Company registration number 02760943 (England and Wales)
Gallagher Investments Limited
Annual Report and Financial Statements
For the year ended 30 April 2024
Gallagher Investments Limited
Contents
Page
Company information
1
Strategic report
2 - 3
Directors' report
4 - 7
Independent auditor's report
8 - 10
Group statement of income
11
Group statement of comprehensive income
12
Group balance sheet
13 - 14
Company balance sheet
15
Group statement of changes in equity
16
Company statement of changes in equity
17
Group statement of cash flows
18
Notes to the financial statements
19 - 41
Gallagher Investments Limited
Company Information
- 1 -
Directors
Mr C H Gallagher
Mr B J Gallagher
Mr D P Gallagher
Secretary
Mr D P Gallagher
Company number
02760943
Registered office
Pendragon House
65 London Road
St Albans
Herts
AL1 1LJ
Auditor
Gilberts Chartered Accountants
Pendragon House
65 London Road
St Albans
Hertfordshire
AL1 1LJ
Gallagher Investments Limited
Strategic Report
For the year ended 30 April 2024
- 2 -

The directors present the strategic report for the year ended 30 April 2024.

Principal activities

The Group's principal activities are residential property development, plant hire and commercial property rental.

Review of business

The Group made a profit before tax for the year of £43.0 million compared to £88.4 million in the previous year. Net assets have increased from £592.5 million at the end of April 2023 to £616.8 million.

 

House building: Our house building operations completed 274 sales (UK 194, Ireland 74, Czechia 6) on a turnover of £101.2 million. The comparative figures were 549 sales (UK 452, Ireland 24, Czechia 73) on a turnover of £187.7 million for the previous year. Trading in the UK continues to be weak which affected the reported year and is further impacting the current trading year.

 

Plant hire: Our plant hire division reported operating profit of £22.0 million on a turnover of £80.6 million. This compared with operating profit of £25.3 million on a turnover of £83.7 million in the previous year. These figures include the results of the Australian subsidiaries since they were acquired in September 2023.

 

Property rental: Rental income during the year was £0.2 million compared to £1.2 million in the previous year.

Principal risks and uncertainties

The principal risks and uncertainties faced by the Group include the following:

 

Future developments

The directors are of the view that the current economic forecast and increased cost pressures will no doubt impact the performance of the company in the current year. This having been said, the company is in a strong financial position and the directors believe the management are able to deal with any uncertainties that may arise in the future.

Key performance indicators

Measurement of the Group's performance is consistently applied and control is exercised by the Group's management. The Group uses the following key performance indicators to evaluate its performance:

 

Gallagher Investments Limited
Strategic Report (Continued)
For the year ended 30 April 2024
- 3 -
s172 Statement

The Board of Directors aims to drive growth and employ a business model that balances the demands of the Company’s main customers with the principal risks and uncertainties faced by the businesses in which they operate.

 

The Board of Directors recognises that the long-term success of the Company relies upon good relations with its various stakeholders including suppliers, subcontractors and customers and, with this in mind, regularly reviews its strategy and action plans to ensure expectations are being met.

 

Details of the company's commitment to its employees are included in the Directors' Report.

 

The Board of Directors is committed to operating safely in all environments and consequently has detailed and rigorous health and safety policies and procedures in place which staff are required to follow at all depots.

 

The Board of Directors pays particular attention to all relevant environmental legislation and requests that the Company’s employees are aware of their responsibilities in this regard. The Company supports various charities and local events.

This report was approved by the board of directors and signed on behalf of the board by:

Mr C H Gallagher
Director
24 April 2025
Gallagher Investments Limited
Directors' Report
For the year ended 30 April 2024
- 4 -

The directors present their annual report and financial statements for the year ended 30 April 2024.

Principal activities

The Group's principal activities are residential property development, plant hire and commercial property rental.

Results and dividends

The results for the year are set out on page 11.

No ordinary dividends were paid by the company. The directors do not recommend payment of a future dividend.

Directors

The directors who held office during the year were as follows:

Mr C H Gallagher
Mr B J Gallagher
Mr D P Gallagher
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The continuing Company policy with regard to employee consultation and involvement is that there should be effective communication with all employees who, subject to practical and commercial considerations, should be consulted on and involved in decisions that affect their current jobs and future prospects. The achievement of this policy has to be treated flexibly in accordance with the varying circumstances and need in the Company but, in all cases, the emphasis is on communication at the local level.

Auditor

The auditor, Gilberts Chartered Accountants, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

Gallagher Investments Limited is required to report on its Green House Gas (GHG) emissions under the Environmental Reporting Guidelines (March 2019). The directors are committed to reduce GHG emissions and the report for all qualifying companies for the year to 30 April 2024 is below.

 

The qualifying companies are Charles Wilson Engineers Limited and Abbey Developments Limited (2023 only). Both companies operate exclusively in the United Kingdom. Australian Boom & Scissor Lift Pty Ltd and ABS Trading (NSW) Pty Ltd are trading companies in Australia however they have been excluded for the purposes of reporting energy consumption.

