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MAGROCK GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

 
MAGROCK GROUP LIMITED
 

COMPANY INFORMATION


Director
R V Brewer 




Company secretary
K Boarer



Registered number
10629127



Registered office
39 Kings Hill Avenue
Kings Hill

West Malling

Kent

ME19 4SD




Independent auditors
Magee Gammon Corporate Limited
Chartered Accountants & Statutory Auditors

Henwood House

Henwood

Ashford

Kent

TN24 8DH





 
MAGROCK GROUP LIMITED
 

CONTENTS



Page
Group strategic report
 
1 - 5
Director's report
 
6 - 9
Independent auditors' report
 
10 - 13
Consolidated statement of comprehensive income
 
14
Consolidated balance sheet
 
15
Company balance sheet
 
16
Consolidated statement of changes in equity
 
17
Company statement of changes in equity
 
18
Consolidated statement of cash flows
 
19
Consolidated analysis of net debt
 
20
Notes to the financial statements
 
21 - 36


 
MAGROCK GROUP LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Introduction
 
The director presents his strategic report with the audited financial statements of the Group for the year ended 30 September 2024.
Principal activity
The principal activity of Magrock Group Limited is that of a holding company.
The principal activity of Magrock Ltd, the subsidiary of Magrock Group Limited in the year under review was that of main contractor specialising in the delivery of new build, fit out and refurbishment projects in the industrial, commercial, logistics and retail sectors.

Business review
 
The Group has shown a strong year of growth with revenue increasing by 21.3%, profit margins remaining strong and multiple projects awarded by both existing and new clients. 
Key highlights for the period are demonstrated below:


2024
2023



Turnover
£83,084,397
£68,513,767
Gross Profit as a %
10.5%
10%
Profit before tax
£4,537,516
£4,058,188
Balance sheet
£7,273,821
£5,258,859
Headcount
80
56

The Group has cash and cash equivalents at the end of the year of £23,682,420 (2023 - £13,051,083). Throughout the year, the Group was able to meet all of its payment obligations and continues to manage its working capital without the need to raise finance.

The Group continues to invest in people and resources to support its growth. We have increased our staff numbers from 56 in 2023 to 80 in 2024 and have significantly invested in our head office and central services support functions to ensure our growth is controlled and sustained. 

We have introduced a number of new departments and a level of senior management, many of whom have been promoted from within, to provide additional support to the projects and ensure our reputation for delivering quality projects is upheld.

This period saw the opening of our Midlands office to further expand the business and provide support for our Midlands based team and clients.

We recognise the need to demonstrate our covenant strength to existing and potential clients in an uncertain market. With a number of contractors going into administration strengthening clients requirements for performance bonds, we have focused on increasing our balance sheet to ensure we can meet these requirements.

We also have the ability to provide Parent Company Guarantees through our parent company Magrock Group Ltd, further supporting our commitment to meeting client requirements and providing the necessary confidence.
Health and Safety
Health and Safety is the main focus at Magrock and we continue to maintain excellent safety standards, aiming to deliver incident and accident-free projects. 
We are committed to the continued improvement to our health and safety standards, policies and procedures and have implemented numerous changes to further strengthen them. Our permit system is currently being reviewed, and changes have been made to our safe excavation procedures to further improve our requirements and ensure a rigorous and robust system.
 
Page 1

 
MAGROCK GROUP LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024


Business review (continued)
Each of our projects is regularly audited by our Health and Safety Manager. These results are used to revise and improve business policies and procedures, with the focus on raising our safety standards year on year. Audit scores have increased over the period demonstrating our continuous improvement of safety standards.
We continue to use and develop our on-line induction system for our projects. This platform also acts as a reporting tool for health and safety observations on all projects, as well as ensuring risk assessment, method statements and thorough examinations of plant and lifting equipment are current and approved which enables us to continuously monitor and improve the health and safety on our projects alongside the existing protocols. 
In addition to our existing health and safety accreditations such as ISO 45001 and CHAS we are also members of the British Safety Council and The Royal Society for the Prevention of Accidents (RoSPA).
We have introduced a Health and Safety Committee which is made up of members of staff across the board to further strengthen our commitment to health and safety and improve our already robust policies and practices.
Environmental, Social and Governance
We understand the responsibilities we have to the economic, environmental and social wellbeing requirements of the communities we work in and are committed to delivering lasting sustainable values to meet these requirements.
We have committed to increasing social value across the business and being active in the local communities where we operate with a contribution of over £675,000 made across the period. This includes local employment, community partnerships and charity fundraising. Some highlights of our charity events across the year were our annual golf day which raised £25,000 for The Cure CJD Campaign, sponsorship of the Messy Dash for We are Beams and the completion of the Three Peaks challenge by members of our team raising £37,000 for the Lighthouse Charity and The Royal Marsden Cancer Charity
.
Every project is registered with the Considerate Constructors Scheme. This scheme provides us with a platform to monitor our performance against industry averages and set KPI’s for further improvements. 
We take positive steps to ensure legislation and regulations are adhered to as well ensuring our principles, policies and procedures are upheld. Data is collated and regularly audited for compliance by our central services team to ensure this is happening. This information is monitored as part of our KPI’s and fed back to board level to assist in identifying trends and areas that require improvement.

