P. McKernan Construction Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC201125 (Scotland)

Unaudited Financial Statements for the Year Ended 31 March 2021

for

P. McKernan Construction Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

Chartered Accountants' Report

9

DIRECTORS:

P McKernan

M M Shields

REGISTERED OFFICE:

29 Brandon Street

Hamilton

ML3 6DA

REGISTERED NUMBER:

SC201125 (Scotland)

ACCOUNTANTS:

Sharles CA

29 Brandon Street

Hamilton

ML3 6DA

FIXED ASSETS

Tangible assets

5

196,801

181,358

Investment property

6

1,023,711

1,023,711

1,220,512

1,205,069

CURRENT ASSETS

Stocks

417,228

2,426,425

Debtors

7

938,820

167,164

Cash at bank and in hand

2,710,021

815,697

4,066,069

3,409,286

CREDITORS

Amounts falling due within one year

8

1,979,085

2,883,245

NET CURRENT ASSETS

2,086,984

526,041

TOTAL ASSETS LESS CURRENT LIABILITIES

3,307,496

1,731,110

CREDITORS

Amounts falling due after more than one year

9

(433,250

)

(43,547

)

PROVISIONS FOR LIABILITIES

(36,718

)

(33,637

)

NET ASSETS

2,837,528

1,653,926

CAPITAL AND RESERVES

Called up share capital

102

102

Retained earnings

2,837,426

1,653,824

SHAREHOLDERS' FUNDS

2,837,528

1,653,926

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 29 March 2022 and were signed on its behalf by:

P McKernan - Director

1.	STATUTORY INFORMATION

P. McKernan Construction Limited is a private company, limited by shares , registered in Scotland. 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.	STATEMENT OF COMPLIANCE

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. There were no material departures from that standard.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is derived from new build house sales by the company.

Turnover is measured at the fair value of new build house sales, net of discounts and excluding value added tax, and is recognised at the point that the company obtains the right to consideration.

Tangible fixed assets

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

Plant and machinery etc

-

25% on reducing balance

Tangible fixed assets held for the companies own use are stated at cost less accumulated depreciation and accumulated impairment loss.

At each balance sheet date, the company reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss. Where it is not possible to estimate the recoverable amount of the asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Expenditure of £1,000 or more on individual tangible fixed assets is capitalised at cost. Expenditure on assets below this threshold is charged directly to the income statement in the period it is incurred.

Government grants

Grants considered to be revenue in nature are credited to the profit and loss account in the period to which they relate. Grants of a capital nature are reflected as deferred income in the balance sheet and released to the profit and loss account over the estimated useful life of the assets to which they relate.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell (net realisable value). Costs, which comprise direct production costs, are based on the method appropriate to the type of inventory class, but usually on a first-in-first-out basis. Overheads are charged to the income statement as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amounts of stocks recognised as an expense in the period in which the reversal occurs.

Work in progress

Stocks, being work in progress, are stated at the lower of cost and net realisable value. Costs comprise direct material and labour costs, plus attributable overheads based on a normal level of activity. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

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.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 7 (2020 - 8 ) .

5.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 April 2020

431,840

Additions

81,042

At 31 March 2021

512,882

DEPRECIATION

At 1 April 2020

250,482

Charge for year

65,599

At 31 March 2021

316,081

NET BOOK VALUE

At 31 March 2021

196,801

At 31 March 2020

181,358

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

Plant and

machinery

etc

£

COST

At 1 April 2020

184,887

Additions

45,662

Transfer to ownership

(24,446

)

At 31 March 2021

206,103

DEPRECIATION

At 1 April 2020

64,395

Charge for year

41,538

Transfer to ownership

(14,563

)

At 31 March 2021

91,370

NET BOOK VALUE

At 31 March 2021

114,733

At 31 March 2020

120,492

6.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 April 2020

and 31 March 2021

1,023,711

NET BOOK VALUE

At 31 March 2021

1,023,711

At 31 March 2020

1,023,711

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Other debtors

938,820

167,164

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts

16,543

392,551

Hire purchase contracts

50,363

37,595

Trade creditors

248,967

561,688

Taxation and social security

378,550

233,628

Other creditors

1,284,662

1,657,783

1,979,085

2,883,245

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Bank loans

417,405

-

Hire purchase contracts

15,845

43,547

433,250

43,547

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

337,313

-

10.	SECURED DEBTS

The following secured debts are included within creditors:

2021

2020

£

£

Bank loans

433,948

-

Hire purchase contracts

66,208

-

500,156

-

A bank loan is secured by a floating charge over the assets and undertakings of the company and by a standard security over 9 properties owned by the company.

A bank loan is supported by a 100% guarantee from the UK Government.

Hire purchase contracts and finance leases are secured over the assets concerned.

11.	CAPITAL COMMITMENTS

2021

2020

£

£

Contracted but not provided for in the

financial statements

117,600

-

12.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

P McKernan

Director

During the year, the company repaid £299,249 (2020 - £124,882) to the director. At the year end, the balance due to the director was £481,001 (2020 - £780,250). This loan is unsecured, interest free and has no fixed repayment terms.

13.	RELATED PARTY DISCLOSURES

During the year the year, P. McKernan Construction Ltd advanced £720,414 (2020 - £138) to companies under common control and repaid £4,896 (2020 - £4,284). P. McKernan Construction Ltd purchased no properties during the year (2020 - purchased properties totalling £895,000 under normal market conditions) from a company under common control. At the year end, the balance due from P. McKernan Construction Ltd to companies under common control was £50,053 (2020 - £775,363).

No interest was charged on outstanding amounts during this year or the previous year. The balances are unsecured, interest free and have no fixed repayment terms.

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of P. McKernan Construction Limited for the year ended 31 March 2021 which comprise the Income Statement, Balance Sheet, Statement of Changes in Equity and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of ICAS, we are subject to its ethical and other professional requirements which are detailed at http://www.icas.com/accountspreparationguidance.

This report is made solely to the Board of Directors of P. McKernan Construction Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of P. McKernan Construction Limited and state those matters that we have agreed to state to the Board of Directors of P. McKernan Construction Limited, as a body, in this report in accordance with the requirements of ICAS as detailed at http://www.icas.com/accountspreparationguidance. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that P. McKernan Construction Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of P. McKernan Construction Limited. You consider that P. McKernan Construction Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of P. McKernan Construction Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Sharles CA

29 Brandon Street

Hamilton

ML3 6DA

29 March 2022