 

 

Gallagher Investments Limited
Directors' Report (Continued)
For the year ended 30 April 2024
- 5 -
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
1,111,814
1,639,911
- Electricity purchased
1,245,810
1,056,410
- Fuel consumed for transport
11,910,980
13,050,252
14,268,604
15,746,573
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
202.94
209.41
- Fuel consumed for owned transport
2,836.70
3,343.21
3,039.64
3,552.62
Scope 2 - indirect emissions
- Electricity purchased
255.30
324.16
Total gross emissions
3,294.94
3,876.78
Intensity ratio
Tonnes CO2e per £m turnover
41.77
14.91
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2023 UK Government’s Conversion Factors for Company Reporting.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £m turnover. This ratio has been used as the trades in the group are not comparable using another metric.

Measures taken to improve energy efficiency

For Charles Wilson Engineers Limited, the company continues to adopt low emission technologies where possible. All company cars purchased are either fully electric or electric hybrids. The size and range of its electric plant fleet has further increased to reduce the emissions from downstream operations by customers. Other machines purchased have Tier 5 engines to reduce particulate matter and the ongoing replacement of fluorescent lighting with LED lighting is reducing electricity consumption. Solar panel output is continually being assessed to guide behavioural changes in order to utilise the energy more effectively.

Gallagher Investments Limited
Directors' Report (Continued)
For the year ended 30 April 2024
- 6 -
Methodology

The calculations of GHG from the data are straight forward and consistent with The Greenhouse Gas Protocol and meets the criteria of:

 

Emissions from use of electricity are based on metered consumption of mains supplied electricity in kWh.

 

Emissions from combustion of gas are based on metered consumption of mains supplied gas in kWh.

 

Emissions from combustion of fuel for transport purposes are based on recorded litres of fuel purchased.

 

In each case the 2023 UK Government GHG conversion factors for companies reporting have been used to calculate kg CO2 equivalent.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Gallagher Investments Limited
Directors' Report (Continued)
For the year ended 30 April 2024
- 7 -
On behalf of the board
Mr C H Gallagher
Mr B J Gallagher
Director
Director
Mr D P Gallagher
Director
24 April 2025
Gallagher Investments Limited
Independent Auditor's Report
To the Members of Gallagher Investments Limited
- 8 -
Opinion

We have audited the financial statements of Gallagher Investments Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Gallagher Investments Limited
Independent Auditor's Report (Continued)
To the Members of Gallagher Investments Limited
- 9 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Explanations as to what extent the audit was consdiered capable of detecting irregularities, including fraud
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. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the group. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed in our approach below:
We obtained an understanding of the legal and regulatory requirements applicable to the group and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council and UK taxation legislation.
We assessed the risk of material misstatement of the financial statements, including the 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. There are inherent limitations in the audit procedures noted above, 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.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance, miscellaneous receipts and payments testing, journal entry testing, analytical procedures and obtaining additional corroborative evidence as required. In doing so we evaluate whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
We recognise 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 or intentional misrepresentations, or through collusion.
We communicated relevant key laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud and non-compliance with laws and regulations throughout the audit.
Gallagher Investments Limited
Independent Auditor's Report (Continued)
To the Members of Gallagher Investments Limited
- 10 -
We did not identify any audit matters relating to irregularities, including fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Amanda Ruggles (Senior Statutory Auditor)
For and on behalf of Gilberts Chartered Accountants (Statutory Auditor)
Pendragon House
65 London Road
St Albans
Hertfordshire
AL1 1LJ
24 April 2025
Gallagher Investments Limited
Group Statement of Income
For the year ended 30 April 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
182,402,871
272,573,941
Cost of sales
(121,080,226)
(168,137,095)
Gross profit
61,322,645
104,436,846
Distribution costs
(1,499)
(47,000)
Administrative expenses
(30,481,252)
(24,299,329)
Other operating income
1,940,249
5,425,244
Operating profit
4
32,780,143
85,515,761
Interest receivable and similar income
8
12,657,537
3,894,723
Interest payable and similar expenses
9
(2,448,256)
(1,125,732)
Other gains on investments
10
(33,461)
83,428
Fair value gains/(losses) on investment propertie
13,144
8,576
Profit before taxation
42,969,107
88,376,756
Tax on profit
11
(10,473,619)
(15,604,886)
Profit for the financial year
32,495,488
72,771,870
Profit for the financial year is attributable to:
- Owners of the parent company
(6,595)
(7,253)
- Non-controlling interests
32,502,083
72,779,123
32,495,488
72,771,870
Gallagher Investments Limited
Group Statement of Comprehensive Income
For the year ended 30 April 2024
- 12 -
2024
2023
£
£
Profit for the year
32,495,488
72,771,870
Other comprehensive income
Actuarial gain on defined benefit pension schemes
1,007,000
2,382,750
Currency translation differences
(2,568,573)
(1,257,566)
Tax relating to other comprehensive income
(251,750)
(956,250)
Other comprehensive income/(loss) for the year
(1,813,323)
168,934
Total comprehensive income for the year
30,682,165
72,940,804
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(6,595)
(7,253)
- Non-controlling interests
30,688,760
72,948,057
30,682,165
72,940,804
Gallagher Investments Limited
Group Balance Sheet
As at 30 April 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
1,048,182
-
0
Tangible assets
13
148,248,391
132,587,750
Investment property
14
4,177,616
4,229,817
Investments
15
2,482
2,482
153,476,671
136,820,049
Current assets
Stocks
16
216,774,338
228,221,453
Debtors
17
82,490,673
81,292,537
Investments
18
100,195,073
128,921,948
Cash at bank and in hand
139,012,556
84,859,355
538,472,640
523,295,293
Creditors: amounts falling due within one year
19
(66,396,169)
(61,433,841)
Net current assets
472,076,471
461,861,452
Total assets less current liabilities
625,553,142
598,681,501
Creditors: amounts falling due after more than one year
20
(8,525,000)
(8,525,000)
Provisions for liabilities
Deferred tax liability
21
10,559,332
6,595,356
(10,559,332)
(6,595,356)
Net assets excluding pension liability
606,468,810
583,561,145
Defined benefit pension surplus
22
10,379,000
8,912,000
Net assets
616,847,810
592,473,145
Capital and reserves
Called up share capital
23
5,000,000
5,000,000
Distributable profit and loss reserves
(4,735,529)
(4,728,934)
Equity attributable to owners of the parent company
264,471
271,066
Non-controlling interests
616,583,339
592,202,079
616,847,810
592,473,145
Gallagher Investments Limited
Group Balance Sheet (Continued)
As at 30 April 2024
- 14 -
The financial statements were approved by the board of directors and authorised for issue on 24 April 2025 and are signed on its behalf by:
24 April 2025
Mr C H Gallagher
Mr B J Gallagher
Director
Director
Mr D P Gallagher
Director
Company registration number 02760943 (England and Wales)
Gallagher Investments Limited
Company Balance Sheet
As at 30 April 2024
30 April 2024
- 15 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
15
4,750,000
4,750,000
Current assets
Debtors
17
-
0
2,547
Cash at bank and in hand
218,670
222,718
218,670
225,265
Creditors: amounts falling due within one year
19
(4,200)
(4,200)
Net current assets
(214,470)
221,065
Net assets
4,964,470
4,971,065
Capital and reserves
Called up share capital
23
5,000,000
5,000,000
Distributable profit and loss reserves
(35,530)
(28,935)
Total equity
4,964,470
4,971,065

