1.
General Information
Marcon Construction Limited
is a private company, limited by shares, incorporated in England & Wales, registered number
03224667
. The registered office is Unit 7 Redlands Centre, Redlands, Coulsdon, Surrey, CR5 2HT.
2.
Accounting Policies
2.1.
Basis of Preparation of Financial Statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.
2.2.
Significant judgements and estimations
In applying the company’s accounting policies, the directors have made the following judgements, which have the most significant effect on the amounts in the financial statements:
- whether the outcome of each construction contract can be estimated reliably, which decides whether profit is recognised by stage of completion;
- whether contract variations and claims are probable of recovery and should be included in contract revenue;
- whether there will be enough future taxable profits to recognise the deferred tax asset;
- whether leases are classified as operating or finance leases.
2.3.
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Sale of goods
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.
Rendering of services
Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
2.4.
Tangible Fixed Assets and Depreciation
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
| Plant & Machinery |
|
| Motor Vehicles |
|
| Fixtures & Fittings |
|
2.5.
Leasing and Hire Purchase Contracts
Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.
Marcon Construction Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 January 2026
2.6.
Cash and Cash Equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.
2.7.
Financial Instruments
The company has chosen to apply Sections 11 and 12 of FRS 102 to all of its financial instruments. The company only enters into basic financial instruments, such as trade and other debtors and creditors, cash, finance leases and amounts owed to related parties.
These are first recognised at transaction price and then measured at amortised cost. Debtors and creditors due within one year are not discounted.
At each reporting date, financial assets measured at amortised cost are assessed for objective evidence of impairment. Any impairment loss is recognised in profit or loss.
Financial assets are derecognised when the contractual rights to the cash flows expire or are settled. Financial liabilities are derecognised when they are extinguished.
2.8.
Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.
Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.
2.9.
Pensions
The company operates a defined pension contribution scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
2.10.
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.
Marcon Construction Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 January 2026
2.11.
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 costs are recognised as
expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract
costs incurred where it is probable that they will be recoverable.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given
period. The stage of completion is measured by the proportion of contract costs incurred for work performed
to date compared to the estimated total contract costs. Costs incurred in the year in connection with future
activity on a contract are excluded from contract costs in determining the stage of completion. These costs
are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable
they will be recovered. Bank interest accruing on capital borrowed to fund the production of long term
contracts is carried forward within long term contract balances.
2.12.
Key sources of estimation uncertainty
Contract revenue and costs: Revenue is recognised by stage of completion, which relies on estimates of the total costs to complete each contract. The gross amounts owed by contract customers were £2,580,951. Changes in cost estimates could materially affect the profit recognised.
Accruals: Accruals of £2,371,273 include estimates of subcontractor and supplier costs on work done but not yet invoiced.
Recoverability of debtors and retentions: The directors assess whether trade debtors and retentions can be recovered, based on how old they are, customers’ circumstances and the history of the contract.
3.
Other Operating Income
| 2026 | 2025 | ||
|---|---|---|---|
| £ | £ | ||
| Royalties and similar income | - |
|
|
| Other operating income |
|
|
|
| 28,222 | 12,887 | ||
4.
Operating Profit
The operating profit is stated after charging:
| 2026 | 2025 | ||
|---|---|---|---|
| £ | £ | ||
| Depreciation of tangible fixed assets |
|
|
|
5.
Auditor's Remuneration
Remuneration received by the company's auditors and their associates during the year was as follows:
| 2026 | 2025 | ||
|---|---|---|---|
| £ | £ | ||
| Audit Services | |||
| Audit of the company's financial statements |
|
|
|
Marcon Construction Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 January 2026
6.
Staff Costs
Staff costs, including directors' remuneration, were as follows:
| 2026 | 2025 | ||
|---|---|---|---|
| £ | £ | ||
| Wages and salaries |
|
|
|
| Social security costs |
|
|
|
| Other pension costs |
|
|
|
|
|
|
||
7.
Average Number of Employees
Average number of employees, including directors, during the year was: 41 (2025: 33)
8.
