REGISTERED NUMBER: 03238902 (England and Wales)

Strategic Report, Report of the Director and

Financial Statements for the Year Ended 31 December 2024

for

X & P McGuigan Civil Engineering Limited

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTOR:

P X McGuigan

SECRETARY:

I C Walton

REGISTERED OFFICE:

The Old Pump House

Railway Road

Withnell

Chorley

Lancashire

PR6 8UA

REGISTERED NUMBER:

03238902 (England and Wales)

AUDITORS:

Bennett Kirkhope Smith Ltd

Chartered Certified Accountants

and Statutory Auditors

Suites 5 & 6 The Printworks

Hey Road

Barrow

Clitheroe

Lancashire

BB7 9WB

The director presents his strategic report for the year ended 31 December 2024.

The company's principal activities during the year continues to be that of civil engineering specialising in roads and sewers for new housing development.

REVIEW OF BUSINESS

The results for the year and the financial position of the company are shown in the annexed financial statements.

The director is pleased to report that despite the adverse weather in the early part of the year having a severe affect on the company and turnover dropping from £13.2m to £7.9m, the end result was better than initially expected, with a profit before tax for the year of £39k.

However, inflation and competition in the market have put pressure on margins in the current year, this along with additional investment in equipment have impacted the net profit.

Finally the company reported decreased net assets at the balance sheet date of £4.57m (£4.56m 2023) ensuring the company retains sufficient ability to fund its working capital.

PRINCIPAL RISKS AND UNCERTAINTIES

Financial Risk Management

The company's policy is to ensure that adequate and cost effective arrangements are maintained to finance current and future activities and that exposure to financial risk is minimised.

Liquidity and Funding

The company is financed by agreed bank facilities and makes efforts to manage the financial risk by the monitoring of cash flow to ensure that the company is able to meet foreseeable debts as they fall due.

Credit Risk

To control credit risk from trade debtors, limits are set based on a combination of trade history and third party credit references and are reviewed regularly by the director.

ON BEHALF OF THE BOARD:

P X McGuigan - Director

10 September 2025

The director presents his report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of civil engineering.

DIVIDENDS

An interim dividend of £2,050 per share was paid on . The director recommends that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2024 will be £ 205,000 .

FUTURE DEVELOPMENTS

The Government's ambitious housebuilding targets, even if not fully met, will stimulate the construction industry. Roads & sewers contractors are pretty much the first to break ground and we are well placed in terms of equipment and manpower to exploit opportunities as they arise Financially the company is in a position to take advantage of opportunities as they arise and can act quickly as there is no requirement for outside funding. Tendering opportunities have increased considerably in recent months and the company is looking forward to a decent 2024 and better 2025.

DIRECTOR

P X McGuigan held office during the whole of the period from 1 January 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Bennett Kirkhope Smith Ltd, is deemed to be reappointed under the Companies Act 2006, s487(2).

SMALL COMPANIES REGIME

This report has been prepared taking advantage of the exemptions for small companies within Part 15 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

P X McGuigan - Director

10 September 2025

Opinion

We have audited the financial statements of X & P McGuigan Civil Engineering Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 company's affairs as at 31 December 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.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors 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 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 the audit:

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

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 Report of the Director.

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, 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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience;

-we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment and health and safety legislation;

-we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

-identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

-making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

-considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

-performed analytical procedures to identify any unusual or unexpected relationships;

-tested journal entries to identify unusual transactions;

-assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

-investigated the rationale behind significant or unusual transactions.

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

-agreeing financial statements disclosures to underlying supporting documentation;

-reading the minutes of meetings of those charged with governance;

-enquiring of management as to actual and potential litigation and claims.

