Company registration number SC182259 (Scotland)
DOUGALL HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
DOUGALL HOLDINGS LIMITED
COMPANY INFORMATION
Directors
J M Dougall
T B Dougall
A Dougall
Company number
SC182259
Registered office
Balmore House
1497 Balmore Road
Glasgow
United Kingdom
G23 5HD
Auditor
Azets Audit Services
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
DOUGALL HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Directors' responsibilities statement
7
Independent auditor's report
8 - 10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 34
DOUGALL HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -

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

Fair review of the business

The principal activity of the group is civil engineering.

 

The results for the year are shown on the Statement of Comprehensive Income on page 11.

 

The directors are pleased to report that the group has continued to improve both turnover and profitability in the year to 31 August 2024.

 

Gross profit and net profit margins remain healthy, resulting in an increase in annual turnover to £157 million (2023 - £144.2m) generating a net profit after tax of £4,487,296 (2023 - £3,876,456).

 

These progressive results reflect the group's focus and further establishment within a targeted and diverse range of civil engineering and building market sectors including power and energy, new roads and infrastructure, retail, leisure, transport, and manufacturing project opportunities.

 

Market conditions provided a wide and buoyant range of tendering opportunities with associated successful awards, however the recruitment of additional skilled management and workforce resources proved challenging in comparison to previous years.

 

The Board continue to monitor and measure past performance and results against current market conditions and opportunities, with the aim of increasing turnover whilst maintaining a comparative profit margin to the year ended 31 August 2025, albeit against a backdrop which still remains challenging and competitive.

Principal risks and uncertainties

Recruitment of suitably skilled staff and labour resources, will again factor as a business risk in the year to 31 August 2025.

 

These matters are being monitored and managed by the Board accordingly to mitigate the effects on our trading position.

Financial key performance indicators

The key financial performance indicators monitored by the Board and the group’s management team are: contract performance; divisional contribution; overheads; net profit margin and liquidity ratios.

Other key performance indicators

The directors believe that non-financial performance indicators are as important as financial ones. These include, but are not limited to: the retention of a skilled workforce; maintaining a good reputation with clients through the group’s commitment to providing quality work; and achieving the highest possible standards in both Health and Safety and Environmental performance.

DOUGALL HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
Directors' statement of compliance with duty to promote the success of the company

Section 172(1) of the Companies Act 2006 imposes an obligation on the group's Board of Directors to promote the success of the group as a whole for the benefit of all stakeholders.

 

The following disclosure describes how the directors have responded to the requirements of Section 172(1) and details the actions and procedures now in place to ensure compliance.

 

The group is headed by an experienced and effective Board, which controls and leads the group.

 

Board members present the annual business plan to shareholders for discussion and approval. Thereafter the Board meets with shareholders on a monthly basis to report progress. Shareholders are provided with the management information and reports used by the directors.

 

The Board then meets weekly, reviewing all current and future contracts as well as tender opportunities in the short to medium term.

 

The group's employees are also involved in this process where the information considered by the shareholders and directors is communicated to them through a series of meetings and events.

 

The group also has a variety of employee engagement processes in place to provide employee voice and feedback on a number of issues, these include: regular performance appraisals, e-mail communication, site/line manager briefings, safety observation reporting and regular workforce representative meetings. OVer the last number of years we have made increased use of digital technology such as mobile apps and video conferencing to maintain engagement levels with all sections of our workforce.

 

The group is committed to ensuring that we have a positive impact on the local environment and communities in which we operate. We proactively engage with community groups, local authorities, and other relevant organisations. In addition, we have provided a variety of financial and non-financial contributions to charities, social enterprises and schools including work experience, employment opportunities and delivery of community projects.

 

The group continues to foster close relationships with both suppliers and customers. Communication with all customers and suppliers is key to the success of the business. We maintain strong, long standing and mutually beneficial relationships with clients, suppliers and sub-contractors.

