Company registration number SC458759 (Scotland)
KILMAC LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
KILMAC LTD
COMPANY INFORMATION
Directors
Mr A McDonald
Mr R G Kilcullen
Mrs K McDonald
Mrs G L Kilcullen
Mr J J Wilson
Mrs J Scobie
Mr L A Wilkie
Company number
SC458759
Registered office
Delta House
Gemini Crescent
Dundee
United Kingdom
DD2 1SW
Auditor
Azets Audit Services
5 Whitefriars Crescent
Perth
United Kingdom
PH2 0PA
KILMAC LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
KILMAC LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 September 2024.
The company undertakes civil engineering projects and acts as a groundworks contractor for commercial and social infrastructure and housing projects throughout Scotland. The company has an experienced and qualified team who have the knowledge and capability to undertake a wide scope of projects on time, on budget, safely and defect free. The company prides itself on delivery of a professional service adding value to any project it is involved in.
Review of Business
The directors consider that the company has performed well during the year and are pleased with the overall trading results achieved in a challenging economy.
The company's turnover increased by £3.36m with the gross profit percentage being 31% (2023: 27%). In 2024, the net profit before tax amounted to £2.48m (2023: £1.71m) with the net profit margin being 8.29% (2023: 6.43%). The net assets of the company at the year end amounted to £0.72m (2023: £0.41m).
The construction industry and general business environment in which the company operates continues to be highly competitive. The directors are aware that the future performance of the company will be directly affected by circumstances prevailing in the UK economy, but believe that the good flow of future work and constant assessment and review of costs, will ensure future prosperity of the business.
Principal Risks and Uncertainties
It is company policy that an ongoing and active interest is taken in evaluating and managing the risk inherent in operating contracts at all stages from tender to completion.
The directors recognise that the main risks are as follows:
- Environmental Risk: The construction industry faces potential repercussions from the wider public and Government entities due to the harm created to the natural environment from the work undertaken. The company is fully accredited to ISO 14001 and its environmental policies and procedures are reviewed frequently. These are also subject to external audit yearly.
- Health and Safety Risk: This is managed through the company's policies and procedures and the quality of their management team. The company's policies and procedures are reviewed frequently.
- Credit Risk: The company assesses the credit risk applicable to customers to ensure that credit is not extended where there is a likelihood of default.
- Liquidity Risk: Liquidity Risk reflects the risk that the company will have insufficient reserves to meet its financial liabilities as they fall due. The directors' objective is to ensure adequate funding is available within the company to finance the business.
Key Performance Indicators
A summary of the results of the trading for the period ended 30 September 2024 is given within the attached financial statements. The company's key performance indicators are turnover and profit. The directors strive to maintain and develop the company and the various projects in which it is involved.
Mrs J Scobie
Director
25 June 2025
KILMAC LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
The directors present their annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company continued to be that of civil engineering projects and acting as a groundwork contractor for commercial and social infrastructure and housing projects throughout Scotland.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. 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 A McDonald
Mr R G Kilcullen
Mrs K McDonald
Mrs G L Kilcullen
Mr J J Wilson
Mrs J Scobie
Mr L A Wilkie
Auditor
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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:
select suitable accounting policies 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 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.
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.
KILMAC LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
On behalf of the board
Mrs J Scobie
Director
25 June 2025
KILMAC LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KILMAC LTD
- 4 -
Opinion
We have audited the financial statements of Kilmac Ltd (the 'company') for the year ended 30 September 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:
give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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.
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:
the information given in the strategic report and the directors' truereport 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.
KILMAC LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KILMAC LTD
- 5 -
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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of 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.
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.
KILMAC LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KILMAC LTD
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Sally Cheeney
Senior Statutory Auditor
For and on behalf of Azets Audit Services
Chartered Accountants
Statutory Auditor
5 Whitefriars Crescent
Perth
United Kingdom
PH2 0PA
KILMAC LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
29,938,539
26,574,568
Cost of sales
(20,562,660)
(19,279,702)
Gross profit
9,375,879
7,294,866
Administrative expenses
(7,034,101)
(5,552,801)
Other operating income
91,830
1,600
Operating profit
4
2,433,608
1,743,665
Interest receivable and similar income
7
101,834
3,998
Interest payable and similar expenses
8
(53,629)
(39,235)
Profit before taxation
2,481,813
1,708,428
Tax on profit
9
(637,582)
(374,661)
Profit for the financial year
1,844,231
1,333,767
The profit and loss account has been prepared on the basis that all operations are continuing operations.
