Company Registration No. SC069644 (Scotland)
OGILVIE CONSTRUCTION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
OGILVIE CONSTRUCTION LIMITED
COMPANY INFORMATION
Directors
D H Ogilvie
J F Watson
D F MacDonald
M A Poole
D M Arundel
G A Edmead
D A Mason
Secretary
J F Watson
Company number
SC069644
Registered office
Ogilvie House
200 Glasgow Road
Stirling
FK7 8ES
Auditor
Johnston Carmichael LLP
227 West George Street
Glasgow
G2 2ND
OGILVIE CONSTRUCTION LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Statement of income and retained earnings
10
Balance sheet
11
Notes to the financial statements
12 - 23
OGILVIE CONSTRUCTION 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 loss before tax amounts to £6,500k (2023: loss before tax £12,499k). As at 30 June 2024, the net assets of the company were £4,077k (2023: £8,896k).

 

It has been clear that our year has continued to be marked by significant challenges, flowing from completing the final stages of long-term fixed price contracts. These legacy contracts have now been completed.

 

The company continues to avoid single stage competitive tendering and into environments where negotiation or two stage tendering is the norm, such as procurement hubs and public frameworks. Our workload going forward is healthy with a variety of lower risk profile projects from both public and private clients. Our pipeline of work and levels of interest in future projects is strong.

 

The company has also committed to long term investment in our Aberdeen Office. Growth in projects based in the NE of Scotland have been encouraging and is a key part to future strategy of the business.

 

We continually look for operational efficiencies and productivity gains across Ogilvie Construction with effective use of our investment in processes and quality management systems. We remain committed to our corporate responsibility to reduce our environmental footprint, working closely with our partners to integrate sustainability in all aspects of our business.

 

The company’s principal activity continues to be a leading national contractor in construction, providing services to local and national government as well as selected developers within the private sector. The business continues to focus on the delivery of quality projects whilst developing a sustainable platform for the future. Operating across a wide range of sectors Ogilvie Construction is one of the Scottish sector leaders within the affordable housing, student accommodation and commercial buildings.

 

Ogilvie Construction’s spread of delivery capability across a wide range of sectors, coupled with our geographic Scottish footprint, and our focus on operational efficiency leaves us well placed to capitalise on opportunities going forward. We look forward to a continued controlled growth with a pipeline of opportunity that is durable in both volume and quality.

Principal Risks and Uncertainties

There are many risks that can adversely affect our business such as availability and price of materials and labour, which if not managed efficiently, have the potential to seriously damage our financial performance and reputation. We recognise that consistent and effective risk management is vital to the delivery of our business aspirations.

 

Our Business Continuity Team meets regularly to understand any evolving situation, allowing Ogilvie Construction to respond swiftly to changes that may arise.

Markets

Ogilvie Construction’s business plan has been predicted upon securing and delivering revenues across Scotland within both the public and private sectors. The impact of any political change, shift in policy or changing market conditions will have to be monitored carefully, as this may adversely impact on our client’s future projects.

 

Ogilvie have developed their business plans over a number of markets to mitigate any risk of adverse changes in spending within any one market sector. We will continue to focus on more resilient and stable markets which affords us the opportunity to create the appropriate balance between private and public sector prospects.

Key Performance Indicators

Going forward the Key Performance Indicator for the company is the forward order book of £125m (2023: £96m). There is a healthy pipeline of prospective work with the Directors remaining confident that the company will show steady, controlled growth consolidating our market position.

OGILVIE CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Going Concern

The Directors have undertaken an exercise to review the appropriateness of the continued use of the going concern basis. After making suitable enquiries, the Directors have a reasonable expectation that the company has adequate resources to meet its liabilities as they fall due for at least the next twelve months. Accordingly, they continue to adopt the going concern basis in preparing the financial statements

Section 172 (1) Statement

Ogilvie Construction as a family owned and managed business aims for long term success of the company for the benefit of all its stakeholders. This is not simply limited to its shareholders but includes its employees, customers and supply chain and encompasses its responsibility to the environment and the local communities in which it operates.

