Company Registration No. SC142597 (Scotland)
R. S. MERRIMAN LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022
PAGES FOR FILING WITH REGISTRAR
R. S. MERRIMAN LIMITED
CONTENTS
Page
Accountants' report
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 12
R. S. MERRIMAN LIMITED
REPORT TO THE DIRECTOR ON THE PREPARATION OF THE UNAUDITED STATUTORY ACCOUNTS OF R. S. MERRIMAN LIMITED
- 1 -

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of R. S. Merriman Limited for the year ended 31 January 2022 which comprise, the balance sheet 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 the ICAS we are subject to its ethical and other professional requirements which are detailed at https://icas.com/icas-framework-preparation-of-accounts

This report is made solely to the Board of Directors of R. S. Merriman Limited, as a body, in accordance with the terms of our engagement letter dated 19 March 2014. Our work has been undertaken solely to prepare for your approval the financial statements of R. S. Merriman Limited and state those matters that we have agreed to state to the Board of Directors of R. S. Merriman Limited, as a body, in this report in accordance with the requirements of the ICAS as detailed at https://icas.com/icas-framework-preparation-of-accounts. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than R. S. Merriman Limited and its Board of Directors as a body, for our work or for this report.

It is your duty to ensure that R. S. Merriman 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 R. S. Merriman Limited. You consider that R. S. Merriman 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 R. S. Merriman 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.

A.J.B. Scholes Limited
21 June 2022
Chartered Accountants
8 Albert Street
Kirkwall
Orkney
KW15 1HP
R. S. MERRIMAN LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2022
31 January 2022
- 2 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
4
6,371
7,433
Tangible assets
5
501,121
407,730
Investments
6
625
625
508,117
415,788
Current assets
Stocks
173,905
80,347
Debtors
7
615,393
574,903
Cash at bank and in hand
943,309
651,188
1,732,607
1,306,438
Creditors: amounts falling due within one year
8
(489,439)
(493,874)
Net current assets
1,243,168
812,564
Total assets less current liabilities
1,751,285
1,228,352
Creditors: amounts falling due after more than one year
9
(67,485)
(92,974)
Provisions for liabilities
10
(78,886)
(39,131)
Deferred grants
11
(4,200)
(5,400)
Net assets
1,600,714
1,090,847
Capital and reserves
Called up share capital
12
11,100
10,200
Share premium account
65,047
65,047
Capital redemption reserve
6,667
6,667
Profit and loss reserves
1,517,900
1,008,933
Total equity
1,600,714
1,090,847
R. S. MERRIMAN LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 JANUARY 2022
31 January 2022
- 3 -

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 January 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The financial statements were approved by the board of directors and authorised for issue on 21 June 2022 and are signed on its behalf by:
Mr A Merriman
Director
Company Registration No. SC142597
R. S. MERRIMAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022
- 4 -
1
Accounting policies
Company information

R. S. Merriman Limited is a private company limited by shares incorporated in Scotland. The registered office is Garson Way, Stromness, Orkney, KW16 3EF.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and trade discounts.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Profit is recognised on long-term contracts, if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs to date bear to total expected costs for that contract.

1.3
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

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

Software
10% on cost
1.4
Tangible fixed assets

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

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

Land and buildings Leasehold
3.13% on cost (period of lease)
Plant and machinery
10% on cost
Motor vehicles
20% on cost
R. S. MERRIMAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
1
Accounting policies
(Continued)
- 5 -

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

1.5
Fixed asset investments

Interests in unlisted entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

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

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

R. S. MERRIMAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
1
Accounting policies
(Continued)
- 6 -
1.8
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

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

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and bank.

1.10
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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

R. S. MERRIMAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
1
Accounting policies
(Continued)
- 7 -
Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

 

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

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

1.11
Equity instruments

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

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

R. S. MERRIMAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
1
Accounting policies
(Continued)
- 8 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.16
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

R. S. MERRIMAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
1
Accounting policies
(Continued)
- 9 -
1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

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

 

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

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2022
2021
Number
Number
Total
41
35
4
Intangible fixed assets
Software
£
Cost
At 1 February 2021 and 31 January 2022
10,619
Amortisation and impairment
At 1 February 2021
3,186
Amortisation charged for the year
1,062
At 31 January 2022
4,248
Carrying amount
At 31 January 2022
6,371
At 31 January 2021
7,433
R. S. MERRIMAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
- 10 -
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 February 2021
206,109
436,253
642,362
Additions
-
0
199,699
199,699
Disposals
-
0
(71,044)
(71,044)
At 31 January 2022
206,109
564,908
771,017
Depreciation and impairment
At 1 February 2021
29,721
204,911
234,632
Depreciation charged in the year
6,540
86,347
92,887
Eliminated in respect of disposals
-
0
(57,623)
(57,623)
At 31 January 2022
36,261
233,635
269,896
Carrying amount
At 31 January 2022
169,848
331,273
501,121
At 31 January 2021
176,388
231,342
407,730

Property, plant and equipment with a carrying amount of £228,671 (2021 - £219,429) has been pledged to secure borrowings of the company.

