Company registration number 03797518 (England and Wales)
GALLAGHER LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
GALLAGHER LIMITED
COMPANY INFORMATION
Directors
Mr P Gallagher
Ms L Gallagher
Mr J Kerrigan
Mr B Lindsay
Mrs K Thistleton
Mr P Thomas
(Appointed 7 March 2025)
Secretary
Mr P Thomas
Company number
03797518
Registered office
Leitrim House, Little Preston
Coldharbour Lane
Aylesford
Maidstone
Kent
ME20 7NS
Auditor
Goldblatts
4th Floor
4 Tabernacle Street
London
EC2A 4LU
Business address
Leitrim House, Little Preston
Coldharbour Lane
Aylesford
Maidstone
Kent
ME20 7NS
Bankers
HSBC
39 High Street
Ashford
Kent
TN24 8TG
Solicitors
DGB Solicitors
The Captain's House
Central Avenue Pembroke
Chatham Maritime
Kent
ME4 4UF
GALLAGHER LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 24
GALLAGHER LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

The directors present the strategic report for the year ended 30 September 2024.

Review of the business

During the year, the Company generated turnover of £121 million (2023: £109 million), a gross profit of £26.2 million (2023: £24.0 million) and an operating profit of £14.1 million (2023: £11.5 million), providing an 11.6% return on sales (2023: 10.6%).

Market conditions remained challenging in the year, however inflation dropped from peaks in 2022 and interest rates have started to reduce. Even with these conditions, turnover increased by 12%. The increase in turnover is largely due to our continued emphasis on delivering “excellence” for our customers which enables us to win work with trusted clients. We have also broadened our geographical reach without compromising on service and quality levels. The Company remains very proud of its staff and contractors who continue to work to a very high standard.

Gross profit at 22% is in line with the 22% achieved last year as we continue to control and minimise the inflationary impact of cost increases on materials and labour. Overheads decreased marginally by £0.3 million; during 2023 we undertook an exercise to strengthen the back office team to ensure higher value projects can be delivered efficiently. Our net operating profit of £14.1 million is up £2.6 million on the previous year.

A dividend of £10 million was declared and paid to the Parent Company during the year, with a further £8.5m paid after the year end in December 2024.

Future Prospects

The Company has entered the new financial year with a strong order book and a good level of tenders. General inflation levels have reduced, which should provide some confidence to the market, however are still above target levels. Obtaining good quality labour is easier than it once was because the demand from the residential market has reduced, releasing some good quality operatives, however the wider industry is still under pressure of skills shortages. Interest rates remain high, however have fallen recently, albeit at a slower rate than previously expected. We expect trading levels to be at slightly higher levels during 24/25 than in 23/​24.

Gallagher has positioned itself as the “go to” contractor in Kent and the Southeast if you want a high-quality solution. We work in a variety of sectors, and for numerous clients predominantly in Kent and the South-East but also, and increasingly so, outside this area with existing clients.

Principal risks and uncertainties

There are a number of potential risks and uncertainties which could impact the Company’s performance, and these are considered by the Board on a regular basis. The Board of Directors and the relevant management teams consider the risks of all significant business decisions and changes in the external environment and in the Company’s operations. The key risks affecting the business are as follows:

Operating Risk – the Company’s reputation and continued success depends on its ability to provide services which are valued by its customers. The Company regularly reviews the quality of its services both internally and externally through client feedback and evaluation to ensure the reputation of the Company is maintained at a high level with all stakeholders.

Market Risk – the Company operates in a specialised market and seeks to maintain a competitive advantage by offering an appropriate and relevant service range and providing a high level of customer service from professional and dedicated staff. The Company keeps abreast of developments in the market through maintaining regular dialogue with its clients and monitoring competitors and the wider economic environment.