KILMAC LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
£
£
Profit for the year
1,844,231
1,333,767
Other comprehensive income
-
-
Total comprehensive income for the year
1,844,231
1,333,767
KILMAC LTD
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,551,743
1,026,063
Current assets
Stocks
11
2,000
2,000
Debtors
12
5,478,634
4,871,202
Cash at bank and in hand
3,438,237
3,366,509
8,918,871
8,239,711
Creditors: amounts falling due within one year
13
(9,193,443)
(8,228,741)
Net current (liabilities)/assets
(274,572)
10,970
Total assets less current liabilities
1,277,171
1,037,033
Creditors: amounts falling due after more than one year
14
(294,866)
(436,707)
Provisions for liabilities
Deferred tax liability
16
264,855
187,107
(264,855)
(187,107)
Net assets
717,450
413,219
Capital and reserves
Called up share capital
18
100
100
Profit and loss reserves
19
717,350
413,119
Total equity
717,450
413,219
The financial statements were approved by the board of directors and authorised for issue on 25 June 2025 and are signed on its behalf by:
Mrs J Scobie
Director
Company Registration No. SC458759
KILMAC LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 October 2022
100
1,229,352
1,229,452
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
1,333,767
1,333,767
Transfers
-
(2,150,000)
(2,150,000)
Balance at 30 September 2023
100
413,119
413,219
Year ended 30 September 2024:
Profit and total comprehensive income for the year
-
1,844,231
1,844,231
Transfers
-
(1,540,000)
(1,540,000)
Balance at 30 September 2024
100
717,350
717,450
KILMAC LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,943,890
6,299,840
Interest paid
(53,629)
(39,235)
Income taxes paid
(388,403)
(164,336)
Net cash inflow from operating activities
1,501,858
6,096,269
Investing activities
Purchase of tangible fixed assets
(754,643)
(95,624)
Proceeds from disposal of tangible fixed assets
73,075
12,950
Repayment/(issue) of loans
1,174,613
(1,196,051)
Interest received
101,834
3,998
Net cash generated from/(used in) investing activities
594,879
(1,274,727)
Financing activities
Transfer from reserves
(1,540,000)
(2,150,000)
Payment of finance leases obligations
(485,009)
(373,269)
Net cash used in financing activities
(2,025,009)
(2,523,269)
Net increase in cash and cash equivalents
71,728
2,298,273
Cash and cash equivalents at beginning of year
3,366,509
1,068,236
Cash and cash equivalents at end of year
3,438,237
3,366,509
KILMAC LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
1
Accounting policies
Company information
Kilmac Ltd is a private company limited by shares incorporated in Scotland. The registered office is Delta House, Gemini Crescent, Dundee, United Kingdom, DD2 1SW.
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 consists of the sales value, excluding VAT, of work in the period under contracts to supply goods and services to third parties. It includes the relevant proportion of contract value for performance up to the period end.
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 equipment
25% on reducing balance
Fixtures and fittings
25% on reducing balance
Computers
25% on reducing balance
Motor vehicles
25% on reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
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.
KILMAC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of income received for work performed to date compared to the estimated total contract income.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
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.
KILMAC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
KILMAC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
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.
1.11
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.
KILMAC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
KILMAC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
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.
Accounting for long term contracts
The company estimates the outcome of its construction contracts. This is normally measured by total costs incurred to date plus the relevant proportion of expected profit for that contract.
Estimated profits are based on management's detailed budgets and projections.
Where management judge that 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 they will be recoverable.
Contract costs are recognised as expenses in the period in which they are incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.
Provisions for long term contracts
The amount recognised as a provision on long term contracts is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Construction
29,938,539
26,574,568
2024
2023
£
£
Other revenue
Interest income
101,834
3,998
Grants received
91,830
1,600
KILMAC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(91,830)
(1,600)
Fees payable to the company's auditor for the audit of the company's financial statements
19,180
20,120
Depreciation of owned tangible fixed assets
266,780
79,027
Depreciation of tangible fixed assets held under finance leases
266,761
271,232
Profit on disposal of tangible fixed assets
(18,047)
(4,513)
Operating lease charges
130,988
109,610
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Director
7
7
Direct Labour
93
93
Office Staff
60
55
Total
160
155
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
7,632,014
7,212,610
Social security costs
826,575
696,172
Pension costs
907,719
319,457
9,366,308
8,228,239
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
518,651
396,497
Company pension contributions to defined contribution schemes
656,042
166,542
1,174,693
563,039
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 7 (2023 - 4).
