Company registration number SC398954 (Scotland)
DJ Laing Group Limited
Annual report and consolidated financial statements
for the year ended 31 May 2024
DJ Laing Group Limited
Company information
Directors
DJ Laing
DSW Laing
KA Nicoll
VM Hart
RJ McMillan
Secretary
DSW Laing
Company number
SC398954
Registered office
Laing House
Panmure Industrial Estate
Carnoustie
Angus
DD7 7NP
Auditor
Henderson Loggie
The Vision Building
20 Greenmarket
Dundee
DD1 4QB
Bankers
Royal Bank of Scotland Plc
97 High Street
Carnoustie
Angus
DD7 6YB
Solicitors
Lindsays
Seabraes House
18 Greenmarket
Dundee
DD1 4QB
DJ Laing Group Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 34
DJ Laing Group Limited
Strategic report
for the year ended 31 May 2024
- 1 -
The Directors present the strategic report for the year ended 31 May 2024.
Review of the business
The Directors are pleased to report a profit before tax of £848k (2023 - £268k).
The profits delivered in the year have strengthened the balance sheet with net assets increasing to £10.8m (2023 - £10.2m).
The construction sector continues to be resilient with demand remaining strong for the group.
The group has continued to overcome challenges in the year, particularly around the price of raw materials and new legislation. This in turn has affected costs and applied pressure to margins that has been combatted through effective financial and cost controls.
The results for 2024 reflect a very positive return for the business and one which the directors are pleased with.
Demand in private housing reduced in the past year, but reflected the broader market conditions, due to concerns with high interest and mortgage rates affecting buyer confidence.
The final house was sold at the 72 house development at Castle View in Dundee and work commenced on 14 houses at Phase 4 Malt Loan, Carnoustie in Summer 2023.
Work was ongoing at the new Business Park at Victoria Green, which is further investment and diversification for the group. The first units within the initial phase comprising of 16 Starter Units was completed in Spring 2024.
In line with recent years, the group has continued to reinvest in its fleet of plant and machinery to ensure the team has modern and efficient equipment to handle operations on site effectively with £523k (2023 - £207k) being spent in the year.
With a healthy civils workload and options on the development of land, the directors remain optimistic for the future whilst being fully aware of the external pressures the group is facing on margins, overheads and staffing. The directors continue to engage pro-actively with customers and wider stakeholders to help ensure the recent success can be maintained as the founding Company enters its 50th year in business.
The Directors would like to place on record their thanks to their team and partners for their contribution in the past year.
Principal risks and uncertainties
There are several risks to the business which can impact each group company to varying degrees.
Economic – The construction sector continues to be a difficult industry to operate in. Whilst there is still a demand for new private housing, there are still questions over the sustainability of this demand, particularly in view of high mortgage interest rates. There continues to be downward pressures on margins which the director’s monitor closely and only enter into contracts which will deliver a profit.
Political – There remains a disconnect between national and local government policy when it comes to the number of new houses to be delivered and how this will be delivered.
Competition – The sector remains very competitive and price sensitive. Control of increasing costs and provision of a first-class customer service is key to differentiate the group from their competitors.
Suppliers – The group continues to have a strong relationship with its suppliers, many of whom they have been dealing with for many years. The price of labour and materials continues to increase and have a bearing on the product and service.
Despite these risks, the Directors remain optimistic for the future and continue to ensure these risks are mitigated wherever possible.
DJ Laing Group Limited
Strategic report (continued)
for the year ended 31 May 2024
- 2 -
Development and performance
Key areas of strategic development and performance of the group include:
Turnover - the Directors monitor the results of each of its group companies, to ensure customer demand is being met. In addition, the group continues to focus on continuity of work within its homes business and availability of new development sites to ensure consistent turnover and profits are delivered.
Employees - further development of employees continues to be undertaken in relation to training and development requirements, to better equip them in delivering modern, effective and efficient operations and service support.
Assets - the group continues to review its operational assets on an ongoing basis. Capital investment in new assets undergo a business case assessment to ensure effective spend/value return and to align with the wider group strategy.
