Company registration number 03475467 (England and Wales)
MAC CONTRACTING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2024
MAC CONTRACTING LIMITED
COMPANY INFORMATION
Directors
Mr M A Clay
Ms N Dunbar
Mr Carl Smith
Company number
03475467
Registered office
Azzurri House
Walsall Road
Aldridge
Walsall
WS9 0RB
Auditor
BK Plus Audit Limited
Azzurri House
Walsall Road
Aldridge
Walsall
WS9 0RB
Business address
Griff Lane
Off St David's Way
Bermuda Park
Nuneaton
CV10 7PP
MAC CONTRACTING LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 24
MAC CONTRACTING LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 JUNE 2024
- 1 -

The directors present the strategic report for the Period ended 30 June 2024.

Principal activities

The principle activity of the company during the period continued to be that of supplying aggregates and stones. Operations are centralised at our Nuneaton site, with established links to multiple sites across the Midlands, enabling it to maintain operational flexibility and respond effectively to market demand.

Review of the business

The periods in the financial statements cover 11 months to 30 June 2024 and 13 months to 31 July 2023 respectively. On an 11 month comparable basis turnover has reduced by £1.37m to £12.2m. However, by managing costs the company has managed to increase its gross profit margin to 16.22% from 13.24%. This margin has still not reached 2021 levels and this is mainly due to continuing substantial cost pressures on fuel and equipment hire during this period that have not been passed onto customers, along with ageing machinery requiring more repair work than in recent years.

 

The upward price pressure on insurance costs and other administrative expenses has continued this period however the company has managed to make an operating profit (excluding exceptional items) of £121,633 (2023 - £25,396).

Principal risks and uncertainties

Credit risk

The risk of payment defaults by customers is minimised by rigorous credit processes for all potential customers prior to agreeing terms of business. Existing customer credit levels are also reviewed regularly to minimise bad debt exposure.

 

Liquidity risk

Ensuring financial stability is a priority for the company. Cash flow and profit forecasts are prepared on a rolling basis to monitor liquidity levels and ensure that adequate funding is in place. The company utilises invoice financing facilities to support working capital requirements and mitigate short-term liquidity risks.

Cost inflation and supply chain risk

The rising cost of fuel, machinery maintenance, and equipment hire presents ongoing challenges. The company actively monitors supplier pricing and evaluates cost-saving initiatives to maintain competitiveness without compromising service levels.

Health and safety

The Board remains committed to upholding the highest health and safety standards for employees, customers, and visitors. Policies and procedures are reviewed regularly to align with industry best practices and legal requirements.

Key performance indicators

The company operates key performance indicators (KPI's) to measure performance in key activities. This provides management with the date and trend analysis required to make timely and informed decisions. The company considers the following to be its key performance indicators:

 

Metric

2024

2023

Change

Gross profit

£1,981,459

£2,126,129

-6.8%

Gross profit margin

16.22%

13.24%

+2.98%

Net profit/loss pre-tax (excluding exceptionals)

Net profit/loss margin (excluding exceptionals)

£58,493

2.95%

-£10,784

-0.51%

+642.4%

+3.46%

 

 

 

 

MAC CONTRACTING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 2 -

On behalf of the board

Mr M A Clay
Director
26 March 2025
MAC CONTRACTING LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 JUNE 2024
- 3 -

The directors present their annual report and financial statements for the Period ended 30 June 2024.

Results and dividends

The results for the Period are set out on page 8.

Ordinary dividends were paid amounting to £219,569. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the Period and up to the date of signature of the financial statements were as follows:

Mr M A Clay
Ms N Dunbar
Mr Carl Smith
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 company’s auditor 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 company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr M A Clay
Director
26 March 2025
MAC CONTRACTING LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 30 JUNE 2024
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

MAC CONTRACTING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MAC CONTRACTING LIMITED
- 5 -
Opinion

We have audited the financial statements of MAC Contracting Limited (the 'company') for the Period ended 30 June 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

MAC CONTRACTING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MAC CONTRACTING LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

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.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

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

 

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.