There is regular communication with all our employees via our quarterly in-house newsletter Ogilvie Outlook and active promotion of regular meetings with local management and employees to allow a free flow of information and ideas. We fully support Graduate and Apprentice recruitment and recently launched a 'Mental Health Awareness' initiative to all employees which included the launch of an Employee Assistance Program “Be Supported” through AXA which is a free confidential helpline available to all employees and their families.

We have a substantial and valued supply chain with whom we engage. The Directors of all Group companies promote mutually beneficial reciprocal business throughout all our operating divisions thereby optimising performance of all contributors. At all times we consider first class customer service to be integral to our operations thereby fostering good working relationships and trust with all our clients.

The health & safety of our employees, contractors and the general public is of prime importance to the Group and is essential to the efficient operation of the business. The responsibility for safety at work rests upon all sectors of management and the Group will ensure that its policies and procedures are adhered to. The Group expects that all employees always exercise reasonable care for their own and others’ health & safety.

We are very aware of the potential impact our operations may have on the environment and are committed to sustainable working practices to minimise the impact and enhance the environment for the future.

 

On behalf of the board

J F Watson
Director
19 December 2024
OGILVIE CONSTRUCTION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

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 building and construction services.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. 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:

D H Ogilvie
J F Watson
D F MacDonald
M A Poole
D M Arundel
G A Edmead
D A Mason
Financial instruments
Financial risk management

The company does not use derivatives for either financial risk management or for speculative purposes. The company's financial risk management objectives, policies and exposure to financial risks are not considered material for the assessment of the company's assets, liabilities, financial position or results for the year and as such, no further disclosure is considered necessary.

Disabled persons

Disabled persons are employed by the company where a suitable vacancy occurs. The aptitudes and abilities of disabled persons are not easily met in those aspects of our business involving site work, however, they are given full and fair consideration where vacancies arise in more suitable areas such as joinery. Every effort is made to ensure that employees who become injured or disabled in the course of their employment are given training so that they can continue employment with the company.

Employee involvement

During the year, the policy of providing employees with information about the company has been continued through the newsletter 'Ogilvie Outlook' in which employees have also been encouraged to present their suggestions and views on the company's performance. Regular meetings are held between local management and employees to allow a free flow of information and ideas. Employees participate directly in the success of the business through the company's profit-sharing schemes.

 

Ogilvie Construction is delighted to continue its commitment to the next generation of Graduates and Apprentices through its membership of The 5% Club, an industry led initiative focussed on driving the recruitment of Apprentices, Graduate and sponsored students.

Auditor

The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

OGILVIE CONSTRUCTION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
Energy and carbon report

Streamlined energy and carbon reporting requirements have been disclosed on a group basis within the financial statements of the company's ultimate parent, Ogilvie Group Limited, which includes the relevant energy and carbon reporting information for the company. As such, the company is not obliged and has not reported their energy and carbon reporting information here. The financial statements of Ogilvie Group Limited are accessible via UK Companies House.

Information contained within the Strategic Report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments to the extent this is considered applicable.

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.

On behalf of the board
J F Watson
Director
19 December 2024
OGILVIE CONSTRUCTION LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the 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.

OGILVIE CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF OGILVIE CONSTRUCTION LIMITED
- 6 -
Opinion

We have audited the financial statements of Ogilvie Construction Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of income and retained earnings, the balance sheet 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 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:

 

OGILVIE CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF OGILVIE CONSTRUCTION LIMITED
- 7 -
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 in relation to which 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, 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 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.

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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:

We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

 

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

OGILVIE CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF OGILVIE CONSTRUCTION LIMITED
- 8 -

We obtained an understanding of the legal and regulatory frameworks that are applicable to company and sector in which it operates, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

 

 

We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of submitted returns, external inspections, relevant correspondence with regulatory bodies and board meeting minutes.

