The directors present the strategic report for the year ended 30 September 2024.
Group Overview
Glencar Construction (Holdings) Ltd (“the Company”) is a holding company within the Glencar Construction Group (“the Group”).
The full trading results of Glencar Construction Limited are available from Companies House.
The Group is led by Glencar Construction Limited, a multi-award-winning contractor specialising in the construction of high-quality, market-leading, turnkey facilities. We work in partnership with some of the UK and Europe's leading property developers, investors, funds, owner operators, retailers, data centre operators, life science companies and transport and logistics businesses.
We have established ourselves in the construction industry since 2016 through controlled and sustainable growth. Initially as a new player in our core markets, we have since become one of the UK’s most successful privately-owned contractors. To this day, we retain our innovator mindset as Glencar becomes a larger-scale Tier One organisation.
Our teams are known for challenging traditional thinking and finding solutions to complex problems on-site. Our approach is driven by a culture of collaboration, honesty, agility, and innovative thinking.
Whether we are repositioning existing buildings or creating new ones, our ethos is based on going the extra mile to deliver quality and outstanding service through beneficial partnerships with the supply chain and our customers.
Health and Safety
Safety is paramount at Glencar. Our project planning process prioritises the provision of a safe working environment for our team, subcontractors, and for the communities in which we work. We promote a clear and positive safety culture, ensuring the well-being of all parties involved with our work. Careful planning of site logistics and project programmes at pre-contract stage is essential, and customer communication is high on the agenda from the earliest stages in order to ensure a safe and high-quality delivery.
Glencar undertakes careful management of health and safety, operating a culture of continuous improvement and regularly auditing all sites. Health and safety is first on the agenda in all site progress meetings and the Group maintains excellent safety standards across the board.
Glencar continue to work together with its innovation partner, innDex, to continuously enhance its health and safety management software offering. By partnering with innDex, we can leverage the expertise of a dedicated software development team to streamline processes, increase efficiency, and drive success on construction projects.
This collaboration ensures that we are at the forefront of construction technology, providing a competitive advantage and delivering the best results for our clients.
Glencar is the biggest user of the platform within the industry, and it provides us with the ability to gain full visibility across our projects, driving safety, consistency, productivity, and sustainability. The absolute transparency of the innDex platform also allows us to derive maximum value from the data and take intelligent, informed decisions that will drive many improvements, from project progress to health and safety performance.
The Gold Standard - Expect Nothing Less
The Gold Standard is a rigorous assessment of our health, safety, and quality practices and behaviours, environmental policies, and corporate social responsibility efforts.
Glencar’s Gold Standard programme reflects our commitment to upholding the highest standards of safety, sustainability, and ethical business practices. Our Gold Standard protocols and campaigns are testament to our dedication to creating a safe, healthy, and sustainable workplace for employees and on every site and office.
We are active in the local communities in which we operate and seek to create social value and opportunities wherever we can. This includes community partnerships and outreach, local employment, prioritising health and wellbeing and charity fundraising. In the past 12 months we have delivered over £35m worth of social value to local communities in the UK.
This includes delivering on Social Value targets for community partnerships and outreach, local employment, and local training and qualifications. Irrespective of customer requirements, Glencar will always target a minimum of 10% local spend on all projects, as part of our commitment to supporting the local communities in which we operate.
During the period, the Group has not been issued with any Health and Safety enforcement notices.
Staying True to Our Values
We pride ourselves on delivering an exceptional service, based on our unwavering commitment to our core values that underpin everything we do for customers.
We are a group based on honesty, integrity, innovation, excellence, and professionalism and insist on the highest standards of conduct from everyone in the business.
We are committed to fairness, customer service, and treating all stakeholders equally. Our values were developed in conjunction with our colleagues, giving everyone a sense of ownership.
We recruit and develop our people to be great leaders who represent the values of Glencar. We passionately believe that a key factor in determining Glencar’s success is attributed to the quality, professionalism, motivation, and commitment of every one of our colleagues.
We are dedicated to putting our customers first and maintaining the highest degree of integrity and excellence in all our business dealings. We extend the same standards to all our suppliers, sub-contractors, and any other business associates.
Our specialist contractors are the resource who deliver our promises and we take care to only partner with those who share our values. Part of our covenant to our supply chain partners is to always pay them on time, to ensure they can commit resources with confidence.