DOUGALL HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -

In summary, the Board recognises that it must understand the views and needs of all of the group's stakeholders including shareholders, employees, customers and suppliers, and the effect on these interested parties of the principal decisions taken by the group during the financial year.

On behalf of the board

T B Dougall
Director
22 May 2025
DOUGALL HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 4 -

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

 

The information regarding the business review and future developments, principal risks and uncertainties, financial key performance indicators and other key performance indicators is included in the Strategic Report and not in the Directors' Report.

Principal activities

The principal activity of the group continued to be that of civil engineering.

Results and dividends

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

No ordinary dividends were paid. 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:

J M Dougall
T B Dougall
A J Dougall
J M Dougall
(resigned 28 March 2024)

Disabled persons

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

Employee involvement

The group places considerable value on the involvement of its employees and has continued its previous practice of keeping them informed on matters affecting them as employees and on the various factors affecting the performance of the group.

Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the group will be put at a General Meeting.

DOUGALL HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 5 -
Energy and carbon report

 

Reasons for Change in Emissions

 

Our reported gross emissions have increased this year in comparison to our base year and against the previous year. Our chosen intensity measurement shows a reduction of 10.8% when compared to the previous year.

 

Base Year

 

The group have a fixed base year of 2014/15. We chose this year as it was the first year for which we required to comply with the Energy Savings Opportunities Scheme Regulations and therefore the required information to compile the detail above was available and accurate and was typical in respect of our operations. Our base year recalculation policy is to recalculate our base year and prior year emissions for relevant significant changes, which meet our significant threshold of 15% of base year emissions.

 

Targets

 

Our emissions reduction target is to reduce our gross emissions in tonnes of CO2e per £100,000 turnover by 5% annually. Allan Randall, Alex Morrison, Joint Managing Directors, and Ian Barclay, Director, are responsible for the achievement of the target.

 

Organisational Boundary

 

The group have used the operational control approach.

 

2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
531,670
517,370
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
3,789.34
2,854.84
- Fuel consumed for owned transport
5,080.89
3,387.29
8,870.23
6,242.13
Scope 2 - indirect emissions
- Electricity purchased
110.08
60.01
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
-
97.68
Total gross emissions
8,980.31
6,399.82
Intensity ratio
Tonnes CO2e per £100,000 turnover
5.7
4.45
Quantification and reporting methodology

The group have followed the 2019 UK Government environmental reporting guidance. We also used the ESOS guidance.

 

The group have used the 2024 UK Government GHG Conversion Factors for Company Reporting.

DOUGALL HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 6 -
Intensity measurement

For continuity we have chosen the same metric gross emissions in tonnes of CO2e per £100,000 turnover as per the previous year. This is the most likely to be a common business metric for our industry and also the most likely to be constant.

Measures taken to improve energy efficiency

We as a group will continue to implement some of the energy saving opportunities identified within our ESOS Audit report for the year 2014-2015 and 2018-2019, details are identified below:

 

Speed Limiters: Continued with the programme of new vehicles purchased with speed limiters thus increasing the fuel economy of each vehicle and therefore reducing the emissions.

 

Employee behaviours: With the tracking systems installed in our group vehicles and some items of large plant initially for insurance purposes, the tracking system allows the group to monitor speed of the vehicle, braking behaviours, driving behaviours such as cornering, idling times etc. This then allows the group to coach employees to drive more efficiently and therefore reduce emissions from vehicles and construction plant.

 

The continued use of Self-Contained Welfare Units (Energy Savers) on construction sites which reduces the fuel quantities used and therefore reduce emissions from the use of diesel generators on construction sites.

 

Furthermore the ESOS Phase 3 measures have been committed to and will be implemented in stages throughout the 2024-25 period, which will further reduce our carbon impact.

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 group 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 group is aware of that information.

On behalf of the board
T B Dougall
Director
22 May 2025
DOUGALL HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
- 7 -

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.

DOUGALL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DOUGALL HOLDINGS LIMITED
- 8 -
Opinion

We have audited the financial statements of Dougall Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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:

DOUGALL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DOUGALL HOLDINGS LIMITED
- 9 -
Matters on which we are required to report by exception

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

 

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

 

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 group's and 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 group or 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.

