REGISTERED NUMBER: |
MACLAY (CIVIL ENGINEERING) LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 27 FEBRUARY 2024 |
REGISTERED NUMBER: |
MACLAY (CIVIL ENGINEERING) LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 27 FEBRUARY 2024 |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 27 FEBRUARY 2024 |
Page |
Strategic Report | 1 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Profit and Loss Account | 8 |
Other Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 16 |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 27 FEBRUARY 2024 |
The directors present their strategic report for the year ended 27 February 2024. |
REVIEW OF BUSINESS |
Our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole. They are turnover, gross margin, operating profit and net assets. |
Turnover increased from £9.96 million last year to £13.05 million in the current period. Gross margin has increased from 1.8% last year to 9.5% this period. The company has generated an operating profit this year of £452k in comparison to an operating loss last year of £567k. Net assets have increased from £2.92 million as at 27 February 2023 to £3.27 million as at 27 February 2024. |
The significant improvement in results is due mainly to the following matters. The prior year accounts cover the period of the first year of the war in Ukraine. Prior to the start of the conflict, several large contracts had been priced based on material costs at that time. However, due to the conflict, material costs (for all aggregate products and in particular, bituminous materials) increased by approximately 30%. As we were contractually obliged to deliver the works at our tendered price, there was no scope for passing these increased costs on to our customers and consequently, these contracts were loss-making. The price of petrol and fuel also increased significantly last year and as a result of the cost of living crisis, this resulted in the need to implement wage increases of approximately 20% across all areas of the business in order to retain the workforce. These factors were considered in the current year when pricing contracts. |
There are still many challenges in the current economic climate but we are working with our customers to ensure any price fluctuations are factored into future tenders and cost benefits are obtained where possible. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The main risks and uncertainties facing the company are as follows: |
- The impact of Brexit and how this will affect local authority budgets and the construction industry in general. The impact of Brexit continues to be monitored closely and any change required to the business model will be implemented expeditiously. The company strategy will be to continue concentrating on local authority clients, with further focus on increasing competitiveness and margins, promoting greater business efficiencies and a drive to reduce overheads. |
- The impact of conflicts and inflation on material and wage costs. The company's strategy is to control margins and staff costs through careful planning and budgeting and continuing ongoing review to ensure efficiency. We will also monitor the cost of materials to ensure that any increases are built into our tender documents. |
We continue to reinvest to strengthen the company and have sufficient resources in place to cope with any normal fluctuations in activity. |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 27 FEBRUARY 2024 |
FUTURE DEVELOPMENTS |
The company continues to focus on its core activities in the construction industry. The company recognises that the current economic situation is making it a very challenging and competitive time in the sector but the company has a solid client base and a strong and committed workforce. Margins and staff costs are controlled by careful planning and budgeting and continuing ongoing review to ensure efficiency. Our overheads are held to a minimum to maximise the value offering to our customers and to maintain our strong customer base. The directors will continue to monitor costs and performance, seeking further efficiency gains wherever possible. |
FINANCIAL INSTRUMENTS |
- The company has adopted the disclosure and presentational requirements of FRS 102. When a financial asset or liability is disclosed initially, it is measured at its fair value plus or minus transaction costs. The company regularly monitors its exposure to risks including pricing, credit, liquidity and cash flow. |
- The company is satisfied with the level of cash flow being maintained after taking into consideration the timing aspect of payments to trade creditors and business expenses. |
- The company's deposits are all in place with major UK financial institutions which are regulated by the Financial Conduct Authority. |
- All business is conducted in £ Sterling. |
ON BEHALF OF THE BOARD: |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 27 FEBRUARY 2024 |
The directors present their report with the financial statements of the company for the year ended 27 February 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of road maintenance and civil engineering. |
DIVIDENDS |
No dividends will be distributed for the year ended 27 February 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 28 February 2023 to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen in accordance with Section 414C(11) Companies Act 2006 to set out in the company's Strategic Report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the Directors' Report. It has done so in respect of financial instruments and future developments. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable laws 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 the affairs of the company and of the profit and loss of the company for that period. In preparing these financial statements, the directors are required to: |