Business Review for the Period
The theme of 2024 is that of ‘balance’, as we have experienced consolidation, during a time of economic and industry upheaval, together with diversification into new and fast emerging sectors including Data Centres, Life Science, Ports, Civils, Infrastructure and Commercial.
We have continued to respond to the rapidly evolving and changing customer expectations and the needs of the market.
Industrial & Logistics Focus
We retain a key focus and true specialisation in Industrial & Logistics and have delivered important and high-profile developments in the period. This includes work performed for major brands and companies including SEGRO, Panattoni, Trebor, Wrenbridge, PLP, GLP, Stoford, Valor, Logicor, TCC, and Firethorn.
We are seen as a trusted delivery partner and achieve extremely high levels of customer retention and repeat business. Through this our exceptional teams and delivery partners continue to push the boundaries in terms of design, delivery, materials and processes.
Revaluation of Commercial Strategy
We have reevaluated our commercial strategy, ensuring we focus on the right type of work in order to deploy our resources efficiently, whilst effectively managing risk. As part of our focus and commitment in that area, we hired a Group Strategic Director in the period, John O’Grady.
With an impressive career spanning over 35 years in the industry, John most recently served as the Divisional Commercial Director at Volker Fitzpatrick for the past 13 years. John brings a wealth of knowledge and experience to our organisation.
John provides non-executive governance to our operations, ensuring that our strategic decisions align with our long-term objectives. His responsibilities at Glencar include overseeing business operations, ensuring uniformity across our operations, and enhancing our strengths while strategically capitalising on new opportunities.
People, Process, Platform
We have continued to invest in the ongoing development of our people and expert teams in terms of attracting and retaining the best talent in the market; providing training, learning and professional development, together with upskilling and strongly supporting employee’s wellbeing. Alongside this we continue seek ways to continually improve how we do things through the use of industry leading software, technology and applications.
Finally, we have continued to invest in our platform by expanding the reach of our regional office presence, customer teams, and expanding our specialist supply chain network.
ESG at the Core of our Operations
We continue to invest in the continued and progressive development of our ESG credentials, to align with our customers increasing carbon reduction expectations. This includes net zero alignment in construction, onsite energy production, and social value creation.
Regional Expansion and Core Consolidation
We now benefit from regional offices in St Albans, Birmingham, Manchester, Cambridge, Oxford, Bristol, and Kerry, with an increased ability to serve our customers where they are and to respond to expanding market/sector/regional requirements.
Across both our exceptional teams and our core business functions, like Finance, HR, IT, Building Services, Supply Chain and Marketing, we believe we have one of the strongest teams out there ready to move forward and capitalise on our next stage of development and growth.
Close to our roots, we are expanding our Ireland operation in response to strong growth drivers in I&L, fit-out, Data Centres and Life Science.
High Profile projects during 2024
Glencar deliver high-profile projects across a variety of sectors, showing diversity and balance. Whilst all projects are treated with equal importance, amongst the highlights are the following:
SEGRO V-Park Grand Union, a pioneering 134,225 square foot six storey industrial development presenting an innovative new concept for delivering light industrial warehousing space in areas where land is constrained, the first of its kind in the UK.
Construction of a new 240,000 square feet port-side Multi-user Warehouse (MUW) for Peel Ports at The Port of Liverpool in Merseyside. The building features one of the largest roof mounted PV panel installations ever seen in the UK.
LHR21: a major new six-storey 20MW data centre campus for Vantage set across 194,000 square feet at a strategic site situated close to Heathrow Airport.
The redevelopment of the world-famous Ealing Studios film production site in West London, adding a further 50,000 square feet of space whilst honouring the distinctive Art Deco look of the original 1930’s Grade II listed building.
Project Resilience: A new, cutting edge mRNA vaccine research, development and manufacturing facility for Moderna at the world-renowned Harwell Science and Innovation Campus in Oxfordshire.
A new 60,000 square foot state-of-the-art Life Science Research & Development facility for Aviva Investors, at Chesterford Research Park within the Cambridge Tech Cluster.
Construction of ‘Junction’ a new 220,000 square foot speculative industrial & logistics unit for Wrenbridge at their gateway site in Luton, located immediately adjacent to J12 off the M1.
