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REGISTERED NUMBER: SC183317 (Scotland)













GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2022

FOR

SCOTWELD GROUP SERVICES LIMITED

SCOTWELD GROUP SERVICES LIMITED (REGISTERED NUMBER: SC183317)






CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Consolidated Statement of Comprehensive Income 9

Consolidated Balance Sheet 10

Company Balance Sheet 11

Consolidated Statement of Changes in Equity 12

Company Statement of Changes in Equity 13

Consolidated Cash Flow Statement 14

Notes to the Consolidated Cash Flow Statement 15

Notes to the Consolidated Financial Statements 16


SCOTWELD GROUP SERVICES LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 JULY 2022







DIRECTORS: George Nixon
Fiona Baggley
Rajeev Sinha





SECRETARY: Fiona Baggley





REGISTERED OFFICE: 270 Petershill Road
Glasgow
G21 4AY





REGISTERED NUMBER: SC183317 (Scotland)





AUDITORS: Cornerstone Accountants, Statutory Auditor
6th Floor
Gordon Chambers
90 Mitchell Street
Glasgow
G1 3NQ

SCOTWELD GROUP SERVICES LIMITED (REGISTERED NUMBER: SC183317)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2022

The directors present their strategic report of the company and the group for the year ended 31 July 2022.

REVIEW OF BUSINESS
The year to 31st July 2022 was impacted in a similar way to the last two years by the Covid 19 Pandemic. The group saw a material reduction in work in the months of December to March due to tight restrictions introduced by the Scottish and English governments. The lockdowns and restrictions, accompanied with significant inflation on fuel and transportation costs due to global events, has resulted in the business making a loss for the year. However, whilst this is disappointing, these issues are temporary. The business will continue to support and engage with its workforce and various stakeholders and fulfil all its liabilities and commitments on time.

As a result of these factors, turnover in the year increased by 4.6%, a slower growth rate than in the prior year, 13.7%. Gross margin decreased to 20.3% from 27.3%, contributing to an operating loss after tax for the year of 1.9%, compared to 0.8% operating profit in the prior year.The group retains positive net assets of £1.8m, down from £2.1m in the prior year.

The group continues to further its spread of new clients and markets. Last year the group won a significant contract with the Rail System Alliance in Scotland, which continues to perform well. During this financial year the business won a significant contract for the London North-Western route and the surrounding area. It also retained all contracts that have come up for renewal, plus entered into new alliances.

The group prides itself on its safety record, staff training, assessment and development. Our dedicated HSQE and HR departments work in tandem with our operational managers to ensure that our policies and procedures are carried out faithfully, ensure fairness and equitable treatment for all staff, workers, suppliers and clients. In addition, we continue to be highly regarded by various industry bodies such as BSI, Sentinel, RICA, TWI, IIP, UVDB and have been nominated for many awards during the year.

KEY PERFORMANCE INDICATORS (KPIS)
Financial KPIs
The directors use Financial Key Performance Indicators to measure and monitor sales levels, gross margins, overheads and net profitability.

2022 2021
Growth in turnover 4.6% 13.7%
Gross profit percentage 20.3% 27.3%
Operating (loss)/profit percentage after tax (1.9)% 0.8%

For the period under review, each of those indicators are measured against pre-set targets. These are analysed monthly for each of the twelve profit centres operating within the company. The KPls are reviewed by the Board monthly using a traffic light system where green is satisfactory, amber for concern and red requires immediate review and attention. The result is that underperformance is flagged up quickly, discussed with appropriate members of the management team, and corrective action taken without delay. The KPIs assessed were largely in line with management expectations. Where a negative trend starts to develop corrective action is implemented.

Non Financial KPIs
The company measure and monitor its performance by means of KPIs which are set annually. The most important measure in place is the safety and well-being of our employees who remain our most important asset. In order to achieve this, we set a target of "Zero Injury or Harm" and this is monitored and measured throughout the year by our dedicated HSQE Department. In relation to our Corporate and Social Responsibility, each year new targets are set to reduce our Carbon Foot Print. The business measures its output every month against key targets including but not limited to fuel usage, energy usage and waste produced. Each year objectives are set in these areas as we strive to hit net zero.


SCOTWELD GROUP SERVICES LIMITED (REGISTERED NUMBER: SC183317)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2022

PRINCIPAL RISKS AND UNCERTAINTIES
Financial Risk Management
The group monitors working capital management strictly. Financial management risk is largely negated due to the net worth and financial viability of the company.