We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. We identified a heightened fraud risk in relation to:

 

 

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

 

 

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that 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 intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

 

 

OGILVIE CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF OGILVIE CONSTRUCTION LIMITED
- 9 -

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member for our audit work, for this report, or for the opinions we have formed.

Allison Dalton (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
19 December 2024
Statutory Auditor
227 West George Street
Glasgow
G2 2ND
OGILVIE CONSTRUCTION LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
2024
2023
Notes
£'000
£'000
Turnover
3
69,153
71,645
Cost of sales
(71,952)
(80,526)
Gross loss
(2,799)
(8,881)
Administrative expenses
(3,963)
(3,940)
Operating loss
4
(6,762)
(12,821)
Interest receivable and similar income
8
498
349
Interest payable and similar expenses
9
(236)
(27)
Loss before taxation
(6,500)
(12,499)
Tax on loss
10
1,681
3,115
Loss for the financial year and total comprehensive loss
(4,819)
(9,384)
Retained earnings brought forward
8,846
18,230
Retained earnings carried forward
4,027
8,846

The statement of income and retained earnings has been prepared on the basis that all operations are continuing operations.

OGILVIE CONSTRUCTION LIMITED
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 11 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
11
14
19
Investments
12
1
-
0
15
19
Current assets
Stocks
14
591
7,444
Debtors
15
41,569
31,182
Cash at bank and in hand
-
0
8,918
42,160
47,544
Creditors: amounts falling due within one year
16
(38,098)
(38,667)
Net current assets
4,062
8,877
Net assets
4,077
8,896
Capital and reserves
Called up share capital
19
50
50
Profit and loss reserves
20
4,027
8,846
Total equity
4,077
8,896
The financial statements were approved by the board of directors and authorised for issue on 19 December 2024 and are signed on its behalf by:
D F MacDonald
Director
Company Registration No. SC069644
OGILVIE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
1
Accounting policies
Company information

Ogilvie Construction Limited is a private company limited by shares incorporated and domiciled in Scotland. The registered office is Ogilvie House, 200 Glasgow Road, Stirling, United Kingdom, FK7 8ES.

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 £'000.

The financial statements have been prepared under the historical cost convention.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The company does not disclose transactions with members of the same group that are wholly owned and has

taken the exemption provided by paragraph 33.1A of FRS 102.

 

Ogilvie Construction Limited is a wholly owned subsidiary of Ogilvie Group Limited and the results of Ogilvie Construction Limited are included in the consolidated financial statements of Ogilvie Group Limited which are available from the Registrar of Companies, Companies House, Crown Way, Cardiff CF14 3UZ.

1.2
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company will have adequate resources to continue in operational existence for the foreseeable future. The company along with its parent undertaking Ogilvie Group Limited, enjoy a positive relationship with its bank who have provided the required support. The company has received written confirmation from its parent Ogilvie Group Limited that it will continue to provide support for at least 12 months following the date of signing these financial statements.true

The directors are therefore satisfied the company will continue to meet its liabilities as they fall due for at least 12 months following the date of signing these financial statements and it is therefore appropriate to adopt the going concern basis in preparing these financial statements.

1.3
Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax, and other sales taxes.

 

Revenue on construction contracts is recognised according to the stage of completion of the contract by reference to valuations and estimates in respect of amounts not invoiced.

OGILVIE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
1.4

Construction contracts

When the outcome of individual contracts can be estimated reliably, contract revenue is recognised by reference to the measure of progress at the reporting date based on valuations and consideration around the stage of completion and estimated costs to complete. The profit included is calculated on a prudent basis to the reflect the proportion of work carried out, by recording turnover and related costs of labour and materials as contract activity progresses. Revenues from variation on contracts are recognised only when they are considered to be reasonably certain. Profit is only recognised when the final outcome of each project can be assessed with reasonable certainty. Where a contract is considered likely to make a loss, full provision is made in the period in which the loss is foreseen.

 

Value to complete provisions are recognised within Amounts Recoverable on Contracts where applicable and are in relation to amounts receivable for completed contracts and may include damages and penalties incurred on contracts for which third parties are liable for as set out per the contract agreement.