Personnel Risk – the Company is a privately-owned business and places great emphasis on recruiting, training, rewarding and retaining high quality people. The Directors consider staff resourcing and succession planning on a regular basis. We promote from within whenever we can to maintain the Company culture. We also embrace new people from elsewhere as they bring fresh ideas and the benefits of their experience.

GALLAGHER LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -

Financial Risk – the Company is principally funded from retained profits. Financial monitoring, forecasting, and planning are ever present processes with the care taken to achieve a reasonable profit margin and investment in resources whilst maintaining delivery of a high-quality service to customers.

Taxation Risk – the Company is exposed to financial risks from increases in tax rates and the basis of taxation including corporation tax and VAT. Principal controls include regular monitoring of legislative proposals, the engagement of executives and the use of experienced sector specific professional advisers to mitigate the impact of any changes and ensure compliance.

Information Technology – the Company relies heavily on systems to operate its business, ordering goods, paying suppliers, ensuring health and safety records are accurate, accounting and payroll. The risk of cyber-attacks is ever present and an increasing risk to every business. Ensuring we have robust and up-to-date cyber security measures and vigilant users is critical to the successful running of these systems, as well as employing appropriately skilled and experienced staff and external specialist support as required.

Health and Safety and Environmental Management

The Company considers health, safety, and environmental management to be a top priority within the business. We approach the subjects in a responsible, practical and pragmatic manner, concentrating on the things that make a difference. We are ISO45001 accredited, have reformed our QA systems through Flowforma; use Chime time and attendance which has provided a live training matrix for our projects in addition to using Skillko to assist management of our training needs. We have a positive and professional attitude to these subjects led by the Directors and senior managers who are required to set a good example.

To achieve high standards, we make sure we have the correct, competent, trained people and modern well-maintained plant and equipment. Our management systems and policies provide clear guidance and monitoring/​​reporting and analysis of performance and incidents. Our internal resources are audited and supported by external industry experts, with “prevention”, “learning from experience” and “continuous improvement” being the underlying themes. During 2023, the HSQE management systems have been reassessed and externally certified as compliant by Achilles Building Confidence, ISO 9001 and ISO 14001 and Construction line Level 3 Gold. In 2021 we also gained certification to ISO 45001. We continue to focus on the Health and Safety requirements of the business and believe we have put in place processes and procedures that ensure a high level of safety for our staff, customers and suppliers.

Development and performance

The balance sheet on page 11 of the financial statements show that the company's financial position at the year end is strong, in both net assets and liquidity terms.

Key performance indicators

 

                2024    2023    2022     2021    2020            

 

Turnover £ m            121.2    108.7    92.2    120.6    70.5

Gross Profit £’m            26.2    24.0    15.4    21.5    13.0

Gross Profit %            21.6%    22.1%    16.7%    17.8%    18.5%

Operating Profit £’m        14.1    11.5    8.0    12.3    6.0

Operating Margin %        11.6%    10.6%    8.6%    10.2%    8.5%

 

 

 

GALLAGHER LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
Other performance indicators

We measure and analyse a number of non-financial criteria in order to monitor our performance and to help identify trends, good or bad, including:

 

Health & Safety – RIDDOR accidents, minor accidents, Tool Box Talks, Near Miss reports, Service strikes and rolling AFR (Accident Frequency Rate)

 

Staff turnover – staff who leave and the reasons thereto.

 

Enquiry success rate for tenders and price estimates.

 

Payments to suppliers

We respect the role that suppliers play in the success of the business and as such we aim to pay suppliers to the agreed terms. Our policy is to pay suppliers 45 days from the end of the month of delivery. Other terms can be agreed.

Statement in respect of Section 172 (1) Companies Act 2006 for the Accounting Period ending 30th September 2024

The Company is owned by Gallagher Group Limited which is in turn owned by Gallagher Group Holdings Limited. Within the legal Group of companies is also Gallagher Plant Limited. Gallagher Group Holdings Limited is owned by P Gallagher Limited, which is ultimately controlled by a family of shareholders. The same shareholders also ultimately control Gallagher Aggregates Limited, they are not part of the same legal Group of companies.

