Registered number:
FOR THE YEAR ENDED 30 SEPTEMBER 2024
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAGROCK GROUP LIMITED
COMPANY INFORMATION
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAGROCK GROUP LIMITED
CONTENTS
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAGROCK GROUP LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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.
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: 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.
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
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.
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.
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.
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.
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.
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 2006. He 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.
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).
The director who served during the year was:
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 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.
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
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.
.
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.
Future developments are included within the Looking forward section of the Strategic Report.
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
The auditors, Magee Gammon Corporate Limited, will 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.
Page 9
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAGROCK GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAGROCK GROUP LIMITED
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 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).
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.
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)
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 Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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.
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.
Page 11
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAGROCK GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MAGROCK GROUP LIMITED (CONTINUED)
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)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
Henwood House
Henwood
Kent
TN24 8DH
Page 13
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAGROCK GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Page 14
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAGROCK GROUP LIMITED
REGISTERED NUMBER: 10629127
CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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
Page 17
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAGROCK GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Page 18
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAGROCK GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Page 19
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAGROCK GROUP LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Page 20
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAGROCK GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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
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:
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)
Page 22
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAGROCK GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
Page 23
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAGROCK GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (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:
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.
Page 24
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAGROCK GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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)
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.
Page 26
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAGROCK GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
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.
Page 27
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAGROCK GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Page 28
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAGROCK GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Page 29
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAGROCK GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
11.Taxation (continued)
There were no factors that may affect future tax charges.
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 £
Page 30
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAGROCK GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Page 31
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAGROCK GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Page 32
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAGROCK GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Page 33
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAGROCK GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Hire purchase contracts are secured on the assets concerned.
Page 34
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAGROCK GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
Merger Reserve
Profit and loss account
Page 35
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAGROCK GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
As mentioned in the Strategic Report, the parent company, in some instances, provides guarantees for construction contracts in the subsidiary entity.
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.
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.
R V Brewer is the controlling party of the company.
Page 36
|