REGISTERED NUMBER: |
H.& J. MARTIN LIMITED |
STRATEGIC REPORT, DIRECTORS' REPORT AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 |
REGISTERED NUMBER: |
H.& J. MARTIN LIMITED |
STRATEGIC REPORT, DIRECTORS' REPORT AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Directors' Report | 6 |
Independent Auditors' Report | 9 |
Income Statement | 13 |
Statement of Financial Position | 14 |
Statement of Changes in Equity | 15 |
Notes to the Financial Statements | 16 |
H.& J. MARTIN LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Chartered Accountants and Statutory Auditors |
36-38 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
BANKERS: |
Donegall Square West |
Belfast |
Antrim |
BT1 6JS |
SOLICITORS: |
The Ewart |
3 Bedford Street |
Belfast |
BT2 7EP |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
The directors present their strategic report for the year ended 31 March 2023. |
PRINCIPAL ACTIVITIES AND BUSINESS REVIEW |
H & J Martin Limited ("the company") is one of the UK and Ireland's most successful Construction and Asset Management Service related companies. It is primarily engaged in the activities of building, fit-out and facilities management throughout the UK and Ireland. |
Performance |
The directors consider the results for the year to be in line with expectations reporting a profit before taxation of £1,026,514 (2022: £1,315,984) and turnover of £45,039,724 (2022: £39,120,230). |
Net assets of the company at the year end were £6,862,903 (2022: £5,836,389). |
The directors do not recommend the payment of a dividend in the year. |
KEY PERFORMANCE INDICATORS |
The directors consider the key performance indicators to be those that communicate the financial performance and strengths of the company, being turnover, gross profit margin and net assets. |
The key performance indicators and their comparatives are included below: |
2023 | 2022 |
£ | £ |
Turnover | 45,039,724 | 39,120,230 |
Gross profit margin | 10.1% | 9.4% |
Net assets | 6,862,903 | 5,836,389 |
Employee numbers | 251 | 211 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Board continually reviews risks and uncertainties facing the company by regular reviews of the company's performance, compliance activities and other economic factors influencing the marketplace in which the company operates. |
UK, Ireland and International Economies |
The company's revenue depends to a great degree on the economies of the countries in which we operate. A positive economic climate is essential to generate economic growth which in turn provides further opportunities for the company. Despite the limitations in recent growth in the UK, Ireland and Internationally, the company has been able to maximise opportunities by continuing to invest in long term relationships with its clients, partners and other key stakeholders. This approach enables early identification of opportunities and strategic partners. |
Project Management |
First class project management is fundamental to the continued success of our company and does not happen by chance. Our company's outstanding success in project management for over 50 years has been down to our people - we have a greatly experienced management team who have developed over several years and have been supported by industry leading staff development and training programmes. Our approach to project management is built on collaboration with clients, partners and supply chain with open communication to ensure that issues are dealt with as they arise to ensure successful project outcomes. |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
Staff Retention and Recruitment |
Our business is built on our people and it is therefore critical that we continue to develop and train our staff in order to retain the breadth of experience and industry knowledge that they possess. Our company not only ensures that our overall pay and benefit packages are extremely competitive but has invested massively in the wider cultural aspects of staff retention, including career development, staff health and wellbeing, work life balance and staff communication. This is demonstrated by our staff retention rate which is well above the construction industry average. |
Furthermore, recruitment of new people into the business is essential to ensure the business can attract high calibre recruits to complement the existing workforce and to harness new skills and ideas throughout the business. The business continues to invest in its recruitment process to ensure it attracts the right candidates to the business. |
This ongoing investment has led to numerous awards, including Investors in People Platinum. |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
SECTION 172(1) STATEMENT |
This section serves as our section 172 statement and should be read in conjunction with the rest of the Strategic Report. Section 172 of the Companies Act 2006 requires Directors to take into consideration the interests of stakeholders in their decision making. The Directors continue to have regard to the interests of the Group's employees and other stakeholders, including the impact of its activities on the community, the environment and the Group's reputation, when making decisions. Acting in good faith and fairly between members, the Directors consider what is most likely to promote the success of the Group in the long term. Whilst the importance of giving due consideration to our stakeholders is not new, we are explaining in more detail this year how the Board engages with our stakeholders, with the requirement to include a statement setting out how our Directors have discharged this duty. The key points are highlighted below: |