The group's principal financial instruments comprise cash and borrowing.

The company has various other financial instruments such as trade debtors and creditors that arise directly from its trading operations.

The main risks arising from the company's financial instruments are with liquidity and credit. The company has clear policies for managing these risks as summarised below.

Liquidity Risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. Investment levels and cash flows are carefully controlled, with authorisation limits operating at different levels up to board level.

Credit Risk
Risk of financial loss due to a counterpart's failure to honour its obligations arises principally in relation to transactions where the group provides goods or services on deferred credit terms. Company policies are aimed at minimising such losses, and require that deferred credit terms are granted only to customers who demonstrate an appropriate payment history and satisfy creditworthiness procedures.

Cash Flow Risk
The company finances ongoing activities and capital expenditure through a combination of retained profits and bank borrowings. The company operates a strict regime of working capital management to mitigate cash flow risk. Detailed financial planning and regular monitoring of cash flow are used to manage the facilities and maintain the company's adherence with repayment schedules.

Competitive Risk Assessment
The group operates in a competitive environment; however, the director believes that the group through continued focus on cost reduction and continued investment in new products is well placed to continue developing its market share..

FUTURE PROSPECTS
With Covid 19 Pandemic now starting to fade, the business hopes that restrictions and lockdowns are a thing of the past. The business workflow in the coming year will be less stop-start and return to a steady workflow. Excessively high fuel and transport costs should reduce in the coming 12 months. Both elements will put the business on a better, more profitable footing, whilst it seeks to take on two significant large contracts in England during 2023, plus further its current strategic alliances and explore potential new ones.

ON BEHALF OF THE BOARD:





Fiona Baggley - Secretary


6 November 2023

SCOTWELD GROUP SERVICES LIMITED (REGISTERED NUMBER: SC183317)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JULY 2022

The directors present their report with the financial statements of the company and the group for the year ended 31 July 2022.

DIVIDENDS
Dividends of £100,000 were paid during the year (2021: £105,000).

DIRECTORS
George Nixon has held office during the whole of the period from 1 August 2021 to the date of this report.

Other changes in directors holding office are as follows:

Fiona Baggley - appointed 15 July 2022
Rajeev Sinha - appointed 15 July 2022

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
The auditors, Cornerstone Accountants, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:



Fiona Baggley - Secretary


6 November 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SCOTWELD GROUP SERVICES LIMITED

Opinion
We have audited the financial statements of Scotweld Group Services Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2022 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 July 2022 and of the group's loss 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 group 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 group's and the parent 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 Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SCOTWELD GROUP SERVICES LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company 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 Statement of Directors' Responsibilities set out on page four, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SCOTWELD GROUP SERVICES LIMITED


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 a Report of the Auditors 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 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 the financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures to respond to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we consider the following:
- The nature of the industry, control environment and business performance of the company
- The requests of our enquires with management and Directors about their own identification and assessment of risks of irregularities.
- The matters discussed among the audit engagement team regarding how and where fraud might occur in the
financial statements and any potential indicators of fraud.

As a result of these procedures, we consider the opportunities and incentives that may exist within the company for fraud. In common with all audits under ISAs (UK), we perform specific procedures to respond to the risk of management override.

We also obtain an understanding of the legal and regulatory environment in which the company operates, focusing on those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements and those which may be fundamental to the company's ability to operate.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to The Health and Safety at Work Act, compliance with industry specific regulations regarding work performed on the railway, and compliance with FRS 102 and the Companies Act 2006.

The audit engagement team identified the risk of management override of controls, revenue recognition and compliance with laws and regulations as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures for management override of controls performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business. For revenue recognition procedures included but were not limited to testing revenue substantively, cut-off testing and testing of credit notes. For compliance with laws and regulations procedures included but were not limited to review of certifications, review of legal fees and enquiring with management about any non compliance.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SCOTWELD GROUP SERVICES LIMITED

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient, appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Susan Wood (Senior Statutory Auditor)
for and on behalf of Cornerstone Accountants, Statutory Auditor
6th Floor
Gordon Chambers
90 Mitchell Street
Glasgow
G1 3NQ

6 November 2023

SCOTWELD GROUP SERVICES LIMITED (REGISTERED NUMBER: SC183317)

