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Company Registration Number
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
COMPANY INFORMATION
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
CONTENTS
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors present their strategic report and financial results for the period ended 31 December 2024.
Principal activity The principal activity of the company is that of a construction contractor.
The Meldrum group of companies performed strongly again during 2024, representing the year of consolidation
and preparation for the next phase of growth that we had planned. Reported turnover was broadly flat at £54,324k (2023 - £54,937k), whereas profitability improved substantially at both gross and net profit levels. Inflation, which had presented significant challenges in the previous year, eased significantly during 2024 and the cost increases that had been experienced previously were factored into the pricing of new contracts delivered during the year. This, together with a keen focus on driving efficiencies within all Group Operating Companies and across overhead activities, helped to deliver a much improved gross margin of 15.1% (2023 - 12.1%). Thanks to the stronger margins on contracts, the profit for the year before taxation also improved and finished at £2,467k, equal to 4.54% of turnover (2023 - £1,921k, 3.50%). This was also achieved after a significant 22% increase in overhead spend to £5,806k (2023 - £4,755k) as the group invested in key hires and promotions at board and other levels such as business development and pre-contract/tender support targeted at growing future turnover. Huge focus was also given within the period to succession planning, starting with the transformation in ownership from an individual Director to an Employee Owned Trust (EOT). This transition has been well received by clients, suppliers and staff; and given the success of this process whilst increasing both Group profitability and cash; the board believes the Group has achieved an excellent result in 2024. At the same time as maintaining a keen focus on the profit and loss account, the underlying financial health of the business has been managed carefully. The current ratio (a key performance indicator closely monitored by the board) remained healthy throughout the year, ending 2024 at 1.16. This was a slight reduction on the position at the end of 2023 (1.19), mainly caused by the group moving back into a payment position with respect to corporation tax; without this the ratio would have increased slightly. Cash flow held steady throughout the year to produce a closing balance of £9.8m (2023 - £9.0m) despite significant outflows in relation to the set-up of the Employee Ownership Trust (see below). This reflected the conversion of the increased profits generated during the year into working capital and cash. Detailed business plans and a continued recruitment strategy allowed us to prepare through the period for an anticipated increase in volume through the latter half of 2025 and well into 2026. This anticipated increase has already been seen to be turning into a reality with the Group securing several contracts and signing up to a number of large value PCSA’s guaranteeing the predicted growth through to the end of 2026. At the same time, Business Development initiatives continue to provide positive results with the growth in our pipeline of opportunities to £500m, and circa £120m in value for projects which are down to final stage negotiations alone. 2024 had challenges across the whole construction industry, skilled labour shortages continued across several disciplines which continued to place inflationary demands on wages as companies competed for a smaller pool of available candidates. The group continued working on initiatives to focus further on staff training & development, flexibility, and welfare as well as enhanced remuneration packages to aid with both retention and recruitment. Continued success in this area has been proven, with staff numbers being maintained above the 220 number, and for 2025 we look forward to a year with a stable and motivated workforce.
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The demand for construction activities in 2024 stabilised along with the inflationary pressures witnessed in the
previous two years. However, new economic pressures with the change of Government in the year have become evident which has led to a noticeable ‘slow down’ in decision making due to uncertainty on policy going forward and the tightening of spend across any projects requiring Local or National Authority support. That said, our pipeline as detailed above appears to be strong and eclectic enough to withstand these pressures. The board believes, that despite all the significant economic challenges over the last few years, the Group has demonstrated its remarkable resilience and delivered another improved financial result for 2024. This has allowed further support for our Foundation which continues to grow with greater staff participation than ever before, and aid to further worthy causes amongst local ‘organic’ charities. During 2024 the group invested further and appointed additional members to the board, further strengthening the skills and knowledge, to equip and underpin the wants and needs of the various Operating delivery Companies. We have also invested to allow for a greater geographical reach and allow for a far improved customer service outside of the North East region, with new bases established in Cambridgeshire and Yorkshire. As the financial results continue to show, we have seen really pleasing development within all the individual operating companies, Construction, Civils, Facilities, Building Services and the newly formed Fire Engineering business. The Board monitors the challenges outlined above and those that still exist for the year/years ahead and will no doubt continue. However, given the results recorded over the last three financial years, the growth in both cash at bank and profitability forecasted for this current year and the relationships forged with many clients looking to place repeat business with ourselves; we believe we are well placed and equipped to look to the future with great confidence.
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The board has undertaken an assessment of the principal risks facing the company that are described below with an explanation of how they are mitigated. The board continues to keep the company’s system of risk management and internal control under review to ensure the principal risks remain identified and are appropriately managed.
Health & safety A serious accident in the workplace could cause significant harm to employees, suppliers, customers, members of the public or indeed the company’s reputation and ability to win work. There are weekly and monthly health and safety performance reporting at both operational and board levels. Health and Safety audits are carried out by both company officers and external independent consultants to ensure adherence to both company policies and procedures & HSE legislation. We have refreshed and invented new company wide programmes in order to drive behavioural safety across all staff and departments. This has obviously been extended to include for all latest advice and protocols with regards to safe operating procedures regarding social distancing. Liquidity risk The company managed this by monitoring cash flow to ensure that it is able to meet its foreseeable debts as they fall due and to invest in any surplus cash assets efficiently and securely. Medium and short-term debt facilities, currently unutilised, are in place to ensure the company has sufficient funds available for both day to day operations and any opportunities. Credit risk The company’s principal assets are debtors and work in progress for clients. The credit risk from trade debtors is continuously monitored on a project by project basis during the tender process and consistent with the total trade debt portfolio. Work in progress is converted to billable debtors on a monthly basis and due debts are rigorously collected to contractual terms. General economic conditions Market limitation on availability of new opportunities could put pressure on the business to secure contracts with inadequate margin/risk profiles or within difficult client/contractual arrangement that could adversely impact the company’s performance. The company’s multi-disciplinary experience and early engagement initiatives result in enhanced pre-tender certainty. Tender review meetings and project progress meetings from both technical and cost perspectives provide additional analysis to guide the process of generating attractive new business. Going concern The company has an excellent ‘quality’ pipeline of opportunities, a strong cash balance, and no external debt (other than asset finance). The directors have considered several scenarios and sensitivities in relation to working capital, gross margin reduction and a reduction in the pipeline of opportunities which indicate sufficient headroom within the currently available cash and agreed available funding facilities. Considering the healthy pipeline, current resources along with the positive forecasted future activity of the company and its banking facilities, the directors have no reason not to believe that the company will continue in operation for the foreseeable future.
