Registration number:
Mike Etheridge Construction Limited
for the Year Ended 31 December 2024
Mike Etheridge Construction Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account |
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Consolidated Statement of Comprehensive Income |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Mike Etheridge Construction Limited
Company Information
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Directors |
M T Etheridge G N Jones |
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Company secretary |
K Bradley |
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Registered office |
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Auditors |
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Mike Etheridge Construction Limited
Strategic Report for the Year Ended 31 December 2024
The directors present their strategic report for the year ended 31 December 2024.
Principal activity
The principal activity of the group is that of property construction.
Fair review of the business
The results for the year and financial position of the group and company are as shown in the annexed financial statements.
During the year the parent company Mike Etheridge Construction Limited (“the company”) saw a reduction in overall turnover and this was attributable to a significant decrease in the company’s property development activity, with bricklaying activity remaining essentially in line with that of 2023. Overall profitability of the company showed a reduction compared to the previous year, however, the directors remain satisfied with the overall levels of performance and the continued close control over costs.
With regard to the subsidiary companies, Forest Hills (Holdings) Limited and Forest Hills Golf & Leisure Limited, the group have continued to finance the improvement of the golf course and these improvements are reflected in the improved status and reputation of the golf club. Despite the continued investment, the golf club is struggling to achieve profitability, however, the directors believe there should be gradual improvement over the next few years. In summary, the directors are aware that the recovery of the investment in the subsidiary companies will take a long period of time.
Following the year end, the group has seen an improvement in trading activity despite the continuing pressures of the housing market, with overall performance remaining profitable and signs of improvement in the market place are beginning to show through.
The directors remain optimistic about the future housing market (which influences the activity levels of the company directly) and, at the current time, they are able to confirm that the forward order book is looking positive.
The company's key financial and other performance indicators during the year were as follows:
|
Financial KPIs |
Unit |
2024 |
2023 |
|
Turnover (Group) |
£ |
13,909,232 |
16,842,313 |
|
Turnover (Company) |
£ |
12,738,956 |
15,777,894 |
|
Gross Profit (Group) |
£ |
1,496,739 |
2,242,129 |
|
Gross Profit (Company |
£ |
1,313,700 |
2,071,386 |
|
Gross Profit Margin (Group) |
% |
10.76 |
13.31 |
|
Gross Profit Margin (Company) |
% |
10.31 |
13.13 |
Mike Etheridge Construction Limited
Strategic Report for the Year Ended 31 December 2024 (continued)
Principal risks and uncertainties
The future growth and development of the business is dependent on the competitiveness and reputation of the company within the construction industry and the with general public.
The construction industry within the UK is experiencing a slight reduction in activity, however, the company’s order book is being helped by the government backed requirement for the building of new housing developments to satisfy the increasing demand for homes. Whilst this is encouraging the directors are aware that the industry has historically seen periodic downturns, which can always provide an inherent risk to companies involved within the industry and the economy as a whole. This is particularly relevant at the current time given the various concerns regarding cost-of-living, inflation and interest rates.
Approved and authorised by the
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......................................... |
Mike Etheridge Construction Limited
Directors' Report for the Year Ended 31 December 2024
The directors present their report and the for the year ended 31 December 2024.
Directors of the group
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The group and company strives to ensure that it meets the needs and requirements of an ever changing construction industry through a range of methods including continual investment in new property, plant and equipment together with the development and welfare of staff as key contributors to the business.
Price risk, credit risk, liquidity risk and cash flow risk
The group and company's financial instruments comprise of cash at bank and finance leases. The main purpose of these financial instruments is to provide adequate finance for the operations of the company and it's group subsidiaries.