- select suitable accounting policies and then apply them consistently; |
- make judgements and accounting estimates that are reasonable and prudent; |
- state whether applicable accounting standards have been followed subject to any material departures disclosed and explained in the financial statements; |
- 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. |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 27 FEBRUARY 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MACLAY (CIVIL ENGINEERING) LIMITED |
Opinion |
We have audited the financial statements of Maclay (Civil Engineering) Limited (the 'company') for the year ended 27 February 2024 which comprise the Profit and Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 27 February 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MACLAY (CIVIL ENGINEERING) LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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 three, 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 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. |
Auditors' 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 a Report of the Auditors 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- | the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- | we identified the laws and regulations applicable to the company through discussions with directors and other management and from our knowledge of the civil engineering sector; |
- | we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, FRS102 and taxation legislation. We also considered those laws and regulations having an indirect but nonetheless significant impact, including GDPR, anti-bribery, employment, environmental and health and safety legislation; |
- | we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- | identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- | making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MACLAY (CIVIL ENGINEERING) LIMITED |
Auditors' responsibilities for the audit of the financial statements - continued |
To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
- | assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 1 were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transactions and reviewed transactions processed outwith normal business hours. |
To address the risks associated with income recognition we: |
- | reviewed post period end valuations and sales invoices in conjunction with detailed contract activity reports for evidence of completeness of income; and |
- | reviewed invoices around the period end to obtain cut-off assurance. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditor |
Chartered Accountants |
Caledonia House |
89 Seaward Street |
Glasgow |
G41 1HJ |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
PROFIT AND LOSS ACCOUNT |
FOR THE YEAR ENDED 27 FEBRUARY 2024 |
PERIOD |
1/3/22 |
YEAR ENDED | TO |
27/2/24 | 27/2/23 |
Notes | £ | £ |
TURNOVER | 2 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
OPERATING PROFIT/(LOSS) | 4 | ( |
) |
Interest receivable and similar income |
452,094 | (566,353 | ) |
Interest payable and similar expenses | 5 | ( |
) | ( |
) |
PROFIT/(LOSS) BEFORE TAXATION | ( |
) |
Tax on profit/(loss) | 6 | ( |
) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 27 FEBRUARY 2024 |
PERIOD |
1/3/22 |
YEAR ENDED | TO |
27/2/24 | 27/2/23 |
Notes | £ | £ |
PROFIT/(LOSS) FOR THE YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME |
Revaluation of heritable property |
Income tax relating to other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
BALANCE SHEET |
27 FEBRUARY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 7 |
CURRENT ASSETS |
Stocks | 8 |
Debtors | 9 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
11 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 14 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 15 |
Revaluation reserve | 16 |
Retained earnings | 16 |
SHAREHOLDERS' FUNDS |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
BALANCE SHEET - continued |
27 FEBRUARY 2024 |
The financial statements were approved by the Board of Directors and authorised for issue on |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 27 FEBRUARY 2024 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 March 2022 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 27 February 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 27 February 2024 |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 27 FEBRUARY 2024 |
PERIOD |
1/3/22 |
YEAR ENDED | TO |
27/2/24 | 27/2/23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Capital repayments in period | ( |
) | ( |
) |
Amounts introduced by directors | 250,000 | 250,000 |
Amount withdrawn by directors | (290,903 | ) | (18,832 | ) |
Net cash from financing activities | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
631,935 |
Cash and cash equivalents at end of year | 2 | 78,953 | 139,461 |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 27 FEBRUARY 2024 |
1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
PERIOD |
1/3/22 |
YEAR ENDED | TO |
27/2/24 | 27/2/23 |
£ | £ |
Profit/(loss) before taxation | ( |
) |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs | 13,356 | 7,970 |
Finance income | (106 | ) | (592 | ) |