Long Term Plan |
Our long term plan is designed to have a long term beneficial impact on the company and to contribute to its future success. This is in line with our strategic vision to be a world class family owned specialist contracting business that will grow to be the most respected in the construction and services sectors. |
Our Employees |
Our employees are fundamental to successful delivery of our business strategy and long-term goals. The health, safety and well-being of our employees is one of our primary considerations in the way we do business and this is encompassed in our mission 'to provide specialist contracting and services solutions in an environment where people feel safe, secure and valued'. |
We have invested time to ensure that all of our staff are aware and adhere to our core values: Respect, Safety, Care, Fun, Trust, Open & Honest. |
We have recently been reaccredited as a Platinum Standard employer by Investors in People and were highly commended as a Family Friendly Employer by Employers for Childcare. |
Our relationship with stakeholders |
Our approach is a client centric one. It believes in providing a flexible and responsive value for money service. To service its principal markets, it has grown its own in house capability. This has allowed us to create efficiencies, develop our skills and to control our own destiny. As a consequence we have grown a capability to carry out earthworks, concrete works, asphalting, piling, temporary traffic management, drainage and mechanical & electrical works. Our Asset Management can also self-perform specialist services such as fire & security, motorised gates & barriers, glazing, pest control, air conditioning, in addition to these accredited serves we can self-perform professional services such as consultation and management surveys (asbestos related), call centre functions, life cycle analysis and asset collection/tagging. |
The lines of communication are short and lessons learnt are carried forward to the following scheme. These are the basics to becoming efficient. |
All parts of the Group share the same systems, culture and approach to safety. Therefore there is a reduced hierarchy and consequently less interfaces which can often be a source of contractual dispute, risk and communications breakdown. The tight team provides a mechanism for right first time. |
Controlling directly the destiny of a project is about the Group taking full responsibility to deliver the Client's needs. |
Impact on the community and environment |
The Group recognises its operations directly impact on the natural and human environment and aims through its Environmental Policy and procedures, to continually assess the environmental implications of our activities and will actively seek the co-operation of clients, sub-contractors, suppliers, and all our employees in minimising adverse effects. |
Our Standards & Reputation |
Our vision is to be a world class family owned specialist contracting business that will grow to be the most respected in the construction and services industry. |
The Group has a policy of maintaining and developing its systems to meet the highest industry standards expected of our customers, suppliers, employees and other stakeholders. |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
The group has invested significantly in its systems and is proud to have in place the following ISO accredited certificates in respect of our current systems: |
- ISO 9001: 2015 - Quality Management Systems |
- ISO 14001: 2015 - Environmental Management Systems |
- ISO 45001: 2018 - Occupational Health & Safety Management Systems |
Quality is key to achieving this vision and guides the company to deliver products and services that are safe, compliant and preferred by our customers. We adopt and implement the quality principle of ‘Right First Time’ during the execution of all our contracts. |
FUTURE DEVELOPMENTS |
The directors are committed to long term creation of shareholder value by continuing to maintain its market share in Northern Ireland, Great Britain and Ireland. The directors are confident that their strategy will result in continued profitability. |
ON BEHALF OF THE BOARD: |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
The directors present their report with the audited financial statements of the company for the year ended 31 March 2023. |
DIVIDENDS |
The directors do not recommend the payment of a dividend. |
RESULTS DURING THE YEAR |
The profit for the year, after taxation, amounted to £943,892 (2022: £1,333,500). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
The company's operations expose it to a variety of financial risks that include the effects of changes in foreign currency risk, credit risk, liquidity risk and interest rate risk. The group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group by monitoring levels of debt finance and the related finance costs. |
Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department. |
Interest Rate Risk |
