Allma Construction Limited - Limited company accounts 11.6

REGISTERED NUMBER: SC132432 (Scotland)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 28 February 2014

for

Allma Construction Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Profit and Loss Account

5

Balance Sheet

6

Cash Flow Statement

7

Notes to the Cash Flow Statement

8

Notes to the Financial Statements

10

DIRECTORS:

P J McBride

P A G McBride

D S Kelly

SECRETARY:

D S Kelly

REGISTERED OFFICE:

28 Muriel Street

Barrhead

G78 1QB

REGISTERED NUMBER:

SC132432 (Scotland)

AUDITORS:

McLay McAlister & McGibbon LLP

Chartered Accountants and Statutory Auditors

145 St Vincent Street

Glasgow

G2 5JF

The directors present their strategic report for the year ended 28 February 2014.

REVIEW OF BUSINESS

The turnover before taxation and exceptional items is £24,250,454 (2013: £16,635,732) The profit before taxation is

£415,362 (2013: £(589,287). Despite the increase in turnover and the strong performance in the year, the directors do

not recommend the payment of any dividend for the year.

During the year there has been no change to the basis on which the accounts have been prepared.

The company's key financial and other performance indicators during the year are as follows:

2014

2013

Change

£

£

%

Turnover (continuing operations)

24,250,454

16,635,732

+46

Profit/(loss) before taxation and exceptional items

729,875

(589,287

)

+224

Profit/(loss) for the financial year

415,362

(555,531

)

+175

Shareholders equity

1,865,564

1,450,203

+29

Current assets as a % of current liabilities

128%

130%

-2

Turnover increased by 46% during the year primarily due to the increase in activity referred to in last year's financial

statements. Increased optimism within the sector following the previous downturn in trading conditions has led to a

significant increase in activity within the house building sector in Scotland.

The company wrote off £314,513 of debt owed by a related company, Casetech (Scotland) Limited ("Casetech") during

the year. The directors consider that this amount is no longer recoverable from Casetech, which has now ceased all

trading operations.

The directors anticipate that turnover for the year ended 28 February 2015 will fall slightly by comparison to the current

year. This is due to delays in the commencement of new contracts until the third quarter of this year.

Operating profit increased significantly during the year due to the increase in activity anticipated at the end of 2013

accounting period and increases in the efficiency of on-site operations.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors continue to monitor the key risks facing the company and assess controls for managing these risks.

ON BEHALF OF THE BOARD:

D S Kelly - Director

28 November 2014

The directors present their report with the financial statements of the company for the year ended 28 February 2014.

DIVIDENDS

No dividends will be distributed for the year ended 28 February 2014.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 March 2013 to the date of this report.

P J McBride

P A G McBride

D S Kelly

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing 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). 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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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.

ON BEHALF OF THE BOARD:

D S Kelly - Director

28 November 2014

We have audited the financial statements of Allma Construction Limited for the year ended 28 February 2014 which

comprise the Profit and Loss Account, the Balance Sheet, the Cash Flow Statement and the related notes. The financial

reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting

Standards (United Kingdom Generally Accepted Accounting Practice).

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.

Respective responsibilities of directors and auditors

As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give

reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error.

This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and

have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by

the directors; and the overall presentation of the financial statements. In addition, we read all the financial and

non-financial information in the Strategic Report and the Report of the Directors to identify material inconsistencies with

the audited financial statements and to identify any information that is apparently materially incorrect based on, or

materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of

any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 28 February 2014 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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion 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.

Matters on which we are required to report by exception

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.

Allan Ramsay (Senior Statutory Auditor)

for and on behalf of McLay McAlister & McGibbon LLP

Chartered Accountants and Statutory Auditors

145 St Vincent Street

Glasgow

G2 5JF

28 November 2014

TURNOVER

24,250,454

16,635,732

Cost of sales

(19,581,352

)

(13,739,764

)

GROSS PROFIT

4,669,102

2,895,968

Administrative expenses

(3,889,379

)

(3,450,018

)

OPERATING PROFIT/(LOSS)

3

779,723

(554,050

)

Related party bad debt written off

(314,513

)

-

465,210

(554,050

)

Interest receivable and similar income

1,033

402

466,243

(553,648

)

Interest payable and similar charges

4

(50,882

)

(35,639

)

PROFIT/(LOSS) ON ORDINARY ACTIVITIES BEFORE TAXATION

415,361

(589,287

)

Tax on profit/(loss) on ordinary activities

5

-

33,756

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

415,361

(555,531

)

CONTINUING OPERATIONS

None of the company's activities were acquired or discontinued during the current year or previous year.

TOTAL RECOGNISED GAINS AND LOSSES

The company has no recognised gains or losses other than the profit for the current year and the loss for the previous

year.