Principal risks and uncertainties
 
The Group operates in a high-risk environment both operationally and commercially. The management of these risks is integral to all of our activities. 
 
Risks are formally reviewed by the director and appropriate processes put in place to monitor and mitigate them. If more than one event occurs, it is possible that the overall effect of such events would compound the possible adverse effects on the Group. The key business risks affecting the Group are set out below.
Economic Conditions
Construction has been facing a volatile market for quite some time. Although there are indications of returning confidence in certain aspects such as pricing and the availability of construction materials, there remains significant uncertainty regarding our domestic and global economics. These uncertainties have the potential to further impact the industry. In addition to inflation, interest rates are also hindering investment decisions and pose a threat to future projects as well new challenges arising in planning and achieving net-zero objects within the built environment.
We are continuing to face project delays as the time period from tender to project award has typically extended due to developers continuing to wait for economic improvements through interest rate reductions.
 
Page 2

 
MAGROCK GROUP LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024


Principal risks and uncertainties (continued)
We deal with these changes by dedicating a significant amount of time to maintaining and expanding our trusted network of construction partners. This is a collaborative process during which we hold our partners to the same high standards and expectations as ourselves to ensure a seamless, efficient and effective construction process. Such an approach aims to minimise and, wherever feasible, mitigate risks in the schedule project programme. 
Competition
The Group operates in a highly competitive and homogenous market particularly around price and service. This results not only in downward pressure on margins but also the risk of not meeting customers' expectations. 
We have made a significant impact in the industry through our commitment to excellence in project delivery and have successfully crafted a refreshing and unique proposition for developers. Referred to as ‘The Magrock Way’ we place the utmost importance on cultivating strong relationships and maintaining an unwavering focus on design, quality, safety and sustainability. By fostering interconnected working relationships, we ensure the delivery of construction projects with impeccable precision and uncompromising quality.
This focus on delivering a superior product and service begins and ends with the implementation of our robust operational standards and procedures. As a result, our dedication to service excellence, expertise and stringent standards consistently surpasses our clients’ expectations.

Employees
Performance depends significantly on its directors, senior management and other key employees. The resignation of these individuals and the inability to recruit people with the right experience and skills from the market could adversely impact the Group's results. To mitigate these issues, the board of directors has implemented programmes and schemes to retain such key individuals including an ongoing training programme and a reward scheme.
Supply Chain
A continued number of insolvencies of well-established and reputable contractors across the industry in 2024 means the risk our supply chain being affected remains high. 
To mitigate any impact, we work closely with our supply chain to ensure they can deliver our commitments. We also monitor their financial stability closely via credit checks, confirming references and setting appropriate credit terms. 
Contract Losses
Due to the relatively small profit margins on contracts any losses can have a significant impact on the business. This is mitigated by the robust processes in all areas of the project from tender through to post-construction.
The Group also has a thorough commercial review process of all projects to ensure that profit margins are maintained, any issues are identified early and managed effectively. This process includes continuously reviewing the project risks and opportunities.
Insurance / Surety Markets
With insurance premiums continuing to increase and availability of products tightening we work hard to meet clients’ expectations and requirements, particularly where funding is involved. We engage with clients to keep them informed of the market conditions and provide alternative mechanisms under the contract.
With the surety market being hit by a number of high-profile insolvencies the provision of performance bonds has become more challenging. To make sure we are in the best position possible we work hard to ensure our balance sheet and cash positions remain strong and work with our facility providers continuously to provide confidence in the Group. 
 Financing
The Group has no external debt and strong liquidity with cash balances at the end of the year of £23,683,420. Cashflow is monitored on a regular basis with credit terms negotiated with both clients and supply chain to ensure all liabilities are paid as they fall due without the need of external financing.