Directors' remuneration
| 2026 | 2025 | ||
|---|---|---|---|
| £ | £ | ||
| Emoluments |
|
|
|
| Company contributions to money purchase pension schemes |
|
|
|
|
|
|
||
The number of directors to whom retirement benefits were accruing was as follows:
| 2026 | 2025 | ||
|---|---|---|---|
| Money purchase pension schemes |
|
|
|
Information regarding the highest paid director was as follows:
| 2026 | 2025 | ||
|---|---|---|---|
| £ | £ | ||
| Emoluments |
|
|
|
| Company contributions to money purchase pension schemes |
|
|
|
|
|
|
||
9.
Interest Receivable and Similar Income
| 2026 | 2025 | ||
|---|---|---|---|
| £ | £ | ||
| Bank interest receivable |
|
|
|
| Total interest income on financial assets not measured at fair value through profit or loss: |
|
|
|
Marcon Construction Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 January 2026
10.
Interest Payable and Similar Charges
| 2026 | 2025 | ||
|---|---|---|---|
| £ | £ | ||
| Interest payable on other loans | - |
|
|
| Finance charges payable under finance leases and hire purchase contracts | - | 4,658 | |
| Late payment tax charges |
|
|
|
| 35,578 | 15,623 | ||
| Total interest expense on financial liabilities not measured at fair value through profit or loss: |
|
|
|
11.
Tax on Profit
The tax charge on the profit for the year was as follows:
| Tax Rate | 2026 | 2025 | |||
|---|---|---|---|---|---|
| 2026 | 2025 | £ | £ | ||
| Current tax | |||||
| UK Corporation Tax | 25.0% | 25.0% |
|
|
|
| Deferred Tax | |||||
| Deferred taxation |
|
( |
|||
| Total tax charge for the period |
|
|
|||
The actual charge for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
| 2026 | 2025 | ||||
|---|---|---|---|---|---|
| £ | £ | ||||
| Profit before tax | 1,690,738 | 2,559,048 | |||
| Tax on profit at 25% (UK standard rate) |
|
|
|||
| Goodwill/depreciation not allowed for tax |
|
|
|||
| Expenses not deductible for tax purposes |
|
|
|||
| Capital allowances |
( |
( |
|||
| Short term timing differences |
|
( |
|||
| Current tax from unrecognised timing difference from a prior period |
|
|
|||
| Total tax charge for the period | 485,322 | 607,979 | |||
Marcon Construction Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 January 2026
12.
Tangible Assets
| Plant & Machinery | Motor Vehicles | Fixtures & Fittings | Total | |
|---|---|---|---|---|
| £ | £ | £ | £ | |
| Cost | ||||
| As at 1 February 2025 |
|
|
|
|
| Additions |
|
|
|
|
| As at 31 January 2026 |
|
|
|
|
| Depreciation | ||||
| As at 1 February 2025 |
|
|
|
|
| Provided during the period |
|
|
|
|
| As at 31 January 2026 |
|
|
|
|
| Net Book Value | ||||
| As at 31 January 2026 |
|
|
|
|
| As at 1 February 2025 |
|
|
|
|
13.
Debtors
| 2026 | 2025 | ||
|---|---|---|---|
| £ | £ | ||
| Due within one year | |||
| Trade debtors |
|
|
|
| Gross amounts owed by contract customers |
|
|
|
| Other debtors | 211,285 | 66,314 | |
|
|
|
||
14.
Creditors: Amounts Falling Due Within One Year
| 2026 | 2025 | ||
|---|---|---|---|
| £ | £ | ||
| Net obligations under finance lease and hire purchase contracts |
|
|
|
| Trade creditors |
|
|
|
| Subcontractor retentions |
|
|
|
| Other creditors | 107,859 | 71,228 | |
| Corporation tax |
|
|
|
| Taxation and social security | 149,438 | 282,713 | |
| Accruals and deferred income | 2,371,273 | 2,263,777 | |
|
|
|
||
15.