899,067 | (198,830 | ) |
Decrease/(increase) in stocks | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 27 February 2024 |
27/2/24 | 28/2/23 |
£ | £ |
Cash and cash equivalents | 78,953 | 139,461 |
Period ended 27 February 2023 |
27/2/23 | 1/3/22 |
£ | £ |
Cash and cash equivalents | 139,461 | 631,935 |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 27 FEBRUARY 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 28/2/23 | Cash flow | changes | At 27/2/24 |
£ | £ | £ | £ |
Net cash |
Cash at bank | 139,461 | (60,508 | ) | 78,953 |
139,461 | ( |
) | 78,953 |
Debt |
Finance leases | (226,424 | ) | 231,637 | (503,044 | ) | (497,831 | ) |
(226,424 | ) | 231,637 | (503,044 | ) | (497,831 | ) |
Total | (86,963 | ) | 171,129 | (503,044 | ) | (418,878 | ) |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 27 FEBRUARY 2024 |
1. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Maclay (Civil Engineering) Limited is a private company, limited by shares, registered in Scotland. The company's registered office address is Stirling Road, Airdrie, Lanarkshire, ML6 7JA. |
The financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. There were no material departures from that standard. |
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. |
The financial statements are presented in Sterling (£). |
Going concern |
The financial statements have been prepared on a going concern basis. After reviewing the company's financial position and forecasts, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements. Should the company encounter short-term cash flow demands, the directors confirm that sums are advanced by directors' loans. |
Critical accounting judgements |
The company considers on an annual basis the judgements that are made by management when applying its significant accounting policies that would have the most significant effect on amounts that are recognised in the financial statements. In preparing these financial statements, the directors have made the following judgements:- |
- Determination of the stage of completion of contracts at the balance sheet date and the expected outcome of each of these contracts to assess either the appropriate level of profit to be recognised or if a contract is assessed as being loss-making, the amount of the loss to be provided for. In making its judgement, management consider the agreed contract valuations of work done and forecasts assessing the anticipated contract outcome. |
- Determination of whether leases entered into by the company as a lessee are operating leases or hire purchase agreements. These decisions depend on the assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis. |
Key sources of estimation uncertainty |
In the application of the company's accounting policies, the directors are required to make estimates and assumptions about the carrying amounts 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 if the revision |
affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The directors consider the key sources of estimation uncertainty to be as follows:- |
- Tangible fixed assets (note 7) are depreciated over their estimated useful lives. The actual lives of the assets are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as usage and maintenance programmes are taken into account. The directors assessed that no changes were required to the estimated useful lives of the tangible fixed assets and therefore, determined that the stated depreciation policies applied in prior years remain appropriate. |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 27 FEBRUARY 2024 |
Key sources of estimation uncertainty (continued) |
- At the balance sheet date, the directors consider whether there are any indicators that the balances relating to amounts recoverable on contracts of £1.75 million (2023: £1.64 million) and retentions receivable of £618k (2023: £597k) (note 9) will not be recoverable, to ensure an adequate provision is made for any potentially irrecoverable amounts. Based on their knowledge of the customers concerned, the directors consider that no provision is required against these balances. |
Turnover |
Turnover comprises the value of goods and services supplied by the company, net of value added tax. Turnover on contracts is recognised according to the stage reached in the contract by reference to the value of work done. Where turnover on a contract exceeds the amounts invoiced, the difference is included in debtors as amounts recoverable on contracts. |
Contract activity |
Profit on contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the period-end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contracts in the period in which they are first foreseen. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter. |
Heritable property - 2% on cost or valuation |
Plant and machinery - 25% on reducing balance |
Motor vehicles - 25% on reducing balance |
Computer equipment - 33% on cost |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses with the exception of heritable property. |
The heritable property has been included at fair value less any subsequent accumulated depreciation and subsequent impairment losses. Revaluations will be made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period. |
If an asset's carrying amount is increased as a result of a revaluation, the increase shall be recognised in other comprehensive income and accumulated in equity. However, the increase shall be recognised in profit and loss to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit and loss. |