The company has both interest bearing assets and interest bearing liabilities, both of which bear interest at variable rates. The future cashflows of the company's operations are not sufficiently at risk due to interest rate changes to require funding at fixed rate. The appropriateness of this policy will be revisited should the company's operations change in size or nature. |
Credit Risk |
The company monitors credit risk closely and considers that its current policies of credit checks meets its objectives of managing exposure to credit risk. |
The company has no significant concentrations of credit risk. Amounts shown in the balance sheet best represent the maximum credit risk exposure in the event other parties fail to perform their obligations under financial instruments. |
Liquidity Risk |
The company actively maintains short-term debt finance that is designed to ensure the group has sufficient available funds for operations and planned expansions. |
Currency Risk |
The company uses financial instruments to manage exposure to foreign exchange risk, in the normal course of business. |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
EMPLOYMENT OF DISABLED PERSONS |
The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a disabled person. Where existing employees become disabled, it is the company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate. |
HEALTH AND SAFETY |
The company exercises a strong commitment towards the maintenance of a healthy and safe working environment and training in safety procedures for its employees both in practical terms and in the issue of safety policies, notifications and publications to raise and maintain awareness of safety matters.To this end the company has achieved ISO45001:2018 certification. |
ENVIRONMENT |
The company is conscious of the real and perceived effects upon the environment arising particularly from construction operations. Operational managers are required to comply with all relevant environmental legislation. In the absence of such statutory legislation they are encouraged to apply best industry environmental practice, effect continuous improvement and to foster good relationships within the communities in which we operate. The Directors are committed to all relevant operating companies attaining accepted and approved environmental standards and to this end the group employs appropriately qualified staff dedicated to the establishment and maintenance of environmental management systems. Arising from this the company has been awarded ISO 14001:2015 accreditation. |
QUALITY ASSURANCE |
In keeping with its Mission Statement of serving its customers to the highest standards of professionalism and quality the Quality Management Systems within the company has been upgraded and is now registered to the ISO 9001:2015 standard. |
EMPLOYEE INVOLVEMENT |
The employees of the company are kept informed on matters through meetings and the publication of group and company newsletters. The company maintains an internal human resources department which provides induction and advice in all disciplines of employment policies, procedures, legislation and staff development. It also encourages and promotes social interaction and staff team building activities. |
STREAMLINED ENERGY AND CARBON REPORTING |
Disclosures in relation to the company's carbon emissions have been included in the consolidated financial statements of H&J Martin Group Limited for the year ended 31 March 2023. |
DISCLOSURE IN THE STRATEGIC REPORT |
Under Schedule 7.1A of "Large and Medium-Sized Companies and Groups (Accounts and Reports) |
Regulations 2008" the company has elected to disclose the following directors report information in the |
strategic report: |
- Financial performance indicators; |
- Principal risks and uncertainties; |
- Principal activity and Business review; and |
- Future developments |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the Strategic Report, the Directors' Report 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, CavanaghKelly, have indicated their willingness to continue in office in accordance with the provision of Section 485 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
Opinion |
We have audited the financial statements of H.& J. Martin Limited (the 'company') for the year ended 31 March 2023 which comprise the Income Statement, Statement of Financial Position, 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 March 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 Directors' Report, but does not include the financial statements and our Auditors' Report 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
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 Directors' Report. |
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 Directors' Responsibilities Statement set out on page eight, 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. |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
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 an Auditors' Report 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. |
Explanation as to what extent the audit was considered capable of detecting irregularities, |
including fraud |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- | We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation; |
- | We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance; |
- | We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations; |
- | We obtained understanding of the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and |
- | We held discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override. |