Obligations Under Finance Leases and Hire Purchase
| 2026 | 2025 | ||
|---|---|---|---|
| £ | £ | ||
| The future minimum finance lease payments are as follows: | |||
| Not later than one year |
|
|
|
Marcon Construction Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 January 2026
16.
Deferred Taxation
The provision for deferred tax is made up as follows:
|
2026
|
2025
|
||
|
£
|
£
|
||
|
Fixed asset timing differences
|
31,195
|
34,667
|
|
|
Short-term timing differences (pension contributions accrued, unpaid)
|
2,825
|
2,478
|
|
![1](data:image/svg+xml;utf8,<svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 80 2" preserveAspectRatio="none"> <line x1="0" y1="1" x2="80" y2="1" stroke="black" shape-rendering="crispEdges"/> </svg>){kind=small}
|
|
||
|
Deferred tax asset
|
34,020
![1](data:image/svg+xml;utf8,<svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 80 5" preserveAspectRatio="none"> <line x1="0" y1="1" x2="80" y2="1" stroke="black" shape-rendering="crispEdges"/> <line x1="0" y1="4" x2="80" y2="4" stroke="black" shape-rendering="crispEdges"/> </svg>){kind=small}
|
37,145
|
At 1 February 2025 £37,145; charged to the profit and loss account (£3,125); at 31 January 2026 £34,020.
The net reversal of the deferred tax asset expected in the year ending 31 January 2027 is approximately £5,200. This is mainly because the accrued pension contributions will be paid and become tax deductible, and because capital allowances are expected to exceed depreciation on the existing fixed assets.
Marcon Construction Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 January 2026
18.
Other Commitments
The total of future minimum lease payments under non-cancellable operating leases are as following:
| 2026 | 2025 | ||
|---|---|---|---|
| £ | £ | ||
| Not later than one year |
|
|
|
| Later than one year and not later than five years |
|
|
|
|
|
|
||
Operating lease expense
Operating lease rentals recognised as an expense: £940,180 (2025: £872,580).
That figure comes from the trading P&L:
|
2026
|
2025
|
||
|
£
|
£
|
||
|
Plant, equipment and vehicle hire
|
673,892
|
598,140
|
|
|
Motor vehicle leasing
|
161,751
|
182,569
|
|
|
Rent
|
104,178
|
91,871
|
|
|
Computer equipment hire
|
359
|
-
|
|
|
|
|
||
|
940,180
|
872,580
|
19.
Pension Commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.
During the year the charge to the profit and loss account in respect of defined contribution schemes was £78,494 (2025: £50,580).
At the balance sheet date contributions of £NIL were due to the fund and are included in creditors.
20.
Dividends
| 2026 | 2025 | ||
|---|---|---|---|
| £ | £ | ||
| On equity shares: | |||
| Final dividend paid |
|
|
|
21.
Related Party Disclosures
Transactions with related parties
During the year the company has recognised management fees of £nil (excluding VAT) (2025:
£260,267) charged by Marcon Building Services Ltd. No amounts were included in sales. Marcon Building
Services is a connected company by virtue of common directors.
At the year end £12,509 (2025: £14,467) was due to Marcon Building Services Limited a connected company. No
other amounts were due to connected companies at the year end date.
At the year end £2,650 (2025: £388) was due from Ideal Farm Management Limited, a connected company by
virtue of common directors. No other amounts were due from connected companies at the year end date.
Marcon Construction Limited
Notes to the Financial Statements (continued)
For The Year Ended 31 January 2026
22.
Controlling Parties
The company has no controlling party
On 1 April 2026 the company adopted new articles of association. The 1 Ordinary B share and 1 Ordinary C share were re-designated as Ordinary shares, so the company now has a single class of share. On 1 April 2026, Marcon Group Ltd acquired the entire issued share capital of the company.
23.
Fixed and floating charges
On 14 October 2025 the company granted a fixed and floating charge to Lloyds Bank plc over its property and undertaking. This charge was still outstanding at 31 January 2026.
The debenture dated 18 September 2003, giving fixed and floating charges over the company’s assets and property, was satisfied on 17 October 2025.