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Supply chain risk
The company’s continued success is reliant on maintaining strong working relationships with all its suppliers. Significant effort is placed on working with suppliers to ensure minimal disruption to the supply chain with this being a real area of focus, the company will continue to work proactively with suppliers to maintain ongoing product supply.
The management team monitor and report to the board a broad range of financial and non-financial performance indicators. The key metrics for the group to assess the business’ performance are as follows:
Gross profit 2024 2023 2022 Gross profit margin 15.1% 9.5% 7.3% Current ratio 2024 2023 2022 Current ratio 1.16 1.21 1.15 The company remains cash positive and expects the current ratio to remain above the target figure of 1.15 in the 2024 financial year.
This report was approved by the board and signed on its behalf.
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £839,477 (2023 - £660,029).
In respect of the financial year ended 2024, the directors made a payment of dividends to the parent company of £750,321 (2023: £350,000).
The directors who served during the year were:
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Under section 487(2) of the Companies Act 2006, Armstrong Watson Audit Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
We have audited the financial statements of Meldrum Structural and Civil Engineering Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of 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).
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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.
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 Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED (CONTINUED)
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 Auditors' 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: • the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations, such as the Health & Safety at Work Act 1974, Companies Act 2006; • we identified the laws and regulations applicable to the company through discussions with directors and other management; • we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and • identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: • making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and • considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: • performed analytical procedures as a risk assessment tool to identify any unusual or unexpected relationships; • tested journal entries to identify unusual transactions; and • reviewed the application of accounting policies.
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED (CONTINUED)
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
• agreeing financial statement disclosures to underlying supporting documentation; and • enquiring of management as to actual and potential litigation and claims.
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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' 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.
for and on behalf of
Chartered Accountants and Statutory Auditors
Newcastle upon Tyne
23 May 2025
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
REGISTERED NUMBER: 11703185
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 23 form part of these financial statements.
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Meldrum Structural and Civil Engineering Limited ("the company") is a private company limited by shares, incorporated and domiciled in England. The address of the registered office is given in the company information page of these financial statements.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Meldrum Construction Services Group Limited as at 31 December 2024 and these financial statements may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ..
The company is part of a UK group headed by Meldrum Construction Services Group Limited ("the parent") and has support of the parent to meet its liabilities as they fall due.
The company has an excellent ‘quality’ pipeline of opportunities, a strong cash balance, and no external debt (other than asset finance). The directors have considered several scenarios and sensitivities in relation to working capital, gross margin reduction and a reduction in the pipeline of opportunities which indicate sufficient headroom within the currently available cash and agreed available funding facilities. Considering the healthy pipeline, current resources along with the positive forecasted future activity of the company and its banking facilities, the directors have a reasonable expectation that the company will have adequate resources to continue in operational existence for the foreseeable future. Consequently, they continue to prepare the company's financial statements on a going concern basis.
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recovered. When it is probable that the contract cost will exceed the total contract turnover, the expected loss is recognised as an expense immediately.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Significant judgements In preparing these financial statements, significant judgements were required in the process of applying the company’s accounting policies, with regards to going concern in light of the current geopolitical and economic situation. The board’s judgement and analysis are governed by key assumptions which based upon the company’s position and outlook are considered to be reasonable; a) The company’s ability to mitigate inflation risk in contracts; b) Maintenance of a good quality and reliable supply chain. Key sources of estimation uncertainty Revenue recognition – construction contract accounting The judgements and estimates which have the most significant effect on the amounts recognised in the financial statements relate to the application of construction contract accounting. The amount of revenue and profit recognised in relation to contract which are part complete at the balance sheet date is dependent on estimates of further costs that will be required to complete the contract and hence the overall profitability of the contract. Estimates of further costs (and potential revenue variations) are continually evaluated and updated, based on management’s detailed knowledge of project status and contractual requirements. Judgement is then required to assess the reliability of the estimates which is affected by the various factors, including the specific requirements of the contract (i.e. whether ‘routine’ or more specialised in nature) and the stage of completion of the project. The amount of revenue and profit recognised reflects the management’s judgement of these factors. Useful lives of tangible fixed assets The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful lives and residual value of the assets which are re-assessed annually and amended when necessary to reflect current estimates. There have been no changes in the estimation bases during the current reporting period. Impairment of debtors The company makes an estimate of the recoverable value of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile and historical experience.
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
9.Taxation (continued)
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
9.Taxation (continued)
There were no factors that may affect future tax charges.
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MELDRUM STRUCTURAL AND CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors regard
The company and its group was controlled by Mr D M Meldrum up to 30th September 2024. From 1st October 2024, the company and its group was controlled by Meldrum Construction Services Group EOT Limited.
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