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.

DOUGALL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DOUGALL HOLDINGS LIMITED
- 10 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the group, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the group and parent company that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

 

Use of our report

This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Jennifer Alexander (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
22 May 2025
Chartered Accountants
Statutory Auditor
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
DOUGALL HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
157,019,763
144,229,439
Cost of sales
(137,200,334)
(124,568,406)
Gross profit
19,819,429
19,661,033
Administrative expenses
(16,217,129)
(16,094,337)
Other operating income
15,000
15,000
Operating profit
4
3,617,300
3,581,696
Interest receivable and similar income
8
482,022
187,889
Interest payable and similar expenses
9
(44,318)
(26,553)
Profit before taxation
4,055,004
3,743,032
Tax on profit
10
432,292
133,424
Profit for the financial year
22
4,487,296
3,876,456
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.
DOUGALL HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT 31 AUGUST 2024
31 August 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
6,895,267
6,043,485
Current assets
Stocks
14
911,906
907,407
Debtors
15
28,034,623
28,284,072
Cash at bank and in hand
17,215,167
20,712,042
46,161,696
49,903,521
Creditors: amounts falling due within one year
16
(31,483,394)
(36,844,344)
Net current assets
14,678,302
13,059,177
Total assets less current liabilities
21,573,569
19,102,662
Creditors: amounts falling due after more than one year
17
(75,243)
-
Provisions for liabilities
Deferred tax liability
19
243,018
593,356
(243,018)
(593,356)
Net assets
21,255,308
18,509,306
Capital and reserves
Called up share capital
21
62,590
68,750
Capital redemption reserve
22
506,160
500,000
Other reserves
22
648,730
648,730
Profit and loss reserves
22
20,037,828
17,291,826
Total equity
21,255,308
18,509,306
The financial statements were approved by the board of directors and authorised for issue on 22 May 2025 and are signed on its behalf by:
22 May 2025
T B Dougall
Director
Company registration number SC182259 (Scotland)
DOUGALL HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 AUGUST 2024
31 August 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,290,100
1,303,400
Investments
12
6,010,000
6,010,000
7,300,100
7,313,400
Current assets
Debtors
15
775,000
2,475,000
Creditors: amounts falling due within one year
16
(60,001)
(10,001)
Net current assets
714,999
2,464,999
Net assets
8,015,099
9,778,399
Capital and reserves
Called up share capital
21
62,590
68,750
Capital redemption reserve
22
506,160
500,000
Merger reserve
22
5,431,250
5,431,250
Profit and loss reserve
22
2,015,099
3,778,399
Total equity
8,015,099
9,778,399

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £22,006 (2023 - £13,300 loss).