1.5
Tangible fixed assets

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

Depreciation is provided on fixed assets on the following basis:

Plant and Machinery
Straight line over 3 to 5 years
1.6
Fixed asset investments

Interests in jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.7
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).

1.8
Stocks

Work-in-progress is valued at the cost of direct labour, materials and attributable production overheads, less provision for foreseeable losses.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

OGILVIE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
1.10
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.

Impairment of financial assets

Financial assets 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 statement of income and retained earnings.

 

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 statement of income and retained earnings.

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 and loans from fellow group companies, 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.

OGILVIE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities

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

1.11
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.

1.12
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 statement of income and retained earnings 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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the statement of income and retained earnings, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
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.

1.14
Retirement benefits

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

OGILVIE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Contract accounting

The values recognised in relation to construction contracts that are in progress at the balance sheet date involve estimates on the proportion of work carried out on a contract by contract basis. Profits on these contracts are calculated on a prudent basis to reflect turnover and related costs as the the contract progresses along with estimates around expected costs to complete. Profit is only recognised when the final outcome of each project is considered to be assessed with reasonable certainty. The company regularly reviews these estimates to ensure they reflect the latest known position.

3
Turnover and other revenue

Turnover is from construction contracts and is generated in the UK. It relates to a single principal activity.

4
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
£'000
£'000
Depreciation of owned tangible fixed assets
14
26
Profit on disposal of tangible fixed assets
-
(37)
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£'000
£'000
For audit services
Audit of the financial statements of the company
30
34
For other services
Taxation compliance services
4
4
OGILVIE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
6
Employees

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

2024
2023
Number
Number
Head Office
26
28
Site Staff
75
80
Operatives
71
77
Total
172
185

Their aggregate remuneration comprised:

2024
2023
£'000
£'000
Wages and salaries
8,445
8,533
Social security costs
936
927
Pension costs
651
617
10,032
10,077
7
Directors' remuneration
2024
2023
£'000
£'000
Remuneration for qualifying services
620
618
Company pension contributions to defined contribution schemes
85
78
705
696

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2023 - 5).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£'000
£'000
Remuneration for qualifying services
186
186
Company pension contributions to defined contribution schemes
34
34
OGILVIE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
8
Interest receivable and similar income
2024
2023
£'000
£'000
Interest income
Interest on bank deposits
8
18
Other interest income
490
331
Total income
498
349
9
Interest payable and similar expenses
2024
2023
£'000
£'000
Interest on bank overdrafts
236
27
10
Taxation
2024
2023
£'000
£'000
Current tax
Adjustments in respect of prior periods
(65)
-
0
Group tax relief
(1,616)
(3,123)
Total current tax
(1,681)
(3,123)
Deferred tax
Origination and reversal of timing differences
-
0
8
Total tax credit
(1,681)
(3,115)

The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£'000
£'000
Loss before taxation
(6,500)
(12,499)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
(1,625)
(2,562)
Tax effect of expenses that are not deductible in determining taxable profit
9
9
Adjustments in respect of prior years
(65)
-
0
Group relief provided net of payments received from fellow group companies
-
0
(563)
Other permanent differences
-
0
1
Taxation credit for the year
(1,681)
(3,115)
OGILVIE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
10
Taxation
(Continued)
- 19 -

A change in the UK Corporation tax rate to 25% took effect from 1 April 2023. This change has had a consequential effect on the company's tax charge with the standard rate of tax in the current year reflective of 25% and the prior year a marginal tax rate arising from the company's period straddling the 19% and 25% tax rates. Deferred tax has been calculated at 25% in both years.

