Murraywood Construction Limited - Limited company accounts 23.2

Murraywood Construction Limited - Limited company accounts 23.2


IRIS Accounts Production v23.3.1.45 03181059 Board of Directors Board of Directors 1.6.22 31.5.23 31.5.23 true false true true false false true true true true true false Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh031810592022-05-31031810592023-05-31031810592022-06-012023-05-31031810592021-05-31031810592021-06-012022-05-31031810592022-05-3103181059ns10:Originalns15:EnglandWales2022-06-012023-05-3103181059ns14:PoundSterlingns10:Original2022-06-012023-05-3103181059ns10:Originalns10:Director12022-06-012023-05-3103181059ns10:Original2022-06-012023-05-3103181059ns10:Originalns10:Director22022-06-012023-05-3103181059ns10:Original2023-05-3103181059ns10:Originalns10:PrivateLimitedCompanyLtd2022-06-012023-05-3103181059ns10:Originalns10:FRS1022022-06-012023-05-3103181059ns10:Originalns10:Audited2022-06-012023-05-3103181059ns10:Originalns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-06-012023-05-3103181059ns10:LargeMedium-sizedCompaniesRegimeForAccountsns10:Original2022-06-012023-05-3103181059ns10:Originalns10:FullAccounts2022-06-012023-05-3103181059ns10:Originalns10:OrdinaryShareClass12022-06-012023-05-3103181059ns10:Originalns10:Director32022-06-012023-05-3103181059ns10:Originalns10:Director52022-06-012023-05-3103181059ns10:Originalns10:Director62022-06-012023-05-3103181059ns10:Originalns10:Director72022-06-012023-05-3103181059ns10:CompanySecretary1ns10:Original2022-06-012023-05-3103181059ns10:Originalns10:RegisteredOffice2022-06-012023-05-3103181059ns10:Originalns10:Director42022-06-012023-05-3103181059ns10:Original2021-06-012022-05-3103181059ns10:Original2022-05-3103181059ns10:Originalns5:CurrentFinancialInstruments2023-05-3103181059ns10:Originalns5:CurrentFinancialInstruments2022-05-3103181059ns5:ShareCapitalns10:Original2023-05-3103181059ns5:ShareCapitalns10:Original2022-05-3103181059ns10:Originalns5:RetainedEarningsAccumulatedLosses2023-05-3103181059ns10:Originalns5:RetainedEarningsAccumulatedLosses2022-05-3103181059ns5:ShareCapitalns10:Original2021-05-3103181059ns10:Originalns5:RetainedEarningsAccumulatedLosses2021-05-3103181059ns10:Original2021-05-3103181059ns10:Originalns5:RetainedEarningsAccumulatedLosses2021-06-012022-05-3103181059ns10:Originalns5:RetainedEarningsAccumulatedLosses2022-06-012023-05-3103181059ns10:Originalns10:HighestPaidDirector2022-06-012023-05-3103181059ns10:Originalns10:HighestPaidDirector2021-06-012022-05-3103181059ns10:Originalns5:PlantEquipmentOtherAssetsUnderOperatingLeases2022-06-012023-05-3103181059ns10:Originalns5:PlantEquipmentOtherAssetsUnderOperatingLeases2021-06-012022-05-3103181059ns5:OwnedAssetsns10:Original2022-06-012023-05-3103181059ns5:OwnedAssetsns10:Original2021-06-012022-05-3103181059ns10:Originalns5:PlantMachinery2022-05-3103181059ns10:Originalns5:FurnitureFittings2022-05-3103181059ns10:Originalns5:MotorVehicles2022-05-3103181059ns10:Originalns5:ComputerEquipment2022-05-3103181059ns10:Original2022-05-3103181059ns10:Originalns5:PlantMachinery2022-06-012023-05-3103181059ns10:Originalns5:FurnitureFittings2022-06-012023-05-3103181059ns10:Originalns5:MotorVehicles2022-06-012023-05-3103181059ns10:Originalns5:ComputerEquipment2022-06-012023-05-3103181059ns10:Originalns5:PlantMachinery2023-05-3103181059ns10:Originalns5:FurnitureFittings2023-05-3103181059ns10:Originalns5:MotorVehicles2023-05-3103181059ns10:Originalns5:ComputerEquipment2023-05-3103181059ns10:Originalns5:PlantMachinery2022-05-3103181059ns10:Originalns5:FurnitureFittings2022-05-3103181059ns10:Originalns5:MotorVehicles2022-05-3103181059ns10:Originalns5:ComputerEquipment2022-05-3103181059ns10:Originalns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-05-3103181059ns10:Originalns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-05-3103181059ns10:Originalns5:WithinOneYear2023-05-3103181059ns10:Originalns5:WithinOneYear2022-05-3103181059ns5:BetweenOneFiveYearsns10:Original2023-05-3103181059ns5:BetweenOneFiveYearsns10:Original2022-05-3103181059ns10:Originalns5:AllPeriods2023-05-3103181059ns10:Originalns5:AllPeriods2022-05-3103181059ns10:Originalns5:DeferredTaxation2022-05-3103181059ns10:Originalns5:DeferredTaxation2022-06-012023-05-3103181059ns10:Originalns5:DeferredTaxation2023-05-3103181059ns10:Originalns10:OrdinaryShareClass12023-05-3103181059ns10:Originalns5:RetainedEarningsAccumulatedLosses2022-05-31
REGISTERED NUMBER: 03181059 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 May 2023