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2022

2022 2021
Notes £    £   

TURNOVER 3 12,966,085 12,390,325

Cost of sales 10,333,090 9,003,311
GROSS PROFIT 2,632,995 3,387,014

Administrative expenses 2,920,626 3,517,427
(287,631 ) (130,413 )

Other operating income 30,156 260,379
OPERATING (LOSS)/PROFIT 5 (257,475 ) 129,966


Interest payable and similar expenses 6 524 39
(LOSS)/PROFIT BEFORE TAXATION (257,999 ) 129,927

Tax on (loss)/profit 7 (12,767 ) 25,650
(LOSS)/PROFIT FOR THE FINANCIAL
YEAR

(245,232

)

104,277

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(245,232

)

104,277

(Loss)/profit attributable to:
Owners of the parent (245,232 ) 104,277

Total comprehensive income attributable to:
Owners of the parent (245,232 ) 104,277

SCOTWELD GROUP SERVICES LIMITED (REGISTERED NUMBER: SC183317)

CONSOLIDATED BALANCE SHEET
31 JULY 2022

2022 2021
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 5,499 8,700
Tangible assets 11 1,123,322 1,115,762
Investments 12 - -
1,128,821 1,124,462

CURRENT ASSETS
Stocks 13 171,961 234,490
Debtors 14 2,255,707 1,608,581
Cash at bank and in hand 67,742 386,288
2,495,410 2,229,359
CREDITORS
Amounts falling due within one year 15 1,823,471 1,207,829
NET CURRENT ASSETS 671,939 1,021,530
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,800,760

2,145,992

CAPITAL AND RESERVES
Called up share capital 19 6 6
Share premium 599,997 599,997
Retained earnings 1,200,757 1,545,989
SHAREHOLDERS' FUNDS 1,800,760 2,145,992

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 6 November 2023 and were signed on its behalf by:





George Nixon - Director


SCOTWELD GROUP SERVICES LIMITED (REGISTERED NUMBER: SC183317)

COMPANY BALANCE SHEET
31 JULY 2022

2022 2021
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 - -
Tangible assets 11 1,333,057 1,364,616
Investments 12 809,049 809,049
2,142,106 2,173,665

CURRENT ASSETS
Cash at bank and in hand 35,423 106,072

CREDITORS
Amounts falling due within one year 15 195,741 221,390
NET CURRENT LIABILITIES (160,318 ) (115,318 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,981,788

2,058,347

CAPITAL AND RESERVES
Called up share capital 19 6 6
Share premium 599,997 599,997
Retained earnings 1,381,785 1,458,344
SHAREHOLDERS' FUNDS 1,981,788 2,058,347

Company's profit for the financial year 23,441 77,791

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 6 November 2023 and were signed on its behalf by:





George Nixon - Director


SCOTWELD GROUP SERVICES LIMITED (REGISTERED NUMBER: SC183317)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2022

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   

Balance at 1 August 2020 5 1,546,712 599,997 2,146,714

Changes in equity
Issue of share capital 1 - - 1
Dividends - (105,000 ) - (105,000 )
Total comprehensive income - 104,277 - 104,277
Balance at 31 July 2021 6 1,545,989 599,997 2,145,992

Changes in equity
Dividends - (100,000 ) - (100,000 )
Total comprehensive income - (245,232 ) - (245,232 )
Balance at 31 July 2022 6 1,200,757 599,997 1,800,760

SCOTWELD GROUP SERVICES LIMITED (REGISTERED NUMBER: SC183317)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2022

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   

Balance at 1 August 2020 5 1,485,553 599,997 2,085,555

Changes in equity
Issue of share capital 1 - - 1
Dividends - (105,000 ) - (105,000 )
Total comprehensive income - 77,791 - 77,791
Balance at 31 July 2021 6 1,458,344 599,997 2,058,347

Changes in equity
Dividends - (100,000 ) - (100,000 )
Total comprehensive income - 23,441 - 23,441
Balance at 31 July 2022 6 1,381,785 599,997 1,981,788

SCOTWELD GROUP SERVICES LIMITED (REGISTERED NUMBER: SC183317)

CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JULY 2022

2022 2021
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (531,842 ) (442,219 )
Interest paid (524 ) (39 )
Tax paid (12,883 ) (25,651 )
Net cash from operating activities (545,249 ) (467,909 )

Cash flows from investing activities
Purchase of intangible fixed assets - (9,700 )
Purchase of tangible fixed assets (135,226 ) (204,698 )
Sale of tangible fixed assets 21,951 -
Net cash from investing activities (113,275 ) (214,398 )