The financial statements were approved by the board of directors and authorised for issue on 22 May 2025 and are signed on its behalf by:
22 May 2025
T B Dougall
Director
Company Registration No. SC182259
DOUGALL HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 14 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 September 2022
68,750
500,000
648,730
13,415,370
14,632,850
Year ended 31 August 2023:
Profit and total comprehensive income
-
-
-
3,876,456
3,876,456
Balance at 31 August 2023
68,750
500,000
648,730
17,291,826
18,509,306
Year ended 31 August 2024:
Profit and total comprehensive income
-
-
-
4,487,296
4,487,296
Redemption of shares
21
(6,160)
6,160
-
(1,741,294)
(1,741,294)
Balance at 31 August 2024
62,590
506,160
648,730
20,037,828
21,255,308
DOUGALL HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 15 -
Share capital
Capital redemption reserve
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 September 2022
68,750
500,000
5,431,250
3,791,699
9,791,699
Year ended 31 August 2023:
Loss and total comprehensive income
-
-
-
(13,300)
(13,300)
Balance at 31 August 2023
68,750
500,000
5,431,250
3,778,399
9,778,399
Year ended 31 August 2024:
Loss and total comprehensive income
-
-
-
(22,006)
(22,006)
Redemption of shares
21
(6,160)
6,160
-
(1,741,294)
(1,741,294)
Balance at 31 August 2024
62,590
506,160
5,431,250
2,015,099
8,015,099
DOUGALL HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
28
(892,386)
4,878,490
Interest paid
(44,318)
(26,553)
Income taxes received/(paid)
562,314
574,207
Net cash (outflow)/inflow from operating activities
(374,390)
5,426,144
Investing activities
Purchase of tangible fixed assets
(2,895,998)
(2,775,109)
Proceeds on disposal of tangible fixed assets
312,283
302,111
Interest received
482,022
187,889
Net cash used in investing activities
(2,101,693)
(2,285,109)
Financing activities
Redemption of shares
(1,741,294)
-
0
Movement in finance leases obligations
720,502
(190,766)
Net cash used in financing activities
(1,020,792)
(190,766)
Net (decrease)/increase in cash and cash equivalents
(3,496,875)
2,950,269
Cash and cash equivalents at beginning of year
20,712,042
17,761,773
Cash and cash equivalents at end of year
17,215,167
20,712,042
DOUGALL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 17 -
1
Accounting policies
Company information

Dougall Holdings Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is Balmore House, 1497 Balmore Road, Glasgow, United Kingdom, G23 5HD.

 

The group consists of Dougall Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. 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:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

DOUGALL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 18 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company, Dougall Holdings Limited, together with all entities controlled by the parent company (its subsidiaries).

 

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.

In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 1 September 2014.

 

Therefore the group continues to recognise a merger reserve which arose on a past business combination that was accounted for as a merger in accordance with UK GAAP as applied at the time.

1.4
Going concern

The group and company has a satisfactory level of financial resources together with a solid base of existing customers, and expertise in its field of operations. As a consequence the directors believe that the group and company is well placed to manage its business risks successfully despite the current uncertain economic outlook.

 

The directors have a reasonable expectation that the group and company has adequate resources to continue in operational existence for the foreseeable future, and so continue to adopt the going concern basis of accounting in preparing the annual financial statements.

DOUGALL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 19 -
1.5
Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

 

Rendering of services

 

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

 

Construction contracts

 

When the outcome of a construction contract can be estimated reliably, the group shall recognise contract revenue and contract costs associated with the construction contract as revenue and expenses respectively by reference to the stage of completion of the contract activity at the end of the reporting period.

 

The group shall determine the stage of completion of a transaction or contract through performing surveys of the work performed to date.

 

When the outcome of a construction contract cannot be estimated reliably:

 

The group will recognise as an expense immediately any costs whose recovery is not probable. When it is probable that total contract costs will exceed total contract revenue on a construction contract, the expected loss shall be recognised as an expense immediately.

1.6
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
1-10% on cost
Plant and equipment
10-50% on cost
Office equipment
12.5-25% on cost
Motor vehicles
25-33% on cost

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 credited or charged to profit or loss.

 

 

 

 

 

 

 

DOUGALL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 20 -
1.7
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

 

A subsidiary is an entity controlled by the parent company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

 

An associate is an entity, being neither a subsidiary nor a joint venture, in which the parent company holds a long term interest and where the parent company has significant influence. The parent company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Entities in which the parent company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
Impairment of fixed assets

At each reporting date the group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined by which is higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying value exceeds the recoverable amount.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
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.

DOUGALL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 21 -
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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.

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, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

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.

DOUGALL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 22 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
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.

1.13
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 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 profit and loss account, 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.

DOUGALL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 23 -
1.14
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.15
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 cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

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

1.17
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.

1.18
Foreign exchange

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

DOUGALL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 24 -
2
Judgements and key sources of estimation uncertainty

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

 

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

 

The directors are satisfied that accounting policies are appropriate and applied consistently. Key sources of accounting estimation have been applied to the valuation of work in progress based on surveyors' valuations of work performed at the end of each accounting period and the recognition of revenue due on contracts.