The main risks arising from the group and company's financial instruments are interest rate fluctuations and liquidity risk. It is the group's policy for group companies to finance their operations through a mixture of cash and borrowings and to review periodically the mix of these instruments with regard to the projected cashflow requirements of the group and company and an acceptable level of risk exposure.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved and authorised by the
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Mike Etheridge Construction Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Mike Etheridge Construction Limited
Independent Auditor's Report to the Members of Mike Etheridge Construction Limited
Opinion
We have audited the financial statements of Mike Etheridge Construction Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2024 and of the group's profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Mike Etheridge Construction Limited
Independent Auditor's Report to the Members of Mike Etheridge Construction Limited (continued)
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 5], 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 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:
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Our audit procedures were designed to respond to identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to: |
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Discussing with the directors and management their policies and procedures regarding compliance with laws and regulations; |
Mike Etheridge Construction Limited
Independent Auditor's Report to the Members of Mike Etheridge Construction Limited (continued)
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• |
Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and |
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Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud. |
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Our audit procedures in relation to fraud included but were not limited to: |
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Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud; |
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• |
Gaining an understanding of the internal controls established to mitigate risks related to fraud; |
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• |
Discussing amongst the engagement team the risks of fraud; and |
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• |
Addressing the risks of fraud through management override of controls by performing journal entry testing. |
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There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls. |
A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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.
......................................
For and on behalf of
Chartered Accountants & Statutory Auditors
24 High Street
Chipping Sodbury
BS37 6AH
Mike Etheridge Construction Limited
Consolidated Profit and Loss Account for the Year Ended 31 December 2024
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Note |
2024 |
2023 |
|
|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
|
|
|
|
Operating profit |
|
|
|
|
Gain on financial assets at fair value through profit and loss |
- |
|
|
|
Other interest receivable and similar income |
|
|
|
|
Interest payable and similar expenses |
|
( |
|
|
16,782 |
135,006 |
||
|
Profit before tax |
|
|
|
|
Tax on profit |
( |
( |
|
|
Profit for the financial year |
|
|
|
|
Profit/(loss) attributable to: |
|||
|
Owners of the company |
|
|
|
|
Minority interests |
( |
( |
|
|
|
|
The group has no recognised gains or losses for the year other than the results above.
Mike Etheridge Construction Limited
Consolidated Statement of Comprehensive Income for the Year Ended 31 December 2024
|
2024 |
2023 |
|
|
Profit for the year |
|
|
|
Total comprehensive income for the year |
|
|
|
Total comprehensive income attributable to: |
||
|
Owners of the company |
|
|
|
Minority interests |
( |
( |
|
|
|
Mike Etheridge Construction Limited
(Registration number: 03734577)
Consolidated Balance Sheet as at 31 December 2024
|
Note |
2024 |
2023 |
|
|
Fixed assets |
|||
|
Intangible assets |
|
|
|
|
Tangible assets |
|
|
|
|
Investment property |
|
|
|
|
Investments |
|
|
|
|
|
|
||
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Current assets |
|||
|
Stocks |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
- |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
93 |
93 |
|
|
Share premium reserve |
215,973 |
215,973 |
|
|
Capital redemption reserve |
20 |
20 |
|
|
Retained earnings |
10,069,242 |
9,913,928 |
|
|
Equity attributable to owners of the company |
10,285,328 |
10,130,014 |
|
|
Minority interests |
(65,733) |
(36,796) |
|
|
Shareholders' funds |
10,219,595 |
10,093,218 |
Approved and authorised by the
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Mike Etheridge Construction Limited
(Registration number: 03734577)
Balance Sheet as at 31 December 2024
|
Note |
2024 |
2023 |
|
|
Fixed assets |
|||
|
Tangible assets |
|
|
|
|
Investment property |
|
|
|
|
Investments |
|
|
|
|
|
|
||
|
Current assets |
|||
|
Stocks |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
- |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
93 |
93 |
|
|
Share premium reserve |
215,973 |
215,973 |
|
|
Capital redemption reserve |
20 |
20 |
|
|
Retained earnings |
10,604,985 |
10,303,051 |
|
|
Shareholders' funds |
10,821,071 |
10,519,137 |
The company made a profit after tax for the financial year of £301,934 (2023 - profit of £872,977).
