Company registration number 09815206 (England and Wales)
EUROGOLD GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 SEPTEMBER 2024
30 September 2024
EUROGOLD GROUP LIMITED
COMPANY INFORMATION
Director
Mr D B Brickland
Company number
09815206
Registered office
18 Paramount Business Park
Liverpool
Merseyside
L36 6AW
Auditor
AMS Accountants Corporate Ltd
Chartered Accountants
Statutory Auditor
Floor 2
9 Portland Street
Manchester
M1 3BE
EUROGOLD GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 3
Director's report
4 - 5
Director's responsibilities statement
6
Independent auditor's report
7 - 9
Profit and loss account
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 - 38
EUROGOLD GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The director presents the strategic report for the year ended 30 September 2024.
Fair review of business
Over the past year, Eurogold Group Limited has strengthened its market position through strategic investments in both people and technology, enabling us to deliver high-quality projects efficiently. The Company’s primary focus continues to be on delivering superior workmanship while ensuring that projects are completed on time, within budget, and in accordance with regulatory and safety standards.
For the year ended 30th September 2024, Eurogold Group Limited demonstrated resilient performance in the face of a fluctuating market environment. However given the environment, turnover has decreased by 10% since the prior year to be £52,609,217 (2023: £58,439,242). This decrease is in line with expectations.
Principal risks and uncertainties
Eurogold Group Limited operates in a dynamic and competitive environment, and as such, faces a variety of risks and uncertainties that could impact the business. The principal risks identified are:
Economic and Market Risks: Economic downturns or fluctuations in government spending on infrastructure projects may affect demand for our services. The Company manages this risk by diversifying its project portfolio across various sectors and maintaining flexibility in its operations.
Regulatory Risks: Changes in construction regulations or health and safety standards could impose additional costs or project delays. The Company ensures compliance through ongoing training, monitoring regulatory changes, and engaging with industry bodies.
Supply Chain Risks: Disruptions in the supply of construction materials or labour shortages could impact project timelines. The Company mitigates this risk by building strong relationships with suppliers and maintaining a flexible and skilled workforce.
Environmental and Social Risks: The Company is committed to minimizing its environmental impact, but unforeseen environmental factors such as extreme weather events could affect operations. We continuously monitor and adjust our environmental policies to ensure compliance and sustainability.
Health and Safety Risks: The Company operates in a high-risk sector, and ensuring the safety of employees is a priority. We mitigate this risk by maintaining rigorous health and safety standards, regular training, and ensuring that all staff adhere to safety protocols.
Development and performance
For the financial year ended 30rh September 2024, the Company’s financial performance was strong, with the following key highlights:
Revenue: £52,609,217 (a decrease of 10% compared to the previous year).
Profit Before Tax (PBT): £1,403,774 (reflecting strong operational management and cost control).
Net Assets: £14,257,091 (down from £14,492,866 the previous year).
Order Book: £95 million, reflecting an increase in secured future projects, ensuring continued business growth.
These figures demonstrate the Company’s ability to generate consistent revenue growth and maintain a strong financial position. Eurogold remains focused on delivering value to its stakeholders while ensuring that its operations are carried out efficiently and sustainably.
Other information and explanations
EUROGOLD GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Corporate Governance
Eurogold Group Limited is committed to maintaining the highest standards of corporate governance and business ethics. The Board of Directors ensures that the Company’s operations are conducted with integrity, transparency, and accountability. Key elements of our governance framework include:
Board Structure: The Company’s Board is composed of experienced directors with expertise in civil engineering, finance, and business strategy.
Employee Engagement: We recognize the importance of maintaining a positive workplace culture and regularly seek feedback from our employees to improve operational processes and overall satisfaction.
The Company continues to comply with applicable corporate governance codes and regulations.
Corporate Social Responsibility (CSR)
Eurogold Group Limited is committed to being a responsible corporate citizen. Our CSR initiatives focus on several key areas:
Environmental Stewardship: We work to minimize our environmental footprint by adopting green construction practices, using energy-efficient technologies, and reducing waste.
