Company registration number 00516941 (England and Wales)
MOODY CONSTRUCTION LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
PAGES FOR FILING WITH REGISTRAR
MOODY CONSTRUCTION LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
MOODY CONSTRUCTION LTD
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
347,955
403,318
Investment properties
5
975,000
975,000
1,322,955
1,378,318
Current assets
Stocks
2,423,244
1,788,151
Debtors
6
1,400,623
1,222,006
Cash at bank and in hand
3,423,057
3,397,355
7,246,924
6,407,512
Creditors: amounts falling due within one year
7
(2,799,437)
(2,455,675)
Net current assets
4,447,487
3,951,837
Net assets
5,770,442
5,330,155
Capital and reserves
Called up share capital
8,250
8,250
Fair value reserve
85,000
85,000
Capital redemption reserve
4,650
4,650
Profit and loss reserves
5,672,542
5,232,255
Total equity
5,770,442
5,330,155
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 30 January 2025 and are signed on its behalf by:
Mr J R Moody
Director
Company Registration No. 00516941
MOODY CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
1
Accounting policies
Company information
Moody Construction Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Binks Close, Standard Way Business Park, Northallerton, North Yorkshire, DL6 2YB.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover of contracting income comprises the invoiced value of goods and services supplied by the company, exclusive of VAT and trade discounts and adjusted for movements in long-term contracts. It is the company's policy to recognise profits and turnover on all building contracts as contract activity progresses.
Turnover and profit on non-contract housing sales are only recognised on exchange of a binding contract for sale.
The company also receives rental income which is shown as "other operating income" in the financial statements and is recognised on an accruals basis of accounting.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% straight line/no depreciation on land
Plant and equipment
20% reducing balance
Fixtures and fittings
25% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.4
Investment properties
Investment property is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
MOODY CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 3 -
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving stock where appropriate.
Cost is calculated using the first-in, first-out method and includes all purchase, transport and handling costs in bringing stocks to their present location and condition.
1.7
Construction contracts
Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis based on the valuation of contract work performed by the year end less provision for any costs incurred post year end relating to the work performed. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the year in which they are first foreseen.
1.8
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.
1.9
Financial instruments
Debtors and creditors receivable/payable with a year
Debtors and creditors are recorded at transaction price receivable or payable within one year. Any losses arising from impairment are recognised in the profit and loss account within administrative expenses.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
MOODY CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 4 -
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty were:
Investment property valuations
The basis of valuation is shown in the accounting policies and in note 5 below.
Work in progress
Estimation of costs to completion are required to calculate the value of work in progress. The purpose of these estimates is to identify whether any provision is required for future losses. No provision has been recognised in these financial statements. The carrying value of work in progress is £2,015,914 (2023 £1,380,821).
Contract costs
Estimation of costs incurred post year end in relation to contracts in progress at the year end where the amount of those costs is not known with any certainty. No provision has been made for such costs in these financial statements. Gross amounts owed by contract customers are shown in note 6.
MOODY CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 5 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
47
46
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 May 2023
183,286
1,003,829
1,187,115
Additions
181,955
181,955
Disposals
(183,286)
(92,970)
(276,256)
At 30 April 2024
1,092,814
1,092,814
Depreciation and impairment
At 1 May 2023
61,639
722,158
783,797
Depreciation charged in the year
1,222
108,587
109,809
Eliminated in respect of disposals
(62,861)
(85,886)
(148,747)
At 30 April 2024
744,859
744,859
Carrying amount
At 30 April 2024
347,955
347,955
At 30 April 2023
121,647
281,671
403,318
Included in cost of land and buildings is freehold land of NIL (2023 - £49,288).
5
Investment property
2024
£
Fair value
At 1 May 2023 and 30 April 2024
975,000
Investment property comprises 5 freehold residential properties. The fair value of the investment property has been arrived at on the basis of a valuation carried out in January 2022 by Dacre, Son + Hartley, a firm regulated by RICS, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties and taking into account the condition of the properties. The directors do not believe that there has been a material change in the valuation at 30 April 2024.
The historical cost of investment property is £325,143 (2023 £325,143).
MOODY CONSTRUCTION LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 6 -
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
737,996
668,913
Gross amounts owed by contract customers
619,380
438,082
Other debtors
2,072
15,442
Prepayments and accrued income
41,175
99,569
1,400,623
1,222,006
7
Creditors: amounts falling due within one year
2024
2023
£
£
Payments received on account
968,677
337,000
Trade creditors
1,059,301
1,286,494
Taxation and social security
181,295
178,526
Other creditors
505,335
576,120
Accruals and deferred income
84,829
77,535
2,799,437
2,455,675
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Russell Eley FCCA
Statutory Auditor:
Xeinadin Audit Ltd
Date of audit report:
31 January 2025
9
Related party transactions
During the year, the company sold freehold property to Moody Construction Pension Scheme.
Included within creditors is an amount due to Forem (Properties) Ltd, a company under common control, of £20,224 (2023 £13,064),
10
Ultimate controlling party
The company is controlled by Mr J R Moody.