The audit response to risks identified included: |
- | Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above; |
- | Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud; |
- | In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
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 Auditors' Report. |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
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 an Auditors' Report 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. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
36-38 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
1,026,514 | 1,199,163 |
Other operating income | 5 |
OPERATING PROFIT | 7 |
Finance income | 8 |
PROFIT BEFORE TAXATION |
Tax on profit | 9 | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
STATEMENT OF FINANCIAL POSITION |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
NON-CURRENT ASSETS |
Tangible assets | 10 |
CURRENT ASSETS |
Receivables: amounts falling due within one year |
11 |
Cash at bank |
PAYABLES |
Amounts falling due within one year | 12 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 13 | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Retained earnings | 15 | ( |
) |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2021 | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 31 March 2022 | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 31 March 2023 |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | STATUTORY INFORMATION |
H.&J. Martin Limited is a private company limited by shares, registered in Northern Ireland. The address of the registered office is Rosemount House, 21-23 Sydenham Road, Belfast, BT3 9HA. |
The principal activity of the company is that of a construction company. |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared on a going concern basis and in accordance with the historical cost convention. The financial reporting framework that has been applied in their preparation is the Companies Act 2006 (the "Act") and FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" issued by the Financial Reporting Council. |
The financial statements are prepared in sterling, which is the functional currency of the entity, and rounded to the nearest £. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of H&J Martin Group Limited which can be obtained from Companies House. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: |
- the requirements of Section 7 Statement of Cash Flows; |
- the requirements of section 11 Basic Financial Instruments paragraph 11.41; |
- the requirements of Related Party Disclosures section 33.6 and 33.7. |
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The judgements, estimates and assumptions used in the financial statements are based upon management's evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results could differ from these estimates, and the effect of any change in estimates will be adjusted in the financial statements when they become reasonably determinable. |
Judgements, estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under these circumstances. |
Judgements |
In the course of preparing the company's financial statements, no judgements have been made in the process of applying the company's accounting policies, other than those involving estimates as below. |
Estimates and assumptions |
Amounts recoverable under contract: |
Contract revenue and costs are recognised when the outcome of a construction contract can be reliably estimated. The percentage of completion method is used to value revenue and costs at year end, these are included in the profit or loss account. At year end, the company reviews the recoverability of amounts already recognised as contract revenue. If, on the review of market conditions and conversations with the client, the debtor is not considered to be recoverable, the unrecoverable amount will be expensed in the year. When, on review of production schedules, it is deemed probable that total contract costs will exceed total contract revenue the expected loss is recognised as an expense immediately, with a corresponding provision for an onerous contract. |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ACCOUNTING POLICIES - continued |
Revenue |
Turnover represents net invoices sales of goods and services , excluding value added tax. The majority of turnover is on long term contracts. These contracts are assessed on a contract by contract basis and are reflected in the profit and loss account by recording turnover and related costs by reference to the stage of completion at the reporting date. Where the outcome of each long-term contract can be assessed with reasonable certainty before its conclusion, the attributable profit is recognised in the profits and loss account as the difference between the reported turnover and related costs for that contract. Provision is made for all known or expected losses. |
Long term contracts |
Turnover on long term contracts is recognised according to the stage reached in the contract by reference to the value of work done. A prudent estimate of the profit attributable to work completed is recognised once the outcome of the contract can be assessed with reasonable certainty. The amount by which turnover exceeds payments on account is shown under debtors as amount recoverable on contracts. Where payments on account exceed turnover these are shown under creditors as payments received on account. |