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £6,595 (2023 - £7,254 loss).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 24 April 2025 and are signed on its behalf by:
24 April 2025
Mr C H Gallagher
Mr B J Gallagher
Director
Director
Mr D P Gallagher
Director
Company registration number 02760943 (England and Wales)
Gallagher Investments Limited
Group Statement of Changes in Equity
For the year ended 30 April 2024
- 16 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 May 2022
5,000,000
(4,721,681)
278,319
517,496,522
517,774,841
Year ended 30 April 2023:
Profit for the year
-
(7,253)
(7,253)
72,779,123
72,771,870
Other comprehensive income:
Amounts attributable to non-controlling interests
-
-
-
168,934
168,934
Total comprehensive income for the year
-
(7,253)
(7,253)
72,948,057
72,940,804
Dividends
-
-
-
(5,407,500)
(5,407,500)
Disposal of shares in subsidiary to non-controlling interest
-
-
-
7,165,000
7,165,000
Balance at 30 April 2023
5,000,000
(4,728,934)
271,066
592,202,079
592,473,145
Year ended 30 April 2024:
Profit for the year
-
(6,595)
(6,595)
32,502,083
32,495,488
Other comprehensive income:
Amounts attributable to non-controlling interests
-
-
-
(1,813,323)
(1,813,323)
Total comprehensive income for the year
-
(6,595)
(6,595)
30,688,760
30,682,165
Dividends
-
-
-
(6,307,500)
(6,307,500)
Balance at 30 April 2024
5,000,000
(4,735,529)
264,471
616,583,339
616,847,810
Gallagher Investments Limited
Company Statement of Changes in Equity
For the year ended 30 April 2024
- 17 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 May 2022
5,000,000
(21,682)
4,978,318
Year ended 30 April 2023:
Loss and total comprehensive income for the year
-
(7,253)
(7,253)
Balance at 30 April 2023
5,000,000
(28,935)
4,971,065
Year ended 30 April 2024:
Profit and total comprehensive income
-
(6,595)
(6,595)
Balance at 30 April 2024
5,000,000
(35,530)
4,964,470
Gallagher Investments Limited
Group Statement of Cash Flows
For the year ended 30 April 2024
- 18 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
58,629,277
66,466,516
Interest paid
(2,448,256)
(1,125,732)
Income taxes paid
(10,443,400)
(12,385,897)
Net cash inflow from operating activities
45,737,621
52,954,887
Investing activities
Purchase of business
(3,201,207)
-
Purchase of tangible fixed assets
(49,961,828)
(50,538,699)
Proceeds on disposal of tangible fixed assets
27,110,953
25,744,254
Purchase of investments
(100,195,073)
(126,937,448)
Proceeds on disposal of investments
132,000,000
2,000,000
Interest received
9,148,985
3,723,723
Net cash generated from/(used in) investing activities
14,901,830
(146,008,170)
Financing activities
Issue of preference shares
-
275,000
Disposal of shares in subsidiary to non-controlling interest
-
7,165,000
Dividends paid to non-controlling interests
(6,307,500)
(5,407,500)
Net cash (used in)/generated from financing activities
(6,307,500)
2,032,500
Net increase/(decrease) in cash and cash equivalents
54,331,951
(91,020,783)
Cash and cash equivalents at beginning of year
84,859,355
176,086,935
Effect of foreign exchange rates
(178,750)
(206,797)
Cash and cash equivalents at end of year
139,012,556
84,859,355
Gallagher Investments Limited
Notes to the Group Financial Statements
For the year ended 30 April 2024
- 19 -
1
Accounting policies
Company information

Gallagher Investments Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Pendragon House, 65 London Road, St Albans, Herts, AL1 1LJ.