A new 335,000 square foot industrial/distribution unit being developed speculatively by Trebor in Crewe to BREEAM Excellent standards and EPC A rated.
Highlights and Key Performance Indicators (KPIs)
The Group constantly reviews their KPIs, which are based on both financial and non-financial information, with particular focus on the following:
| 2024 | 2023 |
Revenue Profit before tax | £406.8m £4.8m | £405.9m £2.2m |
Gross Profit % | 5.7% | 5.1% |
Overheads as a % of Revenue Average contract value Project completions | 4.6% £18.7m 32 | 4.3% £16.9m 28 |
All Injury Frequency Rate (AIFR) | 0.06 | 0.07 |
Average Considerate Contractor Score Average headcount | 43 294 | 43 275 |
The results shown in these accounts demonstrate a strong improvement in all financial metrics. Turnover is consistent with 2023 however we have improved profitability, net asset value, and cash.
This has been achieved through our commitment to doing the right kind of work, alongside further investment into ensuring best-in-class processes.
Repeat business accounts for a significant percentage of our turnover, with current retention levels exceeding 80%. Meanwhile, we have expanded into new markets and targeted new opportunities, particularly in the Life Science and Data Centre sectors.
To ensure sustained growth and efficiency, we have undertaken significant ongoing investment in our head office and core business support functions. We have positioned ourselves within the market to take on upcoming opportunities with the availability and mobility of the right people and teams.
Looking forward
We have already secured a robust order book of £350 million for 2025, with strong project margins and well-established delivery teams. At the same time, our commitment to innovation and the integration of smart processes and technology is accelerating, ensuring that we stay at the forefront of industry trends.
We are targeting 10% revenue growth in the next financial year, followed by 10% in the following year. This ambitious goal is underpinned by our strategy of cultivating repeat business with our key client base while actively exploring strategic opportunities with new clients and in emerging markets.
A core focus for us remains the sustained improvement of profit margins, whilst all the while maintaining the high standards of service delivery that our clients expect. We are dedicated to achieving this delicate balance and ensuring that our growth does not compromise the excellence of our services.
Recognising that our success is intrinsically linked to our people, we are committed to investing in our workforce. This investment will involve increasing the number of team members and expanding our comprehensive training company-wide. Simultaneously, we will direct our investment towards fortifying our internal systems and processes, ensuring their resilience to provide both our customers and supply chain partners with the best possible service.
Environmental, Social, and Governance (ESG) Report
At Glencar, our Environmental, Social, and Governance (“ESG”) approach is designed to help us to create a positive impact on the world in which we operate.
Our commitment to ESG principles and sustainability is paramount. We firmly believe in responsible business practices, and continuously strive to reduce our environmental impact by embracing eco-friendly construction methods, sustainable materials, and energy-efficient technologies.
We are also dedicated to fostering a safe and inclusive work environment for our employees, actively participating in community initiatives to enhance wellbeing. We continue to prioritise strong governance practices, ensuring transparency, ethical behaviour, and accountability throughout our operations.
Our collective efforts reflect our unwavering dedication to ESG and sustainability, benefiting our business performance and the communities we serve.
We are committed to being a responsible business and to supporting customers in achieving their own sustainability targets. Led by a dedicated Director of ESG and specialist team, our ESG strategy focuses on the following key themes:
Net Zero Carbon
We continue to be Planet Mark certified.
All scope 1, 2 & 3 greenhouse gas emissions have been measured across the business using this code of conduct. The data for 2024 shows an overall decrease in carbon emissions for the period compared to the previous year. Our Scope 1 emissions have increased but his has been offset by reductions in our Scope 2 and 3 emissions.
The majority of our office purchase tariffs are now 100% renewables. Business travel emissions have also reduced in the year. This reductive impact is offset by an increase in site fuel use.
As well as developing our own carbon reduction plan, we continue to support customers in delivering Net Zero Carbon in Construction & Operation. We have helped our clients to reduce upfront carbon on a number of projects delivered in the period.