Health, Safety and Environmental - the Directors continue to ensure the group's compliance with health, safety and environmental regulations. Risk management measures, including consultation with insurers are implemented. The group continues to seek ways of ensuring that a safe and healthy working environment is progressively improved through regular health, safety and environmental review meetings.
KPI's
Key financial performance indicators include the monitoring of the management of profitability and working capital.
2024 2023 Measure
Gross profit margin 29.5% 26.2% Gross profit / turnover
Return on capital 7.8% 2.6% Profit before tax / net assets
Current ratio 3.6:1 2.9:1 Current assets : current liabilities
In addition to the financial KPIs above the Directors also review other non-financial metrics on a regular basis.
KA Nicoll
Director
25 February 2025
DJ Laing Group Limited
Directors' report
for the year ended 31 May 2024
- 3 -
The Directors present their annual report and financial statements for the year ended 31 May 2024.
Principal activities
The principal activities of the group continued to be that of a civil engineering contractor, the construction and sale of housing, and waste management.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The Directors do not recommend payment of a further dividend.
Directors
The Directors who held office during the year and up to the date of signature of the financial statements were as follows:
DJ Laing
DSW Laing
KA Nicoll
VM Hart
RJ McMillan
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 auditor of the company 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 auditor of the company is aware of that information.
Strategic report
Included within the strategic report is an indication of the principal risks and uncertainties including the risks associated with the economic conditions, political risks, competition, and supplier risks.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
KA Nicoll
Director
25 February 2025
DJ Laing Group Limited
Directors' responsibilities statement
for the year ended 31 May 2024
- 4 -
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 group and company, and of the profit or loss of the group 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; and
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
DJ Laing Group Limited
Independent auditor's report
to the members of DJ Laing Group Limited
- 5 -
Opinion
We have audited the financial statements of DJ Laing Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 May 2024 and of the group's 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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
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.
DJ Laing Group Limited
Independent auditor's report (continued)
to the members of DJ Laing Group Limited
- 6 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the Directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
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.
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below.
As part of our planning process:
We enquired of management the systems and controls the group has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. Management informed us that there were no instances of known, suspected or alleged fraud;
We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: Health and Safety, Building Regulations, SEPA regulations, employment law and compliance with the UK Companies Act;
We considered the incentives and opportunities that exist in the group, including the extent of management bias, which present a potential for irregularities and fraud to be perpetrated, and tailored our risk assessment accordingly; and
DJ Laing Group Limited
Independent auditor's report (continued)
to the members of DJ Laing Group Limited
- 7 -
Using our knowledge of the group, together with the discussions held with management at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
Enquiry with management about any known or suspected instances of non-compliance with laws and regulations and fraud;
Reviewing meeting minutes of the board of directors;
Reviewing external consultant's inspection reports;
Reviewing quarterly returns to SEPA;
Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to the carrying value of tangible fixed assets, investment property, stock and work in progress, and provisions in relation to stock and bad debts, and the application of accruals; and
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
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.
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.