 

 

 

3
Turnover
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
157,019,763
144,229,439
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
1,476,735
1,393,502
Depreciation of tangible fixed assets held under finance leases
494,700
255,625
Profit on disposal of tangible fixed assets
(239,502)
(270,254)
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 company and its subsidiaries
50,995
48,495
For other services
Taxation compliance services
12,000
11,700
Other taxation services
10,575
-
All other non-audit services
4,200
-
26,775
11,700
DOUGALL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 25 -
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
Office and management
224
196
-
-
Technical
330
319
-
-
Total
554
515
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
30,535,524
29,669,449
-
0
-
0
Social security costs
3,634,917
3,597,209
-
-
Pension costs
1,454,447
919,937
-
0
-
0
35,624,888
34,186,595
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
939,697
1,874,701
Company pension contributions to defined contribution schemes
4,399
6,638
944,096
1,881,339
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
855,036
1,644,509

During the year retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution schemes.

 

Key management personnel are deemed to be the directors of the company only.

 

Social security costs incurred on behalf of the directors were £126,435 (2023 - £273,580).

DOUGALL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 26 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
482,022
187,889
9
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
44,318
26,553
10
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(81,954)
(726,780)
Deferred tax
Origination and reversal of timing differences
350,197
593,356
Adjustment in respect of prior periods
(700,535)
-
0
Total deferred tax
(350,338)
593,356
Total tax credit
(432,292)
(133,424)

The actual credit 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
4,055,004
3,743,032
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.52%)
1,013,751
805,500
Tax effect of expenses that are not deductible in determining taxable profit
51,269
40,257
Tax effect of utilisation of tax losses not previously recognised
1,127
-
0
Other permanent differences
4,217
565
Deferred tax adjustments in respect of prior years
(700,535)
-
0
Deferred tax not recognised
-
0
83,517
Remeasurement of deferred tax for changes in tax rates
-
0
66,934
Fixed asset differences
2,345
(38,414)
Over provision in prior year
(81,954)
(726,780)
Additional deduction for R&D expenditure
(722,512)
(365,003)
Taxation credit
(432,292)
(133,424)
DOUGALL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 27 -
11
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Office equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 September 2023
2,060,973
4,845,088
858,387
7,468,638
15,233,086
Additions
174,777
235,162
98,341
2,387,718
2,895,998
Disposals
-
0
(476,783)
(148,587)
(589,317)
(1,214,687)
At 31 August 2024
2,235,750
4,603,467
808,141
9,267,039
16,914,397
Depreciation and impairment
At 1 September 2023
418,113
3,320,655
593,013
4,857,820
9,189,601
Depreciation charged in the year
133,163
525,291
91,336
1,221,645
1,971,435
Eliminated in respect of disposals
-
0
(430,476)
(147,331)
(564,099)
(1,141,906)
At 31 August 2024
551,276
3,415,470
537,018
5,515,366
10,019,130
Carrying amount
At 31 August 2024
1,684,474
1,187,997
271,123
3,751,673
6,895,267
At 31 August 2023
1,642,860
1,524,433
265,374
2,610,818
6,043,485
Company
Freehold land and buildings
£
Cost
At 1 September 2023 and 31 August 2024
1,330,000
Depreciation and impairment
At 1 September 2023
26,600
Depreciation charged in the year
13,300
At 31 August 2024
39,900
Carrying amount
At 31 August 2024
1,290,100
At 31 August 2023
1,303,400
DOUGALL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
11
Tangible fixed assets
(Continued)
- 28 -

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
158,667
383,742
-
0
-
0
Motor vehicles
1,519,948
415,246
-
0
-
0
1,678,615
798,988
-
-

Included within the above depreciation charge is depreciation of assets held under hire purchase contracts being £494,700 (2023 - £255,625).