We have used the following methodologies within the calculation of our emissions and energy consumption:
The Green House Gas Protocol: Corporate Accounting and Reporting Standard
The Planet Mark Code of Conduct
Greenhouse gas emissions
|
| 2024 Tonnes CO2e | 2023 Tonnes CO2e |
Scope 1: Emissions from gas and construction site fuel use | Gas | 0.0 | 0.0 |
| Fuel | 723.6 | 666.4 |
Total scope 1 |
| 723.6 | 666.4 |
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Scope 2: Emissions from electricity use |
| 9.1 | 13.8 |
Total scope 2 |
| 9.1 | 13.8 |
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Scope 3: Emissions from business travel |
| 997.4 | 1,207.1 |
Total scope 3 |
| 997.4 | 1,207.1 |
|
|
|
|
Total scope 1, 2 & 3 emissions |
| 1,730.1 | 1,887.3 |
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Emission Intensity |
|
|
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tCO2e per employee (based on average headcount) |
| 6.0 | 7.0 |
Our stated goal is to be Net Zero Carbon for Scope 1 & 2 Emissions by 2025 and Net Zero Carbon for Scope 3 Emissions by 2045.
We are looking to take the following measures to improve our energy efficiency:
Implementing the use of Photo Voltaic arrays to battery storage to reduce energy consumption and increase renewable energy use on site
Switching to HVO as a renewable diesel substitute to reduce scope 1 emissions
Continue to encourage employees to operate zero emission vehicles via the Electric Car Scheme
The appointment of a decarbonisation and net zero specialist to emphasise dedication to sustainability
Responsible Procurement
We buy responsibly from an audited supply chain, prioritising sustainably certified products and service. We work with local suppliers where possible and are committed to the development of collaborative working relationships, structured procurement processes and continuous improvement as outlined in our Sustainable Procurement Policy.
We continue to monitor the performance of our Tier 1 supply chain in respect of their current abilities to deliver on BREEAM, net zero carbon, circularity, and social value objectives.
Supporting a Circular Economy
We work with our clients and stakeholders to deliver circular economy commitments through minimising resource use, driving down waste, and reviewing the adaptability of materials in their selection, as well as their impact on whole life carbon.
We continue to implement site-specific waste and resource management plans, setting specific targets based on construction waste resource efficiency benchmarks, which prioritise reuse of recycling. Recycled materials are used wherever possible, and we have applied an increased focus on the reuse of construction materials.
In the year, 98% of our waste was diverted from landfill.
Delivering Social Value
We are active in the local communities in which we operate and seek to create social value and opportunities wherever we can. This includes delivering on Social Value targets for community partnerships and outreach, local employment, local training, and qualifications. We also set targets to deliver health and well-being outcomes and charitable giving.
We have delivered millions of pounds of social value on our projects in 2024 as defined by the National TOMs Standards for calculation. Key highlights include:
TOMs social value: £35.3m
Local spend: £38.0m
Volunteering hours: 870
Number of students engaged (CIAG): 6,957
Glencar target a minimum of 10% local spend on all projects, (through a combination of services, local labour, and supply chain), as part of our commitment to supporting the local communities in which we operate.
Operational Excellence
Glencar is committed to working closely with customers to deliver high-quality projects. Collaboration is at the heart of our approach to project delivery, and we pride ourselves on our ability to build strong and productive relationships. By working closely with customers from the very beginning of a project, we gain a deep understanding of their needs and requirements and can tailor our approach accordingly. This collaborative approach ensures that projects are delivered on time, on budget, and to the highest possible standards.
Our teams leverage cutting-edge technology and digital tools to streamline our operations and optimise project outcomes. Our leadership drives excellence as one of our core values, driving continuous improvement in the everyday roles of our people, which is consistently evident in the work that we produce for our customers. We prioritise support for the development and growth of all team members, and colleagues are encouraged to seek responsibility and are empowered to make decisions.
Upskilling the Workforce
We take pride in supporting our colleagues with the continuous opportunity to enhance their personal and professional development. Our ethos is strongly focused on our people and ensuring that they are at their full potential.
We have a structured training plan in place whereby every employee will have the opportunity for self-development. This includes charterships with the CIOB, RICS, and external training providers, that focus on topics such as equality, diversity, the environment, and anti-bribery and corruption.
Charity
We have a charitable trust, The Glencar Foundation (GivingWorks Charity No.1078770) which is the focal point of all charitable activities for the group.
The foundation is proud to sponsor local charities in the locations in which we operate, as well as those close to the hearts of our team.