Community Engagement: Eurogold invests in local communities through social programs, job creation, and infrastructure improvements, ensuring that our projects benefit the areas in which we operate.
Health and Safety: The health and safety of our employees and stakeholders are our highest priority. We have implemented a comprehensive health and safety management system and provide ongoing training to ensure a safe working environment.
Diversity and Inclusion: Eurogold values diversity and is committed to creating an inclusive workplace where all employees have equal opportunities to succeed.
Conclusion
Eurogold Group Limited has delivered another year of strong performance, driven by strategic investments in infrastructure, technology, and talent. The Company remains focused on delivering high-quality projects while managing risks effectively and maintaining a strong commitment to sustainability.
Looking forward, Eurogold is well-positioned to capitalize on opportunities in the civil engineering sector, with a clear strategy for growth, a robust pipeline of projects, and a commitment to continuous improvement. We remain confident in our ability to generate value for our shareholders and stakeholders.
EUROGOLD GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
Promoting the success of the company
The Board of Directors consider, consider, both collectively and individually, that they have acted in ways that they believe in good faith to be the most likely to promote the success of the Group for the benefit of its shareholders and employees in decisions made during the year ended 30 September 2024.
We recognise our employees as one of our most important assets and we aim to be a responsible employer in our approach to their pay and benefits. We have seen a great improvement in staff retention rates over the past year and encourage employee progression and development within the organisation. The health, safety and wellbeing of our employees is of the highest importance. We have offered and provided necessary tools for employees to ‘work from home’ wherever possible and provided a safe and socially distanced office facility for those where working from home is not suitable. Communication channels have been promoted both collectively and individually with regular group zoom calls and individual 1-2-1’s. The workforce has been exceptional in their commitment and their engagement is commendable of which we are extremely grateful.
Caring for our customers is fundamental to the success of our business and we endeavour to support them with innovative product, good quality, good service and value for money.
We aim to act responsibly and fairly in our engagement with suppliers, bankers, insurers and regulatory bodies. We have and always do work closely with our suppliers to make sure they are paid in accordance with their agreed terms.
As the Board of Directors, our intention is always to behave responsibly and to ensure that the business operates in a responsible manner, adhering to high standards of business conduct and good governance. We recognise that the maintenance of our good reputation, founded on responsible behavior is fundamental to our continuing ability to achieve profitable growth for the benefit of all stakeholders in the future.
Mr D B Brickland
Director
7 April 2025
EUROGOLD GROUP LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
The director presents his annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the group is that of ground works and civil engineers.
Results and dividends
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £1,169,798. The director does not recommend payment of a further dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr D B Brickland
Financial instruments
Liquidity risk
The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk
The group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The group uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.
Credit risk
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Auditor
The auditor, AMS Accountants Corporate Ltd is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
As the group has consumed more than 40,000 kWh of energy in this reporting period, it is required to report on its emissions, energy consumption or energy efficiency activities.
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
16,290,959
14,555,927
EUROGOLD GROUP LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
-
-
- Fuel consumed for owned transport
1,210.66
1,197.67
1,210.66
1,197.67
Scope 2 - indirect emissions
- Electricity purchased
5.29
3.15
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
14.30
14.30
Total gross emissions
1,230.25
1,215.12
Intensity ratio
Tonnes CO2e per full time-employee
24.12
23.83
Quantification and reporting methodology
The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting
Intensity measurement
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per full time employee.
Measures taken to improve energy efficiency
As part of our commitment to reduce our carbon footprint, we have taken a number of steps to reduce energy consumption within this business. These measures are noted below:
We have optimised our routes to ensure we are efficient with mileage and fuel consumption.
Moving forward we are currently obtaining quotes to eventually replace our fleet with electric vehicles.
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 D B Brickland
Director
7 April 2025
EUROGOLD GROUP LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 6 -
The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The director is 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. He is 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.
