Company registration number 14026488 (England and Wales)
I & D CAHILL LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
I & D CAHILL LTD
COMPANY INFORMATION
Directors
Mr I A Cahill
Mr D J Cahill
Company number
14026488
Registered office
The Station House
Station Road
Whalley
Clitheroe
Auditor
Barlow Andrews LLP
Carlyle House
78 Chorley New Road
Bolton
I & D CAHILL LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 33
I & D CAHILL LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -
The directors present the strategic report for the year ended 31 August 2024.
Review of the business
The key performance indicators for the group are as follows:
2024
2023
£
£
Turnover
33,661,189
23,215,765
Profit before taxation
3,391,641
2,058,884
Gross profit margin
20.76%
19.50%
Total equity
6,829,277
4,650,285
During the financial year, the group continued to expand the business. The group is now working almost exclusively with tier one contractors and consequently has spent time ensuring that it has the suitably qualified staffing in place to ensure that the projects being undertaken can be run efficiently and profitably. We consistently review our costs and quotations for work to enable us to try and maintain profitability.
Our balance sheet remains strong with net current assets in excess of £2 million. Cash balances have increased post year end and we have no liquidity issues. Total equity now exceeds £6.8 million.
We are satisfied with the overall result but mindful of keeping our focus for the coming year's activities.
Business strategy and future developments:
During the year our trading subsidiary has continued to reduce the number of smaller contracts they work on and are continuing to focus on larger projects with key select clients with whom they already have strong trustworthy relationships.
During the coming years the group intends to continue to increase sales within other divisions of the business such as small and special works which generally produce far higher profit margins than those in constructional steelwork. These small and special works are mainly secured under supply only terms therefore considerably reducing the cost of admin and contract administration.
The group continues at pace with its trainee programme with more trainees recently recruited.
The group is committed to keeping its employees safe.
The group is constantly reviewing its finances to ensure that it does not over-reach and put the business at risk.
I & D CAHILL LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
Principal risks and uncertainties
The group's activities expose it to financial risks, principally the risk of being sued for inadequate work or by an employee for injuries sustained at work. The group undertakes detailed training and has a detailed staff handbook advising employees what they should and should not do to minimise / mitigate the second risk. The group also has insurance for both elements of risk - which is reviewed each year to ensure that it is sufficient.
We identified further risks as follows:
(a) A potential slowing down of construction. The group is working strategically so that turnover is spread between multiple different sectors so that this risk is minimised as much as possible.
(b) Potential liquidation of customers (causing cash flow issues) and suppliers (causing supply chain issues). As regard to customers, the group undertakes credit control on a timely basis and is in constant dialogue with all customers to ensure we are paid within terms. The group continues to check on its suppliers to ensure that they have the supplies that the group will need with many products and materials being procured months in advance.
(c) Borrowing rate risk due to the level of bank borrowing undertaken to finance asset acquisitions and for general working capital. The group has a CBILS loan (Coronavirus Business Interruption Loan Scheme) at low fixed interest rates, which is repayable over 6 years, with the first 6 months interest paid by government. Hire purchase agreements are all fixed payment terms going forward, so the group is currently able to plan the repayment of all existing borrowings with a good degree of certainty around when repayments are due.
Mr I A Cahill
Director
24 March 2025
I & D CAHILL LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 August 2024.
Principal activities
The company acts as a holding company. Its subsidiary, Cahill Welding Services Ltd, has the principal activity of the supply and erection of structural steelwork.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £660,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr I A Cahill
Mr D J Cahill
Financial instruments
Price risk, credit risk, liquidity risk and cash flow risk
The credit and liquidity risk emanates from the group undertaking major projects with customers. The group has procedures in place to undertake credit rating checks of customers prior to commencement of a project and subsequent monitoring of progress payments, as and when applications are made, during the project to minimise this risk.
Research and development
The group has undertaken research and development in the year, which it is envisaged will help the group to run more efficiently and productively and thus lead to increased future profits. The costs have been expensed in the profit and loss account or capitalised within the balance sheet.
We have developed a site as a state of the art facility for a facet of the group's business which, we believe, is unique and will now enable us to undertake very specialised and more profitable work.
Auditor
The auditor, Barlow Andrews LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Strategic report
The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments.
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.