Blair Davidson
Senior Statutory Auditor
For and on behalf of Henderson Loggie LLP
25 February 2025
Chartered Accountants
Statutory Auditor
The Vision Building
20 Greenmarket
Dundee
DD1 4QB
DJ Laing Group Limited
Group statement of comprehensive income
for the year ended 31 May 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
9,960,512
7,363,812
Cost of sales
(7,024,931)
(5,433,998)
Gross profit
2,935,581
1,929,814
Administrative expenses
(2,260,311)
(1,770,320)
Other operating income
76,671
74,724
Operating profit
4
751,941
234,218
Interest receivable and similar income
8
72,114
36,230
Interest payable and similar expenses
9
(6,206)
(12,552)
Fair value gains on investment properties
10
30,000
10,000
Profit before taxation
847,849
267,896
Tax on profit
11
(228,226)
2,908
Profit for the financial year
26
619,623
270,804
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
DJ Laing Group Limited
Group balance sheet
as at 31 May 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,536,510
1,586,684
Investment property
13
835,000
805,000
2,371,510
2,391,684
Current assets
Stocks
16
6,638,300
5,983,511
Debtors
17
793,826
625,883
Cash at bank and in hand
4,705,792
5,805,608
12,137,918
12,415,002
Creditors: amounts falling due within one year
18
(3,368,809)
(4,308,333)
Net current assets
8,769,109
8,106,669
Total assets less current liabilities
11,140,619
10,498,353
Creditors: amounts falling due after more than one year
19
-
(8,625)
Provisions for liabilities
Deferred tax liability
21
(306,257)
(274,989)
(306,257)
(274,989)
Net assets
10,834,362
10,214,739
Capital and reserves
Called up share capital
24
30,000
30,000
Revaluation reserve
25
50,000
20,000
Profit and loss reserves
26
10,754,362
10,164,739
Total equity
10,834,362
10,214,739
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 25 February 2025 and are signed on its behalf by:
25 February 2025
KA Nicoll
Director
Company registration number SC398954 (Scotland)
DJ Laing Group Limited
Company balance sheet
as at 31 May 2024
31 May 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
14
30,004
30,002
Current assets
-
-
Creditors: amounts falling due within one year
18
(4)
(2)
Net current liabilities
(4)
(2)
Net assets
30,000
30,000
Capital and reserves
Called up share capital
24
30,000
30,000
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2023 - £0 profit).
The financial statements were approved by the board of directors and authorised for issue on 25 February 2025 and are signed on its behalf by:
25 February 2025
KA Nicoll
Director
Company registration number SC398954 (Scotland)
DJ Laing Group Limited
Group statement of changes in equity
for the year ended 31 May 2024
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 June 2022
30,000
9,913,935
9,943,935
Year ended 31 May 2023:
Profit and total comprehensive income
-
-
270,804
270,804
Transfers
-
20,000
(20,000)
-
Balance at 31 May 2023
30,000
20,000
10,164,739
10,214,739
Year ended 31 May 2024:
Profit and total comprehensive income
-
-
619,623
619,623
Transfers
-
30,000
(30,000)
-
Balance at 31 May 2024
30,000
50,000
10,754,362
10,834,362
DJ Laing Group Limited
Company statement of changes in equity
for the year ended 31 May 2024
- 12 -
Share capital
£
Balance at 1 June 2022
30,000
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
Balance at 31 May 2023
30,000
Year ended 31 May 2024:
Profit and total comprehensive income
-
Balance at 31 May 2024
30,000
DJ Laing Group Limited
Group statement of cash flows
for the year ended 31 May 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
32
(644,179)
(724,673)
Interest paid
(6,206)
(12,552)
Income taxes paid
(32,097)
(70,390)
Net cash outflow from operating activities
(682,482)
(807,615)
Investing activities
Purchase of tangible fixed assets
(522,741)
(103,416)
Proceeds from disposal of tangible fixed assets
169,755
115,867
Interest received
72,114
36,230
Net cash (used in)/generated from investing activities
(280,872)
48,681
Financing activities
Payment of finance leases obligations
(136,462)
(344,926)
Net cash used in financing activities
(136,462)
(344,926)
Net decrease in cash and cash equivalents
(1,099,816)
(1,103,860)
Cash and cash equivalents at beginning of year
5,805,608
6,909,468
Cash and cash equivalents at end of year
4,705,792
5,805,608
DJ Laing Group Limited
Company statement of cash flows
for the year ended 31 May 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
33
Net cash outflow from operating activities
-
-
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
DJ Laing Group Limited
Notes to the group financial statements
for the year ended 31 May 2024
- 15 -
1
Accounting policies
Company information
DJ Laing Group Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is Laing House, Panmure Industrial Estate, Carnoustie, Angus, DD7 7NP.
The group consists of DJ Laing Group Limited and all of its subsidiaries.