 

The group consists of Gallagher Investments Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

The excess of the cost of a business acquisition over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Gallagher Investments Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 April 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Gallagher Investments Limited
Notes to the Group Financial Statements (Continued)
For the year ended 30 April 2024
1
Accounting policies
(Continued)
- 20 -
1.5
Turnover

Turnover on residential housing developments and the respective profits are recognised when the property is structurally complete and legally transferred to the purchaser.

 

Turnover from plant hire comprises charges to third parties, net of value added tax, for the hire, rental, and maintenance of construction plant, vehicles, tools and portable buildings. Turnover is recognised on a straight line basis over the period of the hire. Turnover from the delivery and collection of plant hire equipment is recognised when the delivery or collection has occurred. Additional turnover for wear and damage is recognised once the plant items have been returned and assessed by the Company.

 

Turnover from the sale of consumables, ancillaries, supplies and fuel is recognised at the time of delivery to or collection by the customer.

 

Turnover from rental of property is recognised on a straight line basis over the period of the lease term, net of value added tax.

1.6
Intangible fixed assets - goodwill

Goodwill arising on consolidation, representing the excess of the fair value of the consideration given over the fair values of the identifiable net assets acquired, is capitalised and amortised over the directors' estimate of its useful economic life. Negative goodwill is capitalised and amortised in the periods that the non-monetary assets acquired are realised. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years. Management believe the useful life to be greater than 10 years but are restricted by the maximum term as stated in FRS 102, para 19.23(a).

1.7
Tangible fixed assets

Group occupied properties, plant, equipment and motor vehicles are stated at cost or deemed cost (being the fair value at the transition date to FRS 102) net of depreciation and any provision for impairment.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold buildings
50 years
Plant and equipment
2 to 8 years
Motor vehicles
3 to 5 years

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Gallagher Investments Limited
Notes to the Group Financial Statements (Continued)
For the year ended 30 April 2024
1
Accounting policies
(Continued)
- 21 -
1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

Investments such as bonds and treasury stock are measured at amortised cost less impairment with the discount/premium written off over the term of the investment.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

 

Investments with a redemption date of less than 12 months are treated as current asset investments.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.11
Stocks

Building land is valued at the lower of cost and net realisable value less an appropriate proportion relating to plots sold in the case of estates in the course of development. Regular reviews are carried out to identify any impairment in the value of the land and any write down is recognised in the profit and loss account.

 

Work in progress relates to incomplete or unsold new properties and comprises direct labour and material costs. No profits are taken until houses are conveyed on legal completion to third parties.

 

Stocks of materials are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Gallagher Investments Limited
Notes to the Group Financial Statements (Continued)
For the year ended 30 April 2024
1
Accounting policies
(Continued)
- 22 -
1.12
Financial instruments

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

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

 

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present fair value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

 

Basic financial liabilities

Basic financial liabilities, which include trade and other payables and bank loans, are initially measured at transaction price and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present fair value of the future receipts discounted at a market rate of interest.

 

Preference shares, which result in fixed returns to the holder or are mandatorily redeemable on a specific date, are classified as liabilities and measured at cost less impairment. The dividends on these preference shares are recognised in the profit and loss account as interest expense.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are not taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Gallagher Investments Limited
Notes to the Group Financial Statements (Continued)
For the year ended 30 April 2024
1
Accounting policies
(Continued)
- 23 -
1.15
Employee benefits

The Group operates a defined benefit pension scheme, which requires contributions to be made to a separately administered fund. The UK scheme was closed to new entrants on 1 January 2001 from which time membership of a defined contribution plan is available.

 

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The liabilities and costs associated with the Group’s defined benefit pension schemes (both funded and unfunded) are assessed on the basis of the projected unit credit method by professionally qualified actuaries and are arrived at using actuarial assumptions based on market expectations at the balance sheet date. The discount rates employed in determining the present value of the schemes’ liabilities are determined by reference to market yields at the balance sheet date on high-quality corporate bonds of a currency and term consistent with the currency and term of the associated post-employment benefit obligations. The defined benefit asset comprises the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of the plan assets out of which the obligations are to be settled.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Gallagher Investments Limited
Notes to the Group Financial Statements (Continued)
For the year ended 30 April 2024
- 24 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Stock valuation

The Group measures stock and work in progress at the lower of cost and net realisable value and assesses whether there is an indication of impairment. If any indication exists the Group makes an estimate of the recoverable amount for the stock and work in progress. In determining net realisable value an appropriate assessment is make based on external valuations and the overall return on development sites.

