Company registration number SC105726 (Scotland)
T. & N. GILMARTIN (CONTRACTORS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
T. & N. GILMARTIN (CONTRACTORS) LIMITED
COMPANY INFORMATION
Directors
Mrs D M McElhinney
Mr P J McElhinney
Mr S J Mercer
(Appointed 15 May 2024)
Mr P J Reilly
(Appointed 15 May 2024)
Company number
SC105726
Registered office
Mont-View House
Hangmans Lane
Cupar
Fife
United Kingdom
KY15 4PG
Auditor
Azets Audit Services
5 Whitefriars Crescent
Perth
United Kingdom
PH2 0PA
Bankers
The Royal Bank Of Scotland
18 Crossgate
Cupar
Fife
United Kingdom
KY15 5HH
T. & N. GILMARTIN (CONTRACTORS) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
T. & N. GILMARTIN (CONTRACTORS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
The directors present the strategic report for the year ended 30 April 2024.
Review of the business
The company's turnover has increased by 5.96% when compared to the previous year. This rise in turnover is mainly attributable to prestigious contracts won within the lighting and road surfacing divisions.The gross profit margin has decreased by 0.32%. The company has continued to trade profitably and strengthen the overall net assets position.
The directors are pleased with the results generated in the year. In order to ensure sustained profitability, the company has continued its focus on controlling and reducing costs where possible.
Financial risk management objectives and policies
The company's principal financial instruments comprise directors loans and bank deposits. The main purpose of these financial instruments is to raise finance for the company's operations. The company has various other financial instruments such as trade debtors and trade creditors, which arise directly from operations. The main risks arising from the company's financial instruments relate to credit. The board reviews and agrees policies for managing these risks as summarised below.
Credit risk
The company trades with only recognised, creditworthy third parties. In addition, receivable balances are monitored on an ongoing basis with the result that the company's exposure to bad debts is not significant.
Principal risks and uncertainties
The company has exposure to a number of risks and uncertainties including government regulation and the tender process for contracts. The company monitors developments in these areas on an ongoing basis to ensure that the effects of any changes can be mitigated.
Mrs D M McElhinney
Director
31 January 2025
T. & N. GILMARTIN (CONTRACTORS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
The directors present their annual report and financial statements for the year ended 30 April 2024.
Principal activities
The principal activity of the company continued to be that of landscaping, civil engineering, grounds maintenance, street lighting and surfacing.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £220,000.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mrs D M McElhinney
Mr P J McElhinney
Mr S J Mercer
(Appointed 15 May 2024)
Mr P J Reilly
(Appointed 15 May 2024)
Auditor
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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
Mrs D M McElhinney
Director
31 January 2025
T. & N. GILMARTIN (CONTRACTORS) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
T. & N. GILMARTIN (CONTRACTORS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF T. & N. GILMARTIN (CONTRACTORS) LIMITED
- 4 -
Opinion
We have audited the financial statements of T. & N. Gilmartin (Contractors) Limited (the 'company') for the year ended 30 April 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 April 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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' eport 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.
T. & N. GILMARTIN (CONTRACTORS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF T. & N. GILMARTIN (CONTRACTORS) LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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.
T. & N. GILMARTIN (CONTRACTORS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF T. & N. GILMARTIN (CONTRACTORS) LIMITED
- 6 -
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 and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Sally Cheeney
Senior Statutory Auditor
For and on behalf of Azets Audit Services
31 January 2025
Chartered Accountants
Statutory Auditor
5 Whitefriars Crescent
Perth
United Kingdom
PH2 0PA
T. & N. GILMARTIN (CONTRACTORS) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
9,151,707
8,636,632
Cost of sales
(7,551,412)
(7,098,389)
Gross profit
1,600,295
1,538,243
Administrative expenses
(488,904)
(419,986)
Other operating income
9,269
5,427
Operating profit
4
1,120,660
1,123,684
Interest receivable and similar income
8
90,656
20,301
Interest payable and similar expenses
7
(3,523)
Profit before taxation
1,207,793
1,143,985
Tax on profit
9
(306,225)
(217,338)
Profit for the financial year
901,568
926,647
The profit and loss account has been prepared on the basis that all operations are continuing operations.