11
Tangible fixed assets
Plant and Machinery
£'000
Cost
At 1 July 2023
189
Additions
9
At 30 June 2024
198
Depreciation and impairment
At 1 July 2023
170
Depreciation charged in the year
14
At 30 June 2024
184
Carrying amount
At 30 June 2024
14
At 30 June 2023
19
12
Fixed asset investments
2024
2023
Notes
£'000
£'000
Investments in joint ventures
13
1
-
0
Movements in fixed asset investments
Shares in joint ventures
£'000
Cost
At 1 July 2023
-
Additions
1
At 30 June 2024
1
Carrying amount
At 30 June 2024
1
At 30 June 2023
-
OGILVIE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
13
Joint ventures

Details of the company's joint ventures at 30 June 2024 are as follows:

Name of undertaking
Registered office
Interest
% Held
held
Direct
ATK PROPERTY GROUP LIMITED
Marlee House, Kinloch, Blairgowrie, Perthshire, United Kingdom, PH10 6SD
Ordinary Shares
50.00
14
Stocks
2024
2023
£'000
£'000
Work in progress
591
7,444

Progress payments received in excess of the value of work done on construction contracts are shown separately under current liabilities.

15
Debtors
2024
2023
Amounts falling due within one year:
£'000
£'000
Trade debtors
16,710
19,906
Amounts recoverable on contracts
14,982
7,550
Amounts owed by group undertakings
1,768
3,605
Other debtors
8,087
99
41,547
31,160
Deferred tax asset (note 17)
22
22
41,569
31,182

Amounts owed by group undertakings are payable on demand and accrue no interest.

 

Included within other debtors is a loan note issued to a Joint venture in which it has a partial interest in. Loan outstanding at the year end amounts to £7,967,000. The loan has no fixed term of repayment and interest is charged at a variable rate linked to bank borrowings within the joint venture.

OGILVIE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
16
Creditors: amounts falling due within one year
2024
2023
£'000
£'000
Bank loans and overdrafts
9,560
-
0
Payments received on account
10,935
16,113
Trade creditors
15,442
19,210
Amounts owed to group undertakings
73
139
Taxation and social security
679
1,797
Other creditors
420
490
Accruals and deferred income
989
918
38,098
38,667

The bank overdraft was secured by a floating charge granted in favour of Barclays Bank plc. Amounts due to group undertakings are repayable on demand and accrue no interest.

17
Deferred taxation

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

Assets
Assets
2024
2023
Balances:
£'000
£'000
Accelerated capital allowances
11
11
Other timing differences
11
11
22
22
There were no deferred tax movements in the year.
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
651
617

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.

 

The company commitment at the year end was £81k (2023: £69k).

OGILVIE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary shares of £1 each
50,000
50,000
50
50

The share capital account records the nominal value of the shares issued. The ordinary shares carry no right to fixed income.

20
Profit and loss reserves

The profit and loss reserves represent the cumulative historic profits and losses.

21
Financial commitments, guarantees and contingent liabilities

The company has a contingent liability for the overdrafts of other group undertakings which it has guaranteed without limit.

 

The company had other contingent liabilities in the normal course of business, including counter indemnities for performance and tendering bonds. In the opinion of the directors, it is impractical to estimate the financial effect of these bonds at 30 June 2024. No loss is expected to arise in connection with any of these bonds.

22
Operating lease commitments

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
£'000
£'000
Within one year
366
346
Between two and five years
594
777
960
1,123
23
Related party transactions

The company has taken exemption under section 33.1A of FRS 102 not to disclose transactions within members of the same group that are wholly owned.

 

During the year the company issued a loan to a joint venture in which it has partial interest in, totalling £7,967,000 (2023: £nil) including unpaid interest. Loans to joint ventures have no fixed terms of repayment. Interest is charged at a variable rate linked to bank borrowings within the joint venture and amounted to £490k for the year.

 

OGILVIE CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
24
Ultimate controlling party

The company's immediate parent undertaking is Ogilvie Group Limited, a company registered in Scotland.

This is the only parent undertaking for which group financial statements are drawn up and of which the

company is a member. Copies of Ogilvie Group Limited's financial statements can be obtained from the

Registrar of Companies, Companies House, Crown Way, Cardiff CF14 3UZ.

 

The directors consider that D H Ogilvie is the company's ultimate controlling party by virtue of his office and

his shareholding through Ogilvie Group Limited.

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