The principal activity of Gallagher Limited is that of groundwork, civil engineering and principal sub- contracting. The management define the success of the business as long-term value creation for all parts of the Gallagher Group and associated companies. Working together to provide efficient solutions that can use all elements of the group of companies’ resources, contracting, aggregates, concrete, masonry, recycling, property investment and property development.

The Board is committed to and actively encourages effective relationships and communications with all the Company’s stakeholders to obtain a greater understanding of each other’s needs and objectives. This way we can optimise the long-term value creation and success of the Company. The Company has identified the following key stakeholders and explains how the Board considers their interests.

Shareholders: The Company is ultimately controlled by a family of shareholders, who also take an active role in managing the business along with the Executives. The Board has a very close dialogue with the shareholders through regular discussions, Board meetings and routine financial and operational reporting. These processes ensure that the long-term strategy of the business is aligned with their expectations. Annual detailed Budgets and 3-year Business plans are prepared, presented, discussed and approved by the Board that are aligned to the shareholders' goals. Decisions are made at regular Board and Management meetings. Governance is established using an Authority Schedule and the inclusion of 2 experienced non-executive Directors who liaise closely with the shareholders and Executive team and family members through the Family Council forum.

Colleagues: The Company is a family business and recognises the hugely important role that staff have in making the business successful. It prides itself on having the best people to create strong teams and who all essentially care for the business. We aim to be the employer of choice offering both formal and informal training for all. Gallagher’s culture is to instill pride in our work and ensure quality workmanship prevails throughout the workplace. We want everyone to feel part of the family by making people feel valued, engaged, and safe.

Customers and Suppliers: The Company wants to be first choice for value-minded clients, our values state that we are customer-focused, we listen and are eager to learn, we are passionate and confident, we are solution-driven, we are a business of character, and we work as a team. This will ensure that our customers’ needs are met. Delivering high-quality solutions will lead to repeat business. We equally recognise that along with our staff we rely heavily on like-minded suppliers of materials and services. We aim to treat our suppliers with respect and will work with them to ensure their needs are met. Suppliers delivering high levels of service and quality are met with loyalty from the Company.

GALLAGHER LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -

Environment: The Company is aware of the increasing need to protect the environment and has recently completed its fifth Streamlined Energy and Carbon report. It aims to be carbon neutral and is reviewing its use of fuels as well as other carbon reduction related projects. Our Social Value report has also just been updated and shows that the Group continues to add significant economic and social value to the area in which it operates, South East England. The Company is a large employer of local people and a large user of local suppliers and services. It also makes material donations to local and national charities and encourages employees to complete charitable work across the community.

 

By order of the board

Mr P Thomas
Secretary
10 June 2025
GALLAGHER LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -

The directors present their annual report and financial statements for the year ended 30 September 2024.

Principal activities

The Company’s principal activity is that of groundwork, civil engineering, and Principal sub-contracting. We continue to be selective with the external building projects we undertake.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £10,000,000. The directors do not recommend payment of a final dividend.

Directors

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

Mr P Gallagher
Ms L Gallagher
Mr J Kerrigan
Mr B Lindsay
Mr L Taylor
(Resigned 17 November 2023)
Mr I Perkins
(Resigned 7 March 2025)
Mrs K Thistleton
Mr P Thomas
(Appointed 7 March 2025)
Financial instruments
Treasury operations and financial instruments

The company's principal financial instruments comprise bank balances, trade creditors, trade debtors and work in progress. The main purpose of these instruments is to raise funds for the company's operations and to finance the company's operations.

Liquidity risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The company is subject to the risk of interest rate fluctuations, with it affecting its interest earning operations. In respect of loans from group undertakings and companies under common control, these are interest free.