FIXED ASSETS

Tangible assets

6

517,888

449,973

CURRENT ASSETS

Stocks

7

312,911

268,045

Debtors

8

5,906,767

5,265,210

Cash at bank and in hand

983,124

183,529

7,202,802

5,716,784

CREDITORS

Amounts falling due within one year

9

(5,625,797

)

(4,411,353

)

NET CURRENT ASSETS

1,577,005

1,305,431

TOTAL ASSETS LESS CURRENT LIABILITIES

2,094,893

1,755,404

CREDITORS

Amounts falling due after more than one year

10

(229,329

)

(305,201

)

NET ASSETS

1,865,564

1,450,203

CAPITAL AND RESERVES

Called up share capital

14

35,000

35,000

Capital redemption reserve

15

50,000

50,000

Profit and loss account

15

1,780,564

1,365,203

SHAREHOLDERS' FUNDS

19

1,865,564

1,450,203

The financial statements were approved by the Board of Directors on 28 November 2014 and were signed on its behalf by:

D S Kelly - Director

Net cash inflow/(outflow)

from operating activities

1

1,041,948

(246,434

)

Returns on investments and

servicing of finance

2

(49,849

)

(35,237

)

Taxation

-

(12,898

)

Capital expenditure

2

33,610

300

1,025,709

(294,269

)

Financing

2

(226,114

)

382,839

Increase in cash in the period

799,595

88,570

Reconciliation of net cash flow

to movement in net debt

3

Increase in cash in the period

799,595

88,570

Cash outflow/(inflow)

from decrease/(increase) in debt and lease financing

226,114

(382,839

)

Change in net debt resulting

from cash flows

1,025,709

(294,269

)

New finance leases

(233,200

)

-

Movement in net debt in the period

792,509

(294,269

)

Net debt at 1 March

(479,968

)

(185,699

)

Net funds/(debt) at 28 February

312,541

(479,968

)

1.	RECONCILIATION OF OPERATING PROFIT/(LOSS) TO NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES

28.2.14

28.2.13

£

£

Operating profit/(loss)

779,723

(554,050

)

Depreciation charges

160,666

180,853

Profit on disposal of fixed assets

(28,988

)

(5,883

)

Related party bad debt written off

(314,513

)

-

Increase in stocks

(44,866

)

(94,613

)

Increase in debtors

(641,557

)

(1,148,202

)

Increase in creditors

1,131,483

1,375,461

Net cash inflow/(outflow) from operating activities

1,041,948

(246,434

)

2.	ANALYSIS OF CASH FLOWS FOR HEADINGS NETTED IN THE CASH FLOW STATEMENT

28.2.14

28.2.13

£

£

Returns on investments and servicing of finance

Interest received

1,033

402

Interest paid

(37,500

)

(27,500

)

Interest element of hire purchase payments

(13,382

)

(8,139

)

Net cash outflow for returns on investments and servicing of finance

(49,849

)

(35,237

)

Capital expenditure

Purchase of tangible fixed assets

(23,682

)

(9,750

)

Sale of tangible fixed assets

57,292

10,050

Net cash inflow for capital expenditure

33,610

300

Financing

New loans in year

250,000

750,000

Loan repayments in year

(312,500

)

(229,167

)

Capital repayments in year

(163,614

)

(137,994

)

Net cash (outflow)/inflow from financing

(226,114

)

382,839

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At

At 1.3.13

Cash flow

changes

28.2.14

£

£

£

£

Net cash:

Cash at bank and in hand

183,529

799,595

983,124

183,529

799,595

983,124

Debt:

Hire purchase

(142,664

)

163,614

(233,200

)

(212,250

)

Debts falling due

within one year

(250,000

)

(83,333

)

-

(333,333

)

Debts falling due

after one year

(270,833

)

145,833

-

(125,000

)

(663,497

)

226,114

(233,200

)

(670,583

)

Total

(479,968

)

1,025,709

(233,200

)

312,541

1.	ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared under the historical cost convention and are in accordance with

applicable accounting standards.

Turnover

Turnover represents net invoiced sales of goods and services, excluding value added tax.

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

-

at varying rates on cost

Fixtures and fittings

-

at varying rates on cost

Motor vehicles

-

at varying rates on cost

Stocks and work in progress

Stocks and work in progress have been valued at the lower of cost and net realisable value; in respect of work in

progress and finished goods cost includes a relevant proportion of overheads according to the stage of

completion and in accordance with Statement of Standard Accounting Practice No 9 and is shown as 'amounts

recoverable on contracts' in Debtors. Profit is taken on contracts where the amount can be reasonably foreseen on

a prudent basis.

Deferred tax

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

sheet date. Deferred tax assets are recognised only to the extent that the directors consider it is more likely than

not that there will be suitable taxable profits from which the future reversal of the underlying timing differences

can be deducted. Deferred taxation is measured on a non-discounted basis at the tax rates that are expected to

apply in the periods in which the timing differences reverse, based on the tax rates and laws enacted or

substantively enacted at the balance sheet date.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts are capitalised in the balance sheet. Those held under hire

purchase contracts are depreciated over their estimated useful lives.

