Company registration number SC065141 (Scotland)
JOHN M. F. GROAT & SONS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
JOHN M. F. GROAT & SONS LIMITED
CONTENTS
Page
Accountants' report
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 10
JOHN M. F. GROAT & SONS LIMITED
REPORT TO THE DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY ACCOUNTS OF JOHN M. F. GROAT & SONS LIMITED
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of John M. F. Groat & Sons Limited for the year ended 31 March 2023 which comprise, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the ICAS we are subject to its ethical and other professional requirements which are detailed at https://icas.com/icas-framework-preparation-of-accounts.
This report is made solely to the board of directors of John M. F. Groat & Sons Limited, as a body, in accordance with the terms of our engagement letter dated 22 July 2008. Our work has been undertaken solely to prepare for your approval the financial statements of John M. F. Groat & Sons Limited and state those matters that we have agreed to state to the board of directors of John M. F. Groat & Sons Limited, as a body, in this report in accordance with the requirements of the ICAS as detailed at https://icas.com/icas-framework-preparation-of-accounts. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than John M. F. Groat & Sons Limited and its board of directors as a body, for our work or for this report.
It is your duty to ensure that John M. F. Groat & Sons Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of John M. F. Groat & Sons Limited. You consider that John M. F. Groat & Sons Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of John M. F. Groat & Sons Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
A.J.B. Scholes Ltd
14 November 2023
Chartered Accountants
8 Albert Street
Kirkwall
Orkney
KW15 1HP
JOHN M. F. GROAT & SONS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
168,077
189,394
Current assets
Stocks
95,568
90,865
Debtors
5
173,492
197,378
Cash at bank and in hand
46,768
35,676
315,828
323,919
Creditors: amounts falling due within one year
6
(138,211)
(118,826)
Net current assets
177,617
205,093
Total assets less current liabilities
345,694
394,487
Creditors: amounts falling due after more than one year
7
(29,098)
(41,627)
Provisions for liabilities
8
(6,058)
(11,632)
Government grants
9
(24,424)
(26,073)
Net assets
286,114
315,155
Capital and reserves
Called up share capital
10
40,000
40,000
Capital redemption reserve
4,106
4,106
Profit and loss reserves
242,008
271,049
Total equity
286,114
315,155
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
JOHN M. F. GROAT & SONS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2023
31 March 2023
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 14 November 2023 and are signed on its behalf by:
J R Groat
Director
Company registration number SC065141 (Scotland)
JOHN M. F. GROAT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
1
Accounting policies
Company information
John M. F. Groat & Sons Limited is a private company limited by shares incorporated in Scotland. The registered office is Anchorfast Buildings, Longhope, Orkney, KW16 3PG.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
These financial statements are prepared on the going concern basis.true
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT. The fair value of consideration takes into account trade and settlement discounts.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Land and buildings Freehold
2% straight line
Plant and machinery
20% reducing balance
Motor vehicles
25% reducing balance
Petrol pumps
10% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
JOHN M. F. GROAT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
JOHN M. F. GROAT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 6 -
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
1.8
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.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
JOHN M. F. GROAT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 7 -
1.11
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 tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, 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.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
The company operates a money purchase (defined contribution) pension scheme. Contributions payable to the scheme are charged to the profit and loss account in the period to which they relate. These contributions are invested separately from the company's assets.
1.14
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
JOHN M. F. GROAT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
15
19
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Petrol pumps
Total
£
£
£
£
Cost
At 1 April 2022 and 31 March 2023
145,712
468,138
52,672
666,522
Depreciation and impairment
At 1 April 2022
46,069
389,313
41,746
477,128
Depreciation charged in the year
2,642
17,581
1,094
21,317
At 31 March 2023
48,711
406,894
42,840
498,445
Carrying amount
At 31 March 2023
97,001
61,244
9,832
168,077
At 31 March 2022
99,643
78,825
10,926
189,394
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
162,366
173,877
Other debtors
11,126
23,501
173,492
197,378
JOHN M. F. GROAT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
9,788
9,547
Trade creditors
103,951
83,388
Taxation and social security
15,623
20,250
Other creditors
8,849
5,641
138,211
118,826
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
29,098
38,885
Other creditors
2,742
29,098
41,627
8
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
6,058
11,632
9
Government grants
2023
2022
£
£
Arising from government grants
24,424
26,073
The company has received grants to fund the acquisition of tangible assets; the grants are deferred and released to the profit & loss account over the useful economic life of the related assets, in line with the company's accounting policy for capital grants.
10
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
40,000
40,000
40,000
40,000
11
Directors' transactions
JOHN M. F. GROAT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
11
Directors' transactions
(Continued)
- 10 -
Interest free loans have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
J R Groat - loan
-
166
(166)
-
166
(166)
-
2023-03-312022-04-01false14 November 2023CCH SoftwareCCH Accounts Production 2023.200No description of principal activityA R GroatE I GroatE W GroatJ R GroatI P GroatSC0651412022-04-012023-03-31SC0651412023-03-31SC0651412022-03-31SC065141core:LandBuildings2023-03-31SC065141core:OtherPropertyPlantEquipment2023-03-31SC065141core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2023-03-31SC065141core:LandBuildings2022-03-31SC065141core:OtherPropertyPlantEquipment2022-03-31SC065141core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-03-31SC065141core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-31SC065141core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-31SC065141core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-31SC065141core:Non-currentFinancialInstrumentscore:AfterOneYear2022-03-31SC065141core:CurrentFinancialInstruments2023-03-31SC065141core:CurrentFinancialInstruments2022-03-31SC065141core:Non-currentFinancialInstruments2023-03-31SC065141core:Non-currentFinancialInstruments2022-03-31SC065141core:ShareCapital2023-03-31SC065141core:ShareCapital2022-03-31SC065141core:CapitalRedemptionReserve2023-03-31SC065141core:CapitalRedemptionReserve2022-03-31SC065141core:RetainedEarningsAccumulatedLosses2023-03-31SC065141core:RetainedEarningsAccumulatedLosses2022-03-31SC065141bus:Director42022-04-012023-03-31SC065141core:LandBuildingscore:OwnedOrFreeholdAssets2022-04-012023-03-31SC065141core:PlantMachinery2022-04-012023-03-31SC065141core:MotorVehicles2022-04-012023-03-31SC065141core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-04-012023-03-31SC0651412021-04-012022-03-31SC065141core:LandBuildings2022-03-31SC065141core:OtherPropertyPlantEquipment2022-03-31SC065141core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-03-31SC0651412022-03-31SC065141core:LandBuildings2022-04-012023-03-31SC065141core:OtherPropertyPlantEquipment2022-04-012023-03-31SC065141core:WithinOneYear2023-03-31SC065141core:WithinOneYear2022-03-31SC065141bus:PrivateLimitedCompanyLtd2022-04-012023-03-31SC065141bus:SmallCompaniesRegimeForAccounts2022-04-012023-03-31SC065141bus:FRS1022022-04-012023-03-31SC065141bus:AuditExemptWithAccountantsReport2022-04-012023-03-31SC065141bus:Director12022-04-012023-03-31SC065141bus:Director22022-04-012023-03-31SC065141bus:Director32022-04-012023-03-31SC065141bus:CompanySecretary12022-04-012023-03-31SC065141bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP