Company registration number 07669498 (England and Wales)
R&R MORCOM HOLDINGS LIMITED
GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
R&R MORCOM HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Independent auditor's report
3 - 5
Group statement of income and retained earnings
6
Group statement of financial position
8
Company statement of financial position
7
Group statement of cash flows
9
Notes to the financial statements
10 - 21
R&R MORCOM HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr R J Morcom
Mrs R M Morcom
Company number
07669498
Registered office
9 Tregarne Terrace
St Austell
Cornwall
PL25 4DD
Auditor
Phillips Frith LLP
9 Tregarne Terrace
St Austell
Cornwall
PL25 4DD
R&R MORCOM HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

Fair review of the business

For the trading company, 2024 ended up being on Par with other years. Again, the turnover has been maintained as planned, thank fully we achieved a good 2nd, 3rd, and 4th quarter that was exceptional to enable us to claw back a poor 1st quarter due to the weather as stated previously. We have had several tender enquiries in the second half of 2024, however very few have yet to be decided by the client. Those that have commenced have been awarded to our competition; My conclusion is that other contractors have been struggling to find work and have reduced their margins or rates in align with the small number of contracts available. From my discussions with the potential clients, it has become apparent that we need to be more competitive.

Looking ahead to 2025 Morcom Construction Limited has several contracts completing in the 2nd quarter, mainly the previously long-term contracts. We have and are continuing to price all enquiries, we have reduced are margins to reflect the current market which appears at present to be depressed. In my opinion we are in or about to enter a recession, all our suppliers are saying they have never been so quiet and that generally turnover is under the norm.

 

Principal risks and uncertainties

All of the tenders that we have returned are taking longer than normal to be decided, again I assume this is due to the lack of confidence in the market and the uncertainty of the impact that the war with Russia, Trump effect or Labour’s decision to increase minimum wages and National Insurance will affect the economy.

Expenditure again will be kept to a minimum this year due to the current climate. We have a good stock of plant to enable us to cover what plant is required for various contracts and I have no intentions of renewing any plant.

Employment appears to be stable at present, we have been successful in finding new apprentices which equates to approximately 5% of our current work force. We intend in adding the same number of apprentices yearly which will only but strengthen the future of the company.

Material prices are continuing to increase along with employment costs, these increases are going to have to be absorbed due to the current market conditions. As said, we have had to reduce our margins, with the above in mind I anticipate a lower profit margin that what we have ever experienced. Our investments return made in previous years will prove to be helpful to allow the company to remain strong in these uncertain times.

 

On behalf of the board

Mr R J Morcom
Director
28 April 2025
R&R MORCOM HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the company and group in the year under review continued to be that of building contractors.

Results and dividends

The results for the year are set out on page 6.

Ordinary dividends were paid amounting to £104,000. 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 R J Morcom
Mrs R M Morcom
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.

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.

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.

On behalf of the board
Mr R J Morcom
Director
29 April 2025
R&R MORCOM HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF R&R MORCOM HOLDINGS LIMITED
- 3 -
Opinion

We have audited the financial statements of R&R Morcom Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of income and retained earnings, the group statement of financial position, the company statement of financial position, 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:

R&R MORCOM HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF R&R MORCOM HOLDINGS LIMITED
- 4 -
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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Overall, we consider that the group's financial statements have a low susceptibility of material misstatement as a result of fraud.

In terms of income, contracts are agreed with the customer and payments are made based on the stage of completion. By nature of the trade, contracts and payments are of significant value and therefore misappropriation would be inherently difficult. Payments to dummy suppliers or employees could occur but entity controls limit the opportunity for this.

There is the potential that stock could be stolen from sites, but there is CCTV in most cases and stock levels are not significant.

There is minimal cash handling by nature of the type of transactions and therefore any fraud from misappropriation of cash would be trivial.

 

The main laws and regulations of significance to the company are health and safety regulations, employment law, tax and accounting law.

 

Our audit work in response to the risks identified included but was not limited to:

- Enquiry of management and those charged with governance around actual and potential litigation and claims.

- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.

- Reviewing legal fee invoices for any evidence of non-compliance.

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- Testing income and expenditure and agreeing to supporting documentation. Ensuring the company’s systems are adequate in this regard.

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

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.

R&R MORCOM HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF R&R MORCOM HOLDINGS LIMITED
- 5 -

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.

Amy Sole FCA (Senior Statutory Auditor)
For and on behalf of Phillips Frith LLP
29 April 2025
Chartered Accountants
Statutory Auditor
9 Tregarne Terrace
St Austell
Cornwall
PL25 4DD
R&R MORCOM HOLDINGS LIMITED
GROUP STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
2024
2023
Notes
£
£
Revenue
2
11,757,598
10,758,176
Cost of sales
(9,361,455)
(8,150,300)
Gross profit
2,396,143
2,607,876
Administrative expenses
(1,517,120)
(1,923,324)
Other operating income
133,732
120,755
Operating profit
4
1,012,755
805,307
Finance costs
8
(60,452)
(110,018)
Profit before taxation
952,303
695,289
Tax on profit
7
(242,831)
(172,858)
Profit for the financial year
23
709,472
522,431
Retained earnings brought forward
11,016,668
10,746,237
Dividends
(104,000)
(252,000)
Retained earnings carried forward
11,622,140
11,016,668
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
R&R MORCOM HOLDINGS LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
31 December 2024
- 7 -
2024
2023
Notes
£
£
£
£
Non-current assets
Intangible assets
10
7,302
7,302
Property, plant and equipment
13
1,860,117
1,822,573
Investment property
11
7,264,319
7,502,216
Investments
12
500
500
9,132,238
9,332,591
Current assets
Inventories
15
2,000
2,000
Trade and other receivables
16
4,358
6,319
Cash and cash equivalents
1,248,902
349,188
1,255,260
357,507
Current liabilities
17
(281,790)
(203,419)
Net current assets
973,470
154,088
Total assets less current liabilities
10,105,708
9,486,679
Non-current liabilities
19
(406,477)
-
Provisions for liabilities
Deferred tax liability
21
719,587
706,503
(719,587)
(706,503)
Net assets
8,979,644
8,780,176
Equity
Called up share capital
22
1,000
1,000
Retained earnings
23
8,978,644
8,779,176
Total equity
8,979,644
8,780,176

As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s profit for the year was £303,468 (2023 - £1,502,612 profit).

The financial statements were approved by the board of directors and authorised for issue on 28 April 2025 and are signed on its behalf by:
28 April 2025
Mr R J Morcom
Director
Company registration number 07669498 (England and Wales)
R&R MORCOM HOLDINGS LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 8 -
2024
2023
Notes
£
£
£
£
Non-current assets
Intangible assets
10
7,302
7,302
Property, plant and equipment
13
2,580,145
2,854,997
Investment properties
11
7,264,319
7,502,216
9,851,766
10,364,515
Current assets
Inventories
15
60,263
64,696
Trade and other receivables
16
2,408,611
2,109,873
Cash and cash equivalents
1,837,747
533,451
4,306,621
2,708,020
Current liabilities
17
(1,198,475)
(828,654)
Net current assets
3,108,146
1,879,366
Total assets less current liabilities
12,959,912
12,243,881
Non-current liabilities
19
(460,742)
(286,052)
Provisions for liabilities
Deferred tax liability
21
875,530
939,661
(875,530)
(939,661)
Net assets
11,623,640
11,018,168
Equity
Called up share capital
22
1,000
1,000
Capital redemption reserve
500
500
Retained earnings
23
11,622,140
11,016,668
Total equity
11,623,640
11,018,168
The financial statements were approved by the board of directors and authorised for issue on 28 April 2025 and are signed on its behalf by:
28 April 2025
Mr R J Morcom
Director
R&R MORCOM HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
1,158,105
2,030,128
Interest paid
(60,452)
(110,018)
Income taxes paid
(61,555)
(182,705)
Net cash inflow from operating activities
1,036,098
1,737,405
Investing activities
Purchase of property, plant and equipment
(170,585)
(1,022,133)
Proceeds on disposal of property, plant and equipment
17,582
312,777
Purchase of investment property
(161,186)
(236,534)
Proceeds on disposal of investment property
413,454
-
Receipts arising from loans made
-
59,781
Net cash generated from/(used in) investing activities
99,265
(886,109)
Financing activities
Repayment of bank loans
514,477
(1,914,724)
(Payment)/ advance of finance leases obligations
(241,544)
242,716
Dividends paid to equity shareholders
(104,000)
(252,000)
Net cash generated from/(used in) financing activities
168,933
(1,924,008)
Net increase/(decrease) in cash and cash equivalents
1,304,296
(1,072,712)
Cash and cash equivalents at beginning of year
533,451
1,606,163
Cash and cash equivalents at end of year
1,837,747
533,451
R&R MORCOM HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
1
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.

2
Revenue
2024
2023
£
£
Revenue analysed by class of business
Construction
11,757,598
10,758,176
3
Accounting policies
Company information

R&R Morcom Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 9 Tregarne Terrace, St Austell, Cornwall, PL25 4DD. The principal place of business is Perrose, Lantyan, Milltown, Lostwithiel, Cornwall, PL22 0JJ.

 

The group consists of R&R Morcom Holdings Limited and all of its subsidiaries.

3.1
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 properties and to include investment properties and certain financial instruments 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:

 

R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Accounting policies
(Continued)
- 11 -
3.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company R&R Morcom Holdings 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 31 December 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.

3.3
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.

3.4
Revenue

Turnover is recognised at the fair value of the consideration received or receivable for rental income and building services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Dividend income from investments is recognised when the shareholder's right to receive payment has been established.

3.5
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.

Intangible assets are made up of Rural Payment Agency rights which do not have a defined useful life and as such no amortisation is recognised.

3.6
Property, plant and equipment

Property, plant and equipment 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
2% per annum on the straight line method
Plant and equipment
15% per annum on the reducing balance method
Computer equipment
33.3% per annum on the straight line method
Motor vehicles
25% per annum on the reducing balance method

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 income statement.

R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Accounting policies
(Continued)
- 12 -
3.7
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. Investment properties are stated at fair value based on the valuation performed by the directors, using readily available market values.

3.8
Non-current investments

In the parent company financial statements, investments in subsidiaries, are measured at cost.

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.

3.9
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell.

3.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include deposits held at call with banks.

3.11
Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

3.12
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 income statement 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 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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

3.13
Retirement benefits

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

R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Accounting policies
(Continued)
- 13 -
3.14
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 statement of financial position 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.

4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
8,750
8,300
Depreciation of owned property, plant and equipment
327,063
346,232
Depreciation of property, plant and equipment held under finance leases
98,035
126,606
Loss on disposal of property, plant and equipment
2,758
12,336
Profit on disposal of investment property
(14,371)
-
0
5
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
78
78
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,042,748
3,001,347
-
0
-
0
Social security costs
319,628
316,715
-
-
Pension costs
81,617
80,954
-
0
-
0
3,443,993
3,399,016
-
0
-
0
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
18,200
18,200
R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
306,961
73,267
Deferred tax
Origination and reversal of timing differences
(64,130)
99,591
Total tax charge
242,831
172,858

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
952,303
695,289
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
238,076
163,393
Tax effect of expenses that are not deductible in determining taxable profit
700
-
0
Tax effect of income not taxable in determining taxable profit
-
0
2,899
Permanent capital allowances in excess of depreciation
68,185
(93,025)
Deferred tax adjustment
(64,130)
99,591
Taxation charge
242,831
172,858
8
Finance costs
2024
2023
£
£
Interest on bank loans
34,118
72,990
Interest on finance leases and hire purchase contracts
26,082
37,011
Other interest
252
17
Total finance costs
60,452
110,018
9
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
104,000
252,000
R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
10
Intangible fixed assets
Group
RPA Agency Entitlements
£
Cost
At 1 January 2024 and 31 December 2024
7,302
Amortisation and impairment
At 1 January 2024 and 31 December 2024
-
0
Carrying amount
At 31 December 2024
7,302
At 31 December 2023
7,302
Company
RPA Agency Entitlements
£
Cost
At 1 January 2024 and 31 December 2024
7,302
Amortisation and impairment
At 1 January 2024 and 31 December 2024
-
0
Carrying amount
At 31 December 2024
7,302
At 31 December 2023
7,302
11
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 January 2024
7,502,216
7,502,216
Additions through external acquisition
161,186
161,186
Disposals
(399,083)
(399,083)
At 31 December 2024
7,264,319
7,264,319

Investment property comprises property held for residential/agricultural rental purposes and for capital appreciation. The fair value of the investment property has been arrived at on the basis of a valuation carried out at May 2022 by the directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
500
500
Movements in non-current investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024 and 31 December 2024
500
Carrying amount
At 31 December 2024
500
At 31 December 2023
500
13
Property, plant and equipment
Group
Freehold land and buildings
Plant and equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2024
537,141
3,614,977
6,996
215,330
4,374,444
Additions
-
0
125,452
1,384
42,750
169,586
Business combinations
-
0
-
0
1,000
-
0
1,000
Disposals
-
0
(7,340)
(1,000)
(16,000)
(24,340)
Eliminated in respect of assets transferred
-
0
(79,990)
(330)
-
0
(80,320)
At 31 December 2024
537,141
3,653,099
8,050
242,080
4,440,370
Depreciation and impairment
At 1 January 2024
138,573
1,285,619
4,288
90,967
1,519,447
Depreciation charged in the year
16,542
367,120
2,657
38,779
425,098
Eliminated in respect of disposals
-
0
-
0
-
0
(4,000)
(4,000)
Eliminated in respect of assets transferred
-
0
(79,990)
(330)
-
0
(80,320)
At 31 December 2024
155,115
1,572,749
6,615
125,746
1,860,225
Carrying amount
At 31 December 2024
382,026
2,080,350
1,435
116,334
2,580,145
At 31 December 2023
398,568
2,329,358
2,708
124,363
2,854,997
R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
13
Property, plant and equipment
(Continued)
- 17 -
Company
Freehold land and buildings
Plant and equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2024
449,641
2,425,241
5,996
199,330
3,080,208
Additions
-
0
309,879
670
34,000
344,549
At 31 December 2024
449,641
2,735,120
6,666
233,330
3,424,757
Depreciation and impairment
At 1 January 2024
121,073
1,045,637
3,958
86,967
1,257,635
Depreciation charged in the year
14,792
253,422
2,200
36,591
307,005
At 31 December 2024
135,865
1,299,059
6,158
123,558
1,564,640
Carrying amount
At 31 December 2024
313,776
1,436,061
508
109,772
1,860,117
At 31 December 2023
328,568
1,379,604
2,038
112,363
1,822,573