Approved and authorised by the
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Mike Etheridge Construction Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 December 2024
Equity attributable to the parent company
|
Share capital |
Share premium |
Capital redemption reserve |
Retained earnings |
Total |
Non-controlling interests - Equity |
Total equity |
|
|
At 1 January 2024 |
|
|
|
|
|
( |
|
|
Profit/(loss) for the year |
- |
- |
- |
|
|
( |
|
|
At 31 December 2024 |
|
|
|
|
|
( |
|
|
Share capital |
Share premium |
Capital redemption reserve |
Retained earnings |
Total |
Non-controlling interests - Equity |
Total equity |
|
|
At 1 January 2023 |
|
|
- |
|
|
|
|
|
Profit/(loss) for the year |
- |
- |
- |
|
|
( |
|
|
Purchase of own share capital |
(20) |
- |
- |
(1,145,000) |
(1,145,020) |
- |
(1,145,020) |
|
Other capital redemption reserve movements |
- |
- |
20 |
- |
20 |
- |
20 |
|
At 31 December 2023 |
93 |
215,973 |
20 |
9,913,928 |
10,130,014 |
(36,796) |
10,093,218 |
Mike Etheridge Construction Limited
Statement of Changes in Equity for the Year Ended 31 December 2024
|
Share capital |
Share premium |
Capital redemption reserve |
Retained earnings |
|
|
At 1 January 2024 |
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
At 31 December 2024 |
|
|
|
|
|
Total |
|
|
At 1 January 2024 |
|
|
Profit for the year |
|
|
At 31 December 2024 |
|
|
Share capital |
Share premium |
Capital redemption reserve |
Retained earnings |
|
|
At 1 January 2023 |
|
|
- |
|
|
Profit for the year |
- |
- |
- |
|
|
Purchase of own share capital |
(20) |
- |
- |
(1,145,000) |
|
Other capital redemption reserve movements |
- |
- |
20 |
- |
|
At 31 December 2023 |
93 |
215,973 |
20 |
10,303,051 |
|
Total |
|
|
At 1 January 2023 |
|
|
Profit for the year |
|
|
Purchase of own share capital |
(1,145,020) |
|
Other capital redemption reserve movements |
20 |
|
At 31 December 2023 |
10,519,137 |
Mike Etheridge Construction Limited
Consolidated Statement of Cash Flows for the Year Ended 31 December 2024
|
Note |
2024 |
2023 |
|
|
Cash flows from operating activities |
|||
|
Profit for the year |
|
|
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Changes in fair value of investment property |
- |
( |
|
|
Profit on disposal of tangible assets |
( |
( |
|
|
Finance income |
( |
( |
|
|
Finance costs |
( |
|
|
|
Income tax expense |
|
|
|
|
|
|
||
|
Working capital adjustments |
|||
|
(Increase)/decrease in stocks |
( |
|
|
|
Increase in trade debtors |
( |
( |
|
|
Increase in trade creditors |
|
|
|
|
Cash generated from operations |
|
|
|
|
Income taxes paid |
( |
( |
|
|
Net cash flow from operating activities |
( |
|
|
|
Cash flows from investing activities |
|||
|
Interest received |
|
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
|
|
|
|
Acquisition of investment properties |
( |
- |
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
|
( |
|
|
Payments for purchase of own shares |
- |
( |
|
|
Repayment of other borrowing |
( |
( |
|
|
Payments to finance lease creditors |
|
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
|
Cash and cash equivalents at 1 January |
|
|
|
|
Cash and cash equivalents at 31 December |
642,719 |
1,317,190 |
|
Mike Etheridge Construction Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
United Kingdom
These financial statements were authorised for issue by the
|
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2024.
Mike Etheridge Construction Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
2 |
Accounting policies (continued) |
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Mike Etheridge Construction Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
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2 |
Accounting policies (continued) |
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Land and buildings |
2% straight line |
|
Short term leasehold property |
Term of the lease/ 10% straight line |
|
Plant and machinery |
20% reducing balance/10% - 20% straight line |
|
Fixtures and fittings |
15% reducing balance/ 10% straight line |
|
Motor vehicles |
25% reducing balance/ 20% straight line |
Investment property
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Mike Etheridge Construction Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
2 |
Accounting policies (continued) |
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Goodwill on consolidation |
5 years straight line |
|
Goodwill on acquisition of a trade |
7 years straight line |
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Mike Etheridge Construction Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
2 |
Accounting policies (continued) |
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of work in progress comprises direct materials (including land purchases) and, where applicable, direct labour costs and those overheads that have been incurred in bringing the work in progress to its present condition.