I & D CAHILL LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 4 -
On behalf of the board
Mr I A Cahill
Director
24 March 2025
I & D CAHILL LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
- 5 -
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 of the profit of the group 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 group’s transactions and disclose with reasonable accuracy at any time the financial position of the group 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
I & D CAHILL LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF I & D CAHILL LTD
- 6 -
Opinion
We have audited the financial statements of I & D Cahill Ltd (the 'parent company') and its subsidiary (the 'group') for the year ended 31 August 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:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 August 2024 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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:
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.
I & D CAHILL LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF I & D CAHILL LTD
- 7 -
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:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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, 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and taxation legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
I & D CAHILL LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF I & D CAHILL LTD
- 8 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities 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.
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 group'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 group and the parent company members as a body, for our audit work, for this report, or for the opinions we have formed.
Alison Cornes (Senior Statutory Auditor)
For and on behalf of Barlow Andrews LLP, Statutory Auditor
Carlyle House
78 Chorley New Road
Bolton
24 March 2025
I & D CAHILL LTD
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
33,661,189
23,215,765
Cost of sales
(26,671,546)
(18,688,863)
Gross profit
6,989,643
4,526,902
Administrative expenses
(3,398,715)
(2,351,748)
Other operating income
3,600
-
Operating profit
4
3,594,528
2,175,154
Interest payable and similar expenses
8
(202,887)
(116,270)
Profit before taxation
3,391,641
2,058,884
Tax on profit
9
(721,399)
(636,712)
Profit for the financial year
25
2,670,242
1,422,172
Profit for the financial year is all attributable to the owners of the parent company.
I & D CAHILL LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
2024
2023
£
£
Profit for the year
2,670,242
1,422,172
Other comprehensive income
Revaluation of tangible fixed assets
225,000
550,000
Tax relating to other comprehensive income
(56,250)
(137,500)
Other comprehensive income for the year
168,750
412,500
Total comprehensive income for the year
2,838,992
1,834,672
Total comprehensive income for the year is all attributable to the owners of the parent company.
I & D CAHILL LTD
GROUP BALANCE SHEET
AS AT
31 AUGUST 2024
31 August 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
342,549
461,899
Tangible assets
12
8,866,287
6,414,743
9,208,836
6,876,642
Current assets
Stocks
16
631,989
224,994
Debtors
17
9,402,234
7,294,397
Cash at bank and in hand
661,855
298,073
10,696,078
7,817,464
Creditors: amounts falling due within one year
18
(8,651,870)
(6,570,806)
Net current assets
2,044,208
1,246,658
Total assets less current liabilities
11,253,044
8,123,300
Creditors: amounts falling due after more than one year
19
(2,579,829)
(2,230,283)
Provisions for liabilities
Deferred tax liability
22
(1,843,938)
(1,242,732)
(1,843,938)
(1,242,732)
Net assets
6,829,277
4,650,285
Capital and reserves
Called up share capital
24
200
200
Revaluation reserve
25
581,250
412,500
Profit and loss reserves
25
6,247,827
4,237,585
Total equity
6,829,277
4,650,285
The financial statements were approved by the board of directors and authorised for issue on 24 March 2025 and are signed on its behalf by:
24 March 2025
Mr I A Cahill
Director
Company registration number 14026488 (England and Wales)
I & D CAHILL LTD
COMPANY BALANCE SHEET
AS AT 31 AUGUST 2024
31 August 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investment property
13
1,383,540
1,148,839
Investments
14
100
100
1,383,640
1,148,939
Current assets
Debtors
17
42,281
125,700
Cash at bank and in hand
29,184
9,760
71,465
135,460
Creditors: amounts falling due within one year
18
(148,230)
(208,485)
Net current liabilities
(76,765)
(73,025)
Total assets less current liabilities
1,306,875
1,075,914
Creditors: amounts falling due after more than one year
19
(437,917)
(465,208)
Provisions for liabilities
Deferred tax liability
22
(193,750)
(137,500)
(193,750)
(137,500)
Net assets
675,208
473,206
Capital and reserves
Called up share capital
24
200
200
Other reserves
25
581,250
412,500
Profit and loss reserves
25
93,758
60,506
Total equity
675,208
473,206
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £862,002 (2023 - £593,994 profit).