for

Murraywood Construction Limited

Murraywood Construction Limited (Registered number: 03181059)






Contents of the Financial Statements
for the Year Ended 31 May 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


Murraywood Construction Limited

Company Information
for the Year Ended 31 May 2023







DIRECTORS: W T S Murray
T G Wood
W J Parkinson
M J Walsh
S D Ball
A Keyes



SECRETARY: T G Wood



REGISTERED OFFICE: 8 Winmarleigh Street
Warrington
Cheshire
WA1 1JW



REGISTERED NUMBER: 03181059 (England and Wales)



SENIOR STATUTORY AUDITOR: Janine Boyo BFP ACA MAAT



AUDITORS: Voisey & Co LLP
8 Winmarleigh Street
Warrington
Cheshire
WA1 1JW

Murraywood Construction Limited (Registered number: 03181059)

Strategic Report
for the Year Ended 31 May 2023

The directors present their strategic report for the year ended 31 May 2023.

REVIEW OF BUSINESS
The directors are pleased to report the results for the company for the 2023 year.

The directors are delighted to report that company remains in a strong financial position and report an operating profit of £226,870 (2022: £374,805) despite the difficult economic climate and margins being the key focus of all parties.

It remains a key focus of the directors to maintain their policy of minimizing exposure to potentially non profitable long term contracts where possible by working with the client base and maintaining control over all costs and providing value engineering on all projects.

The company maintains its emphasis on good working practices and maintains its accreditation in all areas including ISO 9001,14001 and 18001 and Considerate Constructors. Working closely with all clients to review and develop accordingly.

The directors are confident that, while the current economic climate continues to present challenges, the company has the ability to achieve excellent results next year.


Key Performance Indicators

The directors monitor progress with reference to the following key performance indicators:

2023 2022 Definition and method of calculation

Gross Profit as a % of turnover

10.90%

10.72%
Profit before administration and
exceptional costs.


Operating Profit as a % of turnover

1.34%

2.08%
Earnings before interest receivable and
interest payable.


Liquidity ratio

2.31

2.76
Current Assets divided by current
liabilities




Murraywood Construction Limited (Registered number: 03181059)

Strategic Report
for the Year Ended 31 May 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The directors are continually reviewing the principle risks which they believe affect the company and its trading performance.The risk areas that they have identified are:-

- Economic and market confidence leading to increased pressure on contracts
- Confidence and morale of employees leading to increased employee turnover
- Failure to achieve the margins, profits and cash flows from contracts

Following a review of these risks areas the directors have established a risk management strategy to mitigate the potential risks by:-

- Continually reviewing the services offered to clients
- Implementing staff training programmes to maintain and enhance statutory obligations
- Appointment of high calibre individuals to deliver contracts and maintain the ethics and values of the company
- Ensuring a rigorous selection criteria is adopted on all contracts
- Continual rigorous review policies on all projects undertaken.