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 investment properties at fair value. The principal accounting policies adopted are set out below.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company DJ Laing Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 May 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
DJ Laing Group Limited
Notes to the group financial statements (continued)
for the year ended 31 May 2024
1
Accounting policies (continued)
- 16 -
1.4
Going concern
The financial statements have been prepared on a going concern basis. The directors have considered relevant information, including the financial projections, forecast future cash flows and the impact of subsequent events in making their assessment. The directors have performed a robust analysis of forecast future cash flows taking into account the potential impact on the business of possible future scenarios. This analysis also considers the effectiveness of available measures to assist in mitigating the impact.
Based on these assessments and having regard to the resources available to the group, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.
1.5
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.
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 house sales is recognised by reference to the date of sale which is taken as the date a house is substantially complete following signing of missives. Revenue from long-term contracts is recognised by reference to the stage of completion. Further details on the accounting for these house sales and long-term contracts is contained in note 1.11 below.
1.6
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 freehold
2.5% - 4% straight line (0% on land)
Plant and machinery
12.5% - 25% straight line and reducing balance
Fixtures, fittings & equipment
12.5% - 20% straight line and reducing balance
Computer equipment
25% straight line
Motor vehicles
15% - 25% straight line and reducing balance
Specialised asset
2.5% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.7
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, 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.
DJ Laing Group Limited
Notes to the group financial statements (continued)
for the year ended 31 May 2024
1
Accounting policies (continued)
- 17 -
1.8
Fixed asset investments
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.9
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
1.10
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.
DJ Laing Group Limited
Notes to the group financial statements (continued)
for the year ended 31 May 2024
1
Accounting policies (continued)
- 18 -
1.11
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 costs are recognised as expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.
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.
1.12
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.13
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, 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.
DJ Laing Group Limited
Notes to the group financial statements (continued)
for the year ended 31 May 2024
1
Accounting policies (continued)
- 19 -
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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.14
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.15
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
DJ Laing Group Limited
Notes to the group financial statements (continued)
for the year ended 31 May 2024
1
Accounting policies (continued)
- 20 -
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 if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.16
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.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.19
Government grants
Grants in respect of capital expenditure are credited to the profit and loss account over the estimated useful life of the assets to which they relate. Grants received in respect of revenue expenditure are matched against related costs in the period in which these costs occur.
DJ Laing Group Limited
Notes to the group financial statements (continued)
for the year ended 31 May 2024
- 21 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Useful lives of tangible assets
As part of the year end process the management have made an assessment as to the fair value of investments properties. Whilst no formal valuations have been carried out in the year, the valuations are based on the directors' knowledge of the local markets, their known rental yields and a review of the sales price of similar properties. Although there is some degree of estimation involved in arriving at the fair values, management are content that any potential differences are immaterial.
Investment property valuations
As part of the year end process the management have made an assessment as to the fair value of investments properties. The valuations are based on the directors' knowledge of the local markets, their known rental yields and a review of the sales price of similar properties. Although there is some degree of estimation involved in arriving at the fair values, management are content that any potential differences are immaterial.
Work in progress and development land
As part of the year end process management are required to assess the ongoing performance of construction contracts. This assessment results in the recognition of profits, losses and provisions against ongoing recovery depending on how that contract is performing at that given time and its degree of completion. These judgements are made using managements extensive experience as well as a detailed working knowledge of each project and in conjunction with advice from the company's own team of surveyors and experts.
Trade debtor recovery
Credit control is an important function within the group which requires management to assess on an ongoing basis the recoverability of amounts due from trade debtors. Where recovery is in doubt management will adequately provide against this debt and will arrive at such conclusions based on internal and external knowledge of that customers performance and "ability to pay". Management adopt a prudent approach to credit control.
Accruals
Management estimate requirements for accruals using post year end information and information available from detailed budgets. This identifies costs and income that are expected to be incurred or received for goods/services provided by and to other parties. Accruals are only released when there is a reasonable expectation that these costs will not be invoiced in the future.