Cash flows from financing activities
Loan repayments in year - 3,598
Amount introduced by directors 87,484 233,203
Amount withdrawn by directors (21,724 ) (525,574 )
Share issue - 1
Government grant 1,679 258,225
Equity dividends paid (100,000 ) (105,000 )
Net cash from financing activities (32,561 ) (135,547 )

Decrease in cash and cash equivalents (691,085 ) (817,854 )
Cash and cash equivalents at beginning of
year

2

308,273

1,126,127

Cash and cash equivalents at end of year 2 (382,812 ) 308,273

SCOTWELD GROUP SERVICES LIMITED (REGISTERED NUMBER: SC183317)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 JULY 2022

1. RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2022 2021
£    £   
(Loss)/profit before taxation (257,999 ) 129,927
Depreciation charges 114,217 93,975
(Profit)/loss on disposal of fixed assets (5,301 ) 2,000
Government grants (1,679 ) (258,225 )
Finance costs 524 39
(150,238 ) (32,284 )
Decrease/(increase) in stocks 62,529 (152,254 )
Increase in trade and other debtors (690,778 ) (169,486 )
Increase/(decrease) in trade and other creditors 246,645 (88,195 )
Cash generated from operations (531,842 ) (442,219 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 July 2022
31/7/22 1/8/21
£    £   
Cash and cash equivalents 67,742 386,288
Bank overdrafts (450,554 ) (78,015 )
(382,812 ) 308,273
Year ended 31 July 2021
31/7/21 1/8/20
£    £   
Cash and cash equivalents 386,288 1,126,127
Bank overdrafts (78,015 ) -
308,273 1,126,127


3. ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1/8/21 Cash flow At 31/7/22
£    £    £   
Net cash
Cash at bank and in hand 386,288 (318,546 ) 67,742
Bank overdrafts (78,015 ) (372,539 ) (450,554 )
308,273 (691,085 ) (382,812 )
Total 308,273 (691,085 ) (382,812 )

SCOTWELD GROUP SERVICES LIMITED (REGISTERED NUMBER: SC183317)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2022

1. STATUTORY INFORMATION

Scotweld Group Services Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the General Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006.

The financial statements are presented 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 are set out below.

Basis of consolidation
The consolidated financial statements incorporate those of Scotweld Group Services Limited and its subsidiary undertaking for the year. Subsidiaries acquired during the year are consolidated using the acquisition method. Their results are incorporated from the date that control passes. All intra-group transactions, balances and unrealised gains between group companies are eliminated on consolidation.

Significant judgements and estimates
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying value 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.

Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates and value added tax. The following criteria must also be met before revenue is recognised:

Rendering of Services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
- the amount of revenue can be measured reliably;
- it is probable that the company will receive the consideration due under the contract;
- the stage of completion of the contract at the end of the reporting period can be measured reliably, and;
- the costs incurred and the costs to complete the contract can be measured reliably.

Sale of goods
Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is amortised evenly over its estimated useful life of three years.

SCOTWELD GROUP SERVICES LIMITED (REGISTERED NUMBER: SC183317)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2022

2. ACCOUNTING POLICIES - continued

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

Depreciation is provided at the following rates in order to write off each asset over its estimated useful life.

Freehold property- 2% on cost
Improvements to property- 25% on a straight line basis
Plant and machinery - 20-25% on a straight line basis
Motor vehicles - 20% on a straight line basis
Office equipment - 25-33% on a straight line basis
Fixtures and Fittings- 15% on a straight line basis

Impairment of fixed assets
At each reporting 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.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.


SCOTWELD GROUP SERVICES LIMITED (REGISTERED NUMBER: SC183317)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2022

2. ACCOUNTING POLICIES - continued
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.

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 taxable 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, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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.

Leasing and hire purchase commitments
Assets held under finance leases or hire purchase contracts are capitalised under tangible fixed assets in the balance sheet and depreciated over their useful economic lives. The capital element of the future payments is treated as a liability and the interest element charged to the profit and loss account.

Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over the term of the agreement.

Rentals received under the operating leases are credited to the profit and loss account on a straight line basis over the term of the agreement.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short term liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Debtors and creditors receivable/payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

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

SCOTWELD GROUP SERVICES LIMITED (REGISTERED NUMBER: SC183317)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2022

2. ACCOUNTING POLICIES - continued

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.