GOING CONCERN

The Directors are continually reviewing the operations of the company and its ability to deliver its sales and service.They believe that they have the structure and resources to ensure the company will remain a going concern.

The demand for services remains good in the short to medium term and the directors continue to monitor the economic outlook. Following the above procedures, along with the continued support of the banks, suppliers and the staff the Directors believe the company remains a going concern based on updated business plans.

EMPLOYEES
The company operates a program of training to ensure that all employees meet the highest standard for health and safety and compliance in all relevant areas along with ensuring all relevant staff have the certification and accreditation required.

This policy is continually reviewed to ensure it meets the requirements of the clients, legislation and the needs of the employees.

ENVIRONMENTAL
The company is a Considerate Constructors Scheme member committed to the Code of Construction Practice.

The Code of Construction Practice consists of 5 key areas, these are

1. Care about Appearance
2. Respect the Community
3. Protect the Environment
4. Secure Everyone’s Safety
5. Value their Workforce.

ON BEHALF OF THE BOARD:





T G Wood - Director


30 November 2023

Murraywood Construction Limited (Registered number: 03181059)

Report of the Directors
for the Year Ended 31 May 2023

The directors present their report with the financial statements of the company for the year ended 31 May 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of provision of ground works and construction.

DIVIDENDS
No dividends will be distributed for the year ended 31 May 2023.

FUTURE DEVELOPMENTS
The directors anticipate the business environment will remain challenging and they believe that the company is in a good financial position and that the risks that have been identified are being well managed. The directors will continue carefully assessing the state of the market and development of the services on offer to customers.

The directors anticipate that the current uncertain economic climate will lead to lower sales and a challenge to profits in the year 2023/24 but they will continue to invest in service development and enhancements to operations to achieve greater efficiencies. Overall we still expect satisfactory results in these uncertain times

DIRECTORS
The directors shown below have held office during the whole of the period from 1 June 2022 to the date of this report.

W T S Murray
T G Wood
W J Parkinson
S D Ball
A Keyes

Other changes in directors holding office are as follows:

F W Bryant - resigned 4 May 2023
M J Walsh - appointed 26 April 2023

FINANCIAL
The company has policies and procedures that require appropriate credit checks to be performed on potential credit customers before contracts for services are made.

The company's principal financial liabilities are trade creditors and trade accruals. The company's principal financial assets are bank balances, work in progress and trade debtors.

The financial liabilities and assets are controlled by the directors to ensure sufficient funds are available for the company to meet its business needs. The financial liabilities and assets are stated at fair value and after allowance for doubtful receivables.


Murraywood Construction Limited (Registered number: 03181059)

Report of the Directors
for the Year Ended 31 May 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are 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 each director 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, Voisey & Co LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





T G Wood - Director


30 November 2023

Report of the Independent Auditors to the Members of
Murraywood Construction Limited

Opinion
We have audited the financial statements of Murraywood Construction Limited (the 'company') for the year ended 31 May 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 company's affairs as at 31 May 2023 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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 Directors 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 Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Murraywood Construction Limited


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 Directors.

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 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 five, 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 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.

Report of the Independent Auditors to the Members of
Murraywood Construction Limited


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:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

1 - We enquired of management and those charged with governance about actual and potential litigation and claims in the context of the company, including review of relevant nominal ledger accounts.

2 - We obtained an understanding of laws, regulations and guidance that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on their operations. Key laws, regulations and guidance that we identified included the Companies Act 2006, health and safety legislation and employment legislation.

3 - We enquired of management and those charged with governance to identify any instances of non-compliance with laws and regulations. We also reviewed meeting minutes where available for evidence of non-compliance with relevant laws and regulations.

4 - We reviewed the company's financial statement disclosures, and agreed all to supporting documentation to assess compliance with the applicable laws and regulations discussed above.

5 - We gained an understanding of the controls that management have in place to prevent and detect fraud. We enquired of management about any incidences of fraud that had taken place during the accounting period.