Auditor

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

Energy and carbon report

The company has consumed more than 40,000 kWh of energy in this reporting period and has therefore prepared a SECR report for the financial year to September 2024 on its emissions, energy consumption and energy efficiency activities. The information from this report has been included in the consolidated financial statements prepared by Gallagher Group Holdings Limited.

GALLAGHER LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 6 -
Statement of directors' responsibilities

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

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

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments and the need to foster business relationships with suppliers, customers and others.

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.

By order of the board
Mr P Thomas
Secretary
10 June 2025
GALLAGHER LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GALLAGHER LIMITED
- 7 -
Opinion

We have audited the financial statements of Gallagher Limited (the 'company') for the year ended 30 September 2024 which comprise 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:

GALLAGHER LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GALLAGHER LIMITED (CONTINUED)
- 8 -
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.

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;

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

GALLAGHER LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GALLAGHER LIMITED (CONTINUED)
- 9 -

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from the financial transactions, the less likely it is that we would become aware or any possible non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of directors and other management and the inspection of regulatory and legal correspondence, if any.

 

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.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Mary Gregori FCA, FCCA (Senior Statutory Auditor)
For and on behalf of Goldblatts, Statutory Auditor
Chartered Accountants
4th Floor
4 Tabernacle Street
London
EC2A 4LU
10 June 2025
GALLAGHER LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
121,190,495
108,737,502
Cost of sales
(94,972,718)
(84,757,004)
Gross profit
26,217,777
23,980,498
Administrative expenses
(12,151,362)
(12,440,719)
Operating profit
4
14,066,415
11,539,779
Interest receivable and similar income
8
911,992
508,372
Interest payable and similar expenses
9
(23,875)
-
0
Profit before taxation
14,954,532
12,048,151
Tax on profit
10
(3,678,257)
(2,292,318)
Profit for the financial year
11,276,275
9,755,833

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

GALLAGHER LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
308,165
533,043
Current assets
Debtors
14
17,994,243
25,600,250
Cash at bank and in hand
23,301,643
21,547,841
41,295,886
47,148,091
Creditors: amounts falling due within one year
15
(25,979,415)
(33,332,773)
Net current assets
15,316,471
13,815,318
Net assets
15,624,636
14,348,361
Capital and reserves
Called up share capital
18
1,000,000
1,000,000
Profit and loss reserves
14,624,636
13,348,361
Total equity
15,624,636
14,348,361
The financial statements were approved by the board of directors and authorised for issue on 10 June 2025 and are signed on its behalf by:
Mr P Gallagher
Mr P Thomas
Director
Director
Company registration number 03797518 (England and Wales)
GALLAGHER LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
1,000,000
9,692,528
10,692,528
Year ended 30 September 2023:
Profit and total comprehensive income
-
9,755,833
9,755,833
Dividends
11
-
(6,100,000)
(6,100,000)
Balance at 30 September 2023
1,000,000
13,348,361
14,348,361
Year ended 30 September 2024:
Profit and total comprehensive income
-
11,276,275
11,276,275
Dividends
11
-
(10,000,000)
(10,000,000)
Balance at 30 September 2024
1,000,000
14,624,636
15,624,636
GALLAGHER LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
14,762,309
21,625,981
Interest paid
(23,875)
-
0
Dividends paid
(10,000,000)
(8,700,000)
Income taxes paid
(3,960,283)
(2,351,658)
Net cash inflow from operating activities
778,151
10,574,323
Investing activities
Purchase of tangible fixed assets
(26,854)
(450,832)
Proceeds from disposal of tangible fixed assets
90,513
33,328
Interest received
911,992
508,372
Net cash generated from investing activities
975,651
90,868
Net increase in cash and cash equivalents
1,753,802
10,665,191
Cash and cash equivalents at beginning of year
21,547,841
10,882,650
Cash and cash equivalents at end of year
23,301,643
21,547,841
GALLAGHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
1
Accounting policies
Company information

Gallagher Limited is a private company limited by shares incorporated in England and Wales. The registered office is Leitrim House, Little Preston, Coldharbour Lane, Aylesford, Maidstone, Kent, ME20 7NS.