Health and Well-being
The health and well-being of our employees is our number one priority. Employees of all levels are encouraged to look out for each other’s well-being.
All employees have been provided with mental health awareness training. We promote the importance of wellness to our people and have implemented employee benefits that align with this strategy.
Section 172 statement
Section 172 of the Companies Act 2006 requires directors to act in a way that they consider, in good faith, would be most likely to promote the success of the Group for the benefit of its members as a whole. In doing so, directors must have regard to all the various stakeholders of the Group, as well as our impact on the community and the environment, and the likely consequences of strategic decisions in the long term.
As set out in the remainder of this strategic report, Glencar complies with these requirements. We interact regularly and openly with stakeholders, including employees, suppliers, and customers. We are taking steps to reduce our impact on both the environment and the local areas in which we operate, whilst encouraging and maintaining high standards of quality and conduct.
Strategic decisions are made at Board level, with particular focus on generating value for all stakeholders, whilst adhering to the key themes set out in our ESG strategy.
Employee engagement
Employee engagement levels have a direct impact on performance and productivity. Monitoring is key and we measure engagement levels via an annual Engagement Survey, which encourages direct feedback from our colleagues on what we do well and where improvement can be made. These results are analysed, and action plans put in place as we strive to maintain high levels of engagement.
The Group communicates relevant information to colleagues in a timely way via our internal communications channels, which could be via email, newsletters, webinars, or face to face briefings.
Performance Development Reviews (PDRs) are held on a twice annual basis with every team member. These PDRs give our team members a chance to review their performance against targets set previously, to set future goals, to review training and development needs, and to discuss any concerns affecting their mental well-being.
The Group consults with colleagues on an individual or team basis, so that the views of employees can be taken into account when making decisions which are likely to affect their interests.
Engagement with suppliers, customers and others in a business relationship with the Group
Throughout the last year, Glencar has carefully cultivated and strengthened its business relationships with suppliers, customers, and various stakeholders, underscoring our commitment to fostering long-term partnerships. By prioritising open communication, transparency, and mutual respect, we have not only solidified existing connections with existing customers, but also forged new partnerships that contribute to the overall growth and success of the business.
Our collaborative efforts with suppliers ensure a robust and reliable supply chain, minimise disruptions, and enhance operational efficiency.
As part of our 'Doing It Differently' strategy, we put a big emphasis on nurturing our relationships with our supply chain partners.
Disabled employees
The Group is committed to providing equal opportunities in all aspects of employment including recruitment, salary and working conditions, training, personal development, promotion opportunities and general conduct at work. It is against the Group’s Equal Opportunities Policy to discriminate either directly or indirectly on the grounds of disability (or any other protected characteristic).
Reasonable adjustments to the recruitment process are made to ensure that no applicant is disadvantaged because of their disability.
Colleagues are requested to disclose any disability to enable the Group to provide any support required or to put in place any reasonable adjustments that may be appropriate.
Risks and Uncertainties
Economic Conditions
The UK economy has gone through a turbulent period in which we have seen Brexit, COVID-19, high inflation, and increasing interest rates. Whilst these appear to have levelled out recently, the risk of recession still exists.
A slowdown in the construction industry could lead to a reduction in contract awards and revenues. Glencar aim to mitigate this through robust customer relationships, exceptional project delivery, and diversification.
Contract Risk
Due to relatively small margins across the industry, a downturn in project profitability could lead to a contract becoming loss making. This risk is addressed through robust cost management, an experienced estimating department, and thorough design management and planning.
Supply Chain
The last few years have seen an increase in the number of insolvencies across the industry. Where this affects our supply chain, this can in turn impact our ability to deliver projects on time and to budget. We work closely with our supply chain to ensure their financial stability and seek to assist in any way we can.
Financing
There is no external debt in the business other than a mortgage over our head office. We monitor cashflow forecasts on a regular basis, and structure all contracts to protect our cash position. We remain vigilant and flexible to foresee and overcome any short-term issues.
Glencar work closely with underwriters in the credit insurance and surety markets to ensure we maintain sufficient levels of support.
On behalf of the board
The directors present their annual report and financial statements for the year ended 30 September 2024.
