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Registration number: 01899061

Murrill Construction Limited

Annual Report and Financial Statements

for the Year Ended 30 September 2024

 

Murrill Construction Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 8

Profit and Loss Account

9

Balance Sheet

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Financial Statements

13 to 24

 

Murrill Construction Limited

Company Information

Directors

Mr N O Mason

Mrs M Mason

Mr A E Sargeant

Mrs R Sargeant

Mr M O Mason

Mr S A O Masey

Company secretary

Mrs R Sargeant

Registered office

21 Market Place
Blandford Forum
Dorset
DT11 7AF

Auditors

Harney & Co Limited
Registered Auditors and Chartered Certified Accountants21 Market Place
Blandford Forum
Dorset
DT11 7AF

 

Murrill Construction Limited

Strategic Report for the Year Ended 30 September 2024

Introduction

The directors are pleased to present their strategic report for the financial year ended 30 September 2024. This report provides an overview of the company’s principal activities, business performance, future outlook, and key risks and uncertainties.

Principal activity

The principal activity of the company is specialist construction focused on the maintenance, renewal and improvement of highways, pavements, and footways. The company delivers high-quality infrastructure projects primarily for Local Authority Clients, ensuring the safety, durability, and efficiency of road networks and public spaces.

Fair review of the business

Murrill Construction Limited remains committed to excellence in infrastructure maintenance and improvement. Our core activities include: -

• Highway maintenance
• Highway construction
• Public realm and street scene improvements
• Civil engineering works
• Associated works relating to the above, providing clients with a “one stop” solution for clients.

Throughout the reporting period, the company continued to navigate a challenging operating environment characterised by volatile material costs and rising energy prices, largely driven by global geopolitical instability. These external pressures have placed significant strain on the construction sector, necessitating agile business strategies to maintain operational efficiency and financial stability.

Despite these challenges, the directors remain confident in the company’s resilience and long-term growth prospects. Through careful cost management, strategic planning, and a strong focus on service quality Murrill Construction Limited has successfully mitigated industry challenges whilst improving its financial position.

Looking forward, the company has secured a strong order book for the forthcoming financial year, reinforcing expectations for continued recovery and expansion. The company remains focused on achieving sustainable growth, strengthening client relationships, and improving operational efficiencies to enhance profitability. However, the directors understand that ongoing economic uncertainty requires a careful approach to managing risks and adjusting strategies.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2024

2023

Gross profit margin

%

20.12

17.08

Net profit

%

1.05

(1.43)

Current ratio

n/a

1.17

1.22

The two main non-financial key performance indicators (KPI's) included in the company's business plan are as follows:

• existing client base retention
• expansion of services provided to our existing client base

Murrill Construction Limited continues to meet its key performance indicators (KPIs), showing a strong commitment to quality, innovation, and customer satisfaction. This success is evident in the company’s ability to maintain strong relationships with its existing clients. The company has also broadened its range of services for current clients, offering more comprehensive and tailored solutions to meet their changing needs. These achievements highlight Murrill Construction Limited's dedication to sustainable growth, operational excellence, and providing outstanding value to its clients.

 

Murrill Construction Limited

Strategic Report for the Year Ended 30 September 2024 (continued)

Principal risks and uncertainties

The construction sector continues to face significant external risks, including:

• Material and Energy Cost Volatility: The ongoing fluctuations in raw material prices and energy costs remain a considerable challenge for the industry. However, Murrill Construction Limited’s diversified supply chain and proactive procurement strategies mitigate these risks.

• Inflationary Pressures: Rising inflation poses broader economic risks, impacting both operational costs and consumer confidence. The company continuously evaluates cost-saving measures and operational efficiencies to counteract these pressures.

• Labour Market Challenges: The construction industry continues to experience a shortage of skilled labour. In response, Murrill Construction Limited remains committed to workforce development, investing in apprenticeships and training programs to cultivate a skilled and sustainable workforce.