1.1
Accounting convention

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

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

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

1.2
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.

1.3
Turnover

Turnover represents amounts receivable for goods and construction services net of VAT and trade discounts. Sales are recognised on the basis of work measured, valued and certified at the year end.

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. Bank interest accruing on capital borrowed to fund the production of long term contracts is carried forward within long term contract balances.

GALLAGHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.4
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 machinery
33% straight line
Motor vehicles
25% straight line

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.

1.5
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.

1.6
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.

GALLAGHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.7
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.

 

2
Judgements and key sources of estimation uncertainty

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

 

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

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Stage of completion for ongoing contracts

The amounts due from contract customers requires the company to make a judgement in relation to the stage of completion of the contracts ongoing at the year end. Management are provided with internal valuations by experienced personnel based on the costs incurred to date and the terms and conditions of the contract.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Construction services
121,190,495
108,737,502
2024
2023
£
£
Other revenue
Interest income
911,992
508,372

The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the United Kingdom.

GALLAGHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
218,049
219,500
Profit on disposal of tangible fixed assets
(56,830)
(33,328)
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
34,250
25,250
For other services
Taxation compliance services
1,150
1,300
All other non-audit services
800
5,768
1,950
7,068
6
Employees

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

2024
2023
Number
Number
2
2

The company has no direct employees, all labour was supplied by Gallagher Resources Limited, including those paid under contract of service agreements.

 

The aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
4,883,070
3,988,645
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
142,023
135,796

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

GALLAGHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
883,494
504,542
Interest receivable from group companies
-
0
3,830
Other interest income
28,498
-
0
Total income
911,992
508,372
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
883,494
508,372
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
23,875
-
0
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
3,694,063
2,293,396
Deferred tax
Origination and reversal of timing differences
(15,806)
(1,078)
Total tax charge
3,678,257
2,292,318
GALLAGHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
10
Taxation
(Continued)
- 19 -

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
14,954,532
12,048,151
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.00%)
3,738,633
2,650,593
Tax effect of expenses that are not deductible in determining taxable profit
18,187
8,086
Permanent capital allowances in excess of depreciation
1
(812)
Group relief
(78,564)
(365,549)
Taxation charge for the year
3,678,257
2,292,318
11
Dividends
2024
2023
£
£
Interim paid
10,000,000
6,100,000
12
Tangible fixed assets
Plant and machinery
Motor vehicles
Total
£
£
£
Cost
At 1 October 2023
1,131,619
612,543
1,744,162
Additions
26,854
-
0
26,854
Disposals
(5,450)
(185,017)
(190,467)
At 30 September 2024
1,153,023
427,526
1,580,549
Depreciation and impairment
At 1 October 2023
954,802
256,317
1,211,119
Depreciation charged in the year
112,680
105,369
218,049
Eliminated in respect of disposals
(5,450)
(151,334)
(156,784)
At 30 September 2024
1,062,032
210,352
1,272,384
Carrying amount
At 30 September 2024
90,991
217,174
308,165
At 30 September 2023
176,817
356,226
533,043
GALLAGHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
13
Construction contracts
2024
2023
£
£
Contracts in progress at the reporting date
Gross amounts owed by contract customers included in debtors
6,816,171
8,351,773
2024
2023
Other construction contract balances
£
£
Retentions held by customers for contract work
3,919,657
3,585,919
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
9,223,344
15,774,999
Gross amounts owed by contract customers
6,816,171
8,351,773
Amounts owed by group undertakings
328,840
176,946
Other debtors
884,475
711,975
Prepayments and accrued income
674,835
533,785
17,927,665
25,549,478
Deferred tax asset (note 16)
66,578
50,772
17,994,243
25,600,250

The amounts owed by group undertakings, companies under common control and other related parties (included within other debtors) are interest free, with no security and no fixed repayment terms.