Page 3

 
MAGROCK GROUP LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Financial key performance indicators
 
The Group constantly reviews both financial and non-financial key performance indicators in order to assess Group performance. These include revenue, gross profit margin, overhead control, cash balance, contract values, accident frequency rate, client satisfaction and retention and employee retention.
The Group's principal financial instruments comprise of bank and balances, trade creditors, trade debtors, and finance lease arrangements. The main purpose of the instruments is to finance the Group's operations. Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. 

Looking forward
 
With our average project size increasing year on year and the number of projects awarded increasing the business will continue to see the turnover growth continue into 2025.
 
Despite uncertainties in the wider economy, we have experienced an increase in tender enquiries with a consistent level of projects continuing to be awarded. Our increased capability ensures we can continue to meet this demand, increasing our market share and insulating the business against some of the long-term uncertainties.
 
We will continue to invest in our people, increasing the number of both operational staff and support staff to support the continued controlled growth of the Group. With an extensive schedule of training will also be developing our talented employees and encouraging their professional development.
As part of this investment in our people and the growth of the Group we will be introducing new departments with a strengthened layer of management, this will include a dedicated department for ESG and Sustainability to ensure that we can meet the targets set and further improve the service we offer to our clients.
The health and wellbeing of our employees is at the forefront of our policies, to reinforce this we are in the process of gaining Investors in People accreditation to further strengthen this commitment.
We are committed to fostering continuous innovation in developing our standards and enhancing our services. We aim to attract and onboard more exceptional talent from the industry, expanding our team and further solidifying our reputation across the sectors we serve.
 
With a forward order book in excess of £100m we are on target for continued organic growth. This growth will be driven by repeat business with both existing and new clients whilst diversifying into new sectors.
 

Director's statement of compliance with duty to promote the success of the Group
 
Section 172 statement
Section 172 of the Companies Act 2006 requires directors to act in a way that they consider, in good faith, would be most likely to promote the success of the Group for the benefit of its members as a whole. In doing so, directors must have regard to all the various stakeholders of the Group, as well as our impact on the community and the environment, and the likely consequences of strategic decisions in the long term.
As set out in this strategic report Magrock complies with these requirements. We interact regularly and openly with stakeholders, including employees, suppliers and clients. We are taking steps to reduce our impact on both the environment and the local areas in which we operate, whilst encouraging and maintaining high standards of quality and conduct.
The Board of Directors is responsible for setting the Group’s overall strategy and maintaining oversight of its activities. The Board believes that having regard to each of these stakeholder groups ensures the proper discharge of their duties under section 172.

 
Page 4

 
MAGROCK GROUP LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024



This report was approved by the board and signed on its behalf.



___________________________
R V Brewer
Director

Date: 8 April 2025

Page 5

 
MAGROCK GROUP LIMITED
 

 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

The director presents his report and the financial statements for the year ended 30 September 2024.

Director's responsibilities statement

The director is responsible for preparing the Group strategic report, the Director's report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the director is required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK 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 Group will continue in business.

The director is 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £3,514,962 (2023 - £3,129,009).

The directors do not propose payment of any further dividends in respect of the year (2023 - £Nil).

Director

The director who served during the year was:

R V Brewer 

Future developments

None in addition to those mentioned in the looking forward component of the strategic report.

Page 6

 
MAGROCK GROUP LIMITED
 

 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Financial instruments

Financial risk management
The Group's funding, liquidity and exposure to interest rate risks are managed by the board of directors. The management of this is conducted within a framework of policies and guidelines authorised by the board.  
The Group's financial instruments comprise cash and liquid resources, finance agreements and various items such as trade debtors and trade creditors that arise directly from its operating activities. The main purpose of the financial instruments is to raise finance for the company's operations.
The Group publishes its financial statements in pounds sterling and conducts business in sterling. The foreign currency risk is considered minimal. 
It is, and has been throughout the year under review, the Group's policy that no trading in financial instruments shall be undertaken.
Liquidity and cashflow risk
As regards liquidity, the Group's policy throughout the year has been to ensure continuity of funding through proactive working capital management and continued focus on strengthening the balance sheet position and maintaining a surplus cash position.
Interest rate risk
The Group has minimal borrowing to finance it's operations. The Group has finance lease and hire purchase contracts, but risk is considered minimal based on the total value of finance obtained.
The board will consider the appropriateness of financing should the operations change significantly in size or nature.