6 - The risk of fraud and non-compliance with laws and regulations was discussed within the audit team and tests were planned and performed to address these risks.

7 - In addressing the risk of fraud due to management override of controls, we performed testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

8 - We also challenge management assumptions with regard to accounting estimates.

Despite appropriate planning and performing our work in accordance with International Auditing Standards, there are always inherent limitations that non-compliance is not detected. Non-compliance with laws and regulations is often further removed from the events and transactions reflected in the financial statements and material misstatements due to fraud can be deliberately concealed from auditors, for example through misrepresentation, forgery 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.

Report of the Independent Auditors to the Members of
Murraywood Construction Limited


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.




Janine Boyo BFP ACA MAAT (Senior Statutory Auditor)
for and on behalf of Voisey & Co LLP
8 Winmarleigh Street
Warrington
Cheshire
WA1 1JW

30 November 2023

Murraywood Construction Limited (Registered number: 03181059)

Statement of Comprehensive
Income
for the Year Ended 31 May 2023

31.5.23 31.5.22
Notes £    £   

TURNOVER 3 16,934,807 18,037,430

Cost of sales (15,088,680 ) (16,103,849 )
GROSS PROFIT 1,846,127 1,933,581

Administrative expenses (1,670,135 ) (1,585,381 )
175,992 348,200

Other operating income 50,878 26,605
OPERATING PROFIT 5 226,870 374,805

Interest receivable and similar income 3,966 383
PROFIT BEFORE TAXATION 230,836 375,188

Tax on profit 6 (45,622 ) (71,466 )
PROFIT FOR THE FINANCIAL YEAR 185,214 303,722

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

185,214

303,722

Murraywood Construction Limited (Registered number: 03181059)

Balance Sheet
31 May 2023

31.5.23 31.5.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 7 23,240 12,497

CURRENT ASSETS
Stocks 8 163,954 22,500
Debtors 9 4,818,650 3,933,341
Cash at bank 1,655,303 1,656,727
6,637,907 5,612,568
CREDITORS
Amounts falling due within one year 10 2,880,104 2,032,287
NET CURRENT ASSETS 3,757,803 3,580,281
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,781,043

3,592,778

PROVISIONS FOR LIABILITIES 12 3,210 159
NET ASSETS 3,777,833 3,592,619

CAPITAL AND RESERVES
Called up share capital 13 100 100
Retained earnings 14 3,777,733 3,592,519
SHAREHOLDERS' FUNDS 3,777,833 3,592,619

The financial statements were approved by the Board of Directors and authorised for issue on 30 November 2023 and were signed on its behalf by:




T G Wood - Director



W J Parkinson - Director


Murraywood Construction Limited (Registered number: 03181059)

Statement of Changes in Equity
for the Year Ended 31 May 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 June 2021 100 3,288,797 3,288,897

Changes in equity
Total comprehensive income - 303,722 303,722
Balance at 31 May 2022 100 3,592,519 3,592,619

Changes in equity
Total comprehensive income - 185,214 185,214
Balance at 31 May 2023 100 3,777,733 3,777,833

Murraywood Construction Limited (Registered number: 03181059)

Notes to the Financial Statements
for the Year Ended 31 May 2023

1. STATUTORY INFORMATION

Murraywood Construction 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.

The presentation currency of the financial statements is the Pound Sterling (£).


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 as modified by the revaluation of certain assets.

Going Concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirement of paragraph 33.7.

This information is included in the consolidated financial statements of Murraywood Construction Holdings Limited as at 31 May 2023 and these financial statements may be obtained from Companies House.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

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

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


Work In Progress and Amounts Recoverable on Contracts

Management reviews are undertaken on all projects each month to assess the value of work completed and agreed with the customers using contracting industry standard approach with adjustments to cut off as required.

Murraywood Construction Limited (Registered number: 03181059)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

2. ACCOUNTING POLICIES - continued

Turnover
Turnover represents the amounts chargeable, net of value added tax, in respect of the provision of services to customers under long term contract arrangements. The total turnover of the company for the year has been derived from its principal activity which is wholly undertaken in the UK.