With regards to construction contracts, where the outcome of a construction contract can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date.
Where the outcome cannot be measured reliably. contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable.
The cost of stocks for resale and consumables comprise of the costs in purchasing the inventories and bringing them to their present condition and location.
At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Mike Etheridge Construction Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
2 |
Accounting policies (continued) |
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
|
Turnover |
The analysis of the group's Turnover for the year from continuing operations is as follows:
|
2024 |
2023 |
|
|
Rendering of services |
|
|
|
Grants received |
|
|
|
Other revenue |
|
|
|
|
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
|
2024 |
2023 |
|
|
Sub lease rental income |
|
|
Mike Etheridge Construction Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Other gains and losses |
The analysis of the group's other gains and losses for the year is as follows:
|
2024 |
2023 |
|
|
Gain on disposal of Tangible assets |
|
|
|
Operating profit |
Arrived at after charging/(crediting)
|
2024 |
2023 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Profit on disposal of property, plant and equipment |
( |
( |
|
Other interest receivable and similar income |
|
2024 |
2023 |
|
|
Other finance income |
|
|
|
Interest payable and similar expenses |
|
2024 |
2023 |
|
|
Interest on obligations under finance leases and hire purchase contracts |
( |
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
Mike Etheridge Construction Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
9 |
Staff costs (continued) |
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Production and support services |
|
|
|
Management |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
- |
|
|
208,000 |
388,000 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2024 |
2023 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
- |
|
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Audit of these financial statements |
21,000 |
21,000 |
Mike Etheridge Construction Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
( |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2024 |
2023 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Tax increase from effect of capital allowances and depreciation |
|
|
|
Tax (decrease)/increase from other short-term timing differences |
( |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
( |
|
Effect of tax losses |
( |
- |
|
Total tax charge |
|
|
Mike Etheridge Construction Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
12 |
Taxation (continued) |
Deferred tax
Group
Deferred tax assets and liabilities
|
2024 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
|
Fair value adjustment of investment property |
- |
|
|
- |
|
|
2023 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
|
Fair value adjustment of investment property |
- |
|
|
- |
|
Company
Deferred tax assets and liabilities
|
2024 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
|
Fair value adjustment of investment property |
- |
|
|
- |
|
|
2023 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
|
Fair value adjustment of investment property |
- |
|
|
- |
|
Mike Etheridge Construction Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Intangible assets |
Group
|
Goodwill |
Total |
|
|
Cost |
||
|
At 1 January 2024 |
|
|
|
At 31 December 2024 |
|
|
|
Amortisation |
||
|
At 1 January 2024 |
|
|
|
Amortisation charge |
|
|
|
At 31 December 2024 |
|
|
|
Carrying amount |
||
|
At 31 December 2024 |
|
|
|
At 31 December 2023 |
|
|
Mike Etheridge Construction Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Tangible assets |
Group
|
Land and buildings |
Short leasehold land and buildings |
Fixtures and fittings |
Plant and machinery |
||||
|
Cost |
|||||||
|
At 1 January 2024 |
|
|
|
|
|||
|
Additions |
- |
|
|
|
|||
|
Disposals |
- |
- |
- |
( |
|||
|
At 31 December 2024 |
|
|
|
|
|||
|
Depreciation |
|||||||
|
At 1 January 2024 |
|
|
|
|
|||
|
Charge for the year |
|
|
|
|
|||
|
Eliminated on disposal |
- |
- |
- |
( |
|||
|
At 31 December 2024 |
|
|
|
|
|||
|
Carrying amount |
|||||||
|
At 31 December 2024 |
|
|
|
|
|||
|
At 31 December 2023 |
|
|
|
|
|||
Mike Etheridge Construction Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
14 |
Tangible assets (continued) |
|
Office equipment |
Motor vehicles |
Total |
|||||
|
Cost |
|||||||
|
At 1 January 2024 |
|
|
|
||||
|
Additions |
|
|
|
||||
|
Disposals |
- |
( |
( |
||||
|
At 31 December 2024 |
|
|
|
||||
|
Depreciation |
|||||||
|
At 1 January 2024 |
|
|
|
||||
|
Charge for the year |
|
|
|
||||
|
Eliminated on disposal |
- |
( |
( |
||||
|
At 31 December 2024 |
|
|
|
||||
|
Carrying amount |
|||||||
|
At 31 December 2024 |
|
|
|
||||
|
At 31 December 2023 |
|
|
|
||||
Included within the net book value of land and buildings above is £1,843,996 (2023 - £1,884,794) in respect of freehold land and buildings and £379,047 (2023 - £423,892) in respect of short leasehold land and buildings.