Employee benefits

The assumptions underlying the actuarial valuations are updated annually based on current economic conditions and any changes to the terms and conditions of the pension plans. Whilst management believe that the assumptions used are appropriate, difference in actuarial experience or changes in assumptions may affect the obligations and expenses recognised in future accounting periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation of plant, property and equipment

The Group's balance sheet comprises a significant amount representing the value of tangible fixed assets held which is dependent upon the rates of depreciation charged. To calculate depreciation assumptions are made concerning the useful lives and residual values of the assets concerned. Useful lives are calculated using assumptions about factors including maintenance costs, product lifecycles, and technological innovation. Residual values depend on on assumptions including future market conditions, the remaining life of the asset, and projected disposal values. The specific depreciation rates used can be found in these accounting policies.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Residential housing development
101,241,655
187,652,079
Plant hire
80,651,418
83,761,151
Property rental
509,798
1,160,711
182,402,871
272,573,941
Gallagher Investments Limited
Notes to the Group Financial Statements (Continued)
For the year ended 30 April 2024
3
Turnover and other revenue
(Continued)
- 25 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
157,436,073
249,099,112
Ireland
22,141,511
5,731,058
Czech Republic
1,048,603
17,743,771
Australia
1,776,684
-
182,402,871
272,573,941
2024
2023
£
£
Other revenue
Interest income
9,594,985
3,894,723
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
2,501,022
(2,526,114)
Depreciation of owned tangible fixed assets
28,874,721
30,363,312
Profit on disposal of tangible fixed assets
(21,726,589)
(20,876,838)
(Profit)/loss on disposal of investment property
-
0
1,007,039
Amortisation of intangible assets
116,464
-
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
8,300
5,600
Audit of the financial statements of the company's subsidiaries
78,900
75,500
87,200
81,100
For other services
All other non-audit services
118,732
138,025
For services in respect of associated pension schemes
Audit-related assurance services
59,389
93,585
All other non-audit services
6,027
-
65,416
93,585
Gallagher Investments Limited
Notes to the Group Financial Statements (Continued)
For the year ended 30 April 2024
- 26 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Residential property development
14
106
-
-
Plant hire
386
390
-
-
Total
400
496
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
17,046,509
24,749,660
-
0
-
0
Social security costs
2,647,180
2,901,555
-
-
Pension costs
707,553
1,001,188
-
0
-
0
20,401,242
28,652,403
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
1,490,436
1,379,073
Company pension contributions to defined contribution schemes
279,347
271,080
1,769,783
1,650,153

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2023 - 1).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
1,432,519
1,379,073
Company pension contributions to defined contribution schemes
279,347
271,080
Gallagher Investments Limited
Notes to the Group Financial Statements (Continued)
For the year ended 30 April 2024
- 27 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
4,073,098
3,188,158
Net interest on the defined benefit asset
446,000
171,000
Interest receivable from connected companies
3,419,403
-
0
Other interest income
1,656,484
535,565
Total interest revenue
9,594,985
3,894,723
Income from fixed asset investments
Income from other fixed asset investments
3,062,552
-
0
12,657,537
3,894,723
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
8,107
527
Dividends on redeemable preference shares not classified as equity
426,250
412,500
Other interest on financial liabilities
2,008,313
712,705
2,442,670
1,125,732
Other finance costs:
Other interest
5,586
-
Total finance costs
2,448,256
1,125,732
10
Amounts written off investments
2024
2023
£
£
Changes in the fair value of investment properties
(33,461)
83,428
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
6,382,119
12,709,454
Foreign current tax on profits for the current period
25,263
-
0
Total current tax
6,407,382
12,709,454
Gallagher Investments Limited
Notes to the Group Financial Statements (Continued)
For the year ended 30 April 2024
11
Taxation
2024
2023
£
£
(Continued)
- 28 -
Deferred tax
Origination and reversal of timing differences
4,066,237
2,895,432
Total tax charge
10,473,619
15,604,886

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
42,969,107
88,376,756
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.49%)
10,742,277
17,224,630
Tax effect of expenses that are not deductible in determining taxable profit
427,056
112,846
Adjustments in respect of prior years
(75,503)
147,007
Permanent capital allowances in excess of depreciation
(4,027,997)
(3,274,593)
Effect of overseas tax rates
23,555
-
0
Dividend income
(327)
252
Capital gains
-
0
(966,397)
Other adjustments
(544,295)
421,959
Effect of other tax rates
(137,384)
-
0
Deferred tax
4,066,237
1,939,182
Taxation charge
10,473,619
15,604,886