The financial statements were approved by the board of directors and authorised for issue on 24 March 2025 and are signed on its behalf by:
24 March 2025
Mr I A Cahill
Director
Company registration number 14026488 (England and Wales)
I & D CAHILL LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 September 2022
100
3,285,413
3,285,513
Year ended 31 August 2023:
Profit for the year
-
-
1,422,172
1,422,172
Other comprehensive income:
Revaluation of tangible fixed assets
-
550,000
-
550,000
Tax relating to other comprehensive income
-
(137,500)
(137,500)
Total comprehensive income
-
412,500
1,422,172
1,834,672
Issue of share capital
100
-
-
100
Dividends
10
-
-
(470,000)
(470,000)
Balance at 31 August 2023
200
412,500
4,237,585
4,650,285
Year ended 31 August 2024:
Profit for the year
-
-
2,670,242
2,670,242
Other comprehensive income:
Revaluation of tangible fixed assets
-
225,000
-
225,000
Tax relating to other comprehensive income
-
(56,250)
(56,250)
Total comprehensive income
-
168,750
2,670,242
2,838,992
Dividends
10
-
-
(660,000)
(660,000)
Balance at 31 August 2024
200
581,250
6,247,827
6,829,277
I & D CAHILL LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 14 -
Share capital
Other reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 September 2022
100
-
(988)
(888)
Year ended 31 August 2023:
Profit and total comprehensive income for the year
-
-
593,994
593,994
Issue of share capital
100
-
-
100
Dividends
10
-
-
(120,000)
(120,000)
Transfers
-
412,500
(412,500)
-
Balance at 31 August 2023
200
412,500
60,506
473,206
Year ended 31 August 2024:
Profit and total comprehensive income
-
-
862,002
862,002
Dividends
10
-
-
(660,000)
(660,000)
Transfers
-
168,750
(168,750)
-
Balance at 31 August 2024
200
581,250
93,758
675,208
I & D CAHILL LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
3,722,234
2,184,206
Interest paid
(202,887)
(116,270)
Income taxes paid
(119)
(34,503)
Net cash inflow from operating activities
3,519,228
2,033,433
Investing activities
Purchase of tangible fixed assets
(1,755,944)
(1,799,126)
Proceeds from disposal of tangible fixed assets
43,841
19,700
Purchase of investment property
-
(543,589)
Repayment of loans
(90,962)
-
Net cash used in investing activities
(1,803,065)
(2,323,015)
Financing activities
Proceeds from issue of shares
-
100
Repayment of borrowings
(93,118)
(90,934)
Proceeds from new bank loans
-
507,500
Repayment of bank loans
(80,765)
(45,454)
Payment of finance leases obligations
(518,498)
(459,678)
Dividends paid to equity shareholders
(660,000)
(470,000)
Net cash used in financing activities
(1,352,381)
(558,466)
Net increase/(decrease) in cash and cash equivalents
363,782
(848,048)
Cash and cash equivalents at beginning of year
298,073
1,146,121
Cash and cash equivalents at end of year
661,855
298,073
I & D CAHILL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 16 -
1
Accounting policies
Company information
I & D Cahill Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is The Station House, Station Road, Whalley, Clitheroe.
The group consists of I & D Cahill Ltd and its subsidiary, Cahill Welding Services Ltd.
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 the revaluation of freehold land and buildings at fair value. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
1.2
Prior period error
Land, previously included in the company accounts as a tangible fixed asset, has been reclassified as an investment property. This is due to the fact that the land is rented to the subsidiary undertaking and included within the financial statements at valuation. This has been a disclosure adjustment only and there has been no impact on the consolidated financial statements or the company's own balance sheet.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company I & D Cahill Ltd together with all entities controlled by the parent company (its subsidiary).
All financial statements are made up to 31 August 2024. Where necessary, adjustments are made to the financial statements of the subsidiary 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.
I & D CAHILL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 17 -
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.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Profit is recognised on long term contracts if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account, turnover and related costs as contract activity progresses. Turnover is calculated as the proportion of the contract value which is estimated to have been completed.
1.6
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred.
Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.7
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation 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:
Research and development costs
7 years straight line
1.8
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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 land and buildings
Over 30 years
Leasehold improvements
Straight line over the lease term
Plant and equipment
10% - 15% reducing balance / over the useful life of the asset
Fixtures and fittings
50% reducing balance
Motor vehicles
25% reducing balance
Freehold land and assets in the course of construction are 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.