The results for the year are set out on page 16.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
We have audited the financial statements of Glencar Construction (Holdings) Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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).
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 group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The 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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
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 identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the Directors (as required by auditing standards).
we had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.
with the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the Directors.
we communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.
we addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
Our audit procedures were designed to respond to risks of material misstatement 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 deliberate concealment by, for example, forgery, misrepresentations or through collusion. 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.
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.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £4,908 (2023 - £831,604 profit).
Glencar Construction (Holdings) Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Glencar House, 32-34 Upper Marlborough Road, St Albans, Hertfordshire, AL1 3UU.
The group consists of Glencar Construction (Holdings) Ltd and all of its subsidiaries.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Glencar Construction (Holdings) Ltd together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 30 September 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control effectively commences until the date that control ceases.
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.
Revenue is recognised at the fair value of the consideration received or receivable for goods and services
provided in the normal course of business, and is shown net of VAT and discounts.
Revenue comprises the fair value of construction carried out in the year, based on an internal assessment of work carried out. Once the outcome of a construction contract can be estimated reliably, revenue is recognised in the Statement of comprehensive income on a stage of contract completion basis. Amounts recoverable on long term contracts, included within debtors, represent revenue, less progress payments received. Where progress payments exceed revenue, the excess is shown as amounts payable on long term contracts within current liabilities. For the company's overall accounting policy in relation to construction contracts refer to note 1.8.
Freehold land is not depreciated. As a result of improvements made to the relevant property, that have recently completed, Freehold buildings are also not depreciated. This policy will be reviewed by the directors in future periods.
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 recognised in the profit and loss account.
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in profit or loss.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded, which are recognised at cost less impairment.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group 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. At each reporting period end date investments not carried at fair value are also assessed to determine whether there are any indications of impairment.
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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, 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.
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.
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.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.
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 group after deducting all of its 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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group 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 group.
The tax expense represents the sum of the tax currently payable and deferred 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 profit and loss account, 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 if, and only if, there is 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.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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 leased asset are consumed.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
In the application of the group’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.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Recognised amounts on construction contract revenues and related receivables reflect the directors' best estimate of long-term contracts outcome and stage of completion. This includes the assessment of the profitability of the long-term contracts. Costs to complete and contract profitability are subject to significant estimation and uncertainty.
An analysis of the group's turnover is as follows:
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
During the previous year the company's investment in an unlisted company was fully impaired, this including a related element treated as debt included within other debtors. The investment is fully impaired due to the unlisted company going into liquidation.
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:
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
The fair value of the Freehold land and buildings has been arrived at on the basis of a valuation carried out 2 October 2024 by CBW Surveyors Limited, who are not connected with the group. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The historical cost of Freehold land and buildings is £5,512,229 (2023 - £5,322,584).
The company owns 100% of the ordinary share capital of the following subsidiaries at 30 September 2024:
Glencar Construction Ltd
Glencar Construction (Freehold) Ltd
Glencar Contractors Ltd is 100% owned by Glencar Construction Ltd, and therefore deemed a subsidiary undertaking. Glencar Construction Ltd and Glencar Contractors Ltd both operate in the construction sector. Glencar Construction (Freehold) Ltd is a property investment company.
The registered office address for Glencar Construction Ltd and Glencar Construction (Freehold) Ltd is Glencar House, 32-34 Upper Marlborough Road, St Albans, Hertfordshire, AL1 3UU, and for Glencar Contractors Ltd it is Langford Street, Killorglin, Co. Kerry, Ireland.
Other debtors are stated after provisions for impairment of £500,000 (2023 - £500,000).
Bank loans are secured by way of a legal charge over assets of the group, and guarantees made by companies within the group.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
As part of a group reorganisation in 2022, entities were combined to the group structure. The merger accounting principles applied gave rise to a merger reserve in the consolidated balance sheet.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The remuneration of key management personnel is as follows.
During the year the group entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date:
The above outstanding balance is interest free and repayable on demand.
The company is exempt from disclosing other related party transactions as they are with other members of the group, and are wholly owned subsidiaries.
Dividends totalling £0 (2023 - £764,314) were paid in the year in respect of shares held by the company's directors.
The directors had interest-bearing loans during the year. The movements on the loans during the year were as follows:
The outstanding balances have been repaid in full post the balance sheet date.