REGISTERED NUMBER: |
MCKELVEY CONSTRUCTION LIMITED |
Strategic Report, Directors' Report and |
Financial Statements for the Year Ended 31 July 2024 |
REGISTERED NUMBER: |
MCKELVEY CONSTRUCTION LIMITED |
Strategic Report, Directors' Report and |
Financial Statements for the Year Ended 31 July 2024 |
MCKELVEY CONSTRUCTION LIMITED (REGISTERED NUMBER: NI041815) |
Contents of the Financial Statements |
FOR THE YEAR ENDED 31 JULY 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Directors' Report | 3 |
Independent Auditors' Report | 5 |
Income Statement | 9 |
Statement of Financial Position | 10 |
Statement of Changes in Equity | 11 |
Notes to the Financial Statements | 12 |
MCKELVEY CONSTRUCTION LIMITED |
Company Information |
FOR THE YEAR ENDED 31 JULY 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Chartered Accountants and Statutory Auditors |
36-38 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
BANKERS: |
South Business Centre |
45 - 48 High Street Portadown |
Craigavon |
Co Armagh |
BT62 1LB |
MCKELVEY CONSTRUCTION LIMITED (REGISTERED NUMBER: NI041815) |
Strategic Report |
FOR THE YEAR ENDED 31 JULY 2024 |
The directors present their strategic report for the year ended 31 July 2024. |
REVIEW OF BUSINESS |
The principal activity of the company is that of civil engineering and building contracts. |
The directors are satisfied with the trading performance for the year ended 31 July 2024. The company returned a profit for the financial year of £819,657 (2023: £468,006) on a turnover base of £10,695,198 (2023: £19,734,249). The business remains in sound financial position at the year end with a net asset position of £3,061,398 (2023: £2,265,524). |
KEY PERFORMANCE INDICATORS |
The directors consider the key performance indicators are those that communicate the financial performance and strengths as a whole, being revenue, gross profit margin and profit before tax. |
The Key Performance Indicators during the year were as follows: |
2024 | 2023 |
£ | £ |
Revenue | 10,695,198 | 19,734,249 |
Gross profit margin | 16.2% | 5.2% |
Profit before tax | 1,123,027 | 572,950 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The main risks from the company's operations are competition and inflationary costs pressures. The directors review and agree policies for managing each of these risks and they are summarised below. |
COMPETITION RISK: |
Competition risk is managed through close attention to quality, customer service and sustainable markets. |
INFLATIONARY COST PRESSURES: |
Suppliers continue to be exposed to pressures created by Brexit, rising energy costs, supply chain disruption and the war in Ukraine. The business remains vigilant to the potential headwinds experiences by all aspects of the project cycle and seeks to mitigate these risks through commercial and risk management, on-going dialogue with key stakeholders, including customers and supply chains. |
FUTURE DEVELOPMENTS |
The company is committed to long term creation of shareholder value. The economic environment continues to evolve and is making a return to relative stability. In the coming years the company aims to increase revenue and profitability. The company will continue to develop relationships with customers and suppliers and generate new work where possible while remaining highly competitive. |
EMPLOYMENT POLICY |
McKelvey Construction Limited depends on the skills and commitments of its employees in order to achieve its objectives. Company staff at every level are encouraged to make their fullest possible contribution to the company's success. The company's selection, training, development and promotion policies ensure equal opportunities for all employees, regardless of gender, marital status, race, age or disability. |
ON BEHALF OF THE BOARD: |
MCKELVEY CONSTRUCTION LIMITED (REGISTERED NUMBER: NI041815) |
Directors' Report |
FOR THE YEAR ENDED 31 JULY 2024 |
The directors present their report with the financial statements of the Company for the year ended 31 July 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the Company in the year under review was that of civil engineering and building contracts. |
DIVIDENDS |
Interim dividends of £23,500 were paid during the year (2023: £42,000). The directors do not recommend payment of a final dividend. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 August 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
FINANCIAL RISK MANAGEMENT |
The company operations expose it to a variety of risks that include competition risk, economic risk, liquidity risk and interest rate cash flow risk. The company has in place a risk management programme that seeks to limit any adverse effects on the financial performance of the company. |
Competition Risk: |
Competition risk comes from other building contractors and developers. The directors manage this risk by ensuring a quality service is offered to all customers. |
Economic Risk: |
Economic risk is inherent in the industry in which the company operates. The directors manage this risk by ensuring relationships with suppliers and subcontractors are maintained with the company having long standing relationships with such entities. |
