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REGISTERED NUMBER: SC069174 (Scotland)















HAMILTON BROS. (ENGINEERING) LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 28 FEBRUARY 2023






HAMILTON BROS. (ENGINEERING) LIMITED (REGISTERED NUMBER: SC069174)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3 to 4

Report of the Independent Auditors 5 to 8

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12 to 24


HAMILTON BROS. (ENGINEERING) LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 28 FEBRUARY 2023







DIRECTORS: Eric Hay Macleod Gardiner
James Steel
Jamie Hay Macleod Gardiner



SECRETARY: Elaine Gordon



REGISTERED OFFICE: 171 St Leonard Street
Lanark
ML11 7DZ



REGISTERED NUMBER: SC069174 (Scotland)



AUDITORS: Milne Craig
Chartered accountants
Statutory auditor
Abercorn House
79 Renfrew Road
Paisley
Renfrewshire
PA3 4DA



BANKERS: Clydesdale Bank PLC
Dunn Square
1 Causeyside Street
Paisley
Renfrewshire
PA1 1BH



SOLICITORS: Biggart Baillie & Gifford
Dalmore House
310 St Vincent Street
Glasgow
G2 5QR

HAMILTON BROS. (ENGINEERING) LIMITED (REGISTERED NUMBER: SC069174)

STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023

The directors present their strategic report for the year ended 28 February 2023.

The principal activity of the company in the year under review was that of the distribution, sale, and repair of agricultural and industrial machinery.

REVIEW OF BUSINESS
In view of the current agricultural climate the development of the business of the group during the year and its position at the end of the year are considered reasonable.

The key financial highlights are as follows:
2023 2022 2021
£ £ £
Turnover 33,736,701 25,284,802 22,063,571
Turnover growth/ (fall) 33.4% 14.6% (7.8%
Profit before tax 527,822 630,618 229,935

The net assets of the company have increased from £5,937,305 at 28 February 2022 to £6,377,997 at 28 February 2023.

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks are competitive pressure in the marketplace and pressure on margins.

The directors seek to control overhead costs in order to maintain the profitability of the company.

Demand has been high following the easing of COVID-19 restrictions, however, it is anticipated that the cost of living crisis and fluctuating fuel prices will have an effect on demand as well as profitability.

FUTURE DEVELOPMENTS
The directors aim to follow management policies which will enhance the normal activities of the company.

FINANCIAL INSTRUMENTS
The company's principal financial instruments comprise bank balances, trade creditors and loans from group undertakings. The main purpose of these instruments is to finance the company's operations.

Loans from group undertakings are interest free and will be repaid as cash flow permits.

Trade debtors are managed in respect of credit and cashflow risk by policies concerning the credit offered to customers and the monitoring of amounts outstanding.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

ENVIRONMENT
The company recognises the importance of its environmental responsibilities and has policies in place to manage its impact on the environment.

ON BEHALF OF THE BOARD:





Eric Hay Macleod Gardiner - Director


21 November 2023

HAMILTON BROS. (ENGINEERING) LIMITED (REGISTERED NUMBER: SC069174)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 28 FEBRUARY 2023

The directors present their report with the financial statements of the company for the year ended 28 February 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the distribution, sale, and repair of agricultural and industrial machinery.

DIVIDENDS
No dividends will be distributed for the year ended 28 February 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 March 2022 to the date of this report.

Eric Hay Macleod Gardiner
James Steel

Other changes in directors holding office are as follows:

Bryce Smith - resigned 31 May 2022
Jamie Hay Macleod Gardiner - appointed 26 August 2022

All of the directors are also directors of Hamilton Ross Holdings Limited, the parent company, and their share interests are disclosed in that company's accounts.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

HAMILTON BROS. (ENGINEERING) LIMITED (REGISTERED NUMBER: SC069174)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 28 FEBRUARY 2023


AUDITORS
The auditors, Milne Craig, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Eric Hay Macleod Gardiner - Director


21 November 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HAMILTON BROS. (ENGINEERING) LIMITED

Opinion
We have audited the financial statements of Hamilton Bros. (Engineering) Limited (the 'company') for the year ended 28 February 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 28 February 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the 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 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 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
HAMILTON BROS. (ENGINEERING) LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the 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, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HAMILTON BROS. (ENGINEERING) 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 a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company, and determined that the most significant are those that relate to the form and content of the financial statements such as the accounting policies and the UK Companies Act 2006.