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Actuarial differences recognised as other comprehensive income
251,750
956,250
Gallagher Investments Limited
Notes to the Group Financial Statements (Continued)
For the year ended 30 April 2024
- 29 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 May 2023
4,700,000
Additions - business combinations
1,164,646
At 30 April 2024
5,864,646
Amortisation and impairment
At 1 May 2023
4,700,000
Amortisation charged for the year
116,464
At 30 April 2024
4,816,464
Carrying amount
At 30 April 2024
1,048,182
At 30 April 2023
-
0
The company had no intangible fixed assets at 30 April 2024 or 30 April 2023.
Gallagher Investments Limited
Notes to the Group Financial Statements (Continued)
For the year ended 30 April 2024
- 30 -
13
Tangible fixed assets
Group
Freehold buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 May 2023
26,071,800
232,404,085
12,010,000
270,485,885
Additions
3,836,209
44,177,989
1,947,630
49,961,828
Disposals
(1,487,630)
(44,493,644)
(1,887,931)
(47,869,205)
Transfers from investments
52,083
3,981,935
452,899
4,486,917
Exchange adjustments
(11,665)
(13,501)
(49,657)
(74,823)
At 30 April 2024
28,460,797
236,056,864
12,472,941
276,990,602
Depreciation and impairment
At 1 May 2023
3,047,536
128,545,476
6,305,123
137,898,135
Depreciation charged in the year
218,110
26,750,273
1,906,338
28,874,721
Eliminated in respect of disposals
-
0
(38,787,648)
(1,667,719)
(40,455,367)
Transfers
52,083
2,248,516
156,844
2,457,443
Exchange adjustments
(19,302)
43,931
(57,350)
(32,721)
At 30 April 2024
3,298,427
118,800,548
6,643,236
128,742,211
Carrying amount
At 30 April 2024
25,162,370
117,256,316
5,829,705
148,248,391
At 30 April 2023
23,024,264
103,858,609
5,704,877
132,587,750
The company had no tangible fixed assets at 30 April 2024 or 30 April 2023.

Under the transitional arrangements of FRS 102, freehold properties previously revalued are treated as held at deemed cost.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

2024
2023
£
£
Group
Cost
24,233,836
21,788,277
Accumulated depreciation
(2,538,272)
(2,107,629)
Carrying value
21,695,564
19,680,648
Gallagher Investments Limited
Notes to the Group Financial Statements (Continued)
For the year ended 30 April 2024
- 31 -
14
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 May 2023 and 30 April 2024
4,229,817
-
Net gains or losses through fair value adjustments
13,144
-
Foreign currency adjustments
(65,345)
-
At 30 April 2024
4,177,616
-

Investment properties: Properties situated in Ireland were valued by Bagnell, Doyle, McMahon Chartered Surveyors on 30 April 2024 using rental yields. Properties situated in the UK were valued at 30 April 2022 by the directors or by Glenny Chartered Surveyors, on a rental yields basis considering comparable market information. The directors have considered the valuation of properties as at 30 April 2024 and are satisfied that the valuation as presented above represents the fair value of these properties at the year end.

If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Cost
4,703,963
4,703,963
-
-
Accumulated depreciation
-
-
-
-
Carrying amount
4,703,963
4,703,963
-
-
15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
28
-
0
-
0
4,750,000
4,750,000
Other investments
2,482
2,482
-
0
-
0
2,482
2,482
4,750,000
4,750,000

Listed investments included above:

Listed investments carrying amount
2,482
2,482
-
-
Gallagher Investments Limited
Notes to the Group Financial Statements (Continued)
For the year ended 30 April 2024
15
Fixed asset investments
(Continued)
- 32 -
Movements in fixed asset investments
Group
Investments other than loans
£
Cost or valuation
At 1 May 2023 and 30 April 2024
2,482
Carrying amount
At 30 April 2024
2,482
At 30 April 2023
2,482
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 1 May 2023 and 30 April 2024
4,750,000
Carrying amount
At 30 April 2024
4,750,000
At 30 April 2023
4,750,000
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Stock of materials
1,331,000
1,217,238
-
-
Work in progress
45,586,615
33,466,078
-
-
Building land
169,856,723
193,538,137
-
0
-
0
216,774,338
228,221,453
-
-
Gallagher Investments Limited
Notes to the Group Financial Statements (Continued)
For the year ended 30 April 2024
- 33 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
21,451,460
20,934,464
-
0
-
0
Corporation tax recoverable
5,962,746
1,467,767
-
0
2,547
Other debtors
51,086,205
55,623,667
-
0
-
0
Prepayments and accrued income
2,922,915
1,807,669
-
0
-
0
81,423,326
79,833,567
-
2,547
Amounts falling due after more than one year:
Deferred tax asset (note 21)
1,067,347
1,458,970
-
0
-
0
Total debtors
82,490,673
81,292,537
-
2,547
18
Current asset investments
Group
Company
2024
2023
2024
2023
£
£
£
£
Unlisted investments
100,195,073
128,921,948
-
-

Listed investments included above:

Market value if different from carrying amount
101,700,000
128,418,500
-
-
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
25,342,712
19,763,648
-
0
-
0
Corporation tax payable
270,125
-
0
-
0
-
0
Other taxation and social security
3,032,275
1,225,554
-
-
Other creditors
30,664,235
29,831,043
-
0
-
0
Accruals and deferred income
7,086,822
10,613,596
4,200
4,200
66,396,169
61,433,841
4,200
4,200
Gallagher Investments Limited
Notes to the Group Financial Statements (Continued)
For the year ended 30 April 2024
- 34 -
20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Preference shares
8,525,000
8,525,000
-
0
-
0

These shares are preference shares which are non-convertible but will be redeemed at par on 30th April 2028 unless the subsidiary or holder elects to redeem them earlier. The holders of preference shares are entitled to a fixed cumulative preferential dividend at the rate of 5% per annum payable on 30th April each year. On winding up they will receive the equivalent of the nominal amount paid up together with any arrears of the fixed dividend thereon. The preference shares do not carry any voting rights unless dividends are in arrears for more than 12 months.