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
555,530
717,434
-
0
-
0
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Morcom Construction Limited
United Kingdom
Building Contractors
Ordinary shares
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Morcom Construction Limited
2,644,496
761,004
R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
15
Inventories
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
27,000
27,000
2,000
2,000
Work in progress
33,263
37,696
-
-
60,263
64,696
2,000
2,000
16
Trade and other receivables
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade receivables
1,806,524
1,514,578
-
0
-
0
Gross amounts owed by contract customers
578,318
512,176
-
0
-
0
Other receivables
1,003
48,964
91
-
0
Prepayments and accrued income
22,766
34,155
4,267
6,319
2,408,611
2,109,873
4,358
6,319
17
Current liabilities
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
20
108,000
-
0
108,000
-
0
Obligations under finance leases
18
231,787
241,544
-
0
-
0
Trade payables
383,556
379,423
288
-
0
Corporation tax payable
190,212
(55,195)
71,365
61,554
Other taxation and social security
93,223
99,953
-
-
Other payables
97,445
74,476
95,712
135,815
Accruals and deferred income
94,252
88,453
6,425
6,050
1,198,475
828,654
281,790
203,419
18
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
231,787
241,544
-
0
-
0
In two to five years
54,265
286,052
-
0
-
0
286,052
527,596
-
-
R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
18
Finance lease obligations
(Continued)
- 19 -

Finance lease payments represent rentals payable by the company or group 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 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

19
Non-current liabilities
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
20
406,477
-
0
406,477
-
0
Obligations under finance leases
18
54,265
286,052
-
0
-
0
460,742
286,052
406,477
-
20
Bank Loans
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
514,477
-
0
514,477
-
0
Payable within one year
108,000
-
0
108,000
-
0
Payable after one year
406,477
-
0
406,477
-
0

The long-term loans are secured by fixed and floating charges over the company's assets.

21
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
542,528
606,659
Revaluations
333,002
333,002
875,530
939,661
R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
21
Deferred taxation
(Continued)
- 20 -
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
386,585
373,501
Revaluations
333,002
333,002
719,587
706,503
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
939,661
706,503
(Credit)/charge to profit or loss
(64,131)
13,084
Liability at 31 December 2024
875,530
719,587

The deferred tax liability set out above relates to accelerated capital allowances that are expected to mature and gains on disposal of investment properties, both of which will be realised in future periods.

22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
23
Reserves
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
11,016,668
10,746,237
8,779,176
7,528,565
Profit for the year
709,472
522,431
303,468
1,502,611
Dividends
(104,000)
(252,000)
(104,000)
(252,000)
At the end of the year
11,622,140
11,016,668
8,978,644
8,779,176
R&R MORCOM HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
24
Non-distributable profits reserve
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning and end of the year
1,078,926
1,078,926
1,078,926
1,078,926
25
Analysis of changes in net funds - group
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
533,451
1,304,296
1,837,747
Borrowings excluding overdrafts
-
(514,477)
(514,477)
Obligations under finance leases
(527,596)
241,544
(286,052)
5,855
1,031,363
1,037,218
26
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
709,472
522,431
Adjustments for:
Taxation charged
242,831
172,858
Finance costs
60,452
110,018
Loss on disposal of property, plant and equipment
2,758
12,336
Gain on disposal of investment property
(14,371)
-
0
Depreciation and impairment of property, plant and equipment
425,098
472,838
Movements in working capital:
Decrease/(increase) in inventories
4,433
(39,696)
(Increase)/decrease in trade and other receivables
(298,739)
1,027,834
Increase/(decrease) in trade and other payables
26,171
(248,492)
Cash generated from operations
1,158,105
2,030,127
27
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
81,617
80,954

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.

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