Contract revenue recognition
Revenue earned in relation to construction contracts is recognised based on the stage of completion.

The stage of completion is assessed on a contract by contract basis, with reference to surveys of the work performed. 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.

Where it is probable that the total contract costs will exceed total revenue turnover, the expected loss is recognised as an expense immediately.

Where the outcome of a contract cannot be measured reliably contract costs are recognised as an expense 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 are recoverable.

Where amounts have not been invoiced at the balance sheet date the estimated revenue is accrued, and provided for within amounts recoverable on long term contracts within debtors.

Government grants
The accrual model has been adopted to recognise government grants in the year and are measured at the fair value of the asset received or receivable.

Where a grant becomes repayable it is recognised as a liability when the repayment meets the definition of a liability.

Murraywood Construction Limited (Registered number: 03181059)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and machinery25% straight line
Fixtures, fittings & equipment25% straight line
Computers33% straight line
Motor vehicles25% straight line


The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have been adjusted

Stocks and work in progress
Stocks and work in progress are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Work in progress is valued by the internal quantity surveyors in respect of the work completed at the year end, however not been agreed by third party quantity surveyor. The valuation is adjusted for shortfalls and other significant events.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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.


Murraywood Construction Limited (Registered number: 03181059)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

2. ACCOUNTING POLICIES - continued
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
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.

Murraywood Construction Limited (Registered number: 03181059)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

2. ACCOUNTING POLICIES - continued

Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with bank, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the net asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised costs using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publically traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets
Financial assets, other than those held at fair value through profit or loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

Murraywood Construction Limited (Registered number: 03181059)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

2. ACCOUNTING POLICIES - continued

Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Provisions
A provision is recognised in the balance sheet when the company has a constructive or legal obligation as a result of a past event and it is probable that an outflow of economic benefit will be required to settle the obligation. Provisions are recognised at their discounted net present value.

3. TURNOVER

The turnover and profit before taxation are attributable to the principal activity of the group and is the amount of contract revenue recognised as revenue for the period. All revenue is derived from activities within the United Kingdom.

Murraywood Construction Limited (Registered number: 03181059)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

4. EMPLOYEES AND DIRECTORS
31.5.23 31.5.22
£    £   
Wages and salaries 2,521,730 2,536,822
Social security costs 280,083 277,223
Other pension costs 67,986 70,958
2,869,799 2,885,003

The average number of employees during the year was as follows:
31.5.23 31.5.22

Directors 7 7
Office 5 5
Site/Production 38 48
50 60

31.5.23 31.5.22
£    £   
Directors' remuneration 568,552 578,330
Directors' pension contributions to money purchase schemes 13,208 13,874

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 7 7

Information regarding the highest paid director is as follows:
31.5.23 31.5.22
£    £   
Emoluments etc 117,703 119,139
Pension contributions to money purchase schemes 3,291 3,334

5. OPERATING PROFIT

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

31.5.23 31.5.22
£    £   
Hire of plant and machinery 1,216,203 1,181,537
Other operating leases 146,092 139,697
Depreciation - owned assets 7,177 5,124
Profit on disposal of fixed assets (1,000 ) -
Auditors' remuneration 32,000 21,100
Auditors' remuneration for non audit work 22,116 16,820

Murraywood Construction Limited (Registered number: 03181059)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.5.23 31.5.22
£    £   
Current tax:
UK corporation tax 42,571 72,145

Deferred tax 3,051 (679 )
Tax on profit 45,622 71,466

UK corporation tax has been charged at 19% .

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.5.23 31.5.22
£    £   
Profit before tax 230,836 375,188
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

43,859

71,286

Effects of:
Expenses not deductible for tax purposes - 165
Capital allowances in excess of depreciation (1,288 ) -
Depreciation in excess of capital allowances - 694
Deferred tax 3,051 (679 )
Total tax charge 45,622 71,466

The main rate of corporation tax for the year ended 31 May 2023 was 19%.