We assessed how the Company is complying with these frameworks by observing the oversight of those charged with governance, the culture of honesty and ethical behaviours and a strong emphasis placed on fraud prevention, which may reduce opportunities for fraud to take place, and fraud deterrence, which could persuade individuals not to commit fraud because of the likelihood of detection and punishment.

We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur, by making an assessment of the key fraud risks to the Company, and the manner in which such risks may occur in practice, based on our previous knowledge of the Company, as well as an assessment of the current business environment.

Based on this understanding, we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered higher, we performed audit procedures to address each identified fraud risk, including management override of controls. These procedures included testing manual journals and were designed to provide reasonable assurance that the financial statements were free from fraud or error. We evaluated the design and operational effectiveness of controls put in place to address the risks identified, or that otherwise prevent, deter and detect fraud.

In addition, our audit procedures included enquiring of management concerning actual and potential litigation and claims, and performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. We addressed the fraud risk in relation to revenue recognition by testing completeness and cut off of income.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards.

As with any audit, there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance, and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HAMILTON BROS. (ENGINEERING) LIMITED


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.




Kirsty Mackie BAcc CA (Senior Statutory Auditor)
for and on behalf of Milne Craig
Chartered accountants
Statutory auditor
Abercorn House
79 Renfrew Road
Paisley
Renfrewshire
PA3 4DA

21 November 2023

HAMILTON BROS. (ENGINEERING) LIMITED (REGISTERED NUMBER: SC069174)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2023

28/2/23 28/2/22
Notes £    £   

TURNOVER 3 33,736,701 25,284,802

Cost of sales (28,794,680 ) (21,341,998 )
GROSS PROFIT 4,942,021 3,942,804

Distribution costs (3,063 ) (949 )
Administrative expenses (4,498,823 ) (3,458,676 )
440,135 483,179

Other operating income 252,533 208,426
OPERATING PROFIT 692,668 691,605

Interest receivable and similar income - 2,125
692,668 693,730

Interest payable and similar expenses 5 (164,846 ) (63,112 )
PROFIT BEFORE TAXATION 6 527,822 630,618

Tax on profit 7 (87,130 ) (162,293 )
PROFIT FOR THE FINANCIAL YEAR 440,692 468,325

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

440,692

468,325

HAMILTON BROS. (ENGINEERING) LIMITED (REGISTERED NUMBER: SC069174)

BALANCE SHEET
28 FEBRUARY 2023

28/2/23 28/2/22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 - -
Tangible assets 9 1,873,619 2,057,732
1,873,619 2,057,732

CURRENT ASSETS
Stocks 10 14,840,337 9,098,868
Debtors 11 4,377,462 3,807,397
Cash in hand 2,137 2,783
19,219,936 12,909,048
CREDITORS
Amounts falling due within one year 12 13,992,998 8,617,420
NET CURRENT ASSETS 5,226,938 4,291,628
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,100,557

6,349,360

CREDITORS
Amounts falling due after more than one
year

13

(449,476

)

(213,850

)

PROVISIONS FOR LIABILITIES 18 (273,084 ) (198,205 )
NET ASSETS 6,377,997 5,937,305

CAPITAL AND RESERVES
Called up share capital 19 250,000 250,000
Share premium 20 187,528 187,528
Other reserves 20 452,911 452,911
Capital redemption reserve 20 113,000 113,000
Retained earnings 20 5,374,558 4,933,866
SHAREHOLDERS' FUNDS 6,377,997 5,937,305

The financial statements were approved by the Board of Directors and authorised for issue on 21 November 2023 and were signed on its behalf by:





Eric Hay Macleod Gardiner - Director


HAMILTON BROS. (ENGINEERING) LIMITED (REGISTERED NUMBER: SC069174)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023

Called up
share Retained Share
capital earnings premium
£    £    £   

Balance at 1 March 2021 250,000 4,465,541 187,528

Changes in equity
Total comprehensive income - 468,325 -
Balance at 28 February 2022 250,000 4,933,866 187,528

Changes in equity
Total comprehensive income - 440,692 -
Balance at 28 February 2023 250,000 5,374,558 187,528
Capital
Other redemption Total
reserves reserve equity
£    £    £   

Balance at 1 March 2021 452,911 113,000 5,468,980

Changes in equity
Total comprehensive income - - 468,325
Balance at 28 February 2022 452,911 113,000 5,937,305

Changes in equity
Total comprehensive income - - 440,692
Balance at 28 February 2023 452,911 113,000 6,377,997

HAMILTON BROS. (ENGINEERING) LIMITED (REGISTERED NUMBER: SC069174)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

1. STATUTORY INFORMATION

Hamilton Bros. (Engineering) Limited is a private company, limited by shares, registered in Scotland. The Company’s registered number is SC069174 and registered office address is 171 St Leonard Street, Lanark, ML11 7DZ.