• Supply Chain Resilience: The company maintains a strategic focus on supplier diversification to prevent over-reliance on any single provider, ensuring continuity of service and operational flexibility.

Strategic Outlook

As part of its forward-looking strategy, Murrill Construction Limited is prioritising innovation, operational efficiency, and financial sustainability. Key areas of focus include:

• Enhancing Service Delivery: Continuous investment in technology and process optimisation to improve efficiency and quality.

• Sustainable Growth Initiatives: Expansion of service offerings and strengthening of client relationships to drive long-term stability.

• Operational Excellence: Streamlining internal processes to enhance productivity and profitability.

• Resilience and Adaptability: Ensuring the company remains agile in response to evolving industry dynamics and economic conditions.

The directors remain steadfast in their commitment to delivering high-quality construction and maintenance services while fostering a culture of innovation and continuous improvement. By maintaining a strong financial foundation and strategic agility, Murrill Construction Limited is well-positioned for sustained success in the coming years.

Approved and authorised by the Board on 21 February 2025 and signed on its behalf by:
 

.........................................
Mr A E Sargeant
Director

 

Murrill Construction Limited

Directors' Report for the Year Ended 30 September 2024

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

Directors of the company

The directors who held office during the year were as follows:

Mr N O Mason

Mrs M Mason

Mr A J Williams (ceased 3 May 2024)

Mr A E Sargeant

Mrs R Sargeant - Company secretary and director

Mr M O Mason

Mr S A O Masey

Financial instruments

Objectives and policies

The company is able to fund its working capital from trading income and has no external funding requirements. The company has not entered into any complex financial instruments and has no plans to use hedging as a means to manage financial risk.

Price risk, credit risk, liquidity risk and cash flow risk

The directors consider that the company is not exposed to significant price fluctuations as contracts are tendered for and prices agreed ahead of undertaking work. Contracts are paid regularly based on interim measures so that a healthy cash flow is maintained, and creditors paid within the terms of agreement.

Going concern

The financial statements have been prepared on a going concern basis.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 21 February 2025 and signed on its behalf by:
 

.........................................
Mr A E Sargeant
Director

 

Murrill Construction Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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.

 

Murrill Construction Limited

Independent Auditor's Report to the Members of Murrill Construction Limited

Opinion

We have audited the financial statements of Murrill Construction Limited (the 'company') for the year ended 30 September 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of 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 September 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Murrill Construction Limited

Independent Auditor's Report to the Members of Murrill Construction Limited (continued)

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

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 directors' 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 Statement of Directors' Responsibilities [set out on page 5], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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

 

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management of its own consideration of fraud. In particular, we looked at where management made subjective judgements.

 

We also considered potential financial or other pressures, opportunity, and motivations for fraud. As part of this discussion, we identified the internal controls established to mitigate risks related to fraud or noncompliance with laws and regulations and how management monitor these processes. Appropriate procedures included the review and testing of manual journals and key estimates and judgements made by management.

 

Murrill Construction Limited

Independent Auditor's Report to the Members of Murrill Construction Limited (continued)

 

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, drawing on our broad sector experience, and considered the risk of acts by the company that were contrary to these laws and regulations, including fraud.

 

We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, CDM Regulations, Health & Safety at Work Act, PUWER & LOLER, UK tax legislation and equivalent local laws and regulations.

 

We made enquiries of management with regards to compliance with the above laws and regulations and, where it was considered necessary, we corroborated any evidence to relevant information.

 

Our tests included agreeing the financial statements disclosures to underlying supporting documentation and enquiries with management.

 

We did not identify any key audit matters relating to irregularities, including fraud. As in all of our audits, we also addressed the risk of management override of internal controls including testing journals and evaluation whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

 

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: 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.