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

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.

Financial instruments
The group has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's statement of financial position when the group 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.

Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, 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.

SCOTWELD GROUP SERVICES LIMITED (REGISTERED NUMBER: SC183317)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2022

2. ACCOUNTING POLICIES - continued

Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

3. TURNOVER

The turnover and loss (2021 - profit) before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

2022 2021
£    £   
Sale of goods 613,963 606,089
Rendering of services 12,352,122 11,784,236
12,966,085 12,390,325

SCOTWELD GROUP SERVICES LIMITED (REGISTERED NUMBER: SC183317)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2022

4. EMPLOYEES AND DIRECTORS


2022 2021
£    £   

Wages and salaries 3,376,395 3,159,257
Social security costs 316,711 296,665
Other pension costs 61,102 119,658
3,754,208 3,575,580

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

2022 2021

Security 3 3
Admin 17 21
Service 116 62
136 86
The average number of employees by undertakings that were proportionately consolidated during the year was NIL (2021: NIL).

2022 2021
£    £   

Directors' remuneration 254,436 633,680
Directors' social security 29,600 73,635
Directors' pension contribution to money purchase schemes 6,500 64,124
290,536 771,439

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

2022 2021

Money purchase schemes 1 2

Information regarding the highest paid director is as follows:
2022 2021
£    £   

Director's remuneration 132,000 263,437
Director's social security 16,583 35,075
Director's pension contribution to money purchase schemes
148,583 298,512

SCOTWELD GROUP SERVICES LIMITED (REGISTERED NUMBER: SC183317)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2022

5. OPERATING (LOSS)/PROFIT

The operating loss (2021 - operating profit) is stated after charging/(crediting):

2022 2021
£    £   
Hire of plant and machinery 13,137 13,895
Depreciation - owned assets 111,016 92,976
(Profit)/loss on disposal of fixed assets (5,301 ) 2,000
Computer software amortisation 3,201 1,000
Audit and accountancy 7,885 6,726

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2022 2021
£    £   
Bank interest 524 39

7. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss for the year was as follows:
2022 2021
£    £   
Current tax:
UK corporation tax - 25,650
Prior year overprovision (12,767 ) -

Tax on (loss)/profit (12,767 ) 25,650

Reconciliation of total tax (credit)/charge 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:

2022 2021
£    £   
(Loss)/profit before tax (257,999 ) 129,927
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
0 % (2021 - 19 %)

-

24,686

Effects of:
Expenses not deductible for tax purposes - 5,996
Capital allowances in excess of depreciation - (5,032 )
Prior year overprovision (12,767 ) -
Total tax (credit)/charge (12,767 ) 25,650

8. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


SCOTWELD GROUP SERVICES LIMITED (REGISTERED NUMBER: SC183317)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2022

9. DIVIDENDS
2022 2021
£    £   
Ordinary shares of £0.0001 each
Final 100,000 105,000

10. INTANGIBLE FIXED ASSETS

Group

Negative
Goodwill
£
COST
At 1 August 2021
and 31 July 2022 (217,973 )

AMORTISATION
At 1 August 2021
and 31 July 2022 (217,973 )


NET BOOK VALUE
At 31 July 2022 -

At 31 July 2021 -

The negative goodwill has been released to the profit and loss account in prior periods.

SCOTWELD GROUP SERVICES LIMITED (REGISTERED NUMBER: SC183317)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2022

11. TANGIBLE FIXED ASSETS

Group
Improvements
Freehold to Plant and
property property machinery
£    £    £   
COST
At 1 August 2021 1,323,217 56,120 286,915
Additions - - 81,188
Disposals - - (176,118 )
At 31 July 2022 1,323,217 56,120 191,985
DEPRECIATION
At 1 August 2021 430,811 31,597 194,649
Charge for year 31,559 9,902 32,184
Eliminated on disposal - - (176,118 )
At 31 July 2022 462,370 41,499 50,715
NET BOOK VALUE
At 31 July 2022 860,847 14,621 141,270
At 31 July 2021 892,406 24,523 92,266

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 August 2021 17,747 134,515 121,558 1,940,072
Additions - 18,500 35,538 135,226
Disposals (16,966 ) (44,138 ) (82,500 ) (319,722 )
At 31 July 2022 781 108,877 74,596 1,755,576
DEPRECIATION
At 1 August 2021 17,487 63,145 86,621 824,310
Charge for year 123 19,861 17,387 111,016
Eliminated on disposal (16,966 ) (27,488 ) (82,500 ) (303,072 )
At 31 July 2022 644 55,518 21,508 632,254
NET BOOK VALUE
At 31 July 2022 137 53,359 53,088 1,123,322
At 31 July 2021 260 71,370 34,937 1,115,762