The nature of the Company's operations and its principal activities are the distribution, sale, and repair of agricultural and industrial machinery.

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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

Going Concern
After reviewing the group's forecasts and projections, the directors have reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company continues to adopt the going concern basis in preparing its financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Critical accounting judgements & key sources of estimation uncertainty
In preparing these financial statements, the directors have made the following judgements:

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Assets are considered for indications of impairment. If required an impairment review will be carried out and a decision made on possible impairment. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Bad debts are provided for where objective evidence of the need for a provision exists

Inventories are assessed for evidence of obsolescence and a provision is made against any inventory unlikely to be sold, or where stock is sold post year end at a loss.

HAMILTON BROS. (ENGINEERING) LIMITED (REGISTERED NUMBER: SC069174)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

2. ACCOUNTING POLICIES - continued

Turnover
Revenue 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. Consideration is given to the point at which the Company is entitled to receive the income, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Revenue from the provision of services is recognised in the period in which the services are provided 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;
- the costs incurred can be measured reliably.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2000, is being amortised evenly over its estimated useful life of five years.

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.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - 3% on cost
Plant and machinery - 33% on cost and 12.5% on cost
Fixtures and fittings - 10% on cost
Motor vehicles - at varying rates on cost

Properties previously held at revalued amounts, have been deemed to be included at historical cost on transition to Financial Reporting Standard 102 in accordance with those regulations.

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

HAMILTON BROS. (ENGINEERING) LIMITED (REGISTERED NUMBER: SC069174)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

2. ACCOUNTING POLICIES - continued

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

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

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transactions 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.

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 company 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 company after deducting all of its liabilities.

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


HAMILTON BROS. (ENGINEERING) LIMITED (REGISTERED NUMBER: SC069174)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

2. ACCOUNTING POLICIES - continued
Taxation
Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated.

Deferred tax assets are only 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.

If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed.

Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

With the exception of changes arising on the initial recognition of a business combination, the tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the tax expense (income).

Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors.

Deferred tax assets and deferred tax liabilities are offset only if the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously.

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

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

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

HAMILTON BROS. (ENGINEERING) LIMITED (REGISTERED NUMBER: SC069174)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

2. ACCOUNTING POLICIES - continued

Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

Non-financial assets
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Financial assets
For financial assets carried at amortised cost, the amount of impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal.
An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

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

28/2/23 28/2/22
£    £   
Sale of Wholegoods 24,828,026 18,479,679
Parts Sales 5,639,274 4,374,706
Rendering of services 2,444,341 1,666,988
Sale of Animal Health 825,060 763,429
33,736,701 25,284,802

An analysis of turnover by geographical market is given below:

28/2/23 28/2/22
£    £   
United Kingdom 33,736,701 25,284,802
33,736,701 25,284,802

HAMILTON BROS. (ENGINEERING) LIMITED (REGISTERED NUMBER: SC069174)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

4. EMPLOYEES AND DIRECTORS
28/2/23 28/2/22
£    £   
Wages and salaries 2,194,475 1,716,827
Social security costs 359,397 246,352
Other pension costs 115,384 132,558
2,669,256 2,095,737

The average number of employees during the year was as follows:
28/2/23 28/2/22

Office and management 61 51
Mechanics, counter staff and forecourt 53 36
114 87

28/2/23 28/2/22
£    £   
Directors' remuneration 306,483 151,000
Directors' pension contributions to money purchase schemes 37,985 35,600

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

Money purchase schemes 1 1

Information regarding the highest paid director for the year ended 28 February 2023 is as follows:
28/2/23
£   
Emoluments etc 160,000
Pension contributions to money purchase schemes 35,608

5. INTEREST PAYABLE AND SIMILAR EXPENSES
28/2/23 28/2/22
£    £   
Stock line interest 162,611 48,580
Bank loan interest 180 3,302
Hire purchase interest 2,055 11,230
164,846 63,112

6. PROFIT BEFORE TAXATION

The profit is stated after charging/(crediting):

28/2/23 28/2/22
£    £   
Depreciation - owned assets 125,901 88,505
Depreciation - assets on hire purchase contracts 169,523 173,849
Profit on disposal of fixed assets (32,806 ) (20,999 )
Auditors' remuneration 18,950 13,800

HAMILTON BROS. (ENGINEERING) LIMITED (REGISTERED NUMBER: SC069174)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
28/2/23 28/2/22
£    £   
Current tax:
UK corporation tax 27,409 73,476
Adjustment in respect of
previous periods (15,158 ) (2,316 )
Total current tax 12,251 71,160

Deferred tax 74,879 91,133
Tax on profit 87,130 162,293

UK corporation tax has been charged at 19% (2022 - 19%).