......................................
Mr S J Harney (Senior Statutory Auditor)
For and on behalf of Harney & Co Limited, Statutory Auditor
 21 Market Place
Blandford Forum
Dorset
DT11 7AF

21 February 2025

 

Murrill Construction Limited

Profit and Loss Account for the Year Ended 30 September 2024

Note

2024
£

2023
£

Turnover

3

15,769,648

15,017,945

Cost of sales

 

(12,615,598)

(12,453,055)

Gross profit

 

3,154,050

2,564,890

Administrative expenses

 

(2,986,777)

(2,988,842)

Other operating income

4

47,782

188,843

Operating profit/(loss)

5

215,055

(235,109)

Other interest receivable and similar income

7

19,792

14,871

Interest payable and similar expenses

8

(27,219)

(36,821)

   

(7,427)

(21,950)

Profit/(loss) before tax

 

207,628

(257,059)

Tax on profit/(loss)

12

(56,633)

42,313

Profit/(loss) for the financial year

 

150,995

(214,746)

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Murrill Construction Limited

(Registration number: 01899061)
Balance Sheet as at 30 September 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

13

197,175

257,428

Current assets

 

Stocks

14

675,054

408,286

Debtors

15

13,259,169

12,809,604

Cash at bank and in hand

 

2,391,171

999,036

 

16,325,394

14,216,926

Creditors: Amounts falling due within one year

17

(13,931,703)

(11,615,568)

Net current assets

 

2,393,691

2,601,358

Total assets less current liabilities

 

2,590,866

2,858,786

Creditors: Amounts falling due after more than one year

17

(296,231)

(541,303)

Provisions for liabilities

18

(46,853)

(60,696)

Net assets

 

2,247,782

2,256,787

Capital and reserves

 

Called up share capital

100

100

Retained earnings

2,247,682

2,256,687

Shareholders' funds

 

2,247,782

2,256,787

Approved and authorised by the Board on 21 February 2025 and signed on its behalf by:
 

.........................................
Mr N O Mason
Director

.........................................
Mr A E Sargeant
Director

 

Murrill Construction Limited

Statement of Changes in Equity for the Year Ended 30 September 2024

Share capital
£

Retained earnings
£

Total
£

At 1 October 2023

100

2,256,687

2,256,787

Profit for the year

-

150,995

150,995

Dividends

-

(160,000)

(160,000)

At 30 September 2024

100

2,247,682

2,247,782

Share capital
£

Retained earnings
£

Total
£

At 1 October 2022

100

2,591,433

2,591,533

Loss for the year

-

(214,746)

(214,746)

Dividends

-

(120,000)

(120,000)

At 30 September 2023

100

2,256,687

2,256,787

 

Murrill Construction Limited

Statement of Cash Flows for the Year Ended 30 September 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit/(loss) for the year

 

150,995

(214,746)

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

66,134

95,545

Finance income

7

(19,792)

(14,871)

Finance costs

8

27,219

36,821

Income tax expense

12

56,633

(42,313)

 

281,189

(139,564)

Working capital adjustments

 

(Increase)/decrease in stocks

14

(266,768)

11,542

Increase in trade debtors

15

(485,731)

(2,111,544)

Increase in trade creditors

17

2,289,959

2,299,864

Cash generated from operations

 

1,818,649

60,298

Income taxes received/(paid)

12

11,000

(66,564)

Net cash flow from operating activities

 

1,829,649

(6,266)

Cash flows from investing activities

 

Interest received

7

19,792

14,871

Acquisitions of tangible assets

(5,881)

(611)

Proceeds from sale of tangible assets

 

-

22,037

Net cash flows from investing activities

 

13,911

36,297

Cash flows from financing activities

 

Interest paid

8

(27,219)

(36,821)

Proceeds from bank borrowing draw downs

 

(160,000)

(160,000)

Payments to finance lease creditors

 

(104,206)

(103,720)

Dividends paid

21

(160,000)

(120,000)

Net cash flows from financing activities

 

(451,425)

(420,541)

Net increase/(decrease) in cash and cash equivalents

 

1,392,135

(390,510)

Cash and cash equivalents at 1 October

 

999,036

1,389,546

Cash and cash equivalents at 30 September

 

2,391,171

999,036

 

Murrill Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
21 Market Place
Blandford Forum
Dorset
DT11 7AF

The principal place of business is:
Greenford Depot
Greenford Road
Greenford
Middlesex
UB6 9AP

These financial statements were authorised for issue by the Board on 21 February 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling which is the functional currency of the company and rounded to the nearest £1.