 

From the preliminary stages of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risk; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.

 

In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:

 

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.

MAC CONTRACTING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MAC CONTRACTING LIMITED (CONTINUED)
- 7 -
Christopher Hession C.A. (Senior Statutory Auditor)
For and on behalf of BK Plus Audit Limited, Statutory Auditor
Chartered Certified Accountants
Azzurri House
Walsall Road
Aldridge
Walsall
WS9 0RB
26 March 2025
MAC CONTRACTING LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 30 JUNE 2024
- 8 -
Period
Period
ended
ended
30 June
31 July
2024
2023
Notes
£
£
Turnover
2
12,219,324
16,054,710
Cost of sales
(10,237,864)
(13,928,581)
Gross profit
1,981,460
2,126,129
Administrative expenses
(1,861,061)
(2,100,733)
Other operating income
1,985
-
0
Exceptional item
3
-
0
1,021,471
Operating profit
4
122,384
1,046,867
Interest receivable and similar income
7
1,903
-
0
Interest payable and similar expenses
8
(65,043)
(36,180)
Profit before taxation
59,244
1,010,687
Tax on profit
9
(27,832)
(20,912)
Profit for the financial Period
31,412
989,775

The profit and loss account has been prepared on the basis that all operations are continuing operations.

MAC CONTRACTING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2024
- 9 -
Period
Period
ended
ended
30 June
31 July
2024
2023
£
£
Profit for the Period
31,412
989,775
Other comprehensive income
-
-
Total comprehensive income for the Period
31,412
989,775
MAC CONTRACTING LIMITED
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 10 -
30 June 2024
31 July 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
36,267
257,089
Current assets
Debtors
12
6,068,861
7,202,572
Cash at bank and in hand
383,983
157,260
6,452,844
7,359,832
Creditors: amounts falling due within one year
13
(3,899,192)
(4,621,270)
Net current assets
2,553,652
2,738,562
Total assets less current liabilities
2,589,919
2,995,651
Creditors: amounts falling due after more than one year
14
(1,922,191)
(2,139,766)
Net assets
667,728
855,885
Capital and reserves
Called up share capital
17
1,001
1,001
Profit and loss reserves
666,727
854,884
Total equity
667,728
855,885

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 26 March 2025 and are signed on its behalf by:
Mr M A Clay
Director
Company registration number 03475467 (England and Wales)
MAC CONTRACTING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
1,001
42,505
43,506
Period ended 31 July 2023:
Profit and total comprehensive income
-
989,775
989,775
Dividends
10
-
(177,396)
(177,396)
Balance at 31 July 2023
1,001
854,884
855,885
Period ended 30 June 2024:
Profit and total comprehensive income
-
31,412
31,412
Dividends
10
-
(219,569)
(219,569)
Balance at 30 June 2024
1,001
666,727
667,728
MAC CONTRACTING LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 JUNE 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
287,221
190,169
Interest paid
(65,043)
(36,180)
Net cash inflow from operating activities
222,178
153,989
Investing activities
Purchase of tangible fixed assets
-
0
(13,860)
Proceeds from disposal of tangible fixed assets
232,216
91,202
Loans made to other entities
-
0
(57,716)
Interest received
1,903
-
0
Net cash generated from investing activities
234,119
19,626
Financing activities
Repayment of bank loans
(10,005)
(12,928)
Dividends paid
(219,569)
(177,396)
Net cash used in financing activities
(229,574)
(190,324)
Net increase/(decrease) in cash and cash equivalents
226,723
(16,709)
Cash and cash equivalents at beginning of Period
157,260
173,969
Cash and cash equivalents at end of Period
383,983
157,260
MAC CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2024
- 13 -
1
Accounting policies
Company information

MAC Contracting Limited is a private company limited by shares incorporated in England and Wales. The registered office is Azzurri House, Walsall Road, Aldridge, Walsall, WS9 0RB.