EUROGOLD GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EUROGOLD GROUP LIMITED
- 7 -
Opinion
We have audited the financial statements of Eurogold Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 30 September 2024 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the director's report have been prepared in accordance with applicable legal requirements.
EUROGOLD GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EUROGOLD GROUP LIMITED
- 8 -
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 director's report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the parent company or to cease operations, or has 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.
Based on our understanding of the company and industry, we identified that the principal risks of non -compliance with laws and regulations related to pensions legislation, UK tax legislation and UK employment legislation, and we considered the extent to which non- compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or manipulate expenditure and management bias in accounting estimates. Audit procedures performed by the audit engagement team included:
Discussions with management, including consideration of known or suspected instances of non- compliance with laws and regulation and fraud;
Review of the financial statement disclosures to underlying supporting documentation;
Challenging assumptions and judgements made by management in their significant accounting estimates;
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or posted by senior management.
There are inherent limitations in the audit procedures described above and the further removed non- compliance with laws and regulations is from the events and transaction reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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.
EUROGOLD GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EUROGOLD GROUP LIMITED
- 9 -
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.
Mr David Clegg BFP FCA (Senior Statutory Auditor)
For and on behalf of AMS Accountants Corporate Ltd, Statutory Auditor
Chartered Accountants
Floor 2
9 Portland Street
Manchester
M1 3BE
7 April 2025
EUROGOLD GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
52,609,217
58,439,242
Cost of sales
(46,162,895)
(51,235,705)
Gross profit
6,446,322
7,203,537
Administrative expenses
(5,491,417)
(5,312,584)
Other operating income
35,974
60,623
Operating profit
4
990,879
1,951,576
Interest receivable and similar income
7
162,382
71,582
Interest payable and similar expenses
8
(158,963)
(136,348)
Fair value gains and losses on tangible fixed assets
9
409,476
(3,427)
Profit before taxation
1,403,774
1,883,383
Tax on profit
10
(469,751)
(788,342)
Profit for the financial year
30
934,023
1,095,041
Profit for the financial year is all attributable to the owners of the parent company.
Earnings before interest, tax, depreciation and amortisation
2,759,772
3,683,166
The profit and loss account has been prepared on the basis that all operations are continuing operations.
EUROGOLD GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
2024
2023
£
£
Profit for the year
934,023
1,095,041
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
-
-
Total comprehensive income for the year
934,023
1,095,041
Total comprehensive income for the year is all attributable to the owners of the parent company.
EUROGOLD GROUP LIMITED
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
13
408,487
759,662
Tangible assets
14
9,209,735
8,587,113
Investment property
15
200,000
200,000
Investments
16
-
1
9,818,222
9,546,776
Current assets
Stocks
19
818,697
707,068
Debtors
21
12,146,129
10,247,954
Cash at bank and in hand
4,443,618
6,371,310
17,408,444
17,326,332
Creditors: amounts falling due within one year
22
(10,509,751)
(10,232,200)
Net current assets
6,898,693
7,094,132
Total assets less current liabilities
16,716,915
16,640,908
Creditors: amounts falling due after more than one year
23
(1,143,756)
(923,640)
Provisions for liabilities
Deferred tax liability
26
1,316,068
1,224,402
(1,316,068)
(1,224,402)
Net assets
14,257,091
14,492,866
Capital and reserves
Called up share capital
28
100
100
Other reserves
2,923,302
2,923,302
Profit and loss reserves
30
11,333,689
11,569,464
Total equity
14,257,091
14,492,866
The financial statements were approved and signed by the director and authorised for issue on 7 April 2025
07 April 2025
Mr D B Brickland
Director
Company registration number 09815206 (England and Wales)
EUROGOLD GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
16
6,314,105
6,314,106
Current assets
Debtors
21
1,551,181
1,376,174
Creditors: amounts falling due within one year
22
(4,939,578)
(4,751,769)
Net current liabilities
(3,388,397)
(3,375,595)
Net assets
2,925,708
2,938,511
Capital and reserves
Called up share capital
28
100
100
Other reserves
2,923,302
2,923,302
Profit and loss reserves
30
2,306
15,109
Total equity
2,925,708
2,938,511
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,156,995 (2023 - £1,033,168 profit).