The decrease of an asset's carrying amount as a result of a revaluation shall be recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. If the revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss. |
Tangible fixed assets are only capitalised if their value is above £1,000. |
Impairment of tangible fixed assets |
At each reporting date non-financial assets not carried at fair value, like plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount which is the higher of value in use and the fair value less cost to sell, is estimated and compared with the carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit and loss. |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 27 FEBRUARY 2024 |
1. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are valued at the lower of cost and estimated selling price less costs to sell. |
Taxation |
Taxation represents the sum of tax currently payable and deferred tax. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. |
The charge for taxation for the period takes into account taxation deferred as a result of timing differences between the treatment of certain items for taxation and accounting purposes. In general, deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. However, deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted. Deferred taxation is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in which the timing differences reverse, based on tax rates and laws enacted or substantively enacted by the balance sheet date. |
With the exception of changes arising on the initial recognition of a business combination, the tax expense is |
presented either in profit or loss, other comprehensive income or statement of changes in equity depending on the transaction that resulted in the tax expense. |
Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme on behalf of the employees. Contributions payable to the company's pension scheme are charged to the profit and loss account in the period to which they relate. The assets of the scheme are held separately from those of the company in administered funds. |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 27 FEBRUARY 2024 |
1. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from financial institutions and loans to and from related parties. |
Debt instruments like loans and other accounts receivable and payable are initially measured at present value of future payments and subsequently, amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and trade creditors, are measured initially, and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received. |
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for evidence of impairment and if found, an impairment loss is recognised in the profit and loss account. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities. |
Provisions |
Provisions are recognised where the company has a legal or constructive obligation at the reporting date resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Provisions are recognised at the best estimate of the amount required to settle the obligation at the reporting date. |
Employee benefits |
Short term employee benefits are recognised as an expense in the period in which they are incurred. |
2. | TURNOVER |
The turnover and profit (2023 - loss) before taxation are attributable to the one principal activity of the company. |
All turnover arose within the United Kingdom. |
3. | EMPLOYEES AND DIRECTORS |
PERIOD |
1/3/22 |
YEAR ENDED | TO |
27/2/24 | 27/2/23 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 27 FEBRUARY 2024 |
3. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
PERIOD |
1/3/22 |
YEAR ENDED | TO |
27/2/24 | 27/2/23 |
Operatives | 89 | 74 |
Administration and management | 11 | 10 |
The key management personnel of the company comprises of the directors. |
PERIOD |
1/3/22 |
YEAR ENDED | TO |
27/2/24 | 27/2/23 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
PERIOD |
1/3/22 |
YEAR ENDED | TO |
27/2/24 | 27/2/23 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
4. | OPERATING PROFIT/(LOSS) |
The operating profit (2023 - operating loss) is stated after charging/(crediting): |
PERIOD |
1/3/22 |
YEAR ENDED | TO |
27/2/24 | 27/2/23 |
£ | £ |
Plant hire costs |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 27 FEBRUARY 2024 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
PERIOD |
1/3/22 |
YEAR ENDED | TO |
27/2/24 | 27/2/23 |
£ | £ |
Interest on corporation tax | ( |
) |
Hire purchase |
6. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
PERIOD |
1/3/22 |
YEAR ENDED | TO |
27/2/24 | 27/2/23 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
(Over)/under provision of corporation tax in prior year |
- |
(205 |
) |
Total current tax | ( |
) |
Deferred tax | ( |
) |
Tax on profit/(loss) | ( |
) |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
PERIOD |
1/3/22 |
YEAR ENDED | TO |
27/2/24 | 27/2/23 |
£ | £ |
Profit/(loss) before tax | ( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Utilisation of tax losses | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
Deferred tax movement | (42,873 | ) |
Total tax charge/(credit) | 239,684 | (144,373 | ) |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 27 FEBRUARY 2024 |
6. | TAXATION - continued |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of heritable property | - | 150,000 |
As at 27 February 2024, there were tax losses available for carry forward amounting to £229,499 (2023: £291,864). |
7. | TANGIBLE FIXED ASSETS |
Heritable | Plant and | Motor | Computer |
property | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 28 February 2023 |
Additions |
Disposals | ( |
) | ( |
) |
Revaluations |
At 27 February 2024 |
DEPRECIATION |
At 28 February 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 27 February 2024 |
NET BOOK VALUE |
At 27 February 2024 |
At 27 February 2023 |
Cost or valuation at 27 February 2024 is represented by: |
Heritable | Plant and | Motor | Computer |
property | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
Valuation in 2013 | 326,378 | - | - | - | 326,378 |
Valuation in 2018 | 50,000 | - | - | - | 50,000 |
Valuation in 2024 | 150,000 | - | - | - | 150,000 |
Cost | 123,622 | 3,645,200 | 609,062 | 26,726 | 4,404,610 |
650,000 | 3,645,200 | 609,062 | 26,726 | 4,930,988 |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 27 FEBRUARY 2024 |
7. | TANGIBLE FIXED ASSETS - continued |
If heritable property had not been revalued it would have been included at the following historical cost: |
2024 | 2023 |
£ | £ |
Cost | 123,622 | 123,622 |
Heritable property was valued on an open market basis on 15 January 2025 by DM Hall Chartered Surveyors. The directors consider that the valuation as at 15 January 2025 reflects the fair value of the property at the balance sheet date. |
Included in fixed assets above are assets held under hire purchase agreements or finance leases with a net book value of £708,463 (2023: £326,437). The depreciation charge for the year in respect of these assets amounted to £236,154 (2023: £108,812). |
8. | STOCKS |
2024 | 2023 |
£ | £ |
Raw materials |
9. | DEBTORS |
2024 | 2023 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts recoverable on contracts |
Other debtors |
Corporation tax recoverable |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Other debtors |
Aggregate amounts |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 27 FEBRUARY 2024 |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 12) |
Trade creditors |
Corporation tax |
Social security and other taxes |
VAT | 362,683 | 266,439 |
Other creditors |
Director's current account | 151,561 | 192,464 |
Accruals and deferred income |
11. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 12) |
12. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 27 FEBRUARY 2024 |
12. | LEASING AGREEMENTS - continued |
Non-cancellable | operating leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
13. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Hire purchase contracts | 497,831 | 226,424 |
Hire purchase obligations are secured over the assets to which the agreements relate. |
14. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | 364,385 | 124,701 |
Deferred |
tax |
£ |
Balance at 28 February 2023 |
Accelerated capital allowances | 89,120 |
Tax losses utilised | 25,758 |
Chargeable gain on revaluation | 124,806 |
of property |
Balance at 27 February 2024 |
The provision for deferred taxation consists of the tax effect of fixed asset timing differences and deferred tax arising on the revaluation of heritable property offset by the availability of tax losses carried forward. |
15. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 10,000 | 10,000 |
Ordinary shares have equal rights with regards to voting, participation and dividends. |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 27 FEBRUARY 2024 |
16. | RESERVES |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 28 February 2023 | 2,911,784 |
Profit for the year |
Revaluation in year | - | 150,000 | 150,000 |
Deferred tax on revaluation | 82,947 | (82,947 | ) | - |
At 27 February 2024 | 3,260,838 |
The revaluation reserve is a non-distributable reserve and relates to the unrealised gain arising on the revaluation of the company's heritable property (note 7). |
17. | PENSION COMMITMENTS |
The company operates a defined contribution scheme, the assets of which are held separately from those of the company in an independently administered fund. Contributions made by the company to the scheme amount to £78,123 (2023: £41,314). At the balance sheet date, £8,887 (2023: £1,940) was due to be paid to the scheme. |
18. | CAPITAL COMMITMENTS |
As at 27 February 2024, the company had no capital commitments (2023: £nil). |
19. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the year ended 27 February 2024 and the period ended 27 February 2023: |
2024 | 2023 |
£ | £ |
Balance outstanding at start of year | ( |
) |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | ( |
) | ( |
) |
In the prior year, interest of £574 was charged on the overdrawn loan account until it was repaid. In the current year, no interest has been charged by the director on the loan provided to the company. The loan is repayable on demand. |
In the event of the director being owed a balance by the company, the amount due is secured by a bond and floating charge over the company's property and undertakings. |
MACLAY (CIVIL ENGINEERING) LIMITED (REGISTERED NUMBER: SC058460) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 27 FEBRUARY 2024 |
20. | RELATED PARTY DISCLOSURES |
The company is controlled by C McLaughlan, director. |
During the period, the company paid expenses on behalf of Bothwell Transport Ltd of £553 (2023: £450)), a company in which C McLaughlan and A C McLaughlan are directors. During the period, Bothwell Transport Ltd paid £nil (2023: £370,000) to the company. Included in creditors is a balance of £50,529 (2023: £51,082) due to Bothwell Transport Ltd. The loan is interest free, unsecured and is repayable on demand. |
Amounts owed to directors are disclosed in note 19. |