Amounts included above which fall due after five years are as follows:
Payable other than by instalments
8,525,000
8,525,000
-
-
21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
7,964,582
4,367,356
-
-
Tax losses
-
-
1,067,347
1,458,970
Retirement benefit obligations
2,594,750
2,228,000
-
-
10,559,332
6,595,356
1,067,347
1,458,970
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 May 2023
5,136,386
-
Charge to profit or loss
4,103,849
-
Charge to other comprehensive income
251,750
-
Liability at 30 April 2024
9,491,985
-
Gallagher Investments Limited
Notes to the Group Financial Statements (Continued)
For the year ended 30 April 2024
- 35 -
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
688,370
914,188

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Defined benefit schemes

The Abbey Group operates one defined benefit scheme in the United Kingdom.

Valuation

The most recent annual actuarial valuation of the Abbey Group Limited Pension and Life Assurance Scheme was carried out as at 1 May 2020. The assumptions which have the most significant effect on the results of the valuations are those made in respect of the rate of return on investments and the rate of increase in salaries and pensions. The assumptions made were that the rates of return on investments would exceed the rates of salary increases by 3.10% per annum and that the rate of pension increase would be 3.25% per annum compound.

Other information

The costs of providing UK death in service benefits, which are insured under a separate agreement with Canada Life were paid in addition to the employer contributions.

 

As at 30 April 2024, the total value placed on the assets of the Group's pension plan for the purposes of the valuations amounted to £33.09 million and was sufficient to cover 145% of the scheme's liabilities. The Group will be making contributions into the scheme at a contribution rate of 25% from 30 April 2024. The employer expects to make contributions of £45,200 in the coming financial year.

 

With effect from 1 May 2006 pensionable salaries have been frozen and the scheme has contracted back into the State Earnings Related Pension Scheme.

2024
2023
Key assumptions
%
%
Discount rate
5.3
5.0
Expected rate of increase of pensions in payment
3.0
3.0
Expected rate of salary increases
0.0
0.0
Inflation assumption - retail price index
3.3
3.2
Inflation assumption - consumer price index
2.8
2.6
Gallagher Investments Limited
Notes to the Group Financial Statements (Continued)
For the year ended 30 April 2024
22
Retirement benefit schemes
(Continued)
- 36 -
Mortality assumptions
2024
2023

Assumed life expectations on retirement at age 65:

Years
Years
Current pensioners at 65
- Males
21.4
21.9
- Females
23.6
24.1
Future pensioners at 65
- Males
22.7
23.2
- Females
25.1
25.5

The amounts included in the balance sheet arising from obligations in respect of defined benefit plans are as follows:

2024
2023
Group
£
£
Present value of defined benefit obligations
22,712,000
24,672,000
Fair value of plan assets
(33,091,000)
(33,584,000)
Deficit/(surplus) in scheme
(10,379,000)
(8,912,000)
Group
2024
2023

Amounts recognised in the profit and loss account

£
£
Current service cost
70,000
87,000
Net interest on net defined benefit liability/(asset)
(446,000)
(171,000)
Total costs/(income)
(376,000)
(84,000)

As the defined benefit scheme in the UK was closed to new entrants on 1 January 2001 the age profile of the active members will rise significantly causing the current service cost to increase as the members of the scheme approach retirement.

 

From 25 June 2003 the UK pension scheme became self-administered. The assets previously held with an insurance company were transferred for cash to the Trustee Company who subsequently invested the funds in UK Government Bonds. The Trustee Company has an investment policy to look to maximise return based on an acceptable level of risk and therefore investment in other forms, such as stock exchange, may be potentially viable.

Gallagher Investments Limited
Notes to the Group Financial Statements (Continued)
For the year ended 30 April 2024
22
Retirement benefit schemes
(Continued)
- 37 -
Group
2024
2023

Amounts taken to other comprehensive income

£
£
Actual return on scheme assets
(432,000)
1,967,000
Less: calculated interest element
1,654,000
1,144,000
Return on scheme assets excluding interest income
1,222,000
3,111,000
Actuarial changes related to obligations
(2,229,000)
(6,288,000)
Total costs/(income)
(1,007,000)
(3,177,000)
Group
2024

Movements in the present value of defined benefit obligations

£
Liabilities at 1 May 2023
24,672,000
Current service cost
70,000
Benefits paid
(1,013,000)
Contributions from scheme members
4,000
Actuarial gains and losses
(2,229,000)
Interest cost
1,208,000
At 30 April 2024
22,712,000
Group
2024

Movements in the fair value of plan assets

£
Fair value of assets at 1 May 2023
33,584,000
Expected return on scheme assets
1,654,000
Actuarial losses/gains
(1,222,000)
Benefits paid
(1,013,000)
Contributions by the employer
84,000
Contributions by scheme members
4,000
At 30 April 2024
33,091,000
Gallagher Investments Limited
Notes to the Group Financial Statements (Continued)
For the year ended 30 April 2024
22
Retirement benefit schemes
(Continued)
- 38 -

Fair value of plan assets at the reporting period end

Group
2024
2023
£
£
Bonds (quoted UK government gilts)
17,384,000
15,561,000
Shares (quoted on stock exchange)
15,294,000
17,428,000
Cash and short term deposits
413,000
595,000
33,091,000
33,584,000
23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
5,000,000
5,000,000
5,000,000
5,000,000
24
Financial commitments, guarantees and contingent liabilities

There are contingent liabilities in respect of performance bonds totalling £4,079,764 (2023 - £2,969,311) which are not expected to give rise to a loss.