KILMAC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
6
Directors' remuneration
(Continued)
- 19 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
140,600
86,827
Company pension contributions to defined contribution schemes
61,321
3,900
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
87,119
Other interest income
14,715
3,998
Total income
101,834
3,998
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
87,119
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
12,325
11,744
Other finance costs:
Interest on finance leases and hire purchase contracts
41,304
27,491
53,629
39,235
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
559,834
388,376
Deferred tax
Origination and reversal of timing differences
77,748
(13,715)
Total tax charge
637,582
374,661
KILMAC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
9
Taxation
(Continued)
- 20 -
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
2,481,813
1,708,428
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
620,453
427,107
Tax effect of expenses that are not deductible in determining taxable profit
1,407
51,563
Effect of change in corporation tax rate
(52,796)
Timing differences
77,748
(13,715)
Capital allowances in excess of depreciation
(62,053)
(37,498)
Amount Left on Account
27
Taxation charge for the year
637,582
374,661
10
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 October 2023
492,538
42,667
161,141
1,549,176
2,245,522
Additions
138,907
23,103
6,311
945,928
1,114,249
Disposals
(235,034)
(235,034)
At 30 September 2024
631,445
65,770
167,452
2,260,070
3,124,737
Depreciation and impairment
At 1 October 2023
246,667
27,500
120,436
824,856
1,219,459
Depreciation charged in the year
96,198
9,574
16,523
411,246
533,541
Eliminated in respect of disposals
(180,006)
(180,006)
At 30 September 2024
342,865
37,074
136,959
1,056,096
1,572,994
Carrying amount
At 30 September 2024
288,580
28,696
30,493
1,203,974
1,551,743
At 30 September 2023
245,871
15,167
40,705
724,320
1,026,063
KILMAC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
10
Tangible fixed assets
(Continued)
- 21 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant and equipment
214,380
207,141
Motor vehicles
585,922
635,152
800,302
842,293
11
Stocks
2024
2023
£
£
Raw materials and consumables
2,000
2,000
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,055,752
1,560,862
Other debtors
325,799
1,864,946
Prepayments and accrued income
451,766
279,577
3,833,317
3,705,385
2024
2023
Amounts falling due after more than one year:
£
£
Trade debtors
1,645,317
1,165,817
Total debtors
5,478,634
4,871,202
KILMAC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
15
357,580
341,142
Payments received on account
3,678,654
2,509,593
Trade creditors
3,034,424
3,431,068
Corporation tax
559,807
388,376
Other taxation and social security
174,228
212,724
Other creditors
326,740
298,054
Accruals and deferred income
1,062,010
1,047,784
9,193,443
8,228,741
Banking facilities are secured by way of standard securities and floating charges. Hire purchase liabilities are secured over the assets financed.
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
15
294,866
436,707
15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
357,580
341,142
In two to five years
294,866
436,707
652,446
777,849
The hire purchase debt is secured over the assets for which it was provided.
KILMAC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
285,410
223,357
Other timing differences
(20,555)
(36,250)
264,855
187,107
2024
Movements in the year:
£
Liability at 1 October 2023
187,107
Charge to profit or loss
77,748
Liability at 30 September 2024
264,855
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
907,719
319,457
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 1p each
10,000
10,000
100
100
The company has one class of ordinary shares which carry no right to fixed income.
19
Employee Ownership Trust
During the 2022 financial year the company ownership changed to Kilmac Employee Ownership Trustees Ltd. As shown in the Statement of Changes in Equity (page 10) a further transfer of £1,540,000 (2023: £2,150,000) from the company Profit and Loss reserves was required to facilitate the change in ownership. The policy of retaining substantial reserves in the company has allowed the board to undertake the transaction without any detrimental impact on the operations and working capital requirement.
KILMAC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
20
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
52,141
96,964
Between two and five years
92,470
25,407
144,611
122,371
21
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
1,566,488
829,597
Other information
During the year, the company advanced loan funds of £24,000 (2023 - £50,000) and received loan repayments of £74,000 (2023 - £nil) from Kilmac Energy (Finavon) Limited, a company in which Athole McDonald and Richard Kilcullen are directors. At the balance sheet date, Kilmac Energy (Finavon) Limited owed the company £nil (2023 - £50,000).
During the year, the company made purchases of £12,000 (2023- £9,000) from Kilmac Properties Limited, a company in which Athole McDonald and Richard Kilcullen are directors.
22
Directors' transactions
Advances or credits have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Directors - Loan
2.25
(1,196,051)
(123,224)
(14,522)
1,312,359
(21,438)
(1,196,051)
(123,224)
(14,522)
1,312,359
(21,438)
KILMAC LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
23
Ultimate controlling party
The ultimate controlling party is Kilmac Employee Ownership Trustees Ltd.
24
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,844,231
1,333,767
Adjustments for:
Taxation charged
637,582
374,661
Finance costs
53,629
39,235
Investment income
(101,834)
(3,998)
Gain on disposal of tangible fixed assets
(18,047)
(4,513)
Depreciation and impairment of tangible fixed assets
533,541
350,259
Movements in working capital:
(Increase)/decrease in debtors
(1,782,045)
2,094,955
Increase in creditors
776,833
2,115,474
Cash generated from operations
1,943,890
6,299,840
25
Analysis of changes in net funds
1 October 2023
Cash flows
New finance leases
30 September 2024
£
£
£
£
Cash at bank and in hand
3,366,509
71,728
-
3,438,237
Obligations under finance leases
(777,849)
485,009
(359,606)
(652,446)
2,588,660
556,737
(359,606)
2,785,791
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