 

15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Trade creditors
5,319,712
5,677,525
Amounts owed to group undertakings
2,907,775
2,510,152
Corporation tax
613,424
879,644
Other taxation and social security
55,025
412,360
Deferred income
17
5,241,425
6,228,761
Other creditors
1,611,128
2,343,583
Accruals and deferred income
10,230,926
15,280,748
25,979,415
33,332,773

The amounts owed to group undertakings, companies under common control and other related parties (included in other creditors) are interest free, with no security, and no fixed repayment terms.

GALLAGHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
16
Deferred taxation

Deferred tax assets and liabilities are offset where the 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:

Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
66,578
50,772
2024
Movements in the year:
£
Asset at 1 October 2023
(50,772)
Credit to profit or loss
(15,806)
Asset at 30 September 2024
(66,578)

We are expecting a net increase in the deferred tax asset amounting to £4,234 in the next 12 months due to the depreciation rate used being in excess of the written down allowances.

17
Deferred income
2024
2023
£
£
Other deferred income
5,241,425
6,228,761
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000,000
1,000,000
1,000,000
1,000,000
GALLAGHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
19
Related party transactions
Transactions with related parties

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

Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Companies under common control
393,319
479,977
4,045,137
3,492,774
Key management personnel
-
-
910,743
756,091
Other related parties
1,074,926
491,732
4,883,070
4,316,500
Loan interest received
2024
2023
£
£
Other related parties
-
3,830

The sales above are provided in the course of normal operations.

 

The loan interest received in 2023 was inline with the loan agreement.


Included in the purchases from companies under common control are the following significant transactions concluded in the course of normal operations.

Materials £4,021,379 (2023 - £3,478,419).

 

Included in the purchases from related parties are the following significant transactions concluded in the course of normal operations.

 

Labour £4,883,070 (2023 - £4,315,500).

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
2,296,043
1,935,644
Fellow subsidiary
611,732
574,508
Companies under common control
672,965
703,544
Key management personnel
454,610
200,000
Other related parties
-
277,496
GALLAGHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
19
Related party transactions
(Continued)
- 23 -

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
328,840
176,946
Companies under common control
-
19,505
Other related parties
408,114
577,709
20
Ultimate controlling party

The immediate parent company of Gallagher Limited is Gallagher Group Limited, who is ultimately controlled by P Gallagher Limited.

Until 30 September 2024 the company was ultimately controlled by Mr. P Gallagher, who owned 100% of the issued share capital of Gallagher Group Holdings Limited.

 

On the same date, P Gallagher Limited acquired the shares in Gallagher Group Holdings Limited.

 

Gallagher Group Limited and Gallagher Group Holdings Limited's registered office is Leitrim House, Little Preston, Aylesford, Kent ME20 7NS. P Gallagher Limited's registered office is 4th Floor, 4 Tabernacle Street, London, United Kingdom, ECA 4LU.

 

At the year end no one individual controls the company.

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

Largest group
P Gallagher Limited
Smallest group
Gallagher Group Holdings Limited

Both sets of consolidated financial statements and copies can be obtained from - The Company Secretary, Leitrim House, Little Preston, Aylesford, Kent ME20 7NS.

GALLAGHER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
21
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
11,276,275
9,755,833
Adjustments for:
Taxation charged
3,678,257
2,292,318
Finance costs
23,875
-
0
Investment income
(911,992)
(508,372)
Gain on disposal of tangible fixed assets
(56,830)
(33,328)
Depreciation and impairment of tangible fixed assets
218,049
219,500
Movements in working capital:
Decrease/(increase) in debtors
7,621,813
(7,116,269)
(Decrease)/increase in creditors
(6,099,802)
11,793,673
(Decrease)/increase in deferred income
(987,336)
5,222,626
Cash generated from operations
14,762,309
21,625,981
22
Analysis of changes in net funds
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
21,547,841
1,753,802
23,301,643
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