12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
6,010,000
6,010,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 September 2023 and 31 August 2024
6,010,000
Carrying amount
At 31 August 2024
6,010,000
At 31 August 2023
6,010,000
13
Subsidiaries

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

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
Luddon Construction Limited
United Kingdom
Civil engineering
Ordinary
100.00
-
Westerhill Developments Limited
United Kingdom
General construction and civil engineering
Ordinary
100.00
-
Luddon Estates Limited
United Kingdom
Non-trading
Ordinary
0
100.00
DOUGALL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
13
Subsidiaries
(Continued)
- 29 -

The registered office of all subsidiaries is the same as the parent company, Dougall Holdings Limited, details of which are included on the company information pages of these financial statements.

 

The reporting date of Westerhill Developments Limited was 2 April 2024. Interim statements as at 31 August 2024 have been used in this consolidation.

14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
97,906
93,407
-
-
Development land stock
814,000
814,000
-
-
911,906
907,407
-
-
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
27,011,748
26,892,750
-
0
-
0
Corporation tax recoverable
386,840
867,200
-
0
-
0
Amounts owed by group undertakings
-
-
775,000
2,475,000
Amounts owed by undertakings in which the company has a participating interest
222,303
159,833
-
-
Other debtors
7,387
7,697
-
0
-
0
Prepayments and accrued income
406,345
356,592
-
0
-
0
28,034,623
28,284,072
775,000
2,475,000

The allowances for estimated irrecoverable amounts have been determined by reference to past experience and the information on specific contracts and balances and is calculated by reference to the present value of anticipated future proceeds. Trade terms are determined on a contract by contract basis.

 

DOUGALL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 30 -
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
18
1,002,112
356,853
-
0
-
0
Payments received on account
1,314,248
1,055,585
-
0
-
0
Trade creditors
8,895,463
5,588,859
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
60,000
10,000
Amounts owed to undertakings in which the group has a participating interest
159,193
1,159,337
1
1
Other taxation and social security
2,218,776
4,544,393
-
-
Accruals and deferred income
17,893,602
24,139,317
-
0
-
0
31,483,394
36,844,344
60,001
10,001

The group has facilities which are secured by a counter indemnity and two floating charges over the assets and undertakings of Luddon Construction Limited.

17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
18
75,243
-
0
-
0
-
0
18
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
1,002,112
356,853
-
0
-
0
In two to five years
75,243
-
0
-
0
-
0
1,077,355
356,853
-
-

Hire purchase creditors are secured over the assets that they are in relation to.

DOUGALL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 31 -
19
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
920,812
632,567
Tax losses
(677,794)
(39,211)
243,018
593,356
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 September 2023
593,356
-
Credit to profit or loss
(350,338)
-
Liability at 31 August 2024
243,018
-
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
1,454,447
919,937

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. Contributions totalling £nil (2023 - £nil) were payable to the fund at the balance sheet date.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
62,590
62,590
62,590
68,750

The ordinary shareholders are entitled to dividends and shares rank equally for voting purposes.

 

On 27 March 2024, the company repurchased 6,160 (9%) of its £1 ordinary shares for a consideration of £1,741,294. These shares were subsequently cancelled by the company.

 

 

 

DOUGALL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 32 -
22
Reserves

Capital redemption reserve

The capital redemption reserve relates to the equity component of shares bought back by the group in the prior years.

 

Merger reserve

On 22 May 1998 the company acquired Luddon Construction Limited by an exchange of shares. In accordance with Sections 131 and 133 of the Companies Act 1985, no premium was recorded on the shares issued.

 

On consolidation the difference between the nominal value of the company's shares and the amount of the share capital and share premium on the acquisition of Luddon Construction Limited was credited to a merger reserve. The difference between the cost of acquisition and the fair value of the net assets acquired was debited to this reserve.

 

Profit and loss reserve

The profit and loss reserve includes all current and prior year retained profits or losses.

23
Capital commitments

At 31 August 2024 there were capital commitments of £nil (2023 - £1,519,751).

24
Contingent liabilities

At 31 August 2024 there were performance bonds outstanding of £3,983,589 (2023 - £5,209,754).