Tangible assets |
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. |
The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Income Statement during the period in which they are incurred. |
Depreciation |
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows: |
Plant and machinery | 3-5 Years |
The assets' residual values, useful lives and depredation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement. |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ACCOUNTING POLICIES - continued |
Government grants |
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. |
Government grants are recognised using the accrual model and the performance model. |
Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. |
Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. |
Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability. |
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 tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ACCOUNTING POLICIES - continued |
Foreign currencies |
The company's functional and presentational currency is GBP. |
Transactions and balances |
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. |
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. |
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges. |
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Income Statement within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Income Statement within 'other operating income'. |
Operating leases |
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis. |
Employee benefits |
Defined contribution pension plan |
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. |
The contributions are recognised as an expense in the Income Statement when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administrated funds. |
Interest income |
Interest income is recognised in profit or loss using the effective interest method. |
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
Debtors |
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Creditors |
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ACCOUNTING POLICIES - continued |
Provision for liabilities |
Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
Provisions are charged as an expense to in the income statement in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position. |
Share capital |
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new |
shares or options are shown in equity as a deduction, net of tax from the proceeds. |
Other financial assets |
Other financial assets comprise of trade debtors, amounts due from group and related undertakings and other debtors. Other financial assets are initially measured at the undiscounted amount of cash receivable and are subsequently measured at amortised cost less impairment, where there is objective evidence of an impairment. |
Other financial liabilities |
Other financial liabilities include trade creditors and amounts owed to group undertakings and other creditors. Other financial liabilities are measured at invoice cost, unless payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate. In this case the arrangement constitutes a financing transaction, and the financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan. |
Investments in non-derivative instruments that are equity to the issuer are measured: |
- at fair value with changes recognised in the Income Statement if the shares are publicly traded or their fair value can otherwise be measured reliably; and |
- at cost less impairment for all other investments. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the Statement of Financial Position date. |
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
4. | TURNOVER |
All turnover arose within the United Kingdom & Republic of Ireland and is attributable to the principal activities of the company. |
5. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Government grants |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
6. | EMPLOYEES AND DIRECTORS |
Staff costs were as follows: |
2023 | 2022 |
£ | £ |
Wages and salaries | 8,079,037 | 6,731,559 |
Social security costs | 843,830 | 688,738 |
Other pension costs | 302,158 | 254,008 |
9,225,025 | 7,674,305 |
The average number of employees during the year was as follows: |
2023 | 202 2 |
Production | 221 | 181 |
Administration | 30 | 30 |
251 | 211 |
The directors' aggregate remuneration in respect of qualifying services was: |
2023 | 2022 |
£ | £ |
Remuneration | 362,418 | 281,015 |
Company contributions to defined contribution pension plans | 13,873 | 13,339 |
376,921 | 294,354 |
The number of directors who accrued benefits under company pension plans during the year was 2 (2022: 2). |
Remuneration of the highest paid director in respect of qualifying services: |
2023 | 2022 |
£ | £ |
Aggregate remuneration | 184,400 | 149,200 |
Company contributions to defined contributions pension plans | 7,000 | 6,890 |
191,400 | 156,090 |
7. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation | 55,741 | - |
Foreign exchange differences | (2,103 | ) | 36,398 |
Operating lease rental | 10,810 | 6,787 |
The audit fee is borne by fellow group undertaking Lagan Services Limited. |
8. | FINANCE INCOME |
2023 | 2022 |
£ | £ |
Bank interest received |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
9. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
Adjustments in respect of |