Engagement with suppliers, customers and others

Sustainability
We are committed to being a responsible business and to supporting clients in achieving their own sustainability targets. We aim to reduce our environmental impact by embracing eco-friendly construction methods, sustainable materials and energy-efficient technologies.
We work closely with our clients and our supply chain to put sustainability at the forefront of our business choices whilst providing a robust sustainability strategy to ensure we have a positive legacy to the communities we work in. 
Material efficiency is key to meeting our sustainability goals, using our Sustainable Procurement Policy we ensure we maximise material efficiency throughout the design process. The use of recycled content with construction materials are considered and implemented to ensure as many low-carbon materials as possible are utilised across our projects.
Supply Chain
Our supply chain is one of our greatest assets and we work hard to ensure that we maintain strong relationships with key members. As well as our trusted network we have continued to grow our supply chain with the introduction of numerous companies through existing relationships with new team members.
We have introduced a dedicated procurement department who are constantly communicating with our supply chain to ensure issues are addressed and any adverse risks are highlighted at an early stage of the procurement process.
To ensure these relationships are further strengthened we pride ourselves in our precise and prompt payment system for our supply chain ensuring they are always paid on time, with payment terms ranging from 14 to 42 days.

Page 7

 
MAGROCK GROUP LIMITED
 

 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Greenhouse gas emissions, energy consumption and energy efficiency action

Net Zero Carbon
We continue to be a PlanetMark certified Group and have made a commitment to reduce carbon emissions by at least 5% per year from 2023 onwards.
To ensure we remain on target we have taken a proactive approach to monitoring and recording our carbon data. Utilising internal monitoring tools such as Smartwaste and the use of external certification with PlanetMark we have clear understanding of our carbon data.
Using our Smartwaste tool we accurately record and monitor waste volumes ensuring we commit to a minimum of 90% diversion of waste from landfills. Waste streams are regularly monitored and strategies adopted to ensure waste is recycled directly, using long standing relationships with community wood recycling schemes as a way of controlling this.
As well as developing our own carbon reduction plan, we continue to support clients in delivering Net Zero Carbon in construction.
Scope 1 and Scope 2 greenhouse gas emissions have been measured across the business using this code of conduct. Scope 1 and Scope 2 emissions were reduced by 9% per employee compared to the previous year.
 

Greenhouse gas emissions
2024
2023



Scope 1: Emissions from gas and construction site fuel
194.5
168.4
Scope 2: Emissions from electricity use
30.3
34.8
Scope 3: Emissions from business travel
302.1
228.7
Total Scope 1, 2 & 3 Emissions
526.9
431.9
.
Although our emissions were reduced per employee, they increased in the year as expected. This is due to improved data reporting and an increase in our business operations and staff. 
We are committed to achieving Net Zero Carbon for scope 1 and scope 2 emissions by 2035 and to achieve scope 3 emissions by 2050.
As part of our continued commitment to reducing out carbon emissions across the business we have taken the decision to mandate HVO fuels on all projects for our temporary welfare set ups.
 

Matters covered in the Group strategic report

Future developments are included within the Looking forward section of the Strategic Report.

Disclosure of information to auditors

The director at the time when this Director's report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Page 8

 
MAGROCK GROUP LIMITED
 

 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Auditors

The auditorsMagee Gammon Corporate Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





___________________________
R V Brewer
Director

Date: 8 April 2025

Page 9

 
MAGROCK GROUP LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAGROCK GROUP LIMITED
 

Opinion


We have audited the financial statements of Magrock Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 September 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 of the parent Company's affairs as at 30 September 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.


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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the 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 director with respect to going concern are described in the relevant sections of this report.


Page 10

 
MAGROCK GROUP LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAGROCK GROUP LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 Group strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Director's 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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Director's 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 director's 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 Director's responsibilities statement set out on page 6, the director is 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 director determines 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 director is responsible for assessing the Group's and 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 director either intends to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 11

 
MAGROCK GROUP LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAGROCK GROUP LIMITED (CONTINUED)


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 an Auditors' 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 Group 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:
Based on our understanding of the company, we have considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.  We evaluated management incentives and opportunities for fraudulent manipulation of the financial statements including management override, and considered that the principal risk was related to the posting of inappropriate journal entries to improve the result before tax for the year.
We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.
Procedures performed by the audit team included:
• Discussions with management regarding known or suspected instances of non-compliance with laws and
 regulations;
• Evaluation of controls designed to prevent and detect irregularities; and
• Assessing journal entries as part of our planned audit approach.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.  As in all of our audits we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.