DJ Laing Group Limited
Notes to the group financial statements (continued)
for the year ended 31 May 2024
- 22 -
3
Turnover and other revenue
An analysis of the group's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Civil engineering
8,112,951
4,108,174
House sales
1,558,627
3,086,437
Waste management
151,452
5,333
Miscellaneous
137,482
163,868
9,960,512
7,363,812
2024
2023
£
£
Other revenue
Interest income
72,114
36,230
Grants received
8,617
9,400
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(8,617)
(9,400)
Depreciation of owned tangible fixed assets
395,003
231,818
Depreciation of tangible fixed assets held under finance leases
14,375
233,572
Profit on disposal of tangible fixed assets
(56,218)
(103,892)
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,350
5,100
Audit of the financial statements of the company's subsidiaries
26,700
24,900
32,050
30,000
DJ Laing Group Limited
Notes to the group financial statements (continued)
for the year ended 31 May 2024
- 23 -
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
2024
2023
Number
Number
Operations
40
43
Management and administration
21
21
Total
61
64
Their aggregate remuneration comprised:
Group
2024
2023
£
£
Wages and salaries
2,697,994
2,403,434
Social security costs
276,352
250,710
Pension costs
69,606
90,359
3,043,952
2,744,503
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
558,408
330,814
Company pension contributions to defined contribution schemes
7,870
7,316
566,278
338,130
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
218,047
114,026
Company pension contributions to defined contribution schemes
-
7,316
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
DJ Laing Group Limited
Notes to the group financial statements (continued)
for the year ended 31 May 2024
- 24 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
72,114
36,230
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
72,114
36,230
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
6,206
12,552
10
Fair value gains on investment properties
2024
2023
£
£
Fair value gains
Changes in the fair value of investment properties
30,000
10,000
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
195,579
31,034
Adjustments in respect of prior periods
1,379
(174)
Total current tax
196,958
30,860
Deferred tax
Origination and reversal of timing differences
8,547
(7,960)
Changes in tax rates
24,444
(25,808)
Adjustment in respect of prior periods
(1,723)
Total deferred tax
31,268
(33,768)
Total tax charge/(credit)
228,226
(2,908)
At the Spring Budget 2021, the government announced that the corporation tax main rate for profits would increase to 25%. Following Royal Assent this was enacted from 1 April 2023 and as a result the corporation tax rate effective in the period has been set at 25% (2023 - 20%).
DJ Laing Group Limited
Notes to the group financial statements (continued)
for the year ended 31 May 2024
11
Taxation (continued)
- 25 -
The actual charge/(credit) 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
847,849
267,896
Expected tax charge based on the standard rate of corporation tax in the UK of 25% (2023: 20%)
211,962
53,579
Tax effect of expenses that are not deductible in determining taxable profit
8,099
7,138
Adjustments in respect of prior years
1,379
(174)
Double tax relief
(16,933)
(34,192)
Depreciation on assets not qualifying for tax allowances
10,652
8,577
Effect of revaluations of investments
(7,500)
(2,000)
Deferred tax adjustments in respect of prior years
(1,723)
Difference between corporation and deferred tax rates
(729)
Change in deferred tax rate
24,444
(25,808)
Government grant release
(2,154)
(1,880)
Super-deduction
(7,419)
Taxation charge/(credit)
228,226
(2,908)
DJ Laing Group Limited
Notes to the group financial statements (continued)
for the year ended 31 May 2024
- 26 -
12
Tangible fixed assets
Group
Land and buildings freehold
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Specialised asset
Total
£
£
£
£
£
£
£
Cost
At 1 June 2023
1,334,292
3,756,220
95,788
41,048
505,640
554,657
6,287,645
Additions
432,741
90,000
522,741
Disposals
(1,432,987)
(73,393)
(1,506,380)
Transfers
(50,000)
(50,000)
At 31 May 2024
1,284,292
2,755,974
95,788
41,048
522,247
554,657
5,254,006
Depreciation and impairment
At 1 June 2023
972,944
3,109,863
74,797
30,905
346,058
166,394
4,700,961
Depreciation charged in the year
42,606
225,966
7,601
6,987
112,352
13,866
409,378
Eliminated in respect of disposals
(1,328,847)
(63,996)
(1,392,843)
At 31 May 2024
1,015,550
2,006,982
82,398
37,892
394,414
180,260
3,717,496
Carrying amount
At 31 May 2024
268,742
748,992
13,390
3,156
127,833
374,397
1,536,510
At 31 May 2023
361,348
646,357
20,991
10,143
159,582
388,263
1,586,684
The company had no tangible fixed assets at 31 May 2024 or 31 May 2023.