I & D CAHILL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 18 -
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment value.
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss. Deferred tax is calculated on any revaluations made and is recognised through the statement of changes in equity.
1.9
Investment property
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.
1.10
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.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.11
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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
1.12
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials. Stocks are measured on a FIFO basis.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
I & D CAHILL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 19 -
1.13
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
1.14
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand.
1.15
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset 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 including transaction costs 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 value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
I & D CAHILL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 20 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.16
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.
1.17
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 never 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. Such liabilities are not recognised if the timing difference arises from the initial recognition of other liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.18
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the balance sheet.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.19
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
I & D CAHILL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 21 -
1.20
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
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.
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.
Amounts recoverable on long term contracts
Profit on long term contracts is recognised in the profit or loss account based on the amount of chargeable work carried out by the end of the financial period less amounts already invoiced to the customer. A level of judgement is applied in assessing the likely overall outcome of the project.
Residual life of assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation and maintenance programmes are taken into account. Residual value estimates consider issues such as future market conditions, the remaining life of the assets and projected disposal values.
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Contract income
33,661,189
23,215,765
I & D CAHILL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
3
Turnover
(Continued)
- 22 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
33,661,189
23,215,765
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Research and development costs
183,549
160,549
Depreciation of owned tangible fixed assets
304,852
168,129
Depreciation of tangible fixed assets held under finance leases
418,303
159,057
Profit on disposal of tangible fixed assets
(1,848)
(10,757)
Amortisation of intangible assets
119,350
119,349
Operating lease charges
195,102
232,799
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
8,000
8,000
Audit of the financial statements of the company's subsidiaries
18,000
16,275
26,000
24,275
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
Production
101
79
-
-
Administration and support
6
10
2
2
Sales
6
6
-
-
Total
113
95
2
2
I & D CAHILL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
6
Employees
(Continued)
- 23 -
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
5,048,418
3,848,179
Social security costs
543,097
467,947
-
-
Pension costs
237,814
102,339
5,829,329
4,418,465
During the year, the trading subsidiary, Cahill Welding Limited, capitalised wages totalling £101,799 (2023: £213,315).
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
36,600
36,600
Company pension contributions to defined contribution schemes
128,302
6,864
164,902
43,464
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounts to 2 (2023 - 2).
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
76,570
48,325
Interest on finance leases and hire purchase contracts
124,554
50,977
Other interest
1,763
16,968
Total finance costs
202,887
116,270
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
176,443
119
Adjustments in respect of prior periods
58,823
Total current tax
176,443
58,942
I & D CAHILL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
9
Taxation
2024
2023
£
£
(Continued)
- 24 -
Deferred tax
Origination and reversal of timing differences
544,956
577,770
Total tax charge
721,399
636,712
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
3,391,641
2,058,884
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
847,910
391,188
Tax effect of expenses that are not deductible in determining taxable profit
879
7,970
Tax effect of utilisation of tax losses not previously recognised
(107,156)
(116,068)
Permanent capital allowances in excess of depreciation
71,408
328,828
Research and development tax credit
(91,642)
(34,029)
Under/(over) provided in prior years
58,823
Taxation charge
721,399
636,712
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:
Revaluation of property
56,250
137,500
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
660,000
470,000
Total dividends payable of the group amounted to £660,000, paid directly to the shareholders of the group.
I & D CAHILL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 25 -
11
Intangible fixed assets
Group
Research and development costs
£
Cost
At 1 September 2023 and 31 August 2024
839,766
Amortisation and impairment
At 1 September 2023
377,867
Amortisation charged for the year
119,350
At 31 August 2024
497,217
Carrying amount
At 31 August 2024
342,549
At 31 August 2023
461,899
The company had no intangible fixed assets at 31 August 2024 or 31 August 2023.
