Company No: SC417574 (Scotland)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2023		2022
		£		£
Fixed assets
Intangible assets	3	6,500		8,000
Tangible assets	4	1,484,641		1,434,940
Investments	5	200		200
		1,491,341		1,443,140
Current assets
Stocks	6	545,417		366,164
Debtors
- due within one year	7	670,128		733,154
- due after more than one year	7	601,535		737,953
Cash at bank and in hand	8	41,268		114,570
		1,858,348		1,951,841
Creditors: amounts falling due within one year	9	( 911,735)		( 860,574)
Net current assets		946,613		1,091,267
Total assets less current liabilities		2,437,954		2,534,407
Creditors: amounts falling due after more than one year	10	( 869,430)		( 974,744)
Provision for liabilities	11, 12	( 76,519)		( 69,946)
Net assets		1,492,005		1,489,717
Capital and reserves
Called-up share capital	13	2		2
Profit and loss account		1,492,003		1,489,715
Total shareholders' funds		1,492,005		1,489,717

For the financial year ending 28 February 2023 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

• The members have not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The director acknowledges their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Statement of Income and Retained Earnings has not been delivered.

The financial statements of Elder & Paton (Perth) Limited (registered number: SC417574) were approved and authorised for issue by the Director on 29 September 2023. They were signed on its behalf by:

Mr P Paton Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Elder & Paton (Perth) Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in Scotland. The address of the Company's registered office is Arran Road, North Muirton, PH1 3DZ, Scotland, United Kingdom.

The financial statements have been prepared under the historical cost convention, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.

Group accounts exemption

Group accounts exemption s399
The Company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the Company as an individual entity and not about its group.

Turnover

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

Revenue is recognised when the company has entitlement to the income in exchange for the provision of services.

Employee benefits

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

Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Statement of Income and Retained Earnings in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Balance Sheet.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Intangible assets

Intangible assets are stated at cost or valuation, net of amortisation and any provision for impairment. Amortisation is provided on all intangible assets at rates to write off the cost or valuation of each asset over its expected useful life as follows:

Goodwill

13 years straight line

Goodwill

Goodwill arises on business combination and represents any excess of consideration given over the fair value of the identifiable assets and liabilities acquired. Goodwill is initially recognised as an intangible asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Land and buildings	50 years straight line
Plant and machinery etc.	15 - 25 % reducing balance

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

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.

Leases

The Company as lessee
Assets held under hire purchase contracts, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Statement of Income and Retained Earnings over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Income and Retained Earnings as described below.

Non-financial assets
At each balance sheet date, the company reviews 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).

Fixed asset investments

Interests in subsidiaries 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.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Provision is made for obsolete, slow-moving or defective items where appropriate.

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.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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 assets
Basic financial assets, which include debtors, 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.

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 payments 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.

Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

Government grants

Government grants are recognised based on the performance model and are measured at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received.

A grant that specifies performance conditions is recognised in income only when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the grant proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Provisions

Deferred tax provisions are recognised when the Company has a present obligation as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation.

2. Employees

	2023		2022
	Number		Number
Monthly average number of persons employed by the Company during the year, including the director	51		49

3. Intangible assets

	Goodwill		Total
	£		£
Cost
At 01 March 2022	20,000		20,000
At 28 February 2023	20,000		20,000
Accumulated amortisation
At 01 March 2022	12,000		12,000
Charge for the financial year	1,500		1,500
At 28 February 2023	13,500		13,500
Net book value
At 28 February 2023	6,500		6,500
At 28 February 2022	8,000		8,000

4. Tangible assets

	Land and buildings		Plant and machinery etc.		Total
	£		£		£
Cost
At 01 March 2022	1,070,725		784,831		1,855,556
Additions	0		153,254		153,254
At 28 February 2023	1,070,725		938,085		2,008,810
Accumulated depreciation
At 01 March 2022	0		420,616		420,616
Charge for the financial year	21,415		82,138		103,553
At 28 February 2023	21,415		502,754		524,169
Net book value
At 28 February 2023	1,049,310		435,331		1,484,641
At 28 February 2022	1,070,725		364,215		1,434,940