prior periods | 34,022 | - |
Total current tax | ( |
) |
Deferred tax |
Tax on profit | ( |
) |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Adjustments to tax charge in respect of previous periods |
Deferred tax not recognised | (210,718 | ) | (267,931 | ) |
Deferred tax | (4,211 | ) | - |
Fixed assets differences | (13,298 | ) | - |
Remeasured of deferred tax for changes in tax rates | 71,136 | - |
Foreign PE exemption | 9,900 | - |
Total tax charge/(credit) | 82,622 | (17,516 | ) |
Factors that may affect future tax charges |
Changes to the UK corporation tax rates were substantively enacted as part of Finance Act 2021 (published on 24 May 2021, with royal assent received on 10 June 2021). This confirmed an increase to the corporation tax rate to 25% with effect from 1 April 2023. Deferred taxes at the Balance Sheet date have been calculated based on the corporation tax rate of 25% that is enacted at the reporting date. |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
10. | PROPERTY, PLANT AND EQUIPMENT |
Plant and |
machinery |
£ |
COST |
At 1 April 2022 |
Additions |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
11. | RECEIVABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade receivables |
Amounts owed by group undertakings |
Amounts owed by related parties |
Amounts recoverable on contract |
Deferred tax asset |
Prepayments and accrued income |
Amounts due from group companies are unsecured, interest free and repayable on demand. |
12. | PAYABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade payables |
Amounts owed to group undertakings |
Amounts owed to related parties | 71,766 | - |
Social security and other taxes |
Accruals and deferred income |
Amounts due to group companies are unsecured, interest free and repayable on demand. |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
13. | PROVISIONS FOR LIABILITIES |
The deferred tax included in the statement of financial position is as follows: |
2023 | 2022 |
£ | £ |
Included in debtors (Note 8) | 52,122 | 52,122 |
The deferred tax account consists of the tax effect of timing differences in respect of: |
2023 | 2022 |
£ | £ |
Accelerated capital allowances | (49,458 | ) | (49,458 | ) |
Other timing differences | (2,664 | ) | (2,664 | ) |
Provision | (499,000 | ) | - |
(551,122 | ) | (52,122 | ) |
A deferred tax asset not recognised of £642,588 (2022:£890,387) exists at the year end date. |
14. | CALLED UP SHARE CAPITAL |
Issued, called up and fully paid |
2023 | 2022 |
No. | £ | No. | £ |
Ordinary shares of £1 each |
80,000 |
80,000 |
80,000 |
80,000 |
Preference shares of £1 each |
6,000,000 |
6,000,000 |
6,000,000 |
6,000,000 |
6,080,000 | 6,080,000 | 6,080,000 | 6,080,000 |
15. | RESERVES |
Retained |
earnings |
£ |
At 1 April 2022 | ( |
) |
Profit for the year |
At 31 March 2023 |
Other reserves represents capital contributions. |
16. | PENSION COMMITMENTS |
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £302,158 (2022: £254,008). |
17. | CONTINGENCIES |
H&J Martin Limited has provided an unlimited inter-company cross guarantee to cover any bonds in Lagan Specialist Contracting Group Holdings Limited, Lagan Construction Limited, H&J Martin Holdings Limited, F K Lowry Plant Limited, F K Lowry Limited, Dew Piling Limited, Lagan Projects Investments Limited, Lagan Operations and Maintenance Limited, Lagan International Limited, F K Lowry Holdings Limited, Lagan Operations and Maintenance Holdings Limited, Charles Brand Group Limited. |
H.& J. MARTIN LIMITED (REGISTERED NUMBER: R0000273) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
18. | OPERATING LEASES |
The total future minimum lease payments under non-cancellable operating leases are as follows: |
2023 | 2022 |
£ | £ |
Not later than 1 year | 690,331 | 449,265 |
Later than 1 year and not later than 5 years | 1,270,822 | 728,614 |
1,961,153 | 1,177,879 |
19. | RELATED PARTY DISCLOSURES |
The company has taken advantage of the exemption not to disclose any transactions with its parent or fellow 100% owned subsidiary undertakings on the grounds that it is a 100% owned subsidiary and included in the consolidated accounts of Lagan Specialist Contracting Group Holdings Limited. |
At the year end 31 March 2023 there were amounts owed to related parties of £71,766 (2022: £nil) and amounts receivable by related parties of £124,546 (2022: £Nil). Sales to related parties in year amounted to £103,903 (2022: £nil). The related parties are related by virtue of common directors. |
No other transactions with related parties were undertaken such as are required to be disclosed under FRS 102 paragraph 33. |
20. | POST BALANCE SHEET EVENTS |
There have been no events since the balance sheet date which materially affect the position of the company. |
21. | ULTIMATE CONTROLLING PARTY |
The immediate parent company is H&J Martin Group Limited, a company incorporated in Northern Ireland. The ultimate parent company is Lagan Specialist Contracting Group Holdings Limited, a company incorporated in the Isle of Man. |
The largest group for which consolidated accounts are prepared including the results of this |
company is Lagan Specialist Contracting Group Holdings Limited. |
The smallest group for which consolidated accounts are prepared including the results of this company is H&J Martin Group Limited, a company incorporated in Northern Ireland. |
The Lagan family is deemed to be the ultimate controlling party. |