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 Auditors' report.


Page 12

 
MAGROCK GROUP LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAGROCK GROUP LIMITED (CONTINUED)


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 2006Our 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 Auditors' 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.





Andrew John Childs FCA (Senior statutory auditor)
for and on behalf of
Magee Gammon Corporate Limited
Chartered Accountants
Statutory Auditors
Henwood House
Henwood
Ashford
Kent
TN24 8DH

8 April 2025
Page 13

 
MAGROCK GROUP LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2024
2023
Note

  

Turnover
 4 
83,084,397
68,513,767

Cost of sales
  
(74,398,631)
(61,679,228)

Gross profit
  
8,685,766
6,834,539

Administrative expenses
  
(4,232,209)
(2,818,840)

Operating profit
 5 
4,453,557
4,015,699

Interest receivable and similar income
 9 
90,632
46,739

Interest payable and similar expenses
 10 
(6,673)
(4,250)

Profit before taxation
  
4,537,516
4,058,188

Tax on profit
 11 
(1,022,554)
(929,179)

Profit for the financial year
  
£3,514,962
£3,129,009

Profit for the year attributable to:
  

Owners of the parent Company
  
3,514,962
3,129,009

  
£3,514,962
£3,129,009

Total comprehensive income for the year attributable to:
  

Owners of the parent Company
  
3,514,962
3,129,009

  
£3,514,962
£3,129,009

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 21 to 36 form part of these financial statements.

Page 14

 
MAGROCK GROUP LIMITED
REGISTERED NUMBER: 10629127

CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER 2024

2024
2023
Note

Fixed assets
  

Tangible assets
 14 
568,080
412,213

  
568,080
412,213

Current assets
  

Debtors: amounts falling due after more than one year
 16 
1,540,149
865,106

Debtors: amounts falling due within one year
 16 
10,125,266
7,270,652

Cash at bank and in hand
 17 
23,683,420
13,051,083

  
35,348,835
21,186,841

Creditors: amounts falling due within one year
 18 
(27,910,319)
(15,770,362)

Net current assets
  
 
 
7,438,516
 
 
5,416,479

Total assets less current liabilities
  
8,006,596
5,828,692

Creditors: amounts falling due after more than one year
 19 
(697,563)
(569,833)

Provisions for liabilities
  

Deferred taxation
 22 
(35,212)
-

Net assets
  
£7,273,821
£5,258,859


Capital and reserves
  

Called up share capital 
 23 
889
889

Merger reserve
 24 
443,999
443,999

Profit and loss account
 24 
6,828,933
4,813,971

Equity attributable to owners of the parent Company
  
7,273,821
5,258,859

  
£7,273,821
£5,258,859


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




___________________________
R V Brewer
Director

Date: 8 April 2025

The notes on pages 21 to 36 form part of these financial statements.

Page 15

 
MAGROCK GROUP LIMITED
REGISTERED NUMBER: 10629127

COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024

2024
2023
Note

Fixed assets
  

Investments
 15 
2,000,000
2,000,000

Current assets
  

Cash at bank and in hand
 17 
444
444

  
 
 
444
 
 
444

Total assets less current liabilities
  
2,000,444
2,000,444

  

  

Net assets
  
£2,000,444
£2,000,444


Capital and reserves
  

Called up share capital 
 23 
889
889

Other reserves
 24 
1,999,555
1,999,555

  
£2,000,444
£2,000,444


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




___________________________
R V Brewer
Director

Date: 8 April 2025

The notes on pages 21 to 36 form part of these financial statements.