I & D CAHILL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 26 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Assets under construction
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 September 2023
1,148,839
161,363
1,858,452
3,565,705
22,700
931,886
7,688,945
Additions
9,701
1,222,386
1,345,682
51,964
361,959
2,991,692
Disposals
(41,000)
(94,365)
(135,365)
Revaluation
225,000
225,000
Transfers
3,080,838
(3,080,838)
At 31 August 2024
4,464,378
161,363
4,870,387
74,664
1,199,480
10,770,272
Depreciation and impairment
At 1 September 2023
47,804
937,123
11,376
277,899
1,274,202
Depreciation charged in the year
73,496
4,424
416,565
17,230
211,440
723,155
Eliminated in respect of disposals
(10,437)
(82,935)
(93,372)
At 31 August 2024
73,496
52,228
1,343,251
28,606
406,404
1,903,985
Carrying amount
At 31 August 2024
4,390,882
109,135
3,527,136
46,058
793,076
8,866,287
At 31 August 2023
1,148,839
113,559
1,858,452
2,628,582
11,324
653,987
5,265,904
The company had no tangible fixed assets at 31 August 2024 or 31 August 2023.
I & D CAHILL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 27 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
2,597,570
1,797,603
Motor vehicles
544,585
461,717
3,142,155
2,259,320
-
-
The fair value of freehold land and buildings has been arrived at on the basis of a valuation carried out at 12 April 2024 by Symonds and Sampson LLP, who are not connected with the group. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Freehold land and buildings - £3,689,378 (2023:£598,839).
13
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 September 2023
-
1,148,839
Additions through external acquisition
-
9,701
Net gains or losses through fair value adjustments
-
225,000
At 31 August 2024
-
1,383,540
The fair value of land has been arrived at on the basis of a valuation carried out at 12 April 2024 by Symonds and Sampson LLP, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
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
-
-
608,540
598,839
Accumulated depreciation
-
-
-
-
Carrying amount
-
-
608,540
598,839
I & D CAHILL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 28 -
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
100
100
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 September 2023 and 31 August 2024
100
Carrying amount
At 31 August 2024
100
At 31 August 2023
100
15
Subsidiaries
Details of the company's subsidiaries at 31 August 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Cahill Welding Services Ltd
5 & 6 The Saw Mills, Middlemarsh, Sherborne, Dorset
Ordinary
100.00
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
631,989
224,994
-
-
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
791,521
1,934,315
Gross amounts owed by contract customers
8,094,395
4,523,320
Other debtors
475,410
814,329
42,281
111,117
Prepayments and accrued income
40,908
22,433
14,583
9,402,234
7,294,397
42,281
125,700
I & D CAHILL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 29 -
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
20
79,728
87,747
36,302
42,292
Obligations under finance leases
21
613,573
441,110
Other borrowings
20
145,586
116,209
Trade creditors
6,483,229
5,388,625
Amounts owed to group undertakings
46,845
162,443
Corporation tax payable
176,443
119
31,070
119
Other taxation and social security
192,136
131,698
15,700
-
Other creditors
382,306
49,217
Accruals and deferred income
578,869
356,081
18,313
3,631
8,651,870
6,570,806
148,230
208,485
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
468,220
540,966
437,917
465,208
Obligations under finance leases
21
1,963,834
1,419,047
Other borrowings
20
147,775
270,270
2,579,829
2,230,283
437,917
465,208
Amounts included above which fall due after five years are as follows:
Payable by instalments
526,558
579,043
256,628
308,017
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
547,948
628,713
474,219
507,500
Other loans
293,361
386,479
841,309
1,015,192
474,219
507,500
Payable within one year
225,314
203,956
36,302
42,292
Payable after one year
615,995
811,236
437,917
465,208
I & D CAHILL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
20
Loans and overdrafts
(Continued)
- 30 -
Security
The subsidiary company has an unlimited debenture dated 14 May 2010 which incorporates a fixed and floating charge over the assets of the subsidiary and a charge (taken out in 2012) over life policies with Scottish Widows on the lives of the directors of the company at that time.
An intercompany and set off agreement was made on 17 August 2023 between the group companies, I & D Cahill Ltd and Cahill Welding Services Ltd, and Lloyds Bank plc.
Bank borrowings
Coronavirus Business Interruption Loan has a nominal interest rate of 1.73%, and the final instalment is due on 25 August 2026. The carrying amount at year end is £73,729 (2023 - £121,213). This loan is 80% backed by government and no security was required to be given for this loan.