The government announced that from 1 April 2023 the rate of corporation tax will be 25% for companies with annual profits over £250,000. For companies with annual profits below £50,000 the rate will remain at 19%. Marginal relief provisions will also be introduced so that, where a company's profits fall between the lower (£50,000) and upper (£250,000) limits, it will be able to claim an amount of marginal relief that bridges the gap between the lower and upper limits providing a gradual increase in the corporation tax rate.

Murraywood Construction Limited (Registered number: 03181059)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

7. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor Computer
machinery fittings vehicles equipment Totals
£    £    £    £    £   
COST OR VALUATION
At 1 June 2022 15,000 19,026 7,920 3,489 45,435
Additions - - 17,920 - 17,920
At 31 May 2023 15,000 19,026 25,840 3,489 63,355
DEPRECIATION
At 1 June 2022 15,000 12,049 2,400 3,489 32,938
Charge for year - 4,374 2,803 - 7,177
At 31 May 2023 15,000 16,423 5,203 3,489 40,115
NET BOOK VALUE
At 31 May 2023 - 2,603 20,637 - 23,240
At 31 May 2022 - 6,977 5,520 - 12,497

Cost or valuation at 31 May 2023 is represented by:

Fixtures
Plant and and Motor Computer
machinery fittings vehicles equipment Totals
£    £    £    £    £   
Valuation in 2016 15,000 2,000 - 3,000 20,000
Cost - 17,026 25,840 489 43,355
15,000 19,026 25,840 3,489 63,355

8. STOCKS
31.5.23 31.5.22
£    £   
Work-in-progress 163,954 22,500

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.5.23 31.5.22
£    £   
Amounts owed by group undertakings 1,379,066 1,292,214
Amounts recoverable on contract 2,701,088 1,967,450
Other debtors 3,955 -
VAT 189,740 148,334
Retentions 524,912 506,286
Prepayments 19,889 19,057
4,818,650 3,933,341

Murraywood Construction Limited (Registered number: 03181059)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.5.23 31.5.22
£    £   
Trade creditors 1,936,223 1,026,583
Tax 42,587 72,161
Social security and other taxes 65,115 75,515
Other creditors 4,250 -
Amounts due to related undertakings - 177,981
Directors' current accounts 40 32
Accrued expenses 831,889 680,015
2,880,104 2,032,287

11. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.5.23 31.5.22
£    £   
Within one year 124,934 146,293
Between one and five years 220,580 370,433
345,514 516,726

12. PROVISIONS FOR LIABILITIES
31.5.23 31.5.22
£    £   
Deferred tax
Accelerated capital allowances 3,210 159

Deferred
tax
£   
Balance at 1 June 2022 159
Provided during year 3,051
Balance at 31 May 2023 3,210

13. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.5.23 31.5.22
value: £    £   
100 Ordinary £1 100 100

Murraywood Construction Limited (Registered number: 03181059)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

14. RESERVES
Retained
earnings
£   

At 1 June 2022 3,592,519
Profit for the year 185,214
At 31 May 2023 3,777,733

15. PENSION COMMITMENTS

During the year the company contributed to a defined contribution pension scheme totalling £67,986 (2022 £70,958). There were no amounts outstanding at the year end.

16. ULTIMATE PARENT COMPANY

Murraywood Construction Holdings Limited is regarded by the directors as being the company's ultimate parent company.

17. RELATED PARTY DISCLOSURES

Murraywood Construction Limited has provided security to the value of £5,550,000 to pay W T S Murray and T G Wood in settlement of the sale of shares (May 2016) to Murraywood Construction Holdings Limited. The security is by way of debenture with a fixed and floating charge over all property of Murraywood Construction Limited.

Endeavour Plant Limited

Endeavour Plant Limited is related by way of mutual directors.

Murraywood Construction Limited hire plant and equipment from Endeavour Plant Limited. Hire of plant and equipment from Endeavour Plant Limited during the year totalled £1,200,764 (2022: £1,122,443). Amounts owed to Endeavour Plant Limited at the year end were £139,186 (2022: £177,981).

Murraywood Executive Pension Fund

Two directors of Murraywood Construction Limited are Trustees of Murraywood Executive Pension Fund.

Rents of £70,000 (2022 £60,000) per annum are paid to Murraywood Executive Pension Fund.