Mike Etheridge Construction Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
14 |
Tangible assets (continued) |
Company
|
Land and buildings |
Short leasehold land and buildings |
Fixtures and fittings |
Plant and machinery |
|||
|
Cost |
||||||
|
At 1 January 2024 |
|
|
|
|
||
|
Additions |
- |
- |
|
|
||
|
Disposals |
- |
- |
- |
( |
||
|
At 31 December 2024 |
|
|
|
|
||
|
Depreciation |
||||||
|
At 1 January 2024 |
|
|
|
|
||
|
Charge for the year |
|
|
|
|
||
|
Eliminated on disposal |
- |
- |
- |
( |
||
|
At 31 December 2024 |
|
|
|
|
||
|
Carrying amount |
||||||
|
At 31 December 2024 |
|
|
|
|
||
|
At 31 December 2023 |
|
|
|
|
||
|
Motor vehicles |
Total |
|||||
|
Cost |
||||||
|
At 1 January 2024 |
|
|
||||
|
Additions |
|
|
||||
|
Disposals |
( |
( |
||||
|
At 31 December 2024 |
|
|
||||
|
Depreciation |
||||||
|
At 1 January 2024 |
|
|
||||
|
Charge for the year |
|
|
||||
|
Eliminated on disposal |
( |
( |
||||
|
At 31 December 2024 |
|
|
||||
|
Carrying amount |
||||||
|
At 31 December 2024 |
|
|
||||
|
At 31 December 2023 |
|
|
||||
Mike Etheridge Construction Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
14 |
Tangible assets (continued) |
Included within the net book value of land and buildings above is £904,268 (2023 - £923,821) in respect of freehold land and buildings and £24,444 (2023 - £25,012) in respect of short leasehold land and buildings.
|
Investment properties |
Group
|
2024 |
|
|
At 1 January |
|
|
Additions |
|
|
At 31 December |
|
In accordance with current UK GAAP and company law, the directors undertook a review to ascertain the fair value of the investment properties at the year end date. In arriving at the estimated fair value of the investment properties, the directors utilised their knowledge of the property market together with valuations of similar properties in the local vicinity.
There has been no valuation of investment property by an independent valuer. However, in arriving at their valuations the directors utilised the advice and guidance of a relevantly qualified property expert with extensive knowledge and experience of the local property market.
Company
|
2024 |
|
|
At 1 January |
|
|
Additions |
|
|
At 31 December |
|
Mike Etheridge Construction Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Investments |
Company
|
2024 |
2023 |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost |
|
|
At 1 January 2024 |
|
|
Provision |
|
|
Carrying amount |
|
|
At 31 December 2024 |
|
|
At 31 December 2023 |
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2024 |
2023 |
|||
|
Subsidiary undertakings |
||||
|
|
Forest Hills Golf Club,
England & Wales |
|
|
|
|
|
Forest Hills Golf Club,
England & Wales |
|
|
|
Forest Hills Golf & Leisure Limited is a 100% subsidiary company of Forest Hills (Holdings) Ltd, a company in which Mike Etheridge Construction Limited acquired a controlled interest of 78% of the issued share capital on 25 May 2021.