Liquidity Risk: |
The company generates sufficient cashflow to ensure it has adequate available funds for operations. |
Interest Rate Cash Flow Risk: |
The company has both interest bearing assets and interest bearing liabilities. Interest bearing assets include cash balances which earn interest as variable rates. Interest bearing liabilities include bank overdrafts. The directors monitor interest rates on an ongoing basis. |
DISCLOSURE IN THE STRATEGIC REPORT |
In accordance with Section 414C (11) of Companies Act 2006, the directors have elected to disclose details of the business review, principal risks and uncertainties, financial key performance indicators and future developments in the company's Strategic Report which would otherwise be required to be disclosed in the Directors' Report. |
MCKELVEY CONSTRUCTION LIMITED (REGISTERED NUMBER: NI041815) |
Directors' Report |
FOR THE YEAR ENDED 31 JULY 2024 |
DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the Company's auditors are aware of that information. |
AUDITORS |
The auditors, CavanaghKelly, have indicated their willingness to continue in office in accordance with the provision of Section 485 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
Independent Auditors' Report to the Members of |
McKelvey Construction Limited |
Opinion |
We have audited the financial statements of McKelvey Construction Limited (the 'Company') for the year ended 31 July 2024 which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the Company's affairs as at 31 July 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
Independent Auditors' Report to the Members of |
McKelvey Construction Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Directors' Responsibilities Statement set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. |
Independent Auditors' Report to the Members of |
McKelvey Construction Limited |
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 financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- | We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation; |
- | We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance; |
- | We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations; |
- | Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and |
- | Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override. |
The audit response to risks identified included: |
- | Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above; |
- | Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud; |
- | In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
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. |
Other matters which we are require to address |
The financial statements for the year ended 31 July 2023, forming the corresponding figures of the financial statements for the year ended 31 July 2024 are unaudited. |
Independent Auditors' Report to the Members of |
McKelvey Construction Limited |
Use of our report |
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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 and Statutory Auditors |
36-38 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
MCKELVEY CONSTRUCTION LIMITED (REGISTERED NUMBER: NI041815) |
Income Statement |
FOR THE YEAR ENDED 31 JULY 2024 |
2024 | 2023 |
Notes | £ | £ |
REVENUE | 4 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
1,083,697 | 565,366 |
Other operating income |
OPERATING PROFIT | 6 |
Finance income |
1,142,326 | 590,182 |
Finance costs | 7 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 8 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
MCKELVEY CONSTRUCTION LIMITED (REGISTERED NUMBER: NI041815) |
Statement of Financial Position |
31 JULY 2024 |
2024 | 2023 |
Notes | £ | £ |
NON-CURRENT ASSETS |
Property, plant and equipment | 10 |
Investments | 11 |
CURRENT ASSETS |
Inventories | 12 |
Receivables: amounts falling due within one year |
13 |
Cash at bank |
PAYABLES |
Amounts falling due within one year | 14 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PAYABLES |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
MCKELVEY CONSTRUCTION LIMITED (REGISTERED NUMBER: NI041815) |
Statement of Changes in Equity |
FOR THE YEAR ENDED 31 JULY 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 August 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 July 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 July 2024 |
MCKELVEY CONSTRUCTION LIMITED (REGISTERED NUMBER: NI041815) |
Notes to the Financial Statements |
FOR THE YEAR ENDED 31 JULY 2024 |
1. | STATUTORY INFORMATION |
McKelvey Construction Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared on a going concern basis and in accordance with the historical cost convention, as explained in the accounting policies below. Historical costs is generally based on the fair value of the consideration given in exchange for assets. The financial reporting framework that has been applied in their preparation is the Companies Act 2006 (the "Act") and FRS 102 "The Financial Reporting Standards applicable in the UK and Republic of Ireland" issued by the Financial Reporting Council. |