5. Fixed asset investments

Investments in subsidiaries

	2023
	£
Cost
At 01 March 2022	200
At 28 February 2023	200
Carrying value at 28 February 2023	200
Carrying value at 28 February 2022	200

6. Stocks

	2023		2022
	£		£
Stocks	33,000		33,000
Work in progress	512,417		333,164
	545,417		366,164

7. Debtors

	2023		2022
	£		£
Debtors: amounts falling due within one year
Trade debtors	288,890		280,426
Amounts owed by connected persons (note 14)	88,928		103,209
Corporation tax	0		4,059
Other debtors	292,310		345,460
	670,128		733,154
Debtors: amounts falling due after more than one year
Amounts owed by Group undertakings (note 14)	570,733		606,560
Amounts owed by related parties (note 14)	30,802		131,393
	601,535		737,953

8. Cash and cash equivalents

	2023		2022
	£		£
Cash at bank and in hand	41,268		114,570

9. Creditors: amounts falling due within one year

	2023		2022
	£		£
Bank loans (secured £ 29,611)	39,543		35,855
Trade creditors	566,384		511,392
Taxation and social security	164,479		204,435
Obligations under finance leases and hire purchase contracts (secured)	60,199		54,926
Other creditors	81,130		53,966
	911,735		860,574

Included in bank loans are loans which are secured by a fixed charge over the property and a floating charge over the assets of the company of £29,611 (2022 - £26,168).

Also included in bank loans are amounts advanced to the company under the bounce back loan scheme of £9,932 (2022 - £9,687). This loan is covered by a government backed guarantee.

Net obligations under hire purchase contracts are secured over the related assets.

10. Creditors: amounts falling due after more than one year

	2023		2022
	£		£
Bank loans (secured £ 746,598)	769,872		807,038
Obligations under finance leases and hire purchase contracts (secured)	84,728		84,614
Other creditors	14,830		83,092
	869,430		974,744

Included in bank are loans which are secured by a fixed charge over the property and a floating charge over the assets of the company of £746,598 (2022 - £773,832).

Also included in bank loans are amounts advanced to the company under the bounce back loan scheme of £23,274 (2022 - £33,206). This loan is covered by a government backed guarantee.

Net obligations under hire purchase contracts are secured over the related assets.

Amounts repayable after more than 5 years are included in creditors falling due over one year:

	2023		2022
	£		£
Bank loans (repayable by instalments)	615,629		647,782

11. Provision for liabilities

	2023		2022
	£		£
Deferred tax	76,519		69,946

12. Deferred tax

	2023		2022
	£		£
At the beginning of financial year	( 69,946)		( 34,671)
Charged to the Statement of Income and Retained Earnings	( 6,573)		( 35,275)
At the end of financial year	( 76,519)		( 69,946)

13. Called-up share capital

	2023		2022
	£		£
Allotted, called-up and fully-paid
1 Ordinary A share of £ 1.00	1		1
1 Ordinary B share of £ 1.00	1		1
	2		2

14. Related party transactions

Transactions with group companies

Amounts owed by Group undertakings

	2023		2022
	£		£
Entities over which the entity has control, joint control or significant influence	570,733		606,560

Transactions with related parties or connected persons

Amounts owed by connected persons

	2023		2022
	£		£
Loan	88,928		103,209

Advances were made in this period to the shareholder totalling £141,412 and £157,428 was repaid. Interest of £1,735 was charged at HMRC's official interest rate of 2%. This loan is unsecured and has no fixed terms of repayment.

Amounts owed by related parties

	2023		2022
	£		£
Other related parties	30,802		131,393

Transactions with the entity’s director (or members of its governing body)

Amounts owed by director

	2023		2022
	£		£
Loan	199,430		232,933

Advances were made in this period to the director totalling £72,096 and £109,432 was repaid. Interest of £3,833 was charged at HMRC's official interest rate of 2%. This loan is unsecured and has no fixed terms of repayment.