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

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

A M Smith FCCA CTA (Senior Statutory Auditor)

for and on behalf of Bennett Kirkhope Smith Ltd

Chartered Certified Accountants

and Statutory Auditors

Suites 5 & 6 The Printworks

Hey Road

Barrow

Clitheroe

Lancashire

BB7 9WB

19 September 2025

TURNOVER

7,967,281

13,219,660

Cost of sales

6,857,638

11,416,070

GROSS PROFIT

1,109,643

1,803,590

Administrative expenses

1,041,847

1,600,116

67,796

203,474

Other operating income

771

7,167

OPERATING PROFIT

4

68,567

210,641

Interest receivable and similar income

30,213

10,859

98,780

221,500

Interest payable and similar expenses

6

59,695

54,267

PROFIT BEFORE TAXATION

39,085

167,233

Tax on profit

7

(172,889

)

(93,273

)

PROFIT FOR THE FINANCIAL YEAR

211,974

260,506

PROFIT FOR THE YEAR

211,974

260,506

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

211,974

260,506

FIXED ASSETS

Tangible assets

9

1,276,935

1,935,335

CURRENT ASSETS

Stocks

10

140,768

223,751

Debtors

11

3,105,829

3,810,047

Cash at bank and in hand

1,893,323

1,366,449

5,139,920

5,400,247

CREDITORS

Amounts falling due within one year

12

1,468,773

1,853,980

NET CURRENT ASSETS

3,671,147

3,546,267

TOTAL ASSETS LESS CURRENT LIABILITIES

4,948,082

5,481,602

CREDITORS

Amounts falling due after more than one year

13

(75,217

)

(558,037

)

PROVISIONS FOR LIABILITIES

17

(299,076

)

(356,750

)

NET ASSETS

4,573,789

4,566,815

CAPITAL AND RESERVES

Called up share capital

18

100

100

Retained earnings

19

4,573,689

4,566,715

SHAREHOLDERS' FUNDS

4,573,789

4,566,815

The financial statements were approved by the director and authorised for issue on 10 September 2025 and were signed by:

P X McGuigan - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100

4,366,209

4,366,309

Changes in equity

Dividends

-

(60,000

)

(60,000

)

Total comprehensive income

-

260,506

260,506

Balance at 31 December 2023

100

4,566,715

4,566,815

Changes in equity

Dividends

-

(205,000

)

(205,000

)

Total comprehensive income

-

211,974

211,974

Balance at 31 December 2024

100

4,573,689

4,573,789

Cash flows from operating activities

Cash generated from operations

1

783,325

1,590,055

Interest paid

(59,695

)

(54,267

)

Tax paid

173,850

222,073

Net cash from operating activities

897,480

1,757,861

Cash flows from investing activities

Purchase of tangible fixed assets

(93,759

)

(814,881

)

Sale of tangible fixed assets

703,000

-

Interest received

30,213

10,859

Net cash from investing activities

639,454

(804,022

)

Cash flows from financing activities

New loans in year

65,000

648,000

Loan repayments in year

(157,811

)

(699,068

)

Capital repayments in year

(709,580

)

43,321

Amount introduced by directors

-

60,000

Amount withdrawn by directors

(2,669

)

(57,989

)

Equity dividends paid

(205,000

)

(60,000

)

Net cash from financing activities

(1,010,060

)

(65,736

)

Increase in cash and cash equivalents

526,874

888,103

Cash and cash equivalents at beginning of year

2

1,366,449

478,346

Cash and cash equivalents at end of year

2

1,893,323

1,366,449

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.24

31.12.23

£

£

Profit before taxation

39,085

167,233

Depreciation charges

312,834

626,506

(Profit)/loss on disposal of fixed assets

(263,675

)

18

Finance costs

59,695

54,267

Finance income

(30,213

)

(10,859

)

117,726

837,165

Decrease in stocks

82,983

181,344

Decrease in trade and other debtors

704,218

1,346,557

Decrease in trade and other creditors

(121,602

)

(775,011

)

Cash generated from operations

783,325

1,590,055

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,893,323

1,366,449

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

1,366,449

478,346

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

1,366,449

526,874

1,893,323

1,366,449

526,874

1,893,323

Debt

Finance leases

(1,121,551

)

709,580

(411,971

)

Debts falling due within 1 year

(56,394

)

56,394

-

Debts falling due after 1 year

(36,417

)

36,417

-

(1,214,362

)

802,391

(411,971

)

Total

152,087

1,329,265

1,481,352

1.	STATUTORY INFORMATION

X & P McGuigan Civil Engineering Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going Concern

The company has sufficient resources to meet its liabilities as they fall due. The director therefore continues to adopt the going concern basis in preparing the financial statements.