25
Related party transactions

T B Dougall was also a director of James Strang Limited, Legge Steel (Fabrications) Limited, Craighall Developments Limited, Craighall Energy Limited, Lednathie Estate Limited and R lindsay and Company (Contractors) Limited, during the year.

 

During the year to 31 August 2024 the group was involved in the following transactions:

 

James Strang Limited

During the year the group made purchases of £3,975 (2023 - £159) and £1,669,359 (2023 - £1,461,291) of subcontracting services from James Strang Limited. Sales to James Strang Limited amounted to £2,519 (2023 - £2,457).

 

At the year end amounts due from James Strang Limited to the group were £nil (2023 - £nil) and £606,745 (2023 - £254,784) was included within accruals in respect of subcontracting services from James Strang Limited.

DOUGALL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
25
Related party transactions
(Continued)
- 33 -

Legge Steel (Fabrications) Limited

During the year the group made purchases of £20,202 (2023 - £4,969) and £316,722 (2023 - £200,617) of subcontracting services from Legge Steel (Fabrications) Limited.

 

At the year end amounts due to Legge Steel (Fabrications) Limited by the group were £nil (2023 - £nil) and £176,340 (2023 - £4,772) was included within accruals in respect of subcontracting services from Legge Steel (Fabrications) Limited.

 

Craighall Developments Limited

During the year the group made sales to Craighall Developments Limited which amounted to £23,722 (2023 - £28,762).

 

At the year end amounts due to the group from Craighall Developments Limited were £118,960 (2023 - £65,112) and there is Work in Progress totaling £291,017 (2023 - £268,143) for works carried out by the group on behalf of Craighall Developments Limited.

 

Craighall Energy Limited

During the year the group made sales to Craighall Energy Limited which amounted to £nil (2023 - £1,945).

 

At the year end amounts due to the group from Craighall Energy Limited were £49,789 (2023 - £39,030).

 

Lednathie Estate Limited

During the year the group made purchases of £172,392 (2023 - £169,336) from Lednathie Estate Limited.

 

At the year end amounts due by the group to Lednathie Estate Limited were £159,192 (2023 - £159,336).

 

R Lindsay and Company (Contractors) Limited

During the year the group made purchases of £nil (2023 - £nil) and £nil (2023 - £1,450) of subcontracting services from R Lindsay and Company (Contractors) Limited.

 

During the year the group made sales pf £nil (2023 - £748) to R Lindsay and Company (Contractors) Limited.

 

Dougall Estate (Partnership)

J M Dougall and A J Dougall are also the partners of Dougall Estates.

 

Sales to Dougall Estates in the year amounted to £100,950 (2023 - £95,696).

 

At the year end amounts due to the group by Dougall Estates were £29,971 (2023 - £55,691).

26
Controlling party

There is no ultimate controlling party.

27
Directors' transactions

Included within amounts owed to related undertakings at the prior year end was a loan from a director. The loan was interest free and was repayable on demand. The principal loan amount was £1,000,000. At the year end the loan balance is £nil (2023 - £1,000,000).

DOUGALL HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 34 -
28
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Profit for the year after tax
4,487,296
3,876,456
Adjustments for:
Taxation credited
(432,292)
(133,424)
Interest paid
44,318
26,553
Interest received
(482,022)
(187,889)
Gain on disposal of tangible fixed assets
(239,502)
(270,254)
Depreciation and impairment of tangible fixed assets
1,971,435
1,649,127
Movements in working capital:
Increase in stocks
(4,499)
(4,220)
Increase in debtors
(230,911)
(4,599,198)
(Decrease)/increase in creditors
(6,006,209)
4,536,339
Decrease in deferred income
-
(15,000)
Cash (absorbed by)/generated from operations
(892,386)
4,878,490
29
Analysis of changes in net funds - group
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
20,712,042
(3,496,875)
17,215,167
Obligations under finance leases
(356,853)
(720,502)
(1,077,355)
20,355,189
(4,217,377)
16,137,812
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