Going concern

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of discounts and Value Added Tax.

The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity, and specific criteria have been met for each of the company's activities.

Contract revenue recognition

The company’s principle activity is the construction and maintenance of roads and footways. Revenue is recognised inline with cost of measures to date (work completed), with the gross amount due from customers for contracted work being disclosed under debtors due in one year as accrued income. The gross amount paid in advance from customers for contracted work is disclosed under creditors due within one year.

 

Murrill Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

2

Accounting policies (continued)

Government grants

Government grants are recognised when it is reasonable to expect that the grants will be received and that all related conditions will be met.

Grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets by equal annual instalments. And grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.

Tax

Taxation expense represents the aggregate amount of current tax and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except where an item of income or expense is recognised as other comprehensive income, in which case the associated taxation is also recognised directly in other comprehensive income.

Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that that have been enacted or substantively enacted by the reporting date.

A deferred tax asset or liability is recognised for tax recoverable or payable in future periods in respect of transactions and events recognised in the financial statements of current and previous periods.

Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. Timing differences result from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.

Deferred tax is recognised on all timing differences at the reporting date apart from certain exceptions. Unrelieved tax losses and other deferred tax assets are only 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing differences. Deferred tax relating to land and investment properties that is measured at fair value is measured using the tax rates and allowances that apply to the sale of the asset.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Short leasehold

over the 7 year life of the lease

Plant and machinery

25% reducing balance on long life assets

Motor vehicles

25% reducing balance

 

Murrill Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

2

Accounting policies (continued)

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for work undertaken or services performed in the ordinary course of business. Trade receivables are recognised at the transaction price less any impairment for amounts not considered to be recoverable.

Stocks

Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. Trade creditors are recognised at transaction price.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated in line with the depreciation accounting policy for the relevant class of asset. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

Murrill Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

2

Accounting policies (continued)

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Financial instruments

Classification
The company has basic financial instruments which are classified, measured and accounted for according to the substance of the contractual arrangement, as financial assets or financial liabilities. The company has not entered into any complex financial instruments.
 

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2024
£

2023
£

Work carried out

15,769,648

15,017,945

The analysis of the company's Turnover for the year by market is as follows:

2024
£

2023
£

UK

15,769,648

15,017,945

The amount of contract revenue recognised as Turnover in the year was £15,769,648 (2023 - £15,017,945).
The gross amount due from customers for contract work amounting to £10,956,955 (2023: £9,931,712) is disclosed in note 15 to the accounts as accrued income, and the gross amount due to customers for contract work amounting to £10,863,997 (2023: £8,448,783) is disclosed in note 17 to the accounts.

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2024
£

2023
£

Government grants

-

1,840

Miscellaneous other operating income

2,782

17,609

Management charges receivable

45,000

169,394

47,782

188,843

 

Murrill Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

5

Operating profit/(loss)

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

66,134

95,545

Operating lease expense - plant and machinery

624,410

701,573

6

Government grants

Grants received during last year were from a Construction Skills Training Grant.

The amount of grants recognised in the financial statements was £Nil (2023 - £1,840).

7

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

19,792

14,749

Other finance income

-

122

19,792

14,871

8

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

20,524

26,658

Interest on obligations under finance leases and hire purchase contracts

6,015

10,133

Interest expense on other finance liabilities

680

30

27,219

36,821

9

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

2,034,840

2,075,641

Social security costs

220,615

237,896

Other short-term employee benefits

46,027

39,407

Other post-employment benefit costs

37,092

39,167

Other employee expense

18,026

28,045

2,356,600

2,420,156

 

Murrill Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

9

Staff costs (continued)

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Production

19

21

Administration and support

17

18

Other departments

7

7

43

46

10

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

511,599

424,029

Within the £511,599 (2023 £424,029) of remuneration is £60,000 of redundancy payments (2023 £nil) and £31,794 of benefits in kind (2023 £26,708)

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

5

5

Company contributions to money purchase pension schemes for the Directors amounted to £5,791.