T. & N. GILMARTIN (CONTRACTORS) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
2024
2023
£
£
Profit for the year
901,568
926,647
Other comprehensive income
-
-
Total comprehensive income for the year
901,568
926,647
T. & N. GILMARTIN (CONTRACTORS) LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,773,794
1,571,669
Investments
12
8,175
8,175
1,781,969
1,579,844
Current assets
Stocks
13
118,296
440,411
Debtors
14
1,261,637
1,149,213
Cash at bank and in hand
5,113,565
4,251,134
6,493,498
5,840,758
Creditors: amounts falling due within one year
15
(1,177,777)
(1,149,585)
Net current assets
5,315,721
4,691,173
Total assets less current liabilities
7,097,690
6,271,017
Creditors: amounts falling due after more than one year
16
(89,496)
Provisions for liabilities
Deferred tax liability
18
250,839
195,230
(250,839)
(195,230)
Net assets
6,757,355
6,075,787
Capital and reserves
Called up share capital
20
904
904
Capital redemption reserve
(100)
(100)
Profit and loss reserves
21
6,756,551
6,074,983
Total equity
6,757,355
6,075,787
The financial statements were approved by the board of directors and authorised for issue on 31 January 2025 and are signed on its behalf by:
Mrs D M McElhinney
Mr P J McElhinney
Director
Director
Company Registration No. SC105726
T. & N. GILMARTIN (CONTRACTORS) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 May 2022
904
(100)
5,356,336
5,357,140
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
-
926,647
926,647
Dividends
10
-
-
(208,000)
(208,000)
Balance at 30 April 2023
904
(100)
6,074,983
6,075,787
Year ended 30 April 2024:
Profit and total comprehensive income for the year
-
-
901,568
901,568
Dividends
10
-
-
(220,000)
(220,000)
Balance at 30 April 2024
904
(100)
6,756,551
6,757,355
T. & N. GILMARTIN (CONTRACTORS) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
1,582,810
918,558
Interest paid
(3,523)
Income taxes paid
(215,888)
(52,714)
Net cash inflow from operating activities
1,363,399
865,844
Investing activities
Purchase of tangible fixed assets
(398,717)
(264,580)
Proceeds on disposal of tangible fixed assets
39,219
13,400
Repayment of directors loans
3,322
159,871
Interest received
90,566
20,211
Dividends received
90
90
Net cash used in investing activities
(265,520)
(71,008)
Financing activities
Payment of finance leases obligations
(15,448)
Dividends paid
(220,000)
(208,000)
Net cash used in financing activities
(235,448)
(208,000)
Net increase in cash and cash equivalents
862,431
586,836
Cash and cash equivalents at beginning of year
4,251,134
3,664,298
Cash and cash equivalents at end of year
5,113,565
4,251,134
T. & N. GILMARTIN (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
1
Accounting policies
Company information
T. & N. Gilmartin (Contractors) Limited is a private company limited by shares incorporated in Scotland. The registered office is Mont-View House, Hangmans Lane, Cupar, Fife, United Kingdom, KY15 4PG.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain fixed asset investments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings
1% on cost
Plant and equipment
20% on reducing balance
Office equipment
20% on cost and 20% on reducing balance
Motor vehicles
25% on reducing balance
T. & N. GILMARTIN (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
No depreciation is charged on land.
1.5
Fixed asset investments
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through the profit and loss account if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
T. & N. GILMARTIN (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
1.8
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
T. & N. GILMARTIN (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
T. & N. GILMARTIN (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -
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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
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 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.
T. & N. GILMARTIN (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 17 -
1.15
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Construction contracts
The company estimates the outcome of its construction contracts. This is normally measured by total costs incurred to date plus relevant proportion of expected profit for that contract.
Estimated profits are based on management's detailed budgets and projections.
Where management judge that the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable they will be recoverable.
Contract costs are recognised as expenses in the period in which they are incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.