Reconciliation of total tax 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:

28/2/23 28/2/22
£    £   
Profit before tax 527,822 630,618
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

100,286

119,817

Effects of:
Expenses not deductible for tax purposes (3,466 ) (2,101 )
Adjustments to tax charge in respect of previous periods (15,158 ) (2,316 )
Deferred tax rate changes 65,540 48,226
Movement in unprovided deferred tax 1,349 (1,333 )
Group relief claimed (1,020 ) -
Prior year adjustment - deferred tax (60,401 ) -
Total tax charge 87,130 162,293

8. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 March 2022
and 28 February 2023 62,114
AMORTISATION
At 1 March 2022
and 28 February 2023 62,114
NET BOOK VALUE
At 28 February 2023 -
At 28 February 2022 -

HAMILTON BROS. (ENGINEERING) LIMITED (REGISTERED NUMBER: SC069174)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

9. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 March 2022 1,810,585 728,439 209,562 1,476,327 4,224,913
Additions - - - 569,641 569,641
Disposals - - - (235,354 ) (235,354 )
Reclassification/transfer (558,205 ) 96,439 5,471 47,135 (409,160 )
At 28 February 2023 1,252,380 824,878 215,033 1,857,749 4,150,040
DEPRECIATION
At 1 March 2022 461,035 596,465 174,182 935,499 2,167,181
Charge for year 58,766 40,513 6,526 189,619 295,424
Eliminated on disposal - - - (165,794 ) (165,794 )
Reclassification/transfer (94,062 ) 72,121 1,551 - (20,390 )
At 28 February 2023 425,739 709,099 182,259 959,324 2,276,421
NET BOOK VALUE
At 28 February 2023 826,641 115,779 32,774 898,425 1,873,619
At 28 February 2022 1,349,550 131,974 35,380 540,828 2,057,732

The net book value of tangible fixed assets includes £ 714,595 (2022 - £ 346,681 ) in respect of assets held under hire purchase contracts.

10. STOCKS
28/2/23 28/2/22
£    £   
Parts stock 1,920,832 1,411,753
Unit stock 12,919,505 7,687,115
14,840,337 9,098,868

At the balance sheet date unit stock includes stock to the value of £7,325,940 (2022 - £3,417,929) which were held under hire purchase contracts and finance loans. All amounts become repayable on sale of the related stock items.

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
28/2/23 28/2/22
£    £   
Trade debtors 3,243,862 2,606,694
Amounts owed by group undertakings 754,861 833,602
Other debtors 258,767 216,819
Directors' current accounts 34,930 28,270
VAT - 44,123
Prepayments 85,042 77,889
4,377,462 3,807,397

HAMILTON BROS. (ENGINEERING) LIMITED (REGISTERED NUMBER: SC069174)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
28/2/23 28/2/22
£    £   
Bank loans and overdrafts (see note 14) 722,548 965,298
Other loans (see note 14) 7,325,940 3,168,624
Hire purchase contracts (see note 15) 168,330 148,295
Trade creditors 2,392,255 2,574,515
Amounts owed to group undertakings 1,368,078 407,459
Corporation tax 27,437 73,507
Social security and other taxes 83,962 69,305
VAT 136,002 -
Accrued expenses 1,768,446 1,210,417
13,992,998 8,617,420

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
28/2/23 28/2/22
£    £   
Hire purchase contracts (see note 15) 449,476 213,850

14. LOANS

An analysis of the maturity of loans is given below:

28/2/23 28/2/22
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 722,548 965,298
Other loans 7,325,940 3,168,624
8,048,488 4,133,922

HAMILTON BROS. (ENGINEERING) LIMITED (REGISTERED NUMBER: SC069174)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
28/2/23 28/2/22
£    £   
Gross obligations repayable:
Within one year 196,646 159,785
Between one and five years 524,736 226,948
721,382 386,733

Finance charges repayable:
Within one year 28,316 11,490
Between one and five years 75,260 13,098
103,576 24,588

Net obligations repayable:
Within one year 168,330 148,295
Between one and five years 449,476 213,850
617,806 362,145

Non-cancellable operating leases
28/2/23 28/2/22
£    £   
Within one year - 4,705

16. SECURED DEBTS

The following secured debts are included within creditors:

28/2/23 28/2/22
£    £   
Bank overdrafts 722,548 965,298
Hire purchase contracts 617,806 362,145
Other Loans 6,885,795 3,168,624
8,226,149 4,496,067

Hire purchase creditors and other loans are secured over the assets to which they relate.