In respect of the highest paid director:

2024
 £

2023
 £

Remuneration

156,153

108,962

Company contributions to money purchase pension schemes

1,101

1,321

Included within the £156,153 (2023 £108,962) remuneration is £30,000 redundancy payment (2023 £nil) and £1,293 (2023 £1,844) benefits in kind.

11

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

15,000

15,000


 

 

Murrill Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

12

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

70,476

(36,046)

Deferred taxation

Arising from origination and reversal of timing differences

(13,843)

(6,267)

Tax expense/(receipt) in the income statement

56,633

(42,313)

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 25% (2023 - 19%).

The differences are reconciled below:

2024
£

2023
£

Profit/(loss) before tax

207,628

(257,059)

Corporation tax at standard rate

51,907

(48,841)

Tax increase/(decrease) from effect of capital allowances and depreciation

1,220

(17)

Effect of expense not deductible in determining taxable profit (tax loss)

3,506

7,046

Deferred tax expense relating to changes in tax rates or laws

-

14,567

Further item of tax decrease

-

(15,068)

Total tax charge/(credit)

56,633

(42,313)

Deferred tax

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Accelerated Capital Allowances

-

46,854

-

46,854

2023

Asset
£

Liability
£

Accelerated Capital Allowances

-

60,697

-

60,697

 

Murrill Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

13

Tangible assets

Land and buildings
£

Motor vehicles
 £

Plant and machinery
 £

Total
£

Cost or valuation

At 1 October 2023

47,376

552,545

25,335

625,256

Additions

-

-

5,881

5,881

At 30 September 2024

47,376

552,545

31,216

631,137

Depreciation

At 1 October 2023

32,735

320,478

14,615

367,828

Charge for the year

4,880

58,017

3,237

66,134

At 30 September 2024

37,615

378,495

17,852

433,962

Carrying amount

At 30 September 2024

9,761

174,050

13,364

197,175

At 30 September 2023

14,641

232,067

10,720

257,428

Included within the net book value of land and buildings above is £9,761 (2023 - £14,641) in respect of short leasehold land and buildings.
 

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

2024
£

2023
£

Motor vehicles

174,050

232,067

   

14

Stocks

2024
£

2023
£

Other inventories

675,054

408,286

 

Murrill Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

15

Debtors

Current

Note

2024
£

2023
£

Trade debtors

 

1,615,555

1,741,111

Amounts owed by related parties

24

630,735

766,677

Other debtors

 

15,660

134,533

Prepayments

 

40,264

199,405

Accrued income

 

10,956,955

9,931,712

Income tax asset

12

-

36,166

   

13,259,169

12,809,604

16

Cash and cash equivalents

2024
£

2023
£

Cash on hand

-

149

Cash at bank

876,541

301,972

Short-term deposits

1,514,630

696,915

2,391,171

999,036

17

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

20

245,072

264,206

Trade creditors

 

1,119,325

1,198,982

Social security and other taxes

 

993,170

780,610

Other payables

 

172,273

162,634

Accruals

 

492,556

760,353

Income tax liability

12

45,310

-

Gross amount due to customers for contract work

 

10,863,997

8,448,783

 

13,931,703

11,615,568

Due after one year

 

Loans and borrowings

20

296,231

541,303

 

Murrill Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

18

Provisions for liabilities

Deferred tax
£

Total
£

At 1 October 2023

60,697

60,697

Increase (decrease) in existing provisions

(13,844)

(13,844)

At 30 September 2024

46,853

46,853

19

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary of £1 each

100

100

100

100

       