3
Turnover and other revenue
2024
2023
£
£
Other revenue
Interest income
90,566
20,211
Dividends received
90
90
T. & N. GILMARTIN (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 18 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,270
7,700
Depreciation of owned tangible fixed assets
274,577
239,149
Depreciation of tangible fixed assets held under finance leases
42,389
-
Profit on disposal of tangible fixed assets
(5,852)
(2,163)
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
2
2
Administration
2
2
Direct labour
90
85
Total
94
89
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,030,192
2,794,617
Social security costs
294,382
292,192
Pension costs
130,643
115,935
3,455,217
3,202,744
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
96,701
97,500
Company pension contributions to defined contribution schemes
40,000
40,000
136,701
137,500
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
T. & N. GILMARTIN (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
7
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
3,523
-
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
89,735
19,500
Other interest income
831
711
Total interest revenue
90,566
20,211
Other income from investments
Dividends received
90
90
Total income
90,656
20,301
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
250,616
215,888
Deferred tax
Origination and reversal of timing differences
55,609
1,450
Total tax charge
306,225
217,338
T. & N. GILMARTIN (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
9
Taxation
(Continued)
- 20 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,207,793
1,143,985
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
301,948
285,996
Tax effect of expenses that are not deductible in determining taxable profit
3,406
2,703
Tax at marginal rate
(60,989)
Dividend income
(22)
(Proft)/Loss on disposal of fixed assets
(1,463)
(541)
Timing differences
55,609
1,450
Capital allowances in excess of depreciation
(53,253)
(11,281)
Taxation charge for the year
306,225
217,338
10
Dividends
2024
2023
£
£
Interim paid
220,000
208,000
T. & N. GILMARTIN (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
11
Tangible fixed assets
Land and buildings
Plant and equipment
Office equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
734,514
3,621,335
123,777
337,434
4,817,060
Additions
111,052
6,856
434,550
552,458
Disposals
(272,705)
(32,544)
(305,249)
At 30 April 2024
734,514
3,459,682
130,633
739,440
5,064,269
Depreciation and impairment
At 1 May 2023
65,259
2,804,530
111,741
263,861
3,245,391
Depreciation charged in the year
7,251
179,553
3,950
126,212
316,966
Eliminated in respect of disposals
(242,609)
(29,273)
(271,882)
At 30 April 2024
72,510
2,741,474
115,691
360,800
3,290,475
Carrying amount
At 30 April 2024
662,004
718,208
14,942
378,640
1,773,794
At 30 April 2023
669,255
816,805
12,036
73,573
1,571,669
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant and equipment
127,166
12
Fixed asset investments
2024
2023
£
£
Listed investments
8,175
8,175
13
Stocks
2024
2023
£
£
Raw materials and consumables
32,226
7,158
Work in progress
86,070
433,253
118,296
440,411
T. & N. GILMARTIN (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 22 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,176,318
1,107,964
Other debtors
58,248
23,775
Prepayments and accrued income
27,071
17,474
1,261,637
1,149,213
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
17
48,797
Trade creditors
265,633
379,541
Corporation tax
250,616
215,888
Other taxation and social security
399,357
329,934
Other creditors
4,416
576
Accruals and deferred income
208,958
223,646
1,177,777
1,149,585
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
17
89,496
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
48,797
In two to five years
89,496
138,293
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease team is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
T. & N. GILMARTIN (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Deferred tax liabilities
250,839
195,230
2024
Movements in the year:
£
Liability at 1 May 2023
195,230
Charge to profit or loss
55,609
Liability at 30 April 2024
250,839
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
130,643
115,935
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.
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
900
900
900
900
B Ordinary shares of £1 each
2
2
2
2
C Ordinary shares of £1 each
2
2
2
2
904
904
904
904
21
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
6,074,983
5,356,336
Profit for the year
901,568
926,647
Dividends declared and paid in the year
(220,000)
(208,000)
At the end of the year
6,756,551
6,074,983
T. & N. GILMARTIN (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
22
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
147,170
149,022
23
Directors' transactions
Advances or credits have been granted by the company to its directors as follows:
Dividends totalling £220,000 (2023 - £208,000) were paid in the year in respect of shares held by the company's directors.
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Directors' loan account
2.25
3,322
150,131
831
(158,322)
(4,038)
3,322
150,131
831
(158,322)
(4,038)
24
Ultimate controlling party
T & N Gilmartin Trading Limited (incorporated in Scotland) is regarded by the directors as being the company's ultimate parent company.
Until 15 May 2024 T & N Gilmartin (Contractors) Limited has been controlled by the McElhinney family.
From 15 May 2024 the ultimate controlling party is T & N Gilmartin (Contractors) Eot Trustee Limited (SC810469), a Private Limited Company with a registered office at Mont-View House, Hangmans Lane, Cupar, Fife, KY15 4PG.
T. & N. GILMARTIN (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 25 -
25
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
901,568
926,647
Adjustments for:
Taxation charged
306,225
217,338
Finance costs
3,523
Investment income
(90,656)
(20,301)
Gain on disposal of tangible fixed assets
(5,852)
(2,163)
Depreciation and impairment of tangible fixed assets
316,966
239,149
Movements in working capital:
Decrease/(increase) in stocks
322,115
(265,574)
Increase in debtors
(115,746)
(242,313)
(Decrease)/increase in creditors
(55,333)
65,775
Cash generated from operations
1,582,810
918,558
26
Analysis of changes in net funds
1 May 2023
Cash flows
New finance leases
30 April 2024
£
£
£
£
Cash at bank and in hand
4,251,134
862,431
-
5,113,565
Obligations under finance leases
-
15,448
(153,741)
(138,293)
4,251,134
877,879
(153,741)
4,975,272
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