The bank overdraft facility and bank loan are secured by a supported guarantee held by Daniel Ross (Engineers) Limited, Hamilton Bros. (Engineering) Limited, Reekie Ltd and Hamilton Ross Holdings Limited, a floating charge over company assets and a legal first charge over property specified freehold property.

HAMILTON BROS. (ENGINEERING) LIMITED (REGISTERED NUMBER: SC069174)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

17. FINANCIAL INSTRUMENTS

The carrying amount for each category of financial instrument is as follows:

2023 2022
£ £
Financial assets
Financial assets that are debt instruments measured at amortised cost 4,292,420 3,685,385
Cash and cash equivalents 2,137 2,783
4,294,557 3,688,168
Financial liabilities
Financial liabilities measured at amortised cost 12,426,627 7,478,041


18. PROVISIONS FOR LIABILITIES
28/2/23 28/2/22
£    £   
Deferred tax 273,084 198,205

Deferred
tax
£   
Balance at 1 March 2022 198,205
Originating and reversal of
timing differences 74,879
Balance at 28 February 2023 273,084

20232022
££

Accelerated capital allowances274,668198,269
Other timing differences(1,604)(64)
273,084198,205

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 28/2/23 28/2/22
value: £    £   
250,000 Ordinary £1 250,000 250,000

HAMILTON BROS. (ENGINEERING) LIMITED (REGISTERED NUMBER: SC069174)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

20. RESERVES
Capital
Retained Share Other redemption
earnings premium reserves reserve Totals
£    £    £    £    £   

At 1 March 2022 4,933,866 187,528 452,911 113,000 5,687,305
Profit for the year 440,692 440,692
At 28 February 2023 5,374,558 187,528 452,911 113,000 6,127,997

Retained earnings
Includes all current and prior year retained profits and losses less dividends.

Share premium
Includes any premiums received on issue of share capital.

Other reserves
Where tangible fixed assets are revalued or reclassified as investment property, the cumulative increase in the fair value of the property at the date of reclassification in excess of any previous impairment losses is included in the other reserve.

Capital redemption reserve
Includes amounts arising from the redemption of shares from capital.

21. PENSION COMMITMENTS

The company operates a Group Personal Pension Scheme to which employer contributions are set at 5%, for qualifying employees. The overall contribution paid by the employer is therefore known and is a fixed percentage of the total salary roll at each given year.

The charge to the profit and loss account for the year ended 28 February 2023 in respect of the scheme was £79,776 (2022 - £72,233). There were no contributions payable to the fund at the year end (2022 - £nil).

22. ULTIMATE PARENT COMPANY

The ultimate parent undertaking is Daniel Ross (Channel Islands) Limited, a company registered in Jersey. The company's immediate parent undertaking is Hamilton Ross Holdings Limited, a company registered in Scotland.

23. CONTINGENT LIABILITIES

Bank Guarantees

Cross bank guarantees exist between all group companies. The gross bank borrowing at 28 February 2023 amounted to £444,571 (2022 - £299,332).

Contract Hire Agreements

Under the terms of the contract hire agreements the company, has an obligation to purchase equipment at the cessation of the agreement, at a pre agreed price, if the customer wishes to sell back.

In the opinion of the directors the guaranteed buy back values will not be greater than the market values and therefore there should be no net liability to the company arising from this obligation.

HAMILTON BROS. (ENGINEERING) LIMITED (REGISTERED NUMBER: SC069174)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

24. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

During the year the directors benefited from an interest free loan from the company. The balance due to the company at 28 February 2023 was £34,930 (2022 - £28,270), this will be repaid in full within 9 month of the year end.

25. RELATED PARTY DISCLOSURES

The company 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.

All directors and certain senior employees who have authority and responsibility for planning, directing and controlling the activities of the company are considered to be key management personnel. Total remuneration in respect of these individuals is £379,690 (2022 - £206,191).

26. ULTIMATE CONTROLLING PARTY

The share capital of the company's ultimate parent company, Daniel Ross (Channel Islands) Limited, is held in trust and no individual is considered by the directors to be the ultimate controlling party.