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 |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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: |
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 |
Other changes in directors holding office are as follows: |
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: |
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. |
for and on behalf of |
6th Floor |
Gordon Chambers |
90 Mitchell Street |
Glasgow |
G1 3NQ |
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 |
( |
) |
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 |
Investments | 12 |
CURRENT ASSETS |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium |
Retained earnings |
SHAREHOLDERS' FUNDS |
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 |
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 |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 July 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 July 2022 |
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 |
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 |
DEPRECIATION |
At 1 August 2021 |
Charge for year |
At 31 July 2022 |
NET BOOK VALUE |
At 31 July 2022 |
At 31 July 2021 |
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 |
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 |
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: | £ | £ |
Ordinary | £0.0001 | 5 | 5 |
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. |