In reaching his conclusion, the director has considered the financial position of the Company and has looked into confirmed contracts covering at least the next 12 months.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of the contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Leasehold improvements

-

Over the term of the lease

Plant and machinery

-

25% on reducing balance and 20% on reducing balance

Motor vehicles

-

20% on reducing balance

Other Assets

-

25% on reducing balance

The company has previously depreciated its plant & machinery and motor vehicles at a rate of 25% reducing balance. During the year the directors' reassessed this policy and revised this to 20% reducing balance and 25% reducing balance for plant & machinery and 20% reducing balance for motor vehicles. This has resulted in a reduction in depreciation charge of £73,753 in the year.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

1,551,544

2,160,843

Other pension costs

92,353

104,791

1,643,897

2,265,634

The average number of employees during the year was as follows:

31.12.24

31.12.23

Direct

26

39

Administration

5

5

31

44

31.12.24

31.12.23

£

£

Director's remuneration

-

-

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.12.24

31.12.23

£

£

Other operating leases

282,625

304,308

Depreciation - owned assets

183,291

122,707

Depreciation - assets on hire purchase contracts

129,543

503,799

(Profit)/loss on disposal of fixed assets

(263,675

)

18

5.	AUDITORS' REMUNERATION

31.12.24

31.12.23

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

18,500

10,000

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.24

31.12.23

£

£

Bank interest

59,695

54,267

7.

TAXATION

Analysis of the tax credit

The tax credit on the profit for the year was as follows:

31.12.24

31.12.23

£

£

Current tax:

UK corporation tax

58,635

-

Corporation tax - prior years

(173,850

)

(222,073

)

Total current tax

(115,215

)

(222,073

)

Deferred tax:

Deferred tax

(57,674

)

56,816

Deferred tax on rate change

-

71,984

Total deferred tax

(57,674

)

128,800

Tax on profit

(172,889

)

(93,273

)

8.

DIVIDENDS

31.12.24

31.12.23

£

£

Ordinary shares of £1 each

Interim

205,000

60,000

9.	TANGIBLE FIXED ASSETS

Leasehold

Plant and

Motor

Other

improvements

machinery

vehicles

Assets

Totals

£

£

£

£

£

COST

At 1 January 2024

248,479

1,336,007

2,313,854

500,000

4,398,340

Additions

-

93,759

-

-

93,759

Disposals

-

(295,624

)

(104,000

)

(500,000

)

(899,624

)

At 31 December 2024

248,479

1,134,142

2,209,854

-

3,592,475

DEPRECIATION

At 1 January 2024

155,443

500,361

1,518,138

289,063

2,463,005

Charge for year

12,405

142,673

157,756

-

312,834

Eliminated on disposal

-

(74,177

)

(97,059

)

(289,063

)

(460,299

)

At 31 December 2024

167,848

568,857

1,578,835

-

2,315,540

NET BOOK VALUE

At 31 December 2024

80,631

565,285

631,019

-

1,276,935

At 31 December 2023

93,036

835,646

795,716

210,937

1,935,335

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

Motor

machinery

vehicles

Totals

£

£

£

COST

At 1 January 2024

720,000

1,250,554

1,970,554

Additions

91,000

-

91,000

Disposals

(295,000

)

-

(295,000

)

Transfer to ownership

-

(827,509

)

(827,509

)

At 31 December 2024

516,000

423,045

939,045

DEPRECIATION

At 1 January 2024

241,795

664,421

906,216

Charge for year

81,950

47,593

129,543

Eliminated on disposal

(73,750

)

-

(73,750

)

Transfer to ownership

(61,795

)

(479,341

)

(541,136

)

At 31 December 2024

188,200

232,673

420,873

NET BOOK VALUE

At 31 December 2024

327,800

190,372

518,172

At 31 December 2023

478,205

586,133

1,064,338

10.

STOCKS

31.12.24

31.12.23

£

£

Stocks

140,768

223,751