The interest element of these obligations is charged to the profit and loss account over the relevant period. The

capital element of the future payments is treated as a liability.

Rentals payable under operating leases are charged to the profit and loss account as they are incurred.

Pension costs and other post-retirement benefits

The company contributes to personal pension plans in the directors' own names. These funds are held by third

parties and this cost is charged to the profit and loss account as the contributions are paid.

The company operates a group personal pension scheme for the benefit of its employees. These funds are

administered by Trustees and are separate from the company. The cost is charged to the profit and loss account

as the contributions are paid.

Grants

Grants of a revenue nature are credited to the profit and loss account in the period in which the expenditure is

incurred.

2.	STAFF COSTS

28.2.14

28.2.13

£

£

Wages and salaries

7,762,287

6,379,554

Social security costs

787,762

641,806

Other pension costs

91,126

82,317

8,641,175

7,103,677

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

28.2.14

28.2.13

Directors, surveyors & office staff

25

24

Operatives

212

181

237

205

3.	OPERATING PROFIT/(LOSS)

The operating profit (2013 - operating loss) is stated after charging/(crediting):

28.2.14

28.2.13

£

£

Depreciation - owned assets

84,302

107,644

Depreciation - assets on hire purchase contracts

76,361

73,209

Profit on disposal of fixed assets

(28,988

)

(5,883

)

Auditors' remuneration

2,800

7,400

Directors' remuneration

538,333

540,000

Directors' pension contributions to money purchase schemes

43,291

41,791

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

Money purchase schemes

2

2

Information regarding the highest paid director is as follows:

28.2.14

28.2.13

£

£

Emoluments etc

198,333

200,000

4.

INTEREST PAYABLE AND SIMILAR CHARGES

28.2.14

28.2.13

£

£

Loan

37,500

27,500

Hire purchase interest

13,382

8,139

50,882

35,639

5.

TAXATION

Analysis of the tax credit

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

28.2.14

28.2.13

£

£

Deferred tax

-

(33,756

)

Tax on profit/(loss) on ordinary activities

-

(33,756

)

Factors affecting the tax credit

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is

explained below:

28.2.14

28.2.13

£

£

Profit/(loss) on ordinary activities before tax

415,361

(589,287

)

Profit/(loss) on ordinary activities

multiplied by the standard rate of corporation tax

in the UK of 20% (2013 - 20%)

83,072

(117,857

)

Effects of:

Expenses not deductible for tax purposes

1,338

1,617

Income not taxable for tax purposes

(5,798

)

(1,177

)

Capital allowances in excess of depreciation

(17,803

)

-

Depreciation in excess of capital allowances

-

20,435

Utilisation of tax losses

(60,809

)

96,982

Current tax credit

-

-

6.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Motor

machinery

fittings

vehicles

Totals

£

£

£

£

COST

At 1 March 2013

202,241

90,235

1,272,771

1,565,247

Additions

87,782

11,700

157,400

256,882

Disposals

(35,600

)

-

(60,228

)

(95,828

)

At 28 February 2014

254,423

101,935

1,369,943

1,726,301

DEPRECIATION

At 1 March 2013

155,169

62,733

897,372

1,115,274

Charge for year

17,092

13,067

130,504

160,663

Eliminated on disposal

(11,444

)

-

(56,080

)

(67,524

)

At 28 February 2014

160,817

75,800

971,796

1,208,413

NET BOOK VALUE

At 28 February 2014

93,606

26,135

398,147

517,888

At 28 February 2013

47,072

27,502

375,399

449,973

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 March 2013

-

456,837

456,837

Additions

85,000

148,200

233,200

Transfer to ownership

-

(84,975

)

(84,975

)

At 28 February 2014

85,000

520,062

605,062

DEPRECIATION

At 1 March 2013

-

180,431

180,431

Charge for year

1,250

75,111

76,361

Transfer to ownership

-

(51,023

)

(51,023

)

At 28 February 2014

1,250

204,519

205,769

NET BOOK VALUE

At 28 February 2014

83,750

315,543

399,293

At 28 February 2013

-

276,406

276,406

7.

STOCKS

28.2.14

28.2.13

£

£

Stocks and work in progress

312,911

268,045

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

28.2.14

28.2.13

£

£

Trade debtors

5,445,546

5,076,340

Other debtors

453,354

185,500

Prepayments and accrued income

7,867

3,370

5,906,767

5,265,210

Included in debtors are amounts of £749,645 (2013 - £896,349) which are due after more than one year.

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

28.2.14

28.2.13

£

£

Other loans (see note 11)

333,333

250,000

Hire purchase contracts (see note 12)

107,921

108,296

Trade creditors

2,384,302

1,784,041

Amounts owed to group undertakings

2,238,116

1,854,338

Social security and other taxes

242,934

215,916

Other creditors

128,207

101,226

Accruals & deferred income

190,984

97,536

5,625,797

4,411,353