The financial statements are prepared in sterling, which is the functioning currency of the entity. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The entity satisfies the criteria of being a qualified entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of McKelvey Holdings Limited which can be obtained from Companies House. |
The company has taken advantage of the following exemptions: |
- from disclosing related party transactions that are wholly within the same group under paragraph 33.1 of the provisions of FRS 102, on the grounds that at 31 July 2024 the company was a wholly owned subsidiary of McKelvey Holdings Limited; |
- from preparing a Statement of cash flows on the basis that it is a qualifying entity and its cash flows are included in the cash flow statement in the consolidated financial statements of its parent company; and |
- from the financial instrument disclosures required under FRS 102 paragraphs 11.41(b) to 11.48(c) and 12.26 to 12.29, as the information is provided in the consolidated financial statement disclosures. |
Critical accounting judgements and key sources of estimation uncertainty |
Estimates and judgements are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
a) Critical judgements in applying the entity's accounting policies |
There are no critical judgements in applying the entity's accounting policies. |
b) Key accounting estimates and assumptions |
There are no critical accounting estimates and assumptions. |
Revenue |
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
MCKELVEY CONSTRUCTION LIMITED (REGISTERED NUMBER: NI041815) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 JULY 2024 |
3. | ACCOUNTING POLICIES - continued |
Property, plant and equipment and depreciation |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Inventories |
Inventories are valued at the lower of cost and net realisable value. Cost comprises expenditure incurred in the normal course of business in bringing inventories to their present location and condition. Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling. |
MCKELVEY CONSTRUCTION LIMITED (REGISTERED NUMBER: NI041815) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 JULY 2024 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. |
(i) Financial assets |
Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed to group and related parties and are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. |
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. |
If there is a decrease in the impairment loss arising from an event occuring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other payables, bank loans and overdrafts and amounts owed to group and related parties are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised at transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates. |
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or loss. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expired. |
(iii) Offsetting |
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on an net basis or to realise the asset and settle the liability simultaneously. |
MCKELVEY CONSTRUCTION LIMITED (REGISTERED NUMBER: NI041815) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 JULY 2024 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Distribution to equity holders |
Dividends and other distributions to the Company's shareholders are recognised as a liability in the financial statements in the period in which the dividend's and other distributions are approved by the Company's shareholders. These amounts are recognised in the statement of changes in equity. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Long term contracts |
Turnover on long term contracts is recognised according to the stage reached in the contract by reference to the value of work done. A prudent estimate of the profit attributable to work completed is recognised once the outcome of the contract can be assessed with reasonable certainty. The amount by which turnover exceeds payments on account is shown under debtors as amount recoverable on contracts. Where payments on account exceed turnover these are shown under creditors as payments received on account. |
Provisions |
Provisions are recognised when the company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefit will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the same value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as interest expense. |
Cash and cash equivalents |
Cash and cash equivalents includes cash in hand and deposits held at call with banks. |
Share capital |
Ordinary Shares are classified as equity. Incremental costs directly attributable to the issue of new |
ordinary shares are shown in equity as a deduction, net of tax, from the proceeds. |
4. | REVENUE |
The revenue and profit before taxation are attributable to the one principal activity of the Company. |