The financial statements were approved and signed by the director and authorised for issue on 7 April 2025
07 April 2025
Mr D B Brickland
Director
Company registration number 09815206 (England and Wales)
EUROGOLD GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
Share capital
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2022
100
2,923,302
11,494,244
14,417,646
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
1,095,041
1,095,041
Dividends
11
-
-
(1,019,821)
(1,019,821)
Balance at 30 September 2023
100
2,923,302
11,569,464
14,492,866
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
934,023
934,023
Dividends
11
-
-
(1,169,798)
(1,169,798)
Balance at 30 September 2024
100
2,923,302
11,333,689
14,257,091
EUROGOLD GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
Share capital
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2022
100
2,923,302
1,762
2,925,164
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
-
1,033,168
1,033,168
Dividends
11
-
-
(1,019,821)
(1,019,821)
Balance at 30 September 2023
100
2,923,302
15,109
2,938,511
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
1,156,995
1,156,995
Dividends
11
-
-
(1,169,798)
(1,169,798)
Balance at 30 September 2024
100
2,923,302
2,306
2,925,708
EUROGOLD GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
34
1,364,994
7,221,941
Interest paid
(158,963)
(136,348)
Income taxes paid
(387,409)
(192,139)
Net cash inflow from operating activities
818,622
6,893,454
Investing activities
Purchase of tangible fixed assets
(219,205)
(658,323)
Proceeds from disposal of tangible fixed assets
387,001
662,810
Interest received
162,382
71,582
Net cash generated from investing activities
330,178
76,069
Financing activities
Proceeds from new bank loans
303,468
-
Repayment of bank loans
(604,014)
(39,253)
Payment of finance leases obligations
(1,606,148)
(1,466,737)
Dividends paid to equity shareholders
(1,169,798)
(1,019,821)
Net cash used in financing activities
(3,076,492)
(2,525,811)
Net (decrease)/increase in cash and cash equivalents
(1,927,692)
4,443,712
Cash and cash equivalents at beginning of year
6,371,310
1,927,598
Cash and cash equivalents at end of year
4,443,618
6,371,310
EUROGOLD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
1
Accounting policies
Company information
Eurogold Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 18 Paramount Business Park, Liverpool, Merseyside, L36 6AW.
The group consists of Eurogold Group Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of plant and machinery 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:true
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issuestrue: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’true: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’true: Compensation for key management personnel.
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.
EUROGOLD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 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 Eurogold Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 September 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.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.4
Going concern
At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and 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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
EUROGOLD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
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 buildings
2% straight line
Plant and equipment
15% - 25% reducing balance
Fixtures and fittings
25% reducing balance
Computers
25% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.8
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
Property rented to a group entity is accounted for as tangible fixed assets.
1.9
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
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.
EUROGOLD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 20 -
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.10
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
EUROGOLD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 21 -
1.11
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.
1.12
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
1.13
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.
1.14
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.
EUROGOLD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 22 -
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.
EUROGOLD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 23 -
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.
1.15
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.
1.16
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.17
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
EUROGOLD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 24 -
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.
1.18
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the 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 company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.19
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.20
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.21
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.
EUROGOLD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 25 -
1.22
Subsidiary undertakings exempt from audit
Under Section 479a of the Companies Act 2006 available to subsidiary undertakings, the company provides a guarantee in respect of the below subsidiary undertakings claiming exemption from audit.
Eurogold Groundworks & Civil Engineering Contractors Limited (05171556)
Eurogold Holdings Limited (06237460)
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Goodwill
The group purchased a subsidiary in 2016 with an expected useful economic life of 10 years. This is reviewed annually by the directors with an impairment review carried out via a value in use calculation. The value in use calculation requires the entity to estimate the future cash flows expected to arise from the cash generating unit and a suitable discount rate in order to calculate present value. The carrying amount of goodwill at the balance sheet date is £408,487 (2023 - £759,662) and no impairment was required to be recognised.