Page 16

 
MAGROCK GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024


Called up share capital
Merger reserve
Profit and loss account
Equity attributable to owners of parent Company
Total equity


At 1 October 2022
889
443,999
2,754,962
3,199,850
3,199,850


Comprehensive income for the year

Profit for the year
-
-
3,129,009
3,129,009
3,129,009
Total comprehensive income for the year
-
-
3,129,009
3,129,009
3,129,009


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(1,070,000)
(1,070,000)
(1,070,000)


Total transactions with owners
£-
£-
£(1,070,000)
£(1,070,000)
£(1,070,000)



At 1 October 2023
889
443,999
4,813,971
5,258,859
5,258,859


Comprehensive income for the year

Profit for the year
-
-
3,514,962
3,514,962
3,514,962
Total comprehensive income for the year
-
-
3,514,962
3,514,962
3,514,962


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(1,500,000)
(1,500,000)
(1,500,000)


At 30 September 2024
£889
£443,999
£6,828,933
£7,273,821
£7,273,821


The notes on pages 21 to 36 form part of these financial statements.

Page 17

 
MAGROCK GROUP LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024


Called up share capital
Other reserves
Profit and loss account
Total equity


At 1 October 2022
889
1,999,555
-
2,000,444


Comprehensive income for the year

Profit for the year
-
-
1,070,000
1,070,000
Total comprehensive income for the year
-
-
1,070,000
1,070,000


Contributions by and distributions to owners

Dividends: Equity capital
£-
£-
£(1,070,000)
£(1,070,000)



At 1 October 2023
889
1,999,555
-
2,000,444


Comprehensive income for the year

Profit for the year
-
-
1,500,000
1,500,000
Total comprehensive income for the year
-
-
1,500,000
1,500,000


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(1,500,000)
(1,500,000)


At 30 September 2024
£889
£1,999,555
£-
£2,000,444


The notes on pages 21 to 36 form part of these financial statements.

Page 18

 
MAGROCK GROUP LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2024
2023

Cash flows from operating activities

Profit for the financial year
3,514,962
3,129,009

Adjustments for:

Depreciation of tangible assets
139,331
91,344

Loss on disposal of tangible assets
(3,423)
-

Interest paid
6,673
4,250

Interest received
(90,632)
(46,739)

Taxation charge
1,022,554
929,179

(Increase) in debtors
(3,542,119)
(1,295,048)

Increase in creditors
12,165,596
6,492,855

Corporation tax (paid)
(815,059)
(958,483)

Net cash generated from operating activities

12,397,883
8,346,367


Cash flows from investing activities

Purchase of tangible fixed assets
(333,775)
(381,913)

Sale of tangible fixed assets
42,000
-

Interest received
90,632
46,739

HP interest paid
(6,673)
(4,250)

Net cash from investing activities

(207,816)
(339,424)

Cash flows from financing activities

Repayment of/(new) finance leases
(57,730)
43,329

Dividends paid
(1,500,000)
(1,070,000)

Net cash used in financing activities
(1,557,730)
(1,026,671)

Net increase in cash and cash equivalents
10,632,337
6,980,272

Cash and cash equivalents at beginning of year
13,051,083
6,070,811

Cash and cash equivalents at the end of year
£23,683,420
£13,051,083


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
23,683,420
13,051,083

£23,683,420
£13,051,083


The notes on pages 21 to 36 form part of these financial statements.

Page 19

 
MAGROCK GROUP LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 SEPTEMBER 2024




At 1 October 2023
Cash flows
At 30 September 2024



Cash at bank and in hand

13,051,083

10,632,337

23,683,420

Debt due within 1 year

(271,969)

(1,248,404)

(1,520,373)

Finance leases

(109,190)

57,730

(51,460)


£12,669,924
£9,441,663
£22,111,587

The notes on pages 21 to 36 form part of these financial statements.

Page 20

 
MAGROCK GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

1.


General information

Magrock Group Limited is a private company, limited by shares, incorporated in England and Wales. The company registration number is 10629127. The registered office address is 39 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4SD.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between Group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using merger accounting. Accordingly, the consolidated statement of comprehensive income and the consolidated balance sheet include all transactions of the subsidiary for the current and comparative period. 

Page 21

 
MAGROCK GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 22

 
MAGROCK GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.7

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 23

 
MAGROCK GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)


2.9
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Short-term leasehold property
-
Over the term of the lease
Plant and machinery
-
20%
Motor vehicles
-
20%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.13

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.14

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

Page 24

 
MAGROCK GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.15

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Deferred tax liabilities are also presented within provisions but are measured in accordance with the accounting policy on taxation.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.16

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, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
 
Page 25

 
MAGROCK GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)


2.16
Financial instruments (continued)


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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