MCKELVEY CONSTRUCTION LIMITED (REGISTERED NUMBER: NI041815) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 JULY 2024 |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and Salaries | 939,884 | 1,043,383 |
Social Security costs | 95,398 | 79,638 |
Other pension costs | 55,955 | 52,965 |
1,091,237 | 1,175,986 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Production | 33 | 53 |
Administration | 2 | 2 |
35 | 55 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 45,056 | 45,202 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery |
Rent |
Depreciation - owned assets |
Loss/(profit) on disposal of fixed assets | ( |
) |
Foreign exchange differences | ( |
) |
7. | FINANCE COSTS |
2024 | 2023 |
£ | £ |
Bank interest |
Bank loan interest |
Hire purchase interest |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
MCKELVEY CONSTRUCTION LIMITED (REGISTERED NUMBER: NI041815) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 JULY 2024 |
8. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Adjustments to tax charge in respect of previous periods | ( |
) |
Non-relevant depreciation | 2,710 | - |
Impact of super-deduction | - | (4,263 | ) |
Impact of rate change | - | 3,644 |
Total tax charge | 303,370 | 104,944 |
9. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares shares of £1 each |
Final |
10. | PROPERTY, PLANT AND EQUIPMENT |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 August 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 July 2024 |
DEPRECIATION |
At 1 August 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 July 2024 |
NET BOOK VALUE |
At 31 July 2024 |
At 31 July 2023 |
MCKELVEY CONSTRUCTION LIMITED (REGISTERED NUMBER: NI041815) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 JULY 2024 |
11. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 August 2023 |
Disposals | ( |
) |
At 31 July 2024 |
NET BOOK VALUE |
At 31 July 2024 |
At 31 July 2023 |
12. | INVENTORIES |
2024 | 2023 |
£ | £ |
Inventories |
13. | RECEIVABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Amount recoverable on contract |
Other receivables | 2,300 | 2,300 |
Amounts owed by related parties |
Amounts owed by group undertakings are unsecured, interest free and repayable on demand. |
14. | PAYABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans (see note 16) |
Hire purchase contracts (see note 17) |
Trade payables |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
Other payables |
Directors' current accounts | 44,370 | 65,439 |
Accruals and deferred income |
Amounts owed to group undertakings are unsecured, interest free and repayable on demand. |
15. | PAYABLES: AMOUNTS FALLING DUE AFTER ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans (see note 16) |
Hire purchase contracts (see note 17) |
MCKELVEY CONSTRUCTION LIMITED (REGISTERED NUMBER: NI041815) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 JULY 2024 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
The bank loan above is secured by way of a floating charge over property held at Orr Park, Newtownstewart. |
17. | LEASING AGREEMENTS |
Minimum lease payments under hire purchase fall due as follows: |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
18. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | 124,471 | 77,430 |
Deferred tax |
£ |
Balance at 1 August 2023 |
Provided during year |
Balance at 31 July 2024 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary shares | £1 | 3 | 3 |
20. | RESERVES |
Retained |
earnings |
£ |
At 1 August 2023 |
Profit for the year |
Dividends | ( |
) |
At 31 July 2024 |
MCKELVEY CONSTRUCTION LIMITED (REGISTERED NUMBER: NI041815) |
Notes to the Financial Statements - continued |
FOR THE YEAR ENDED 31 JULY 2024 |
21. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with its parent company on the ground that it is a 100% owned subsidiary and included in the consolidated accounts of McKelvey Holdings Limited. |
The following related party transactions have been identified under the terms of FRS102. |
At the year end 31 July 2024 there were amounts owed by (31 July 2023: owed to) related parties of £32,832 (2023: owed to related parties £40,168). Related parties are deemed to be related by virtue of common directors and shareholders. |
The directors are regarded as related parties due to their position in the company. At 31 July 2024 the directors were owed £44,370 (2023: £65,439) by the company. This has been disclosed in note 13 to the accounts. Dividends totalling £23,500 (2023: £42,000) were issued to the directors during the year. Rental payments totalling £8,545 (2023 £4,245) were made during the year to the directors for rental of the company premise. |
22. | ULTIMATE CONTROLLING PARTY |
The immediate and ultimate parent undertaking is McKelvey Holdings Limited, a company incorporated in Northern Ireland. |
The smallest and largest group for which consolidated accounts are prepared including the results of this company is McKelvey Holdings Limited, a company incorporated in Northern Ireland. |
The company considers the McKelvey family to be the ultimate controlling parties. |