Investment Property Valuation
The fair value of investment properties is based on property valuations by the directors which are derived from a number of assumptions and the general strength of the property market and the wider economy. Significant changes to any of these factors may affect the fair value of the properties either in a negative or positive manner. The directors are satisfied at the year end that the market value of the investment properties remains appropriate.
3
Turnover and other revenue
An analysis of the group's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Contract revenue arising on construction contracts
52,609,217
58,439,242
2024
2023
£
£
Turnover analysed by geographical market
UK
52,609,217
58,439,242
EUROGOLD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
3
Turnover and other revenue
(Continued)
- 26 -
2024
2023
£
£
Other revenue
Interest income
162,382
71,582
Rent and service charges receivable
35,974
73,583
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
898,581
933,813
Depreciation of tangible fixed assets held under finance leases
546,787
453,792
Profit on disposal of tangible fixed assets
(27,650)
(7,190)
Amortisation of intangible assets
351,175
351,175
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
25,000
17,500
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
Director
1
1
1
1
Direct
25
28
-
-
Administration
26
22
-
-
Total
52
51
1
1
EUROGOLD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
6
Employees
(Continued)
- 27 -
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,539,602
2,512,204
Social security costs
304,023
294,454
-
-
Pension costs
54,563
76,916
2,898,188
2,883,574
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
138,119
47,458
Other interest income
24,263
24,124
Total income
162,382
71,582
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
35,191
37,561
Interest on finance leases and hire purchase contracts
106,646
84,731
Other interest
17,126
14,056
Total finance costs
158,963
136,348
9
Fair value gains and losses
2024
2023
£
£
Changes in the fair value of plant and machinery
395,606
-
Amounts written back to/(written off) current loans
13,871
(3,427)
Other gains and losses
(1)
-
409,476
(3,427)
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
378,085
324,727
EUROGOLD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
10
Taxation
2024
2023
£
£
(Continued)
- 28 -
Deferred tax
Origination and reversal of timing differences
91,666
463,615
Total tax charge
469,751
788,342
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
1,403,774
1,883,383
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
350,944
470,846
Tax effect of expenses that are not deductible in determining taxable profit
(57,644)
45,842
Effect of change in corporation tax rate
256,243
Permanent capital allowances in excess of depreciation
(1,762)
(235,024)
Amortisation on assets not qualifying for tax allowances
87,794
87,801
Deferred tax adjustments in respect of prior years
91,666
163,650
Tax at marginal rate
(1,247)
(1,016)
Taxation charge
469,751
788,342
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
1,169,798
1,019,821
12
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2024
2023
Notes
£
£
In respect of:
Fixed asset investments
16
1
-
Recognised in:
Amounts written off investments
1
-
EUROGOLD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
12
Impairments
(Continued)
- 29 -
The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.
13
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 October 2023 and 30 September 2024
3,511,752
Amortisation and impairment
At 1 October 2023
2,752,090
Amortisation charged for the year
351,175
At 30 September 2024
3,103,265
Carrying amount
At 30 September 2024
408,487
At 30 September 2023
759,662
The company had no intangible fixed assets at 30 September 2024 or 30 September 2023.
More information on impairment movements in the year is given in note 12.