SCOTWELD GROUP SERVICES LIMITED (REGISTERED NUMBER: SC183317)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2022

11. TANGIBLE FIXED ASSETS - continued

Company
Freehold
property
£   
COST
At 1 August 2021
and 31 July 2022 1,577,972
DEPRECIATION
At 1 August 2021 213,356
Charge for year 31,559
At 31 July 2022 244,915
NET BOOK VALUE
At 31 July 2022 1,333,057
At 31 July 2021 1,364,616

12. FIXED ASSET INVESTMENTS

Company


Shares in
group
undertakings
£
COST
At 1 August 2021
and 31 July 2022 809,049

NET BOOK VALUE
At 31 July 2022 809,049

At 31 July 2021 809,049


The company's investments at the balance sheet date in the share capital of companies include the following subsidiary undertaking:


SW Global Resourcing Limited
Registered office: 70 Petershill Road, Glasgow, G21 4AY
Nature of business: Contract Employment

Proportion of shares held: 100%

All companies within the group have conterminous year ends.



SCOTWELD GROUP SERVICES LIMITED (REGISTERED NUMBER: SC183317)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2022

13. STOCKS

Group
2022 2021
£    £   
Stocks 171,961 234,490

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
2022 2021
£    £   
Trade debtors 1,236,593 340,697
Other debtors 6,226 9,250
Amounts due from associated companies - 204
Directors' current accounts - 43,652
Prepayments and accrued income 1,012,888 1,214,778
2,255,707 1,608,581

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2022 2021 2022 2021
£    £    £    £   
Bank loans and overdrafts (see note 16) 450,554 78,015 - -
Trade creditors 446,679 373,597 - -
Current corporation tax 345 25,995 57 25,706
Social security and other taxes 471,809 225,370 - -
Amounts due to associated
companies - 204 195,684 195,684
Directors' current accounts 22,108 - - -
Accruals and deferred income 431,976 504,648 - -
1,823,471 1,207,829 195,741 221,390

16. LOANS

An analysis of the maturity of loans is given below:

Group
2022 2021
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 450,554 78,015

Other loans represents an interest free loans from The Energy Savings Trust Limited to provide financial assistance with the installation of solar panels.

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

SCOTWELD GROUP SERVICES LIMITED (REGISTERED NUMBER: SC183317)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2022

Group
Non-cancellable operating leases
2022 2021
£    £   
Within one year 62,250 63,591
Between one and five years 63,482 70,100
125,732 133,691

18. SECURED DEBTS

The bank overdrafts are secured by a charge over the subsidiary's debtor book, a floating charge over the group assets and undertakings and a standard security over the property at 270 Petershill Road, Glasgow.

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2022 2021
value: £    £   
50,000 Ordinary £0.0001 5 5
5,555 A ordinary £0.0001 1 1
6 6

20. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 July 2022 and 31 July 2021:

2022 2021
£    £   
G Nixon
Balance outstanding at start of year 43,652 (248,719 )
Amounts advanced 21,724 525,574
Amounts repaid (87,484 ) (233,203 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year (22,108 ) 43,652

The amounts owed by the director are interest free and repayable on demand.

SCOTWELD GROUP SERVICES LIMITED (REGISTERED NUMBER: SC183317)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 JULY 2022

21. RELATED PARTY DISCLOSURES

The group has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The
Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party
transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

During the year, the group made sales of £577 (2021: £75,051) and made purchases of £215,467 (2021: £194,648) to companies under common directorship.

At the year end, companies under common directorship owed the group £685 (2021: £2,250).

At the year end the group owed £13,532 (2021: £Nil) to a company under common directorship.

At the year end, the group owed £22,108 (2021: £Nil) interest free to one of its directors. At the year end the group was owed £Nil (2021: 43,652) interest free from its directors.

During the year, dividends of £100,000 (2021: £105,000) were paid to key management.

During the year £37,729 (2021: £24,611) was paid to employees who are directors' close family members.

During the year a total of key management personnel compensation of £49,180 was paid (2021: £212,295).
There was no other key management personnel identified other than those mentioned above.

22. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is G Nixon.