DJ Laing Group Limited
Notes to the group financial statements (continued)
for the year ended 31 May 2024
12
Tangible fixed assets (continued)
- 27 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and machinery
87,448
431,013
Motor vehicles
98,082
87,448
529,095
-
-
Freehold land and buildings includes non-depreciable land amounting to £58,958 (2023 - £108,958). Land amounting to £50,000 (2023 - £Nil) was transferred into work in progress during the year.
13
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 June 2023 and 31 May 2024
805,000
-
Net gains or losses through fair value adjustments
30,000
-
At 31 May 2024
835,000
-
Investment property comprises a range of commercial and residential properties which are available to rent. Investment properties were initially recorded at cost and are subsequently reviewed at each financial year end to ensure the carrying value is appropriate. Based on their experience, rental yields and prevailing market conditions, it is the view of the directors that the carrying value above, following the revaluation adjustment, represents the open market value at 31 May 2024.
In particular, one of the properties in the year was subject to a valuation carried out in October 2024 by Graham & Sibbald Chartered Surveyors, 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 was deemed to be indicative of the value as at the year end. This valuation resulted in the revaluation gain as above.
DJ Laing Group Limited
Notes to the group financial statements (continued)
for the year ended 31 May 2024
- 28 -
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
30,004
30,002
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 June 2023
30,002
Additions
2
At 31 May 2024
30,004
Carrying amount
At 31 May 2024
30,004
At 31 May 2023
30,002
15
Subsidiaries
Details of the company's subsidiaries at 31 May 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
DJ Laing (Contracts) Limited
Scotland
Ordinary
100
DJ Laing Homes Limited
Scotland
Ordinary
100
DJ Laing Recycling Solutions Limited
Scotland
Ordinary
100
DJ Laing Estates Limited
Scotland
Ordinary
100
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
2,602,098
3,640,582
-
-
Work in progress
4,010,492
2,315,854
-
-
Finished goods and goods for resale
25,710
27,075
6,638,300
5,983,511
-
-
DJ Laing Group Limited
Notes to the group financial statements (continued)
for the year ended 31 May 2024
- 29 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
192,615
233,364
Gross amounts owed by contract customers
395,874
285,912
Other debtors
166,234
67,931
Prepayments and accrued income
39,103
38,676
793,826
625,883
-
-
Included within debtors is an amount of £36,000 (2023 - £36,000) relating to shared equity agreements on house sales entered into. The terms of these agreements are such that these debts can effectively be repaid at any point within a 10 year period, or later if subject to a hardship clause, which consequently makes the quantification of any amounts due in more than one year difficult.
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
20
8,625
136,462
Trade creditors
636,598
709,783
Amounts owed to group undertakings
4
2
Corporation tax payable
195,579
30,718
Other taxation and social security
58,151
44,612
-
-
Deferred income
22
1,297,764
Other creditors
382,800
392,979
Accruals
2,087,056
1,696,015
3,368,809
4,308,333
4
2
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
20
8,625
DJ Laing Group Limited
Notes to the group financial statements (continued)
for the year ended 31 May 2024
- 30 -
20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
8,625
136,462
In two to five years
8,625
8,625
145,087
-
-
Finance lease obligations represent rentals payable by the company for certain items of plant and machinery. The liability outstanding at the year end relates to one item of machinery and there is no restrictions in place over the use of the asset. The lease is on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Liabilities from finance leases are secured over the assets concerned.