EUROGOLD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 30 -
14
Tangible fixed assets
Group
Freehold buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 October 2023
1,326,761
8,015,451
42,804
59,881
3,875,284
13,320,181
Additions
-
1,125,372
-
-
906,363
2,031,735
Disposals
-
(477,566)
-
-
(240,767)
(718,333)
Revaluation
-
(1,479,688)
-
-
-
(1,479,688)
At 30 September 2024
1,326,761
7,183,569
42,804
59,881
4,540,880
13,153,895
Depreciation and impairment
At 1 October 2023
100,797
2,432,070
28,203
56,856
2,115,142
4,733,068
Depreciation charged in the year
26,535
888,906
2,677
2,272
524,978
1,445,368
Eliminated in respect of disposals
-
(221,948)
-
-
(137,034)
(358,982)
Revaluation
-
(1,875,294)
-
-
-
(1,875,294)
At 30 September 2024
127,332
1,223,734
30,880
59,128
2,503,086
3,944,160
Carrying amount
At 30 September 2024
1,199,429
5,959,835
11,924
753
2,037,794
9,209,735
At 30 September 2023
1,225,964
5,583,381
14,601
3,025
1,760,142
8,587,113
The company had no tangible fixed assets at 30 September 2024 or 30 September 2023.
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
1,826,043
1,960,220
Motor vehicles
988,654
894,746
2,814,697
2,854,966
-
-
Plant and machinery were revalued at the balance sheet date by independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar assets.
Plant and machinery are carried at valuation. If plant and machinery were measured using the cost model, the carrying amounts would have been approximately £5,101,029 (2023 - £5,208,206), being cost £10,456,720 (2023 - £10,217,224) and depreciation £5,355,691 (2023 - £5,009,018).
EUROGOLD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
14
Tangible fixed assets
(Continued)
- 31 -
15
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 October 2023 and 30 September 2024
200,000
-
Investment property comprises freehold land and buildings. The director is of the opinion that historical cost is not materially different from the fair value of investment property owned and represents the fair value.
The carrying value of land and buildings comprises:
Group
Company
2024
2023
2024
2023
£
£
£
£
Freehold
200,000
200,000
-
-
16
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
17
-
-
6,314,105
6,314,105
Investments in associates
-
1
1
-
1
6,314,105
6,314,106
Movements in fixed asset investments
Group
Shares in associates
£
Cost or valuation
At 1 October 2023
1
Disposals
(1)
At 30 September 2024
-
Carrying amount
At 30 September 2024
-
At 30 September 2023
1
EUROGOLD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
16
Fixed asset investments
(Continued)
- 32 -
Movements in fixed asset investments
Company
Shares in subsidiaries and associates
£
Cost or valuation
At 1 October 2023
6,314,106
Disposals
(1)
At 30 September 2024
6,314,105
Carrying amount
At 30 September 2024
6,314,105
At 30 September 2023
6,314,106
17
Subsidiaries
Details of the company's subsidiaries at 30 September 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Eurogold Groundworks & Civil Engineering Contractors Ltd
Same as parent company
Ordinary
100.00
Eurogold Holdings Ltd
Same as parent company
Ordinary
100.00
The investments in subsidiaries are all stated at cost.
18
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets include:
Debt instruments measured at amortised cost
11,266,959
9,129,776
n/a
n/a
Carrying amount of financial liabilities include:
Measured at amortised cost
11,022,431
10,204,237
n/a
n/a
19
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
818,697
707,068
-
-
EUROGOLD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 33 -
20
Construction contracts
Group
Company
2024
2023
2024
2023
£
£
£
£
Amounts falling due more than one year:
Retentions held by customers
1,884,873
2,141,583
-
-
21
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
9,609,029
8,004,836
Corporation tax recoverable
-
347,259
347,259
Other debtors
1,124,572
701,624
391,419
Prepayments and accrued income
252,766
165,320
10,986,367
9,219,039
391,419
347,259
Amounts falling due after more than one year:
Other debtors
1,159,762
1,028,915
1,159,762
1,028,915
Total debtors
12,146,129
10,247,954
1,551,181
1,376,174
22
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
24
94,466
324,318
Obligations under finance leases
25
1,046,938
1,131,366
Trade creditors
7,653,300
6,824,900
Amounts owed to group undertakings
-
-
4,890,492
4,495,867
Corporation tax payable
434,412
790,995
49,086
255,902
Other taxation and social security
196,664
160,608
-
-
Other creditors
434,652
380,233
Accruals and deferred income
649,319
619,780
10,509,751
10,232,200
4,939,578
4,751,769
EUROGOLD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 34 -
23
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
24
138,613
209,307
Obligations under finance leases
25
1,005,143
714,333
1,143,756
923,640
-
-
24
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
233,079
533,625
Payable within one year
94,466
324,318
Payable after one year
138,613
209,307
The long-term bank loan is secured by way of a first legal charge over the freehold property of the group.
