest on finance leases and hire purchase contracts
4,704
7,143
Other interest
15,488
-
0
20,356
8,339
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
414,616
454,613
Deferred tax
Origination and reversal of timing differences
36,533
7,162
Total tax charge
451,149
461,775

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
1,773,153
2,244,757
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
443,288
561,189
Tax effect of expenses that are not deductible in determining taxable profit
6,675
5,014
Effect of change in corporation tax rate
-
0
(99,971)
Depreciation on assets not qualifying for tax allowances
1,186
1,186
Enhanced capital allowances
-
0
(5,643)
Taxation charge for the year
451,149
461,775
10
Dividends
2024
2023
£
£
Interim paid
632,600
460,000
DALCON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
11
Tangible fixed assets
Land and buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2023
244,657
449,960
90,164
772,603
1,557,384
Additions
-
0
105,288
37,251
168,146
310,685
Disposals
-
0
(40,298)
-
0
-
0
(40,298)
At 30 June 2024
244,657
514,950
127,415
940,749
1,827,771
Depreciation and impairment
At 1 July 2023
35,647
231,958
76,715
444,872
789,192
Depreciation charged in the year
4,893
34,384
11,548
98,969
149,794
Eliminated in respect of disposals
-
0
(20,793)
-
0
-
0
(20,793)
At 30 June 2024
40,540
245,549
88,263
543,841
918,193
Carrying amount
At 30 June 2024
204,117
269,401
39,152
396,908
909,578
At 30 June 2023
209,010
218,002
13,449
327,731
768,192

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant and machinery
14,248
16,762
Motor vehicles
117,457
156,609
131,705
173,371
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Gross amounts owed by contract customers
2,678,746
4,091,143
Unpaid share capital
-
0
8,700
Corporation tax recoverable
80,963
68,572
Other debtors
1,629,840
1,312,518
Prepayments and accrued income
411
1,082
4,389,960
5,482,015
DALCON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
15
38,879
58,753
Trade creditors
1,676,569
1,930,194
Corporation tax
139,330
455,611
Other taxation and social security
108,490
114,142
Other creditors
4,532
474,548
Accruals and deferred income
20,635
21,305
1,988,435
3,054,553

The aggregate amount of creditors for which security has been given amounted to £38,879 (2023 - £58,753).

 

Hire Purchase obligations outstanding are secured against the asset to which they relate.

14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
15
13,684
51,468

The aggregate amount of creditors for which security has been given amounted to £13,684 (2023 - £51,468).

 

Hire Purchase obligations outstanding are secured against the asset to which they relate.

15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
42,899
63,547
In two to five years
14,958
56,245
57,857
119,792
Less: future finance charges
(5,294)
(9,571)
52,563
110,221

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

DALCON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
177,632
141,099
2024
Movements in the year:
£
Liability at 1 July 2023
141,099
Charge to profit or loss
36,533
Liability at 30 June 2024
177,632
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
138,002
93,427

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.

18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary 'A' shares of £1 each
38
38
38
38
Ordinary 'B' shares of £1 each
38
38
38
38
Ordinary 'C' shares of £1 each
10
10
10
10
Ordinary 'E' shares of £1 each
2
2
2
2
Ordinary 'F' shares of £1 each
2
2
2
2
Ordinary 'G' shares of £1 each
12
2
12
2
102
92
102
92
DALCON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
18
Share capital
(Continued)
- 21 -

All Ordinary A shares, B shares, C shares, D shares, E shares, F shares and G shares have different dividend rights in respect of dividend income or distribution of profits as set down in the company's Articles of Association and participate equally in any payment made on the respective shares.

 

Only Ordinary A shares, B shares, E shares, F shares and G shares carry voting rights. Ordinary C shares and D shares are non-voting shares.

 

On a return of assets on liquidation or capital reduction or otherwise, the assets of the company remaining after the payment of its liabilities, shall be distributed equally amongst all shareholders.

 

During the year, share options were exercised and as a result 10 Ordinary G shares were allotted in the company at a cost of £4,350 each.

 

 

 

19
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
30,000
24,000
Lessor

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

2024
2023
£
£
Within one year
-
0
9,500
20
Directors' transactions

Dividends totalling £357,600 (2023 - £305,400) were paid in the year in respect of shares held by the company's directors.

Interest free loans have been granted by the company to its directors as follows:

Description
% Rate
Opening balance
Amounts repaid
Closing                                          balance
£
£
£
Loan
-
182,845
(26,330)
156,515
182,845
(26,330)
156,515

There are no fixed terms for the repayment of these loans.

DALCON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
21
Related party transactions

Included within 'other debtors' at 30 June 2024 is an interest free loan of £352,891 due by a company related by virtue of common control. In the prior year this was a creditor of £450,940. This loan is interest free and repayable on demand.

22
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,322,004
1,782,982
Adjustments for:
Taxation charged
451,149
461,775
Finance costs
20,356
8,339
Investment income
(30,448)
(8,855)
Gain on disposal of tangible fixed assets
(4,585)
-
Depreciation and impairment of tangible fixed assets
149,794
144,544
Movements in working capital:
Decrease/(increase) in debtors
1,069,416
(958,134)
Decrease in creditors
(729,963)
(623,503)
Cash generated from operations
2,247,723
807,148
23
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
481,356
597,004
1,078,360
Obligations under finance leases
(110,221)
57,658
(52,563)
371,135
654,662
1,025,797
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