6
Fixed asset investments
2022
2021
£
£
Investments
625
625
Movements in fixed asset investments
Unlisted investments
£
Cost or valuation
At 1 February 2021 & 31 January 2022
625
Carrying amount
At 31 January 2022
625
At 31 January 2021
625
R. S. MERRIMAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
- 11 -
7
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
348,247
220,757
Other debtors
267,146
354,146
615,393
574,903
8
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans
16,150
10,897
Trade creditors
138,436
147,315
Taxation and social security
221,520
205,303
Other creditors
113,333
130,359
489,439
493,874

Creditors falling due within one year include loans from the directors totalling £29,344 (2021 £25,514) which are interest free and repayable on demand.

9
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
59,848
76,611
Other creditors
7,637
16,363
67,485
92,974

The company has a bank overdraft and long-term loan which are secured with a bond and floating charge over the assets of the company, and a standard security over leasehold property, both in favour of Bank of Scotland PLC.

 

The company operates certain plant and machinery acquired on hire purchase terms.

Creditors which fall due after five years are as follows:
2022
2021
£
£
Payable by instalments
-
10,416
R. S. MERRIMAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022
- 12 -
10
Provisions for liabilities
2022
2021
£
£
Deferred tax liabilities
78,886
39,131
11
Government grants
2022
2021
£
£
Arising from government grants
4,200
5,400
12
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A shares of £1 each
5,000
5,000
5,000
5,000
B shares of £1 each
5,000
5,000
5,000
5,000
C shares of £1 each
100
100
100
100
D shares of £1 each
100
100
100
100
E shares of £1 each
100
-
100
-
F shares of £1 each
100
-
100
-
G shares of £1 each
100
-
100
-
H shares of £1 each
100
-
100
-
I shares of £1 each
100
-
100
-
J shares of £1 each
100
-
100
-
K shares of £1 each
100
-
100
-
L shares of £1 each
100
-
100
-
M shares of £1 rach
100
-
100
-
Total equity share capital
11,100
10,200
11,100
10,200

During the year the company allotted and issued the following shares of £1 each nominal value: 100 E shares,100 F shares, 100 G shares, 100 H shares, 100 I shares, 100 J shares, 100 K shares, 100 L shares and 100 M shares, for cash consideration of £900.

13
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2022
2021
£
£
155,358
161,112
2022-01-312021-02-01false21 June 2022CCH SoftwareCCH Accounts Production 2022.200No description of principal activityMr A MerrimanMr B MuirMr A MerrimanSC1425972021-02-012022-01-31SC1425972022-01-31SC1425972021-01-31SC142597core:IntangibleAssetsOtherThanGoodwill2022-01-31SC142597core:IntangibleAssetsOtherThanGoodwill2021-01-31SC142597core:LandBuildings2022-01-31SC142597core:OtherPropertyPlantEquipment2022-01-31SC142597core:LandBuildings2021-01-31SC142597core:OtherPropertyPlantEquipment2021-01-31SC142597core:CurrentFinancialInstrumentscore:WithinOneYear2022-01-31SC142597core:CurrentFinancialInstrumentscore:WithinOneYear2021-01-31SC142597core:Non-currentFinancialInstrumentscore:AfterOneYear2022-01-31SC142597core:Non-currentFinancialInstrumentscore:AfterOneYear2021-01-31SC142597core:CurrentFinancialInstruments2022-01-31SC142597core:CurrentFinancialInstruments2021-01-31SC142597core:Non-currentFinancialInstruments2022-01-31SC142597core:Non-currentFinancialInstruments2021-01-31SC142597core:ShareCapital2022-01-31SC142597core:ShareCapital2021-01-31SC142597core:SharePremium2022-01-31SC142597core:SharePremium2021-01-31SC142597core:CapitalRedemptionReserve2022-01-31SC142597core:CapitalRedemptionReserve2021-01-31SC142597core:RetainedEarningsAccumulatedLosses2022-01-31SC142597core:RetainedEarningsAccumulatedLosses2021-01-31SC142597bus:CompanySecretaryDirector12021-02-012022-01-31SC142597core:IntangibleAssetsOtherThanGoodwill2021-02-012022-01-31SC142597core:ComputerSoftware2021-02-012022-01-31SC142597core:LandBuildingscore:LongLeaseholdAssets2021-02-012022-01-31SC142597core:PlantMachinery2021-02-012022-01-31SC142597core:MotorVehicles2021-02-012022-01-31SC1425972020-02-012021-01-31SC142597core:IntangibleAssetsOtherThanGoodwill2021-01-31SC142597core:LandBuildings2021-01-31SC142597core:OtherPropertyPlantEquipment2021-01-31SC1425972021-01-31SC142597core:LandBuildings2021-02-012022-01-31SC142597core:OtherPropertyPlantEquipment2021-02-012022-01-31SC142597core:WithinOneYear2022-01-31SC142597core:WithinOneYear2021-01-31SC142597bus:PrivateLimitedCompanyLtd2021-02-012022-01-31SC142597bus:SmallCompaniesRegimeForAccounts2021-02-012022-01-31SC142597bus:FRS1022021-02-012022-01-31SC142597bus:AuditExemptWithAccountantsReport2021-02-012022-01-31SC142597bus:Director12021-02-012022-01-31SC142597bus:Director22021-02-012022-01-31SC142597bus:CompanySecretary12021-02-012022-01-31SC142597bus:FullAccounts2021-02-012022-01-31xbrli:purexbrli:sharesiso4217:GBP