 
2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 26

 
MAGROCK GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Group's accounting policies, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 the accounting estimates are recognised in the period in which the estimate is revised if the revisions affect only that period, or in the period of revision and future periods if the revision affects both the current and future periods.
Carrying value of plant and machinery and motor vehicles
As described in note 2.9 to the financial statements, plant and machinery, fixtures and fittings and motor vehicles are stated at historical cost less accumulated depreciation and accumulated impairment losses. The management base the useful economic life, residual value and therefore the rate of depreciation of these assets on the historical knowledge of such assets and the market within which the company operates.
Amounts recoverable on long term contracts & payments on account
Amounts recoverable on long term contacts is an estimate based on revenue recognised in the period in which the services are provided, in accordance with the stage of completion of the contract, when all of the four conditions as described in note 2.3 are satisfied. Management's basis for determining the stage of completion is derived from valuation reports which denote the value of works completed and estimated profitability of the project.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023

Construction contracts
£83,084,397
£68,513,767


All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2024
2023

Depreciation of tangible fixed assets
139,331
91,344

Defined contribution pension cost
£100,354
£166,468

Page 27

 
MAGROCK GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

6.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors and their associates:


2024
2023

Fees payable to the Company's auditors and their associates for the audit of the consolidated and parent Company's financial statements
3,750
3,500

All other services

All other services
65,616
58,270


7.


Employees

Staff costs, including director's remuneration, were as follows:


Group
Group
2024
2023


Wages and salaries
6,285,229
4,004,394

Social security costs
756,492
491,030

Cost of defined contribution scheme
258,945
166,468

£7,300,666
£4,661,892


The average monthly number of employees, including the director, during the year was as follows:



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Director
1
1
-
1



Directors of subsidiary
6
6
-
-



Direct staff
64
43
-
-



Support staff
9
7
-
-

80
57
0
1

Page 28

 
MAGROCK GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

8.


Director's remuneration

2024
2023

Director's emoluments
1,378,916
1,092,467

Group contributions to defined contribution pension schemes
51,150
42,725

£1,430,066
£1,135,192


During the year retirement benefits were accruing to 7 directors (2023 - 7) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £250,797 (2023 - £232,092).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £14,400 (2023 - £9,000).


9.


Interest receivable

2024
2023


Other interest receivable
£90,632
£46,739


10.


Interest payable and similar expenses

2024
2023


Finance leases and hire purchase contracts
£6,673
£4,250


11.


Taxation


2024
2023

Corporation tax


Current tax on profits for the year
994,667
893,560

Adjustments in respect of previous periods
(19,787)
-


974,880
893,560


Total current tax
£974,880
£893,560

Deferred tax


Origination and reversal of timing differences
47,674
35,619

Total deferred tax
£47,674
£35,619


Tax on profit
£1,022,554
£929,179
Page 29

 
MAGROCK GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 25%). The differences are explained below:

2024
2023


Profit on ordinary activities before tax
£4,537,516
£4,058,188


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
1,134,379
1,014,547

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
16,629
44,570

Capital allowances for year in excess of depreciation
43,095
9

Adjustments to tax charge in respect of prior periods
(19,787)
-

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
(151,762)
-

Other differences leading to an increase (decrease) in the tax charge
-
(129,947)

Total tax charge for the year
£1,022,554
£929,179


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Dividends

2024
2023


Dividends paid on equity capital
£1,500,000
£1,070,000


13.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year was £1,500,000 (2023 - £1,070,000).

Page 30

 
MAGROCK GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

14.


Tangible fixed assets

Group






Short-term leasehold property
Plant and machinery
Motor vehicles
Total



Cost or valuation


At 1 October 2023
159,673
203,803
222,153
585,629


Additions
139,461
-
194,314
333,775


Disposals
-
-
(112,800)
(112,800)



At 30 September 2024

299,134
203,803
303,667
806,604



Depreciation


At 1 October 2023
24,030
64,387
84,999
173,416


Charge for the year on owned assets
31,944
38,426
68,961
139,331


Disposals
-
-
(74,223)
(74,223)



At 30 September 2024

55,974
102,813
79,737
238,524



Net book value



At 30 September 2024
£243,160
£100,990
£223,930
£568,080



At 30 September 2023
£135,643
£139,416
£137,154
£412,213




The net book value of land and buildings may be further analysed as follows:


2024
2023

Short leasehold
£243,160
£135,643


The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023



Motor vehicles
£52,967
£118,724

Page 31

 
MAGROCK GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

15.