25
Operating lease commitments

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
30,000
30,000
-
-
Between two and five years
48,900
78,900
-
-
78,900
108,900
-
-
26
Related party transactions
Transactions with related parties

During the year the Group entered into transactions, in the ordinary course of business, with other related parties. Any intra group transactions have been eliminated on consolidations.

Gallagher Investments Limited
Notes to the Group Financial Statements (Continued)
For the year ended 30 April 2024
26
Related party transactions
(Continued)
- 39 -

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
Matthew Homes Limited
-
1,903,202

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Abbey Developments Limited
47,951,089
52,381,682
27
Controlling party

The directors consider the ultimate and immediate parent undertaking of the company Shrewsbury Holdings Limited, a company incorporated in Jersey, to be the controlling party.

28
Subsidiaries

The company directly owns:

 

100% of the issues 'A' share capital of Gallagher Holdings Limited, a holding company and is in the business of renting property.

Details of the company's trading indirect subsidiaries at 30 April 2024 are as follows:

Gallagher Investments Limited
Notes to the Group Financial Statements (Continued)
For the year ended 30 April 2024
28
Subsidiaries
(Continued)
- 40 -
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Matthew Investments Limited
United Kingdom
Commercial property developer
Ordinary
100.00
Charles Gallagher Limited
United Kingdom
Residential property developer
Ordinary
100.00
Matthew Properties Limited
United Kingdom
Property investment company
Ordinary
100.00
Charles Wilson Engineers Limited
United Kingdom
Plant hire
Ordinary
97.00
Frank P Taylor Limited
Ireland
Commercial property developer
Ordinary
100.00
Abbey Limited
Ireland
Holding company
Ordinary
100.00
Abbey Holdings Limited
Ireland
Holding company
Ordinary
100.00
Abbey Group Limited
United Kingdom
Holding company
Ordinary
100.00
Kingscroft Developments Limited
Ireland
Residential housing developer
Ordinary
100.00
M&J Engineers Limited
United Kingdom
Plant hire
Ordinary
100.00
Abbey Investment Limited
United Kingdom
Residential housing developer
Ordinary
100.00
Abbey sro
Czech Republic
Residential housing developer
Ordinary
100.00
Australian Boom & Scissor Lift Pty Ltd
Australia
Plant Hire
Plant hire
Ordinary
97.00
ABS Trading (NSW) Pty Ltd
Australia
Plant Hire
Plant hire
Ordinary
97.00
A.C.N 671 163 214 Pty Ltd
Australia
Holding company
Ordinary
97.00
CW Operations Pty Ltd
Australia
Holding company
Ordinary
97.00

The year end of all the subsidiaries noted above, with the exception of Frank P Taylor Limited, Australian Boom and Scissor Lift Pty, ABS Trading (NSW) Pty Ltd, A.C.N 671 163 215 Pty Ltd and CW Operations Pty Ltd, are coterminous with the company's year end. The most recent accounts for Frank P Taylor Limited are made up to 30 September 2023 which have been used in the consolidation. There is little trading activity in the company so it is highly unlikely to have a material impact. For the Australian companies, all four companies year ends are 30 June 2024, so these figures have been used in preparation of the consolidated accounts.

Gallagher Investments Limited
Notes to the Group Financial Statements (Continued)
For the year ended 30 April 2024
- 41 -
29
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
32,495,488
72,771,870
Adjustments for:
Taxation charged
10,473,619
15,604,886
Finance costs
2,448,256
1,125,732
Investment income
(12,657,537)
(3,894,723)
Gain on disposal of tangible fixed assets
(21,726,589)
(20,876,838)
(Gain)/loss on disposal of investment property
-
0
1,007,039
Fair value loss/(gain) on investment properties
20,317
(92,004)
Amortisation and impairment of intangible assets
116,464
-
Depreciation and impairment of tangible fixed assets
28,874,721
30,363,312
Pension scheme non-cash movement
(460,000)
(1,271,250)
Decrease in provisions
-
(1,384,522)
Other non cash items
-
(669,798)
Movements in working capital:
Decrease in stocks
11,447,115
38,473,647
Decrease/(increase) in debtors
2,905,220
(51,617,785)
Increase/(decrease) in creditors
4,692,203
(13,073,050)
Cash generated from operations
58,629,277
66,466,516
30
Analysis of changes in net debt - group
2024
£
Opening net funds/(debt)
Cash and cash equivalents
84,859,355
Preference shares treated as liabilities
(8,525,000)
76,334,355
Changes in net debt arising from:
Cash flows of the entity
54,331,951
Changes in market value and exchange rates
(178,750)
Closing net funds/(debt) as analysed below
130,487,556
Closing net funds/(debt)
Cash and cash equivalents
139,012,556
Preference shares treated as liabilities
(8,525,000)
130,487,556
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