1.1
Reporting period

The period has been shortened by a month, creating an 11 month period, to bring in line with the reporting period of the company's related parties.

 

The comparative period was extended by a month, creating a 13 month period, to bring in line with the parent company's reporting period, as a result the comparative figures are not entirely comparable.

 

1.2
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.3
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
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:

Plant and equipment
15% reducing balance
Fixtures and fittings
10% reducing balance
Motor vehicles
25% reducing balance
MAC CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

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.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand.

1.8
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

MAC CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
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 company 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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies 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.

Other financial liabilities

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.

MAC CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company 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 company.

1.10
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has 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.

1.11
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.

1.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Turnover and other revenue

Turnover is all generated from one class of business, being the supply of stone and aggregates.

 

All turnover arose within the United Kingdom.

MAC CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
2
Turnover and other revenue
(Continued)
- 17 -
2024
2023
£
£
Other revenue
Interest income
1,903
-
3
Exceptional item
2024
2023
£
£
Expenditure
Amounts due to HMRC
-
(1,021,471)
4
Operating profit
2024
2023
Operating profit for the period is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
15,000
Depreciation of owned tangible fixed assets
4,029
36,293
Profit on disposal of tangible fixed assets
(15,423)
-
Operating lease charges
141,979
187,337
5
Employees

The average monthly number of persons (including directors) employed by the company during the Period was:

2024
2023
Number
Number
Directors
3
3

Their aggregate remuneration comprised:

2024
2023
£
£
Social security costs
4,316
5,248
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
31,004
36,118
MAC CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 18 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
1,903
-
0
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
1,903
-
0
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
15,038
14,450
Interest on invoice finance arrangements
29,041
7,617
Other interest on financial liabilities
20,964
14,113
65,043
36,180
9
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
33,040
-
0
Deferred tax
Origination and reversal of timing differences
16,369
20,912
Other adjustments
(21,577)
-
0
Total deferred tax
(5,208)
20,912
Total tax charge
27,832
20,912
MAC CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
9
Taxation
(Continued)
- 19 -

The actual charge for the Period can be reconciled to the expected charge for the Period based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
59,244
1,010,687
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
14,811
192,031
Tax effect of expenses that are not deductible in determining taxable profit
1,592
6,431
Tax effect of income not taxable in determining taxable profit
-
0
(194,079)
Unutilised tax losses carried forward
-
0
2,458
Effect of change in corporation tax rate
-
0
(7,157)
Permanent capital allowances in excess of depreciation
-
0
(593)
Depreciation on assets not qualifying for tax allowances
-
0
3,333
Other permanent differences
(34)
-
0
Under/(over) provided in prior years
33,040
-
0
Deferred tax adjustments in respect of prior years
(21,577)
18,488
Taxation charge for the period
27,832
20,912
10
Dividends
2024
2023
£
£
Final paid
219,569
177,396
MAC CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 20 -
11
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 August 2023
218,700
355,801
42,218
616,719
Disposals
(218,700)
(304,698)
(42,218)
(565,616)
At 30 June 2024
-
0
51,103
-
0
51,103
Depreciation and impairment
At 1 August 2023
151,771
171,120
36,739
359,630
Depreciation charged in the Period
-
0
4,029
-
0
4,029
Eliminated in respect of disposals
(151,771)
(160,313)
(36,739)
(348,823)
At 30 June 2024
-
0
14,836
-
0
14,836
Carrying amount
At 30 June 2024
-
0
36,267
-
0
36,267
At 31 July 2023
66,929
184,681
5,479
257,089
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,593,047
2,441,650
Corporation tax recoverable
-
0
452,182
Amounts owed by group undertakings
-
0
30,469
Other debtors
2,821,510
3,696,018
Prepayments and accrued income
619,274
552,432
6,033,831
7,172,751
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 16)
35,030
29,821
Total debtors
6,068,861
7,202,572

Amounts owed by group undertakings are interest-free and repayable on demand.