Mike Etheridge Construction Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
16 |
Investments (continued) |
|
Subsidiary undertakings |
|
Forest Hills (Holdings) Ltd The principal activity of Forest Hills (Holdings) Ltd is |
|
Forest Hills Golf & Leisure Limited The principal activity of Forest Hills Golf & Leisure Limited is |
|
Stocks |
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Work in progress |
|
|
|
|
|
Other inventories |
|
|
- |
- |
|
|
|
|
|
|
|
Debtors |
|
Group |
Company |
||||
|
Current |
Note |
2024 |
2023 |
2024 |
2023 |
|
Trade debtors |
|
|
|
|
|
|
Amounts owed by related parties |
- |
- |
|
|
|
|
Other debtors |
|
|
|
|
|
|
Prepayments |
|
|
|
|
|
|
Gross amount due from customers for contract work |
|
|
|
|
|
|
|
|
|
|
||
|
Cash and cash equivalents |
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Cash at bank |
|
|
|
|
Mike Etheridge Construction Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Creditors |
|
Group |
Company |
||||
|
Note |
2024 |
2023 |
2024 |
2023 |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
|
- |
|
|
Trade creditors |
|
|
|
|
|
|
Amounts due to related parties |
|
|
|
|
|
|
Social security and other taxes |
|
|
|
|
|
|
Other payables |
|
|
|
|
|
|
Accruals |
|
|
|
|
|
|
Income tax liability |
30,338 |
81,112 |
30,338 |
81,112 |
|
|
|
|
|
|
||
|
Due after one year |
|||||
|
Loans and borrowings |
|
- |
|
- |
|
|
Provisions for liabilities |
Group
|
Deferred tax |
Total |
|
|
At 1 January 2024 |
|
|
|
Increase (decrease) in existing provisions |
( |
( |
|
At 31 December 2024 |
|
|
|
|
||
Company
|
Deferred tax |
Total |
|
|
At 1 January 2024 |
|
|
|
Increase (decrease) in existing provisions |
|
|
|
At 31 December 2024 |
|
|
|
|
||
Mike Etheridge Construction Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
93 |
|
93 |
|
Loans and borrowings |
Non-current loans and borrowings
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Hire purchase contracts |
|
- |
|
- |
Current loans and borrowings
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Hire purchase contracts |
|
|
|
- |
|
Other borrowings |
- |
|
- |
- |
|
|
|
|
- |
|
Mike Etheridge Construction Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Obligations under leases and hire purchase contracts |
Group
Finance leases
Finance leases are secured against the fixed assets to which they relate.
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
- |
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Operating leases - lessor
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
Company
Finance leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
- |
|
Later than one year and not later than five years |
|
- |
|
|
- |
Mike Etheridge Construction Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
25 |
Obligations under leases and hire purchase contracts (continued) |
Operating leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Operating leases - lessor
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
|
Related party transactions |
Company
Summary of transactions with subsidiaries
Transactions and balances with group companies that have been eliminated on consolidation have not been disclosed.
Summary of transactions with other related parties
During the year the company traded with companies in which the directors hold participating interests with the company providing sales of goods and services to these companies in the sum of £162,224 (2023 - £285,019), and receiving goods and services in the sum of £1,275,089 (2023 - £1,332,329) from these companies.
At the balance sheet date trade debtors included balances due from these companies of £163,330 (2023 - £117,941) Trade creditors included balances totalling £82,976 (2023 - £129,525). Other debtors included balances totalling £213,634 (2023 - £138,394), prepayments included balances totalling £131,142 (2023 - £131,142) and other creditors included balances totalling £176,076 (2023 - £201,076) in relation to companies in which the directors hold participating interests.
During the year the company made rental payments of £32,000 (2023 - £32,000) to a pension scheme in which the directors are trustees and beneficiaries. At the balance sheet date prepayments included a balance of £Nil (2023 - £24,863) due to the company and accruals included a balance of £15,000 (2023 - £15,000) owed by the company.