21
Deferred taxation
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
315,998
279,367
Retirement benefit obligations
(8,491)
(782)
Provisions
(1,250)
(3,596)
306,257
274,989
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 June 2023
274,989
-
Charge to profit or loss
31,268
-
Liability at 31 May 2024
306,257
-
DJ Laing Group Limited
Notes to the group financial statements (continued)
for the year ended 31 May 2024
- 31 -
22
Deferred income
Group
Company
2024
2023
2024
2023
£
£
£
£
Arising from government grants
-
8,617
-
-
Other deferred income
-
1,289,147
-
-
-
1,297,764
-
-
A government grant of £235,000 was received in 2000 from SET equal to 79% of the development costs of the company’s premises at Panmure Industrial Estate. This was released in line with depreciation at a rate of 4% per annum, and the balance was written down to £nil during 2024.
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
69,606
90,359
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
30,000
30,000
30,000
30,000
Each ordinary share carries one vote and is entitled to participate pari passu with other ordinary shares in any dividend or capital distribution.
25
Revaluation reserve
The revaluation reserve represents the revaluation of investment properties less any associated deferred tax charge and are not distributable to shareholders.
26
Profit and loss reserves
Profit and loss reserves include all current and prior period retained profit and losses.
DJ Laing Group Limited
Notes to the group financial statements (continued)
for the year ended 31 May 2024
- 32 -
27
Financial commitments, guarantees and contingent liabilities
The company has given an unlimited inter-company cross guarantee to The Royal Bank of Scotland plc which incorporates a right of set-off between DJ Laing Group Limited, DJ Laing (Contracts) Limited, DJ Laing Homes Limited and DJ Laing Recycling Solutions Limited.
At 31 May 2024 the guarantee amounted to £Nil (2023 - £Nil).
The subsidiary company DJ Laing Homes Limited also has securities over development land at Pitskelly Farm and Greenlawhill, Barry. Both of these securities remain outstanding at the year end.
28
Operating lease commitments
Lessor
At the reporting end date the group had contracted with tenants for the following minimum lease payments:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
87,593
95,232
-
-
Between two and five years
145,600
237,860
-
-
233,193
333,092
-
-
29
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
857,548
601,212
30
Directors' transactions
Interest free loans have been granted by the directors to the group as follows:
Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Director 2 loan account
-
224,166
(6,780)
217,386
Director 1 loan account
-
159,770
(3,301)
156,469
383,936
(10,081)
373,855
The above balances are shown within other creditors due within one year.
DJ Laing Group Limited
Notes to the group financial statements (continued)
for the year ended 31 May 2024
- 33 -
31
Controlling party
The company is controlled by two directors, DJ Laing and DSW Laing, who each have an equal shareholding in the company.
32
Cash absorbed by group operations
2024
2023
£
£
Profit for the year after tax
619,623
270,804
Adjustments for:
Taxation charged/(credited)
228,226
(2,908)
Finance costs
6,206
12,552
Investment income
(72,114)
(36,230)
Gain on disposal of tangible fixed assets
(56,218)
(103,892)
Fair value gain on investment properties
(30,000)
(10,000)
Depreciation and impairment of tangible fixed assets
409,378
465,390
Movements in working capital:
Increase in stocks
(604,789)
(770,997)
(Increase)/decrease in debtors
(167,943)
86,789
Increase/(decrease) in creditors
321,216
(657,781)
(Decrease)/increase in deferred income
(1,297,764)
21,600
Cash absorbed by operations
(644,179)
(724,673)
33
Cash absorbed by operations - company
2024
2023
£
£
Profit for the year after tax
-
-
Cash absorbed by operations
-
-
34
Analysis of changes in net funds - group
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
5,805,608
(1,099,816)
4,705,792
Obligations under finance leases
(145,087)
136,462
(8,625)
5,660,521
(963,354)
4,697,167
DJ Laing Group Limited
Notes to the group financial statements (continued)
for the year ended 31 May 2024
- 34 -
35
Analysis of changes in net funds - company
1 June 2023
31 May 2024
£
£
Cash at bank and in hand
-
-
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