MAC CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 21 -
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
15
15,157
15,157
Payments received on account
1,107,815
627,367
Trade creditors
720,755
868,435
Corporation tax
-
0
419,142
Other taxation and social security
160,168
190,875
Other creditors
1,861,047
2,472,469
Accruals and deferred income
34,250
27,825
3,899,192
4,621,270

The invoice financing included in creditors within one year is secured by an all asset debenture dated 17 May 2017, held with Lloyds Bank Commercial Finance Limited, containing fixed and floating charges over all assets.

14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
134,087
144,092
Other creditors
1,788,104
1,995,674
1,922,191
2,139,766
Amounts included above which fall due after five years are as follows:
Payable by instalments
886,890
1,094,460
15
Loans and overdrafts
2024
2023
£
£
Bank loans
149,244
159,249
Payable within one year
15,157
15,157
Payable after one year
134,087
144,092

The long-term loans issued by Lloyds Bank Plc are secured by fixed charges and floating charges over the company's assets and incur a 6.35% p.a interest rate.

 

MAC CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 22 -
16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
-
29,821
Capital allowance timing differences
35,030
-
35,030
29,821
2024
Movements in the Period:
£
Asset at 1 August 2023
(29,821)
Credit to profit or loss
(5,209)
Asset at 30 June 2024
(35,030)

 

17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,001
1,001
1,001
1,001
18
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
122,466
122,466
Between two and five years
489,864
489,864
In over five years
61,233
173,493
673,563
785,823
19
Ultimate controlling party

The parent company of MAC Contracting Limited is MAC Recycling Limited and its registered office is Azzurri House, Walsall Road, Aldridge, Walsall, England, WS9 0RB.

MAC CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
19
Ultimate controlling party
(Continued)
- 23 -

The ultimate controlling party is Marcus Clay by virtue of his 100% ownership of MAC Recycling Limited.

The following are the parents of the largest and smallest groups in which this company's results are consolidated:

Largest group
MAC Recycling Limited
Smallest group
MAC Recycling Limited

Consolidated accounts are available from the registrar of companies, Companies House, Crown Way, Cardiff, CF14 3UZ.

20
Related party transactions
Transactions with related parties

During the Period the company entered into the following transactions with related parties:

Sales
Sales
Direct costs
Direct costs
2024
2023
2024
2023
£
£
£
£
Other related parties
584,253
755,001
1,489,049
1,725,325
Wages recharged
Hire of equipment
2024
2023
2024
2023
£
£
£
£
Other related parties
3,628,115
3,996,765
1,542,810
2,257,200

In the financial year, the company paid £50,600 (2023 - £110,000) to related parties for management charges.

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due to related parties
£
£
Other related parties
1,034,134
1,763,472

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
-
30,468
Other related parties
2,821,510
3,696,018
MAC CONTRACTING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 24 -
21
Cash generated from operations
2024
2023
£
£
Profit after taxation
31,412
989,775
Adjustments for:
Taxation charged
27,832
20,912
Finance costs
65,043
36,180
Investment income
(1,903)
-
0
Gain on disposal of tangible fixed assets
(15,423)
-
Depreciation and impairment of tangible fixed assets
4,029
36,292
Decrease in provisions
-
0
(2,078,629)
Movements in working capital:
Decrease/(increase) in debtors
686,738
(2,359,016)
(Decrease)/increase in creditors
(510,507)
3,544,655
Cash generated from operations
287,221
190,169
22
Analysis of changes in net funds/(debt)
1 August 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
157,260
226,723
383,983
Borrowings excluding overdrafts
(159,249)
10,005
(149,244)
(1,989)
236,728
234,739
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