The bank hold a debenture in relation to the overdraft facility which is secured against all assets of the group.
The bank loan is a repayment loan with an interest rate of 2.50% over Bank of England Base Rate and is due to be settled by April 2026.
25
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
1,047,557
1,131,366
In two to five years
1,004,524
714,333
2,052,081
1,845,699
-
-
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery and motor vehicles. 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.
EUROGOLD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 35 -
26
Deferred taxation
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
1,316,068
1,224,402
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 October 2023
1,224,402
-
Charge to profit or loss
91,666
-
Liability at 30 September 2024
1,316,068
-
27
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
54,563
76,916
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.
28
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
29
Merger reserve
2024
2023
Group and company
£
£
At the beginning and end of the year
2,923,302
2,923,302
EUROGOLD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 36 -
30
Profit and loss reserves
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
11,569,464
11,494,244
15,109
1,762
Profit for the year
934,023
1,095,041
1,156,995
1,033,168
Dividends
(1,169,798)
(1,019,821)
(1,169,798)
(1,019,821)
At the end of the year
11,333,689
11,569,464
2,306
15,109
31
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
213,063
258,181
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2024
2023
£
£
Group
Other related parties
-
13,894
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Other related parties
74,745
71,020
Other information
EUROGOLD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
31
Related party transactions
(Continued)
- 37 -
Group
The group has taken advantage of FRS 102, section 33.1A available for transactions with wholly owned subsidiaries, and has chosen not to disclose related party transactions within the group.
Amounts due from and to related parties are owed from companies which have common directorship or common shareholding. These amounts are interest free, with no security and are repayable on demand.
Company
The company has taken advantage of FRS 102, section 33.1A available for transactions with wholly owned subsidiaries, and has chosen not to disclose related party transactions within the group.
Amounts due from and to related parties are owed from companies which have common directorship or common shareholding. These amounts are interest free, with no security and are repayable on demand.
32
Directors' transactions
Advances or credits have been granted by the group to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Closing balance
£
£
£
£
Mr D B Brickland -
2.25
1,028,915
106,584
24,263
1,159,762
1,028,915
106,584
24,263
1,159,762
33
Controlling party
By virtue of ownership of 80% of the group's issued share capital, the director is the ultimate controlling party.
EUROGOLD GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 38 -
34
Cash generated from group operations
2024
2023
£
£
Profit after taxation
934,023
1,095,041
Adjustments for:
Taxation charged
469,751
788,342
Finance costs
158,963
136,348
Investment income
(162,382)
(71,582)
Gain on disposal of tangible fixed assets
(27,650)
(7,190)
Fair value gain on plant and machinery
(395,606)
Amortisation and impairment of intangible assets
351,175
351,175
Depreciation and impairment of tangible fixed assets
1,445,368
1,387,605
Other gains and losses
(13,870)
3,427
Movements in working capital:
(Increase)/decrease in stocks
(111,629)
492,654
(Increase)/decrease in debtors
(2,245,253)
4,487,743
Increase/(decrease) in creditors
962,104
(1,441,622)
Cash generated from operations
1,364,994
7,221,941
35
Analysis of changes in net funds - group
1 October 2023
Cash flows
New finance leases
30 September 2024
£
£
£
£
Cash at bank and in hand
6,371,310
(1,927,692)
-
4,443,618
Borrowings excluding overdrafts
(533,625)
300,546
-
(233,079)
Obligations under finance leases
(1,845,699)
1,606,148
(1,812,530)
(2,052,081)
3,991,986
(20,998)
(1,812,530)
2,158,458
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