Fixed asset investments

Company





Investments in subsidiary companies



Cost or valuation


At 1 October 2023
2,000,000



At 30 September 2024
£2,000,000





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Magrock Limited
39 Kings Hill Avenue, Kings Hill, West Malling, Kent, England, ME19 4SD
Ordinary
100%

The aggregate of the share capital and reserves as at 30 September 2024 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)

Magrock Limited
7,273,377
3,514,962

Page 32

 
MAGROCK GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

16.


Debtors

Group
Group
2024
2023

Due after more than one year

Trade debtors
£1,540,149
£865,106


Group
Group
2024
2023

Due within one year

Trade debtors
7,127,709
6,643,925

Other debtors
38,625
29,388

Prepayments and accrued income
105,142
77,217

Amounts recoverable on long-term contracts
2,853,790
507,660

Deferred taxation
-
12,462

£10,125,266
£7,270,652



17.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023

Cash at bank and in hand
£23,683,420
£13,051,083
£444
£444



18.


Creditors: Amounts falling due within one year

Group
Group
2024
2023

Payments received on account
4,467,152
2,260,214

Trade creditors
12,452,629
7,419,851

Corporation tax
557,780
397,958

Other taxation and social security
4,244,415
2,652,468

Obligations under finance lease and hire purchase contracts
6,004
24,251

Other creditors
1,743,844
304,294

Accruals and deferred income
4,438,495
2,711,326

£27,910,319
£15,770,362


Page 33

 
MAGROCK GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

19.


Creditors: Amounts falling due after more than one year

Group
Group
2024
2023

Net obligations under finance leases and hire purchase contracts
45,456
84,939

Trade creditors
652,107
484,894

£697,563
£569,833


Hire purchase contracts are secured on the assets concerned.


20.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2024
2023

Within one year
6,004
24,251

Between 1-5 years
45,456
84,939

£51,460
£109,190


21.


Financial instruments

Group
Group
Company
Company
2024
2023
2024
2023

Financial assets

Financial assets measured at fair value through profit or loss
23,683,420
13,051,083
444
444

Financial assets measured at amortised cost
8,706,483
7,538,419
-
-

£32,389,903
£20,589,502
£444
£444


Financial liabilities

Financial liabilities measured at amortised cost
£19,092,994
£10,861,507
£-
£-


Financial assets measured at fair value through profit or loss comprise of cash at bank and in hand.


Financial assets measured at amortised cost comprise of trade debtors and other debtors.


Financial liabilities measured at amortised cost comprise of trade creditors, other taxation and social security and other creditors.

Page 34

 
MAGROCK GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

22.


Deferred taxation


Group



2024
2023





At beginning of year
(12,462)
(48,081)


Charged to profit or loss
47,674
35,619



At end of year
£35,212
£(12,462)

Company


2024
2023






At end of year
£-
£-
Group
Group
2024
2023

Accelerated capital allowances
61,368
49,590

Other timing differences
(26,156)
(62,052)

£35,212
£(12,462)


23.


Share capital

2024
2023
Allotted, called up and fully paid



800,000 (2023 - 800,000) Ordinary shares of £0.001 each
800
800
88,888 (2023 - 88,888) A Ordinary shares of £0.001 each
89
89

£889

£889

All shares are fully paid, carry full voting rights and are entitled to receive dividends.



24.


Reserves

Merger Reserve

The merger reserve represents the difference between carrying value of the assets and liabilities acquired under merger accounting to the cost of investment and is not distributable. 

Profit and loss account

The profit and loss account is a reserve of the accumulated profit and loss after tax and dividends. This reserve is fully distributable.

Page 35

 
MAGROCK GROUP LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

25.


Contingent liabilities

As mentioned in the Strategic Report, the parent company, in some instances, provides guarantees for construction contracts in the subsidiary entity.


26.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group  in an independently administered fund. Contributions totalling £104,623 (2023 - £248,209) were payable to the fund at the balance sheet date and are included in creditors.


27.


Commitments under operating leases

At 30 September 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023

Within 1 year
74,125
74,125

Within 2 - 5 years
156,373
230,498

£230,498
£304,623

28.


Transactions with directors

During the year under review, credits were made to the group by the director and close family members totalling £1,391,990. At the balance sheet date, a total of £1,415,750 was owed to the directors by the group (2023 - £23,760 was owed to the directors by the group). The balances are interest free and repayable on demand.


29.
Controlling party

R V Brewer is the controlling party of the company.



Page 36