20

Loans and borrowings

Non-current loans and borrowings

2024
£

2023
£

Bank borrowings

280,000

440,000

Hire purchase contracts

16,231

101,303

296,231

541,303

Current loans and borrowings

2024
£

2023
£

Bank borrowings

160,000

160,000

Hire purchase contracts

85,072

104,206

245,072

264,206

21

Dividends

2024

2023

£

£

Interim dividend of £1,600.00 (2023 - £1,200.00) per ordinary share

160,000

120,000

 

 
 

Murrill Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

22

Commitments

Other financial commitments

There was a commitment to pay rent on the property from which the company operates which expired in March 2024.
The total amount of other financial commitments not provided in the financial statements was £Nil (2023 - £115,000).

23

Financial guarantee contracts

Natwest Bank Plc holds 2 charges over all of the company's assets as follows: a charge over a Cash Deposit of £200,000 dated 21/03/2014 held for onward investment via Corporate Bonds as stipulated in a major customer contract; and a debenture provided by the company dated 19/05/1997 over all assets of the company without limit.

In addition, there are 3 cross guarantees between the company and it's parent, Murrill Holdings Limited, one dated 24/10/2015 limited to £318,000 in respect of a mortgage in the name of the parent company, a second dated 17/06/2020 limited to £390,000 providing NatWest bank access to the assets of Murrill Holdings Limited to support the trading business of the company and a third dated 02/06/2021 providing NatWest bank access to the assets of Murrill Holdings Limited to secure a fixed rate loan amounting to £800,000 granted to the company under the Coronavirus Business Interruption Loan Scheme, with the financial backing of the Secretary of State for Business, Energy and Industrial Strategy.

Debts due on the hire purchase agreements are secured against the assets to which they relate.

24

Related party transactions

Summary of transactions with parent

During the year a management charge of £45,000 (2023: £45,000) was received from Murrill Holdings Limited to compensate for time and costs spent in the management of this company. The assets owned by the parent company are hired to the company for a hire charge, amounting to £93,911 (2023: £84,505). In addition, the company rents a commercial yard from the holding company, for a consideration amounting to £40,000 (2023: 40,000). In the opinion of the directors the amounts charged are at a market value. Dividends of £160,000 (2023: £120,000) were paid to the parent company.

As at the year end the amount owed to the company by Murrill Holdings Limited is £622,856 (2023: £689,539).

 

Murrill Construction Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

24

Related party transactions (continued)

Summary of transactions with all entities with joint control or significant interest

Murrill Signs Limited, a fellow subsidiary of Murrill Holdings Limited.
During the year a management charge of £nil (2023: £124,394) was received from Murrill Signs Limited to compensate for time and costs spent in the management of this company. In addition, purchases amounting to £119,613 (2023: £108,915) were made from Murrill Signs Limited. In the opinion of the directors all transactions with related parties were at a market value for the services provided and products received.

Within accrued expenses £10,729 (2023: £2,902) is in respect of materials supplied by Murrill Signs Limited.

As at the year end the amount owed to the company by Murrill Signs Limited is £7,880 (2023: £77,138).

Loans to related parties

2024

Key management
£

Total
£

At start of period

43,920

43,920

Repaid

(43,920)

(43,920)

At end of period

-

-

2023

Key management
£

Total
£

At start of period

45,072

45,072

Repaid

(1,152)

(1,152)

At end of period

43,920

43,920

Terms of loans to related parties

The above directors loan was granted for the specified purpose of of purchasing shares in the parent company, Murrill Holdings Limited. Repayments made during the year are dividends paid from Murrill Holdings Limited plus the proceeds of the sale of the shares when Murrill Holdings purchased them from the director. No interest is charged on the loan due to its express purpose to purchase shares.
 

25

Parent and ultimate parent undertaking

The company's immediate parent is Murrill Holdings Limited, incorporated in England & Wales.

 The ultimate controlling party is Mr A E and Mrs R E Sargeant.