Lloyds Business Banking Loan has a variable interest rate being 3.47% in excess of the base rate and the final instalment of the loan is due on 8 August 2033. The carrying amount at the year end is £474,219 (2023: £507,500). The securities stated below have been provided to the bank:
An omnibus guarantee and set off agreement between the Bank and Cahill Welding Services Ltd and I & D Cahill Ltd together with such other security as the Bank may from time to time hold in respect of the debts and liabilities of any guarantor to the Bank.
A legal charge granted by I & D Cahill Ltd over the land at Area 15 Henstridge Airfield, Henstridge, Somerset, BA8 OTN.
An unlimited debenture granted by I & D Cahill Ltd in favour of the bank.
Other borrowings
Funding Circle CBILS has a fixed interest rate of 8.9%, and the final instalment is due on 24 February 2026. The carrying amount at year end is £104,782 (2023 - £167,282). The loan is 80% backed by government and no security was required to be given for the loan.
Market Finance has a fixed interest rate of 9.89%, and the final instalment is due on 26 April 2027. The carrying amount at year end is £103,381 (2023 - £135,244). No security has been given for the loan.
Conister Loan has a fixed interest rate of 8.78%, and the final instalment is due on 3 May 2027. The carrying amount at year end is £62,107 (2023 - £79,005). No security has been given for the loan.
21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
613,573
441,110
In two to five years
1,693,904
1,148,021
In over five years
269,930
271,026
2,577,407
1,860,157
-
-
Obligations under finance leases are secured on the assets which they relate to. Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
I & D CAHILL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 31 -
22
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
1,650,188
1,105,232
Revaluations
193,750
137,500
1,843,938
1,242,732
Liabilities
Liabilities
2024
2023
Company
£
£
Revaluations
193,750
137,500
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 September 2023
1,242,732
137,500
Charge to profit or loss
544,956
-
Charge to other comprehensive income
56,250
56,250
Liability at 31 August 2024
1,843,938
193,750
£1,650,188 of the deferred tax liability set out above is expected to reverse in future years and relates to accelerated capital allowances that are expected to mature within the same period. The deferred taxation balance in relation to the revaluation of fixed assets will reverse when the asset is sold.
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
237,814
102,339
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.
I & D CAHILL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 32 -
24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
200
200
200
200
The holders of ordinary shares are entitled to full voting rights and are entitled to one vote per share at meetings of the Company. All ordinary shares rank equally with regard to the Company's residual assets.
25
Reserves
Revaluation reserve and other reserve
The cumulative revaluation gains and losses in respect of land and buildings, net of deferred taxation.
Profit and loss reserves
Cumulative profit and loss net of distributions to owners.
26
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Group
Entities under common control
5,500
70,056
541,859
176,208
Other related parties
-
-
48,810
28,152
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2024
2023
£
£
Group
Entities under common control
240,000
-
Other related parties
2,691
366
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Entities under common control
22,100
30,782
I & D CAHILL LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 33 -
27
Directors' transactions
Dividends totalling £660,000 (2023: £470,000) were paid in the year in respect of shares held by the company's directors and their spouses.
During the year, related parties of the directors received total employee benefits of £18,971 (2023: £19,931).
At the year end there was a balance of £77,268 due from the directors (2023: £33,614 due to the directors). No interest has been charged and the loan is repayable on demand
28
Cash generated from group operations
2024
2023
£
£
Profit after taxation
2,670,242
1,422,172
Adjustments for:
Taxation charged
721,399
636,712
Finance costs
202,887
116,270
Gain on disposal of tangible fixed assets
(1,848)
(10,757)
Amortisation and impairment of intangible assets
119,350
119,349
Depreciation and impairment of tangible fixed assets
723,155
327,186
Movements in working capital:
(Increase)/decrease in stocks
(406,995)
32,492
Increase in debtors
(2,016,875)
(1,319,787)
Increase in creditors
1,710,919
860,569
Cash generated from operations
3,722,234
2,184,206
29
Analysis of changes in net debt - group
1 September 2023
Cash flows
New finance leases
31 August 2024
£
£
£
£
Cash at bank and in hand
298,073
363,782
-
661,855
Borrowings excluding overdrafts
(1,015,192)
173,883
-
(841,309)
Obligations under finance leases
(1,860,157)
518,498
(1,235,748)
(2,577,407)
(2,577,276)
1,056,163
(1,235,748)
(2,756,861)
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